Working people in Britain must get a “new bargain” in 2017 that gives them a fairer share of the country’s economic gains and that turns the tide in an increasingly precarious jobs market, the head of the Trades Union Congress has urged.

In her new year’s message, Frances O’Grady also pressed the government to ensure workers’ rights are maintained and expanded as the UK prepares to leave the EU, and warned of the threat of “bad bosses” using Brexit to water down rules such as protections from working excessive hours.

The TUC general secretary was a vocal supporter of the remain camp during the referendum campaign and championed the EU’s role in guaranteeing many basic rights to workers. She said in Friday’s message: “Unions stand ready to defend these rights and win new rights so we keep pace with both the changing world of work and with our neighbours and competitors in the rest of Europe.”

O’Grady warned politicians to draw lessons from 2016, when widespread discontent among voters with ruling elites was seen as a key driver behind the vote for Brexit in the UK, Donald Trump’s win in the US presidential election and the Italian government’s defeat in a key referendum.

“2016 will be remembered as the year the establishment was shaken to its core. And yet the political turmoil has not benefited working people. Few feel they have taken back much control over their working lives,” said O’Grady.



“So as we look to 2017, it’s clear that we need a new bargain between those at the top – enjoying soaring boardroom pay and insulated from economic change – and ordinary working people. Britain succeeds when working people succeed. And strong unions are the only way to make sure working people get their share in Britain’s success.”

Ministers have repeatedly focused on flattering headline measures showing high employment and falling unemployment this year, but the TUC and others have emphasised that a large part of that has been down to a rise in precarious forms of work, including self-employment and people working far fewer hours than they would like.

O’Grady wants to see better representation and protection for those workers, including the growing number that are part of the “gig economy” as on-demand services such as Uber and Deliveroo grow.

“One in 10 of the UK workforce is now in precarious work. That’s 3.2 million workers in casual or agency work, on a zero-hours contract or in low paid self-employment,” she said.

“Just like last century’s dockers standing at the wharf gate hoping for a few hours’ work, the zero-hours contract worker waiting for a text from their boss needs a union. Because if all of those zero-hours contract workers acted together with the protection of a union, the bosses would have to listen – and then, things would change.”



Her calls for fairer pay and representation for workers come as labour market experts warn of a tough 2017 for workers, when rising inflation and economic uncertainty could squeeze earnings.

One leading employment organisation warned on Friday of slower economic growth, a pick-up in unemployment, fewer new jobs and downward pressure on pay that will compound existing challenges from low productivity and uncertainty about the UK’s future relationship with the EU.

In its 2017 outlook, the Chartered Institute of Personnel and Development (CIPD), which represents people working in human resources, predicts real wages will fall in the next 12 months as most employers find they are either unable to or do not need to offer higher wages.

Ian Brinkley, the CIPD’s acting chief economist, also predicted that employment practices would continue to change and said the onus was on the government to ensure laws kept pace and workers were treated fairly.



“While the gig economy works for many people, we know that, for significant minorities, the experience of work is poor and getting worse,” he said.

“We expect the trend of flexible or ‘atypical’ employment practices – through agency work, zero-hours and self-employment – to continue. How to manage, train and progress an increasingly arms-length part of the workforce will remain a major and growing challenge for organisations and the HR profession in particular.”

The group also highlighted the UK’s lacklustre productivity performance, something the chancellor, Philip Hammond, has vowed to address with a £23bn spending plan. The CIPD said it was vital the scheme was expanded to include measures to improve skills.

“Equally, the government’s new industrial strategy for 2017 should focus much more strongly on the workplace and skills, with the single aim of improving productivity,” added Brinkley.