7/09/2004

The estrangement of Britain's Labour party and its Labour movement continues: About 750,000 manufacturing jobs have been lost since Labour came to power, a Trades Union Congress report has said. The UK gives less support to industry than any other European country, and has become the 'weak wildebeest' of European industry, it claims.This would remain the case while the British workforce was "easy to flog and easy to sack", the TUC said. But the government defended its record, saying subsidies were not the best way forward for UK industry. And Tony Blair's union threatens to withhold its cash: Labour faces a £1.5m election blow and the threat of a first big affiliate severing ties with the party, as a trade union revolt gathers pace over the direction of Tony Blair's government. The T&G transport workers union, Mr Blair's own union, headed by leftwinger Tony Woodley, is poised to follow the GMB general workers union and withhold some £750,000 from Labour's election coffers in protest at pro-business policies. The GMB yesterday snubbed Downing Street and the Labour hierarchy by rejecting a request for £744,000 and deciding to contribute nothing to the central campaign. Kevin Curran, its general secretary, raised the possibility of a split during a private meeting in central London of the union's central executive meeting. Criticising plans to expand private sector involvement in public services, the two-tier workforce and sidelining of improved employment rights in the European treaty, he warned of a "watershed moment" in relations. "I could not ask GMB members to maintain their relationship with the Labour party if midway through the third term of a Labour government there was still no sign of the party addressing the concerns of GMB members," said Mr Curran.

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