Gilman, Mark

Compulsory competitive tendering (CCT) was one of the key privatisation measures of the Conservative governments of 1979-97, which brought much insecurity into the lives of those who provided services to local authorities. Much to the joy of local authority workers and trade unions, in June 1997 the new Labour Government announced that the rules on CCT would be changed after a wide-ranging consultation exercise (UK9706141N [1]). On 21 November 1997, local government minister Hilary Armstrong laid before Parliament new regulations which amend the existing framework for CCT to make it more flexible, and encourage local authorities to move to a "Best Value" based approach to service delivery, in which value to customers would take priority over competition per se. She said: "In due course we will be replacing CCT with a new legislative framework on Best Value. In the meantime, I want local authorities to develop Best Value ahead of primary legislation." [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/government-relaxes-compulsory-competitive-tendering-rules

Since deregulation in 1986, the UK's system of pensions provision is seen by some to have degenerated into something of a turmoil. Cases of bad practice and bad advice by many financial companies have led the Government to order compensation for thousands of individuals who were made worse off through following advice to take out private pension schemes, rather than stick with occupational pension s.

Trade unions representing employees at Barclays Bank- the Banking, Insurance and Finance Union (BIFU) and the Barclays-specific UNiFI- have been involved in a dispute with management for some six months (UK9707147N [1]). The unions claim that under a new performance-related pay and grading scheme, staff face a salary freeze in which seven out of 10 employees will see a cut in their expectations in terms of earnings and pensions. The unions claim that despite numerous attempts to negotiate a solution, the bank refuses to go to the Advisory Conciliation and Arbitration Service (ACAS) or to reopen meaningful negotiations on the issue. Three one-day strikes have already taken place on 17 and 20 October and on 7 November. Now unions feel that they have to take the more drastic step of striking on one of the busiest shopping days of the year - Christmas Eve. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/barclays-bank-may-face-strike-action

As 1997 draws to a close, skill shortages are becoming acute in many sectors of the UK economy, leading to worries in many quarters that a rapid rise in wages may begin to result (UK9709162F [1]). The Confederation of British Industry (CBI) has warned that interest rates may have to rise if the growing skill shortages increase inflationary pressures. Although the CBI feels that inflationary pressure may be subdued by a relative decline in export order-books, it is worried that the skill shortage might feed through in the form of higher earnings growth. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-quality-of-life/survey-argues-that-uk-employees-are-better-off-than-their-european-neighbours

On 7 October 1997, the Manufacturing Science Finance (MSF) trade union, which represents skilled and professional workers, announced the results of a survey in which it was revealed that stress within the workplace is on the increase. The union is calling for action by employers to reduce stress in the workplace and has been joined in its call by government environment minister, Angela Eagle.

The leaders of two of the UK's largest trade unions - the TGWU and GMB general workers' unions - are calling for the Government to impose a compulsory training levy of 2% of paybill on employers to boost the skill levels of the UK workforce.

On 9 October 1997, employment minister Andrew Smith announced the precise details, or "Design", of how the Governments "New Deal" (UK9707143F [1]) will help 250,000 young and unemployed people to move out of welfare and into work. The details show how determined the Government is to cut unemployment and poverty: not only is it aiming to remove people from the ranks of the unemployed, but it is also concerned to provide high-quality jobs. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/details-of-welfare-to-work-programme-announced-in-governments-first-budget

There has probably been no other UK industrial relations issue recently which has caused so much controversy as the National Minimum Wage (NMW), which the Labour Government is committed to introducing (UK9704125F [1]). Debates continue to rage over issues such as what the rate should be, what its effects are likely to be and what should be the role of the Low Pay Commission (LPC) which has been appointed to advise the Government on such problems (UK9708158N [2]). The debate continues, with one side putting forward an argument, only for someone else to argue exactly the opposite. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-labour-market/the-industrial-relations-consequences-of-the-new-labour-government [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/national-minimum-wage-update

The New Deal, announced by the Labour Government in July 1997 (UK9707143F [1]), offers four options to young people who have been unemployed for six months: a private sector job, with employers eligible for a GBP 60 weekly subsidy for six months; work with a voluntary sector employer, with a weekly wage equivalent to social security benefit plus a fixed sum for six months; a job with an environment task force; or full-time study on an approved course. The aim is to make young people employable and to integrate their needs with the needs of business. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/details-of-welfare-to-work-programme-announced-in-governments-first-budget

In May 1997, "new" Labour reversed its fortunes and came to power with the biggest majority this century (UK9704125F [1]). "New unionism" hopes to do the same by reversing the declining fortunes of the trade union movement over the past 19 years. "New" was the "buzz-word" of the Trades Union Congress (TUC) conference, held on 8-11 September 1997, and John Monks, the general secretary, set out the agenda for the conference - the unions' place in the new Britain: "Not just what we'd like to get, but where we can play a part. Not just what we want to see, but what we plan to do. And not just what we want others to give, but how we ourselves can contribute" [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-labour-market/the-industrial-relations-consequences-of-the-new-labour-government