Why Miliband should support an opt-in system for trade union donations

It would give greater legitimacy to Labour funding and force trade unions to make a positive case for supporting the party.

Ahead of Ed Miliband's speech tomorrow on the Labour-union link, one change rightly under discussion within the shadow cabinet is reforming the funding system so that members of affiliated unions are required to opt-in to paying the political levy (a portion of which goes to Labour, with the remainder spent on campaigning and other causes), rather than having to opt-out. 

At present, of the 15 unions affiliated to Labour, Unison is the only one to allow new members to choose whether or not they contribute to the party. Only two others, the Musicians’ Union and USDAW, mention the existence of a political fund (but do not mention Labour) and six affiliated unions, including Unite and the GMB, don’t mention Labour on either the "about us" or membership sections of their website. As a result, while all members have the right to opt-out of paying the levy, it is not easy for them to do so and many will not even be aware of its existence. It is this arrangement that allows the Tories to argue that unions such as Unite (just 37.5 per cent of whose members vote Labour) dupe their members into subsidising Labour.

In recent party funding talks, Labour has opposed an opt-in system, principally due to concern that it would lead to a fall in donations (the party receives around £8m a year in affiliation fees). But if Ed Miliband's support for transparency and accountability is to be consistent, it can no longer do so. (Similarly, shareholders should be required to give approval to company donations to the Conservatives and other parties.) In a post last year on Labour List defending the opt-out system, Luke Akehurst pointed out that workers could join a non-affiliated union, that they are balloted every 10 years on whether to maintain a political fund and that they can bring disaffiliation motions to their union conferences. All of which is true, but hardly represents a model of transparency. 

But as well as right in principle, an opt-in system would have political benefits for Labour. It would make it easier to justify exempting union affiliation fees from the £5,000 cap on donations proposed by Miliband on the grounds that they should be treated as an aggregate of individual members' contributions, rather than as one lump sum, removing one of the stumbling blocks to cross-party agreement. As a Labour source told me: "It would allow us to frame the Tories as the party of big money and us as the party of millions of working people." 

Requiring trade unionists to opt-in would also force unions to make a more explicit and positive case for supporting Labour, with the possibility of greater engagement with the party. In the 2010 leadership election, turnout among trade unionists was just 9 per cent, with 15 per cent of ballots spoilt, in most cases because workers failed to state that they agreed with "the aims and values" of the party. Partly for this reason, another reform under consideration is to make those who pay the political levy full members of the party, rather than merely affiliated ones. At a stroke, this would dramatically increase Labour's total membership (around three million pay the political levy) and would make it impossible for the Tories to dismiss trade unionists as the plaything of the union "barons". It would be a logical continuation of the "one member, one vote" reforms introduced by John Smith in 1993. 

After the worst week of his leadership since 2010, Miliband needs to recast the relationship between the unions and the party and redefine the terms of debate in Labour's favour. These two reforms would be a good place to start. 

Ed Miliband addresses TUC members in Hyde Park at the end of a march in protest against the government's austerity measures. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Jeremy Corbyn sat down on train he claimed was full, Virgin says

The train company has pushed back against a viral video starring the Labour leader, in which he sat on the floor.

Seats were available on the train where Jeremy Corbyn was filmed sitting on the floor, Virgin Trains has said.

On 16 August, a freelance film-maker who has been following the Labour leader released a video which showed Corbyn talking about the problems of overcrowded trains.

“This is a problem that many passengers face every day, commuters and long-distance travellers. Today this train is completely ram-packed,” he said. Is it fair that I should upgrade my ticket whilst others who might not be able to afford such a luxury should have to sit on the floor? It’s their money I would be spending after all.”

Commentators quickly pointed out that he would not have been able to claim for a first-class upgrade, as expenses rules only permit standard-class travel. Also, campaign expenses cannot be claimed back from the taxpayer. 

Today, Virgin Trains released footage of the Labour leader walking past empty unreserved seats to film his video, which took half an hour, before walking back to take another unreserved seat.

"CCTV footage taken from the train on August 11 shows Mr Corbyn and his team walked past empty, unreserved seats in coach H before walking through the rest of the train to the far end, where his team sat on the floor and started filming.

"The same footage then shows Mr Corbyn returning to coach H and taking a seat there, with the help of the onboard crew, around 45 minutes into the journey and over two hours before the train reached Newcastle.

"Mr Corbyn’s team carried out their filming around 30 minutes into the journey. There were also additional empty seats on the train (the 11am departure from King’s Cross) which appear from CCTV to have been reserved but not taken, so they were also available for other passengers to sit on."

A Virgin spokesperson commented: “We have to take issue with the idea that Mr Corbyn wasn’t able to be seated on the service, as this clearly wasn’t the case.

A spokesman for the Corbyn campaign told BuzzFeed News that the footage was a “lie”, and that Corbyn had given up his seat for a woman to take his place, and that “other people” had also sat in the aisles.

Owen Smith, Corbyn's leadership rival, tried a joke:

But a passenger on the train supported Corbyn's version of events.

Both Virgin Trains and the Corbyn campaign have been contacted for further comment.

UPDATE 17:07

A spokesperson for the Jeremy for Labour campaign commented:

“When Jeremy boarded the train he was unable to find unreserved seats, so he sat with other passengers in the corridor who were also unable to find a seat. 

"Later in the journey, seats became available after a family were upgraded to first class, and Jeremy and the team he was travelling with were offered the seats by a very helpful member of staff.

"Passengers across Britain will have been in similar situations on overcrowded, expensive trains. That is why our policy to bring the trains back into public ownership, as part of a plan to rebuild and transform Britain, is so popular with passengers and rail workers.”

A few testimonies from passengers who had their photos taken with Corbyn on the floor can be found here