Strikes expose Labour's plight

AS Lord Mandelson intensified his attack on the Conservatives' lack of transparency over the tax affairs of "non-dom" Michael Ashcroft, one of their chief benefactors, Labour MPs and colleagues of the Business Secretary were manning the picket lines with their trade union friends from the Public and Commercial Services union.

It epitomised the longstanding problems over the funding of political parties. For, while the Tories are beholden to individuals like Lord Ashcroft, their generosity continues to be outweighed by the millions of pounds being poured into Labour's election coffers by the unions – presumably in return for direct influence over current and future policy.

Yet the PCS, and others, clearly know that they can hold the Government to ransom because Labour is desperate, just weeks before the election, to scrape together every last penny.

Having allowed Civil Service unions to reach an agreement with Ministers over changes to redundancy pay, the PCS – backed by Labour MPs – chose to renege upon this commitment and, in doing so, cause considerable disruption to those people who saw their driving tests cancelled and court cases delayed, for example.

In doing so, they demonstrated a complete ignorance about how employment terms and conditions in the public sector far outweigh statutory rights in private industry – and that there is going to have to be a significant rationing of jobs, and services, at town halls and other public bodies.

This is the inevitable consequence of a government that has spent beyond its means – while allowing the country's national debt to spiral out of control. It is a reality that the trade unions, whether they like it or not, are going to have to recognise.

But, rather than shouting from the sidelines, they would be advised to work with the Government, and managers, to look at how working practices can be made more efficient. The longer this process is delayed, the more difficult that it will become for a future government to return the public finances to something approaching parity.