Businesses and unions meet Deputy PM Angela Rayner to start ‘new era of partnership’

Business leadership organisations and trade unions have met with senior government ministers, including Deputy Prime Minister Angela Rayner, to begin what she describes as “a new era of partnership” to get more people back into work and improve rights and conditions in the workplace.

In the first-of-its-kind meeting yesterday (14th August 2024) all parties agreed to “wipe the slate clean and begin a new relationship of respect and collaboration” to help deliver the Labour’s plan for economic growth.

Angela Rayner

They discussed views on the Employment Rights Bill and wider Plan to Make Work Pay, with Rayner and Business Secretary Jonathan Reynolds “carefully listening” to attendees.

Since the election in July Labour has overhauled the remit of the Low Pay Commission to deliver early progress on the Make Work Pay plan.

In the King’s Speech is the Employment Rights Bill – which will play a key role in delivering the Plan to Make Work Pay – which they said would be introduced within 100 days of entering Government.

It includes plans to ban exploitative zero hours contracts; end fire and rehire, introduce “basic rights” from day one, which include parental leave, sick pay, and protection from unfair dismissal; strengthen the collective voice of workers, including through trade unions, and create a Single Enforcement Body to ensure employment rights are upheld; make sure the minimum wage is a genuine living wage by changing the remit of the independent Low Pay Commission so for the first time it accounts for the cost of living; remove “discriminatory” age bands, so all adults are entitled to the same minimum wage.

Jonathan Reynolds MP

Business Secretary Jonathan Reynolds said: “For too long the valuable insights of business and trade unions have been ignored by Government, even on past decisions which have directly impacted them.

“Business and workers will always help to shape the ambitions of government including our plan to Make Work Pay, to ensure it boosts economic growth and creates better working conditions for all.” 

Trade unions around the table included GMB, TUC, shop workers union USDAW, public sector union UNISON, Unite and Prospect. While businesses were represented by the British Chambers of Commerce (BCC), Chartered Institute for Personnel and Development (CIPD), Confederation of British Industry (CBI), Federation of Small Businesses (FSB), Institute of Directors (IoD), Make UK, the Recruitment and Employment Confederation (REC).

Typical of the comments from the meeting was a comment from TUC General Secretary Paul Nowak who said: “Today’s meeting was an important chance for unions and businesses to discuss the shared gains that the government’s reforms will bring, and we look forward to continued close working as ministers implement their plans.” 

Jonathan Geldart, Director General of the Institute of Directors, described the meeting as “an important first step in ensuring that there is meaningful dialogue with business” but warned that a detailed engagement and consultation process would seek to minimise the risk of unintended consequences of workplace reforms.