Angela Rayner has attacked Lord Mandelson in a Labour row over her plans to overhaul workers’ rights.
Ms Rayner, the deputy Labour leader, hit back at the party’s former spin doctor after he urged her to work more closely with businesses in drawing up a flagship “new deal for working people”.
Ms Rayner has vowed to give trade unions greater powers in the first 100 days of a Sir Keir Starmer-led government and repeal anti-strike legislation.
In a Times column, Lord Mandelson wrote that although there was a “clear case” for reforming existing laws, Labour’s workforce policies “must not be rushed [and] must be done in consultation with business”.
Ms Rayner told the Financial Times her “message for people like Lord Mandelson” was to remember dire warnings that were issued prior to Sir Tony Blair’s 1997 landslide.
“Business was squealing about the minimum wage, saying that they’re all going to go out of business and it would bankrupt the country,” she said.
“Well, it didn’t. It’s endured, and it’s one of the things that – across all political spectrums – [people] say that it was actually crucial and it’s affected millions of workers positively.”
The national minimum wage was introduced in 1999 by Sir Tony’s administration, in which Lord Mandelson played a major part. The policy had been a major feature of its election campaign two years previously.
Labour would bring forward an Employment Rights Bill in its first 100 days in power, along with repealing the Trade Union Act 2016, which imposes a series of conditions on unions that want to strike.
These include a 50 per cent turnout threshold in order for industrial action to be legally valid. Those working in health, education and transport must reach an additional threshold among 40 per cent of those eligible to vote.
When asked last week whether Labour’s workers’ rights reforms would be implemented in full, Sir Keir said: “Yes. Let me tell you why – because I believe deep down that respect and dignity and work matters.
“As every good employer knows, if you treat people with respect and dignity at work then that increases productivity, that increases the growth in your business and enterprise and it is actually good for the economy.”
Rachel Reeves, the shadow chancellor, used her Mais Lecture to the City of London to commit to reversing anti-strike laws while promising to “work with business as we deliver and implement these policies”.
Other Labour commitments include a ban on zero-hours contracts, an end to ‘fire and rehire’ practices and ensuring workers are entitled to their rights from “day one” in their job.
But the party has scrapped an outright ban on bosses contacting employees outside working hours, which had been proposed two years ago as a “right to disconnect”.
Labour is now leaning towards adopting an obligation on employers to agree policies with staff about out-of-hours working and communication.
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