Keir Starmer: Bosses do not want to curtail workers’ rights

The prime minister, who promised to “rewrite the rules of our economy” and forge a new partnership between government, business and workers, rejected criticism of his plans, which the Tories have described as “French-style trade union laws”.

The Institute of Directors (IoD) warned that company directors would be less inclined to hire new staff due to the government’s planned employee rights laws.

But Sir Keir told unions, in the first address by a Prime Minister to the TUC Congress since 2009, that there was a “mood of change” in the business world.

His speech was met with a standing ovation from parts of the audience, although chants of “Tax the rich” could also be heard in the Brighton conference hall.

Sir Keir told unionists: “Company leaders are not knocking on my door and telling me they want to curtail workers’ rights.”

“They don’t tell me that the problems they face can be solved by unionization.

“They want fair taxes, high qualifications and long-term stability in order to invest.

“And that is in line with what the unions across the country, I tell myself, want as well.

“Working people want good companies to make profits, attract investment and create good jobs.”

Measures in the government’s plans include banning “exploitative” zero-hour contracts, ending layoff and re-employment policies, and guaranteeing parental leave, sick pay and protection against dismissal for all workers from day one.

Flexible working hours will become the norm from the first day of work, while it will be illegal to dismiss a woman who has had a baby six months after she returns to work.

The Workers’ Rights Act also aims to remove restrictions on trade unions, including the Conservative government’s controversial law to ensure a minimum level of services during strikes.

Sir Keir described the Conservatives’ actions as “cheap and vindictive attacks on this movement”.

According to an IoD survey of 715 business leaders, 57 percent said the government’s plans would make them less willing to hire staff.

Alexandra Hall-Chen, senior policy adviser for employment at the IoD, said: “Business leaders are concerned about the impact of the proposed new reforms on staff costs.”

Shadow business secretary Kevin Hollinrake said there was “vocal opposition from business leaders to his (Starmer’s) plans to strengthen unions and impose unworkable proposals on employers that will cost jobs”.

Sir Keir countered his promises to usher in a new package of workers’ rights and a new era of more positive industrial relations with a warning of future pay restraint for public sector workers.

His appearance came at a time when he was under fire from Labour MPs, trade unions and activists over his decision to make winter heating allowances means-tested; a vote in the House of Commons took place just hours after his speech to the TUC.

Sir Keir said there were more “tough decisions” ahead and “pay levels would inevitably be affected”.

He faced demands from unions that he commit to a full restoration of wages and to make up for years of below-inflation wage agreements through a series of generous pay increases.

But Sir Keir told the TUC: “This government will not under any circumstances compromise its mandate for economic stability.”