Unions fear Blair climbdown on rights feared

Trade union leaders are becoming increasingly concerned that Tony Blair is willing to shift policy in favour of employers, as Labour prepares to reveal backing from leading business figures.

Union sources have told The Independent that they fear the Labour leader may be planning to water down his commitment to the European Social Chapter in a speech to business people on Wednesday.

Their suspicions have been fuelled by Labour's energetic courting of business leaders. Following yesterday's publication of names of donors giving more than pounds 5,000 in 1995, endorsements from business people and some 1996 donors will be announced in the next few weeks.

Mr Blair also offended trade unionists yesterday by telling postal workers - on strike today - that they had a "pretty good deal" on the table, and reiterating the need for their union to have the consent of its members in prolonging the dispute.

But a Sunday Times survey of 50 chief executives of top 250 FTSE companies suggests Mr Blair does not face massive hostility to his policies. Twenty- two said they thought the Social Chapter would not cost jobs, and 24 backed the minimum wage.

In the North-west last week Mr Blair picked up the unreported endorsement of John Moores, the Littlewoods director and son of the company's founder, Sir John Moores. Speaking at a Labour fund-raising dinner in Manchester, the Eton-educated Mr Moores backed a minimum wage and the European Social Chapter. "I look forward to a Labour government," he said.

A British Institute of Management survey of managers published today suggests Labour support among them has doubled from 12 per cent in 1992 to 25 per cent now. The Tories have 43 per cent and the Liberal Democrats 15 per cent.

A source close to the leader of one big union said of Labour's drive to woo business: "It's the tone and the joy with which it's done which rankles, and the naivety of thinking that you can do it without any political paybacks which is worrying."

Unions point out that about three-quarters of Labour's funding still comes from them, if the general election fighting fund is included.

But Labour's biggest-ever donation, made public over the weekend, was the pounds 1m from Political Animal Lobby, an organisation campaigning for a ban on hunting.

Labour's list of 17 donors who gave more than pounds 5,000 last year included several unions and only four companies: pounds 30,000 from GLC, a fund management company run by Lawrence Staden, a 35-year-old City trader who earns pounds 1m a year; pounds 25,000 from Pearson, publishers of the Financial Times; pounds 20,000 from TU Fund Management, the trade union trust company; and pounds 7,500 from Tate and Lyle.