Blair to dismiss union demands for changes to recognition law

Tony Blair is to provoke another row with the trade unions by rejecting their demands for the Government to boost their power in the workplace.

After alienating many union bosses by taking a hard line in the firefighters' dispute, the Prime Minister will deepen the wounds by rejecting proposals by the Trades Union Congress to make it easier for unions to win the right to represent workers.

The Department of Trade and Industry (DTI) is reviewing the 1999 Employment Relations Act and will give its response in the new year. Ministers said yesterday the Government would announce only "minor tinkering".

Although the Act forced companies to recognise unions, it set high hurdles, which the TUC says are unfair. As well as winning a majority of those voting, a union has to win the support of 40 per cent of those entitled to vote.

The review will also dismiss the TUC's call for small firms to be forced to negotiate with unions. At present, companies with fewer than 21 workers are excluded from the recognition law.

The only concession to the unions is expected to be measures to ensure companies consult their workforce, which are required under a European Union directive.

Downing Street has taken a close interest in the review and is anxious not to upset the Confederation of British Industry, which has launched a high-profile campaign against the Government for increasing taxation and red tape on business.

Relations between the Government and the unions have sunk to a low ebb during the firefighters' dispute. Bill Morris, leader of the Transport and General Workers' Union, angered ministers this week by saying it was difficult to find the dividing line between Labour and the Tories.

One minister said: "The way for the unions to recruit more members is not by passing a new Act of Parliament but by them convincing people to join them, especially in the private sector where union representation is low."

In its submission to the Government, the TUC argued that the 40 per cent rule was unfair and unnecessary. It said that union recognition should be granted where a majority of those voting voted in favour.

The TUC said it was strongly opposed to the exclusion of businesses where fewer than 21 workers were employed. This rule meant that 4.5 million workers were excluded from the statutory right to be represented. It dismissed ministers' fears that extending union rights in the workplace would harm competitiveness.