Angela Rayner's workers' rights Bill is set to bolster unions, harm jobs and cripple growth, employers have warned, in a fresh setback for Labour's attempt at hauling Britain's economy upwards.
UK firms say the Government has taken an "irreversible" step towards a more business-hostile Britain through fresh changes to the Employment Rights Bill - which include extending a ban on zero-hours contracts to cover agency workers and giving a new enforcement body more powers.
They also warned that Ministers had turned down almost all of their pleas to loosen the rules - and have said Labour's Bill will push businesses into a "thicket of regulation" which would "undermine the Government's own push for growth".
Under Rayner's Bill, union members will now have to pay into political funds - which contribute millions of pounds to Labour - unless they opt out in writing.
Alongside that, Business Secretary Jonathan Reynolds has said that unions would no longer have to write to members every 10 years to check that they were still comfortable donating.
The Bill includes a slew of more measures, too, including the establishment of the Fair Work Agency - which will enforce employee rights and fine businesses if breaches occur.
Craig Beaumont, the Federation of Small Business's executive director, said: "The announcements today undermine the Government's own push for growth.
"Ministers are now starting to run out of time to fix the Bill, and show they have the back of one million small business employers."
LABOUR BATTLES BUSINESS - READ MORE:
It has also come under fire from Shadow Business Secretary Andrew Griffith, who warned it would "take Britain back to the 1970s".
Reacting to the Deputy Prime Minister's latest round of amendments to the Bill, Griffith said: "Labour's jobs-killing Bill will take Britain back to the 1970s.
"Only business creates growth. But by refusing to listen to businesses and bending the knee to the unions, Labour has showed whose side they are on."
Meanwhile, unions have hailed the changes.
Unison general secretary Christina McAnea said it was "what working people and decent employers have been waiting for", while GMB counterpart Gary Smith said it was "far from perfect" but a "massive step forward".
While the TUC's Paul Nowak said the "common-sense reforms" would "deliver better pay, security and respect for millions of workers up and down the country".
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UK firms say the Government has taken an "irreversible" step towards a more business-hostile Britain through fresh changes to the Employment Rights Bill - which include extending a ban on zero-hours contracts to cover agency workers and giving a new enforcement body more powers.
They also warned that Ministers had turned down almost all of their pleas to loosen the rules - and have said Labour's Bill will push businesses into a "thicket of regulation" which would "undermine the Government's own push for growth".
Under Rayner's Bill, union members will now have to pay into political funds - which contribute millions of pounds to Labour - unless they opt out in writing.
Alongside that, Business Secretary Jonathan Reynolds has said that unions would no longer have to write to members every 10 years to check that they were still comfortable donating.
The Bill includes a slew of more measures, too, including the establishment of the Fair Work Agency - which will enforce employee rights and fine businesses if breaches occur.
Craig Beaumont, the Federation of Small Business's executive director, said: "The announcements today undermine the Government's own push for growth.
"Ministers are now starting to run out of time to fix the Bill, and show they have the back of one million small business employers."
LABOUR BATTLES BUSINESS - READ MORE:
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It has also come under fire from Shadow Business Secretary Andrew Griffith, who warned it would "take Britain back to the 1970s".
Reacting to the Deputy Prime Minister's latest round of amendments to the Bill, Griffith said: "Labour's jobs-killing Bill will take Britain back to the 1970s.
"Only business creates growth. But by refusing to listen to businesses and bending the knee to the unions, Labour has showed whose side they are on."
Meanwhile, unions have hailed the changes.
Unison general secretary Christina McAnea said it was "what working people and decent employers have been waiting for", while GMB counterpart Gary Smith said it was "far from perfect" but a "massive step forward".
While the TUC's Paul Nowak said the "common-sense reforms" would "deliver better pay, security and respect for millions of workers up and down the country".
Find Out More...