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Wednesday, 21 August, 2002, 14:28 GMT 15:28 UK
Unions prepare 'privatisation' attack
Tony Blair at Labour's annual conference in Brighton last year
Blair's union showdown last year never happened
Trade unions are preparing for the showdown over "privatisation" in public services postponed last year in the wake of the US terror attacks.

Open in new window : Trade unions guide
The big unions at TUC 2002

Leading unions are set to oppose the government over the role of private services in running schools and hospitals at next month's annual Trades Union Congress in Blackpool.


The reform of public services will not be achieved through an increased role for the private sector

Unison motion
A critical vote on the issue was due to be held at last year's congress before it was stopped early in the aftermath of the terror attacks.

With left wing figures now at the head of some of the unions, Tony Blair may be in for that confrontation this year, as well as facing opposition to possible attack on Iraq.

When the TUC meets on 9 September, it will debate a range of motions on the thorny public-private controversy.

'Double standards'

The GMB union is calling on the government to impose a moratorium on further public finance initiatives (PFI) or public-private partnership (PPP) schemes while there is an independent inquiry.

The motion also criticises ministers for failing to prevent the growth of "a two-tier workforce in Britain's public services".

TUC general secretary John Monks
The congress will be John Monks' last as TUC general secretary
That attack reflects trade union concern that using private companies to run some local council services means many workers are landed with worse pay and conditions.

Unison is another union looking to give fresh impetus to its campaign against "privatisation", which it says is making public services worse.

Reform drive

The union's motion says: "The reform of public services will not be achieved through an increased role for the private sector."

The Rail, Maritime and Transport Union (RMT) is set to repeat its call for the railways to be renationalised, as well as restating its opposition to the part-privatisation of London's Tube.
Charles Kennedy, Liberal Democrat leader
Kennedy will be the first non-Labour politician to address the TUC

The prime minister was about to take on the unions on the issue in his TUC speech last year when news broke of the attacks on the World Trade Center.

Mr Blair was due to argue that reforming public services was as crucial to the UK as his fight to change Clause IV of the Labour Party's constitution had been to his party's fortunes.

"Where the use of the private sector makes sense in the provision of public services, we will use it. Where it doesn't, we won't," he was due to say.

Pay claims

Mr Blair has relied on Sir Ken Jackson as a key union ally in the past but Sir Ken has been ousted as joint general secretary of Amicus by left winger Derek Simpson.

The prime minister has also been warned by his confidante and former cabinet minister Peter Mandelson that resisting union pay demands is a key test for Labour's second term in office.

Both the privatisation rows and the arguments over Iraq are likely to continue when Labour meets at the end of September - again in Blackpool.

At the TUC, the Transport and Salaried Staffs' Association, representing white collar railway workers, has tabled an amendment opposing a US attack on Iraq.

It proposes: "The situation is urgent and congress urges the UK Government to withhold support for such an attack which it considers is contrary to international law and would inevitably destabilise the Middle East."

Pension 'crisis'

Back on the domestic front, the end of many companies' final salary pension schemes is set to be another major issue at the TUC.

Alarm at the "mounting crisis" is signalled in a motion from the Amicus union, which has threatened industrial action against companies halting their final salary schemes.

The union wants the TUC to press for all employers to be forced to pay a bigger amount towards their staff's pensions.

The congress will also see Liberal Democrat leader Charles Kennedy become the first non-Labour politician to address the TUC.


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See also:

12 Sep 01 | Politics
27 Mar 02 | Business
02 Feb 02 | Politics
06 Sep 01 | ppp
09 Sep 01 | Politics
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