GK Senior Associate Sam Tankard considers the changes to the Labour Party's plan to 'Make Work Pay: Delivering A New Deal for Working People' and what it signals about Labour's approach to the business community and trade unions.
Built on the trade union movement, the Labour Party will always prioritise workers’ rights and fair pay. Labour MPs are members of unions, many of whom came to politics as union reps. It’s easy to see why it has been a big part of Labour’s electoral offer to working people.
However, it has not always come without challenge. As the Party has sought to appeal to the centre ground under Keir Starmer, courting businesses along the way, several concessions have been made to its original package for workers’ rights, first announced at its 2021 Party Conference. Labour grandee Peter Mandelson is thought to have been one of the principal voices in softening the language to appeal to the business community, much like he did the last time Labour entered government in 1997. Meanwhile, spokespeople in Angela Rayner’s team – the lead for the New Deal for Working People, and elected Deputy Leader of the Labour Party – say that the decisions to tone down promises comes from wanting to consult thoroughly to make sure it gets new regulation right when introducing its Employment Bill.
What’s left is still what many would consider a progressive agenda. The plan includes banning ‘exploitative’ zero-hour contracts – softened from banning all zero-hour contracts – and ending fire and rehire practices, a long running campaign from the Labour left. The Party will also introduce basic employment rights from day one – a very significant move, particularly for the temporary workforce. There have also been a number of revisions to how the Party will approach the self-employed, promising now to consult on introducing a single worker status.
The other radical element will be to change the remit of the Low Pay Commission so that, for the first time, it will account for the cost of living. Labour will also remove the age bands for those on national minimum wage.
Consulting more with business and taking a more pragmatic approach to policymaking has contributed to a more considered policy package than when this plan was first announced. This is characteristic for this changed Labour Party as it presents itself as a government in waiting.
With Angela Rayner’s passion for this policy area, this Employment Bill will be one of the primary pieces of legislation to be pushed through under this new Labour government. However, there will be lots still to do to balance the interests of the unions and businesses throughout policy consultation who will both be pitching to further shape this policy offer.