MSF, the white collar union , believes regional councils are the best way to regenerate areas hit by the manufacturing crisis.
The union says the UK is losing out to European countries who have elected regional representatives to champion economic development.
Meanwhile a TUC report urges unions to develop a proactive and coherent response to regional government.
The report, entitled Devolution and the Regions, said unions must 'think regionally' instead of in top-down terms, and assess if their structures are equipped to make the best of devolved politics.
'The changing nature of governance
calls for a more holistic approach,' it adds. 'Regional TUCs now have to demonstrate commitment and dynamism with a wide array of internal and external partners.'