A new deal for workers

Abstract

Following a landslide victory in the general election, the Labour party has launched an ambitious agenda to transform the regulation of work and employment. With commitments to enhance worker rights and legislative reform, Labour's relationship with trade unions presents both opportunities and challenges. While improved dialogue between unions and government is already evident, the success of these initiatives hinges on fostering robust structures for collective bargaining and addressing enforcement weaknesses. This long-term endeavour seeks to achieve a fairer distribution of economic growth and requires sustained collaboration beyond the current parliamentary term.

Any sensible answer to that question needs to differentiate between unions that are affiliated to the Labour party and those that are not. The era when unions and the Labour party could be considered as ‘two wings’ of the labour movement are long gone. That said, some of the UK's largest unions are affiliated – Unison, Unite and the GMB being the three largest unions by far. They have routes to liaise with the party and we can expect those unions to continue to try to shape policy over the coming years.

But by far the majority of unions, including most of the unions representing professional public sector workers, are not affiliated to the party. The Trades Union Congress (TUC), as the umbrella representative body of many – but not all – unions, also has no formal affiliation to the party. Nonetheless, these unions are leading some of the longest-running disputes in sectors such as the NHS and higher education and will expect to find it easier to campaign, shape and lobby as policies develop to the point of delivery.

However, some of the wider agenda laid out in policy documents will be more challenging and will face more structural hurdles to delivery. For example, there are significant decisions to be made about how to establish a single status as ‘worker’ (rather than differentiating between employees and self-employed workers) as this navigates a complex legal terrain where tax law and labour rights may conflict. With commitments to end the use of ‘fire and rehire’ tactics by employers and reduce the use of zero-hours flexible contracts, much of the devil will be in the detail and it is possible that some may be unhappy with how these are implemented.

But this opens a potentially longer-term vision for the collective regulation of work and employment. A key concern from the legacy of the governments from 1997 to 2010 was how easily some labour market regulation reforms were undone. This will always be a weakness of a system that relies on government to lead. A far more effective, and likely efficient, approach is for the state to actively support structures that facilitate negotiation between employers and unions, looking only to the state where there are issues of direct relevance, such as legal changes or the funding for state services.

Crucially, these structures and processes have to be underpinned by effective enforcement mechanisms. A central criticism of the UK's approach to workers’ rights is that enforcement mechanisms are extremely weak, fragmented and over-complex, as well as being under-resourced. The new government does demonstrate a commitment to addressing at least some of these concerns. Proposals for a single enforcement body are generally welcomed by unions, but there is a wider challenge to secure agreement on the purpose and mechanisms that should be used to enforce both the statutory and the negotiated regulation of work and employment.

There is a lot to do. The Labour party's landslide victory brings both opportunities and challenges for shaping industrial relations in the UK. While the new government's commitment to legislative reforms and improved worker rights is promising, the effectiveness of these changes will depend heavily on the government's ability to foster ongoing dialogue between unions and employers. For lasting progress, it will be crucial to establish robust structures for collective bargaining and ensure the effective enforcement of workers’ rights. Early initiatives should focus on building forums for negotiation, particularly in areas of mutual interest like skills development. Ultimately, achieving a fairer distribution of economic growth through strengthened industrial relations is a long-term endeavour, requiring sustained effort beyond a single parliamentary term.