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Economic Development

Political row over Welsh Government Covid funds coming with expectation firms allow union access

Welsh Conservatives have accused the Labour-led Government of 'bullying businesses' but strong response from Economy minister Ken Skates

Economy Minister Ken Skates

A political row has broken out over a letter to businesses receiving emergency Covid-funding from Welsh Government.

Welsh Government launched the Economic Resilience Fund (ERF) to support businesses in Wales during the coronavirus crisis - helping save firms and secure jobs.

In the letter to businesses who have received ERF support, Economy Minister Ken Skates says: "Every worker has a legal right to join a trade union, and we expect employers who receive public funds to allow trade unions access and seek a recognition agreement where workers request it."

This has been attacked by Darren Millar MS – the Conservative Shadow Minister for Tourism and Covid Recovery.

He said: "Any suggestion that businesses must have a unionised workplace in order to access Welsh Government grants is totally unacceptable and the assertion that employers who don’t recognise unions are unfair to their employees is insulting.

Darren Millar MS

“Instead of being preoccupied with filling the ranks of their party’s major donors, the Welsh Labour-led Government ought to be focusing its attention on helping businesses to survive to protect the livelihoods of their employees during this unprecedented and uncertain time.”

He added: “The Labour Party should stop bullying businesses, apologise for strongarming them, and give them the support they need to protect jobs.”

Conservative MS Janet Finch-Saunders, Chairman of the Cross Party Group on Small Shops, added that Mr Skates should be focused on delivering Rapid Reaction (Local Lockdown) fund rather than creating “a socialist utopia”.