Union Funds


The BBC web site had a useful summary of new employment tribunal laws that have just come into force which are largely sensible, especially the measure that can result in stiff fines against employers over poor employment practices.

I see the trade unions are still complaining about the charges that were introduced last year for people to bring a case to an Employment Tribunal, but quite why the unions should be complaining is a mystery to me.

Because they have plenty of cash to fund a member's claim to an Employment Tribunal and the money is refunded, of course, if the case is successful.

In my experience over equal pay the problem has not been to do with money, instead it has come down to a lack of fight on the part of the trade unions - their reluctance to challenge the big council employers whom they were far too close to for party political reasons.  

But if the unions ever did have a problem with money, they could always divert some of the cash they have given to the Labour Party in recent years - £11 million by Unite alone apparently since Ed Miliband became Labour leader in 2010.   


New employment tribunal laws come into force

Employers face fines if they have poor workplace practices

New rules aimed at reducing the number of employment tribunals have come into force.

Staff wanting bring a case of unfair dismissal or discrimination now have to first notify the conciliation service Acas to see if the dispute can be resolved.

Another change sees employers facing fines if they lose a case at tribunal.

Ministers said the changes would help avoid "stress, time delays and excessive costs".

Previous government measures include the introduction last year of fees for workers looking to take their employers to tribunal.

'Welcome incentive'


This led to a 79% fall in the number of applications but was strongly criticised by trade unions.

Under the new rules, which have come in at the start of the 2014/15 tax year, staff or employers will be required to consult Acas before having access to a full tribunal.

Acas, which stands for Advisory, Conciliation and Arbitration Service, was set up to improve employment relations and prevent tribunals.

Another change in the law will mean that if an employer loses a case brought by an employee or former employee, and is shown to have especially poor workplace practices, it could be fined up to £5,000 on top of any back pay that is due to the employee.

The TUC said the fines would create a welcome new incentive for bosses to respect the rights of their staff rather than risk increased financial penalties.

What does Acas do?

  • Acas stands for Advisory, Conciliation and Arbitration Service - which sums up its primary functions
  • Acas has existed in different incarnations since 1896
  • It works with employers and staff to improve work relations and solve disputes
  • It also provides training and free advice
The Confederation of British Industry said more work was needed to change the culture of the system of solving disputes.

Employment relations minister Jenny Willott said the Early Conciliation scheme was "good news for employees and employers".

She said: "It will help them resolve their workplace disputes, avoiding the stress, time delays and excessive costs all too often associated with tribunals."

Also coming into force in the new tax year is a rise in National Insurance allowances for employers, a fall in corporation tax to 21% and a rise in the ISA allowance to £5,940.

Union Muscle (4 April 2014)

I can't take Len McCluskey too seriously when he starts trying to throw his weight around because he comes across to me much more like Spongebob Musclepants than Jimmy Hoffa.

Anyway, I think that Len and Unite are perfectly entitled to go off and start up a new political party to rival Labour because they've given around £11 million to Labour party since Ed Miliband was elected leader (with trade union votes) - but what do they have to show for all that dose.

If you ask me, ordinary Unite members would have been much better served if their union had invested some of that money campaigning for Equal Pay in Scotland and elsewhere - instead of handing it over to Labour HQ in London to be spent on God knows what.

The only fly in the ointment for Len and his chums is that only penny numbers of grassroots Unite members support their political outlook - very few share the old-fashioned, left-wing, political views which got Len to where he is today and I'd hazard a guess that lots of Unite members in England actually support UKIP.

So I hope Len's meeting today with Ed Milband goes well - in some ways the two men deserve each other for manipulating the Labour leadership election in such a way that the successful candidate (Ed) was not the choice of individual Labour Party members.   

Unite union boss Len McCluskey threatens to launch party to rival Labour

Ed Miliband will face well-funded challenge from left if he loses 2015 election


By ANDY MCSMITH - The Independent

Labour’s biggest financial backer has threatened to sever its link with the party altogether if Ed Miliband loses next year’s general election – raising the prospect of it having to compete for votes with a rival Workers’ Party lavishly backed by union money.

Len McCluskey, General Secretary of Unite, forecast that the 2015 election will bring defeat for Labour if the party campaigns on what he called “a pale shade of austerity”, rather than the more robust left-wing political programme that he and his union allies want.

The union leader signalled that a rival party could be created to challenge Labour if it does not win next year.

If carried out, the threat would plunge the left in Britain into its biggest crisis for 33 years – resulting in the most significant split since a group of Labour MPs broke away to form the Social Democratic Party in 1981, dividing the anti-Tory vote in half.

Mr McCluskey revealed that he and Mr Miliband rarely speak to one another, though they are due to meet this week.

Speaking about the consequences of a defeat next year, he said: “I fear for the future of the Labour Party.”

Mr McCluskey implied that a newly formed Workers’ Party would then join the Liberal Democrats and others in campaigning for MPs to be elected under a system of proportional representation (PR), to give the new party a better chance of gaining a toehold in Parliament.

“I’ve always taken the traditional position of being opposed to PR,” Mr McCluskey said. “That’s because I thought that Labour would never get into power [under PR] and we’d never get a socialist Valhalla.

“I’ve given up on my socialist Valhalla, so I’m now rethinking my position on PR. If a new party emerged, a new Workers’ Party, then you may well find that I’m in favour of PR.”

Mr McCluskey’s comments to a press gallery lunch in the House of Commons were a calculated push for the Labour leader to draw up a more radical election manifesto than currently planned.

“My challenge to the Labour leadership is ‘Demonstrate you’re on our side, let’s win the next election, let’s give hope to ordinary people’. If that happens: fantastic,” he said.

Among the ideas he said would command popular support are nationalisation of the train operating companies and a sharp increase in the national minimum wage. It is understood that the provisional plan in the event of an election defeat would involve Unite, the country’s biggest union, and the GMB, the third-biggest union, cutting their ties with Labour simultaneously. They would join forces with the RMT rail union – which disaffiliated under the leadership of the late Bob Crow. The combined membership of the three unions is almost 2.1 million.

“Within Unite’s rules we are affiliated to the Labour Party and cannot give financial support to any other party, so the rules would have to be changed,” he said.

“Can I ever envisage a rules conference voting to disaffiliate from Labour? I can, and that’s a challenge to Ed Miliband. Because I believe the Labour Party is at a cross roads. Labour has to demonstrate that it is our voice.

“We are at a stage in politics where just bumbling along in the old ways is not going to happen any more. Unless Ed and the leadership demonstrate that they are on our side, then I can envisage a debate taking place if Labour lost the election next May.

“I fear for the future of the Labour Party.”

Ever since Ed Miliband introduced radical changes to Labour’s relationship with the trade unions, there have been rumours that senior figures within Unite were considering whether to break away to create a new party.

Unite’s huge influence within the Labour was pivotal in securing Ed Miliband’s victory in 2010. But relations with the Labour leader soured during the infighting in Falkirk – where Unite was involved in recruiting new party members in the hope of securing the seat for Karie Murphy.

Mr McCluskey told the journalists that his relationship with the Labour leader is “OK”. He added: “How often do I see Ed? I can’t remember the last time I’ve seen him: not that often. But I am due to see him on Thursday.”

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