20 July 2001
The simmering hostility between the trade unions and the government over the 'privatisation' of the public sector broke out into open warfare this week.
The GMB, the country's fourth largest union, said it was to cut its funding of the Labour Party by up to £1m over the next four years. Its decision came 24 hours after a speech by the prime minister who said the public sector should 'reform or bust'.
A GMB spokesman said: 'A number of people were uncertain about whether we should campaign directly against the government on this issue but it was clear from the prime minister's tone that he intends to push forward with public sector privatisation.'
The GMB is cutting £250,000 from its £650,000 donation to Labour immediately and said more cuts would follow. It may not be the last union to do so.
Unison is taking a 'long hard look' at whether it gets value for money from its £1.5m a year. General secretary Dave Prentis met his union's 80 sponsored MPs in the House of Commons on July 17 to press home the union's 'Keep public services public' campaign. 'We have the evidence,' said a spokeswoman. 'It's a question of convincing the government that our argument is watertight.'
Ministers may take encouragement that other unions are ruling out similar moves. The Fire Brigades Union, widely expected to follow the GMB's lead, told Public Finance it would continue to fund Labour.
The T&G reiterated the message given at its annual conference earlier this month that Labour is the 'only show in town'.
PFjul2001
