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Fire and rehireZero hoursEmployment lawLatest NewsPolitical elections

Labour and unions reach agreement on employment plans

by Rob Moss 15 May 2024
by Rob Moss 15 May 2024 Labour leader Sir Keir Starmer
Image: Martin Suker / Shutterstock.com
Labour leader Sir Keir Starmer
Image: Martin Suker / Shutterstock.com

Trades unions and Labour reached agreement at a “red line” summit yesterday on the party’s workers’ rights proposals after shadow ministers were accused of watering down plans after lobbying from business groups.

At a meeting with general secretaries yesterday (14 May), Sir Keir Starmer said he was not watering down employment reforms agreed in 2023, which include bans on zero-hours contracts and fire-and-rehire practices, as his party promised to consult unions on election campaign wording.

In a joint statement, Labour and the affiliated unions said: “Together we have reiterated Labour’s full commitment to the New Deal for Working People as agreed in July. We will continue to work together at pace on how a Labour government would implement it in legislation.”

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Sharon Graham, general secretary of Unite and the most vocal critic of reports of watering down, said: “We’ve been listened to and the workers’ voice heard. It’s going to be a very good thing for workers. So we’re really, really pleased that we’ve got to that position today.”

She told reporters after the meeting: “My main job is to defend my members. As much as I want Labour to get into government – and I do, I think it will make a real difference to workers – I’ve got to keep their feet to the fire. We’re not a cult, I’m here to make sure workers get their fair share.”

She described last summer’s national policy forum deal as a “touchstone” and agreed to set out how to implement it in “a new document”. Another meeting is scheduled for early next month.

According to media reports in recent weeks, the new position is that Labour will not place an outright ban on all zero-hour contracts. Instead, the policy will recognise that some people appreciate the flexibility of such contracts. However, a duty will be placed on employers to provide contracts based on the hours people have worked for the preceding 12 weeks.

The timing of new employment legislation has also been under scrutiny. Instead of a commitment to sign reforms into law within 100 days of a new Labour government reaching power, the party is expected to promise draft legislation within 100 days, followed by public consultation.

A leaked draft last week of Labour’s employment plans differed from the original 2021 green paper in numerous ways. For example, fair pay agreements in all sectors now applied initially to social care only; and a right to “switch off” had become a right for staff to have discussions with employers about being contacted out of hours.

Dave Ward, general secretary of the Communication Workers Union, described yesterday’s meeting as “positive”.

He said: “Keir’s made it very clear how transformational [the New Deal] will be for working people. We’ve got the position we all want, Labour, working people, this will be the biggest difference in rights the country has ever seen in decades, it will be a flagship policy for the general election.

“We need to shift the balance of forces in the world of work back towards working people. That’s the only way you’re going to grow the economy.”

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Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

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