Blair rejects vote for minimum wage

TENSIONS between Mr Tony Blair and the trades unions remained high last night after the Labour leader intervened directly in …

TENSIONS between Mr Tony Blair and the trades unions remained high last night after the Labour leader intervened directly in the postal strike, and the Trade Unions Congress demanded a minimum wage of £4.26 an hour.

Delegates at Congress in Blackpool voted overwhelmingly for the sum, despite the Labour leadership's reluctance to set a figure and its warning that it would not be bound by it.

Mr Blair said the unions were "perfectly entitled" to make a submission, while repeating that a Labour government would appoint a low pay commission to set the eventual rate. It was "perfectly natural" for Labour and the TUC to disagree, he said, because they had different roles.

Mr Blair earlier intervened in the mail dispute, urging the postal workers' union to hold a fresh ballot of its members. The executive of the Communication Workers' Union has called two one day strikes for next week.

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But Mr Blair put himself on a collision course with the union, saying: "If the dispute continues it is right there should be further consultation of members - that would be the overwhelming view of the public and members of the union." He continued: "There has been a reasonable offer put on the table and I am sure it would be right to go back to the members and ask what they think."

But union general secretary Mr Alan Johnson rejected Mr Blair's call as "a waste of time and money" and said he was confident his 130,000 members would reject the latest deal proposed by the Royal Mail.

Mr Johnson said he had walked into a "maelstrom" following Labour's proposal on Tuesday for new agreements on the use of ballots and arbitration in industrial disputes. He said: "Things are far too frenetic for my liking. We are trying to prosecute a legitimate dispute with our employers. We are trying to reach a satisfactory resolution on a whole host of issues that have dogged the industry for years.

Reacting to the assertion by the shadow employment secretary, Mr David Blunkett, that Labour would not be dictated to by "armchair revolutionaries", Mr Johnson denied the postal union executive was "riddled by splits or political factions", pointing out that its members were ordinary postal workers elected by union members.

Mr Johnson played down the significance of a meeting called next week between the TUC general secretary, Mr John Monks, and the CWU executive to discuss the postal strike.

PA adds: The Prime Minister, Mr John Major, last night claimed that a minimum wage would be "most likely to hurt the people it is meant to help".

The Tories are opposed to a minimum wage. The issue will play a key role in the general election campaign.