05 September 2003
Ministers should still expect a rough ride over public services during the conference season, but the influence of the 'awkward squad' of unionists may have diminished following the establishment of a new forum to discuss Labour's reform agenda.
That is the view of moderate union insiders in the wake of the September 2 meeting between Prime Minister Tony Blair and a group of powerful union leaders, which ended in the establishment of the Public Services Forum.
Precious few details on the forum, which will be chaired by Cabinet Office minister Douglas Alexander, have been released. But there is a widespread belief that it represents a breakthrough for the 'quiet diplomacy' brand of unionism extolled by Trades Union Congress general secretary Brendan Barber.
One senior unionist told Public Finance that it was 'a major breakthrough on behalf of the union leaders who want to engage ministers in constructive dialogue and not conflict rhetoric'.
The forum will allow union leaders to discuss public services issues with ministers on a regular and formal basis. But Alexander has confirmed that it will have no powers to change government policy.
Consequently, cynics dismissed it as a calculated concession to the unions in advance of next week's TUC annual congress and the forthcoming Labour Party conference, where the government's public services agenda will come under fire.
But PF's source said: 'It is notable that the union leaders entering Number 10 were not the core of the supposed "awkward squad". Instead, we saw those concerned with a steadier, regular form of industrial relations progress – discourse.'
Among the union leaders involved were Amicus leader Derek Simpson and Unison general secretary Dave Prentis, who have sought to downplay accusations that they represent the 'awkward squad'.
However, speaking at a pre-congress briefing, Barber warned that, although the unions' relationship with Labour was a 'success of consultation', they could still expect a fight over key reforms.
He cited government plans for foundation hospitals, the use of the Private Finance Initiative and education top-up fees as potential sore points when TUC delegates meet in Brighton on September 8.
The 'Left-wing' union leaders are geared for battle. Kevin Curran, the new general secretary of the GMB union, who was not at the Number 10 meeting, warned: 'If this was an attempt to buy off the unions before the conferences, [ministers] have seriously miscalculated.'
The forum decision also incurred the wrath of business leaders. John Cridland, deputy director general of the CBI, said: 'Reform of public services is too important to the country to be discussed behind closed doors marked "unions only".'
CBI leader Digby Jones, who will address the TUC next week, is reportedly 'furious', as it was announced on the same day the TUC released a statement on public services that supports calls for an end to private finance in the sector.
'We're still reeling – all this undermines the partnership working and negotiation that, as the TUC acknowledges, has brought benefits across the public services,' a CBI source said.
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