Scrap £10m union reform plans, says director of CBI

CBI director-general Digby Jones has called on the Government to scrap its
plans for a £10m fund to modernise trade unions.

Speaking at the Institute of Directors Annual Convention, Jones branded the
unions as "irrelevant" as they only served the 19 per cent of private
sector employees who are members.

Last week the House of Lords held the second reading of the Government’s employment
relations bill, which would see the establishment of the union fund next year.

Jones said the CBI was "fundamentally opposed" to cash going to
"an individual lobby group".

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"What guarantee do we have the money will be for modernisation and not
for recruitment?"Jones asked. "I know of many hospices which could
sorely use that money."

The Government has strongly denied that increased funding to trade unions
will be used for recruitment drives and said it was necessary for unions to
keep up with the pace of change in the workplace.