Trade unions vow to fight government over strike legislation to ‘keep Britain moving’ during strikes

Published

2 years ago

October 16, 2022

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The government is pressing ahead to introduce legislation which will require transport workers to run a minimum service when strikes are taking place.

It comes after commuters have been plagued by months of travel chaos caused by industrial action by railway workers, who are calling for better pay, working conditions and job security.

But trade unions have insisted the proposals will undermine workers’ right to strike and have promised to defend their members.

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The legislation is part of a pledge made by the prime minister to introduce such a bill within the first 30 days of parliament sitting.

Liz Truss is aiming to ensure transport services, including rail, tubes and buses, cannot be completely shutdown when workers go on strike.

“The government stood on a manifesto commitment to introduce minimum service levels. As we have seen only too often in recent months, it is wrong that strikes are preventing hard-working people and families up and down the country from getting to work, doctors’ appointments and school,” a government source said.

“That is why we are introducing this legislation, to keep Britain moving, ensure people can get to work, earn their own living and grow the economy.”

The minimum service levels law is expected to come into force next year.

Similar legislation already exists in some western European countries, such as France and Spain, but unions have criticised the move as being “unworkable”.

‘Unfair, unworkable and incompatible’

TUC general secretary Frances O’Grady said the proposals “undermine the right to strike” and called for the government to “stop blocking negotiations” to allow workers and unions to reach an agreement

“Truss and her ministers want to make it harder for workers to win better pay and conditions. It’s a cynical distraction from their own failings,” he said.

“The changes are unfair, unworkable and incompatible with our international commitments. Trade unions will oppose them every step of the way.”

Rail, Maritime and Transport union general secretary Mick Lynch said the restrictions will only make it “more difficult to reach a negotiated settlement” in the current rail dispute.

“We already have the most draconian and restrictive anti-trade union laws in Western Europe,” he said.

“Working people are fed up with the government trying to make them scapegoats for the country’s problems.”

Mick Whelan, general secretary of the train drivers union Aslef, described the idea as “stupid”, adding that it shows Ms Truss wants to make industrial action “ineffective”.

Business

Labour lures BlackRock chief Fink to flagship investment summit

Published

17 hours ago

September 21, 2024

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Labour lures BlackRock chief Fink to flagship investment summit

The boss of BlackRock, the world’s largest asset manager, will attend the new government’s flagship investment summit next month amid suggestions it is struggling to attract large numbers of high-calibre international business figures.

Sky News has learnt that Larry Fink, BlackRock’s chairman and chief executive, will attend the 14 October gathering, which will be held at a prominent central London venue.

Mr Fink, who was also present at a similar event organised by the Conservatives in 2021, will be among the most influential global bosses to attend.

Among the others who have agreed to come are Margherita della Valle, the Vodafone chief executive, Hemant Taneja, CEO of technology investor General Catalyst, and John Graham, who runs the Canada Pension Plan Investment Board, one of the world’s largest pension plans, Sky News understands.

David Solomon, boss of the Wall Street bank Goldman Sachs, will also be there.

The emergence of some of those attending comes as Labour battles suggestions that it will struggle to draw the 300 industry leaders it pledged in early August.

Sources said fewer than 150 companies had confirmed their bosses’ attendance, with just over three weeks until the event takes place.

Roughly 100 ministers, metro mayors, officials and other government-connected figures are also expected to be present.

One insider insisted this weekend that “quality is more important than quality” and said the government remained on track to have 300 people at the summit.

That figure may ultimately be reached but comprising both the government and private sector delegations.

They questioned, however, why a formal numerical target had been set publicly when the summit was being staged at such short notice.

“It’s made us a hostage to fortune,” said one.

The event, which Labour vowed during the general election campaign to hold within 100 days of coming to power, is being seen as a key test of its economic credibility.

Whitehall officials are keen to announce investment deals worth tens of billions of pounds on 14 October, although whether they will hit this target is unclear.

Some corporate bosses, including the heads of Blackstone and JP Morgan, have declined the invitation, citing diary commitments.

Those two companies are expected to send alternates to the event, with Blackstone being represented by Lionel Assant, one of its most senior private equity executives.

Until recently, the government had insisted that only CEOs would be able to attend, with their invitations not transferable, according to insiders.

Aviva, Barclays, BT Group and HSBC Holdings will be among the FTSE-100 companies represented by their CEOs.

The business secretary, Jonathan Reynolds, told the Financial Times this weekend that details of the government’s industrial strategy would be set out before the investment summit.

That is expected to include the appointment of a chair for its Industrial Strategy Council, although it faces going into the event without an investment minister being appointed.

The summit will also be politically delicate given that it comes just a fortnight before Rachel Reeves, the chancellor, delivers her first Budget – with higher taxes affecting many of those attending on October 14 expected to feature prominently.

The Department for Business and Trade declined to comment, while none of the companies contacted by Sky News would comment.

Business

Trio of property giants oppose Cineworld rent cuts plan

Published

2 days ago

September 20, 2024

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Trio of property giants oppose Cineworld rent cuts plan

A trio of property giants has lodged a protest against a radical financial restructuring that will see Cineworld imposing steep rent cuts on its landlords.

Sky News has learnt that British Land, Landsec and Legal & General Investment Management all voted against the cinema operator’s restructuring plan this week.

Cineworld has confirmed plans to close six of its UK multiplexes, but documents circulated to creditors show almost 50 others are in categories requiring landlords to agree to revised rent deals in order to ensure their long-term viability.

Although they carry significant influence in the commercial property sector, the trio’s protest will have no impact on the outcome of the company’s proposals, since its owners are now also among its largest creditors, meaning they can effectively force the deal through.

According to documents sent to creditors during the summer, 33 sites – categorised as Class B – “require a reduction of rent to ERV [Estimated Rental Value] Rent in order to place the sites on a viable long-term footing”.

A further 38 of Cineworld’s cinemas would be unaffected, while another 16 Class C1 and C2 leases require reductions to either turnover rent or zero rent in order to render them financially viable.

The documents added that the company did not have sufficient funding to meet a quarterly rent bill on June 24 of £15.9m.

“The UK group did not have sufficient liquidity to make the June 2024 Rent Payment and required further funding from the US Group to meet this liquidity need.

“Absent this funding, the UK Group would have been insolvent on a cashflow basis.”

Cineworld is being advised by AlixPartners.

Other cinema operators are now poised to step in to take over some of Cineworld’s sites.

The company trades from more than 100 locations in Britain, including at the Picturehouse chain, and employs thousands of people.

Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier.

Its multibillion-dollar debt mountain led it into crisis, though, and forced the company into Chapter 11 bankruptcy protection in 2022.

It delisted from the London Stock Exchange last August, having seen its share price collapse amid fears for its survival.

Cineworld also operates in central and Eastern Europe, Israel and the US.

Business

Consumer confidence slumps following warnings of ‘tough choices’ in budget ahead

Published

2 days ago

September 20, 2024

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Consumer confidence slumps following warnings of 'tough choices' in budget ahead

A long-running measure of consumer confidence has slumped to levels last seen at the start of the year following warnings of “tough choices” ahead in the looming budget.

GfK’s Consumer Confidence Index fell seven points in September to minus 20, with significant drops in predictions for personal finances and the general economy over the coming year.

The report’s authors suggested it was “not encouraging news” for the new government, which has made growing the economy its top priority.

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But within weeks of taking the post of chancellor, Rachel Reeves – followed by prime minister Sir Keir Starmer – moved to warn of a legacy £22bn “black hole” in the public finances and said it would result in a painful budget on 30 October.

Among measures already taken include cuts to winter fuel payments, leaving up to 10 million pensioners up to £300 worse off, and inflation-busting public sector pay settlements.

Tax rises and spending cuts are widely expected in next month’s statement to MPs though The Times reported on Friday that a decision by the Bank of England to slow a programme of loss-making bond sales would leave Ms Reeves £10bn better off than she had anticipated.

It added that she was still expected to push forward with her budget plans anyway as a signal of her commitment to fiscal discipline.

The latest snapshot on the public finances, released by the Office for National Statistics (ONS) on Friday showed net borrowing of £13.7bn during August.

Its chief economist, Grant Fitzner, said: “Borrowing was up by over £3bn last month on 2023’s figure, and was the third highest August borrowing on record.

“Central government tax receipts grew strongly, but this was outweighed by higher expenditure, largely driven by benefits uprating and higher spending on public services due to increased running costs and pay.”

Consumer spending accounts for around 60% of the UK economy.

Data released separately on Friday showed a 1% rise in retail sales volumes during August in the wake of weakness, mostly blamed on poor weather, over the previous couple of months.

The ONS said that the increase was driven by supermarket sales, as demand for BBQ food and drinks rose due to the arrival of some sunshine over the key holiday month.

It also credited discounting by clothing retailers.

The data chimes with the latest updates from big retailers, including Next and B&Q’s owner, which have spoken of weak demand for so-called big ticket items such as home furnishings and kitchens respectively.

GfK’s closely-watched survey showed expectations for the general economy over the next 12 months fell by 12 points to -27, while the forecast for personal finances was down nine points to -3.

Commenting on its key measures, including the headline figure, consumer insights director at GfK Neil Bellamy said: “These three measures are key forward-looking indicators so despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new government.”

He added: “Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers’ willingness to spend.

“Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the budget decisions on October 30.”