Download a copy of the Institute Of Employment Rights Special Briefing on the Government’s Employment. A big step forward, but bigger steps are still required.
By Lord John Henry KC and Professor Keith Ewing
Category: Publications & Websites
Announcement on Freeports was “a cock – up” says Downing Street
The Government’s announcement that Chancellor Rachel Reeves would announce five new Freeports in the budget was a “communications cock up” Downing Street now says.
On October 25th Starmer (in Samoa for the Commonwealth Heads of Government Summit with the King) and his aides announced the move as part of its effort to drive economic growth.
The Government said it would set out plans to establish more low tax zones plus an ‘investment zone’ in the East Midlands where businesses will benefit from tax breaks such as lower tariffs and customs creating thousands of new jobs and ‘turbo charging’ the economy.
Between 1984 and 2012 existing Freeport’s made little impact on the economy. Unions warned they would suck many companies in to the low tax, union free zones creating low paid precarious jobs and stable jobs would be lost at established businesses.
They were eventually phased out by David Cameron’s government only for Rishi Sunak to re-establish them as chancellor as a way of shoring up trade following the Brexit disaster.
From 2021, eight new Freeports opened in England with two each in Scotland and Wales with little success and minimal interest from business and industry.
Starmer’s announcement said Freeports “would have this government’s stamp on them” despite their failure. He said existing Freeports were “working well” but Labour would make them work better.
The announcement received a frosty reception from business and unions. Unions dusted off their briefings on Freeport’s and with the TUCs comprehensive analysis published in 2020 (region by region) handily still on their website copies soon found their way on to the phones of supportive trade union MPs.
A government official blamed the time difference: “the whole thing was snarled up by the fact that Starmer and his aides (who’d trailed the news) were 13 hours ahead in Samoa” and said it “comms cock up,”
Government officials now say Rachel Reeves will merely be giving the go-ahead to new customs posts at five of the existing Freeports. They say they are still baffled as to how Downing Street managed to make the announcement of customs posts into five entirely new Freeports – with the ringing endorsement of the PM.
It may be somebody pointed out that OBR said in 2021 “that tax breaks in England’s Freeports would cost the government £50m a year and that their impact on GDP was likely to be so small it would be “difficult to discern even in retrospect” – as well as union anger on the question of workers rights and union recognition despite the PMs spokesperson saying (almost as an after thought) that “where necessary the government will make improvements to the Freeport programme” and that the Employment Rights Bill would help safeguard workers’ rights.
Despite recent changes this latest “mis-communication” only creates an air of distrust and reinforces the view that Downing Street’s communications and media operation is a shambolic, and the gung-ho approach by officials and Labour staffers (using Johnsonian ‘boosterism’ language) trying to smuggle policies through thinking we won’t notice does not work.
The Right To Strike: The Heart Of Worker Empowerment
By IndustriALL Global Union General Secretary, Atle Høie
The right to strike and the right to organize are fundamental pillars of worker empowerment, enshrined in International Labour Organization (ILO) Conventions 87 and 98. These rights are essential for workers and unions to protect their interests and assert their power against the enormous economic and political influence of employers. Without the ability to strike, workers are left defenseless in wage negotiations, working conditions, and basic workplace dignity.
At the core of these protections is the right to organize. This right allows employees to unite and advocate collectively on shared issues.
However, in some parts of the world union discrimination is widespread. Even companies that engage in collective bargaining resist unionization efforts where they can, undermining the fundamental rights of their workers. A striking example is the recent action by IndustriALL affiliate United Auto Workers (UAW), which filed federal labour charges against former US President Donald Trump and Tesla CEO Elon Musk.
The charges accuse them of illegally threatening and intimidating workers who stand up for their rights by engaging in strikes. This case underlines the ongoing global struggle for labour rights, even at companies with significant international influence. Tesla, a company notorious for its anti-union stance, employs over 120,000 workers worldwide yet refuses to engage in collective bargaining.
Attempts to organize within Tesla have been met with fierce resistance, with Elon Musk himself threatening retaliation against workers who attempt to unionize. This has led to significant tensions with labour unions, particularly in Sweden. Swedish union IF Metall became the first to take action against Tesla’s anti-union practices, initiating industrial action on 27th October 2023 in 12 Tesla-owned garages and expanding to 20 more locations. Despite brief negotiations in November last year, Tesla remained steadfast in its refusal to sign a collective agreement. The company’s management has dismissed labour rights, arguing that they are not part of “the company’s concept.” Elon Musk has publicly criticized unions, claiming they create division and negativity within companies. IndustriALL general secretary, Atle Høie, says: “Elon Musk’s business model is one that is designed to avoid respecting human rights. We must defend workers and the rights that they have fought so long for. We stand with the UAW in their fight.”
This conflict is not just about Tesla and its workers—it is a symbol of the broader battle for labour rights and the critical importance of the freedom to organize and strike. Without these rights, workers around the world remain vulnerable to exploitation and injustice.
The right to strike is not just a tool—it is a crucial defense that ensures workers can stand up for themselves and each other.