Labour’s growing dependence on the unions
The unions were responsible for nearly 90 per cent of all donations in Q4 2010.
By George Eaton Published 23 February 2011 18:17
The latest political donation figures are out and they show how financially dependent Labour has become on the trade unions. In quarter four of 2010, the party received £2,545,611 in donations (excluding public funds or "short money"), £2,231,741.90 or 88 per cent of which came from the unions, compared to 36 per cent in the final quarter of 2009. Private donations have all but collapsed since Ed Miliband became leader, with just £39,286 raised from individual donations to CLPs.
In total, the unions were responsible for 62 per cent of all Labour funding last year (up from 60 per cent in 2009), with one union, Unite, providing nearly a quarter (23 per cent) of all donations. Back in 1994, when Tony Blair became Labour leader, trade unions accounted for just a third of the party's annual income. But, as the graph below shows, Labour's dependence on the unions has increased hugely since he left office.

As I've argued before, there is no comparison between the unions and the big-money donors the Tories rely on. For instance, donations from Unite are taken from the union's political fund, to which 1,291,408 members contribute voluntarily. But it remains unhealthy for the party to be so reliant on only a few sources of income. Widening Labour's funding base remains a critical challenge for Ed Miliband – one that he must now address.
NB: To those of you who think I've let the Tories off the hook, I refer you to my recent blog on the Conservatives' growing financial dependence on the City. Since David Cameron became party leader, donations from the Square Mile have risen from 24.67 per cent of all donations (£2.7m) in 2005 to 50.79 per cent (£11.4m) in 2010.
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34 comments
I'm happy to contribute through my Union. It is a transparent process that people sign up to. I also give my time. I won't however be donating any extra dosh until the LP demonstrates that is is Socialist again.
One good reason for not funding these so called socialists:
"First, the Government can veto pay and conditions agreements between the rail unions and private train operating companies. Secondly, the Government can waive penalty payments incurred by private train operating companies involved in industrial disputes. Thirdly, the Government can provide compensation—this is staggering, and I do not know of any other example in any other industry, public or privatised—to private train operating companies that have lost revenue through involvement in industrial disputes. In other words, on top of the billions of pounds of subsidy and profit already paid to private train operators, it is now Government policy to bankroll private train operating companies in their disputes with the rail unions. That is subsidising a subsidy. It is subsidising industrial relations failure on behalf of employers".
Now read the rest. The Unions are wasting ordinary people’s hard earned graft on these fraudulent expenses thieves.
http://www.publications.parliament.uk/pa/cm200506/cmhansrd/v...
Could we see the comparsions between losing the election and Ed Miliband becoming leader? Those with Q4 would display the difference.
Regardless of the high reliance on the Unions, I know which is more democratic the city or ordinary people's subs?
But agreed Labour need to work on a grassroots network
It is odd that on the one hand Unions are organising the "March for an Alternative" on March 26th, a march in favour of a program fundamentally at odds with the current policy of both Labour and Tories, and yet on the other these numbers would indicate unions should have a significant amount of leverage over Labours policy - and yet Labours policy (one of savage cuts) seems at odds with what unions are promoting on the ground.
When will these unions pull their finger out and start supporting politics that actually favour their members instead of bankrolling a neo-liberal party? Every penny the unions invest in labour is wasted. This is a part that didn't roll back the anti-union laws, a party that wants cuts, and a party intent on privatising much of our public services
Sos this is the web page:
http://www.publications.parliament.uk/pa/cm200506/cmhansrd/vo060228/hall...
From the same debate:
(28th February 2006: Column 30wh)
I shall give some examples. Richard Branson of Virgin Trains and Brian Souter of Stagecoach can expect payouts from a Labour Government whenever they take on a rail union. That is beyond belief. Not only is it obviously wrong, it is an unprecedented and dangerous departure from existing policy on private sector industrial relations. It could have widespread implications beyond the confines of the railway industry. Where will the Government next intervene to prop up multi-million-pound private companies in their battles against the unions?
What about the cost of that ill-conceived policy? In answer to a parliamentary question on 14 March 2005, I was told that the Strategic Rail Authority has paid a staggering £23 million to compensate private operating companies for revenue losses during strike action between March 2003 and November 2004. That £23 million could have provided investment in the rail service.
George,
As the Unions repesent millions of the ordinary working man and woman and it is they who pay in to the unions, then it really isn't a case of an unhealthy few funding the labour Party is it, in fact I think it's a far healthier contribution than the ones coming from the seriously unhealthy and very much feweer Tory donors that you mention.
Apologies for the spelling errors there.
The only problem with the cuts are that they arn't half savage enough to get us out of the financial mess left by Labour.
@Ross
I agree with you about the Labour Party. But what alternative does the Trade Union movement have? It will be very difficult to institutionalise any gains made by the Trade Union movement unless they have some kind of political representation at the top - even if it is unsatisfactory. Would the NHS or minimum wage have happened without a Labour party? I think it would be bad strategy for the trade unions to give up on Labour. Instead they should (among other activities) try to support those voices in the Labour Party who really are non-neoliberals. Maybe.
It is fundamentally wrong for Unions to collect money from members and then distribute to any political party.
By law, funds should be raised direct from individuals only, with a maximum amount being under £1,000.
This would mean an equal playing field and hopefully rid the country of the much of the spin, lies and career politicians we see today.
We need to get back to beliefs and morals. If you are a socialist, tell us you are a socialist dont lie, hide, dress it up in order to get elected and then negatively impact those who did not realize exactly what you stand for.
That kind of action tells me that the politician is more interested in personal power and glory than the opportunity to do some good for the people.
Marcus
'It is fundamentally wrong for Unions to collect money from members and then distribute to any political party'.
The Unions hold a vote on party donations to political funds.
Each member has a choice on whether they wish to join a union or not knowing that some of their membership fees go towards political funding.
A Union member can ask to stop contributing to any political funds that may be taken from their membership, they are free to contract out at any time even if they voted for the political funding in the first place.
Each union member funding a political fund is paying far less than a thousand per annum.
It's actually all very democratic and no one is really forced into this situation at all.
Give me a union funded party anyday, they represent the people whereas a hedgefund funded party represents a select few.
Bob - the NHS would have happened under the Liberal Party, but probably wouldn't have been centralised.
The Lib Dems were backing a regional minimum wage, which would have been better for people living in the south east of England, but Labour decided to implement a national minimum wage.
It's wrong to say that Labour are the only party that implement policies that help the disadvantaged.
Labour will never go any further left than social democracy again so it's hard to see why the likes of McCluscky still support Labour for reasons other than they realise that a socialist party would never win an election, so perhaps their logic is "better the devil you know."
@bob
I agree that the union movements need political representation. It's just that I think it needs strong, coherent, political representation that works in favour of working people and doesn't have cosy links with the city and all manner of horrid people (as a quick example, Mandelson buddying up with Said Gaddafi)
The Labour Party had it's day. But lets not keep flogging a dead horse. Blair dropped Clause IV. It has morphed from a reformist socialist party in to a neo-liberal party; more concerned with its respectability in the city of london than it what it can do for working people.
There remains lots of good people in Labour. But you only have to look at the situation right now to see just how bankrupt it is: you have Labour councillors pushing through cuts, many of them without a squeak. They aren't offering resistance. That's not a workers party.
The Unions need to pull away from Labour and form a new workers party. A workers party that isn't afraid of pissing off the city, of speaking on behalf of working people and of having a Clause IV-esque constitution (i.e. socialist). They are just wasting money and deluding themselves with Labour. It's a lost cause. The Unions built Labour once, they can rebuild a new party now.
As a former member of Unite, I have to say that they do not make it well known that a large proportion of your subscription go to the Labour party. As someone who has paid 11 months' subscription fees I am quite irritated to say the least to find out that this is the case. The fees soon add up and as a Green party supporter I am displeased with this. I agree with an above comment that it should be opt in or at least made explicit upon joining.
The odd relationship with the Unions and the Party will have to be sorted out one of these days. Unions have to understand that they cannot run the Labour Party but can support it to achieve their ends. Either that or form their own Workers Party and put up their own candidates for MPs for Election. They could also run their own Schools and Academies and Libraries rather like they did in the olden days of Mechanics Institutes and the like.
come on ed side by side with Brendan now
industrial and political synthesis please
ffs we should be ripping these bastards to pieces
The argument about union members not being obliged to make political contributions is disingenuous. Why not make the contribution dependent on members opting in? This would be a better reflection of the how many of them were really willing to put their hands into their pockets for the Labour Party. It would also remove much of the stigma attached to union funding.
And while they are at it, it might be a good idea to reform the way the unions go about organizing their part of the vote for the Labour leadership so the result looks a little less like a stitch-up.
The work place has changed with the growing use of technology and demise of manufacturing industries. Blair and Brown were New Labour and not for the working classes or the left. Not much can change with Ed. Cheap immigrant labour from Europe and the rest of the world and globalisation- means that big business can always find labour cheaper elsewhere. We have the minimum wage and european workers rights to hopefully stop exploitation here, but that can't stop the demise of labour's union funded base.
One of the big mistakes Labour made was turning some public sector workers in to fat cats. Paying ridiculous salaries there and at the bbc, then laying off minimum wage workers.People have access to too much information to be duped. neil Kinnock's salary? Prescott's two jags- are Labour really credible as a voice for working people?
"neil Kinnock's salary? Prescott's two jags- are Labour really credible as a voice for working people?"
What business of yours is it how many Jags he has? Did he steal them from you? What kind of real leadership do you think you can attract with crap salaries? Did you ever see Scargil's mansion? It would have done a multi millionaire proud. Did that make him a lousy Communist or a poor union leader?
I wouldn't give a penny. Useless neo- liberal lackeys
Hi Buckskins, how are you? Since we all paid for Prescott's jags and for Kinnock's salary, I think it's the business of all of us. And neither has done much other than suck on the state's udders-no leadership there.
Scargill? Lousy communist, poor union leader, egomaniac.
"Bob - the NHS would have happened under the Liberal Party, but probably wouldn't have been centralised."
They had long enough to try and they never established any such thing.
@swatantra
"Either that or form their own Workers Party and put up their own candidates for MPs for Election."
LOL, that is why they set up the Labour Party!!!
should be 100%
are we getting 10 % tory money?
please renatioanalise eveything when you get back into power
@thinkov.
Entirely agree!
The Tories try to demonise the Unions and public sector workers, but the truth is, the Unions are about sticking up for ordinary working people and if this is what Labour believe in, then it is in the Union's interest to support them, it makes sense.
You know where the Tories priorities lie, when you look at the source of their donations. Banks and big business. Ordinary folk, way down the list.
"It is fundamentally wrong for Unions to collect money from members and then distribute to any political party"
This is the most insane notion I ever saw. If I wanted to donate to something, and joined with a few others and we decided to donate together, what would be more democratic? Unions have to follow rules of transparency, something corporations seldom do. Besides: unions (of people) represent peoples wishes. Corporations do not. They represent only the wish of a few to be able to exploit the system, the land, the resources and the wish to be able to exploit all of the nations public resources in favor of _earnings_ and the accumulation of wealth to a few. Furthermore they externalise costs like environmental cleanup and put yet another burden on people (a de facto new heavy tax on people and the nation) and utilise roads, firedepartments, police, etc. not to mention schools (educated employees) for free. If _any_ organisation is legitimate it is the Unions and NOT corporate profit accumulating systems.
It is indeed a great worry to activists the overdependence of Labour funding on one source, and it has been a huge change since the late 90s. See my article of 20 Feb at Left Foot Forward here.
http://bit.ly/gcVs6h
How much is this man paid? union leaders on bosses wages. What the f@@k does this idiot know or care about workers earning £15.000 and less..
@ Lou:
Neither solution is right.
If the Labour does not grasp that a radical alternative is what's required. Then they will loose the next election. The electorate did not want New Labour the kicked them out!! Labour must stop trying to justify policies that the electorate rejected. They were wrong about going to war wrong about the worship of the free market wrong about the banks and wrong about privatisation. Wrong wrong wrong!! Just admit this and move on. Mr posh and Mr Pledge are firmly camped on that New Labour ground. I know it's hard living in that Westminster bubble but us ordinary folks want a real alternative. Move on Mr Miliband move on.
Unions is part of democracy, and if anyone can't see that, well, I can't help you.
The City's main excistence is to help the tories keep in power, not to help the citizens of our land. How's that?
'Private donations have all but collapsed since Ed Miliband became leader, with just £39,286 raised from individual donations to CLPs.'
Whilst this is true, it seems that you insinuate a positive correlation between the two. Might it not have something to do with people feeling the tightening of belts in these times of austerity too?