Iran conflict: TUC calls for emergency taskforce to protect UK from economic shock

The TUC has today (Monday) called for an emergency taskforce – learning from the lessons of the pandemic – to help protect the UK from the economic fallout of the US-Iranian conflict.

The union body says ministers should urgently bring together employers and unions to discuss plans and contingencies.

The call comes amid a serious escalation in the war after targeting of gas fields leading to rising oil and gas prices.

The price of gas in Europe is more than double the level seen before the illegal US-Israeli war with Iran began – and oil is trading significantly higher by the barrel too. 

There have also been warnings that without action, supplies of essentials may come under pressure as global supply chains continue to face severe disruption.

Social partnership

The TUC says dealing with the crisis requires a “national, urgent and collaborative” approach across a range of sectors.

The union body cited the joint work during the pandemic between unions, government and employers on workplace health and safety, public services planning and the furlough scheme – which moved quickly to prevent companies going bust and mass layoffs.

The TUC says a similar collaborative approach is needed to shield workers and businesses from the economic shock of the current conflict.

Mitigating fallout

The TUC says that contingency planning is needed not just for the worst case scenario. Soaring costs – particularly in energy-intensive industries – are already threatening thousands of jobs.

Crucial sectors of the economy like steel and chemicals are already facing immediate impacts, with industrial clusters in Teesside, Merseyside and North Lincolnshire especially exposed.

The TUC says even if the conflict ends in the near future, costs for homes and firms are already set to increase – with petrol prices and some mortgage rates rising. 

The union body says joint working to mitigate these impacts is essential. Rises in energy costs could risk job losses and damage to industries if not dealt with early.

In the event that ministers step in, the TUC says immediate support should be targeted at those sectors and businesses most at risk. Any government action should have a stated goal to ensure that the war and temporary price spikes should not lead to permanent site closures, and financial support should come with conditions that employers protect jobs and shield their workforce.

TUC General Secretary Paul Nowak said: 

“The lessons from the pandemic are clear. When unions, employers and government came together we were able to move at speed to protect jobs, keep businesses afloat and give families security through an incredibly uncertain time.

“With the UK and global economy now facing huge shocks from the conflict in Iran we need that same approach again.

“We can’t afford to sit back and wait for the damage to be done. We need to get around the table and get ahead of this crisis.

“Unions stand ready to roll up our sleeves and act in the national interest.

“By working together we can protect workers, support firms and make sure households aren’t left to carry the cost of this conflict.

On the need for deescalation, Paul added:

“The longer this war goes on, the greater the threat to households and firms.

“British workers shouldn’t pay for Trump’s war with their jobs.

“It’s vital that our government does everything it can to deescalate and encourage an end to the war for working people at home and abroad.”