Gilman, Mark

Following the recent publication of official figures showing pay increases in the private sector rising twice as fast as those in the public sector, the Chancellor of the Exchequer, Gordon Brown told the Confederation of British Industry (CBI) in a speech on 22 April 1998 that private sector employers should be taking a far tougher stance on pay. Adair Turner, the director general of the CBI, backed Mr Brown's warning on pay rises, stating that "the figures should be used to make people aware of the fact that some pay claims may be creeping above what is sustainable for the long term future."

On 23 April 1998, workers at the Luton and Ellesmere Port plants of motor manufacturer Vauxhall (part of the General Motors group), voted to accept a three-year pay deal. The settlement provides for a 3.5% wage rise in 1998 - below the industry average of 4.5% - a 3% increase in 1999 and a rise in line with inflation in 2000. If the exchange rate of the pound stands below DM 2.70 in three years' time, workers will enjoy an extra 0.5% rise. The deal, which is believed to be the first of its kind in UK industry, also includes some productivity-enhancing changes. It is seen in some industry circles as a pointer to changes in pay and wage structures which will occur under EU Economic and Monetary Union.

On 6 April 1998, the National Union of Teachers (NUT) published the results of a ballot which showed that 93% of its members who voted were prepared to take industrial action, short of a strike, over the issue of too much "red tape" and paperwork in schools. Doug McAvoy, the NUT general secretary said that "this was an overwhelming vote in favour of reducing the workload on teachers resulting from bureaucratic activities." However, the turnout in the ballot was low at only 28%.

6 April 1998 saw the national launch of the Government's GBP 3.5 billion "New Deal" programme of "welfare to work" aimed at putting young unemployed people into employment (UK9707143F [1]). The first stage of the programme will involve up to 118,000 young people aged 18-24, who have been unemployed for more than six months, being interviewed for participation in the scheme. Over 4,000 private sector companies have signed up to participate in the scheme (UK9710175N [2]). However, the launch was overshadowed by a leaked document which indicated that the scheme could run into financial problems because not enough young people are finding unsubsidised jobs. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/details-of-welfare-to-work-programme-announced-in-governments-first-budget [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/more-detail-and-cbi-support-for-the-new-deal

Over recent months, there has been considerable controversy over the Labour Government's plans, contained in its May 1997 election manifesto, to oblige employers to recognise a trade union where this is supported in a ballot by employees. The Government's White Paper on "fairness at work", which will deal with the recognition issue, among other matters, is now expected in May 1998. The Trades Union Congress (TUC) and the Confederation of British Industry (CBI) published a joint statement on recognition in December 1997, identifying areas of both agreement and disagreement (UK9801194F [1]), but debate subsequently concentrated on the the latter (UK9802105N [2]). In March 1998, several important trade union leaders - unhappy with the Government's perceived position - called for a special TUC conference to discuss the recognition issue (UK9803113N [3]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/union-recognition-uk-social-partners-reach-partial-agreement [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/social-partners-deadlocked-over-union-recognition [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/unions-threaten-to-call-emergency-conference-over-recognition-rights

Despite publishing a joint statement in December 1997 on the issue of trade union recognition, identifying areas of both agreement and disagreement (UK9801194F [1]), the Trades Union Congress (TUC) and the Confederation of British Industry (CBI) have since increasingly concentrated on the issues where they disagree (UK9802105N [2]). As the reality of the Government's White Paper on "fairness at work", which will deal with the recognition issue, draws nearer both unions and employers fear that the Government will favour one side's position over the other. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/union-recognition-uk-social-partners-reach-partial-agreement [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/social-partners-deadlocked-over-union-recognition

On 19 March 1998, The Transport and General Workers Union (TGWU), one of UK's main trade unions in the motor manufacturing industry, warned that the long-term future of the Vauxhall (General Motors) plant in Luton (south-east Midlands), which employs about 4,500 workers, could be at risk. The TGWU national secretary for the industry, Tony Woodley, stated that: "The company has informed that there is a threat to the long-term future of the Luton plant. Most other European plants owned by General Motors have had the allocation of new models confirmed but as things stand there is no product earmarked to replace the Vectra at Luton."

The Budget [1] presented by the Chancellor of the Exchequer, Gordon Brown, to parliament on 17 March 1997 has been described as the "make work pay" Budget. The Chancellor said that the tax and benefit system should reflect the value that are placed upon the responsibilities and rewards of work. Thus, as well as measures to encourage long-term investment both in jobs and skills, the Budget contains other measures to encourage employment directly, such as extending the "New Deal" scheme for unemployed people (UK9710175N [2]) to new groups, and radical tax and benefit reform measures which, along with the forthcoming national minimum wage (UK9712190N [3]), should help to make work pay (ie, more attractive than receipt of social security benefits). [1] http://www.hm-treasury.gov.uk/pub/html/budget.html [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/more-detail-and-cbi-support-for-the-new-deal [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/government-publishes-minimum-wage-bill

At the end of February 1998, as part of a move to improve the skills and education of the nation, the Government launched its vision of the UK as a "learning society" in a Green Paper entitled The learning age [1]. The document proposes radical measures to transform learning, including: [1] http://www.lifelonglearning.co.uk/greenpaper/index.htm

In February 1998, it was announced that the Government is to draw up a voluntary code on combating age discrimination in recruitment. The statement came as the charity, Age Concern, launched an "Age discrimination awareness campaign". A survey conducted for Age Concern estimates that more than 18 million adults have experienced age discrimination in employment, health or welfare. The study found that 70% of the population believe age discrimination exists, while only half of those who reported it were aged over 45, showing that it is a problem that affects most ages.