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THE UNION
MODERNISATION FUND
What is the
Union Modernisation Fund?
The purpose of the Union
Modernisation Fund is to provide financial assistance to independent trade
unions and their federations in support of innovative projects which speed
unions' adaptation to a changing labour market and new ways of working. This
will enhance unions' ability to make a full and effective contribution to
constructive employment relations and to the economy as a whole.
It is
envisaged that the size of the Fund will be in the region of £5 - £10 million in
total, with funding spread over several years, beginning in 2005/06.
Background
The
establishment of the Union Modernisation Fund was announced in Parliament on 11
February 2004 by Gerry Sutcliffe MP, Parliamentary Under Secretary of State for
Employment Relations. At the same time he announced that the Government was
tabling an amendment to the Employment Relations Bill (now the Employment
Relations Act 2004) which would provide the legislative basis for the
establishment of the Fund. Section 55 of that Act inserts a new section into the
Trade Union and Labour Relations (Consolidation) Act 1992 which creates a power
for the Secretary of State to make funds available to independent trade unions
and federations of trade unions to modernise their operations.
The policy
decision to establish the Union Modernisation Fund has been the subject of a
Regulatory Impact Assessment (RIA), contained in the
RIA for the Employment Relations Act 2004.
Click here (MS Word 22Kb) to read Mr Sutcliffe's
statement in full.
Click here for more information
about the Employment Relations Act 2004.
Design
of the Fund: Consultation and Next Steps
When the Fund
was announced the Government made a commitment to consult fully on the rules and
procedures of the Fund.
Two rounds of informal consultations have taken place with key
stakeholders over the Summer and Autumn. The Government subsequently published
draft scheme rules for full public consultation on 9 December 2004.
Click here
 (136Kb)
to access the consultation
document in full
Click here
(19Kb)
to access the executive summary
Click here (MS Word 34Kb) for the Welsh
language version of the executive summary
Hard copies
of the consultation document can be ordered from the DTI publications page at
www.dti.gov.uk/publications or by calling the publications order line on
0870 150 2500
Consultation closes on 3 March 2005.
Following
the close of consultation, the Government intends to finalise the scheme rules
in the light of views received and set in train all the necessary arrangements
for launch of the Fund, which is expected to take place in the second quarter of
the 2005 – 2006 financial year.
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