Labour’s Leadership appears to have rowed back on its commitment to expand fair pay agreements across the economy, now restricting them solely to the care sector.

Commitments to a single tier of worker, guaranteeing equal rights for all workers, have also been watered down, with union attempts to abolish a different tier for under 18s rejected, and a new emphasis on different probationary rights.

According to Labour List, Labour’s green paper last October on a “new deal for working people” said the Party would bring together worker and employer representatives in a sector to negotiate fair pay agreements. These will set “binding” pay, pension, holiday, health and safety, training and other rules for workers, going above and beyond existing legal rights.

It looks now as if many sectors will actually be excluded and the proposal will be limited to “adult social care sector as a first step”. 

Unions were reported to be furious with the leadership at Labour’s National Policy Forum last month over the single tier row-back, among other issues. Unite refused to endorse the final document, while GMB were also reported to have boycotted a dinner with Keir Starmer.

Questions remain over Starmer’s previous commitment to increased sick pay, proclaimed by Keir Starmer at the 2021 TUC Congress, the remit of the Low Pay Commission, and the detail of its commitment to ban zero hours contracts.

The Financial Times, which broke the story claimed that, since the leadership’s charm offensive began toward the corporate sector, many business groups felt the Party’s engagement seemed “genuine” and “sincere”, and businesses are set to flock to Labour’s annual Conference.

Reaction inside the Party was less enthusiastic. Labour peer Prem Sikka tweeted: “Why is Starmer-led Labour Party emulating Tory policies?” pointing out that it was reneging on pledge to establish fair pay agreements “across the economy”.

Former Labour NEC member Mark Seddon wondered; “Was this all agreed at the recent National Policy Forum and with the trade unions, or has this been sprung on them (which is the usual way)?”

Former Jeremy Corbyn policy advisor Andrew Fisher, who wrote the 2017 Labour Manifesto, commented: “You can’t ‘smash the class ceiling’ if you keep rolling over to capital.”

Former Shadow Chancellor John McDonnell MP tweeted: “Whoever thought it clever to brief FT Labour’s New Deal for workers’ rights was being watered down to please big business clearly never told @AngelaRayner. Single status, sectoral pay bargaining & rights from day one are all too important, transformative reforms for these games.”

A Momentum spokesperson said: “Under the Tories, Britain is run for its bosses, not its workers. Corporate profits are soaring while working people are underpaid and undervalued.

“That’s why it’s crucial Labour’s New Deal for Working People is implemented in full. It’s alarming to see the leadership water it down, from a single tier status for workers of all ages to the roll-out of collective fair pay agreements across the economy. The leadership should listen to our trade unions as the voice of working people, not millionaire CEOs.”

Image: https://theowp.org/major-corporations-lobby-to-weaken-forced-labour-bill/. Licence: Attribution-ShareAlike 3.0 Unported (CC BY-SA 3.0)