Labour must make a principled defence of trade union funding

Confronted by the Tories' cynical manoeuvres, Labour should defend union funding as the most open and democratic source of money in politics.

Even by the Tories' Machiavellian standards, the decision to use the new lobbying bill to crack down on trade union funding of Labour is a remarkably cynical manoeuvre. Under the move, reportedly the brainchild of George Osborne, measures will be introduced to include union funding of leaflets in election spending limits and to end self-certification of union membership. At present, only the marginal cost of the printing counts towards a party's spending cap but under the Tories' proposals, the full costs, including staffing and premises, will have to be declared. The new law will apply to those organisations "directly affiliated to political parties and those contributing £100,000 a year or more to political parties" (the unions, in other words), while excluding the Conservatives' large business donors. 

What this has to do with the latest lobbying scandal, which saw Patrick Mercer resign the Tory whip after allegedly receiving cash for questions from a fake firm, is a question you might well ask. As Conservative MP Douglas Carswell tweeted, "Can anyone tell me if it was concerns about trade union activity that prompted demands to deal with lobbying? Did I miss something?" But the Tories, who have been outraised by Labour in recent quarters, are determined not to let a good crisis to waste. Having lost the boundary changes, Osborne, who remains the Tories' chief electoral strategist, has seized a new opportunity to tilt the odds in his party's favour.  

Labour has responded by rightly describing the move as "a shabby and panicked response by Cameron to divert attention from a set of damaging headlines hitting the Conservative Party", while also emphasising that party funding reform (which all parties accept the need for) should be pursued on a cross-party basis. 

But if it is to counter the Tories' dark arts, it must also launch a principled defence of union funding as one of the most open and honest sources of money in politics. Many frequently attempt to draw an equivalence between the unions and the City tycoons and private equity barons who fund the Conservatives, but there is no comparison to be had between the big money donors seeking to buy influence over the Tories and funding from the unions, composed of hundreds of thousands of individual members who have democratically agreed to contribute through the political levy. 

Some Tories, most notably Robert Halfon, the MP for Harlow, have rightly urged their party to abandon its kneejerk hostility to the unions. As he wrote in a blog for The Staggers last year, unions are "essential components of the Big Society. They are the largest voluntary groups in the UK. They are rooted in local communities, and are very much social entrepreneurs. TUC research shows that trade union officers are eight times more likely to engage in voluntary work than the average." 

With union membership now on the rise for the first time since 2003, Labour's association with them should be seen as a virtue, not a vice. But unless the party is able to state as much with conviction, the Tories will continue to blacken their name. 

Demonstrators take part in a TUC march in protest against the government's austerity measures on October 20, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Unite stewards urge members to back Owen Smith

In a letter to Unite members, the officials have called for a vote for the longshot candidate.

29 Unite officials have broken ranks and thrown their weight behind Owen Smith’s longshot bid for the Labour leadership in an open letter to their members.

The officials serve as stewards, conveners and negotiators in Britain’s aerospace and shipbuilding industries, and are believed in part to be driven by Jeremy Corbyn’s longstanding opposition to the nuclear deterrent and defence spending more generally.

In the letter to Unite members, who are believed to have been signed up in large numbers to vote in the Labour leadership race, the stewards highlight Smith’s support for extra funding in the NHS and his vision for an industrial strategy.

Corbyn was endorsed by Unite, Labour's largest affliated union and the largest trades union in the country, following votes by Unite's ruling executive committee and policy conference. 

Although few expect the intervention to have a decisive role in the Labour leadership, regarded as a formality for Corbyn, the opposition of Unite workers in these industries may prove significant in Len McCluskey’s bid to be re-elected as general secretary of Unite.

 

The full letter is below:

Britain needs a Labour Government to defend jobs, industry and skills and to promote strong trade unions. As convenors and shop stewards in the manufacturing, defence, aerospace and energy sectors we believe that Owen Smith is the best candidate to lead the Labour Party in opposition and in government.

Owen has made clear his support for the industries we work in. He has spelt out his vision for an industrial strategy which supports great British businesses: investing in infrastructure, research and development, skills and training. He has set out ways to back British industry with new procurement rules to protect jobs and contracts from being outsourced to the lowest bidder. He has demanded a seat at the table during the Brexit negotiations to defend trade union and workers’ rights. Defending manufacturing jobs threatened by Brexit must be at the forefront of the negotiations. He has called for the final deal to be put to the British people via a second referendum or at a general election.

But Owen has also talked about the issues which affect our families and our communities. Investing £60 billion extra over 5 years in the NHS funded through new taxes on the wealthiest. Building 300,000 new homes a year over 5 years, half of which should be social housing. Investing in Sure Start schemes by scrapping the charitable status of private schools. That’s why we are backing Owen.

The Labour Party is at a crossroads. We cannot ignore reality – we need to be radical but we also need to be credible – capable of winning the support of the British people. We need an effective Opposition and we need a Labour Government to put policies into practice that will defend our members’ and their families’ interests. That’s why we are backing Owen.

Steve Hibbert, Convenor Rolls Royce, Derby
Howard Turner, Senior Steward, Walter Frank & Sons Limited
Danny Coleman, Branch Secretary, GE Aviation, Wales
Karl Daly, Deputy Convenor, Rolls Royce, Derby
Nigel Stott, Convenor, BASSA, British Airways
John Brough, Works Convenor, Rolls Royce, Barnoldswick
John Bennett, Site Convenor, Babcock Marine, Devonport, Plymouth
Kevin Langford, Mechanical Convenor, Babcock, Devonport, Plymouth
John McAllister, Convenor, Vector Aerospace Helicopter Services
Garry Andrews, Works Convenor, Rolls Royce, Sunderland
Steve Froggatt, Deputy Convenor, Rolls Royce, Derby
Jim McGivern, Convenor, Rolls Royce, Derby
Alan Bird, Chairman & Senior Rep, Rolls Royce, Derby
Raymond Duguid, Convenor, Babcock, Rosyth
Steve Duke, Senior Staff Rep, Rolls Royce, Barnoldswick
Paul Welsh, Works Convenor, Brush Electrical Machines, Loughborough
Bob Holmes, Manual Convenor, BAE Systems, Warton, Lancs
Simon Hemmings, Staff Convenor, Rolls Royce, Derby
Mick Forbes, Works Convenor, GKN, Birmingham
Ian Bestwick, Chief Negotiator, Rolls Royce Submarines, Derby
Mark Barron, Senior Staff Rep, Pallion, Sunderland
Ian Hodgkison, Chief Negotiator, PCO, Rolls Royce
Joe O’Gorman, Convenor, BAE Systems, Maritime Services, Portsmouth
Azza Samms, Manual Workers Convenor, BAE Systems Submarines, Barrow
Dave Thompson, Staff Convenor, BAE Systems Submarines, Barrow
Tim Griffiths, Convenor, BAE Systems Submarines, Barrow
Paul Blake, Convenor, Princess Yachts, Plymouth
Steve Jones, Convenor, Rolls Royce, Bristol
Colin Gosling, Senior Rep, Siemens Traffic Solutions, Poole

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.