Labour MPs face claims of ‘self-interest’ over political donations by unions
The Employment Rights Bill would change the law so that trade unions can automatically sign their members up to a political fund, unless they opt out.
Labour MPs face accusations of “self-interest” in their efforts to change the law on trade unions’ political donations.
Trade unions can assist political parties and candidates through their opt-in political funds, with some of the largest organisations including Unite, Unison and GMB making contributions to Labour campaigns.
The Employment Rights Bill would change the law so that trade unions can automatically sign their members up to a political fund, unless they choose to opt out.
Conservative MP Jerome Mayhew accused the Government of introducing a “circular Bill of self interest”.
The MP for Broadland and Fakenham told the Commons: “What are the unions paying for?
“Whatever it is, they’ve been handsomely repaid in the drafting on this Bill.”
No Labour MPs in the Commons chamber raised their hands when Mr Mayhew invited them to “put their hands up if they have not received any cash from the unions”.
Mr Mayhew claimed Labour had received more than £31 million from trade unions between 2019 and 2024 and later asked: “Why do we need this clause?
“What is the problem that the Labour Party is trying to fix?
“Is £31 million just not enough?
“What this clause encourages is that union members when they’re signing up, their unions will take advantage of their distraction and they’re not focused on this, and they will fall into what is effectively a subscription trap.”
Mr Mayhew quoted from a Government press release from November, when Department for Business and Trade ministers promised “measures to crack down on ‘subscription traps'” where “consumers are frequently misled into signing up for a subscription”.
Sarah Russell, Labour MP for Congleton, intervened in his speech and said: “There is a massive difference between major corporations which want to take money out of people’s bank accounts every month and trade unions who want to represent people as effectively as possible in the workplace.”
Mr Mayhew replied: “Where you are taking advantage of people’s inattention, which this clause expressly sets out, then you are taking advantage of people for financial gain.
“The difference is, the people who gain in this instance are the members opposite.”
He went on to say that Labour MPs Ian Lavery (Blyth and Ashington) and Katrina Murray (Cumbernauld and Kirkintilloch) had each received several thousands of pounds from trade unions, according to their registers of interest, before Laurence Turner intervened.
Mr Turner, Labour MP for Birmingham Northfield, said “trade union donations have been declared” by MPs in the chamber, but added: “Donations from employers that have a direct, private interest in particular sectors that we have debated in this place have not.”
The Conservative MP replied that Mr Turner had employed a “classic distraction technique”.
He continued: “This is a Bill that’s addressing the unions, it’s union membership, and this is a clause that directly moves money from unsuspecting union joiners directly to the Labour Party.”
Mr Lavery had earlier told the Commons the Bill “turns the tide on decades of anti-trade union laws”.
Business minister Justin Madders, who introduced the Bill, had said: “There are many people eager to speak in the debate today which will ensure workplace rights are fit for a modern economy, empower working people and contribute to economic growth.
“I urge members to support this Bill and the amendments we are moving today, which will show that we are pro-business, pro-worker, pro-family, and pro-growth.”
