Ministers bow to union leaders over new rights for workers

Ministers have bowed to trade union chiefs over the award of lucrative government contracts, it has been revealed.

Businesses seeking a share of the £115 billion on offer to deliver public services will be told they must promote trade union membership as part of their bid for work.

Employees working on government projects in the private sector will must also be given training if they do not have basic literacy and numeracy qualifications.

The move will be announced this morning in a joint statement at Downing Street between Cabinet Office ministers, union officials and business leaders.

Employees working in private sector companies on government contracts will be told that they cannot be penalised for joining a union and they can give help to members facing disciplinary hearings, under the agreement.

The move is a growing sign of the unions growing strength. Thousands of members are set to hold strikes in schools and town halls across the country over pay.

Today's announcement comes as the country's biggest public sector union has threatened to stop donating £1.5 million to Labour party coffers.

Dave Prentis, the general secretary of Unison, accused the party of being "devoid of ideas of how it's going to win the next election".

Around 490,000 Unison members each contribute £3-a-year to Labour through a special fund - making up a tenth of the party's annual income.

The union also contributes into the party's constituency funds, but Unison has also warned that is under review too.

However, Britain's biggest union, Unite, has given guarantees underwriting Labour's debt-ridden accounts.

Francis Maude, Conservative Shadow Minister for the Cabinet Office, said it was "yet more evidence that the trade unions are receiving policy favours from government ministers in return for bankrolling a nearly-bankrupt Labour Party".