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9 July 2013updated 12 Oct 2023 10:08am

Miliband’s gamble on union funding could cost Labour millions – but it is one he had to take

If the Labour leader is to be a consistent supporter of democracy and transparency, he cannot defend a system that allows unions to donate millions from their members without permission.

By George Eaton

Ed Miliband’s decision to support a new opt-in system of trade union funding for Labour is by some distance the biggest gamble he has taken since becoming party leader. At present, members of affiliated unions merely have the right to opt-out of paying the political levy (a portion of which goes to Labour) but under the new system they would be required to give their explicit consent. This reform, as I argued yesterday, is entirely necessary if Miliband is to be a consistent supporter of democracy and transparency.

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 when they sign up. 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 at all 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 far from easy for them to do so (just 10 per cent do) 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 workers into subsidising the party.

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