● For the labour market, the Labour government has two stated aims: to re-skill the UK workforce and at the same time to retain the flexibility which has been built up over the 1980s and 1990s. There is evidence that these two aims may be incompatible, as flexibility seems to be a disincentive for employers to train workers. Government data show that workers on part-time or temporary contracts are less likely to receive work related training than those on full-time or permanent contracts.
● The Fairness at Work White Paper was published in May 1998 and restores some of the rights lost by the trade unions over the previous two decades including: companies with more than 20 employees will be forced to recognise a trade union if the majority of its workforce wishes it; employees will be able to bring union representatives to grievance hearings; it will be illegal for employers to discriminate against employees for being members of a trades union; employees will be able to claim unfair dismissal after one year’s service instead of two. Although this is a reversal of the approach towards trades unions, there are some rights which have not been reinstated. There will be no return to the closed shop, strikes without secret ballots or mass picketing.
● The Welfare to Work programme pledged to take 250,000 under-25-year-olds off benefit and place them into work by offering employers £60 per week for each job given to an individual under the age of 25 years who had been unemployed for more than six months. A similar New Deal for older people who have been unemployed for two years or more started in June 1998.
● The New Deal for lone parents was launched in October 1998 which offers advice, training and childcare.
● The UK has now signed up to the Social Chapter of the EU, although not all of the directives have been enacted at the time of writing.
● A national minimum wage has been accepted (see the following mini case).
● A new definition of full employment has gained widespread acceptance which means employment opportunity for all rather than employment for all. The Welfare to Work programme is aimed at ensuring ‘full employability’ – that individuals remain in touch with the labour market and have saleable skills. It is argued by many that increased employability will lead to increased employment through increased skill levels of the workforce.