Can Labour satisfy business as well as the trade unions?

For a movement literally founded to promote the interests of working people, the Labour Party has found itself troubled by the question of workers’ rights and the power of trade unions to a remarkable degree.

- SEAN O'GRADY

Today, as they will doubtless continue to do over the coming months in the run-up to the general election, the party’s leaders in parliament are negotiating with the Labour Trade Union Organisation (LTUO) in an effort to decide what Labour’s next manifesto should say about employment and industrial relations law.

The LTUO is the umbrella body that represents the 11 trade unions that are affiliated with the party and fund much of its activities. It is led by Mick Whelan, the general secretary of the train drivers’ union, Aslef.

What’s the problem?

Put at its crudest, the trades unions (naturally) and the left of the party want to see workers’ rights maximised and the bargaining power of the unions strengthened as far as possible. On the right of the party, and well represented at the top of the shadow cabinet, is an anxiety not to alienate business leaders – and, moreover, to ensure that any reforms do not damage investment, productivity and competitiveness.

Two successive sets of proposals about Labour’s “new deal” for workers have been produced since Keir Starmer became leader, with active input from the unions and the party’s national policy forum (less so the Labour conference).

Within the shadow cabinet, the unions are looking for the backing of Angela Rayner, who, as well as being deputy leader, is a former careworker and a trade unionist – and, as “strategic lead” on the new deal for working people, was responsible for the first set of proposals. On the other side are the shadow chancellor and former Bank of England economist Rachel Reeves.