Miliband forces wind firms to back unions or lose subsidies

Ed Miliband has forced wind power companies to support trade unions by threatening to cut their subsidies.

Dozens of businesses supplying the offshore wind industry have been pressured into adopting pro-union rules after the Energy Secretary warned he would reduce their access to taxpayer funds unless they complied.

It means the companies will be required to meet certain requirements in the Employment Rights Act months before they are rolled out nationwide, including a new right for trade unions to enter their workplaces.

They will also have to provide unions with information identifying “major contractors” across the supply chain where “reasonably practicable”, and actively engage representatives in projects that concern them.

At least 37 companies have agreed to the commitments set out in Mr Miliband’s new Offshore Wind Fair Work Charter – after the Government threatened to block their applications for clean energy subsidies if they failed to comply.

The Tories accused Mr Miliband of risking an increase in energy bills by “effectively forcing the offshore wind industry to accept unionisation”.

In its flagship Employment Rights Act, passed last year, Labour introduced several measures aimed at boosting the presence of trade unions in the workplace.

The new rules, which were Angela Rayner’s pet projectbefore her resignation from the Cabinet, will include a “statutory right of access”, forcing bosses to let unions into their offices, and a duty on firms to inform workers of their right to join a union when they start a new job.

The Employment Rights Act is being implemented in stages, meaning these specific requirements are not set to come into force until October 2026.

However, Mr Miliband has stripped offshore wind companies of their right to apply for the clean energy bonus – a green subsidy scheme – unless they sign up to his Fair Work Charter, effectively forcing them to implement the new rules early.

The move affects businesses applying for the latest round of subsidies, which provide financial support for offshore wind developers that prioritise investment in high-need areas and use less polluting supplies.

Earlier this month, the Government announced that an initial 37 supply chain companies had agreed to sign up to the charter, alongside five trade unions – including Unison, the largest union in the UK.

The Department for Energy Security and Net Zero (DESNZ) said at the time that the move would “pave the way for trade union recognition across the booming offshore wind sector”.

It added that it expected future agreements to include “commitments on fair terms and conditions, apprenticeships, and more inclusive workplaces”.

The department has since told The Telegraph that more than 60 businesses and trade unions have signed up to the charter – although it is unclear how that total breaks down between each category.

Andrew Griffith, the shadow business secretary, said: “Britain must get a grip on electricity prices. Cheaper energy is essential for economic growth, the cost of living, and tackling climate change.

“But once again, Labour has shown its true colours. By effectively forcing the offshore wind industry to accept unionisation, Miliband risks undermining the economic benefits of clean energy.

“Lowering electricity bills, not pandering to the unions, is what Britain needs. How can we expect British households to cool their homes, or investors to back British industry, or innovative technologies like EVs to succeed, if electricity bills are pushed even higher?

“Labour claims to be on the side of the environment, bill-payers, and growth, but it seems they are only really here to serve the unions.”

A DESNZ spokesman said: “We have always been clear that those who power the nation should have power in their workplace.

“That’s why we have agreed a Fair Work Charter with over 60 businesses and trade unions as a first step to improve workers’ rights and grow union representation in renewables, implementing benefits of the Employment Rights Act early for the offshore wind sector.”

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