Trade Union Bill (Eighth sitting)

Julie Elliott Excerpts

Thursday 22nd October 2015 Public Bill Committees

[The Chair]

I remind the Committee that with this we are discussing amendment 35, in clause 10, page 5, line 43, leave out from “unless” to the end of line 5 on page 6 and insert “it has been renewed”.

The amendment would define an opt-in notice as expired if on its expiry date it had not been renewed.

[Julie Elliott (Sunderland Central) (Lab)]

Good afternoon, Sir Edward. As ever, it is a pleasure to serve under your chairmanship and to see the speed at which you got here today to be on time.

I wish to speak in support of amendments 34 and 35, which were tabled in my name and those of my hon. and right hon. Friends. This Government and the previous Government, which the Conservative party was part of, have made great play of their desire to get rid of red tape, but the Bill is full of red tape and this clause makes it extremely difficult for trade union members to contribute to political funds.

In all the evidence we heard last week on political funds, no one said that they were a problem or that there were any problems associated with them. Further than that, the thrust of the Bill and these clauses is all about the links to funding the Labour party. That is important from my point of view, but we must not forget that political funds are used for other campaigning measures. Two of the most prominent campaigns that I was involved in during my time working for a trade union were the campaign to stop needle injuries for clothing and textile workers and the campaign to promote recognition of the subtle signs of domestic violence taking place and causing people to lose days at work. Political funds are used for a much broader range of things than just helping to fund the Labour party, although obviously that is an area that I am very concerned about.

The clause is politically motivated. To limit the ability of a political party to raise funds legitimately through its affiliated trade unions is nothing less than scandalous. It goes against 100 years of common practice, where any changes in this area have historically been agreed between parties through cross-party talks. If this is what the Government want to do, then instead of just taking a sledgehammer to what has been common practice all these years, they should call for cross-party talks and have a serious discussion about some of the issues in these clauses.

As it stands, the opt-in works. Because it works, no one is calling for change—except the Government. There is no problem with the opt-in. When I administered part of a political fund in my previous life before entering Parliament, no one raised a problem with it. If people wanted to opt out after they had opted in, that simply was not a problem. They contacted us, and we opted them out. I have to say that very few people choose to opt out, and that is bearing in mind that members of trade unions are not just Labour party supporters—they vote Labour, Liberal Democrat and SNP, and some even vote Conservative.

That said, let us look at the detail of the clause and the amendments. I firmly believe that the Government’s proposals are not workable; the thrust of the amendments is to make them workable. Our amendments are clear and straightforward and would extend the time limits to a more realistic timeframe. Almost 6 million people are members of trade unions in this country. It is absolutely ludicrous to think that unions could physically sign up, by paper, nearly 6 million people in three months. I do not know what resources the Government think trade unions have, but that is not a workable option. It is impossible. By default, the Government would not be giving the opportunity for trade union members to sign up, because it would be impossible for trade unions to make their full membership aware within the timescale set out in the Bill.

There are obviously issues around using electronic means to sign people up—we will come on to that in our consideration of later amendments, when I will go into more detail—but it would have a significant impact on the Bill if we were allowed to use e-means to sign people up. As my hon. Friend the Member for Cardiff South and Penarth outlined, the Bill goes way beyond the Companies Act 2006. That Act covers political donations from companies, which the Conservative party gets most of its funding from. The amendments tabled by my hon. Friends would bring the Bill into line with existing legislation, in particular in relation to the 10-year ballot to decide if a trade union holds a political fund or not. Let us remember that trade unions do not have to hold political funds, although I think they all do.

The existing legislation, which has been there for many years, is very workable. It is a well trodden path, and there are no problems with it. The way to make the opt-in measures practicable is to have sensible time limits and link them to existing legislation. Even the Minister has said, with regard to the code of conduct, that these things work well. Let us simplify the Bill and bring it together with the existing legislation. The bureaucratic nature of the Bill at the moment means that it simply will not work in practice. Removing the time limits would make it a workable piece of legislation, although I would still disagree with it.

Legislation covering the operation of political funds should be fair and reasonable, to be in line with all international agreements covering the rights of trade unions, freedom of association and a union’s ability to engage in political debates. This is key: we must allow unions the freedom to engage in political debates. As it stands, the Bill will not do that, so I urge the Government to support our amendments. If they want their Bill to be workable, bringing in sensible time limits is the only sensible way forward.

[Ian Mearns (Gateshead) (Lab)]

It is a pleasure to serve under your chairmanship again, Sir Edward. The clause represents nothing less than a cynical attempt by the Government to restrict the political rights of millions of working people in this country. The Government claim that trade union members will retain the right to opt in to political campaigns if they so wish, but in reality they know that this will effectively end trade unions’ ability to represent their members’ political aspirations.

Let us be clear from the outset: trade union political funds are not and never have been solely about donations to the Labour party. Indeed, a significant proportion of the TUC’s member unions—unions such as the Fire Brigades Union, the National Union of Rail, Maritime and Transport Workers, the National Union of Teachers, the Public and Commercial Services Union, NASUWT and the Association of Teachers and Lecturers—are not affiliated with and have no connection to the Labour party. There are, however, many millions of members across such unions.

Trade unions represent those members’ interests in the workplace. They negotiate wages, health and safety, conditions of service and various terms of employment. However, workers’ interests do not end in the workplace. They have family lives and interests outside of work. Workers care about the quality of their children’s education. They care about housing conditions, the quality of our health service, our public services and many other aspects of everyday life that cannot be negotiated with an employer. Trade union political funds exist for that very reason: to campaign on those topics and areas of interest.

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[Julie Elliott]

Will the hon. Gentleman give way?

[John Howell]

Not at the moment.

[Julie Elliott]

Just on that specific point.

[John Howell]

Not at the moment. If we look at Barclays bank, for example, we see that the level of tolerance of this is phenomenal. It is frightening to see that; in fact, it makes one wish to change one’s account straightaway.

In answer to the question asked some time ago by the hon. Member for Cardiff South and Penarth about other organisations that use these methods, I fully accept, as I said at the beginning, that electronic balloting—electronic voting—is gaining wider and wider significance and acceptability. However, the organisations using these methods are approaching that in a systematic way. All I wanted to say at this point was that tremendous caution needs to be exercised. I shall finish again with the opinion of Mr Killock that

“internet voting is a bad idea.”

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[Dr Cameron]

That is another well-made point. The report by Electoral Reform Services indicates that online voting is no less secure than postal balloting and that there are risks associated with both. Essentially, there will be a level of risk in any balloting process.

In conclusion, we are in a modern age and we want to engage people from all aspects of society. We must give people choice that is in line with their everyday lives. Yes, there has to be an element of caution, but that has to be evidence-based, not based on opinion. We have good evidence that electronic voting is already working in many spheres of our lives. I look forward to the Minister’s response.

[Julie Elliott]

I will try to be brief. Amendment 39 addresses electronic communications in regard to political funds. Electronic communication is essential in order to hit the Bill’s deadlines. As I have said before, there are almost 6 million trade union members in this country, and to communicate effectively with that number of people, and to get them to participate in a ballot, purely through the post is unrealistic.

The Bill says “either personally” and several other things. I am not sure whether the Government understand the way in which trade union branches are organised. Small workplace branches at the end of the street or in a place of work are few and far between. I have been a member of various branches in my several decades as a member of three different trade unions. At certain times I have been a member of a workplace branch, a branch particular to Sunderland, as I am at the moment, and, for many years of my career, a national branch based in London. Are the Government suggesting that travelling to the other end of the country is a reasonable thing to expect someone to do?

In evidence last week the Government showed a misunderstanding of who trade unions represent. Quite a number of trade union members are retired, because people do not stop being a trade union member when they retire. By virtue of being a retired member of society, such people are on a very limited income. In fact, many members that trade unions represent are on very small incomes. Do we really expect those people to be left seriously out of pocket when fulfilling their legitimate right to take part in a ballot to decide whether they want a political fund?

Moving on, electronic communication is absolutely common working practice in 2015. In every other arena, this Government want people to communicate electronically. I sat in a Committee Room for many weeks during the proceedings of the Welfare Reform Bill of 2012, in which the then Government introduced online applications for universal credit and discussed them for many other benefits. The Government therefore think electronically is a reasonable way to communicate sensitive personal information, the secure transmission of which leads to people getting the money that they need to live on, but they do not deem electronic communication acceptable for the communication of whether someone wants to contribute to a political fund. A debate was held just yesterday about registering to vote, which involves incredibly sensitive information such as national insurance numbers and dates of birth, but the Government view the electronic transmission of such information as acceptable.

We have also talked about the acceptance of online banking in this country. The hon. Member for Henley did not take my intervention, but regarding the 48% increase in banking fraud, I wonder what figure that is a percentage of. I think the hon. Gentleman was a tax adviser in his former life, and most tax returns—what more sensitive information is there than a tax return?—are done online. It is unbelievable to say that electronic communication is not widely accepted, is insecure and does not transmit information that is far more sensitive than a trade union member’s indication of whether they want their union to have a political fund.

Moving on to e-balloting, ballots and getting them right are absolutely key. As has been said previously in Committee, the balloting process is crucial. Everyone wants the result as quickly as possible, and an accurate result is essential for all sides to feel that procedures have been adhered to properly. In the evidence sessions, Opposition Members explored the fact that internal political ballots take place all the time, including for the Conservative mayoral candidacy in London. I also have much experience in secure workplace balloting, which is commonplace for recognition voting under right to recognition legislation. It is up to trade unions, their members and employers to decide in which format they want a ballot to take place, which varies enormously depending on whether the workplace is nine-to-five with people sitting at computers all day or a shift-pattern, industrial workplace. The range of balloting arrangements is enormous, but certification officers are always happy with such arrangements, and there are few challenges.

Secure workplace balloting is less disruptive and is over much more quickly than the methods proposed in the Bill. Let us not forget that trade union members could be taking part in a ballot that could affect their income. Many trade union members are low-paid workers, so the decision to lose a day’s pay is a significant decision that they would not take lightly. From the employer’s side, the quicker that it gets a result and thus a conclusion to what will have been by that point protracted negotiations will be to the benefit of all. I really cannot see why the Government are so opposed to e-balloting or secure workplace balloting.

Surely the aim of any part of the Bill is to get the maximum participation possible. That is what it should encourage, in line with the compliance measures for thresholds earlier in the Bill. On the one hand, the Bill seems to say, “We absolutely want almost everybody to take part in the ballot,” but on the other hand, it says, “We want to do everything to discourage and dissuade people from taking part by putting every possible obstacle in place.” This morning, the Minister acknowledged indirectly that electronic communication in other parts of the Bill is acceptable. I struggle to understand the Government’s opposition to our amendment and new clauses.

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Amendment 98 would remove the Government’s power to increase the minimum threshold over which unions are required to report on items of political expenditure from £2,000. Given that we have not seen the regulations and that this is one of the “Trust us, we’re the Government” clauses of the Bill, I want to understand whether—and, if so, when—they plan to increase the threshold, because the power could be used to compound even further the effects of this discriminatory clause, which affects only trade unions and not other political donors.

[Julie Elliott]

I have two brief points to make, because I know we are short of time. I want to speak in support of our amendments. The proposals in the clause are over-bureaucratic and, quite frankly, over-intrusive into the workings of trade unions.

The money raised in political funds is the most regulated money in politics anywhere in the world. It is transparent. If anyone looks at trade unions’ returns, they will see where the money has come from and where it is spent. To get to the level of declaring exactly what under £2,000 is spent on is absolutely ridiculous. Trade unions make other declarations and people make declarations about where trade union money is spent, and that links into the political funds. It is not just the political funds that have to make declarations; the Electoral Commission also gets spending declarations from trade unions.

A candidate who gets support from a trade union over a certain amount of money has to declare that to the commission. Election returns to returning officers throughout the country will also clearly state when trade unions have spent money on specific campaigns. What the clause asks for is already in the public domain, so I think it is nothing but politically motivated.

[Ian Mearns]

As my hon. Friend stated, information on all the funds that go directly from trade unions to political parties for campaigning is already open and transparent. What this clause does is put a fetter on trade unions’ other political spending for campaigns that will be imposed on no other part of civil society. I do not understand what is special about trade unions as membership organisations as opposed to organisations such as the women’s institute or the Mothers’ Union. It is an odd situation where a trade union has to be fettered to the extent that it has to release detail about every single campaign that it is involved in.

[Julie Elliott]

I thank my hon. Friend for his intervention. As I have said, there is no reason for this clause other than political motivation. If the Conservative party in government wants to look at how political parties are funded, I urge it to use the system of all-party talks that has worked for decades.

[Nick Boles]

I will try to reassure Opposition Members on a few points. They seem to be suggesting that this is somehow an egregious singling out of trade unions to require a level of transparency that does not apply to anyone else.

First, let me assure the hon. Member for Cardiff South and Penarth that employers associations will be covered by the provisions in clause 11. Even more importantly, companies are already required to declare the details of spending on political activity above £2,000 per annum and have been for a long time. To require the same of trade unions therefore does not seem unfair or unreasonable.

There is currently inconsistency in the level of detail provided in union returns on political expenditure. Some unions are transparent and provide detailed information in their annual returns to the certification officer. We want the example of those unions that provide clear information to be followed by all. That is why we propose that where political expenditure is more than £2,000 per annum, expenditure should be broken down to detail the different items of spending. An equivalent provision applies to companies.