Select Committee on Deregulation Third Report


ANNEX II (continued)

Letter from the General Secretary of the Amalgamated Engineering and Electrical Union (AEEU) to the Clerk of the Committee

I set out below the position of the Amalgamated Engineering and Electrical Union regarding i) Re-authorisation requirement and ii) Notification of Increases in Deductions.

i)   Re-authorisation Requirement

While the Amalgamated Engineering and Electrical Union supports the principle of members choosing whether or not they wish to continue paying subscriptions, we note difficulties in members inadvertently failing to return their re-authorisation before the expiry of the authorisation period, if at all.

However, it is difficult to calculate exactly the number of members that have been lost by the AEEU as a result of problems stemming from the re-authorisation process. For a number of reasons, the precise amount cannot be calculated, not least the fact that members that might not re-authorise membership may do so for reasons other than those connected with the re-authorisation process itself. But the AEEU does recognise the problem, as the union did in its original response to the consultation document.

ii)  Notification of increases in deductions

The Amalgamated Engineering and Electrical Union does notify its members of increases in union subscriptions. Members are notified in advance of increases through the principal AEEU journal, Union News.

However, it should be noted that, as a result of legislation, there does exist an anomaly. If union subscriptions are levelled as a percentage of a member's salary, there is no obligation to notify members of subscription increases resulting from an increase in salary. The percentage remains the same while the subscription rises. Clearly, the Deregulation Committee should consider this anomaly.

20 January 1998

Letter from the Clerk of the Committee to the Senior Researcher of the Graphical, Paper and Media Union

The Deregulation Committee has begun its consideration of the Deregulation (Deductions from Pay of Union Subscriptions) Order 1998

(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 if 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 if at all.

You noted in your response to the consultation document that the re-authorisation process posed serious problems for numbers of your members, particularly those with literacy or language difficulties. The Committee wish to know whether you suffered a drop in membership as a result of the re-authorisation processes which were carried out, and if so, what proportion of individuals who dropped out of union membership subsequently re-joined.

(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. You note in your response to the consultation document that unions invariably inform their members of increases in subscriptions. The Committee would like to know how the Graphical, Paper and Media Union carries out this process.

16 January 1998

Letter from the Senior Researcher of the Graphical, Paper and Media Union to the Clerk of the Committee

With regard to the first question you raise, the GPMU does not have a record of the exact number of members who left the union as a direct result of the re-authorisation process or the number of individuals who dropped out of union membership who subsequently re-joined. It would be particularly hard to establish these figures at this time since the exercise of ensuring members completed the re-authorisation requirements was largely conducted at branch and chapel level within the GPMU. A great deal of staff time and effort was devoted to ensuring that any membership drop was minimised and examination of the trend in GPMU membership figures before and after the re-authorisation process indicates that this was largely successful. The GPMU is obviously concerned at the loss of members for whatever reason but, as I stated in my letter to Ms Jenny Thomas dated 10 October 1997, our main objection to the requirement of a three-yearly re-authorisation for check-off purposes is the unfair, unnecessary and bureaucratic burden it imposes upon trade unions, trade union members who pay subscriptions via check-off and employers who operate check-off.

You also asked for information on how the GPMU informs members of increases in membership subscriptions. This process begins with the publication of the GPMU Rule Book which stipulates the basic weekly contribution payable by members through their respective branches and the dates and amounts of any future increases. The current Rule Book (published in 1996) states that the basic contribution shall be increased by 10p per week on the first Monday in April of each year. Shortly before that date a circular is sent to all GPMU branches confirming the increase will take place and this, together with any additional increases introduced at branch level, is communicated to GPMU chapels. The chapels are then able to inform GPMU members of the total increase whether they pay their subscriptions via check-off or use alternative means such as direct debits.

21 January 1998

Letter from the Clerk of the Committee to the Industrial Relations Directorate, Department of Trade and Industry

The Committee asked Rowley Ashworth Solicitors for their comments on the arguments put forward in the Explanatory Memorandum on the need for the transitional arrangements. I enclose a copy of their letter to the Committee of 19 January. The Committee would be grateful for your comments on the points raised.

At its meeting today, the Committee noted Rowley Ashworth's argument that the wording of authorisations to deduct union subscriptions, even those given after the requirements for re-authorisation came into force in 1993, indicated that authorisation was already being given by workers for an indefinite period. If the requirement for re-authorisation every three years were to be lifted then the authorisation given would become indefinite once again. As a result, it would appear that there is no need for the transitional arrangements proposed. The TUC reported to the Committee that it was not aware of any current authorisation forms that referred to a three year limit.

It was suggested that instead of the transitional arrangements a requirement could be placed on unions to notify their members - possibly in the ways currently used to notify members of increases in subscriptions - of the fact that their authorisations for check off deductions were now for an indefinite period. Such notification could be given through union journals or newsletters.

The Committee repeated at its meeting today the concern expressed in its letter of 14 January that, should the transitional arrangements be found to be necessary, the prescribed notice should be made simpler. Further to your request of 20 January that the Committee highlight the areas of the notice that were unnecessarily complicated, I enclose a suggested simplified draft. The Committee would be most grateful for your views on this suggested form. It would also be grateful for your views on Rowley Ashworth's suggestion that the notice simply advise workers that check off will continue indefinitely and without prior notice of any increases unless the worker gives notice to the employer to terminate deductions.

SCHEDULE

Article 3

FORM OF NOTICE TO BE GIVEN UNDER ARTICLE 3(2)

DEDUCTION OF TRADE UNION SUBSCRIPTIONS FROM PAY

Following the coming into force of the Deregulation (Deduction from Pay of Union Subscriptions) Order 1998 you no longer need to re-authorise payments of trade union subscriptions by "check off" (deduction from pay by your employer) every three years and your employer need not give you notice in writing of any increase in your subscription.

If you started paying union subscriptions by check-off before [date of coming into force of 1998 Order] and are content for these new arrangements to apply to you, you need do nothing.

If, however you want the previous arrangements to continue to apply to you, you must complete the form below and return it to [name and address of employer] within fourteen days of your receipt of this notice.

Name...........................................................................................

In accordance with the Deregulation (Deduction from Pay of Union Subscriptions) Order 1998, I give notice that any authorisation of the deduction of trade union subscriptions from my wages is to continue to be treated as ceasing to have effect three years after it was given and as authorising increases in the amount deducted only where my employer has given me prior written notice as required by section 68 of the Trade Union and Labour Relations (Consolidation) Act 1992 (as substituted by section 15 of the Trade Union Reform and Employment Rights Act 1993).

Signature.....................................................................................

Date............................................................................................

27 January 1998


 
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