THE UNION MODERNISATION FUND
The Union
Modernisation Fund (UMF) is a Government grant scheme established by the
Department of Trade and Industry (DTI) to provide financial assistance to
independent trade unions and their federations in support of innovative
projects, which contribute to, or explore the potential for, a transformational
change in the organisational effectiveness or efficiency of a union or unions,
in the light of the changing needs, aspirations and behaviour of workers and
employers in the changing UK labour market.
By funding innovative modernisation projects, the UMF seeks to enhance the
ability of trade unions to make a full and effective contribution to
constructive employment relations and to the economy as a whole.
The Government issued the first
call for applications to the UMF on the 15 July 2005. The deadline for receipt
of applications was 3 October 2005.
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).
Click here (MS Word 22Kb) to read Mr
Sutcliffe's statement in full.
Click here for more information about the
Employment Relations Act 2004.
Click here to see the RIA for the Union
Modernisation Fund.
Design of the Fund: Consultation
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 of 2004. The Government
subsequently published draft scheme rules for full public consultation on 9
December 2004. This consultation closed on 3 March 2005.
Click here  (136Kb)
to access the consultation
document in full
Click here (19Kb)
to access the executive summary
of the consultation document
Click here (MS Word 34Kb) for the Welsh
language version of the consultation document executive summary
On 26 May 2005, the Government published the Union
Modernisation Fund: Government Response to Public Consultation on the Draft
Rules and Procedures', which details the final rules and procedures of the Fund.
Click here to view the Government's
response to consultation in full
Click here to access the executive
summary of the Government's response to consultation
Click here to access the Welsh language
version of the Government's response to consultation's executive summary
Hard
copies of the Government response document can be ordered from the DTI
publications page at
www.dti.gov.uk/publications or by calling the publications order line on
0845 015 0010
The
Supervisory Board
Bids to
the Fund will be assessed by a panel of independent experts – the Supervisory
Board - recruited through open competition for their expertise and relevant
experience of working with trade unions. The Supervisory Board will advise
Ministers on the projects which should receive financial support in each bidding
round. The Board has seven members including:
Sir
Bill Connor
The
Chair of the UMF Supervisery Board, who was General Secretary of shop-workers
union USDAW from 1997 to May 2004, having previously been Deputy General
Secretary from 1989 to 1997. Sir Bill is also a member of the Central
Arbitration Committee and was a member of the TUC's General Council from 1997 to
2004.
Judith Hackitt
Has
been Director-General of the Chemical Industries Association since April 2002.
Judith is also a Health and Safety Commissioner.
David Metcalf
Is
Professor of Industrial Relations at the London School of Economics and
Political Science (LSE). David is also a member of the Low Pay Commission and a
Jockey Club Steward.
Willy Brown
Is
Master of Darwin College, Cambridge and Montague Burton Professor of Industrial
Relations, University of Cambridge. Willy has been a member of the Low Pay
Commission since 1997 and was an Acas Council member from 1998 to 2004.
Jeannie Drake
Has
been a Deputy General Secretary of the Communication Workers Union (CWU) since
1995. Jeannie is also TUC President and member of the Equal Opportunities
Commission.
Adrian Askew
Has
been General Secretary of Connect, the union for telecoms professionals, since
May 2003, having previously been Deputy General Secretary from August 1995 to
May 2003. Adrian is also a member of the Better Regulation Task Force.
Danny Carrigan
Was
Assistant General Secretary of Amicus from 2002 to 2005. Danny also served on
the TUC and STUC general councils and is also currently a member of the Health
and Safety Commission.
Click here to view the press notice issued on 14 September 2005, announcing
the members of the UMF Supervisory Board.
Further Advice
Details of frequently asked questions will regularly be
updated in the light of queries received. If you require further information
about the UMF, please contact the UMF Team:
By Email:
Umf.application@dti.gsi.gov.uk
By Mail: Union Modernisation Fund
Department of Trade and Industry
Bay 3124
1 Victoria Street
London
SW1H 0ET
Next Steps
The first call for
applications to the UMF closed 3 October 2005. The Government intends to provide
written feedback to all bidders by the end of the year.
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