As part of an increasing trend towards selective briefing of Tory newspapers by Conservative spin-doctors, the Sun yesterday carried an "exclusive" report saying: "Lady Thatcher has vowed to end her private war with John Major - because she finds Tony Blair creepy." It added: "The Iron Lady has agreed to become a secret election weapon by carrying out her own mini-tour of Britain."Friends say she is determined to keep Tony Blair out of Downing Street because she is 'repulsed' at the way he has praised her recently."But last night a source close to Mrs Thatcher volunteered an outright denial of the report. "All over Europe, the results of the convergence criteria for single currency are coming home to roost In France, Germany, Italy, the results are the same Cuts in public services Cuts in social benefits Cuts in jobs," Mr Morris said. Hand in hand with a debate, he said, must be "tangible evidence of job-creating measures."Clive Brooke, general secretary of the PTC, said the union had serious concern about the convergence criteria and called for a Common Jobs policy backed up by job creation funds.yKen Jackson, leader of the AEEU, warned the Government that it should either come to terms with Britain's membership of the EU, or leave.t The finance union BIFU yesterday announced the setting up of a European Works Council with Hongkong and Shanghai Bank - Britain's most profitable company, which includes the Midland bank.. A bizarre allegation that Baroness Thatcher had been driven back into the arms of John Major because she found Tony Blair "creepy" was repudiated by sources close to the former Prime Minister last night. Although traditionally much of the trade union movement campaigned against greater European union, its favourable employment policies had swung unions to a determinedly pro-European stance since 1988.Bill Morris, general secretary of the TGWU, called for a referendum as part of an "informed debate" on the subject of greater union. Mr Monks criticised the Conservative government for agreeing a timetable which promised to fully implement a single currency within six years without properly preparing the country.

"In our opinion the British government should try very hard to slow down the single currency timetable."If it went ahead the UK would be "between a rock and a hard place". But he said that of all the choices available, including staying out or "shadowing" the single currency, going in to monetary union resentful and without enthusiasm was the only realistic option.The speech in effect reversed the pro-European position taken by unions since the late 1980s. Union leaders yesterday called for measures that would guarantee employment levels in the face of closer European union. In a marked departure from the unions' previously enthusiastically pro-European stance, John Edmonds the general secretary of the GMB, said existing convergence criteria set out in the Maastricht treaty could drive Europe backwards into recession and force unemployment levels upwards. The TUC's general secretary John Monks supported Mr Edmonds.

He told the second day of the TUC conference in Blackpool:"The great weakness of the European treaties is that they say so little about jobs. That is why we wholeheartedly support the Swedish proposal that an employment chapter be added to the treaties. "We need to make it abundantly and transparently clear that Europe is also committed to full employment for all of its people," he said. While the British and Irish governments are to give their views today, a statement from the parties rejected the use of violence. Fringe loyalists are set to stay in the Ulster peace talks after yesterday appearing to have secured widespread support for their efforts to resist the Rev Ian Paisley's attempts to have them expelled. Both the Ulster Unionists and the nationalist SDLP signalled that they did not back Mr Paisley's plan to bar the Progressive Unionist Party and the Ulster Democratic Party for failing to condemn the paramilitary death threat against the Portadown militant loyalist Billy Wright. A review was ordered at Grimsby Hospital following 13 complaints over 20 years against Michael Muldoon, a now retired consultant gynaecologist and obstetrician.

The review, which yesterday made 51 recommendations for improving the department, said that the death of Kay Hallberg, 40, could have been avoided, and that in the case of another patient, Carol Richardson, 35, Mr Muldoon "should have received further training in the surgical technique before undertaking it on his own".. The union is expected to announce tomorrow a "yes" vote in strike ballots at a further 10 companies.. A hospital has admitted "serious deficiencies" in its gynaecology department linked to the deaths of two women who underwent routine operations. Guards and catering staff at CrossCountry trains, North London Railways and MerseyRail Electrics will be working normally.Walk-outs will still take place at Regional Railways North East, North West Regional Railways, ScotRail and South Wales and West Railway.