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

Debate between Gill Furniss and Stephen Doughty

Wednesday 25th January 2017 General Committees

[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?