Unions rounded on the Government yesterday for reneging on a key pledge after John Hutton, the Business and Enterprise Secretary, ruled out UK legislation to give agency workers the same rights as permanent employees.

In an interview with The Times, Mr Hutton said there would be no legislation in the UK, although the Government would continue to try to find a solution in Europe.

This month an EU draft directive was blocked by Britain and observers believe that it will not find its way back onto the agenda in the foreseeable future.

However, unions believe that Labour promised British legislation – if European efforts failed – in the Warwick agreement, a range of promises made to unions three years ago to win support in the general election.

Mr Hutton said: “I wasn’t party to the Warwick agreement, but what I can see recorded was that we would resolve this at the European Union level. We agreed in principle a directive and we would try to get it sorted. We have no plans for legislation.”

The minister’s decision is a big blow to the unions, which have made the issue one of their biggest campaigns because they believe that large numbers of people are losing employment rights through the growth of agency work.

In its recent Employment Bill, the Government promised to crack down on rogue agencies but did not address the unions’ core concerns.

Tony Woodley, the joint general secretary of Unite, gave warning that Labour risked election defeat because of the move.

He said: “Failing to deliver on this manifesto pledge is to condemn well over a million workers to exploitation and discrimination, and leave unchecked the workplace and community tensions that division allows to breed. If the Labour Government are unable to support core Labour policies like this, it will undoubtedly lead to defeat.”

— Mr Hutton will say today that Britain needs to be energy independent.

Ahead of the Government’s decision on new nuclear power, he will say that energy policy needs to be shaped by a drive for independence.

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