EXCLUSIVE: Usdaw General Secretary writes to PM ‘frustrated’ regarding changes to Employment Rights Act

LabourList has seen a letter addressed to the Prime Minister, written by General Secretary of Labour affiliated union Usdaw Joanne Thomas, that demonstrates concerns the government is ‘set to fail to fulfil its manifesto commitment on guaranteed hours’ in the implementation of the Employment Rights Act.

LabourList reached out to Usdaw, where a source confirmed that the letter is authentic.

Thomas outlined in the letter to Sir Keir Starmer, that she has received information suggesting the government will no longer implement the Employment Rights Act as promised in its manifesto – opting to no longer commit to a policy that everyone receives the right to a contract which reflects the number of hours they normally work.

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This is due to the inclusion of a minimal hours threshold, that Thomas’ letter suggests would not only fall short of the Government’s initial commitments, but may ‘actually have unintended consequences of making working hours less secure than they are now, for the most vulnerable workers.’

The letter suggests that Thomas was anticipating an option for full-time workers to be included in the right as part of an upcoming consultation, but has now come to believe this measure will not be included in the consultation or considered by the Government.

The letter asks four questions for the Prime Minister to answer:

“1. Which Department is responsible for the decision not to include full-time workers in the consultation on guaranteed hours?

2. What legal advice has the Government received on this matter?

3. If legal advice which prevents the Government from fulfilling its manifesto commitment has been received, when was this received and why has it not been shared with unions?

4. What steps will you take to resolve this matter so that Usdaw can regain trust and confidence in the Government to deliver the Plan to Make Work Pay?”

Thomas states that the matter of guaranteed hours contracts goes ‘right to the heart of the Government’s make work pay agenda’ in addition to the Prime Minister’s ‘integrity’, before outlining that Starmer had spoken at Usdaw’s conference in 2024 and committed to the membership that the Employment Rights Act would not see these measures watered down.

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The letter concludes by saying that in order to preserve the relationship between Usdaw and the Government, Thomas requires ‘full confidence that the Chancellor and the Secretary of State for Business and Trade will deliver the Plan to Make Work Pay’ requesting that the Prime Minister intervenes due to a ‘lack of clarity and accountability across departments’.

The letter was also CC’d to other union leaders, the Chancellor of the Exchequer, the Secretary of State for Business and Trade, the Parliamentary Under-Secretary of State for Employment Rights and Consumer Protection, and the Deputy Leader of the Labour Party.

LabourList has reached out to Number 10, HM Treasury and the Department for Business and Trade for comment.

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Full letter text of USDAW letter:

‘Dear Keir

Employment Rights Act Implementation

I write in my capacity as Usdaw General Secretary. As you are aware, Usdaw has consistently been a supportive advocate of this Government, and the Employment Rights Act in particular. It is extremely frustrating that I now find myself in the position of having to write this letter and seek your personal intervention to resolve a major issue with implementation. Unfortunately, I have had information which leads me to believe the Government is set to fail to fulfil its manifesto commitment on guaranteed hours contracts.

As you will be aware the manifesto said that everyone would have the right to a contract that reflects the hours people normally work. We have been concerned since the first publication of the Bill that the inclusion of minimum hours threshold would fail in meeting the Government’s commitments and, even worse, would actually have unintended consequences of making working hours less secure than they are now, for the most vulnerable workers.

I had raised this issue repeatedly, at every level of Government, including with yourself. I had a clear expectation that the forthcoming consultation would include an option for full-time workers to be included in the right. I have since come to understand that this will not be included and that the Government has no intention of even considering it as an option. I have a number of questions that I am seeking an urgent response from you:

1. Which Department is responsible for the decision not to include full-time workers in the consultation on guaranteed hours?

2. What legal advice has the Government received on this matter?

3. If legal advice which prevents the Government from fulfilling its manifesto commitment has been received, when was this received and why has it not been shared with unions?

4. What steps will you take to resolve this matter so that Usdaw can regain trust and confidence in the Government to deliver the Plan to Make Work Pay?

Unfortunately, this issue does not sit in isolation. I understand that a number of other unions have concerns about implementation of other elements of the Act, which they will no doubt contact you about separately. Usdaw will of course support all of the TULO unions in seeking full delivery of the Government’s Plan to Make Work Pay.

On guaranteed hours specifically, this was the most important and potentially transformative new right within the Act for Usdaw members – on this I have been extremely clear with you and the whole of the Government. This goes beyond technical implementation and right to the heart of the Government’s Make Work Pay agenda. Beyond that, it goes to the heart of our working relationship, and your integrity as Prime Minister.

You spoke at our conference in 2024, and told our members that there would be no watering down of the New Deal. Our members listened to that message and they believed it. They campaigned for you, they voted for you, and they expect you to keep your promise. As things currently stand I cannot in good faith tell those members that you will do so. I have a responsibility to our members to give a clear eyed assessment of what any Government is delivering, or failing to deliver, for them.

I had believed that the Government was genuinely open to meaningful consultation on guaranteed hours. Indeed, Justin Madders, then Parliamentary Under-Secretary of State for Business and Trade is recorded in Hansard as stating on 4 December 2024 “There is an argument that anyone below full-time hours—again, there is a debate about what that means—could be within scope. That is why we are holding a consultation, to enable us to understand exactly who will be affected—whether we are trying to catch everyone or target the people who suffer the greatest insecurity of work. That is the purpose of the consultation.”

In order to preserve our ongoing relationship, I need to have full confidence that the Chancellor and the Secretary of State for Business and Trade will deliver the Plan to Make Work Pay. My attempts to seek assurances from your Government have led to frustration at what appears to be a lack of accountability and clarity across departments. I am, therefore, asking you to step in to resolve the situation and show leadership, as a matter of urgency.

I will be available for a call at your earliest convenience.

Yours sincerely

JOANNE THOMAS
General Secretary

CC:

Dave Ward, General Secretary, CWU
Steve Wright, General Secretary, FBU
Gary Smith, General Secretary, GMB
Roy Rickhuss, General Secretary, Community
Chris Kitchen, General Secretary, NUM
Sharon Graham, General Secretary, Unite
Naomi Pohl, General Secretary, Musicians’ Union
Maryam Eslamdoust, General Secretary, TSSA
Dave Calfe, General Secretary, Aslef
Andrea Egan, General Secretary, Unison
Rachel Reeves, Chancellor of the Exchequer
Peter Kyle, Secretary of State, Department of Business & Trade
Kate Dearden, Minister of State, Department of Business & Trade
Lucy Powell, Deputy Leader‘

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