Less than two months in, one aspect of Keir Starmer’s government is becoming clear. This administration is closer to the trade unions than any we have had in the past 45 years.
It is not just that the government has ceded readily to wage demands from teachers (a 5.5 per cent rise this year), junior doctors (22 per cent over two years) and train drivers (15 per cent over three years) – it has done so without seeking any agreement to changes in working practices. Given the abysmal productivity record of the public sector in recent years, especially since the pandemic, this is a remarkable omission.
The government’s failure to represent tax-payers’ interests in these pay awards serves as an invitation for further unreasonable demands. Less than 48 hours after being awarded its pay rise, Aslef announced further strikes over rostering on LNER trains. Pointedly, this is a franchise which has already been nationalised – so we cannot expect industrial relations to improve once the government fulfils its policy of bringing other franchises under state control.
Meanwhile, the ability of unions to call damaging strikes has just been increased by the repeal of Conservative legislation to require minimum service levels on strike days. We are a long way from Tony Blair, who accepted many of Margaret Thatcher’s union reforms. In 1997, New Labour stuck to its pledge to maintain fiscal discipline, at least for the first three years. There were plenty of anti-discrimination laws, which added bureaucratic burdens, but initially there was no ratcheting up of the public sector wage bill band, and certainly no encouragement for trade unions to call industrial action.

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