Rayner meets with businesses and unions to address issues related to workers’ rights.
Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds recently convened with business leaders and trade unions to discuss the government’s proposed Employment Rights Bill. This legislation aims to ban the “exploitative” use of zero-hours contracts and put an end to “fire and rehire” practices.
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While trade unions have largely welcomed these proposals, some business groups have voiced concerns. Post-meeting, Ms. Rayner celebrated what she called “a new era of partnership,” which she believes will benefit everyone striving for a better life across the country.
The meeting included representatives from the Trades Union Congress, Unite, Unison, and the GMB, as well as business groups like the CBI, the British Chambers of Commerce, and the Federation of Small Businesses. According to the government, participants agreed to “wipe the slate clean” and start a new relationship based on respect and collaboration to help achieve the government’s goal of kickstarting economic growth.
Labour had long opposed zero-hours contracts, which allow employers to hire staff with no guarantee of regular hours. After winning the general election, the Labour government announced the Employment Rights Bill to eliminate these contracts. The bill also seeks to end fire and rehire practices, where companies dismiss workers only to rehire them under less favourable conditions. Additional proposed changes include granting workers rights to parental leave, sick pay, and protection from unfair dismissal from the first day of employment.
During the election campaign, the Conservatives argued that Labour’s plans would impose excessive regulations on businesses and deter investment. Sharon Graham, leader of Unite, expressed concern that Labour’s plan contained too many loopholes, describing it as having “more holes in it than Swiss cheese.”
A draft of the Employment Rights Bill is expected to be published in the autumn, offering more details on how the government plans to fulfil its manifesto commitments.
Following the Wednesday meeting, Tina McKenzie, policy chair at the Federation of Small Businesses, emphasised the importance of minimizing negative impacts on employment, small businesses, and the economy. Jonathan Geldart, director general of the Institute of Directors, noted that “meaningful dialogue” will be essential to determine whether the government’s proposals will “support or stifle economic growth.”
TUC general secretary Paul Nowak described the meeting as a valuable opportunity for unions and businesses to discuss the shared benefits of the government’s reforms. Christina McAnea, head of Unison, added, “Britain’s problems are best solved when governments, unions, and businesses work together. Lifting standards and making work pay will drive the economic growth needed to invest properly in essential services.”
