Gilman, Mark
Government acts to relax compulsory competitive tendering
27 december 1997
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
Government releases preliminary results of its pensions review
27 november 1997
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.
Staff at Barclays Bank due to strike on Christmas Eve
27 november 1997
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
Skills shortage reaching crisis point
27 november 1997
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
Union reveals results of stress survey
27 oktober 1997
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.
Unions call for compulsory training levy
27 oktober 1997
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.
More detail and CBI support for the New Deal
27 oktober 1997
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
Low Pay Commission hears evidence on National Minimum Wage
27 oktober 1997
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
New Deal receives widespread support from the business community.
27 september 1997
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
John Monks outlines new unionism
27 september 1997
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