The London Times September 9 1996 BLAIR HEADS FOR CLASH WITH TUC ON NO-STRIKE PACKAGE By Philip Bassett and Philip Webster RADICAL plans to prevent a Labour government being derailed by a wave of public sector pay strikes are to be put forward by the Labour leadership tomorrow in a move that threatens a confrontation between Tony Blair and the unions. Union leaders gathering in Blackpool yesterday on the eve of the TUC conference dismissed the idea of compulsory binding arbitration in pay disputes, one idea likely to be floated in a speech by David Blunkett, the Shadow Employment Secretary. Labour leaders are planning to consult employers and unions over the coming months on ways of resolving public sector pay disputes, the issue on which the last Labour Government lost office in 1979. Although union leaders last night cautiously welcomed the principle of action to avoid strikes, they dismissed compulsory arbitration which many see as a backdoor way of banning strikes. Labour sources confirmed that the party will advance a number of proposals for consideration, including the use of compulsory binding arbitration, as well as increasing the role of the official conciliation service Acas and the possible creation of more review bodies to fix pay in line with those operating for teachers, nursesand others. Speaking on Sky TV, Mr Blunkett said it was important to try to remove trade union and industrial relations issues from the political battleground, and to modernise Labour's approach to them. "Let's look to the future at the kind of relationship and the kind of labour markets we are dealing with, rather than the factory-gate megaphones." Mr Blair will address a private dinner of the TUC's governing General Council tomorrow, and Mr Blunkett's speech will come as postal workers' leaders meet to decide on more strikes and a day ahead of the next round of strikes by conductors in some regional rail companies on Wednesday. Labour's proposals prompted a mixed range of reactions. Ken Jackson, general secretary of the right-wing AEEU engineering workers' union, called on the TUC to offer to an incoming Labour government binding arbitration as a way of avoiding strikes, suggesting the establishment of fast-track arbitration appeal units to which employers and unions involved in disputes would present their cases. John Edmonds, of the GMB general union, criticised the proposal for compulsory arbitration as unworkable in practice because it would give control of a key element of government spending to third parties. John Monks, TUC General Secretary, welcomed talks to avoid disruption through strikes. He also urged Labour to promote more positively its proposals on new employment rights and res ponsibilities. Rodney Bickerstaffe, general secretary of the biggest union, Unison, whose members are key public sector workers, insisted on the validity of strikes, saying: "The strike weapon is not outmoded." Bill Morris, the TGWU transport union leader, called for a "new settlement" but was sceptical about the value of compulsory arbitration.