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Fire and rehireZero hoursEmployment lawLatest NewsPolitical elections

Labour launches ‘pro-business, pro-worker’ manifesto

by Rob Moss 13 Jun 2024
by Rob Moss 13 Jun 2024 Sir Keir Starmer at the Labour Party manifesto launch in Manchester today. Photo: Jon Super/AP/Alamy
Sir Keir Starmer at the Labour Party manifesto launch in Manchester today. Photo: Jon Super/AP/Alamy

The Labour Party has launched its general election manifesto, confirming numerous changes to workers’ rights if it forms a government on 5 July.

At a launch event in Manchester, Sir Keir Starmer pledged no increases to income tax, national insurance or VAT. “That is a manifesto commitment,” he said, saying Labour’s blueprint was “much more than a list of policies” but actually a “plan for change”.

The manifesto contains no new pledges that have not already been announced. “We are pro-business and pro-worker”, said Starmer, “the party of wealth creation”. It describes the UK’s employment laws as “outdated” and “not fit for the modern economy”.

Labour would implement its plan to Make Work Pay: Delivering a New Deal for Working People, which it published last month.

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The party, currently 21 points ahead in the polls, would “stop the chaos” and “turn the page to create a partnership between business and trade unions”, introducing legislation within 100 days of coming to power.

The Labour manifesto says it will consult fully with businesses, workers, and civil society on how to put our plans into practice before legislation is passed.

This includes banning “exploitative” zero-hours contracts; ending fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.

“We will strengthen the collective voice of workers, including through their trade unions, and create a single enforcement body to ensure employment rights are upheld,” it says. “These changes will improve the lives of working people across the entire UK.”

Mike Brewer, interim chief executive at the Resolution Foundation think tank, said: “Labour’s manifesto proposes the biggest shake-up of the workplace in a generation. The aim of boosting the quality of work across Britain is laudable, as is a better deal for under-paid and under-valued care workers.

“But the sheer scale of these reforms carries risks that demand careful implementation. While Labour may want to start consulting over these reforms in their first 100 days in office, they’ll need to take their time to get their details and delivery right.”

Labour would also make sure the minimum wage is a “genuine” living wage, changing the remit of the Low Pay Commission so it accounts for the cost of living.

Labour would also remove “discriminatory” age bands, so all adults are entitled to the same minimum wage.

This could see 18 to 20-year-olds currently on a minimum wage of £8.60 per hour, join their older colleagues on the national living wage of £11.44, a 33% increase, although a new government could phase in the increase over several years.

Labour would reform employment support so it “drives growth and opportunity”, underpinned by rights and responsibilities – “people who can work, should work” – with consequences for those who do not fulfil their obligations.

Kate Shoesmith, deputy chief executive of the Recruitment and Employment Confederation, said: “While there are signs in Labour’s manifesto that they increasingly understand how flexibility in the labour market is both pro-business and pro-worker, we need to see much greater levels of clarification and a real partnership approach with business from whoever forms the next government.

“Tackling economic inactivity by investing in supporting people into work is important. We welcome more opportunities for young people to train flexibly and hope a flexible skills levy provides the training funding that can also be accessed by temporary workers.”

Louise Haycock, partner at the global immigration law firm Fragomen, said: “The Labour Party manifesto is light on detail in relation to immigration. The party has pledged to an overall commitment to reduce numbers and to link training to usage of visas with an obligation to upskill workers, yet it is unclear what would be put in place to achieve this.

“Joined-up thinking across the Migration Advisory Committee, skills bodies and government departments is commendable but the ‘how’ is very much missing.

“The ideas and ambitions all appear long term. What is missing is the changes needed to address problems that require immediate action. Ambitions to train the UK population cannot be the answer to today’s skill shortages and the growth in the economy that is required now.”

Plaid Cymru manifesto

Earlier today Plaid Cymru launched its manifesto, demanding a fair funding system for Wales. Similar to the Greens, the Party of Wales said they would investigate higher national insurance contributions for higher earners and a wealth tax.

Plaid would reintroduce the cap on bankers’ bonuses, which was scrapped by the government in 2023. It would map out skills needs by sector, implement an apprenticeship living wage and reduce the financial burden on students such as free travel and free meals.

The party also wants to devolve employment law to Wales, reversing “anti-strike” legislation, abolish compulsory zero-hours contracts, establish a right to disconnect, and reform shared parental leave.

Speaking at the manifesto event on Thursday, Plaid’s leader Rhun ap Iorwerth said the Barnett formula, which governs funding from the UK government, should be abolished and replaced with a system based on the country’s needs.

“It’s not a begging bowl, it’s just what’s right,” he said, “enabling investment in public services and the economy.”

He added: “The Tories are finished, but we can influence the change ahead of us. Keeping the Labour government in check, not giving them a free pass to take Welsh votes but then cast Wales’s interests aside.”

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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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