New U.K. Government Signals Ambition on Labour Reforms
The new UK government is signaling some reasonably ambitious reforms on the labour policy front (certainly more ambitious than most were expecting, given the Labour Party’s austere pre-election rhetoric and platform).
They call the vision a New Deal for Working People . The policy framework is called A Plan to Make Work Pay. Broad features of the plan were mapped out in the King’s Speech (akin to our Speech from the Throne in Canada) delivered yesterday, and include:
Strengthening the UK minimum wage policy to make it a stronger living wage. (Their minimum wage, introduced by Tony Blair in 1998, is already pretty good by international standards: it is equivalent to 57% of median wages, vs. 50% in Canada, and it’s kept up with inflation since 2019.)
Banning zero hours contracts (which currently cover >1 million workers).
Ending contract flipping / ‘Fire and Replace’ employment startegies (no details were provided on how).
Stronger access to statutory sick pay.
Flexible work hours as a normal right.
The speech’s language on reforms in the labour relations system is generic but positive:
“Updating trade union legislation so it is fit for a modern economy, removing unnecessary restrictions on trade union activity – including the previous Government’s approach to minimum service levels – and ensuring industrial relations are based around good faith negotiation and bargaining.”
Below is a backgrounder to the King’s Speech with more details, see especially pp 21-23.
My hopes were not very high for this new Labour government, given their very cautious platform. If they follow through on these reforms, however, then they are certainly heading in the right direction — which matters at this moment in history!