Mission-driven industrial relations: The case for fair pay agreements

This report explores how fair pay agreements could support the government’s mission-based approach by resolving labour market challenges in specific sectors of the economy. 

Keir Starmer’s government was elected to deliver a series of national ‘missions’. Achieving these missions will require the government to mobilise businesses and workers in key sectors of the economy. But some missions rely on sectors which are struggling to meet demand, even before the additional challenge of mission delivery is added to the mix. If the government doesn’t resolve workforce challenges in these sectors it risks missing key milestones in its Plan for Change.

Fair pay agreements are a policy tool which could help the government to achieve its missions. In fact, the government is already using fair pay agreements as a way of resolving workforce challenges in sectors connected to its missions. Starmer’s government is establishing ‘negotiating bodies’ to produce fair pay agreements for people working in adult social care and school support staff, sectors which will be instrumental in delivering on its health and opportunity missions. Fair pay agreements in these sectors will determine training standards, pay, and terms and conditions for businesses and workers.

Our analysis indicates that there is a case for applying the government’s ‘mission-driven’ approach to childcare, rail and construction. These sectors will help to deliver on the government’s Plan for Change, and the government can also leverage the state’s purchasing power in these labour markets.