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Tuesday, July 09, 2013

The Unions and Funding the Labour Party

Incredible!

Ed Miliband is actually proposing to do something that the Socialist Party has been demanding for over 100 years -- stop the automatic contracting-in of trade union members to pay a political levy to the Labour Party.

When in the early 20th century some unions started giving money from their funds to the Labour Party this was challenged by a member of the Liberal Party called Osborne. He won and we've refused to support the resulting campaign to reverse the "Osborne Judgement". For a contemporary view see here.

The then Liberal government, to retain the parliamentary votes of Labour MPs, did reverse it and unions were authorised to set up a political fund, separate from their other funds, from which money could be paid to the Labour Party. Those who objected to contributing to this fund could opt out of paying; otherwise you paid it.

To punish the trade unions after the 1926 General Strike the Tory government reversed this in 1927, requiring those who wanted to contribute to the fund to contract in. This lasted till the 1945 Labour government restored the original position, which survives to this day and which Miliband is now proposing should revert to what was introduced in 1927.

This is something we can only welcome as we've always criticised workers being in effect tricked into contributing money to the anti-working class Labour Party. Naturally, our members opt out of paying it. If Miliband's proposals go through then we will no longer need to do this.

Adam Buick

1 comment:

  1. UCW general secretary Billy Hayes criticised Miliband brand of democracy. This from a person who claims a democratic mandate was elected IIRC 13,000 to the runners-up 12,000 from a possible vote of a nearly 200,000.

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