Business leaders and unions to work hand in hand to deliver new plans to Make Work Pay

• Businesses and workers will get a bigger voice at the table as Government takes the next steps in its mission to Make Work Pay

• Deputy Prime Minister and Business Secretary host senior representatives from trade unions and business organisations for the first time to discuss workers’ rights

• This sets out Government’s commitment to engaging on the Plan to Make Work Pay and deliver an ambitious agenda to ensure workplace rights fit for a modern economy

British workers are set for better working conditions as the Government takes its first steps towards its Plan to Make Work Pay.

The Deputy Prime Minister and Business Secretary convened a meeting with trade unions and business leaders in a first-of-its-kind meeting today [14th August 2024].

They agreed to wipe the slate clean and begin a new relationship of respect and collaboration to help deliver the Government’s first mission – to kickstart economic growth.

They discussed views on the Employment Rights Bill and wider Plan to Make Work Pay, with the Deputy Prime Minister and Business Secretary carefully listening to the valuable insights of attendees.

This comes soon after the Deputy Prime Minster and Business Secretary decided to overhaul the remit of the Low Pay Commission to deliver early progress on the Make Work Pay plan and put more money in working people’s pockets.

The Employment Rights Bill – which will play a key role in delivering the Plan to Make Work Pay – will be introduced within 100 days of entering Government.

Senior representatives from a cross section of major businesses representative organisations and trade unions were invited to the heart of government today to contribute to the Government’s Plan to Make Work Pay.

Deputy Prime Minister Angela Rayner said:

Our plan to Make Work Pay will bring together workers and businesses, both big and small and across different industries, for the good of the economy.

This first-of-its-kind meeting has kicked off a new era of partnership that will bring benefits to everyone across the country striving to build a better life.

Business Secretary Jonathan Reynolds said:

For too long the valuable insights of business and trade unions have been ignored by Government, even on past decisions which have directly impacted them.

Business and workers will always help to shape the ambitions of government including our plan to Make Work Pay, to ensure it boosts economic growth and creates better working conditions for all” 

Minister for Employment Rights Justin Madders said:

It is time for the views of unions and businesses to be heard. This government understands the importance of stakeholders when deciding on policy.

We are getting cracking on the Bill, it will be delivered in the first 100 days and it’s great to get together to share insights that will help us to make sure it does what we intend it to.

The Plan to Make Work Pay sets out an ambitious agenda to ensure workplace rights are fit for a modern economy, empower working people and deliver economic growth.  

The Plan will support more people to stay in work, make work more family friendly, and improve living standards. This will put more money in working people’s pockets to spend, boosting economic growth, resilience and conditions for innovation.   

Further engagement is planned to discuss the detail of the Plan to Make Work Pay. Trade union and business representatives will be invited to continue to engagement on the Plan to Make Work Pay via similar meetings, as well as share vital insights via the upcoming consultations.

Notes to editors:

As part of its Make Work Pay plan, the Government has committed to:

• Ban exploitative zero hours contracts

• End fire and rehire

• Introduce basic rights from day one to parental leave, sick pay, and protection from unfair dismissal

• Strengthen the collective voice of workers, including through their trade unions, and create a Single Enforcement Body to ensure employment rights are upheld

• Make sure the minimum wage is a genuine living wage by changing the remit of the independent Low Pay Commission so for the first time it accounts for the cost of living

• Remove the discriminatory age bands, so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK

The attendees of the meeting are below:

• Deputy Prime Minister

• Business Secretary

• GMB

• TUC

• Union of Shop, Distributive and Allied Workers (USDAW)

• UNISON

• Unite

• Prospect

• British Chambers of Commerce (BCC)

• Chartered Institute for Personnel and Development (CIPD)

• Confederation of British Industry (CBI)

• Federation of Small Businesses (FSB)

• Institute of Directors (IoD)

• Make UK

• Recruitment and Employment Confederation (REC)

Attendee quotes:

TUC General Secretary Paul Nowak said:

The government’s plan to make to make work pay, including the introduction of an Employment Rights Bill within its first 100 days, can set our economy on a path towards higher growth and better living standards. Today’s meeting was an important chance for unions and businesses to discuss the shared gains that the government’s reforms will bring, and we look forward to continued close working as ministers implement their plans. 

Together, we can raise the floor so that every job has the pay and security that families need to thrive, workers have access to unions, and good employers are not undercut by the bad.

Jonathan Geldart, Director General of the Institute of Directors, said:

Today’s meeting is an important first step in ensuring that there is meaningful dialogue with business as these proposals move forward, as the specifics will be crucial in determining whether they support or stifle economic growth.

We look forward to the start of a detailed engagement and consultation process, which will be essential to minimising the risk of unintended consequences of these reforms.

UNISON general secretary Christina McAnea said:

Britain’s problems are best solved when governments, unions and businesses work together. Lifting standards and making work pay will drive the economic growth to deliver proper investment in essential services.

The fair pay agreement promised in care will rejuvenate recruitment in a sector that’s long struggled to hold on to the workers needed to support an ageing population.

Stephen Phipson, CEO of Make UK said:

Manufacturers believe that good, well-paid, secure work is key to the Government’s missions of securing economic growth and breaking down barriers to opportunity, which belongs at the heart of an industrial strategy. The manufacturing sector, working closely with trade unions, pays 9% above the national average salary, and is investing increasing amounts in skills training and wellbeing to develop their workforce and improve productivity. 

We look forward to continuing to work with the Government on ensuring its Plan to Make Work Pay benefits both manufacturing employers and their employees.

Mike Clancy, General Secretary of Prospect, said: 

The Government’s Make Work Pay programme should be an historic opportunity to improve the rights of working people in this country and should represent a symbolic shift in favour of partnership between employers, government, and workers to drive economic progress.

This meeting represents the start of a dialogue that, done properly, can deliver the growth and stability the country needs to compete on the world stage.

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce:

It was important to be in the room today to represent the views of business, and to emphasise that the Government needs to genuinely listen as it develops its plans. Our members are clear that their employees deserve high standards of protection, but it’s important to guard against any unintended consequences of the proposed changes. 

This will require thorough and detailed consultation with firms of all sizes.  The Government must take its time, engage with employers, and ensure that any changes are proportionate and affordable for businesses.” 

John Foster, CBI Chief Policy and Campaigns Officer, said:

Politicians and businesses are united in wanting to raise living standards through higher levels of growth underpinned by increased productivity. Creating the conditions in which businesses can invest and create jobs is key to this. Today’s meeting was a welcome a step in beginning the constructive dialogue that can deliver solutions that will be both lasting and effective.

Creating the space for meaningful consultation will be vital because it is business input that can ensure these reforms support growth, investment and jobs, while avoiding unintended consequences.

Paddy Lillis, General Secretary of Usdaw, the Union of Shop, Distributive and Allied Workers, said:

After 14 years of dither and delay, it’s great to sit down with a government committed to delivering for working people and talking about how to implement the change Usdaw members need.

The Government’s plans for workers’ rights will massively improve the lives of our members and we are pleased to see grown up government, bringing together politicians, employers and unions to ensure the changes outlined during the election are delivered.

Peter Cheese, Chief Executive of the CIPD, the professional body for HR and people development, said:

We recognise and welcome a number of the changes in the Government’s Plan to Make Work Pay. Together they amount to the biggest transformation of workers’ rights in a generation.

Therefore, consultation will be essential to ensure that any reforms achieve the right outcomes for individuals and employers. We look forward to being part of that process.

Neil Carberry, Recruitment and Employment Confederation (REC) Chief Executive, said:

The longest-lasting and most successful changes to the jobs market have been those developed with businesses, not just handed down to them. 

Today’s meeting is an opportunity to re-discover that principle and ensure that the work of the new Government supports business growth and opportunity for workers, including over a million temporary workers across the UK.

Tina McKenzie, Policy Chair at The Federation of Small Businesses (FSB), said:

We had positive engagement with Angela Rayner and Jonathan Reynolds in Opposition, including on their commitments to working in partnership with small business. We hope this meeting is a signal that the Government will soon start a proper, meaningful and constructive engagement process as it moves from campaigning into practical policy making.

It will be crucial the Government starts to demonstrate it is prepared to try and reduce harm to employment, small business, and the economy from any and every negative impact of these proposals. The new administration must listen to the real needs of small businesses on the ground and help, not harm, small business efforts to get people into work and secure the high levels of growth the country desperately needs.