Lord Mandelson has added his voice to concerns about Labour’s plans to bolster union power and workers’ rights.
The New Labour Architect warned that proposals must not be ‘rushed’ and there is a need to reassure investors about red tape.
Keir Starmer has vowed to put forward labour market reforms within the first 100 days of winning power.
The policy platform, being fronted by Angela Rayner, would give all workers employment rights from the first day in a job. There would also be a crackdown on so-called ‘zero hours’ contracts and scrap Tory moves to restrict unions from going on strike.
Labour Party chair Anneliese Dodds insisted in interviews this morning that the ‘new deal’ will ‘put more money in workers’ pockets’.
Lord Mandelson warned that labour market proposals must not be ‘rushed’ and there is a need to reassure investors about red tape
Keir Starmer (pictured with Angela Rayner) has vowed to put forward labour market reforms within the first 100 days of winning power
However, business groups are nervous about the potential impact, with Conservatives claiming it would hamper investment and mean huge public sector pay settlements.
Writing in the Sunday Times, Lord Mandelson cautioned that ‘businesses and investors will have eyes on the total UK business environment, including regulation’.
‘This includes labour market and trade union law,’ he wrote.
‘There is a clear case for reform but the case needs to be tested, priorities established and the complexities addressed.
‘This must not be rushed but it must be done in consultation with business. Reeves said last week that in moving the legal pendulum back on trade union laws to the centre, it will not go further than the settlement bequeathed by New Labour.
‘Employers need to be satisfied before the election that this will be honoured in both the spirit and detail of the proposed law.’
Business minister Kevin Hollinrake posted on the X social media site that Labour’s plans would mean ‘a lot fewer businesses’.
‘Totally get the view some will take that when times have been tough it’s time for a change, but it’s worth reflecting on why it is that the Labour Party has always left office with UK unemployment higher than when they entered it,’ he wrote.
‘Day 1 employment rights would mean that businesses would have to use a 4 stage process (then potentially an employment tribunal) if someone didn’t work out or even turn up for work; an end to Zero Hours Contracts; enhanced rights for Trades Unions inc collective bargaining would lead to strikes and huge public sector wage settlements; their previously stated policy (not yet reconfirmed) of a £15 National Living Wage would devastate businesses and jobs in sectors such as hospitality, retail and social care. Just saying.’
Labour Party chair Anneliese Dodds insisted in interviews this morning that the ‘new deal’ will ‘put more money in workers’ pockets’
Speaking on Sky News’ Sunday Morning with Trevor Phillips, Ms Dodds said: ‘It’s really important that we ensure that work pays in our country, and it doesn’t right now…
‘That’s the motivation for Labour’s new deal for working people, and the measures in that new deal would actually increase productivity.
‘They would put more money in workers pockets and they’d also boost the conditions for innovation as well.
‘Of course, those proposals will be delivered in a way that’s in the interests of business as well as in the interests of workers.
‘But that’s fundamental to the Labour Party. We’re a pro-worker and pro-business party, and that really is at the heart of our New Deal for working people.’
Unite general secretary Sharon Graham said Lord Mandelson had an ‘outdated desire to see Labour reduced to a 1990s neoliberal tribute act’.
‘Throughout the cost-of-living crisis, where profiteers have been allowed to run amok, only trade union bargaining power has defended the living standards of working people,’ she said.