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Labour funding will be hit hard by changes to political levy system Labour funding will be hit hard by changes to political levy system
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The chief source of funding of the Labour party – the trade union political funds – are likely to undergo big cuts as a result of a bill being introduced by the business secretary. The chief source of funding for the Labour party – the trade union political funds – are likely to undergo big cuts as a result of a bill being introduced by the business secretary.
The trade union bill, put forward by Sajid Javid, will create a shift from a current system whereby union members have to contract out from paying the political levy to one in which they have to contract in. The change, from a system of inertia to one in whichmembers actively choose to pay, is likely to lead to a big drop-off in income to the unions. The trade union bill, put forward by the frontbench Conservative MP Sajid Javid, will create a shift from a current system whereby union members have to contract out from paying the political levy to one in which they have to contract in. The change, from a system of inertia to one in whichmembers actively choose to pay, is likely to lead to a big dropoff in income to the unions.
A similar reform, in the 1927 Trade Union Act, resulted in a fall in the number of political levy payers from 3.5 million to 2 million, and a drop in party income of 20%. A similar reform, in the 1927 Trade Union Act, resulted in a fall in the number of political levy payers from 3.5 million to 2 million, and a drop in party income of 20%. Between May 2010 and December 2014, Labour received donations of £48.6m from trade unions, nearly half the £110m that the party took over that period, and illustrates how important the union movement remains to Labour’s electoral machine.
Between May 2010 and December 2014, Labour received donations of £48.6m from trade unions, nearly half the £110m that the party took over that period, and illustrates how important the union movement remains to Labour’s electoral machine. The Tory manifesto said in vague terms that a Conservative government “would legislate to ensure trade unions use a transparent opt-in process for union subscriptions”, but made no mention of the political levy. The legislation that will also set new thresholds for union strike ballots; the Tory manifesto made no mention of changing the way in which union members pay into their political funds.
The Tory manifesto said in vague terms that a Conservative government “would legislate to ensure trade unions use a transparent opt-in process for union subscriptions”, but made no mention of the political levy.
The legislation that will also set new thresholds for union strike ballots; the Tory manifesto made no mention of changing the way in which union members pay into their political funds.
Trade union officers and the Labour party seemed to have been caught unaware of the reforms on Wednesday, and were claiming that they appeared to breach the previous understanding that reforms to the funding of political parties would be conducted on a bipartisan basis.Trade union officers and the Labour party seemed to have been caught unaware of the reforms on Wednesday, and were claiming that they appeared to breach the previous understanding that reforms to the funding of political parties would be conducted on a bipartisan basis.
The Department for Business briefed that the trade union bill would include plans for the “introduction of a transparent opt-in process for the political fund element of trade union subscriptions. This will reflect the practice in Northern Ireland.” In Northern Ireland, trade unionists are required to contract into paying the political levy. The Department for Business briefed that the new billwould echo the practice in Northern Ireland – where trade unionists are required to contract into paying the political levy.
Trade unions pointed out that political funds are already subject to 10-year affirmitive ballot, and say this reform, once contemplated by then employment secretary Norman Tebbit, was not discussed in the election. Trade unions pointed out that political funds are already subject to 10-year affirmitive ballots, and say this reform, once contemplated by the then employment secretary Norman Tebbit in the 1980s, was not discussed during the election.
The bill will introduce a 50% voting threshold for union ballots turnouts (and retain the requirement for there to be a simple majority of votes in favour). In addition to the 50% minimum voting turnout threshold, there will be a requirement that 40% of those entitled to vote must vote in favour of industrial action in essential public services such as health, education, fire and transport. The bill will introduce a 50% voting threshold for union ballot turnouts (and retain the requirement for there to be a simple majority of votes in favour). In addition, there will be a requirement that 40% of those entitled to vote must be in favour of industrial action in essential public services, such as health, education, fire and transport.