Prescott cool on union criticism

Mr Prescott talked of a 'special relationship' with the unions

A warning from TUC boss John Monks that union support for the Labour government is "haemorrhaging" has been played down by Deputy Prime Minister John Prescott.

Speaking on the BBC's Breakfast with Frost programme, Mr Prescott said it was "not unique" for disagreements to occur within the Labour movement.

It's quite true that the Labour Party will take proper account of trade unions which have got a special relationship with them

John Prescott

He acknowledged that Labour relied on the cash it received both from unions and from business.

On Saturday, Mr Monks warned the government that an "explosive cocktail of issues" could lead to a massive loss of trade union support.

He warned Labour against "haemorrhaging" support from members, highlighting a range of issues where it is "leaving space to its left for one or other of the mainstream parties to occupy".

But Mr Prescott said: "Can I say in regard to John Monks - a man I greatly respect - he's an open-minded man, he's a fair man and he puts the point of view of the trade unions.

"The trade unions ... operate as a vested interest group and they are entitled to put their point of view.

"It's quite true that the Labour Party will take proper account of trade unions which have got a special relationship with them and that will continue but that doesn't mean we agree over every dot and tittle of policy."

At the Unions 21 conference meeting at TUC headquarters in London, Mr Monks listed a series of union grievances from the decline of manufacturing to involvement of the private sector in public services.

He also attacked the government's opposition to European social legislation.

Other issues included the government's admiration for the business world, "a raft" of difficult transport issues, and the future of the Post Office.

Traditionally a moderate, Mr Monks said he was not arguing that the trade union movement should break with Labour.

Tory 'danger'

But he warned: "If the Conservative leadership had the wit to move to the centre and embrace, say, strong defence of good pensions and rail nationalisation, it could occupy space to the left of Labour and gain huge advantage."

He added: "We have high hopes of this government... we are up for deals, for social partnership with employers, and for change in public services."

Labour Party chairman Charles Clarke told the BBC he thought Mr Monk was wrong in suggesting that government paid undue respect to business.

'Two-tier workforce'

Mr Clarke was asked about a leaked document suggesting that the government was planning to water down promised protections for the terms and conditions of staff transferred from the public to the private sector.

The unions have warned that a "two-tier workforce" was developing.

Mr Clarke said: "That leaked document was an options paper. There have been further discussions. I think the discussions are going on.

"I'm not either accepting or rejecting it, I'm simply saying there's a process of discussion which needs to take place and is in fact taking place."

Trade and Industry Secretary Patricia Hewitt told Saturday's conference there was "absolutely no question" of the government going back on its commitment to protect workers who transferred from the public to the private sector.

Referring to the leaked document, Ms Hewitt said the furore was an example of "spin over substance".

Ms Hewitt said it was not sensible to get drawn into a discussion about leaks of early drafts of documents circulating among officials.

She added: "The only people who benefit from that are journalists."