On your bike, Mandy

As wildcat strikes over cheap foreign labour threatened to spread, the Business Secretary fanned the flames by insisting it would be wrong to keep British jobs only for British workers.

“It would be a huge mistake to retreat from a policy where, within the rules, UK companies can operate in Europe and European companies can operate here,” he said. “Protectionism would be a sure-fire way of turning recession into depression.”

It came as Gordon Brown condemned the strikes as “indefensible” and stressed that the UK was

part of a single European market. Europe Minister Caroline Flint also backed Lord Mandelson’s stance. She said: “It is important to remember that open European labour markets also allow British firms and workers to take advantage of contracts and opportunities elsewhere in the EU.”

But Tory MP David Davies said: “It’s absurd and insensitive to tell these people they have to move. Instead of telling people to get on their bike, Caroline Flint should get on a plane herself, to Brussels, and sort this out.

“She should be trying to turn Gordon Brown’s pledge of British jobs for British workers into some kind of reality.”

And GMB union general-secretary Paul Kenny said: “Mr Mandelson has come back from Europe and he thinks everything is fine. He needs to get his feet on the ground.”

Thousands of workers walked out last week in a series of strikes around the UK in protest at the use of Italian and Portuguese labour at the Lindsey oil refinery in Lincolnshire.

Recent EU court decisions mean companies can tear up wage agreements if they import foreign staff – giving firms an incentive to hand jobs to foreigners instead of locals.

Former Cabinet minister Peter Hain later became the first senior Labour figure to blame his own Government for what had happened. He said: “We should stop gold-plating EU regulations and we should stand up for the British people, that is why I understand the anger at job losses.”

Shadow Chief Secretary to the Treasury Phillip Hammond said: “The strikers have legitimate questions about why they weren’t considered for the jobs in question. And after promising ‘British jobs for British workers’ only this summer, Gordon Brown certainly has questions to answer.”

Mr Brown yesterday tried to row back on his pledge, saying: “When I talked about British jobs, I was taking about giving people in Britain the skills, so that they have the ability to get jobs which were at present going to people from abroad.”

But his attempt at clarification failed to convince critics.

Former welfare minister Frank Field said: “These strikes are proving to be for Gordon Brown a double whammy. British workers are being specifically excluded from working on contracts by European contractors – contracts won by European contractors to operate in our very own country.”

Lord Mandelson insisted the problems had nothing to do with Brussels. “It is not European law that has caused this problem for us,” he said.

“It has been the way in which contracts have been made, the way in which sub-contractors have been recruited, and the perception that has been created about their employment promises and practices.”

But with the strikes threatening to spread, there were signs of growing panic inside Labour high command last night.

Downing Street said Mr Brown will appeal to Brussels to change the laws. But the EU is currently led by the Czech  Republic which benefits from exporting cheap labour and any change is likely to need all member states’ agreement.