Starmer Pushes Rights Plan as Labour Balances Unions, Business

Ailbhe Rea
·3-min read

(Bloomberg) -- Prime Minister Keir Starmer vowed to push through sweeping reforms to UK employee rights as his government strives to keep both trade unions and businesses on side before a major package of working reforms is introduced to Parliament next month.

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The new premier used a keynote speech at the annual conference of the Trades Union Congress — the first by a British leader in 15 years — to outline a new vision of “partnership” between companies and the unions, saying he saw a “mood of change in the business world.”

“That is an opportunity to be grasped,” Starmer said. “Trust me: business leaders are not knocking on my door saying they want to rip up employee rights. They don’t tell me the problems they face will be solved by coming for trade unions. They want fair taxes, high skills and the long-term stability to invest.”

Starmer’s administration is racing to finalize the shape of its long-promised ‘New Deal for Working People’ without alienating either group. The package — first put forward by Starmer’s deputy, Angela Rayner, in 2022, has been subject to fierce wrangling by trade unions and business as the final shape of the reforms is agreed. Labour has promised to introduce the legislation in its first 100 days in power, giving it until mid-October to do so.

Measures being discussed include rights for workers from the first day of their employment, an end to so-called zero-hours contracts, the repeal of trade union legislation and a “right to switch off.” Both business and trade unions have voiced different concerns about some of the proposals as Rayner and Business Secretary Jonathan Reynolds turn the headline promises into deliverable legislation.

Meetings are being held daily to finesse the final look of the Employment Rights Bill, with debates over whether certain commitments are introduced as guidance or enshrined in law, according to people familiar with the matter, who asked not to be named discussing unfinished legislation. Bloomberg revealed last month that the government is introducing the “right to switch off,” one of its key promises, as a code of conduct for businesses rather than legislation.

Labour has already lost some union support for its plans after diluting the original worker’s rights package ahead of the general election. The trade union Unite declined to support the party’s manifesto in May, with General Secretary Sharon Graham saying the reformed package had “more holes than Swiss cheese.”

Starmer said Tuesday that his government “is committed to driving up living standards, improving productivity, and working in partnership with workers.” He confirmed that as part of the proposed bill, the government will repeal the 2016 Trade Union Act and get rid of legislation requiring minimum service during strikes.

The legislation will be introduced before parliament in early October, the people familiar with the matter said. But it will be subject to consultation with business and unions before it becomes law, meaning further changes are possible, they said.

The premier said the view that unions and businesses can only stand at odds is an outdated trope, and that pro-worker pro-business partnerships will be a driver of national renewal.

“Rules written in the ink of partnership will be more durable and long-lasting,” Starmer said. “It is time to turn the page. Business and unions, the private and public sector, united by a common cause to rebuild our public services and grow our economy in a new way. Higher growth, higher wages, higher productivity, the shared purpose of partnership.”

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