Strikes in the UK send a bad signal abroad, the CBI says

Digby Jones, the business lobby group's Director General, said industrial action was causing potential damage to the UK's reputation for labour market flexibility.

Wildcat strikes by postal workers and firefighters had sent a bad signal to foreign investors, Mr Jones said.

The issue of UK union militancy had been raised with him during a recent trade visit to the US, he said.

During the trip, bosses at two US automotive and construction companies had stressed that one of the main reasons they had invested in the UK was because of the flexibility of the labour force.

Militancy

Speaking ahead of the CBI's national conference next week, Mr Jones said growing militancy among trade unionists was putting up "a very bad sign for UK plc abroad".

Other nations are catching us up... alarm bells are ringing about whether we are as competitive as we used to be Digby Jones, CBI director general

Labour flexibility was one of the UK's "jewels in the crown", especially as other areas such as transport were not so good, Mr Jones said.

"When overseas investors see the militancy among trade unionists it will have an effect," he said.

Mr Jones also voiced concerns that Britain was losing its competitive edge because of problems with transport, taxation, the labour market and investment.

Competition

"Other nations are catching us up," he warned.

"At a macro economic level, the Government has helped deliver low interest rates and low unemployment.

"But at a micro level alarm bells are ringing about whether we are as competitive as we used to be."

Mr Jones said that the CBI would continue to argue that people should be allowed to work longer than a 48 hour week "if they wanted to".