PETER Mandelson has been criticised by senior Labour figures and trade union leaders for suggesting that reform of workers’ rights should be slower than pledged – and should not go further than the previous Labour government.

Party leader Keir Starmer previously said Labour's "New Deal for Working People" will be implemented in the first 100 days of UK Government he leads. It will give all workers employment rights from their first day in a job and ban zero-hours contracts.

In an article for the Sunday Times, former business secretary Mandelson argued reform "must not be rushed".

Mandelson (below) wrote: "Businesses and investors will have eyes on the total UK business environment, including regulation. This includes labour market and trade union law.

The National: Peter Mandelson“There is a clear case for reform but the case needs to be tested, priorities established and the complexities addressed. This must not be rushed but it must be done in consultation with business.”

The Labour peer, and a key player in Tony Blair’s government, added that “employers need to be satisfied before the election” that the party will “not go further than the settlement bequeathed by New Labour”.

The remarks have been criticised by senior Labour figures who have said the party will continue pushing for reforms.

Justin Madders, the shadow minister for employment rights, said: “We have had well over a decade of wages lagging behind the cost of living, growing insecurity at work and a rise in exploitative jobs. The case for reform so that we have well paid, secure, trade union recognised jobs is as strong as it has ever been.”

Appearing on Sky News, Labour Chair Anneliese Dodds (below) insisted “we’re a pro-worker and pro-business party”.

The National:

She added: “We need to ensure that work pays. That’s the motivation for Labour’s New Deal for Working People. The measures in that New Deal would actually increase productivity. They would put more money in workers pockets and they’d also boost the conditions for innovation as well.

“Of course, those proposals will be delivered in a way that’s in the interests of business as well as in the interests of workers.”

And the general secretary of the Trades Union Congress, Paul Nowak, posted on Twitter/X: “Wages no higher in real terms than they were in 2008; insecure, low paid work hard wired into the economy; household debt spiralling; good employers undercut by zero hours cowboys.

“Spare me the ‘unintended consequences’ of decent employment laws brigade and their outriders.”