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Labour-union link and Miliband's plans to reform it – Q&A Labour-union link and Miliband's plans to reform it – Q&A
(2 months later)
What is Ed Miliband proposing and not proposing?What is Ed Miliband proposing and not proposing?
He is not proposing any change to the way in which unions gather their political funds. Union members will continue to have to opt out of paying the political fund by filling a form. Despite this requirement in some unions, including Unite, the numbers refusing to pay the political levy is quite high. In one part of the public service union Unison members are asked to opt into paying the political levy.He is not proposing any change to the way in which unions gather their political funds. Union members will continue to have to opt out of paying the political fund by filling a form. Despite this requirement in some unions, including Unite, the numbers refusing to pay the political levy is quite high. In one part of the public service union Unison members are asked to opt into paying the political levy.
Miliband is proposing that the three million union members who pay the levy be asked for the first time whether they want to affiliate to the Labour party so this becomes a conscious choice. At present the headquarters of a Labour-affiliated union decides how many of its political fund payers it wishes to affiliate annually to the party. That in turn determines how many votes the union has at the Labour conference.Miliband is proposing that the three million union members who pay the levy be asked for the first time whether they want to affiliate to the Labour party so this becomes a conscious choice. At present the headquarters of a Labour-affiliated union decides how many of its political fund payers it wishes to affiliate annually to the party. That in turn determines how many votes the union has at the Labour conference.
Why does he want to make this change?Why does he want to make this change?
Miliband believes it opens up the possibility that there is a genuine breathing relationship between trade unions and the party. It would also mean that the party locally and nationally could contact these affiliated members, something the unions say cannot be allowed at present owing to data protection laws. He also thinks post-Falkirk he has to show leadership. The Tories' growing attack line is that he is weak.Miliband believes it opens up the possibility that there is a genuine breathing relationship between trade unions and the party. It would also mean that the party locally and nationally could contact these affiliated members, something the unions say cannot be allowed at present owing to data protection laws. He also thinks post-Falkirk he has to show leadership. The Tories' growing attack line is that he is weak.
Would Labour go bankrupt?Would Labour go bankrupt?
It depends partly on how many political levy payers say they want to affiliate. It is bound to be many fewer than currently automatically affiliated to the party by unions. But under the proposals, the unions will still be able to retain political funds. If there is a fall in voluntary affiliations – which currently cost £3 a member – these political funds will be larger than now.It depends partly on how many political levy payers say they want to affiliate. It is bound to be many fewer than currently automatically affiliated to the party by unions. But under the proposals, the unions will still be able to retain political funds. If there is a fall in voluntary affiliations – which currently cost £3 a member – these political funds will be larger than now.
Unions will be free to make one-off donations to the party as now, or give to one-off campaigns, specific MPs or regions. In some ways they have greater discretion. But Labour has said in the past it opposes large donations ranging from above either £10,000 or £50,000 a year. If it imposes that cap, the party will be taking a financial gamble. If it does not, union funding might simply switch to a different funding channel of large one-off donations. Miliband says he would accept this cap on union donations as part of cross-party fundingUnions will be free to make one-off donations to the party as now, or give to one-off campaigns, specific MPs or regions. In some ways they have greater discretion. But Labour has said in the past it opposes large donations ranging from above either £10,000 or £50,000 a year. If it imposes that cap, the party will be taking a financial gamble. If it does not, union funding might simply switch to a different funding channel of large one-off donations. Miliband says he would accept this cap on union donations as part of cross-party funding
How dependent is the party on union funding?How dependent is the party on union funding?
Not as much as is often said. In the last quarter the unions provided 20% of funding. Individual donations and membership fees were the chief source of income.Not as much as is often said. In the last quarter the unions provided 20% of funding. Individual donations and membership fees were the chief source of income.
What are the wider implications for Labour's constitution?What are the wider implications for Labour's constitution?
The unions will stay on the national executive and national policy forum and remain affiliated to local parties. As it stands the unions will retain a 50% vote at the party conference. But that may change if few union members choose to affiliate. Miliband is ambivalent.The unions will stay on the national executive and national policy forum and remain affiliated to local parties. As it stands the unions will retain a 50% vote at the party conference. But that may change if few union members choose to affiliate. Miliband is ambivalent.
How soon will this happen?How soon will this happen?
Miliband says as soon as possible, insisting he wants to seize the moment. He wants the changes implemented before the election. But he says these are big changes and will take time. He has asked Lord Collins, a former party general secretary, to look at how the proposals can be implemented. Rule changes may be needed and these could take two years.Miliband says as soon as possible, insisting he wants to seize the moment. He wants the changes implemented before the election. But he says these are big changes and will take time. He has asked Lord Collins, a former party general secretary, to look at how the proposals can be implemented. Rule changes may be needed and these could take two years.
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