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Paul Nowak says Labour should “resist the out of touch, out of date siren voices from the 90s”

• Business and Tory briefings against strengthening workers’ rights are “exactly the same” arguments used against establishing a minimum wage, says TUC head 
• TUC leader calls for “new political consensus on tackling scourge of insecure work” 

The TUC General Secretary Paul Nowak yesterday (Wednesday) criticised short-sighted elements of the business community and the Conservatives for using the same “doomsday” arguments against strengthening workers’ rights as they did against establishing a national minimum wage. 

Speaking at a Resolution Foundation event on the 25-year anniversary of the minimum wage - alongside the CBI’s Rain Newton-Smith and Conservative minister Kevin Holinrake – Nowak urged Labour to “resist the out of touch, out of date siren voices from the 90s”. 

The TUC leader called for a “new political consensus on tackling the scourge of insecure work.” 

Highlighting previous business and Tory opposition to the minimum wage, Paul Nowak yesterday said: 

“Britain was full of employers and employers' organisations predicting the minimum wage would cause mass unemployment and economic ruin. And those concerns were echoed by the Conservative parliamentary party. 

“But the minimum wage was introduced with no loss of jobs and no economic meltdown.  

“And in recent years it’s gone up substantially with no negative impact on jobs. 

“History proved all those doomsday warnings emphatically wrong. And I think there are lessons there for us all. 

“Sometimes we have to face down those who say no to measures that improve the lives of working people.” 

Calling for a “new political consensus on tackling the scourge of insecure work”, Paul Nowak yesterday said:  

“The New Deal is the right thing to do – not just morally, but economically.  

“It will establish a level playing field and stop decent employers from being undercut by the cowboys.  

“It will make sure that everyone has a secure job they can build a life on.  

“Just like the minimum wage, good employers have nothing to fear.  

“But that hasn’t stopped some employers' organisations warning of an economic apocalypse if Labour’s New Deal was made law.  

“The arguments are exactly the same as they were 25 years ago.  

“They claim: ‘It will cost jobs. Put employers out of business. Reduce flexibility.’ 

“They were wrong then, and they are wrong now. That’s why Labour should resist the out of touch, out of date siren voices from the 90s. 

“Now is the time to forge a new political consensus on tackling the scourge of insecure work and deliver the New Deal in full.” 

Highlighting the need for an economic reset, Nowak added: 

“Our so-called flexible labour market has failed.  

“It’s led to massive rewards at the top and stagnant wages for everyone else.  

“It’s unleashed epic insecurity and in-work poverty and actively undermined our productivity.  

“So, it’s time for a new approach and for the New Deal for workers that Britain needs.”  

Editors Note’s

Employer opposition to minimum wage: 

The CBI warned that the minimum wage could “result in rising prices, business closures and unemployment” and that it would “undermine flexibility and was a poor way to tackle poverty." 

Ruth Lea, then head of policy at the Institute of Directors, said in 1998: “Regionally there will be big difficulties with the minimum wage, with lower paying areas facing tougher problems implementing it. Even a minimum wage at this relatively modest rate will have an effect on unemployment and will have an effect on inflation."  

Peter Ibbetson, then head of Nat West Bank's small business services said in 1998: “The minimum wage will create an uneven playing field. We are going to see good small businesses squeezed out through no fault of their own." 

The North East Chamber of Commerce said that 50% of employers would cut their workforce  

The National Federation of Retail Newsagents said half the jobs in their industry would go.   

Conservative opposition to the minimum wage: 

In 1991 then Secretary of State for Employment Michael Howard claimed that the minimum wage would destroy between 750,000 and 2 million jobs. 

In 1997 then Shadow Business Secretary John Redwood said: “The Labour party is trying to kick away the ladder of opportunity for many people who wish to climb it. The policies that it espouses will destroy jobs.”   

In 1997 Damien Green described the minimum wage as “immoral because it deludes people into thinking that it is an attack on poverty. It will not reduce poverty.” 

About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.5 million working people who make up our 48 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living. 

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