Scrap Rayner’s workers’ rights reforms, Starmer-linked think tank urges
The think tank, which played a key role in Sir Keir Starmer’s campaign to become Labor leader, has produced a new document calling for the removal of much of Angela Rayner’s workers’ rights agenda.
Labor Together’s unpublished paper criticizes the reforms in the Employment Rights Bill, which will become law in January, saying they have “drained the dynamism” of the economy and 80 per cent of them should be scrapped.
The think tank acknowledged that it had prepared the article, but said it was a “provocation” for debate and looked to the future rather than the present. A spokesman said: “Labor Together fully supports this week’s Employment Rights Bill.”
But the proposals risk sparking a major row within the party amid suggestions that a challenge to Sir Keir’s leadership following May’s local election results could lead to a fight for the party’s future political direction, widely expected to be disastrous.
Earlier this week, Sir Keir praised the changes as the “biggest advance on workers’ rights in a generation”.
Union leaders welcomed the reforms, saying exploitative zero-hour contracts would be banned, sick pay created for everyone and anti-union laws repealed.
But businesses warned this would lead to reduced employment and dent growth.
The document said the reforms had left the government’s economic agenda “backwards”, calling on ministers to embrace “easy dismissals” while increasing taxes on firms and workers to fund higher unemployment insurance for those who lose their jobs. TimesHe reported that it was distributed to some Labor Party MPs.
He said the government should “scrap 80 per cent of the Employment Rights Bill and rebuild unemployment insurance”.
“This could be financed by higher taxes on employers (cheaper than the cost of ERB (Employment Rights Act) compliance) and small contributions from workers.”
In addition, the report said that new technology makes the “creative destruction” of job losses inevitable, and stated that the government should have the “most flexible markets” of superpowers such as the USA and China, and that “easy dismissal means easy hiring” and that this will benefit both companies and workers. The paper also recommends ending spending on infrastructure projects in the south-east of England, saying they “can pay for themselves”.
Article whose author is not listed The bold march of technology – political economy for Labor in the 21st centuryIt opens with the words: “Tony Blair was right.”
This comes just a week after it was revealed Labor Together had been campaigning against party members over candidates to replace him; This was another sign of trouble for the beleaguered prime minister.
The think tank, formerly run by Sir Keir’s private secretary Morgan McSweeney, asked activists for their views on Labor leadership candidates amid growing concerns about the government’s direction and devastating approval ratings.
As well as Sir Keir, eight Labor politicians were elected, including cabinet ministers Wes Streeting, Shabana Mahmood, Bridget Phillipson, Ed Miliband and Darren Jones.
Also on the list were former deputy prime minister Angela Rayner, Manchester mayor Andy Burnham and Labor deputy leader Lucy Powell.
It comes just days after Sir Keir said the “hugely talented” Ms Rayner would return to his cabinet as speculation grew that she could run for the Labor leadership.
There are reports that he may run jointly with Mr Streeting to challenge the Prime Minister.
Asked if he missed his former deputy, Sir Keir said: “Yes, of course I do. I’m really sorry to lose him. As I told him at the time, he will be an important voice in the Labor movement.”
Asked if he would return to the cabinet, he added: “Yes. He is extremely talented.”
Earlier this week Sir Keir defended Ms Rayner’s reforms, saying: “I couldn’t be prouder to lead the government that delivers this.”
A Labor Together spokesman said: “Labour Together fully supports this week’s Employment Rights Bill.
“This article was a provocation for private debate on how to build a political economy centered on technological change and innovation.
“It looks beyond current policy, exploring ideas for spreading innovation and investment outside the South East and how to support workers through technological change with a greater welfare state rather than regulation alone.
“But given the welfare state we inherited from the Conservatives, this is a long way off. The Employment Rights Act is now the best way to provide workers with much greater security.”
