Labour’s biggest backers appeared to be on the verge of open warfare with Keir Starmer’s government as Unite the union suspended Angela Rayner’s membership over the Birmingham bin strike.
Unite is one of the biggest unions in the country and affiliated to Labour but accused the government of failing workers in a row that could lead to a historic split with the Labour Party.
The UK’s largest union also suspended Birmingham council leader John Cotton and other councillors for what they say is effectively ‘firing and rehiring’ workers as part of the city’s bin strike.
It comes as the Trades Union Congress has led calls for a major change in economic policy by Starmer’s government with the imposition of wealth taxes on the super rich and major corporations.
Added to that other unions have flagged up major concerns that chancellor Rachel Reeves may be planning a tax raid on public sector pension funds.
But allies of Ms Rayner have furiously hitting back pointing out that Unite have singled out the leading cabinet minister who has pushed the government to the left on workers rights and, in the last fortnight, abandoning plans to slash disability benefits.
They pointed out that she cannot be suspended because she resigned from Unite in April.
An ally of the deputy prime minister said: “It’s wild! They know full well that Angela cannot directly intervene in the way that they say, and to attack one of the few remaining cabinet members who is standing up for workers rights and real labour values is simply mad. Wes Streeting will be crowing!”
They added: “The thing is as well, GMB union have threatened that if the council agree to what Unite want, it will sue them in court for millions, because it will create an even bigger equal pay issue!”
The row comes amid a growing rift between the party and the unions, which has seen groups, including the Trades Union Congress (TUC) and the Fire Brigades Union (FBU), pile pressure on the government to avoid more cuts by bringing in a wealth tax.
The union’s general secretary Sharon Graham said: “Unite is crystal clear it will call out bad employers regardless of the colour of their rosette. Angela Rayner has had every opportunity to intervene and resolve this dispute but has instead backed a rogue council that has peddled lies and smeared its workers fighting huge pay cuts.
“The disgraceful actions of the government and a so-called Labour council, is essentially fire and rehire and makes a joke of the Employment Relations Act promises.
“People up and down the country are asking whose side is the Labour government on and coming up with the answer not workers.”
Before she became an MP Ms Rayner worked as a trade union official for another union, Unison.
Created in in 2007, by the merger of two major unions, Amicus and the Transport and General Workers’ Union, Unite has had a tumultuous relationship with Labour.
Former boss Len McCluskey was seen as a thorn in the side of Ed Miliband, when he was Labour leader.
Mr McCluskey was close to Jeremy Corbyn, however, and recently warned Labour could lose trade union support to a new party of the left, called for by independent MPs Zarah Sultana and Mr Corbyn.
On Thursday Unite called for the city’s council leader to quit his post over the authority’s “abhorrent” and “shambolic” handling of the bin strike.
Hundreds of workers went on strike four months ago over fears some could face pay cuts of up to £8,000, leading to rubbish piling up in the streets.
On Wednesday talks to end the dispute broke down as the city council announced it had reached the “absolute limit” of what it could offer to resolve the strike.
The union began the strike after alleging that the council’s decision to remove Waste Recycling and Collection Officer roles would mean 170 workers would face losing up to £8,000 a year.
The council said the change was necessary as part of a restructuring effort designed to improve the service and comply with the Environmental Act 2021.
On Friday, the FBU slammed reports ministers were discussing lowering pensions for nurses, teachers, firefighters and other public sector workers in exchange for negotiations on pay.
And it reiterated its call for a wealth tax to fund pay rises and public services instead of threats to “raid” pensions again.
The PM’s official spokesman said: “Our priority is and always has been Birmingham’s residents. As you know, Unite’s industrial action caused disruption to waste collection. We have worked intensively with the council to tackle the backlog and clean up the streets for residents and public health. We remain in close contact with the council and continue to monitor the situation as we support its recovery and transformation.”