Miliband leading Labour to destruction, McCluskey says
Miliband rejects union criticism over pay stance
(about 4 hours later)
Ed Miliband has set Labour on a path towards "destruction" and "certain election defeat", the head of the UK's biggest union has warned.
Ed Miliband has said Labour is on the "right path" in supporting a cap on public sector pay rises, amid criticism from two of the party's union backers.
Unite general secretary Len McCluskey made the comments after the party's decision to support the government's pay freeze for public sector workers.
Unite and the GMB, two of the UK's largest trade unions, say the move is a "serious mistake" and could lead the party to a general election defeat.
But Labour's leader told the BBC he would "stand up for what's right" and it was "tough" if others disagreed.
Mr Miliband said this was wrong and Labour must be trusted on the economy.
Mr Miliband added that the party had to face up to "economic reality".
'Hard choice'
In 2010, the Conservative-Liberal Democrat froze public sector pay for two years for those earning above £21,000.
The government announced in 2010 that public sector pay for those earning more than £21,000 would be frozen for two years, and last November said it would then only rise by only 1% in the two years to 2015.
Then, last November, it said rises would be capped at 1% for each of the two years to 2015.
Shadow chancellor Ed Balls said on Saturday that pay restraint would have to continue, given the sluggish economy, and people should not expect Labour to oppose it.
Mr Miliband said it had been "a hard choice", but when faced with either protecting jobs or giving pay rises, it was "absolutely right to prioritise employment". He also said he could not commit to reversing any of the government's cuts.
Unions not affiliated to Labour criticised the move at the weekend, accusing it of "emulating the Tories on many issues", but Mr McCluskey's comments are the strongest yet from a direct party backer.
In an article in the Guardian, Mr McCluskey writes that the decision has put the party into conflict with millions of poorly paid public sector workers, who would now face years of effective wage cuts.
"Ed Balls' sudden weekend embrace of austerity and the government's public sector pay squeeze represents a victory for discredited Blairism at the expense of the party's core supporters," he writes.
"It also challenges the whole course Ed Miliband has set for the party, and perhaps his leadership itself."
'Cavalier'
'Cavalier'
Mr McCluskey rejected the argument that pay restraint would help create jobs and he criticised Labour for its "cavalier" failure to consult with trade unions before making the "shift" in policy.
Labour's leadership announced at the weekend that this public sector pay restraint would continue if it regained power, given the economic situation.
"This confronts those of us who have supported Ed Miliband's bold attempt to move on from Blairism with a challenge. His leadership has been undermined as he is being dragged back into the swamp of bond market orthodoxy."
The union leader said the Blairite right of the party would see the latest announcements as a victory and a sign of weakness from Mr Miliband - and could eventually try to oust him.
He criticised what he called a "cavalier" shift in policy, arguing: "This confronts those of us who have supported Ed Miliband's bold attempt to move on from Blairism with a challenge. His leadership has been undermined as he is being dragged back into the swamp of bond market orthodoxy."
He added: "That way lies the destruction of the Labour Party as constituted, as well as certain general election defeat."
Mr McCluskey's comments were echoed by Bob Crow, general secretary of the RMT transport trade union - which is not affiliated to the party - who said Labour was now "doomed" to electoral defeat.
A spokesman for the union told the BBC that its general secretary Paul Kenny had written to senior Labour officials saying that the decision to back the public sector pay cap was a "most serious mistake".
Between July 2010 and last September, Unite gave £5m to Labour and the GMB provided £1.9m. This represented 43.2% of all donations made to the party during the period.
A GMB spokesman told the BBC that its general secretary Paul Kenny had written to senior Labour officials saying that the decision by Ed Miliband and Ed Balls to back the public sector pay cap was "most serious mistake" they could have made.
But, speaking to BBC political editor Nick Robinson, Mr Miliband said: "I don't seek a fight within my own party, but I do stand up for what's right.
Left-wing Labour MP John McDonnell also accused his leader of "capitulation to Cameron's economic analysis", adding: "Len McCluskey's article sums up the general feeling amongst Labour Party supporters of overwhelming disappointment."
"And if people don't like it, I'm afraid that's tough because I'm going to take the responsible path, the right path and the path which will show to the public that Labour is serious about the economic reality we will face if we come into government after the next general election."
Fellow backbench MP John Mann told BBC Radio 4's World at One there had "to be some proper thought on how government can reduce spending", rather than "by attacking the lowest paid".
'Priority'
Asked if he was urging public sector workers to agree to pay cuts to preserve jobs, Mr Miliband replied: "Absolutely. We're talking actually about a pay increase limited to 1%, but absolutely.
"Look, the priority now has to be to preserve jobs. I think that's a recognition that everybody would see around the country. We have got to do everything we can to preserve employment and as I say, this Labour Party is going to face up to those difficult choices we have to make."
But Bob Crow, general secretary of the RMT transport trade union - which is not affiliated to Labour - said the party was now "doomed" to electoral defeat.
Backbench Labour MP John Mann told BBC Radio 4's World at One there had "to be some proper thought on how government can reduce spending", rather than "by attacking the lowest paid". He said Mr Miliband needed a "credible plan" for government.
And fellow backbencher John McDonnell also accused his leader of "capitulation to Cameron's economic analysis", adding: "Len McCluskey's article sums up the general feeling among Labour Party supporters of overwhelming disappointment."
Unions founded Labour and supply around 90% of the party's funds. Mr Miliband narrowly won the Labour leadership contest in September 2010 ahead of his brother, David, after success with trade union members and affiliated societies pushed him into first place.
Unions founded Labour and supply around 90% of the party's funds. Mr Miliband narrowly won the Labour leadership contest in September 2010 ahead of his brother, David, after success with trade union members and affiliated societies pushed him into first place.
Strong language
The Labour leader said Mr McCluskey was "entitled to his view", but that he was wrong.
"We can't go around making promises that we can't afford to keep because that would just undermine trust in us and trust in politics," Mr Miliband said.
He said he would continue "getting on with the job" of criticising the government and showing "that Labour can be trusted with the nation's finances".
The BBC's political editor Nick Robinson said the language from Mr McCluskey was very strong, comparing Labour today to the pro-austerity government of the 1930s - which is hated in the eyes of anyone in the Labour movement.
He said Mr Miliband and Mr Balls were not trying to embrace government cuts and were instead making an attempt to signal realism but there was a danger this message was being misunderstood.
