Draft Trade Union Act 2016 (Political Funds) (Transition Period) Regulations 2017

Gill Furniss Excerpts

Wednesday 25th January 2017 General Committees

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I, too, declare that I am a proud member of the GMB. As the Minister has said, the regulations set a transition period of 12 months, beginning on 1 March 2017. The Trade Union Act regulations affecting new members of trade unions that have political funds will then come into effect on 1 March 2018.

The Trade Union Act is a partisan, poorly drafted and divisive piece of legislation that puts to bed any notion that the Government are acting for working people across the UK. It is a threat to political activity and campaigning by trade unions. It is a direct and deliberate threat to the Labour party’s funding from affiliated trade unions, while Tory funding sources are left untouched, and breaks the well-established consensus on the issue.

The manner in which the regulations have been consulted on and drafted is entirely consistent with the Government’s approach to date. They initially proposed a transition period of 12 weeks—[Interruption.]

[The Chair]

Order. The shadow Minister should be listened to in silence.

[Gill Furniss]

Thank you, Mr Stringer. When the Bill went to the other place, the Government had initially proposed a transition period of 12 weeks, but the House of Lords Select Committee on Trade Union Political Funds and Party Political Funding recommended a minimum of 12 months.

On 16 March, the first day of the Bill’s Report stage in the other place, the Government suffered several defeats, including on the transition period. By a majority of 148, the other House voted for an amendment restricting the new political fund opt-in to new members; extending the transition period from 12 weeks to 12 months; removing the need to renew opt-ins every five years; and allowing unions to use methods other than postal for the purposes of opting in.

During the Bill’s passage through the other House, clause 11 was added and ensured that, before beginning the transition period, the Secretary of State must consult the certification officer and all trade unions that have a political fund. The Government claim that they have satisfied that clause, with the Department for Business, Energy and Industrial Strategy conducting an informal consultation with trade unions and the certification officer. It seems, however, that that lightweight bit of research was more focused on coming up with a transition cost than actually listening to trade union concerns; the Government heard concerns and objections, but then did exactly what they wanted to do in the first place.

It seems to me that a consultation process implies actually taking into account the concerns and objections that stakeholders might have. The proposed 12-month transition period is completely inadequate and fails to take into account the complexity involved in making the required changes. Many of my hon. Friends have made that point very well today, and I will outline some of the reasons why that period is insufficient. For example, I note as others have that retailers were granted two years to prepare for new charges on plastic bags, which was far less complicated than what is envisaged under the regulations.

Unions are democratic organisations, with established procedures and hierarchies designed to support their democratic operation. To change the rules is a lengthy process; branches must be consulted before a final change can be approved at a conference.

It has been suggested that rule changes could be agreed through a majority vote at a meeting of a union’s executive committee, under section 92 of the Trade Union and Labour Relations (Consolidation) Act 1992. However, the proposed process is not consistent with most union rules or practices. The Government have previously argued that the Trade Union Act was designed to increase transparency and to encourage participation in union democracy. Under the terms of this statutory instrument, unions will be forced to act in a way that could damage or undermine their democratic structures in order to comply with the Act. That position is not exactly consistent.

If the Government were actually concerned about increasing democratic engagement by union members, they would not have delayed the implementation of electronic balloting—a proposal on which they were defeated in the other place and which was included in the Act through a cross-party amendment.

[Stephen Doughty]

My hon. Friend is making a strong point. During the evidence sessions on the Trade Union Bill we heard many times from Conservative Members about alleged undemocratic structures operating in unions and decisions being taken by small groups of people. Does she agree that it is absurd that in reality the Government are asking us to override those long-established democratic structures of unions?

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[Gill Furniss]

My hon. Friend is absolutely right.

Several unions, including USDAW, have set out their response to the BEIS consultation, conducted in August 2016, and to the certification officer’s consultation on the new models, conducted on 22 November 2016. The latest they needed to receive the final model rules from the certification officer in time to make a rule change in a 2017 conference was by 6 January 2017. Those rules were not received from the certification officer until Monday 16 January, and therefore it is not possible for the unions to make the rule changes until April or May 2018.

The Government’s summary of unions’ responses to the August consultation even states:

“A number of Unions said they have conferences scheduled for April/May 2018.”

That is where rule changes can be made, which is a different procedure, so why are the Government rushing to implement the legislation on 1 March 2018, just weeks before unions are due to hold their conferences to change their rules to comply?

[Chris Stephens]

Is there not another practical application? Under the proposed changes to the check-off arrangements, trade unions will have to discuss with employers an increase in subscriptions to comply with the terms of legislation, but the required statutory instrument has still not come before the House.

[Gill Furniss]

The hon. Gentleman makes a very good point. As a result of that legislation, unions will need to renegotiate check-off arrangements with hundreds, and in some cases thousands, of employers across the public and private sector. According to the recently issued model rules, securing approval from the certification officer alone could take up to five weeks.

[Ms Eagle]

Does my hon. Friend agree that trying to change the rules for trade unions by a non-usual route, as suggested by the Minister—allowing rule changes by a secondary route to that which is normally allowed—to comply with these wholly irresponsible regulations creates the potential for real burdens to be placed on how unions operate internally? Does she also agree that unions’ rulebooks are an important part of how they operate their internal democracy and ensure their stability as they move forward as organisations? Is there any other civic society organisation that the Government have decided to treat in that way?

[Gill Furniss]

My hon. Friend makes a very good point. The rulebook is there for the benefit of everybody—employers and members—and it is a well-trodden path that has always succeeded. I ask the Minister whether there is another example of anyone in civic society who has been treated in this way. That would be an interesting concept.

[Christian Matheson]

I can answer my hon. Friend’s question. There are other elements of civil society that the Government are treating in this way: charities and campaign groups. The Government have cut their funding and restricted their campaigning activities so that they do not attack the Government.

[Gill Furniss]

I think there may be some merit in that point.

I will make some progress now. Let us be clear: the Trade Union Act is the most significant, sustained and partisan attack on ordinary workers in a generation, and the fact that the Government claim that it will increase fairness for trade unions and workers, while forcing them to act against their own democratic processes and principles by rushing through these changes, once again reveals the hypocrisy.

Will the Minister concede that the Government have been hasty in their approach to implementing the Act at the potential expense of trade unions and workers? Will they extend the transition period—which, for the reasons we have already outlined, is insufficient—by at least six months, so that legislation can be followed and trade union rules, processes and democratic principles properly respected?

For all the reasons I have laid out, I am afraid I cannot support the draft regulations and we wish to divide the Committee on the matter.

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[Margot James]

I am not going to proceed down that path at this point. As required by the Act, we have consulted and sought views on the length of the transition period.

[Gill Furniss]

rose—

[Margot James]

Sorry, I am not going to give way again; I have been very generous. [Interruption.] As it is the shadow Minister, I will give way, but for the last time.

[Gill Furniss]

Will the Minister take on board what the right hon. Member for West Dorset said and give us some flexibility in implementing the transition? She seems to have indicated that she may look at that, but it would be good to put on the record whether that will occur.

[Margot James]

I can only repeat what I said to the hon. Member for Glasgow South West. I am not going to repeat myself again. The regulations implement the Act’s provisions by providing for a 12-month transition period. We have taken a proportionate approach on the political funds opt-in transition.