Plot to kill off extension to union rights

THE Government has been conducting a vigorous behind-the-scenes campaign in Europe to undermine moves to grant workers more rights.

Much to the anger of British unions, Downing Street has been trying to head off a European directive to give employees enhanced rights to consultation and information.

Yesterday the lobbying bore fruit when Unice, the European employers' organisation refused to meet their union counterparts to thrash out a voluntary code.

In the absence of an agreement between the "social partners", the European Commission said it would now draft a detailed directive to force companies to inform and consult their employees. Unlike the directive on works councils, this initiative would affect organisations which only have workers in one country and possibly those with as few as 50 employees.

The Government is not convinced of the need for the measure, but indicated that it would abide by any deal concluded by the social partners. But sources in Europe said that its mildly sceptical public position belied its virulent opposition in private.

Tony Blair's opposition to the idea was made clear recently to Chancellor Kohl of Germany who it is understood then persuaded his country's employers' organisation to drop their support of the policy. That was said to be sufficient to ensure a vote by Unice against consultations with unions.

A Downing Street spokesman said the Prime Minister had made the Government's opposition clear in the House of Commons and to Britain's European partners.

Adair Turner, director-general of the CBI, said there was "a real possibility" that there would be insufficient backing for the directive among European ministers. He hoped the commission would think again.

Mr Turner said: "The Government has made no secret of the fact that it regards binding European legislation on this matter as inappropriate."

He added that Unice had always been united in its opposition to the initiative. Employers simply had to decide whether they could have developed a less harmful code through a voluntary deal with unions.

John Monks, general secretary of the TUC, is known to be furious over the Government's attempt to head off the directive. Yesterday the TUC said that, along with European colleagues, British trade unionists were "disappointed" by the employers' decision. The TUC expected the Council of Ministers to vote for the directive and said the European Parliament was enthusiastic about the measure. President Jacques Santer and Padraig Flynn, the employment commissioner, said Unice's decision undermined the concept of partnership which was at the heart of European decision- making.