Select Committee on Deregulation Third Report


ANNEX II (continued)

Letter from the Clerk of the Committee to the General Secretary, GMB

The Deregulation Committee has begun its consideration of the proposal for the Deregulation (Deduction from Pay of Union Subscriptions) Order 1998. At its meeting on 13 January, concerns were raised regarding the provision to remove the requirement for employers to notify workers who used check off of increases in deductions. It was suggested that, as a result, there would be numbers of workers who were not informed in advance that deductions from their pay for union subscriptions were being increased.

In your response to the consultation paper you state that you notify your members of any increases in contributions. The Committee would like to know whether there are existing requirements for you to notify your members of increases in subscriptions, and also what efforts are made to ensure that all union members are notified. The Committee also wish to know whether there are requirements that specify the form in which such notifications are carried out and if not how the process is carried out.

14 January 1998

Letter from the National Legal Officer of the GMB to the Clerk of the Committee

The General Secretary, John Edmonds, has asked me to reply to your letter.

1.  There is no requirement in our Union's rules that we notify our members of increases in contributions before they take effect.

2.  However, our Congress approves contribution increases only on condition that time is allowed to notify members directly of the increase, before it takes effect. In both 1996 and 1997, our Congress (held in the first half of June), approved increases in our contribution levels by amendments to our rules. However, in each case, the increases did not take effect until the first week in October of that year. This timetable was expressly designed in order to allow each individual member to be notified of the increase.

3.  Between June and October, therefore, each GMB region notified its members (whether paying by cash, by cheque or through direct debit) of the impending increase. I attach a copy of a sample form which was adapted at Regional and Branch level as appropriate.

4.  It follows that there are no requirements specifying the form for this notification, but the Committee will be able to see that the notification is quite clear in advising the individual of the relevant amount of the increase.

So in practice, GMB ensures that contribution increases are not brought in before the membership is advised of the Congress decision.

21 January 1998

Letter from the Clerk of the Committee to the General Secretary of the TUC

The Deregulation Committee has begun its consideration of the proposal for the Deregulation (Deduction from Pay of Union Subscriptions) Order 1998. At its meeting on 13 January, raised a number of questions about aspects of the proposal.

(i) Transitional Arrangements

You stated in your response to the consultation paper that existing authorisation forms did not refer to a three year limit and that authorisation for check off, given by workers, should not be seen to be limited in this way. Consequently, you argued that repeal of the requirement to re-authorise should simply lead to all existing authorisations becoming indefinitely valid. Accordingly, given that you maintain that workers are aware of their rights to withdraw from check off, you contended that the transitional arrangements were unnecessary. The Department argued that it may be difficult to determine in particular cases whether a worker's authorisation should be construed to have been given for indefinite deduction or to have been given on the understanding that renewal would be required (paragraph 44 of Explanatory Memorandum to the proposal). It was claimed that the transitional arrangements were thus essential to give legal certainty on this point to employers and workers. The Committee would be grateful for any further clarification of your views on this point.

(ii) Removal of Requirement for employers to notify workers who use check off of increases in amounts deducted.

Concerns were raised that if this requirement was removed, there would be numbers of workers who were not informed in advance that deductions from their pay for union subscriptions were being increased. In your response to the consultation paper you state that "unions already notify their members of increases in subscriptions" (paragraph 8). The Committee would like to know whether requirements exist for all unions affiliated to the TUC to notify their members of increases in subscriptions, and what efforts are made to ensure that all union members are notified. They also wish to know how such notifications are carried out.

14 January 1998

Letter from the General Secretary of the TUC to the Clerk of the Committee

In our response to the Government's consultation paper on the repeal of the check-off restrictions, the TUC argued against the suggested transitional arrangements on the grounds that people do not regard their union membership as being for a fixed period of three years. We are not aware of any initial consent forms or re-authorisation forms that refer to a three year validity for subscription deductions. A TUC survey of the forms used by some of our largest affiliated unions in the most recent re-authorisation exercise confirms this:

UNISON

I authorise you to continue deduction of my UNISON subscription from my pay

Transport and General Workers' Union

I hereby authorise the continued deduction of my Union contributions from my wages/salary

Amalgamated Engineering and Electrical Union

I hereby authorise my employer to deduct from my wages and pay direct to the Union my contributions to the Amalgamated Engineering and Electrical Union

GMB

I hereby authorise the deductions of my union subscriptions/contributions from my wages

Manufacturing Science Finance I hereby authorise the deduction of subscriptions to my union MSF from my salary

Union of Shop, Distributive and Allied Workers

I am a member of Usdaw/Sata and I authorise my employer to deduct from my wages the amount of contributions payable by me under the terms of the Union's rules as amended from time to time.

Communication Workers Union

I authorise the deduction of my union contributions from my salary by the above named employer

Graphical, Paper and Media Union

I hereby authorise my employer to deduct union contributions from my wages or salary at source and to pay such deductions to the Graphical, Paper and Media Union

Institution of Professionals, Managers and Specialists

I hereby authorise the deduction of my IPMS subscription from my Salary

Thus the TUC maintains that there is no need for any notification to members about the continued deduction of their union subscriptions. We see no reason why the repeal of the requirement to seek re-authorisation should impose any new obligations on employers, as union members already expect their membership to continue unless otherwise instructed.

The Committee also sought further information on the repeal of the requirement for employers to give advance notice of increases in subscriptions to those on check-off. The TUC welcomed the Government's proposal to repeal this provision as it is an unnecessary burden on business. As a matter of good practice trade unions notify all their members about increases in subscriptions, not just those on check-off. This is done in a variety of ways. Some unions put the information about increases in subscriptions in journals which are posted to individual members. Some unions print special leaflets about the increases in subscriptions which are either sent to members' home addresses or distributed at the workplace or through union branches.

Unions take the view that their members expect to receive information about subscription levels from the union rather than the employer, and the TUC is satisfied that unions have the appropriate procedures in place to ensure that proper notice is given.

21 January 1998

Letter from the Clerk of the Committee to the General Secretary, Retained Firefighters Union

(i) Re-authorisation Requirement

One suggestion that was made in the course of the consultation process was that the requirement for re-authorisations every three years prevented workers continuing to pay union subscriptions unwittingly since they would regularly be put in a position of deciding whether they wanted to continue paying their union subscriptions by check off or at all. However, the point was also made by UNISON that the re-authorisation process had lead to numbers of workers inadvertently falling out of union membership because they failed to return their re-authorisation before the expiry of the authorisation or at all.

You noted in your response to the consultation document that in the course of the second process of renewals of authorisations that you carried out, the union experienced a 3% fall in membership. The Committee would be grateful if you could inform them what proportion of the 3% of workers who failed to re-authorise did subsequently re-join.

(ii) Notification of Increases in Deductions

Concerns were raised at the Committee's meeting on 13 January regarding the provision to remove the requirement for employers to notify workers who used check off of increases in deductions. It was suggested that, as a result, there would be numbers of workers who were not informed in advance that deductions from their pay for union subscriptions were being increased. The Committee would like to know whether the Retained Firefighters Union is required to notify its members of increases in subscriptions, and how such notifications are carried out.

15 January 1998


 
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