SIR Keir Starmer triggered a war of words with the unions as insisted he won’t risk economic stability to offer workers bumper pay deals.
The Prime Minister gave a stern warning to union members today that they can’t expect major salary hikes.
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His speech was the first time a Labour PM had addressed the Trades Union Congress for 15 years.
The intervention came as he faces huge pressure on axing winter fuel allowance for millions of pensioners – after agreeing inflation-busting pay to train drivers and junior doctors.
He was even greeted with a heckle of “tax the rich” ahead of a Commons vote today on cutting the winter fuel cash.
But speaking in Brighton, Sir Keir said: “I do have to make clear, from a place of respect that this government will not risk its mandate for economic stability, under any circumstances.
“And with tough decisions on the horizon – pay will inevitably be shaped by that.
“I owe you that candour. And I’ll tell you why. It’s because – as was so painfully exposed by the last government – when you lose control of the economy it’s working people who pay the price.
“That’s why I call now, as before the election, for the politics of partnership.”
But unions raised concerns about the Prime Minister’s tone in the address to hundreds of delegates.
Unite general Secretary Sharon Graham said: “It’s clear that Britain is better under a Labour government, however change must mean change. Tinkering around the edges is not enough.
“Labour must rule out austerity mark two and ensure we address the crisis in our crumbling public services and the lack of investment in British industry.”
GMB boss Gary Smith said: “We have seen some positive action from the new government, with above inflation pay awards already in place. But, GMB’s public sector members are clear: this must be a start and not a finish.”
PCS general secretary Fran Heathcote said: “We’ve had enough of being told about ‘tough decisions’.
“The real tough decisions are forced upon our members every day trying to make ends meet.
“Thousands of the government’s own workers earn just above the minimum wage and are having to rely on food banks.
“There will not be a stronger economy without boosting the incomes of working people.
“You cannot solve the problems caused by austerity with more austerity.”
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National Education Union Daniel Kebede said the PM “failed” to address their concerns in his speech.
He said: “After decades of division, austerity and underinvestment in public services, working people needed to hear that the direction of travel has changed under a Labour Government.
“The Prime Minister failed to do that today.
“Instead of setting out a positive vision to rebuild the economy and our society, he served up more of the same.
“Tough choices to be made, things getting worse before they get better and the burden to be borne by working people and their families.
However, Sir Keir also attacked militant left-wingers “stuck in the 1980s” as he insists the unions and business can work hand-in-hand to boost growth.
The Prime Minister vowed to put “country first, party second” in delivering for working people outlining such division is an ‘outdated trope’.
It comes as the government will introduce a shake-up of employment rights next month vowing to be both “pro-business and pro-worker” – saying the public don’t find the concept delusional.
The PM said: “We have the chance to deliver for working people: young people, vulnerable people, the poorest in society, because we changed the Labour party.
“So when I say ‘country first, party second’ – that isn’t a slogan. It’s the guiding principle of everything this Government will do.”
Speaking to delegates in Brighton, Sir Keir said: “So I make no apologies to those, still stuck in the 1980s, who believe that unions and business can only stand at odds, leaving working people stuck in the middle.
“And when I say to the public our policies will be pro-business and pro-worker, they don’t look at me as if I’m deluded, they see it as the most ordinary, sensible thing in the world.”
As part of proposed changes, flexible working will be the default with bosses allowing full-time hours to be compressed to four days if seen as reasonable.
Rights for workers from day one including sick pay, parental leave and protection for unfair dismissal is expected to be delivered.
Changes will also allow workers ‘the right to switch off’ allowing staff to ignore emails and work calls.
He added that there is a “mood of change” in the business world as he prepares to introduce workers’ rights changes.
He says there is a “growing understanding of the importance of good work and the shared self-interest that comes from treating the workforce with respect and dignity”.
He added: “The productivity gain of fairness which is an opportunity to be grasped.”
But the Tories hit out saying the “howls of opposition” to his measures reveal the plans are unworkable and will cost jobs.
But shadow Business Secretary Kevin Hollinrake said he was “just doing his union paymasters’ bidding, raising taxes and drowning businesses in a tidal wave of new French-style rules and red tape”
He added: “Labour must change course now or they risk rewiring the economy back to a time where union bosses held the country to ransom.”
