Union Workers Demand Action Amid Labour Instability

Union bosses are capitalising on the turmoil across the Labour party leadership to push for another major workers’ rights shakeup as Prime Minister Keir Starmer tries to fend of a rebellion from the left.

The government is being urged to go beyond its manifesto commitments and hand all workers the right to guaranteed hours – a major escalation from Labour’s pledge to axe zero hour contracts.

New changes set to be introduced next year will force employers to offer eligible workers guaranteed hours reflecting their standard work pattern over a “reference period” expected to be around 12 weeks. The new law will be a major shakeup for over a million workers who are on zero hour contracts.

The union lobbying efforts – as reported by the Telegraph – come as speculation mounts that former deputy Prime Minister is gearing up for a leadership bid.

Rayner, who is considered one of the main architects of the workers rights bill, is reported to have amassed a war chest of £1m in the event of a leadership challenge.

Business confidence hit by workers’ rights push

Labour’s Employment Rights Bill has become one of the defining areas of contention for the government as it attempts to build its a relationship with businesses.

The London Chamber of Commerce and Industry said in January business confidence had plummeted to the lowest ever level in its quarterly economic survey of 500 business chiefs across the capital.

The group warned that the “punitive” workers’ rights reforms were making bosses think twice before hiring more staff.

The survey showed that just a quarter of London businesses believed the local economy would improve in 2026 while the number of firms expecting an improvement in the national economy was lower.

The government U-turned on its manifesto pledge to hand all new staff protection from unfair dismissal from day one in November following fierce political resistance from the House of Lords.

Under revised proposals announced by the Department for Business and Trade (DBT) on Thursday, the protection will now come into force after six months of an employee starting at a new job.