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Monday, September 28, 1998 Published at 09:48 GMT 10:48 UK


Mandelson in bid to calm union fears

Mandelson: No special access for anyone

The Secretary for Trade and Industry Peter Mandelson has tried to calm union fears he is about to weaken key planks of the government's Fairness at Work proposals.


Mandelson tells BBC Radio 4's Today programme: government is in a settled position
He told BBC Radio 4's Today programme that the government would be addressing the detail of the white paper but it had achieved a "settled position" on the proposals.

Mr Mandelson refused to comment on individual clauses in the proposals.

Union fears

Unions are concerned that clauses which cover issues such as recognition and capped compensation awards may be watered down.

Unison leader Rodney Bickerstaffe told the programme unions were anxious about press speculation that proposed union rights could be weakened.

Mr Mandelson told unions not to become wound up by the media and that employers' organisations would be submitting their views, like unions, as part of the consultation on the detail of the proposals.


Bickerstaffe: There are three key areas of concern for unions
He said: "I can assure you, as I said in my speech to the TUC, there's no special access for anyone in my department."

Mr Mandelson will speak on Monday afternoon as part of the trade and industry debate.

Transport and General Workers' Union leader Bill Morris will be among those demanding a categorical assurance from Mr Mandelson he will not go back on his promises.

Mr Morris said: "As far as we are concerned, this is a done deal and there can be no unravelling of the white paper because that will create a sense of betrayal, given the fact that millions of people depend on it being implemented."

Calls for interest rate cuts

The government will also come under pressure from the unions on other issues such as interest rates, public sector pay and private finance initiatives.


[ image: Bickerstaffe: Anxious]
Bickerstaffe: Anxious
Rodney Bickerstaffe told the Today programme: "The interest rate one, you already know, we think they could do more to suggest a climate of opinion that interest rates should be brought down. There's been massive job losses already and more will come.

"The second matter is one of public sector pay. Hundreds of thousands of workers get next to nothing while the private sector has let rip, particularly fat cats. But the private sector generally is well in front of the public sector. Hospitals and local authorities can't recruit people.

"The third area is private finance initiative.We think it is a short-term rip-off, we think generations in the future will really pay through the nose for that particular way of investment."

'Business contacts important'

Mr Mandelson has also denied speculation Labour has become too close to business.


Mandelson; No-one is buying favours
This year's Labour Party conference will make a profit due to contributions from companies such as the supermarket which is sponsoring the name tags which hang around the neck of every delegate.

Mr Mandelson said: "Years ago everyone complained the Labour Party didn't know anything about the real world and business, we didn't have sufficient contacts, we didn't know business and because of our lack of understanding we were a worse government for that."

The party had always had good contacts with business but they were now more important than ever, he said.

He said the only way Labour could turn around the "relative industrial decline" was to work closely with business.

Mr Mandelson said it was ridiculous to suggest bosses could buy influence with the party.

He also told the programme the government had no plans to privatise BNFL but consultants were looking at the company to consider its future and structure.





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