Sincerest Form of Flattery

Trade unions are often expert at doling out advice to other people - telling employers how to run their business or governments how to run the country.

Sometimes what the unions say is reasonable and makes sense - at other times it lacks credibility - because they say one thing - then go on to do something completely different themselves.

Here's an example sent in by one of our regular readers - who is a member of Unite.

Unite - Results for the year

The pie chart set out below shows the make up of the expenditure of the Union in this year:

As a consequence of the plunging stock markets values caused by the recession, Unite’s net pension liability increased from £52.1 million to £137.3 million.

The worsening in the Union’s net pension liability was the overriding reason why Unite’s net assets fell from £181 million at the end of 2008 - to £103.4 million at the end of 2009.

In order to continue to generate a surplus from contribution income, the Union has undertaken a restructuring not just in respect of the number of employees - but also locations, systems, methods of operation and procedures.

At its meeting in May 2009, the Executive Council also approved the first increase in member contributions in three years at a rate less than the increase in average earnings over the period.

While the EC recognised that the middle of a recession is not an ideal time to ask members to
pay more, it was felt that the rise was justified in light of the industrial advantages provided by Unite for members and the hike in the level of dispute benefit which will allow members to better fight the battles they face daily.

One of the principles that the Union has set itself is to "live within its means" and to continue to be in positive territory only taking into account members' contribution income and without reliance on other income is an achievement, especially in the face of the onslaught of recession. This is also the basis upon which the financial strategy of the Union going forward over the next three year period is based.

In plain English, Unite is saying that the union is going to cut staff - improve efficiency, eliminate waste and duplication - and essentially refuse to live beyond its means.

So when Unite says the union is 'restructuring' - this is really just code language for big spending cuts - which are needed to safeguard the union's future.

In other words Unite acting in much the same as the government when it comes to balancing the books and - as we all know - imitation is the sincerest form of flattery.

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