Trade union finances

Changes made by the Trade Union Act 2016 (TUA 16) require union members to opt in to making contributions to the union’s political fund. The bill reverses that, so that members will automatically make contributions unless they opt out of the political fund.

Unions would be required under provisions of the bill to notify members of any political resolution passed by members and of their right not to contribute to the political fund by giving an opt-out notice.

Another provision brought in by the TUA 16 and which would be reversed by the bill is the restriction on “check-off” for public sector workers which came into force on 9 May 2024 through the Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations 2024.

Check-off is a system under which employers deduct union subscriptions from workers’ wages. The 2024 prevented specified public sector employers using check-off unless employees had an alternative means of paying subscriptions, such as direct debit, and the unions made a “reasonable” payment to the employer for their costs.

The bill amends TULRCA by removing section 116B which contains those provisions.