Union leaders last night warned the British Prime Minister, Mr Blair, of "cries of distress" from manufacturing industry as thousands of jobs are lost across the country because of the strength of the pound and the Asian crisis.
But their appeal for help was met with a firm view from Mr Blair that the government's priority remained long-term stability. The government believes the British economy is fundamentally strong, although union officials now expect the Bank of England's Monetary Policy Committee to carefully consider whether interest rates should be cut when it meets later this week.
Leaders of the country's main unions, led by the TUC general secretary, Mr John Monks, met the Prime Minister for an hour in Downing Street, warning that thousands of jobs were at risk unless immediate action was taken, including the setting up of a tripartite task force, made up of unions, employers and the government. Mr Monks said the meeting was "useful", adding: "We made a presentation to the Prime Minister about how a partnership approach could improve competitiveness, stressing the positive role that unions can play."
He said Mr Blair had made it clear the government would not be changing its economic policies, although it was concerned about the present problems, highlighted by the loss of 600 jobs in Mr Blair's own constituency.
Mr Monks described the meeting as "constructive and courteous" and said he did not believe the government was washing its hands of the economic problems.
"The government is only too aware of the problems the British economy faces at the moment and the need to ensure that we do all we can to avoid getting into a recession."
But one of the union leaders said the discussions had been "forthright" and added that unions had used the term "cries of distress" to describe manufacturers' pleas for help.
Mr Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, called on Mr Blair to widen the remit of the Bank of England's monetary policy committee to consider employment aspects.
Mr Roger Lyons, general secretary of the Manufacturing, Science and Finance Union, said he would now be contacting employers' organisations to help with his campaign for special help to be given to manufacturers. The Prime Minister's official spokesman made it clear before the meeting had even begun that there would be no shift in policy as a result of the unions' representations.