Union boss urges Blair to outlaw strikes in state sector

One of Britain's most influential union leaders has privately urged the Government to consider what amounts to a ban on strikes in the public sector.

Sir Ken Jackson, in a move which will provoke a bloody conflict within the Labour Party during the coming months, has told ministers that as part of their reforms all disputes in state-funded services should be settled through compulsory arbitration by a third party.

That would leave no room for the kind of industrial action which Unison, Britain's largest union with over 1.3 million members, has said it would be prepared to back in defence of its members' terms and conditions. It also goes much further than the Conservatives have been prepared to go, for fear of appearing too radical.

In a controversial speech today, Sir Ken, leader of the Amalgamated Engineering and Electrical Union (Aeeu) ­ one of Labour's biggest affiliates ­ will declare his support for the increased use of private companies to deliver public services. His provocative keynote address to his union's biannual policy conference in Blackpool puts him on collision course with most of the rest of the union movement, which intends to establish itself as a vigorous extra-parliamentary opposition to the Government. The row is sure to dominate both the TUC annual congress and the Labour Party conference in the autumn.

Mr Jackson will today criticise other unions for espousing an "outdated, ideological" approach ­ which insists the public services should be delivered by state employees. He will say: "Let us be clear what the British people voted for. They voted for better schools and hospitals. When your loved one waits two years for an operation, you don't care who manages your hospital. What you want is an efficient, modern healthcare system. That was the message from people on the doorstep."

He will argue: "So let there be no doubt if the Labour movement really has the best interests of public services at heart, they will welcome reform and work with the Government to achieve it."

His comments come after a series of declarations over the weekend from union leaders who kept a vow of silence until the election was over.

Sir Ken's assertions contrast vividly with arguments to be delivered today by Dave Prentis, the Unison general secretary. He will urge the Prime Minister to abandon the policy and will say that the strategy undermines the work of doctors, nurses and other staff. Launching the "Positively Public" campaign, Mr Prentis will say: "If Labour think they have been given a mandate to go ahead with further privatisation of public services, then it had better think again."

At its annual conference next week, Unison will produce evidence that it claims will prove the private sector deals are not good value for money. Writing in a Sunday newspaper, Bill Morris, the general secretary of the Transport and General Workers Union (Tgwu), said the policy would do "immense damage to the morale of hard-working, dedicated public sector employees."

John Edmonds, leader of the GMB general union, said: "The only reason to bring in private sector management into the NHS is to bring in the private sector ethic, and that is exactly what we should not do."