Firms told to boost union numbers to win state contracts

The Prime Minister is doing favours for the unions by ordering firms that bid for government contracts to promote membership, it was claimed today.

An agreement launched at a Downing Street reception this morning says every firm doing business with the Government should give information to employees about what trade unions do and how to join them.

The Conservatives condemned it as a reward for trade union funding of the Labour Party. Recent figures show that despite union membership declining by half, union funding has soared to some 92 per cent of Labour Party income.

A copy of the deal, passed to the Standard, states: "Government organisations commissioning and monitoring contracts for services will encourage service providers to: provide information on Trade Unions; and communicate this information to their employees in a timely and appropriate manner."

The agreement says employees should be told unions exist "to protect members and represent their interests" including by offering legal advice, financial assistance, sickness benefits and education facilities.

Shadow cabinet office minister Francis Maude said: "This is more evidence that unions are receiving policy favours from government ministers in return for bankrolling a nearly-bankrupt Labour Party."

TUC chief Brendan Barber was among those at the launch, along with Skills Secretary John Denham and representatives from the CBI.

A government official pointed to the CBI endorsement and said: "This lays down minimum requirements for good employers and has been backed by business organisations. It is in no way a concession to unions."