http://www.guardian.co.uk/politics/0,6957,,00.html

  Brown runs into a barrage of criticism from unions

Seamus Milne and David Gow
Wednesday September 13, 2000

Union leaders yesterday lashed out at Gordon Brown for failing to act over
"the disaster" overtaking British manufacturing and what one called "idiotic
ideas" about working harder and "half-baked lectures about effort."
As the Chancellor sat on the TUC conference podium GMB general union leader
John Edmonds hit back at yesterday's report of Mr Browns call for a national
productivity drive and told him: "Gordon, you just have to do something
about the monetary policy committee" of the Bank of England.

The committees decision about interest rates lay behind the high pound's
impact on manufacturing jobs, he declared: "It should spend less time
fretting about inflation and more time responding to the needs of producers
and ex porters".

"Why cannot we have at least one member who works in manufacturing industry,
or knows about manufacturing industry, or at least lives in a town that
understands the importance of manufacturing industry." He asked, demanding
treasury action to reduce the value of sterling.

Before Mr Brown rose to address the congress, Mr Edmonds said he had read in
the papers - a clear reference to the chancellor's trailed productivity
appeal - that one solution to the manufacturing crisis was that British
workers should work harder.

The union leader said that whoever thought up "these idiotic ideas" should
go and see women workers operating sewing machines on piece rate, who were
desperate to increase their productivity but instead face the sack.

He was echoed by Sir Ken Jackson, general secretary Amalgamated Engineering
& Electrical Union, who told Mr Brown that the over-valued pound was
"pricing British manufacturing out of the market, wiping out productivity
gains overnight and prevent the investment needed to compete in the Global
Economy."

The Chancellor, who used his speech to insist that there would be no
"short-term lurches" in tax policy in response to current protests, was at
pain to defuse union criticism by emphasising that he understood their
concerns about the exchange rate and manufacturing and by down playing his
trailed demands for wage restraint.

"We will continue to do more to support manufacturing." He pledged, wooing
his audience with the prize of "full employment sustained for a generation,"
built on growth and pro ductivity.

He appealed to unions and employers to work together with government to
close the productivity gap with Britain's competitors, arguing that this was
the foundation on which the country could "achieve full employment, abolish
child and pensioner poverty, build world class public services in education
and health."

But there could be "no short -term lurches in spending policy or tax policy,
no irresponsible spending increases or inflationary pay rises that put youth
jobs at risk, no quick fixes or soft options, that would put long-term
stability, public services and our policy for full employment at risk."

Mr Brown used his first speech as chancellor to the TUC to praise the
traditions and achievements of the labour movement, hailing the trade union
pioneers as "idealists not dreamers" who "knew it is easier to take your own
share that fight for everyone to have a fair share".

But his reiteration of plans for an increase in the minimum wage and promise
the ensure that pensioners gained more from Britain's rising prosperity left
TUC delegates demanding more details.

Union leaders were far less critical after they had heard the chancellor,
but never the less wanted to know more. Rodney Bickerstaffe, leader of the
public service union Unison, said he would have like to have heard more
about what the chancellor planned to do about public sector pay and union
concerns about the creeping privatisation of public services and need to
restore the pension-earning link.

Mr Edmunds said he hoped Mr Brown remarks about training opened the way for
legally binding obligations on employers to invest in skills, but ruled out
the chancellors suggestion that unions might move away from annual pay
bargaining to promote economic stability.

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