Return to the 1970s as Angela Rayner's law could see walkouts triggered by just 10% of workforce
Business leaders and political opponents say the Employment Rights Bill, currently being debated in the Lords, should be dubbed the 'Unemployment Bill' because of the burden it will place on already struggling companies.
Last week, economic growth figures showed that the UK economy shrank by 0.3 per cent in April, worse than the 0.1 per cent decline predicted.
In spite of this – as well as firms warning they are being pushed to breaking point by the Chancellor's £25 billion National Insurance raid – Deputy Prime Minister Ms Rayner is pressing ahead with plans to give staff enhanced employment rights.
Central to the plans will be the repeal of Tory trade union laws which will reduce the threshold for strike action and make union funding of the Labour Party automatic – with an 'opt-in' provision – rather than optional.
It is likely to see a return to the industrial unrest of the 1970s when strikes could be triggered by a small number of activists.
Labour's own analysis says the Bill will cost businesses £4.5 billion a year, l ead to the loss of 50,000 jobs and increase prices in the shops.
Union chiefs will also be given a legal right to enter any workplace to recruit and organise, while the 40 per cent vote threshold for union recognition could be slashed to just 2 per cent of staff.
The laws pave the way for ministers to decree only one in 50 workers in a bargaining unit negotiating with employers would need to support a union in order for a formal process to start.
When combined with the expected abolition of the 50 per cent turnout rule for a strike ballot, the Tories say action could be triggered by as few as one in ten workers.
It means that, for example, in an office of 1,000 people, just nine employees could vote – and only five votes in favour – for a strike to be called.
The Bill also includes an end to zero hours contracts; the right to unfair dismissal from the first day; strengthened collective redundancy rights; enhanced sick pay; stronger tipping rights; more family-friendly rights, and extra parental and bereavement leave rights.
Shadow Business Secretary Andrew Griffith said: 'This Bill should be renamed the 'Unemployment Bill', because that is exactly what it will do.
'Unions will grind the country to a halt, causing havoc with strikes supported by just 10 per cent of the workforce. This is nothing but an extreme union charter that Rayner hopes will take us back to the 1970s.
Once again, Labour are putting party first country second – and the grubby quid pro quo at the heart of the deal proves it.'
Jonny Haseldine, head of business environment at the British Chambers of Commerce said the legislation 'does not strike the right balance' and provisions in the Bill would be 'deeply worrying for employers'.
Mr Haseldine said: 'There's a high risk of consequences that could limit employment opportunities and economic growth.
'The Government needs to help businesses innovate and be more productive. By adding more restrictions the Bill jeopardises
all of this – creating a lose-lose scenario for everyone.' He added: 'Planned changes to dismissal rules and trade union ballot thresholds, for example, are some of the critical areas that need to be revisited.'
A government spokesman said: 'The old strike laws clearly didn't work, with the UK losing more days to industrial action than any year since the 1980s. Our Employment Rights Bill is fundamental to delivering our Plan for Change.'
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