Brown gives union a lecture of pay rises

Mr Brown got a smattering of polite applause and was denied a standing ovation for his first speech as Prime Minister to the TUC in Brighton this afternoon.

The response from union bosses was equally muted.

Tony Woodley, joint general secretary of Unite, said he would only give Mr Brown "five out of 10" for his efforts, saying his urging of wage restraint "was more of a lecture than a speech".

The response came despite the Prime Minister heaping praise on his audience of union leaders and activists, crediting them with creating three million jobs and inviting them to work "side by side" with Labour in future.

Mr Brown also repeatedly name-dropped the former South African president Nelson Mandela - from whom he carried a message of greetings - in an attempt to defrost his audience.

Although his attempts at warmth struck a contrast from the days of Tony Blair, when unions felt excluded, Mr Brown's lecture on the need for pay restraint made clear there would be no concessions to nine million public sector employees ordered to accept below-inflation annual rises.

"This Government will always put stability first," said the Prime Minister, adding that there could be "no loss of discipline, no resort to the easy options, no unaffordable promises and no taking risks with inflation".

Mr Brown went on: "So let me be straightforward with you: pay discipline is essential to prevent inflation, to maintain growth and create more jobs - and so that we never return to the old boom and bust of the past."

The passage was heard in silence by his audience representing 6.5 million union members. Earlier, as Mr Brown stood up, there was a protest by 45 public sector union members who waved placards demanding "Fair Pay For Public Servants".

At the end of the speech about a third of the hall did not clap. Mr Brown won some applause when he announced harsher penalties for firms that failed to pay the minimum wage. But there was little positive reaction to a string of announcements for more training, benefits and job creation programmes.

Mr Brown said these would include six weeks of welfare payments for lone parents getting jobs to ensure they felt better off, a boost for apprenticeships, guaranteed interviews and a £40-a-week allowance for lone parents - £60 in London - ensuring that work always pays.

Some union leaders were threatening co-ordinated industrial action by public sector staff to cause disruption in protest at pay restraints. The Public and Commercial Services Union which represents civil servants was poised to announce the result of a ballot on industrial action.

Dave Prentis, general secretary of Unison, said: "Perhaps he hasn't yet gauged the real feeling of public service workers having to bear the brunt of government cost-cutting."