Union leaders have warned of a “massive backlash” if the prime minister attempts to water down the workers’ rights bill following his sweeping cabinet reshuffle.
The removal of two ministers who were the architects of the bill – former deputy prime minister Angela Rayner and ex-employment minister Justin Madders – prompted fears among unions of a shift to the right in Sir Keir Starmer’s government.
One senior union figure described Sir Keir’s reshuffle as “a right-wing coup”, adding: “The employment rights package is a red line.
“There will be a massive backlash if any attempt is made to water the bill down.”
Downing Street moved to calm fears over the issue on Monday as the Labour Party teetered on the verge of civil war. A spokesperson said the legislation had the “absolute backing” of the government and Sir Keir would ensure that dozens of amendments put in by Tory and Lib Dem peers will be voted down.
It came as Trades Union Congress general secretary Paul Nowak issued a barely veiled threat in his keynote speech at the group’s conference in Brighton.
He said: “My message to the government is simply this: deliver the manifesto on which you won a huge majority last July; deliver good jobs, decent public services and better living standards in every corner of the country; deliver the change people voted for and show working people whose side you are on.”
Unite general secretary Sharon Graham, whose union is thought to be considering supporting Jeremy Corbyn’s new party, also warned: “What I do hope is that they don’t intend on now slowing this down, or indeed scrapping some parts of it altogether. You don’t have to be a bad employer to be prosperous. And so therefore, for me, trade unions are the equaliser.”
She added: “I don’t accept that trade unions and putting up wages is bad for the economy. It’s good for the economy.”
Alison McGovern, a minister in the Department for Housing, Communities and Local Government, said the bill was a “cornerstone” of Labour’s general election manifesto.
She told a fringe meeting at the TUC Congress: “Labour MPs have voted three times for it. We are committed to it.”
But it has been noted that implementation of the bill, which is currently in the House of Lords, will be in the gift of ministers and could be delayed by a year or more.
Concerns have already been raised that chancellor Rachel Reeves, who has publicly backed the bill, had promised business leaders ahead of the election that she would limit the reforms in the hopes of achieving economic growth.
With the junior doctors in the process of holding a series of strikes with pay demand of 29 per cent, there had been suggestions that plans to repeal Tory legislation limiting strike action by unions could be looked at again.
Mr Madders, the former employment minister, was one of the guests at the TUC on Monday with union delegates and MPs on the left focused on ensuring the employment rights package he steered through the Commons is delivered.
Labour MPs urged ministers and peers to deliver the bill in full. Kate Osborne said: “The Employment Rights Bill can not be watered down, it’s a manifesto commitment that must be delivered in full, which includes overturning all of the recent unhelpful amendments that big businesses pushed through the Lords.
“It would be a disgrace if it was watered down by even one drop.”
Ian Byrne added: “It cannot be watered down… It would be a betrayal of all those who trusted us last year to deliver this key manifesto pledge, the very policy we stood on as Labour MPs.”
And Jon Trickett said: “Clear commitments have been made about the Employment Rights Bill by the PM. There must be no question of betrayal, prevarication or compromise.”
With Ms Rayner’s controversial new flat a short distance from where the TUC congress was taking place, there was a great deal of sympathy for the deputy prime minister, who allies said had been dealing with new briefings against her all weekend.
There was speculation of a potential attempt to remove Sir Keir if local election results go badly and even pave the way for a return by Ms Rayner despite having to quit over failing to pay £40,000 in tax she owed.
One senior union figure said: “Angela can come back. She can still be leader. She is a generational politician, has charisma and can cut through in the way this lot [Sir Keir’s government] can’t.”
Meanwhile, with the details of the Labour deputy leadership contest announced, there was speculation that an MP from the soft left will run, turning it into “a referendum on the Starmer government”.
Friends of former transport secretary Louise Haigh, who was also forced out of the government, insisted she will not stand for deputy leader.
“Louise knows what the direction of travel is. She knows this lot are finished and she is keeping her powder dry,” they said.
Former frontbencher Dame Emily Thornberry is already looking for the 80 nominations required from MPs.
