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Gordon Brown has caved in to unions, allowing a series of concessions - including an extension of the minimum wage - in a move that sent shudders through the business community.
Coming days after Labour’s humiliating defeat in the Glasgow East by-election, it also puts pressure on the Prime Minister’s weakened position.
Dave Prentis, the Unison general secretary, hailed the deal as a return to Labour’s “core values”.
Unions are confident of securing further concessions. One leader disclosed to The Times that ministers had agreed to another policy forum before the next election. “This is only half time, it is not the final whistle,” he said.
Business leaders gave warning that the measures, which include new rights to time off, would hit companies’ ability to compete during an economic downturn. Changes to the minimum wage in particular could cost businesses an extra £88 million a year.
The party also agreed to extend parental leave and to impose new limits on private contractors to the Health Service.
Officials negotiating on behalf of the party insisted that they had seen off the most controversial of the union demands, pointing out that there were no commitments to introduce less restrictive strike laws.
The three-day meeting at Warwick University to agree Labour policies took place in the midst of mounting speculation over Mr Brown’s future as he began his summer holiday in Suffolk.
The unions have found their negotiating position strengthening as individual donations dry up, leaving the party dependent on members’ affiliation fees.
Under pressure from the unions Labour has agreed to extend the adult minimum wage to 21-year-olds. At the moment the full minimum wage of £5.52 applies only to workers aged 22 and over. Those aged between 18 and 21 get £4.60 and 16 to 18-year-olds get £3.40.
The unions have long campaigned for younger workers to get the full minimum wage, arguing that they face the same cost of living as older workers. But the Government has said previously that the rate is lower so that younger workers are not priced out of the jobs market. The change will mean a £1 an hour boost for about 50,000 workers.
Public sector unions claimed victory over a pledge to fight any moves by the European Union to create a single market in health care. They also won a greater commitment to using in-house services for hospital cleaning, with hospitals given more power to terminate contracts with providers.
Councils will also be forced to implement pay equality measures under the public sector reform deal thrashed out in talks that ended at 5am yesterday. Mr Prentis said that the deal provided “ a sound basis for rebuilding support for Labour’s core values”.
David Frost, director-general of the British Chambers of Commerce, said: “At a time when the economy is clearly facing difficult conditions any moves that restrict employers’ flexibility is a concern. And when there are significant issues with the public finances, anything that restricts efficiency in the public services is a problem.”
Neil Carberry, head of employment policy at the CBI, said: “During an economic slowdown business can’t bear the burden of increased regulation. The flexibility of Britain’s labour market is an important competitive advantage.”

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No economy can need both a minimum wage and to import unskilled labour - the labour party has brought in both with disastrous results.
It has caved in to the CBI, the EU and the TUC - and id doing so consistently acted against the interests of the British People
edward green, Upminster,
Get used to it. The minimum wage is about 10 times what workers in asia earn, and they're the ones taking the jobs. Until Britain can produce high value goods & services that's who you're competing against, and you don't create a high value economy with an uneducated, unskilled workforce on benefits
Fred, London,
I also am a union member but this just makes UK even more uncompetative. Brown has alrady stolen all our pensions
Now he is prepared to seal our fate by returning to the 70s. I would rather a job than slightly higher pay until business goes bust. Desperate men do not make good leaders.
Jo, Dumfries, UK
I am a union member and wont take any advice from those at the CBI who are happy to line their own greedy pockets whilst denying workers a decent wage. They are happy to shut down final salary pension schemes whilst fattening up their own pension pots. Come on CBI , let have some 'give and take' ?
simon white , london , uk
Before Brown plunders the "excess" profits of energy companies, banks, supermarkets etc., he should remember that he has already caused substantial damage to our pension funds. Presumably since he claims to be fair minded, the excess taxes raised from the rising cost of fuel will be returned to us.
Melchet, Edinburgh, UK
It's back to the 70s again with the unions. If people can't manage on the min wage, it's probably because of the 20% income tax and 11% NI contributions the govt takes.
Marcher Baron, Welsh Marches,
Disability and JSA & income support will pay an individual more then working for the min wage. Dole and other benefits is now an occupation in itself one that will cover your basic living cost when the min wage will not. Please train those mp in basic economics. They have got their figures wrong
emmakatlin, Leeds, UK
I bet rnost tax credits are being taken when they should not be, no check how rnany children you have, or how rnany hours you work it a free handout in alot of cases. The govt should just pay correct wage . This dept is a joke one guy said he had 20 children they never checked What a disaster
emmakatlin, Leeds, UK
I'm absolutely sick of the unions threatening strikes. The UK's public sector payroll has become the most bloated in Europe.
In the private sector we can't go on strike just because we're sick of paying for final salary perks of the public sector. My pensions in the stock market where's yours?
Scott, Aberdeen,
£5.52 is ridiculously low and probably what the average boss spends on a couple of posh coffees. Yes Sam you are right it is. A person on the min wage spends up to 2 hours of pay on actually getting into work so imaging whats left at the end of the weak, enough for a coffee, or your coucil tax bill
Jackie, London, UK
instead of raising the minimum wage why doesn't brown
reduce the tax-burden on the low paid, then he wouldn't need so many tax credits or thousands of unproductive administrators to dish them out in an 8billion pound foulup.
clako, bournemouth,
Why is the NHS and its Unions so afraid of competition from the private sector and Europe? Are they afraid the poor suckers who are paying for it all will realise what a lousy, arrogant, condescending, inefficient, self interested organisation it is? Envy of the world? NOT!
PB, london, uk
What a disaster, the government thinking about the little people? They are after all called the LABOUR party aren't they?
ED, Paris,
'North Europe' Norway
subsidied by Oil revenues and 5 million to service
Umm , good comparison
John, N Yorks, Gods own County
if you were an employer and you had to pay the same to both a 25yo with job experience and a 16yo without, who would you pick?
Second, if min wage goes up, employers will just take on less (and younger) staff. Nobody wins, esp those the unions want to help.
chris, manchester,
if you were an employer and you had to pay the same to both a 25yo with job experience and a 16yo without, who would you pick?
Second, if min wage goes up, employers will just take on less (and younger) staff. Nobody wins, esp those the unions want to help.
chris, manchester,
Part of the scorched earth policy currently being employed by Labour. Make things as atrocious as possible on as many levels as possible and hope that it looks like Tory incompetence. All members of the current Labour maladministration should be banned from holding public office ever again.
Billy Barnett, HK,
Unions still not learned first lesson. The only way to secure jobs and viable wages is to partner companies in achieving profits and sustained growth. Example, longer term employees having automatic share options and annual loyalty bonuses.
Leigh Vernier, Riyadh, Saudi Arabia
Thats the best thing i've heard Gordon Brown say in a long time. The level of minimum wage is the cause of the increase in a number of additional people claiming benefits. For example Graduates,single parents, single people despite stupid tax credit top up its not enough to live dole is more higher!
emmakatlin, Leeds , West Yorkshire
I'll bet a pound to a penny that all the negative comments on here are made by people earning far more than the minimum wage.
Derek, East Yorkshire,
Price (or wage) fixing of any kind distorts the market and leads to unintended consequences:
A minimum wage leads to the lower quality workers who could earn that wage to be made redundant.
So better quality minimum wage earners benefit at the expense of the lower quality.
Let the MARKET decide.
JB, Seef, Bahrain
Spin is dead and the Labour party's Marxist leanings are now in full swing. When will Labour realise that taxing 'till the pips sweak' is the road to disaster. This government is really living the 'Animal Farm' world. The only good thing we can rest is that they will be trounced next election!
Robert D Marshall, LONDON, UK
The Unions should have asked for a higher tax rate for business fat cats like bankers, who last year earned fortunes for bringing their firms and the country to it's knees.
Fred, Moray, Scotland
Another term of Labour in power and there will be nothing left to salvage in this country. Perhaps the Russians will but it?
albert hall, hove, england
Slash the number of people working in the public sector by a third with the exception of NHS front line staff and the police force. The money saved can pay for higher minimum wage or more sensible can go to help improve the public finances. A good place to start would be Whitehall.
James , Lancaster, Lancashire
NuLabour polices since 1997 = today's problems (uncontrolled housing-credit boom, prolonged low wages). Why blame PM Brown? He's just trying to sort out the mess that PM Blair/Cllr Brown created. More loose credit and low wages is like prescribing vodka for an alcoholic. Time to start again.
Nimesh, Aberdeen, UK
Gordon will cave in to anything, as long as he stays in power
Barry, colchester, uk
Blackmail and extortion are illegal are they not? IF I offered a government ministers Thousands or millions of pounds to change laws for me, wouldn't I be arrested?
andy, London,
Yes, indeed "come back Maggie all IS forgiven"!
I cannot believe that in the 21st century we are yet again in the grip og a Government who is quite ready to be blackmailed and dictated to by a bunch of pseudo-Communist, badly dressed, uneconomically switched on, out-dated men!
UP MAGGIE!
Sophia, Brighton,
Absolutely time for labour to return to the values that people expect of them. It may be too late to win the next election, having spent 11 years trying to out-tory the tories, but at least with a decent minimum wage they may leave a legacy of hope to millions of underpaid and undervalued workers.
Dave, Edinburgh, Uk
No we are just in the middle of a natural business cycle, i dread to think what the conservatives would do to us now
steph, Bournemouth, UK
If Brown is forced out, there should be a general election; on change of Prime minister without going to the country is just about explainable, twice is in no way democratic; the people of the UK choose who Governs them and no one else.
John Lewis, London, UK
I think, it's absolutely disgusting that 17 year olds are paid less for doing the same job as 21 year olds. My neighbour had a part time job in a popular High Street shop but it was not worth it as she had to work 2 hours only to earn her train ticket! Staff turnover there is terrible for low wage.
Telma, Guildford villages, England
David , Wolverhampton I take it you must never have experienced life working for the
min wage and tryed to survive with paying for a roof over your head, fuel, food, travel to work etc I guess after all you no nothing about it
disgusting- economies that have smaller income gap work best
emmakatlin, Leeds , West Yorkshire
I would like to see all those in favour of the min wage just try to survive on it and pay for the basic living cost. Britain is disgraceful and its time that people were encouraged to go to work and of benefits. People on the min wage are keeping the fat cat rich it needs to change its exploting UK
steven , Wakefield , West Yorkshire
£5.52 is ridiculously low and probably what the average boss spends on a couple of posh coffees. Fact is we're in trouble because of big business, big banks and greed in the boardroom. They set a terrible example and it's no surprise that unions are reacting.
Sam ,
Sam so true big problem!!
steven , Wakefield , West Yorkshire
What's wrong with increasing the minimum wage? Most of the moronic comments are from those, no doubt, who earn in excess of it anyway. If the sheep get their way Compassionate Dave will get rid of it as the caring Tories didn't want people to have anything better than poverty wages in the first plac
A Thomas, Lanchester,
Is this the best that the govt can do - cave in to bad old days? Caving in to unions make no economic sense either in the short, medium or long run especially in the face of tough times. This will only drive inflation up while private enterprise who supply jobs will find it difficult to increase pay
Glynn, Kingston,
Having spent the last 11 years acting in their own interests, the Labour party is now governing the country (sic) on behalf of the Unions.
Time for a general election now. Labour has done more than enough damage already. I never want to see Labour in power again - it always ends this way.
Ray, Cambridge, UK
Why don't unions set up businesses and create jobs and income for the workers?
BD MATHERS, birmingham,
Answer: Because they could manage a public convenience (like the Govt) let alone a business other than improving their own power base!
M. Cawdery, craigavon, Co. UK, EU (now)
One of the reasons I gave up working was the minimum wage
I simply could not pay rent, council tax or anything instead I got ill, stressed and ended up on benefits and its respite from a rat race its awful you should try it, i lasted two years I will not be doing that, i would rather be die
emmakatlin, Leeds ,
Five pounds and fifty two pence is a hell of a lot more than in the US.
Keith, N. O., USA
the minimum wage is not a living wage dont be so daft, its less then I got now I am on benefit, thats with a degree and a masters, Will, in Grims get in the real world graduates are having to take min wage jobs there is simply not that infrastructure in UK, wake up
emmakatlin, Leeds ,
All the Tory comment is as depressing as poor government. If you think that keeping the poor tied to pathetic wages while letting senior staff earn ten times (or more) as much is the way to go then you will have serious and probably violent problems with long term catastrophic effect on society.
mike gee, bournemoth , uk
Wasnt it the Tories who said having a minimum wage would destroy the ecomony and reduce employment. When in fact more people are now in employment than ever. This article smacks of Tory toffs worrying about having to pay their cleaners/gardens and nannies more. The minimum wage must be a living wage
Tom, Newcastle,
Unlike the tories, the Labour party members decide what policies it will stand on. Surely the Tories are not against helping those who have to get by on least? It was the Tories who voted against the minimum wage & predicted mass unemployment. In fact we've got more people in work than ever before!
Luke , Bristol , UK
A return to core values and a return to the opposition benches
Luke, London, UK
The Tories will have a huge job to do when they get in.
The problem is that I don't see 'Dave' and his wet trendy Tories as being up to the task that Maggie did so well in 1980s.
CliveR, Essex, UK
If you calculate working on the minimum how can it cover basic living cost.
Wage 35 hours @ £5.52 they will earn £10,047, then you have to deduct income tax from this that takes approx £1000, poll tax £800. So with what is left a person has to pay for rent,etc better to be on benefits-disgusting!
emmakatlin, Leeds , West Yorkshire
The increase in minimum wage will hurt small business owners more than ever Esther Zheng, London, UK.
so what they need to become more productive and this should not mean that they exploit people, have you ever lived working on the min wage and tryed to cover your basic cost-its difficult
emmakatlin, Leeds , West Yorkshire
The public sector may be a bit of a mess but we need reform and rebudgeting! We dont need privatisation as bottom line is private companies care only about profit, not the welfare of the people!
We need wages to go up as cost of living is sky high, energy, fuel, food etc.
Andrew Towell, Hartlepool, England
I was a delegate from the CLP section who attended the Conference in Warwick, and the writer of this article clearly misunderstands the process. Trade Unions are just one section of the National Policy Forum, and delegates are entitled to put forward their own policies as much as any others...
CLP Delegate, London,
the minimum wage is not a living wage? dont be so daft, its 5x more than people get from JSA. If people dont want to be in the poverty trap, try going to school, getting decent grades and getting a job that isnt minimum wage. or better yet be an entrepreneur!
grow some ambition
will, Grimsby, uk
Yeah that's a good idea, drive more young people out of the jobs market. Why would you hire a 21 year old with no experience over a 25 year old with a few years under their belt if they both cost the same? Can someone please educate the cabinet in basic economics?
Richard, Middlesbrough, UK
As a delegate to the National Policy Forum, I am disgusted by this article. The Trade Union delegates, like all other delegates were entitled to have their say.
Why no mention of the exciting policies put forward by delegates from the party members, such as votes at 16 and elected House of Lords?
Hannah, Manchester,
Speaking as someone who was actually there, many of the delegates from the Labour Party membership were as much in favour of lowering the minimum wage as the Trade Unions were.
This article clearly fails to understand how the policy making process works.
Nick, Lancs,
Just got back from a nice North Europe jaunt. Higher taxes, higher standard of living, incredibly good benefits for both parents, unemployed etc.. And you know what? It works, the sky hasn't fallen in, he earth isn't burning. I'm glad unions are forcing Brown to drag us up to N. Europe standards.
Ez Mayo, Oxford,
Juliet Kavanagh, London, ....a move in the right direction...?
maybe the taxpayers can stop funding quite so many public services....it's where ALL the money comes from - the tax payer
Phil, Preston,
Let's not forget that most people on the minimum wage will also be living on various benefits.Why should the Taxpayer subsidise low-paying employers? Labour certainly don't pander to the Unions,they're continually blocked British Workers from having the same rights as those in the rest of the EU
Dave, Plymouth, U.K.
Raising the minimum wage is a good thing. Reducing the dependence of the NHS on private companies is a good thing. It is unusual, and welcome, for this government to pay such attention to the people who need it most.
chris, Worthing, England
Why when in all other parts off our society an 18 year old is considered an adult,voteing ect., are they not consdered an adult for the minimum wage?
roscoe, Luton,BEDS.., England
after Brown`s visit to Israel and his speeches there in support of the Israeli`s murderous regime , would it be mischievous to suggest that Labour`s debts will be miraculously wiped out before the next election,by `anonymous `or otherwise clandestine, donations from `friends of Israel `
Jack,Macau
John Haworth, Macau SAR, China
Should scrap the min wage. If you increase it then all those who are better qualified just above them will want the differential to be maintained - and want an increase too.
Gordon dshould tell the unions to get lost - & if they threaten with strikes, he can call an election. That 'll shut them up.
Phil, Preston,
Question: what has Gordon Brown actually done wrong as PM other than come to power in a time of great social and economic instability?
roger, london,
Where have you been for the last year, mate? The question should be, 'what has he done right? He and his party have wrecked the UK
Bob, Cowes, UK
pandering to your electorate anyone?
Alex, london, england
Owen,
you cannot be serious. the public sector in the UK is the most inefficient and wasteful system in europe. the NHS provides the UK with the lowest cancer survival rates in the western world and is an international joke. the public system is more efficient than the private sector in rare cases
Alex , london, england
Just a suggestion: what about a split level minimum wage? Large corporations looking after their profits should have a higher minimum wage for employees than say a small owner-run business.
The increase in minimum wage will hurt small business owners more than ever
Esther Zheng, London, UK
Browns' Britain is an absolute disgrace
Mike Collins, Edinburgh, Scotland
Perhaps if the Labour Government stopped rinsing us all for so much tax in the first place, they wouldn't need to raise the minimum wage:
If some one earns £5.52 and works 35 hours a week, they earn £10,046 a year. They will pay income tax and national insurance of about £1,400.
Stan, Clevedon, North Somerset
When there is a 'Dead Man Walking' expect even more concessions that will lead the UK further into the Pit.........
Chris Williams, Bridgend, UK
Anyone who thinks this is a bad idea or a cave in would have to be a Tory. .
Mike London, london, England
You say that like it's a bad thing - the Tories never ruin the country to as great a degree as Labour do. They're both hopeless, but one far less so than the other.
Alex, London,
I think the concern is that we have an unstable economy which Gordon Brown has been "looking after" for the past decade. So, whilst you may say that it sin't his fault as PM, he is definately resposnible as the ex-Chancellor.
Nick, London,
As there are restrictions on contributions to political parties then the same restrictions should surley apply to union contributions. It is unacceptable that the views of one set of organisations can hold such sway over a political party especially one in power!
Jon, St Albans, Herts
As a life long labour supporter, till now. I do think this is one of their better ideas and should have been implemented years ago. The minimum wage has to be realistic £5.52 is not.
If you can't pay a living wage don't employ people. £5.52 is modern day Serfdom.
Ged for New England, North Yorkshire, England
All sounds reasonable to me, the minimum wage isn't enough to live on anyway.
Why is it that a supposedly left of centre government has to be forced into making sure people get paid a half-decent wage?
Owen, London, UK
"Restricting private contractors will only result in the delivery of less for more by public services"
Damian, London - That's simply not true. PFI projects cost more to finance, often run over budget and generally deliver an infererior product to the public sector version.
Owen, London, UK
This is great news: it will increase unemployment and make the NHS even worse. Which will lead not just to the defeat of Labour in 2010, but its complete extinction.
Kay Tie, York, UK
Question: what has Gordon Brown actually done wrong as PM other than come to power in a time of great social and economic instability?
roger, london,
One of the reasons I sold my business was the minimum wage, because I couldn't afford to pay it. Instead I'm living on the social, with no worries of where to find the money to pay the rent and the rest of the expenses
john, liverpool, uk
Increasing the minimum wage and yet giving below inflation payrises. Does Labour and the unions want everyone on the 'minimum wage' perhaps?
judy, Liverpool, England
So why don't the public sector unions want a single healthcare system for Europe? - apart from the fact that it will show up how appalingly bad the UK system is, run by members of these self-serving public sector union members at the expense of the rest of us.
Peter, London,
I wonder who is going to have to pick up the bill for this???
david whittle, Shrewsbury, England
Give us an election now and let the people vote! Our democratic right to choose has been cancelled in Labour's desperate desire to hold on to power at any cost and damn Britain and the British people in the process. The damage they have caused to the fabric of the country will take years to repair.
Kevin, Ferrara, Italy
Michael - I take it you must never have run a business and thus don't understand anything about minimum wage.
In fact, why don't we just pay everybody more? Then we'd be the richest country in the world!
David , Wolverhampton, England
£5.52 is ridiculously low and probably what the average boss spends on a couple of posh coffees. Fact is we're in trouble because of big business, big banks and greed in the boardroom. They set a terrible example and it's no surprise that unions are reacting.
Sam , London,
Having knifed business in the back for many years as Chancellor, and now continuing as Prime Minister, isn't it about time that Mr Brown continued his use of cold steel and 'fell on his sword' as soon as possible.
Yours etc
Angus Whitton
Angus Whitton, Dunfermline, Fife
Beer and sandwiches anyone?
jj, Peterborough, UK
It's not the workers on the minimum wage who have brought our economy to the brink of recession.
It's not even the government.
No, it's the financial industry represented by the CBI and the BCC with their obscene speculation to earn obscene bonus payments.
Blame the unions? Pass the sick bag!!
Dave, Edinburgh, Uk
Finally, a move in the right direction... more in-house services for the NHS is also a good move, maybe the taxpayers can stop funding quite so many private companies!
Juliet Kavanagh, London,
Goodbye Gordon. Wave the white flag. Treasure your memories of being Chancellor and forget the nightmare of being one of the most unpopular Prime Ministers.
Tim, London,
92 pence an hour more for 21 year olds to £5.52 an hour!. Are we living in China .No wonder everyone wants to stay on disability.
Anyone who thinks this is a bad idea or a cave in would have to be a Tory. .
Mike London, london, England
The protestations of the "Business Leaders" sounds like an admission that they are not competent enough to compete with their foreign competitors who have rules of this sort already in place. Truth is our managements have always been incompetents.
Robbo, Cheadle, England
So first we nationalise Northern Rock and pay out billions to investors and in bank guarantees. Now we concede billions more to the Unions.
All to cling to power and to allow the Labour Party to borrow for itself.
We need an election now to select a Government that will govern for all of us.
Chris Jones, Belfast, UK
With the Labour Party £20 million in debt to the unions this cannot be right? The unions have brought this country to brink of bankrupcy in the 1970's looks as though we are heading that way again, unelected union officials calling all the shots and creating an unstable economy. Unions = Threat.
steve tea, manchester, cheshire
John Prescott has dismissed any potential Brown successor: "None of them at the present moment has anywhere near the skills and experience, nationally and internationally, to lead this great party and country as we tackle these unprecedented major global problems." OMG. We've already got their best!
Andy, Northampton, UK
£80million is going to bring British firms to their knees?? There are about £80m worth of recreational boats within a five mile radius of my home here... Or perhaps Richard Branson could sell a couple of balloons. Perspective is all.
Ron Burns, Poole, United Kingdom
The minimum wage is not a living wage for anyone in the UK, being barely at subsistence level. It needs to be raised for all employees from 16 upwards to encourage people out of the poverty trap of welfare dependency.
Paul, Coventry,
paul this is just what I would have said has to change!!!
emmakatlin, Leeds , West Yorkshire
I didn't realise until I saw this article how awfully low the minimum wage is for under 22s. No wonder some people would rather stay on benefit. It is not a living wage and it ought to be.
Helen, Horsham, UK
l Think its time to put john from Manchester in box,its Polarised thinking like that which has ruined this country,it was ok a hundred years ago,but not now,perhaps he would welcome a return to Slavery as well,He is the worst type of tory ie a poor one
KENNETH BOWRY, LONDON,
Speaks volumes that public sector employees don't want competition from Europe. Should be expected. I'm sure Rover workers would have liked to have stopped the competition too. NHS, the Allegro of health care.
Labour's core values - waste tax on their union pals and stuff the rest of you.
Eddie Reader, birmingham, england
The labour party has always been socialist.New Labour was a trojan horse The conservatives had better not gloat over the fallen for they too are in as deep a trouble as the Labour party .Neither serving the crown or representative of the country.
G Blezard, London, uk
Brown is on the ropes and the towel iswaiting to be thrown in. Loser!
roy race, bratislava,
The minimum wage is not a living wage for anyone in the UK, being barely at subsistence level. It needs to be raised for all employees from 16 upwards to encourage people out of the poverty trap of welfare dependency.
Paul, Coventry,
-actually I think this is a good idea ( one of Labour`s few ).
Simon McDennot, Leeds, UK
Two more years of sheer incompetence, waste and lawlessness before we rid the country of these fools. Its going to be a painful period and then we have to start to put it right. The first move should be to put the Unions back in their box and repeal any concessions made in the next two years.
John, Manchester,
any chance of the tories getting rid of the minimum wage and letting the market decide the going rate of pay for a job? Is it really that hard to comprehend that if a job is offered at to low pay, that people will just not apply for it?
Develop robots- no need for unions!! only half joking
will, Grimsby, uk
A higher minimum wage will only result in unrpoductive low skilled workers being fired, especially in the current economy.
Restricting private contractors will only result in the delivery of less for more by public services.
Typical dinosaur thinking from Brown and the Unions.
Damian, London,
Never! Give in to unions!
http://fakesteveballmer.blogspot.com
steveballmer, redmond, united States
So extending the minimum wage (ie a very low wage that very few Times readers would get out of bed for) is going to drastically hurt big business in the UK? Well, if the business leaders are so concerned why don't they cut their own wages and their own massive pensions. That should help.
Duncan, Glasgow, UK
As the minimum wage is the maximum for many, it's good to see it is a live issue for the unions. Much better to increase it to £10/hr and reduce the ridiculously complex employer subsidy of tax credits. There's going to be turmoil anyway, might as well sort out the basics.
colin, shrewsbury,
Come back Maggie... all is forgiven...?
TM, Dubai, UAE
Back to the future - it's 1975 all over again.
This is the mark of a government that has lost controlonce you start this kind of stuff, the folks you think you just satisfied come back for more.
Churchill said it - an appeaser feeds the crocodile hoping it will eat him last.
Good bye, Labour.
Jim, Milwaukee, USA
Hasn't the government been going on about how employers should follow restraint with pay rises this year so as not to push up inflation further? Wouldn't increasing the minimum wage do exactly that?
Craig, Maidstone,
So, because we are saddled with a weak and useless prime minister for whom we never voted in the first place and because Labour is broke we must now be dictated to by the unions who, as a minister pointed out, have even less of a mandate than Brown. This is what happens when Labour unravels.
Paul Owen, Birmingham, UK
This useless man is a complete disaster. He will wreck the country before he is finally sent packing back to the industrial graveyard Labour has created in South Fife. It will take decades to undo the economic mayhem he has created in his catastrophic term as Chancellor and PM.
John Cameron, St Andrews, Fife
David Frost, stop whining ... start encouraging your members to consider an equitable split of proceeds to your members employees and then Unions would have no ground to take up against your interests. The division of the spoils of industry have been skewed in your members favour for too long.
Joe, Geelong, VIC Australia
So this was Browns vision for Britain. Destruction of the economy through over taxation and unending strikes. He is an absolute disaster. Please Heavenly Father bring this corrupt no good, lieing government down before it destroys this nation.
Jas, Alders , UK
Old Labour has been told to shut-up and not rock the boat since '97. Now the boat has capsized, there is a decade of cave-ins to catch up on, and time is short. I suggest that the Times sets up a regular "Cave in" column, I am sure it will be as full as a bankruptcy court for the next 2 years.
Michael, Bay of Plenty, New Zealand
what the hell are 'labour's core values'? Prentice speak for 'we despise private sector flexibility because it undermines trades union power in the workplace'. It as nothing to do with protecting employee rights. Why don't unions set up businesses and create jobs and income for the workers?
BD MATHERS, birmingham,
Imagine if Brown didn't have to call an election at all, how things would be in 10 years' time.
Paul Francis, Brisbane, Australia
Its no surprise he caved in -what did he do on Europe? -yes you've got it CAVE IN. This is just following the example set by Tony Blair -remember him??
Peter H, Auckland,
With the Unions calling the shots does it really matter now whether Brown stays or goes? Maybe the current cabinet should just step aside and let the Union bosses take all Senior Ministerial posts. At least it would be an honest reflection of the way things are.
John Goode, Welwyn Garden City, UK
Does it matter who the captain of the Titanic is ?
The UK has hit the iceberg already
papko, St'Andrews, Fife
Isn't it nice to see that the current government is offering decisions on policy to the highest bidder?
Harry, London,
New Labour is finally unmasked for tax and spend, & weaken the British economy. Unemployment growth in the next two years will reflect their achievement. Perhaps the Great British people will finally bury the wretched party which has served only to emaciate Britain. Anyone for beer and sandwiches?
Tony, Newark,
Now they really are giving the "V" sign to the country and are just desperately trying to save their own skins.
The biggest mystery to me is why people still vote for them. Every Labour Government ends up creating debt, punitive taxation, high unemployment and untramelled bureaucracy.
Steve, London, UK
I hope it is a return to great labour values and a return to years in opposition, sorry Gordon but you are being shown up as weak now and in times of crisis this is not what we need. If you value this country you should go or call an election.
james, Southampton, England
I think is time to vote the entire Labour party out of office, not just Gordon Brown. A change of leader is too little too late. The bigger question is will a Conservative government reverse the policies of the Labour party agreed with Unions resulted from what I see it as blackmail.
d, london,
Wage restraint goes to the dogs. Thank God for that. Its about time employers raised the minimum wage bar and stopped discriminating against youth. Next we must stop abusing 16-20 year olds. These child workers are underpaid and deserve a comparable wage. Primark are angels in comparison!
Michael, London,