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| Unite backs Ed Miliband over party funding plans | Unite backs Ed Miliband over party funding plans |
| (2 months later) | |
| Ed Miliband's Labour party reforms received a mixed reception on Tuesday with one union, the GMB, threatening to end all funding to the party while an unlikely alliance of Tony Blair and Unite's general secretary, Len McCluskey, greeted the proposals as a sign of bold leadership. | Ed Miliband's Labour party reforms received a mixed reception on Tuesday with one union, the GMB, threatening to end all funding to the party while an unlikely alliance of Tony Blair and Unite's general secretary, Len McCluskey, greeted the proposals as a sign of bold leadership. |
| Unite claimed the plan requiring individual trade unionists to opt into affiliating to the party, rather than being affiliated automatically by their union headquarters, would not change its ability to bankroll Labour from its political funds. McCluskey said he needed to look at how the plans would work in detail. | Unite claimed the plan requiring individual trade unionists to opt into affiliating to the party, rather than being affiliated automatically by their union headquarters, would not change its ability to bankroll Labour from its political funds. McCluskey said he needed to look at how the plans would work in detail. |
| It also emerged that Lord Whitty, the former Labour general secretary, turned down a request by Miliband to implement his plan, saying the political spadework had not yet been done. Miliband, late on Monday night, then turned to another former party general secretary, Lord Collins, who insists he will push through the Labour leader's plans. | It also emerged that Lord Whitty, the former Labour general secretary, turned down a request by Miliband to implement his plan, saying the political spadework had not yet been done. Miliband, late on Monday night, then turned to another former party general secretary, Lord Collins, who insists he will push through the Labour leader's plans. |
| Miliband wants his plan implemented by the next general election, although there is scepticism over whether the timetable is achievable, and how much can be reformed without rule changes. | Miliband wants his plan implemented by the next general election, although there is scepticism over whether the timetable is achievable, and how much can be reformed without rule changes. |
| The reforms, prompted by claims of vote rigging by Unite in a parliamentary selection in Falkirk, have the potential to trigger wider changes to the role of the unions in leadership elections. | The reforms, prompted by claims of vote rigging by Unite in a parliamentary selection in Falkirk, have the potential to trigger wider changes to the role of the unions in leadership elections. |
| In his main proposals, ending what he described as "hated machine politics", Miliband said, in a speech in London: "I do not want any individual to be paying money to the Labour party in affiliation fees unless they have deliberately chosen to do so. Individual trade union members should choose to join Labour through the affiliation fee, not be automatically affiliated." | In his main proposals, ending what he described as "hated machine politics", Miliband said, in a speech in London: "I do not want any individual to be paying money to the Labour party in affiliation fees unless they have deliberately chosen to do so. Individual trade union members should choose to join Labour through the affiliation fee, not be automatically affiliated." |
| The reform will mean individual trade unionists will have made a conscious decision to fund the party as an affiliated supporter. McCluskey speculated that the reform could see the number of Unite members affiliated to the party fall from 1 million to below 100,000, an annual cut in funding to the party of £2.5m. | The reform will mean individual trade unionists will have made a conscious decision to fund the party as an affiliated supporter. McCluskey speculated that the reform could see the number of Unite members affiliated to the party fall from 1 million to below 100,000, an annual cut in funding to the party of £2.5m. |
| But Miliband, below, also said there was no need to change the current law requiring trade unionists to opt out, rather than opt into paying the political levy – the basis of union political funds. A small part of a union's subscription takes the form of a political levy, and unless the individual opts out, automatically goes into a union political fund. | But Miliband, below, also said there was no need to change the current law requiring trade unionists to opt out, rather than opt into paying the political levy – the basis of union political funds. A small part of a union's subscription takes the form of a political levy, and unless the individual opts out, automatically goes into a union political fund. |
| Currently, the union's leadership then decide how many levy payers to affiliate automatically to the Labour party paying an annual fee of £3 per member. In future a union will have to ask the union member if he or she wishes to be affiliated to the party, so it is a conscious decision to support the party. | Currently, the union's leadership then decide how many levy payers to affiliate automatically to the Labour party paying an annual fee of £3 per member. In future a union will have to ask the union member if he or she wishes to be affiliated to the party, so it is a conscious decision to support the party. |
| If, in the case of Unite, only 100,000 of its 1 million political levy-payers say they want to be affiliated to Labour, income to the party goes down, and the money remaining in the union's political fund correspondingly rises. It would be open for a union to donate directly to Labour from this fund, but if it becomes clear very few party members are choosing to affiliate, it will be harder for the union leadership to justify making big donations to Labour. | If, in the case of Unite, only 100,000 of its 1 million political levy-payers say they want to be affiliated to Labour, income to the party goes down, and the money remaining in the union's political fund correspondingly rises. It would be open for a union to donate directly to Labour from this fund, but if it becomes clear very few party members are choosing to affiliate, it will be harder for the union leadership to justify making big donations to Labour. |
| Conservatives said this means the unions can replace lost income from affiliation fees by simply increasing direct donations to the party from political funds . | Conservatives said this means the unions can replace lost income from affiliation fees by simply increasing direct donations to the party from political funds . |
| McCluskey said: "Miliband made it clear the political levy will stay as it is. If he wants to find ways to get more individual trade unionists active in the party, exercising their own judgment on policy and people, I would join him. Done right, this could be a 21st-century way of ensuring working-class influence in the party, just as traditional affiliation has been hitherto" | McCluskey said: "Miliband made it clear the political levy will stay as it is. If he wants to find ways to get more individual trade unionists active in the party, exercising their own judgment on policy and people, I would join him. Done right, this could be a 21st-century way of ensuring working-class influence in the party, just as traditional affiliation has been hitherto" |
| Blair gave Miliband's leadership his most unqualified endorsement saying: "It is a defining moment. It is bold and it is strong, it's real leadership," adding: "Frankly, I should probably have done it as leader." | Blair gave Miliband's leadership his most unqualified endorsement saying: "It is a defining moment. It is bold and it is strong, it's real leadership," adding: "Frankly, I should probably have done it as leader." |
| In other proposals Miliband called for: | In other proposals Miliband called for: |
| • Restrictions on MPs second jobs, such as barristers, and an end to conflict of interests. | • Restrictions on MPs second jobs, such as barristers, and an end to conflict of interests. |
| • The introduction of primary elections among registered supporters for key posts such as the Labour nomination for London Mayor. He said he would consult on extending primaries to parliamentary nominations. | • The introduction of primary elections among registered supporters for key posts such as the Labour nomination for London Mayor. He said he would consult on extending primaries to parliamentary nominations. |
| • Caps on funding in Labour campaigns to be nominated MP or Euro MP. | • Caps on funding in Labour campaigns to be nominated MP or Euro MP. |
| • A call for the all party talks on party funding that were ended last week to be revived. But the GMB's general secretary, Paul Kenny, was critical, warning he may propose to his executive in September to end future funding of the party. | • A call for the all party talks on party funding that were ended last week to be revived. But the GMB's general secretary, Paul Kenny, was critical, warning he may propose to his executive in September to end future funding of the party. |
| He said: "Ed Miliband said today that he does not want any money from trades unions' political funds which has not been explicitly and freely given on an individual consent basis for the sole purpose of funding Labour party activities. This intent ultimately will reduce GMB funding by a very significant but as yet unquantified amount." | He said: "Ed Miliband said today that he does not want any money from trades unions' political funds which has not been explicitly and freely given on an individual consent basis for the sole purpose of funding Labour party activities. This intent ultimately will reduce GMB funding by a very significant but as yet unquantified amount." |
| "The desire of Ed Miliband expressed today will most likely require GMB to ballot those members currently paying the political fund to see if they want any part of it to go to the Labour Party. The changes Miliband seeks to make with regard to union affiliation fees will mean that none of the funds that would have gone in political affiliation fees will be available to fund Labour Party operations". | "The desire of Ed Miliband expressed today will most likely require GMB to ballot those members currently paying the political fund to see if they want any part of it to go to the Labour Party. The changes Miliband seeks to make with regard to union affiliation fees will mean that none of the funds that would have gone in political affiliation fees will be available to fund Labour Party operations". |
| A GMB official said : "How we got from Falkirk to here in 10 days is a complete mystery". | A GMB official said : "How we got from Falkirk to here in 10 days is a complete mystery". |
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