Union Bosses
I was rather puzzled by the news reports about Len McCluskey and the Unite boss's £400,000 'loan' from his own union to buy a £700,000 property in London.
Because I was a beneficiary of financial assistance from my union, NUPE (now Unison), when I took up a promoted union post many years ago, but there were rules and conditions attached.
As I recall, the scheme took into account an individuals's financial circumstances and applied in the same way to everyone who qualified - not just the general secretary.
The scheme was not intended to help someone build up a property portfolio by buying a second or third home, for example, so they could be required to sell a property already in their possession.
The scheme was also accessed at the time the person involved took up their new appointment which in Len McCluskey's case was January 2011.
So why is the Unite boss seeking such help more than five years after his election as general secretary and if he was already a senior London-based official, why was financial assistance required in the first place?
The Guardian reports on the breaking story which has more questions than answers at this stage, but the biggest one of all for me is why would an equity share scheme be attractive for Unite?
Especially as such a deal ties up £400,000 chunk of union members' money when no doubt this could be put to much more practical use.
Maybe this arrangement allows Len to live in a £700,000 property while paying for only his minority share of around £270,000 but as the full details of the scheme have yet to be disclosed no one can say for sure, at this stage anyway.
http://www.theguardian.com/politics/2016/sep/08/unite-union-gave-len-mccluskey-400000-loan-to-buy-london-flat
Unite union gave Len McCluskey £400,000 'loan' to buy London flat
Union insider says there will be ‘much disquiet’ over payment of £417,000 for leader’s apartment under equity share deal
McCluskey’s flat cost £695,500 in February. Photograph: Teri Pengilley for the Guardian
By Rajeev Syal - The Guardian
Unite the union has contributed more than £400,000 towards the purchase of a £700,000 central London flat for its leader, Len McCluskey, Land Registry documents show.
McCluskey, who has been described as Labour’s kingmaker, became the owner of the two-bedroom apartment near Borough market just south of the river Thames in February this year.
'I was politicised by the docks': the rise of Len McCluskey
Unite put forward 60% of the cost of the flat – amounting to £417,000 – after signing an agreement with McCluskey.
The disclosure comes at a time when many of Unite’s members are struggling. One union insider said there would be “much disquiet” over the arrangement.
The union said the purchase agreement was not a loan but an equity share arrangement. It added that this type of equitable agreement was commonly used to help general secretaries buy homes in London and insisted the agreement would raise more money for its members when the property was eventually sold.
By Rajeev Syal - The Guardian
Unite the union has contributed more than £400,000 towards the purchase of a £700,000 central London flat for its leader, Len McCluskey, Land Registry documents show.
McCluskey, who has been described as Labour’s kingmaker, became the owner of the two-bedroom apartment near Borough market just south of the river Thames in February this year.
'I was politicised by the docks': the rise of Len McCluskey
Unite put forward 60% of the cost of the flat – amounting to £417,000 – after signing an agreement with McCluskey.
The disclosure comes at a time when many of Unite’s members are struggling. One union insider said there would be “much disquiet” over the arrangement.
The union said the purchase agreement was not a loan but an equity share arrangement. It added that this type of equitable agreement was commonly used to help general secretaries buy homes in London and insisted the agreement would raise more money for its members when the property was eventually sold.
