Cronyism vs Trade Unionism
"Since when was trade unionism about filling your boots at the members' expense?" - seems like the obvious question to ask in light of this damning BBC report into the activities of Labour MP Ian Lavery, a high-profile member of Jeremy Corbyn's shadow cabinet.
Now the NUM Northumberland Area has not been a trade union, in the normal sense, for many years because most, if not all, of its members are long retired and so did not require the usual kind of trade union support or representation at the workplace.
Yet its grandly named 'General Secretary' apparently received a salary worth tens of thousands of pounds for a period 18 years and also had the gall to accept a £72,500 redundancy payment, even though Mr Lavery left his employment voluntarily to take up another well paid job at Westminster as a Labour MP.
The whole business stinks to high heaven if you ask me, which the Labour leader must realise as a former trade union official himself.
The affair also has echoes of the £400,000 'loan' provided to the Unite boss Len McCluskey in order to help buy a swish new apartment in central London, even though McCluskey (67) had been living and working in London for 26 years.
No one can reasonably defend using members' money in this way.
http://www.bbc.co.uk/news/uk-41688280
Ian Lavery MP received £165,000 from trade union
By John Sweeney and Ed Brown - BBC Newsnight
Image copyright - SHUTTERSTOCK
MP Ian Lavery received £165,000 from the 10-member trade union he ran.
We have learned this from the trade union regulator which has now released a report into Mr Lavery's actions as general secretary of the NUM Northumberland Area.
He will now face questions on his record over a number of disputed payments by the union he ran.
Mr Lavery, who is the chairman of the Labour Party, denies any wrongdoing.
Ian Lavery is a coming power in the land, Jeremy Corbyn's general election joint co-ordinator and chairman of the Labour Party. If the Conservatives fall, he's most likely destined for high office. But, perhaps, for one thing: his refusal to answer a simple question asked by BBC Newsnight last year: "Did you pay off the mortgage?" BBC Newsnight asked him nine times without getting a reply.
MP Ian Lavery received £165,000 from the 10-member trade union he ran.
We have learned this from the trade union regulator which has now released a report into Mr Lavery's actions as general secretary of the NUM Northumberland Area.
He will now face questions on his record over a number of disputed payments by the union he ran.
Mr Lavery, who is the chairman of the Labour Party, denies any wrongdoing.
Ian Lavery is a coming power in the land, Jeremy Corbyn's general election joint co-ordinator and chairman of the Labour Party. If the Conservatives fall, he's most likely destined for high office. But, perhaps, for one thing: his refusal to answer a simple question asked by BBC Newsnight last year: "Did you pay off the mortgage?" BBC Newsnight asked him nine times without getting a reply.
Media caption - Newsnight's John Sweeney confronts Labour MP Ian Lavery
The answer, it turns out, is no. He didn't pay off his mortgage. The union of which he was general secretary for 18 years, the NUM Northumberland Area, paid it off and paid him much more besides.
Last year, both Jeremy Corbyn and the parliamentary watchdog cleared Mr Lavery. He denies any wrongdoing.
The reason we know more about Mr Lavery's peculiar mortgage arrangements is because the trade union regulator, the Certification Officer, Gerard Walker, examined the books after investigations by BBC Newsnight and the Sunday Times. Mr Lavery ran the NUM Northumberland Area for 18 years until he stepped down in 2010 to become the MP for Wansbeck.
The regulator's findings are available online.
The regulator found that that the Northumberland Provident and Benevolent fund had lent Mr Lavery £72,500 to buy a house in 1994. 13 years on, the union Mr Lavery was then running forgave the loan to Mr Lavery. So he was £72,500 the richer.
But there's more. He'd been paying into an endowment fund to pay back the capital cost of the house. It had underperformed, but it still paid out £18,000. The regulator found Mr Lavery kept that too.
And that's not all.
The regulator found that in 2005, Mr Lavery sold a 15% stake in his house to the Union for £36,000. In 2013 the house was worth less, so he bought it back from the union for £27,500 - a notional profit of £8,500.
And then there's Mr Lavery's "termination payments", totalling £89,887.83. However, that total is a matter of some dispute between him and the union.
The regulator says that neither Mr Lavery nor the union could provide documentary evidence of the process or the decision by which Mr Lavery was made redundant - or why, given he was leaving for a job as an MP, he needed any redundancy payments at all.
Adding £89,887 he received for his undocumented redundancy package to the £72,500 for the forgiven house loan to the £18,000 he was gifted from his endowment, that totals £180,387.
But, then, it seems Mr Lavery and his old union fell out. The union recently realised it had overpaid Mr Lavery's redundancy by £30,600. The regulator's report shows that the union asked for it back. Mr Lavery disputed £10,600 of it - and said he'd only give them £15,000. When the regulator asked the union why they settled for this, they simply replied that they were mindful of Mr Lavery disputing it and the potential legal costs:
"Mr. Lavery was adamant that £15,000 was his final offer, we were left with little choice but to accept."
So our running total of dosh from the union to its one-time general secretary is reduced by £15,000 to £165,387. That's a bob or two in anyone's language.
A year ago, when we started questioning Mr Lavery on this matter, Jeremy Corbyn gave him the benefit of the doubt and the Parliamentary commissioner cleared him of wrongdoing, which he has always denied. Since then, Mr Lavery has risen in Labour's ranks to be one of the Labour leader's closest and most trusted lieutenants.
Image copyright - GETTY IMAGES
Now that we know just how much money he got from the trade union he used to run, it's fair to ask whether this man is a fit and proper person to be chairman of the Labour Party.
Ian Lavery told BBC Newsnight in a statement tonight:
"Under my stewardship, the union always complied with the rules and the Certification Officer signed off every year's transactions. As the Certification Officer's report makes clear, no member of the union, past or present, has made a complaint about the financial affairs of the union. I am pleased that the Certification Officer has decided to not appoint an inspector or take further action.
"This report should draw a line under almost two years of allegations and innuendo directed at me and my former colleagues. Our legacy is helping miners and their families when others abandoned them, bringing millions of pounds of compensation into the Northumberland Coalfield. I remain immensely proud of our record."
Team Corbyn (10/05/17)
I listened to Ian Lavery (Labour's elections coordinator) deliver a 'warm-up' speech ahead of Jeremy Corbyn appearing on stage to launch the Labour Party's election manifesto.
Now I don't know Mr Lavery, but he sounded like a poor man's Arthur Scargill to me full of angry and windy rhetoric about the great sacrifices made by previous generations of Labour supporters.
I've heard this kind of 'standing on the shoulders of giants' speech more times than I care to remember, but Ian Lavery brings a whole new meaning to this slogan when you consider the circumstances under which he left his job at the NUM (National Union of Mineworkers).
If you ask me, someone who leaves their job to become a well paid Member of Parliament is not entitled to a redundancy payment because they are resigning from their post voluntarily - so why do they need or deserve a huge sum of NUM members' money.
Yet one one Jeremy Corbyn's key supporters thought it was OK to accept a £140,000 payment from a largely defunct union with very few active members given the decline of the mining industry.
Team Corbyn (18/03/17)
Ian Lavery is a big Jeremy Corbyn supporter who was promoted to the role of election coordinator recently after yet another shadow cabinet reshuffle that was forced upon the Labour leader because the vast majority of MPs have no confidence in him.
The standards watchdog at Westminster has required Ian Lavery to apologise to the House of Commons over his failure to disclose benefits from his previous employment as general secretary of the National Union of Mineworkers (NUM) for the Northumberland area from 1992 until 2010.
But the real story is that Ian Lavery received £140,000 in redundancy payments even though he resigned from this job to take up a more lucrative position as a Labour MP.
On top of that Ian Lavery received a cheap mortgage from the NUM which by that time had a tiny membership and even more incredibly this subsidised mortgage was mysteriously written off.
Read the reports below from the Politics Home web site and the BBC, but if you ask me there are remarkable similarities between Ian Lavery and Len McLuskey, another big Corbyn fan who regards himself as a left-wing socialist.
https://www.politicshome.com/news/uk/government-and-public-sector/news/84311/labour-mp-ian-lavery-cleared-wrongdoing-over?
Labour MP Ian Lavery cleared of wrongdoing over subsidised mortgage
By Sebastian Whale - Politics Home
Labour MP Ian Lavery has been cleared by the parliamentary watchdog over allegations he failed to register benefits received from his previous union employer.
Ian Lavery at the 2016 Labour party conference - Credit: PA Images
The Parliamentary Commissioner for Standards refused to uphold claims by Tory MP Paul Scully that Mr Lavery should have published redundancy payments and the terms of a mortgage on his property.
But the probe did find two instances where the shadow Cabinet Office minister breached the MPs’ code of conduct by failing to declare a relevant interest.
Mr Lavery has agreed to make an apology to the House of Commons for the breaches, which the commissioner said would be an “appropriate outcome” following the investigation.
The Labour frontbencher was general secretary of the National Union of Mineworkers (NUM) for the Northumberland area from 1992 until 2010, when he stood down and was elected MP for Wansbeck.
According to documents seen by BBC Newsnight last year, Mr Lavery received a £72,500 mortgage in 1994 from the union's benevolent fund, repayable at less than half the market interest rate.
He also allegedly received around £140,000 in redundancy payments from the union.
The Standards commissioner found that Parliament’s rules in 2010 had not been “sufficiently explicit” for Mr Lavery’s failure to register the redundancy payments to constitute a breach.
Mr Lavery received redundancy payments in instalments until May 2013.
Further, the probe found that Mr Lavery’s mortgage had terminated three years before he became an MP so it was not considered a registrable benefit.
But elsewhere in the investigation, the commissioner considered whether Mr Lavery should have noted in the Register of Members’ Interests that the NUM had held a 15% of share in his property until May 2013.
The commissioner concluded that under the circumstances it was a registrable benefit under the Miscellaneous Category.
It also found that Mr Lavery should have declared a relevant interest when tabling a Written Question in March 2013 about the future of the deep-mine industry.
“Mr Lavery has acknowledged his two breaches of the rules and of the Code of Conduct, and he has agreed to make an apology to the House for them,” the commissioner wrote.
“Subject to him doing so, I consider that to be an appropriate outcome and have concluded my inquiry under the rectification procedure.”
But elsewhere in the investigation, the commissioner considered whether Mr Lavery should have noted in the Register of Members’ Interests that the NUM had held a 15% of share in his property until May 2013.
The commissioner concluded that under the circumstances it was a registrable benefit under the Miscellaneous Category.
It also found that Mr Lavery should have declared a relevant interest when tabling a Written Question in March 2013 about the future of the deep-mine industry.
“Mr Lavery has acknowledged his two breaches of the rules and of the Code of Conduct, and he has agreed to make an apology to the House for them,” the commissioner wrote.
“Subject to him doing so, I consider that to be an appropriate outcome and have concluded my inquiry under the rectification procedure.”
Mr Lavery denied any wrongdoing when the allegations surfaced in April 2016.
Labour MP Ian Lavery denies wrongdoing over NUM mortgage
By John Sweeney & Ed Brown - BBC Newsnight
BBC UK Politics
BBC UK Politics
Image copyright - LABOUR PARTY
Labour's trade union spokesman Ian Lavery has denied any wrongdoing after BBC Newsnight learned he received a heavily subsidised mortgage.
The mortgage was from the benevolent fund of the National Union of Mineworkers in Northumberland.
Mr Lavery was the general secretary of that union from 1992 to 2010, and also faces questions about redundancy money he received when he left.
He says the mortgage was a "private" matter and denies any impropriety.
In total Ian Lavery faces questions about £250,000 of payments the union's books suggest he received from the NUM, Northumberland Area during his period there.
Newsnight has established that Mr Lavery received a £72,500 mortgage in 1994 from the union's benevolent fund repayable at less than half the market interest rate.
On Tuesday, he refused to comment on whether the outstanding mortgage had subsequently been written off by the union. "The union and myself came to a financial agreement in 2007 with regards to the mortgage which will remain private between myself and the union."
Mr Lavery stepped down as general secretary of the Northumberland Area in 2010, taking over from Denis Murphy as MP for Wansbeck. Mr Murphy took over the running of the union which now has just six members.
During Mr Lavery's tenure as general secretary, more than half of the union's £2.5m income came from sick former miners who the Union helped with compensation claims and who donated a portion of their payments to the union.
Mr Lavery has already faced questions from the Sunday Times about what appear to be more than £140,000 of redundancy payments to him, as well as about why he received a mortgage from union funds.
He has been referred to the Parliamentary Standards Commissioner by a Tory MP for alleged impropriety over his redundancy.
Newsnight has established that the "sweetheart" interest rate on the mortgage provided by the union's Provident and Benevolent fund - just 3% compared to market rates of around 8% - would have saved Mr Lavery thousands of pounds in interest payments over the life of the mortgage.
However, Newsnight has also identified a sum of £109,911 written off in the union's books in 2007. This is almost exactly the figure Mr Lavery would have owed on the £72,500 mortgage if he had made no, or very low, payments over the 13-year period.
Labour's trade union spokesman Ian Lavery has denied any wrongdoing after BBC Newsnight learned he received a heavily subsidised mortgage.
The mortgage was from the benevolent fund of the National Union of Mineworkers in Northumberland.
Mr Lavery was the general secretary of that union from 1992 to 2010, and also faces questions about redundancy money he received when he left.
He says the mortgage was a "private" matter and denies any impropriety.
In total Ian Lavery faces questions about £250,000 of payments the union's books suggest he received from the NUM, Northumberland Area during his period there.
Newsnight has established that Mr Lavery received a £72,500 mortgage in 1994 from the union's benevolent fund repayable at less than half the market interest rate.
On Tuesday, he refused to comment on whether the outstanding mortgage had subsequently been written off by the union. "The union and myself came to a financial agreement in 2007 with regards to the mortgage which will remain private between myself and the union."
Mr Lavery stepped down as general secretary of the Northumberland Area in 2010, taking over from Denis Murphy as MP for Wansbeck. Mr Murphy took over the running of the union which now has just six members.
During Mr Lavery's tenure as general secretary, more than half of the union's £2.5m income came from sick former miners who the Union helped with compensation claims and who donated a portion of their payments to the union.
Mr Lavery has already faced questions from the Sunday Times about what appear to be more than £140,000 of redundancy payments to him, as well as about why he received a mortgage from union funds.
He has been referred to the Parliamentary Standards Commissioner by a Tory MP for alleged impropriety over his redundancy.
Newsnight has established that the "sweetheart" interest rate on the mortgage provided by the union's Provident and Benevolent fund - just 3% compared to market rates of around 8% - would have saved Mr Lavery thousands of pounds in interest payments over the life of the mortgage.
However, Newsnight has also identified a sum of £109,911 written off in the union's books in 2007. This is almost exactly the figure Mr Lavery would have owed on the £72,500 mortgage if he had made no, or very low, payments over the 13-year period.
Image copyrightPAImage captionEllington Colliery in Northumberland just before it closed in 2005
On Tuesday he refused to say whether any of the mortgage had been written off insisting he had absented himself from any discussions regarding the mortgage and behaved in a proper manner throughout.
He said: "The NUMNA accounts were professionally audited and accepted by the Certification Officer on an annual basis," adding, "I refute any allegations of financial irregularities."
A second puzzle relates to Mr Lavery's redundancy. He acknowledges he received £62,000 in redundancy payments but insists he doesn't recognise a second payment of £85,426, logged on the union's books in 2013.
He said: "The £85,000 which you keep referring to as a mystery payment, that is something that the accountants will have come up with. I'll tell you three times, four times, five times, I don't recognise that payment."
But the payment is recorded in 2013 as "past general secretary redundancy costs". Mr Lavery started at NUMNA in 1992. His successor, Denis Murphy, took over in 2010 so the phrase "past general secretary redundancy costs" appears, on the face of it, to apply to Mr Lavery.
On Tuesday he refused to say whether any of the mortgage had been written off insisting he had absented himself from any discussions regarding the mortgage and behaved in a proper manner throughout.
He said: "The NUMNA accounts were professionally audited and accepted by the Certification Officer on an annual basis," adding, "I refute any allegations of financial irregularities."
A second puzzle relates to Mr Lavery's redundancy. He acknowledges he received £62,000 in redundancy payments but insists he doesn't recognise a second payment of £85,426, logged on the union's books in 2013.
He said: "The £85,000 which you keep referring to as a mystery payment, that is something that the accountants will have come up with. I'll tell you three times, four times, five times, I don't recognise that payment."
But the payment is recorded in 2013 as "past general secretary redundancy costs". Mr Lavery started at NUMNA in 1992. His successor, Denis Murphy, took over in 2010 so the phrase "past general secretary redundancy costs" appears, on the face of it, to apply to Mr Lavery.
Image copyrightGETTY IMAGES
Britain's wealth was, once, powered by coal - but miners paid a heavy price in ill-health. The government set up a compensation fund for miners suffering lung disease and other illnesses which has paid out more than £4 billion.
Mr Lavery, a former miner himself, is proud of his union's success at winning compensation for its members. On their compensation forms, miners could tick a box to gift a fraction of their money to the union.
The last pit in Northumberland closed in 2005 and it now boasts just six members but gifts to the compensation fund kept the union afloat. Donations from former miners amounted to more than £1.6m over the period of Mr Lavery's tenure.
In response to Newsnight's story, Mr Lavery issued the following written statement: "For the record, I am immensely proud of the fact that the National Union of Mineworkers (Northumberland Area) were able to gain rightful compensation for tens of thousands of miners, former miners and their families.
"The government and the industry were vehemently opposed to paying compensation for industrial diseases but the National Union of Mineworkers were ultimately successful. Thousands of miners received the compensation they deserved because of the time, effort and commitment of the NUM and its officials, who brought test cases that were opposed at every turn.
"It is estimated that more than £4 billion nationally - and tens of millions of pounds in Northumberland alone - was paid out in the form damages for those who had worked in the coal industry.
"I am incredibly proud of the role I played in achieving this on behalf of former miners who would have been left high and dry without the work the NUM carried out on their behalf. I simply refute out of hand any suggestion of financial impropriety."
Britain's wealth was, once, powered by coal - but miners paid a heavy price in ill-health. The government set up a compensation fund for miners suffering lung disease and other illnesses which has paid out more than £4 billion.
Mr Lavery, a former miner himself, is proud of his union's success at winning compensation for its members. On their compensation forms, miners could tick a box to gift a fraction of their money to the union.
The last pit in Northumberland closed in 2005 and it now boasts just six members but gifts to the compensation fund kept the union afloat. Donations from former miners amounted to more than £1.6m over the period of Mr Lavery's tenure.
In response to Newsnight's story, Mr Lavery issued the following written statement: "For the record, I am immensely proud of the fact that the National Union of Mineworkers (Northumberland Area) were able to gain rightful compensation for tens of thousands of miners, former miners and their families.
"The government and the industry were vehemently opposed to paying compensation for industrial diseases but the National Union of Mineworkers were ultimately successful. Thousands of miners received the compensation they deserved because of the time, effort and commitment of the NUM and its officials, who brought test cases that were opposed at every turn.
"It is estimated that more than £4 billion nationally - and tens of millions of pounds in Northumberland alone - was paid out in the form damages for those who had worked in the coal industry.
"I am incredibly proud of the role I played in achieving this on behalf of former miners who would have been left high and dry without the work the NUM carried out on their behalf. I simply refute out of hand any suggestion of financial impropriety."
Len Has No Answers (22/02/17)
According to the report below from Politics Home Len McCluskey is complaining at being called out over his £400,000 loan from Unite members to help his buy a swish new pad in central London.
Now relocation schemes for employees moving to London are commonplace, of course, but Len has worked and lived in the capital for 26 years and as Gerard Coyne fairly points out:
"Len McCluskey has had not one but three home loans during his time at Unite. Other senior union officials have had similar large benefits. I will end this practice because I don't believe that union bigwigs should get perks that the members who pay our wages don't receive."
Good for Gerard Coyne and doesn't McCluskey sound just like Jeremy Corbyn with his terrible whining about the 'right-wing' media.
Len McCluskey accuses Unite rival of 'smears and lies' in general secretary election
By Kevin Schofield - Politics Home
Len McCluskey will today accuse his Unite leadership rival of peddling "smears and outright lies" in the increasingly ill-tempered election campaign.
Len McCluskey will today accuse his Unite leadership rival of peddling "smears and outright lies" in the increasingly ill-tempered election campaign.
Len McCluskey is aiming for a third term as Unite general secretary.
Credit: PA Images
The veteran left-winger will also say Gerard Coyne has been "skulking behind slurs and using the right wing media to demean our union" ahead of the crunch vote.
Mr McCluskey's outspoken comments come just days after Mr Coyne dubbed him a "greedy boss"over a £400,000 deal to help him buy a flat in central London.
Len McCluskey slammed for wrongly claiming factory employing Unite workers had closed
Len McCluskey in fresh blast at Unite rival Gerard Coyne
EXCL Blow for Len McCluskey as he fails to win backing of key Unite group
Momentum urge members to join Unite to vote for Len McCluskey
The "shared ownership" arrangement with Unite enabled Mr McCluskey to purchase the £700,000 property in a fashionable part of central London last year.
But Mr McCluskey - who is seeking his third term as the union's boss - will hit back in a speech to supporters in the West Midlands, where Mr Coyne is Unite's regional secretary.
He will say: "I am incredibly proud to have received the nominations of so many branches in the West Midlands, and over 1,000 Unite branches across the UK representing members working in all sectors of the economy.
"It is the best validation from members, because it demonstrates they approve of what I am doing for Unite and want the union to carry on in this vein – proud, democratic and independent of outside interference.
"Members and the reps working hard on their behalf, day in and day out, don’t recognise the smears and outright lies that my opponent Gerard Coyne is peddling.
"My support reflects that they want a general secretary leading from the front on the issues that matter to them, not skulking behind slurs and using the right wing media to demean our union."
Unite insist that equity share schemes like the one they agreed with Mr McCluskey over his flat are commonplace, particularly for trade union officials moving to London, that they are properly authorised and generate large profits once the properties are sold.
But Mr Coyne said: "Len McCluskey has had not one but three home loans during his time at Unite. Other senior union officials have had similar large benefits. I will end this practice because I don't believe that union bigwigs should get perks that the members who pay our wages don't receive.
"I find it offensive. And to be honest I find it remarkable when I hear Len McCluskey talk about greedy bosses on the TV and radio. The truth is the man who talks about greedy bosses is a greedy boss himself."
A spokesman for Mr McCluskey said: "This is a shared ownership arrangement. Len McCluskey has not received a loan from the union, the union has invested in property. The property will be sold when Len McCluskey leaves employment and the union will make a profit for its investment. The arrangement is entirely transparent and fully authorised."
Credit: PA Images
The veteran left-winger will also say Gerard Coyne has been "skulking behind slurs and using the right wing media to demean our union" ahead of the crunch vote.
Mr McCluskey's outspoken comments come just days after Mr Coyne dubbed him a "greedy boss"over a £400,000 deal to help him buy a flat in central London.
Len McCluskey slammed for wrongly claiming factory employing Unite workers had closed
Len McCluskey in fresh blast at Unite rival Gerard Coyne
EXCL Blow for Len McCluskey as he fails to win backing of key Unite group
Momentum urge members to join Unite to vote for Len McCluskey
The "shared ownership" arrangement with Unite enabled Mr McCluskey to purchase the £700,000 property in a fashionable part of central London last year.
But Mr McCluskey - who is seeking his third term as the union's boss - will hit back in a speech to supporters in the West Midlands, where Mr Coyne is Unite's regional secretary.
He will say: "I am incredibly proud to have received the nominations of so many branches in the West Midlands, and over 1,000 Unite branches across the UK representing members working in all sectors of the economy.
"It is the best validation from members, because it demonstrates they approve of what I am doing for Unite and want the union to carry on in this vein – proud, democratic and independent of outside interference.
"Members and the reps working hard on their behalf, day in and day out, don’t recognise the smears and outright lies that my opponent Gerard Coyne is peddling.
"My support reflects that they want a general secretary leading from the front on the issues that matter to them, not skulking behind slurs and using the right wing media to demean our union."
Unite insist that equity share schemes like the one they agreed with Mr McCluskey over his flat are commonplace, particularly for trade union officials moving to London, that they are properly authorised and generate large profits once the properties are sold.
But Mr Coyne said: "Len McCluskey has had not one but three home loans during his time at Unite. Other senior union officials have had similar large benefits. I will end this practice because I don't believe that union bigwigs should get perks that the members who pay our wages don't receive.
"I find it offensive. And to be honest I find it remarkable when I hear Len McCluskey talk about greedy bosses on the TV and radio. The truth is the man who talks about greedy bosses is a greedy boss himself."
A spokesman for Mr McCluskey said: "This is a shared ownership arrangement. Len McCluskey has not received a loan from the union, the union has invested in property. The property will be sold when Len McCluskey leaves employment and the union will make a profit for its investment. The arrangement is entirely transparent and fully authorised."
Coyne Calls Out McCluskey (21/02/17)
Gerard Coyne who is standing for election as Unite's general secretary has called out his rival Len McCluskey whom he describes as a 'greedy boss'.
I couldn't agree more and here's why:
- Len McCluskey is 66 years go age has lived in and worked in London for the past 26 years, during which time he has been paid a salary worth well over £100,000 a year
- So why does he need a £400,000 loan from low paid Unite members to help him buy a new luxury flat in central London?
- A spokesperson for McCluskey tries to defend the loan arrangement but the scheme is clearly not available to ordinary Unite members or other less senior union employees
- The McCluskey loan is not a common arrangement nor is it one that is widely used by other trade unions, as the McCluskey camp claims
- McCluskey is not moving and relocating to London to take up his job - instead he has lived the capital city for the past three decades
The whole business stinks to high heaven if you ask me and I take my hat off to Gerard Coyne for drawing attention to this scandalous use of the members' money.
Read the full story via the link below to the Politics Home web site and the piece by Kevin Schofield.
Len McCluskey dubbed 'greedy boss' by union rival over £400,000 flat deal
By Kevin Schofield - Politics Home
A union official hoping to topple Len McCluskey as boss of Unite has dubbed his rival a "greedy boss" over a £400,000 deal to help him buy a flat in central London.
Len McCluskey bought a flat in central London last year.
Credit: PA Images
Gerard Coyne launched his outspoken attack on the first anniversary of the "shared ownership" arrangement, which enabled Mr McCluskey to purchase the £700,000 property.
Under the deal, Unite contributed £417,000 to help its general secretary buy the flat near London Bridge last February. Mr McCluskey provided the rest of the money himself.
Len McCluskey in fresh blast at Unite rival Gerard Coyne
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EXCL Blow for Len McCluskey as he fails to win backing of key Unite group
Details of the arrangement were revealed by The Guardian in September.
Unite officials insist that such equity share schemes are commonplace, particularly for trade union officials moving to London, that they are properly authorised and generate large profits once the properties are sold.
But in a speech to Michelin works in Stoke-on-Trent, Mr Coyne, who is Unite's regional secretary for the West Midlands, will say the deal should not have been allowed.
"The loan was to help him buy a flat in a very desirable part of central London, a short walk from London Bridge, and close to Borough Market – the sort of place where city bankers enjoy expensive lunches while tourists stroll around stalls that sell artisan bread, organic goats cheese and black pitted olives imported from the rolling hills of Italy," he will say.
"Whilst it is very nice for Len McCluskey to be able to look out of his window on this luxurious panorama, let us just pause to consider the amount of money involved. Put it this way. Most of you, if you are in full time work, will be paying your Unite subscription at the enhanced rate of £3.50 a week.
"Were you to continue to pay that sum unchanged, year in, year out, and live to a very old age, do you know how long it would take you to pay enough to cover Len McCluskey’s loan? The answer is 2,293 years.
LUXURY
"Looking around, I see people in robust good health, but I don’t see anyone here who is likely to live for more than two thousand years. What this means, in other words, is that the subscriptions paid by thousands of Unite members, who may be struggling to make ends meet or may have grown up children still living at home because they have nowhere else to live, have been used to fund Len’s luxury lifestyle.
"And remember, Len didn’t need a loan at all. He could have bought somewhere else in London with his own money. After all he put down nearly £300,000 for his £700,000 flat. It’s only because he wanted to live in such high style that he decided to take another £400,000 from the members.
"Were Unite members asked what they thought about this? No they were not. In fact, at the moment no one knows who in Unite authorised this loan. It wasn’t until six months later, in September, that the executive discussed it. We do not yet know who agreed to give £400,000 of members’ money to Len McCluskey."]
Mr Coyne will add: "Len McCluskey has had not one but three home loans during his time at Unite. Other senior union officials have had similar large benefits. I will end this practice because I don't believe that union bigwigs should get perks that the members who pay our wages don't receive.
"I find it offensive. And to be honest I find it remarkable when I hear Len McCluskey talk about greedy bosses on the TV and radio. The truth is the man who talks about greedy bosses is a greedy boss himself."
The general secretary election was sparked when Mr McCluskey announced he was standing down last month to seek a third term of office.
PROFIT
A spokeswoman for Len McCluskey denied that the arrangement was a loan and accused Mr Coyne of "demeaning the union's democracy".
She said: "This is a shared ownership arrangement. Len McCluskey has not received a loan from the union, the union has invested in property. The property will be sold when Len McCluskey leaves employment and the union will make a profit for its investment. The arrangement is entirely transparent and fully authorised.
"This is a common arrangement used by unions and other organisations to enable officials living outside of London to work there.
"These attacks by Gerard Coyne demean the union’s democracy at a time when the union and its members face so many urgent and serious industrial issues. They are also highly misleading."
Credit: PA Images
Gerard Coyne launched his outspoken attack on the first anniversary of the "shared ownership" arrangement, which enabled Mr McCluskey to purchase the £700,000 property.
Under the deal, Unite contributed £417,000 to help its general secretary buy the flat near London Bridge last February. Mr McCluskey provided the rest of the money himself.
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Details of the arrangement were revealed by The Guardian in September.
Unite officials insist that such equity share schemes are commonplace, particularly for trade union officials moving to London, that they are properly authorised and generate large profits once the properties are sold.
But in a speech to Michelin works in Stoke-on-Trent, Mr Coyne, who is Unite's regional secretary for the West Midlands, will say the deal should not have been allowed.
"The loan was to help him buy a flat in a very desirable part of central London, a short walk from London Bridge, and close to Borough Market – the sort of place where city bankers enjoy expensive lunches while tourists stroll around stalls that sell artisan bread, organic goats cheese and black pitted olives imported from the rolling hills of Italy," he will say.
"Whilst it is very nice for Len McCluskey to be able to look out of his window on this luxurious panorama, let us just pause to consider the amount of money involved. Put it this way. Most of you, if you are in full time work, will be paying your Unite subscription at the enhanced rate of £3.50 a week.
"Were you to continue to pay that sum unchanged, year in, year out, and live to a very old age, do you know how long it would take you to pay enough to cover Len McCluskey’s loan? The answer is 2,293 years.
LUXURY
"Looking around, I see people in robust good health, but I don’t see anyone here who is likely to live for more than two thousand years. What this means, in other words, is that the subscriptions paid by thousands of Unite members, who may be struggling to make ends meet or may have grown up children still living at home because they have nowhere else to live, have been used to fund Len’s luxury lifestyle.
"And remember, Len didn’t need a loan at all. He could have bought somewhere else in London with his own money. After all he put down nearly £300,000 for his £700,000 flat. It’s only because he wanted to live in such high style that he decided to take another £400,000 from the members.
"Were Unite members asked what they thought about this? No they were not. In fact, at the moment no one knows who in Unite authorised this loan. It wasn’t until six months later, in September, that the executive discussed it. We do not yet know who agreed to give £400,000 of members’ money to Len McCluskey."]
Mr Coyne will add: "Len McCluskey has had not one but three home loans during his time at Unite. Other senior union officials have had similar large benefits. I will end this practice because I don't believe that union bigwigs should get perks that the members who pay our wages don't receive.
"I find it offensive. And to be honest I find it remarkable when I hear Len McCluskey talk about greedy bosses on the TV and radio. The truth is the man who talks about greedy bosses is a greedy boss himself."
The general secretary election was sparked when Mr McCluskey announced he was standing down last month to seek a third term of office.
PROFIT
A spokeswoman for Len McCluskey denied that the arrangement was a loan and accused Mr Coyne of "demeaning the union's democracy".
She said: "This is a shared ownership arrangement. Len McCluskey has not received a loan from the union, the union has invested in property. The property will be sold when Len McCluskey leaves employment and the union will make a profit for its investment. The arrangement is entirely transparent and fully authorised.
"This is a common arrangement used by unions and other organisations to enable officials living outside of London to work there.
"These attacks by Gerard Coyne demean the union’s democracy at a time when the union and its members face so many urgent and serious industrial issues. They are also highly misleading."
Len's Lump Sum Poser (19/02/17)
I'm not a member of the Unite staff pension scheme, but I know how similar union schemes operate and they are all based on the 'final salaries' of their employees.
Now it's been reported in the media previously that Len McCluskey (66) is already drawing his Unite pension because he's beyond the union's normal retirement date of 65 years of age.
So if Len's retirement package has already been triggered, then the normal formula is that he would retire on half salary (assuming he had full service) plus a tax free lump sum worth three times his final year's salary.
Len's salary was reported as being £103,323 a year in 2014 and along with NI contributions, pension and other benefits his total remuneration package came to £140,281per annum.
But even using the lower figure of £103,323 Len's tax free lump sum (from his final salary pension) would be worth an eye watering £310,000 or so - completely tax free.
So why does Len 'need' a £400,000 loan from low paid Unite members to help him buy a swish new pad in London, where he's lived for many years and already has a house over his head?
I think we should be told.
Len's Loan is 'Bollix' (15/01/17)
I noticed from my Twitter feed that Len McCluskey is on the radio today to talk about the Unite leadership election with his main rival Gerard Coyne, another senior union official.
So I sent the interviewers a suggested question for the current Unite boss.
"Please ask Len why aa highly paid union official needs a loan of £400,000 from low paid Unite members, bearing in mind that Len has lived in London for years and at 66 is already beyond the union's normal retirement age?"
I was unable to listen to the radio programmes concerned, but if anyone did and knows whether this question was put to Len McCluskey, I'd be interested to know how his answer.
Because is you ask me, Len's giant loan is a disgrace.
Union Puppet Master (14/01/17)
I was puzzled by this piece in The Sunday Herald which reported that an SNP spokesperson, Chris Stephens, is urging party members to vote for Len McCluskey (66) in the Unite leadership contest.
Now I find this surprising because Len McCluskey payed 'Russian roulette' with thousands of jobs at the giant Ineos plant in Grangemouth where the union called a strike in 'defence' of a local union rep who was facing disciplinary procedures for carrying out work for the Labour Party during his employer's time.
The background involved allegations of 'ballot rigging' in the local Falkirk Labour Party constituency where, reportedly, a 'close friend' of McCluskey's (Katie Murphy) was being lined up as the likely Labour candidate in a looming by-election.
As an aside Karie Murphy now works as a key aide in Jeremy Corbyn's office, just so you appreciate how 'incestuous' the world of Labour/union politics can be at times.
Anyway, after calling this kamikaze strike Unite was quickly forced to back down, but only after McCluskey's personal intervention; incredibly the workforce ended up with worse terms and conditions than they enjoyed before the dispute began.
The Grand Old Duke of York would have been proud, and yet here we have the SNP's trade union spokesperson backing McCluskey with warm words about his alleged understanding of Scottish politics and good relations with the SNP.
Unite has also been useless in the long fight over equal pay which has been raging in Scotland's councils for the past 12 years. In South Lanarkshire, of course, the Labour supporting unions actively discouraged their members from pursuing equal pay claims against the local Labour-run council.
SNP frontbencher backs Len McCluskey in Unite leadership contest
LONDON, ENGLAND - FEBRUARY 22: Len McCluskey, the Assistant General Secretary of the Unite union, announces that a ballot of its members on whether British Airways cabin crew are to take industrial action have voted in favour of doing so on February 22, 2
By Andrew Whitaker - The Sunday Herald
THE SNP's trade union spokesman at Westminster has backed Len McCluskey in the Unite union leadership election because he has “good relations with the SNP” and “understands Scottish politics”.
Chris Stephens said SNP members in Unite should back McCluskey because he is “sympathetic” to a progressive alliance between Nicola Sturgeon's party and Labour to oust the Tory Government.
The plea to SNP members came as McCluskey brought his campaign for the union's leadership to Scotland, where he said he was running on his "record and vision.
LONDON, ENGLAND - FEBRUARY 22: Len McCluskey, the Assistant General Secretary of the Unite union, announces that a ballot of its members on whether British Airways cabin crew are to take industrial action have voted in favour of doing so on February 22, 2
By Andrew Whitaker - The Sunday Herald
THE SNP's trade union spokesman at Westminster has backed Len McCluskey in the Unite union leadership election because he has “good relations with the SNP” and “understands Scottish politics”.
Chris Stephens said SNP members in Unite should back McCluskey because he is “sympathetic” to a progressive alliance between Nicola Sturgeon's party and Labour to oust the Tory Government.
The plea to SNP members came as McCluskey brought his campaign for the union's leadership to Scotland, where he said he was running on his "record and vision.
Money Down the Drain (02/08/15)
Trade union members in Scotland will be interested to know that while the fight for equal pay has been in full flow, union bosses have been wasting a small fortune in trying to sell Ed Miliband to the nation.
In the run up to the recent Westminster election Labour's top three donations were:
- £3.5 million from Unite
- £697,000 from the GMB
- £572,000 from Unison
Members' money down the drain if you ask me.
Sorry, I haven't a clue (03/01/17)
Question: Why does a highly paid union boss like Len McCluskey need a 'loan' of £400,000 from low paid Unite members to buy a swish new £700,000 pad in London?
Answer: Sorry, I haven't a clue - not least because such loans are normally used to help union officials to relocate from one part of the country to another, whereas Len McCluskey has lived in London for years.
Len, by the way, is 66 and reportedly is already in receipt of his Unite pension having passed the union's normal retirement age of 65.
Curiouser and Curiouser (08/12/16)
The Sunday Times reported at the weekend that Unite boss Len McCluskey received a string of cheap loans from his own union years before Len received an eye-watering £400,000 in 2016 to help him buy a £700,000 flat in London
I said in an earlier post that the latest loan of £400,000 made no sense because these union schemes are normally aimed at helping employees relocate to another part of the country.
Whereas Len McCluskey has been living and working in London for the past 26 years.
So why does the Unite boss need such a a big hand-up from his own members, especially when his salary package was previously reported at £140,000 a year?
Who knows what's going on inside Unite these days, but I would take some persuading that this could ever be an appropriate use of the members' money
Unite boss had string of cheap union loans
By James Lyons and Jon Ungoed-Thomas - The Sunday Times
Len McCluskey is preparing to seek another five-year term as leader - JIM CLARKE
Len McCluskey received three cut-price union home loans before Unite helped him buy a flat in London this year, documents obtained by The Sunday Times reveal.
McCluskey, 66, was given loans totalling more than £110,000 for what appear to be two properties in the same street in Liverpool and another in the capital, according to records from the Transport & General Workers’ Union (TGWU), where he worked before it merged with rival Amicus to form Unite. Details of the arrangements have come to light as the militant union leader, one of Jeremy Corbyn's most powerful allies, is poised to launch a bid for a fresh five-year term as general secretary of Unite this week.
Len McCluskey received three cut-price union home loans before Unite helped him buy a flat in London this year, documents obtained by The Sunday Times reveal.
McCluskey, 66, was given loans totalling more than £110,000 for what appear to be two properties in the same street in Liverpool and another in the capital, according to records from the Transport & General Workers’ Union (TGWU), where he worked before it merged with rival Amicus to form Unite. Details of the arrangements have come to light as the militant union leader, one of Jeremy Corbyn's most powerful allies, is poised to launch a bid for a fresh five-year term as general secretary of Unite this week.
McCluskey was given loans totalling more than £110,000
There were reports of disquiet inside the union after it was revealed that Unite had paid more than £400,000 towards the cost of a £700,000 flat for McCluskey, close to London’s fashionable Borough market, in a joint equity deal earlier this year.
This weekend Unite stressed that home loans and shared equity schemes are “common place” for union officials, especially those who move around the country, and good investments. Those involving McCluskey were properly authorised, the union said.
However, any disquiet is likely to be fuelled by records from the TGWU that show the Borough deal was the fourth time that McCluskey has received such help.
The first loan of £10,250 was made to help him buy a house in the Crosby area of Liverpool, the former dock worker’s home city, a report dating from 1980 shows. He was charged 7.5% interest on the 20-year loan, about half of the Bank of England rate at the time.
The house is now solely owned by Ann McCluskey, his wife, according to records lodged with the Land Registry.
The union leader bought a home in Muswell Hill, north London - FRANCESCO GUIDICINI
McCluskey received another loan, of £5,000 for 18 years and charged at the same interest rate, for a second house in the same street, according to a report from 1981. A decade later he received a £95,000 loan to buy a property in Muswell Hill, a leafy suburb of north London. That loan was made for 19 years and charged at 4.5% interest, again well below the market rate at the time.
McCluskey set up a property management company with a fellow tenant of the block, according to records lodged at Companies House. He resigned as a director of the company in February 2004. A property at the address was sold for £428,000 the next month, according to separate records.
This weekend, a Unite insider suggested there was just one property in Crosby and it had initially been bought by McCluskey in 1976 without union help. Unite said: “The arrangements made by the predecessor union were consistent with support provided to officers across the union, and repaid in the normal way.”
McCluskey received another loan, of £5,000 for 18 years and charged at the same interest rate, for a second house in the same street, according to a report from 1981. A decade later he received a £95,000 loan to buy a property in Muswell Hill, a leafy suburb of north London. That loan was made for 19 years and charged at 4.5% interest, again well below the market rate at the time.
McCluskey set up a property management company with a fellow tenant of the block, according to records lodged at Companies House. He resigned as a director of the company in February 2004. A property at the address was sold for £428,000 the next month, according to separate records.
This weekend, a Unite insider suggested there was just one property in Crosby and it had initially been bought by McCluskey in 1976 without union help. Unite said: “The arrangements made by the predecessor union were consistent with support provided to officers across the union, and repaid in the normal way.”
The purchase of this house in Crosby, Merseyside, was helped by a cheap loan - PAUL COOPER
Details of the loans come as Unite’s executive council prepares to gather in London tomorrow. McCluskey is expected to use the meeting, which will last several days, to trigger a battle for control of the union that could decide Labour’s future. Unite has several seats on Labour’s ruling national executive committee, and support from McCluskey — a close friend of senior Corbyn aide Karie Murphy — has helped stop moderates toppling the Labour leader.
Ed Balls has said McCluskey is “not of the Labour Party” and suggested that replacing him could allow a new leader to be put in place before the next general election, due in 2020.
Speaking last week, the former shadow chancellor praised Gerard Coyne, a union moderate who is expected to challenge McCluskey, saying he had done a “really good job” protecting workers’ jobs.
Defeat for McCluskey in a general secretary election would be a “staging post” on a route to giving MPs and unions more of a say over the party’s leadership rules, Balls said.
Details of the loans come as Unite’s executive council prepares to gather in London tomorrow. McCluskey is expected to use the meeting, which will last several days, to trigger a battle for control of the union that could decide Labour’s future. Unite has several seats on Labour’s ruling national executive committee, and support from McCluskey — a close friend of senior Corbyn aide Karie Murphy — has helped stop moderates toppling the Labour leader.
Ed Balls has said McCluskey is “not of the Labour Party” and suggested that replacing him could allow a new leader to be put in place before the next general election, due in 2020.
Speaking last week, the former shadow chancellor praised Gerard Coyne, a union moderate who is expected to challenge McCluskey, saying he had done a “really good job” protecting workers’ jobs.
Defeat for McCluskey in a general secretary election would be a “staging post” on a route to giving MPs and unions more of a say over the party’s leadership rules, Balls said.
Doesn't Add Up (24/10/16)
The Sunday Times shed some further light on the strange property deal involving Unite boss Len McCluskey and over £400,000 of the members' money.
Now as I've said on the blog site previously, this story doesn't really add up because why would someone who has been living and working in London for 26 years suddenly require such a huge loan?
Now as I've said on the blog site previously, this story doesn't really add up because why would someone who has been living and working in London for 26 years suddenly require such a huge loan?
Not only that, but Len is 66 years old and you would think it's time for him to retire, put his feet up and make way for some new blood at Unite.
Yet there are rumours that he plans to stand for election again which means that he would remain as Unite boss well into his seventies.
Yet there are rumours that he plans to stand for election again which means that he would remain as Unite boss well into his seventies.
Unite leader ‘lacked executive backing’ for £400,000 flat deal
By James Lyons - The Sunday Times
Len McCluskey is the registered owner of a flat in a block close to Borough market, south London - JOEL GOODMAN
A property deal that saw the Unite union pay more than £400,000 towards a flat for its general secretary Len McCluskey was not authorised by the executive council (EC) in advance, according to an account of the ruling body’s latest meeting.
When the purchase was revealed last month Unite issued a statement saying the shared equity deal had been completed with the “full authority” of the council.
McCluskey, however, acknowledged that this was a mistake when the council met shortly afterwards, according to unofficial minutes posted on the internet by Unite Now, a moderate faction inside the union.
“He [Len] apologised for the line saying that the EC had authorised this when in fact it should of said [sic] that this was historically the practice for all previous general Secretary’s [sic] and because of personal circumstances, he also needed to do this,” the unofficial minutes said.
“The statement was put together by staff and had Len realised it had said what it did then he would of changed it, he again apologised for any embarrassment caused.”
Last night Unite emphasised that the part-purchase of the £700,000 London property, close to the Thames, had been correctly authorised by the relevant union officers.
“The purchase had the full authority of the union. Consequently Mr McCluskey had not reason to, and of course did not, apologise for any statement that the purchase had the full authority of the union,” Unite said. “The purpose of the executive discussion was to condemn the newspaper coverage of this matter.”
The council “unanimously condemned the media coverage and unanimously offered full support for Mr McCluskey”, the union said in a statement.
“It is ridiculous to imagine that any employee, including the general secretary, would have his or her relationship status as a matter for discussion at our executive council; it was not.”
A property deal that saw the Unite union pay more than £400,000 towards a flat for its general secretary Len McCluskey was not authorised by the executive council (EC) in advance, according to an account of the ruling body’s latest meeting.
When the purchase was revealed last month Unite issued a statement saying the shared equity deal had been completed with the “full authority” of the council.
McCluskey, however, acknowledged that this was a mistake when the council met shortly afterwards, according to unofficial minutes posted on the internet by Unite Now, a moderate faction inside the union.
“He [Len] apologised for the line saying that the EC had authorised this when in fact it should of said [sic] that this was historically the practice for all previous general Secretary’s [sic] and because of personal circumstances, he also needed to do this,” the unofficial minutes said.
“The statement was put together by staff and had Len realised it had said what it did then he would of changed it, he again apologised for any embarrassment caused.”
Last night Unite emphasised that the part-purchase of the £700,000 London property, close to the Thames, had been correctly authorised by the relevant union officers.
“The purchase had the full authority of the union. Consequently Mr McCluskey had not reason to, and of course did not, apologise for any statement that the purchase had the full authority of the union,” Unite said. “The purpose of the executive discussion was to condemn the newspaper coverage of this matter.”
The council “unanimously condemned the media coverage and unanimously offered full support for Mr McCluskey”, the union said in a statement.
“It is ridiculous to imagine that any employee, including the general secretary, would have his or her relationship status as a matter for discussion at our executive council; it was not.”
The flat in south London - TOLGA AKMEN/LNP
An attempt to redact the unofficial minutes has been made on the Unite Now website, but the information was still available last night.
The faction publishes regular accounts of EC meetings. However, tensions inside the union are rising amid expectations among moderates that McCluskey, a militant leftwinger, is gearing up to stand again for another term as general secretary.
McCluskey became the registered owner of the flat, which is near the fashionable Borough food market, in February. Unite paid £417,300 towards the £695,500 purchase price and signed an agreement with McCluskey, which has not been disclosed.
There is no other charge on the property according to the Land Registry, suggesting he did not take out a mortgage to cover his share of the cost.
When the details emerged a month ago, a union insider predicted there would be “much disquiet”. At the time Unite stated that under the shared equity deal the property must be sold within 12 months of McCluskey’s employment ending and Unite will get its 60% stake with a share of any profit.
Howard Beckett, executive director for legal services at Unite, said such agreements are “extraordinarily commonplace”, adding: “Unions have put such measures in place for senior officers for decades.”
An attempt to redact the unofficial minutes has been made on the Unite Now website, but the information was still available last night.
The faction publishes regular accounts of EC meetings. However, tensions inside the union are rising amid expectations among moderates that McCluskey, a militant leftwinger, is gearing up to stand again for another term as general secretary.
McCluskey became the registered owner of the flat, which is near the fashionable Borough food market, in February. Unite paid £417,300 towards the £695,500 purchase price and signed an agreement with McCluskey, which has not been disclosed.
There is no other charge on the property according to the Land Registry, suggesting he did not take out a mortgage to cover his share of the cost.
When the details emerged a month ago, a union insider predicted there would be “much disquiet”. At the time Unite stated that under the shared equity deal the property must be sold within 12 months of McCluskey’s employment ending and Unite will get its 60% stake with a share of any profit.
Howard Beckett, executive director for legal services at Unite, said such agreements are “extraordinarily commonplace”, adding: “Unions have put such measures in place for senior officers for decades.”
Doesn't Add Up (28/09/16)
I said in a recent post that Len McCluskey's £400,000 'loan' from his own union (Unite) raised more questions than answers and it seems I may well be right, if the following entry on Wikipedia is accurate:
"McCluskey was elected as the National Secretary of the TGWU General Workers Group in 1990, and moved to London to work in the union's national headquarters.[1][3] In 2004 he became the TGWU's national organiser for the service industries.[3] In 2007, he was appointed as the Assistant General Secretary for Industrial Strategy of the newly merged Unite the Union.[3]"
"McCluskey was elected as the National Secretary of the TGWU General Workers Group in 1990, and moved to London to work in the union's national headquarters.[1][3] In 2004 he became the TGWU's national organiser for the service industries.[3] In 2007, he was appointed as the Assistant General Secretary for Industrial Strategy of the newly merged Unite the Union.[3]"
Because if Len moved to London in 1990, then why on earth would the Unite boss be seeking a generous 'loan' from his own union all of 26 years later - to help him buy a new £700,000 house?
Doesn't make any sense at all, if you ask me.
Doesn't make any sense at all, if you ask me.
Union Bosses (09/09/16)
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.
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.
