By Sanjay Suri
LONDON, Sep 19 2003 (IPS)

Growing dissatisfaction among the unions is making the future look increasingly uncertain for Britain’s ruling Labour party.

Union difficulties have been plaguing the government in recent days following the annual meeting of the Trades Union Congress (TUC), an umbrella group comprising 69 unions with a membership of about seven million.

Prime Minister Tony Blair was jolted further Thursday by the loss of what was considered a safe Labour constituency in Brent East in London. Labour lost the seat to the Liberal Democrats.

The loss has underlined the importance of unions to Labour. Without strong union support, Blair’s safe majority could be threatened in general elections due 2005.

"There are a lot of frustrations and tensions around the union world," TUC general secretary Brendan Barber told media representatives.

The first term for Blair after 1997 had brought action on union demands such as a minimum wage and signing up to the social chapter of the European Union, he said. But the second term has lacked a "coherent narrative."

To win back greater support, Tony Blair needs a new push in the economy that provides a clear role for trade unions. "He has too often hesitated to do that," he said. "There is talk usually of the entrepreneurial spirit, but we need a broader vision."

The unions are placing their money – or not placing it – where their words are.

The unions have threatened to hold back about 60 million dollars they are due to pay the Labour government to help finance the next elections.

That funding is critical for the Labour campaign. The unions want to dole the money to the party in bits, and make it conditional on the Labour government acting on their demands.

The unions are threatening to go on the offensive over pubic sector reforms. "We want reform, but by agreement, real agreement," Barber told media representatives.

"There are lots of areas where we have seen disasters as a result of privatisation. There will not be too many champions of the privatisation of the railway service," he said.

Barber said the unions particularly want action over the present "two-tier labour market where workers transferred to new jobs have protection, but the earlier recruits are paid less."

The unions also want an important new role in skills and training, he said, and in setting family policy with maternity and paternity agreements.

"People feel that the government is not fully reflecting the values we want a Labour government to take forward," he said. "There is far too much inequality in too many parts of the labour market."

But, he added, "we do not want this over-exaggerated, because there is also important progress in some areas. All is not doom and gloom."

Barber said: "We want to pull the government towards us, rather than erect barriers between us. It will not be helpful to present our demands in a way that requires them to do several U-turns."

The government will better achieve its objectives if it can take with it the people delivering its services, he said. Winning this support is beneficial for industrial relations but also to government.

Barber said the need to work together was urgent, given the dangers to the British economy. "We lost 120,000 manufacturing jobs last year," he said. "There is a big flight from manufacturing, and we must do more to support manufacturing against the competition we are facing."

Unions can play a key role in supporting manufacturing, and in delivering public service, he said. "The vast majority of people rely on public service, and they want real improvement delivered. For too long, public service has been treated as second class employment. We have downgraded it, as a result of years of neglect."

The unions want several new measures introduced so that they can offer support back to the government. They are attacking the so-called eight-week rule under which employers can dismiss workers if a strike action extends beyond eight weeks.

Sir Bill Morris, leader of the Transport and General Workers Union (TGWU), says ministers are refusing to support workers regain employment even after they have won their cases.

The government must also change the insolvency laws, Sir Bill says. At present, businessmen can sack workers, close down their companies, cash assets and then resume trading without paying the sacked workers a single penny.

"If that’s not the justification needed for fundamental reform then frankly what is?" Sir Bill asked.

The union demands are growing stronger as membership stabilises. The TUC membership has levelled off around seven million, down from a peak of 12 million in the late seventies.

But the membership is not declining further, "and there is real opportunity now for unions to begin to grow again," Barber said.

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