By Hugh Pym BBC Industry Correspondent

The gloves are off in the conference build-up

He has not in the recent past shied away from the issue of trade unions and public sector reform.

But his latest intervention is interesting for its timing - it represents the opening exchange of the conference season.

On the first day of September, the CBI's director general has fired the first salvo.

Straight talking

Next week, Mr Jones will follow his predecessors Howard Davies and Adair Turner in speaking at the TUC Congress.

It's hard to imagine either of them making such a direct attack on the union movement the week before an appearance in front of a TUC audience.

I only wish that trade unions... would fight the battles of tomorrow, and stop fighting the battles of yesterday Digby Jones, CBI director general Read more of Digby Jones' comments

But Mr Jones has never been known to choose the diplomatic course when he feels some straight talking is required.

Mr Jones, according to CBI sources, was making his comments against a backdrop of business unease about the pace of reform in the public services at a time when the Government has committed itself to record levels of investment.

Employers spoke out strongly against the increase in National Insurance contributions which took effect in April.

They demanded to know what they were getting in return. They feared then that the extra tax revenue would be poured into a black hole.

Foreign competition

Reports about union plans to challenge the Government over issues like foundation hospitals at the Labour conference have not gone unnoticed in Britain's boardrooms.

As one business source put it, "if the unions are kicking up now about such a modest reform, what next?"

The CBI has published a report on competitiveness which argues that other countries are threatening to "steal a jewel in the crown of the UK economy".

The employers' organisation claims that the prized British labour market flexibility is being eroded. Increased regulation and taxation are cited in the report.

Mr Blair's busy day

All this will be aired at a Downing Street meeting on Tuesday.

Business fears a return to 1970s-style industrial action

Some of Britain's most powerful industrialists will meet the Prime Minister.

The group will include Sir John Bond, chairman of HSBC, Lord Blyth of Diageo and Unilever's Niall Fitzgerald.

The government's taxation and spending policies and the question of what can be delivered in terms of productivity gains in the public services will be discussed.

Tony Blair will also meet a delegation of union leaders. They are sure to paint a different picture.

The TUC has already given its response to Digby Jones' attack.

"Unions don't want to go back to the 1970s and it would be a mistake if employers gave the impression they wanted to go back to the 1980s when corporate greed ran riot", said a spokesman.

Confrontation

Both the CBI and TUC still talk the language of partnership.

They highlight the co-operative approach on issues like productivity improvement and workplace consultation.

But not much of that will be heard over the conference season. The language of confrontation will be very audible.

Digby Jones argues that he is doing no more than voicing a feeling amongst his members that Government policy is tilting away from business towards a union agenda.

Union leaders argue the opposite.

By the end of September Tony Blair will be expected to have come up with some answers.