The hidden new plans ‘that would make firms kowtow to the unions’
Labour has been accused of covertly rewriting government procurement rules to favour trade unions, after small print in a Cabinet Office document revealed that companies bidding for public contracts will gain extra scoring points for granting union representatives access to staff. The changes update the "social value" model used since 2012 to prevent contracts going to the lowest bidder, and critics argue they will drive up business costs and add red tape, coming shortly after the Employment Rights Act already expanded unions' rights to access workplaces.
Under the revised rules, "social value" criteria – including offering flexible working, pay above the minimum wage and "progressive remuneration policies" – will count for 20% of a firm's score on contracts worth £5million or more, doubling the previous 10% weighting, while remaining at 10% for contracts between £1million and £5million and not applying below £1million. Shadow minister Alex Burghart condemned the move as a "trade union checklist", while the GMB union welcomed it. Think tank analyst Joanna Marchong criticised the lack of transparency and warned the changes affect decisions over roughly £90billion of taxpayer spending, and a Cabinet Office spokesman said the reforms would cut red tape and support British jobs.
In short
- Labour procurement rules now reward firms for giving unions staff access
- "Social value" scoring doubles to 20% for contracts over £5million
- Critics say it raises costs; GMB union has welcomed the changes
Explained simply
Trade unions are organisations that represent workers in dealings with employers. They may negotiate over pay, hours, workplace safety and redundancy terms, and can organise industrial action when disputes cannot be settled.
In the UK, the balance of power between unions and employers is set by employment law. Governments can change rules on recognition, workplace access, strike ballots and the ability of unions to influence decisions, so proposed reforms are closely watched by businesses and workers alike.
Supporters of stronger union rights say they help employees negotiate on more equal terms. Critics argue that wider union powers could increase costs, limit employers’ flexibility and lead to more workplace disputes.