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Welcome to Union News for the 21st of May 2024. In this week’s edition: Labour Leader Faces Union Backlash Over Workers’ Rights Revisions, Historic Win for Workers: Lord Woodley’s Anti-Fire and Rehire Bill Passes Unopposed, Scottish Lecturers Strike for Fair Pay Amidst Cost-of-Living Crisis, and finally, Apprenticeship Levy Backfires, Undermining Training Schemes, Report Warns Government’s Apprenticeship Levy Faces Criticism for Harming Training Programs. Reporting is by Pat Harrington and music is by Tim Bragg.
Labour Leader Faces Union Backlash Over Workers’ Rights Revisions
Starmer Scrambles to Mend Ties with Unions Amid Workers’ Rights Tensions
Labour leader Sir Keir Starmer is working to reassure trade union leaders about his party’s commitment to workers’ rights following accusations of diluting key policies.
Labour’s ambitious plan, heralded as the most significant workers’ rights overhaul in decades, promises to ban zero hours contracts, ensure employment rights from day one, and end “fire and rehire” practices. Initially introduced by Deputy Leader Angela Rayner in 2021, the plan has faced scrutiny and revisions, raising concerns among union leaders.
Union leaders were alarmed by a new document, circulated last week, which they viewed as a retreat from the original commitments. Unite’s General Secretary, Sharon Graham, branded the document a “betrayal” and “unrecognizable” from the initial plan.
In a bid to address these concerns, Starmer, along with Rayner and Shadow Chancellor Rachel Reeves, met with trade union officials. Following intense discussions, the controversial draft was scrapped.
In a joint statement, Labour and union leaders reaffirmed their commitment to the “new deal for working people,” as agreed last July. They pledged to work swiftly on legislative plans to bring these commitments into action should Labour win the next election.
Despite the recent agreement, tensions remain high. Union sources suggest that Labour’s leadership might be succumbing to pressure from business interests as the election approaches.
After the meeting, Graham expressed cautious optimism, stating that Labour had recommitted to the New Deal for Working People. She emphasized the importance of workers’ voices in the ongoing discussions, noting another meeting is scheduled in three weeks to finalize details.
Labour’s plans originally included introducing an “employment rights bill” within 100 days of taking office, though this timeline is now considered ambitious. Changes to the policy last summer at the national policy forum had already sparked union discontent, seen as attempts to appease business interests.
Recent reports suggested the new draft was more lenient towards business needs, especially regarding fire and rehire practices and zero hours contracts. The Financial Times indicated the draft included language allowing businesses to restructure for viability and offered limited bans on zero hours contracts.
Labour has also faced criticism for scaling back its 2021 green energy investment plans from £28bn, highlighting ongoing internal party struggles to balance progressive policies with electoral pragmatism.
Union leaders remain vigilant, determined to ensure Labour’s more radical policies do not face further dilution. As the election campaign heats up, Starmer and his team must navigate these tensions to maintain crucial union support.
Historic Win for Workers: Lord Woodley’s Anti-Fire and Rehire Bill Passes Unopposed
House of Lords Backs Landmark Legislation to Protect Workers’ Rights
In a significant victory for workers’ rights, Lord Tony Woodley’s Employment and Trade Union Rights (Dismissal and Re-engagement) Bill passed unopposed at its third reading in the House of Lords on Friday. This pivotal legislation aims to protect employees from dismissal and re-engagement under inferior terms, mandating employers to conduct thorough consultations and disclose relevant information regarding any contract changes.
Lord Woodley, former general secretary of the Transport and General Workers Union (T&G) and joint general secretary of Unite, passionately addressed the Lords, condemning the exploitative practice of “fire and rehire.”
“Fire and rehire is a despicable tactic used by unscrupulous employers to rip off workers, cut costs, and boost profits,” Woodley stated. “I am thrilled to see this Bill progress in the House and grateful for the cross-party support it has received. This legislation marks a significant step towards eradicating this abusive practice.”
Woodley expressed gratitude to various individuals and organizations for their contributions to the Bill’s success. He acknowledged Unite for exposing the misuse of fire and rehire during the Covid-19 pandemic and Barry Gardiner, who championed a similar Private Member’s Bill in the Commons.
The Bill, crafted with the expertise of Lord Hendy and Professor Keith Ewing from the Institute of Employment Rights, also received robust backing from over 20 trade unions across the UK. Woodley emphasized the Labour Party’s commitment to combating exploitative employment practices as a key promise for the next election.
As the Bill moves to the Commons, it is expected to be championed by Labour MP Barry Gardiner, who anticipates strong opposition from the government. Gardiner, celebrating the Bill’s progress, shared on social media, “Great job Tony for taking the Stop Fire & Rehire Bill to the next stage. It’ll be an honour to pick up from where we left off in the Commons almost two years ago. The tragedy is that in the months in between, the government has done nothing. The next Labour government must and will.”
This legislative milestone brings the UK closer to eliminating the exploitative fire and rehire practice, ensuring fair treatment for workers and holding employers accountable.
Scottish Lecturers Strike for Fair Pay Amidst Cost-of-Living Crisis
Lecturers from colleges across Scotland have commenced a series of strikes today, expressing profound dissatisfaction over unresolved wage disputes. The Educational Institute of Scotland Further Education Lecturer Association (EIS-FELA) initiated the first of nine planned strike days spanning May and June, following unfruitful negotiations that have been ongoing since 2022.
In an effort to break the impasse, EIS-FELA presented a revised four-year pay proposal last Thursday. However, the response from employers fell short of the union’s expectations, leaving no choice but to proceed with the strike action this week.
A spokesperson for EIS expressed their disappointment, stating, “Despite presenting a revised pay claim to College Employers Scotland (CES), we received no guarantees on key aspects of the pay increase or other elements of the claim.”
The lecturing staff’s commitment to their students remains unwavering, as they yearn to return to their teaching duties and assist students in achieving their academic goals. Nevertheless, they stand united in their quest for a fair pay rise, which they believe is essential to mitigate the financial strain and stress inflicted by the current cost-of-living crisis.
Gavin Donoghue, the director of CES, has declared the offer of a £5,000 consolidated pay increase over three academic years, starting from September 2022, as the “full and final” proposal. He urges EIS-FELA to halt the escalation of strike actions and to conduct a formal ballot among their members regarding the offer.
and finally, Apprenticeship Levy Backfires, Undermining Training Schemes, Report Warns
Government’s Apprenticeship Levy Faces Criticism for Harming Training Programs
The government’s Apprenticeship Levy, introduced to boost trainee employment, is backfiring and undermining apprentice training schemes, a new report from the Chartered Institute of Personnel and Development (CIPD) and the Youth Futures Foundation warned today.
The report highlights that the scheme incentivizes employers to “rebadge” existing staff training as apprenticeships to claim funding, rather than genuinely investing in new trainees. A survey of over 2,000 organizations revealed these “worrying unintended consequences,” with many employers repurposing existing training programs to draw from the levy fund.
Introduced in 2017, the Apprenticeship Levy requires employers with a pay bill of £3 million or more to pay a 0.5% tax. This money goes into a fund that employers can use to finance apprenticeship programs. However, the report indicates this system is eroding traditional apprenticeship pathways.
Peter Cheese, chief executive of CIPD, emphasized the detrimental impact on young people: “The evidence in this report shows clearly that young people most need and benefit from apprenticeships, and that the erosion of this pathway has had a negative impact on social mobility for the most disadvantaged.”
Cheese called for “an apprenticeship guarantee” to reclaim apprenticeships for young people and reverse the decline in opportunities for them.
Barry Fletcher, chief executive of the Youth Futures Foundation, added, “International evidence shows apprenticeships are an important and impactful way to support young people in preparing for and accessing jobs. Yet, apprenticeship participation has fallen significantly for young people, especially those most marginalized in recent years.”
The Trade Union Congress (TUC) also called for reforms to the scheme. TUC general secretary Paul Nowak stated, “Funds raised by the apprenticeship levy are being underspent or misused. Every worker should have the chance to raise their skills, progress their career, and improve their situation. The scheme needs reform to allow more flexibility so that it benefits more workers, has greater quality control, and targets those who need it most.”
Nowak concluded, “Training pays for itself. Revitalizing our skills system should be a core part of a new UK industrial strategy. That’s how we can get the economy growing again so that we are all better off.”
As criticisms mount, it is clear that the Apprenticeship Levy, while well-intentioned, requires significant changes to effectively support the development of the UK’s workforce.
Keir Starmer picture
By Chris McAndrew – https://api20170418155059.azure-api.net/photo/X9dwBvuR.jpeg?crop=MCU_3:4&quality=80&download=trueGallery: https://beta.parliament.uk/media/X9dwBvuR, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=61331023
