Government efforts to bring production back to UK will be hindered by fear of EU exit, warns TUC

Responding to the Prime Minister’s speech at Davos today (Friday), in which he has proposed a new government office to encourage firms to bring production back to the UK, TUC General Secretary Frances O’Grady said:

“Any move that genuinely attracts jobs and investment to the UK is welcome. The success of the UK car industry shows that we are a world class manufacturer.

“But no new government office can undo the damage done by the fear that Britain will leave the EU and end its membership of the world’s biggest single market.

“And what really attracts inwards investment is world class infrastructure, a skilled workforce and investment in science, not press conferences in Switzerland or inventing a new word.”

US healthcare companies circling the NHS are now “on notice”, says TUC

Speaking after meeting EU Trade Commissioner Karel de Gucht about the forthcoming Transatlantic Trade & Investment Partnership (TTIP) in Davos today (Thursday), TUC General Secretary Frances O’Grady said:

“US healthcare companies should know that they have been put on notice. They should not expect the forthcoming EU-US trade deal to protect them from a future British government restoring NHS services currently run by private firms to the public sector.

“The EU Trade Commissioner has assured me that the consultation exercise on foreign investors’ rights will now – as a result of union pressure – include the option of dumping the deeply undemocratic Investor-State Dispute Settlement (ISDS) mechanism. I left him in no doubt that unions and their campaign partners will be demanding its removal from the TTIP.

“We must ensure that future governments are not bound to pay unlimited compensation to companies seeking to make a killing from the implementation of the Health and Social Care Act. Democratically elected governments must be free to do what voters decide, and not be frightened off by the prospect of secretive litigation.”

Early interest rate rise could jeopardise economic recovery

Commenting on the latest labour market statistics published yesterday (Wednesday) by the Office for National Statistics, TUC General Secretary Frances O’Grady said:

“It’s encouraging to see another big fall in unemployment, particularly amongst young people who until now haven’t benefited from rising job levels.

“But while headline unemployment is within a whisker of the Bank’s forward guidance threshold, an early interest rate rise would clobber mortgage holders and businesses – jeopardising our economic recovery.

“Patchy levels of jobs growth in parts of the north and the continuing squeeze on living standards should make the Bank of England think twice before considering a rate raise.”

The TUC’s latest economic report found that the likelihood of being in work has fallen in the North East, North West, West Midlands and South West since mid-2010, despite the number of people in work increasing by around 780,000 across the UK.

Quadrupling of fines should make employers think twice before flouting minimum wage

Commenting on plans announced today (Wednesday) to increase the penalties for employers who flout the minimum wage from £5,000 to £20,000, TUC General Secretary Frances O’Grady said:

“The TUC has long argued that successive governments have been soft on minimum wage dodgers.

“The plans announced today to quadruple penalties for rogue bosses who cheat staff out of the minimum wage should make employers think twice before illegally underpaying their staff.

“It’s great that the penalties for flouting the minimum wage have been raised and that it’s easier to name and shame offending employers. It’s crucial now that HMRC is given the resources they need to enforce these new rights properly.”

TUC welcomes HS2 investment in skills

Commenting on the announcement by the government today (Tuesday) that there will be a new college to train engineers to work on the construction of High Speed 2 (HS2), TUC General Secretary Frances O’Grady said:

“Major infrastructure projects need a highly skilled workforce and we welcome this investment in railway engineering skills though HS2.

“We need better skills at every level of the workforce, not just for HS2 but to continue the investment and upgrading that our railway infrastructure needs.”

Government concessions on Lobbying Bill do not end its attack on free speech, warns TUC

Commenting on the latest changes the government has made to the Lobbying Bill today (Thursday), TUC General Secretary Frances O’Grady said:

“After uniting the whole of civil society against it, the government has today been forced to make further concessions on the Lobbying Bill.

“But it would be a mistake to think that the changes meet the concerns raised or end the attack on free speech. Nor do they undo the damage done through lack of consultation, or the failure even to attempt to try and build consensus.

“The attacks on trade unions in part three remain unchanged. This is despite the red flag from the Regulatory Policy Committee, the government’s continuing failure to spell out why changes are needed and the clear threat to union membership confidentiality.

“This is a bad, partisan Bill entirely devoid of merit. It should be scrapped.”