Businesses told good staff relations key to winning contracts

Published on Tuesday 15 July 2008 22:06

BUSINESSES hoping to win government contracts have been told they must build on good relations with workers, as pressure intensifies on the Labour government not to ignore union demands.

Under a new agreement between unions and the government, workers employed by firms on public-sector contracts will be told how to join a trade union.

Brendan Barber, the TUC's general secretary, said: "Soon any people employed by contractors who win government contracts will be able to access basic skills training at work, be able to find out how to join a union and learn more about the law and how it relates to their job."

The deal comes as local government staff begin a two-day mass walk-out in England, Wales and Northern Ireland today. Public-sector staff are demanding bigger pay rises, but the strike is also a warning to Gordon Brown, the Prime Minister, to listen to union demands at Labour's national policy forum in Warwick at the end of this month.

Unison, the biggest public-sector union, has warned it could withdraw its 1.5 million funding to Labour if it continues to dismiss workers' concerns.

Public-sector workers have reacted with anger to pleas from the government not to push for inflation-busting pay rises and have vowed to press ahead with strikes in England, Wales and Northern Ireland.

Unison said almost 250,000 council workers earn less than 6.50 a hour.