Trade union hopes for a big extension of legal rights, including a new right to strike without fear of the sack, are likely to be dashed in a government white paper next week.
Tony Blair will risk a fresh row with the TUC by publishing on Thursday a review of employment law that will give unions only a limited set of new rights. The looming confrontation comes as relations between the unions and the Labour government enter another turbulent phase with a new wave of leftwing leaders on the verge of being elected.
The big public sector unions, such as Unison, were delighted only last week when Downing Street signalled legal protection from the threat of a two-tier workforce in privatised public services. However, the white paper will have the opposite effect especially with Bill Morris, outgoing general secretary of the Transport and General Workers Union, who is seeking new protections from dismissal for lawfully striking workers.
The employment relations minister, Alan Johnson, has been consulting the TUC and the CBI over the white paper's content, but a gloomy TUC assessment of the outcome expresses "disappointment that the government has not moved on the major issues ... fundamental changes are needed to eliminate some serious shortcomings in the legislation".
The TUC executive discussed the white paper at a meeting on Wednesday. The unions had been pressing to make it easier to gain recognition and bargaining rights in a company, mainly by scrapping the dual requirement that unions gain majority support in a ballot, backed by at least 40% of the workforce.
Mr Johnson is not prepared to grant unions the right to hold recognition ballots in companies with fewer than 21 workers. A TUC paper describes his decision as "wholly unacceptable, and arbitrary as well as indirect discrimination against black and women workers".
The TUC has also condemned the minister's decision not to extend dismissal protection to workers taking part in lawful strike action as "illogical and abitrary". Protection exists only for workers on strike for the first eight weeks of a dispute.
The government is also unlikely to give independent unions a right to recognition at a company which already recognises a "sweetheart" union.
It has also decided only to partly implement a European court ruling preventing pay discrimination against unionised members. The government will make it clear that employers can offer and enter individual contracts with workers as long as they do not insist that workers relinquish union representation.
The unions will be handed some new measures designed to make it easier to speed up recognition claims, as well as new rights to hold postal ballots or even internet votes.
The white paper will also consider raising the upper limit on compensation when an employer fails to reinstate an unfairly dismssed worker, and whether employees should be given greater protection from bullying and intimidation by managers during recognition ballots.
Deregulatory measures will also be proposed on the election of union presidents, executive union elections, and political fund ballots.
The TUC paper reveals the government has not yet decided how to implement EU directives on temporary workers and information consultation.
The CBI last night said it was encouraged by the white paper's outcome.
