For only the second time in his eight-year tenure as Britain?s Prime Minister, Tony Blair faces an embarrassing defeat on policy at the Labour Party?s annual conference, as his government yesterday ruled out the possibility of compromise with British unions on privatization issues. Outraged over what has been widely perceived as a betrayal by Mr. Blair?s ?New? Labour over the impact of privatization schemes (see WIT for Sep. 9, 2002), Britain?s unions will likely command the majority needed to pass a non-binding but highly symbolic resolution calling for a halt to Blair?s Private Finance Initiative at the conference. If pubic sector union Unison, and general union GMB are able to convince the Blair government aligned Transport and General Workers? Union not to break ranks with the rest of the labor movement, promises of a conference revolt by the Unison leadership will almost certainly be realized in a most damaging way for Mr. Blair.