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TUC Fringe Event on UMF

Pat McFadden MP,  Minister for Business, Innovation and Skills
Oxford ,  11 September 2007

Thank you Bill for that introduction and to you and your colleagues on the Supervisory Board for your hard work during the rigorous and intense process of assessment of the bids.

Today is a further opportunity to share some of the learning that is starting to emerge from Round One projects – USDAW developing a best-practice management model and GMB on race & diversity – which both offer useful lessons for the union movement more generally. It is also an opportunity to look to the future and consider the learning that his likely to emerge from Round Two, the winners of which I announced earlier today.

Let’s just remind ourselves briefly of the aims of the UMF.

Modern workplaces are a crucial part of our economy as we all know and the Department sees them as a part of its mission to represent the voice of business. Unions have a vital part to play in modern and effective workplaces. Modern unions are making a significant contribution to greater productivity, more effective workplace practices and highly trained and motivated workforce. It is against that background that we launched the UMF.

We also recognise that unions have at times struggled to keep pace with the rapid technological and social change we are facing. My department provides almost £400 million a year in support for business to help enterprise, wealth creation and job creation. Unions too need targeted support in reorganising and modernising services to their members and their potential members to ensure that they keep pace with the rapidly changing economic and employment landscape. They need to recruit members in new industries and the low paid sectors. And they need to consider developing new ways of supporting people so that individuals can get the help they need, in for example, gaining more skills or working more flexibly.

This is why we set up the Union Modernisation Fund.

Against this background, it’s encouraging to see that Round One is already starting to generate some positive results. The presentations you will hear later are testament to that, even though the projects still have some time to run.

These, and other projects, cover a range of themes including improving two-way communications, applying modern management methods to unions, developing the professional competence of union officers and improving the ability of unions to respond to the increasing diversity of the labour market. The last theme, of course, includes action to address vulnerable worker issues. To mention a few projects of note:

• The T&G’s Migrant Workers Support Unit in the North-West – a project to develop services such as translation, advice of employment rights, and signposting to community support services such as the CAB and the Polish Workers Association.
• Nationwide Group Staff Union – a project to develop an interactive website to transform the way the union communicates with its members, encouraging them to become more active and help shape the work of the union.
• Bakers, Food & Allied Workers Union – a project to better understand diversity in the workplace by researching the needs and attitudes of workers for whom English is a second language; and to deliver diversity awareness training for staff.
• Lloyds TSB Group Union – a project to develop a new internet package to improve the level and quality of two-way communications with members and generate greater participation in the operation of the union.

Some of these projects are already complete and case studies will be made available shortly, so you can share the learning on offer. What is already clear is the strong transformational potential that is starting to emerge from individual UMF projects. This is the core purpose of UMF. It’s not about ‘business as usual’ or the day-to-day activities of a union.

Nor does the legislative basis for the UMF allow the Fund to be used to support trade disputes or in representing individuals in disputes with particular employers; or expenditure on political activities.

Instead, what UMF seeks to achieve is something more important: a significant shift in the structure, processes or culture of a union – delivering innovation, giving members a voice, and underpinning the union’s broader modernisation strategy.

But enough of Round One for now, I’m sure many of you are keen to hear about Round Two.

We received a total of 53 applications by the closing date and I am pleased to announce that a total of 28 projects will be awarded funding under this round, subject to clarification with my officials of costings and other project details, and agreement of formal grant letters. The overall quality of the applications was very high and these are the most innovative and forward looking projects which best reflect the objectives of the UMF. A full list of winners is available at the back of the room. I have also written today individually to all applicants, providing feedback on the application, and setting out next steps where successful.

We don’t have time for me to list them al out now, but to describe just a few projects which typify the purpose of the UMF and which, again, include some which address vulnerable worker issues, I note the strong transformational potential offered by:

• The Unison migrant workers participation project, which seeks to respond to the increasing diversity of the labour market (including those originating from the EU) to improve Unison’s ability to supply services geared to the needs of a diverse membership and reduce economic and social exclusion.
• The BECTU networking project, which seeks to transform the members’ relationship with their union by using web-enabled tools to empower them and enable them to influence policy, take control of their own records and communicate directly with colleagues.
• The TUC equality reps projects, which seeks to develop a targeted training programme for tutors and union equality reps to ensure they focus n the key issues and engage effectively with both employers and members – which will ink to and help coordinate and drive the other equality rep projects approved this round.
• The CWU youth empowerment project which seeks to radically transform CWU’s approach to recruiting and empowering young workers via development of dedicated support for young reps and the mainstreaming of youth activity across union structures.

All of the approved projects offer significant benefits to both the recipients of funding and the broader union movement. I look forward to seeing the outcomes in due course.

A further five applicants have been invited to re-submit their applications. In these cases, Bill and his team on the Board believed the bids had intrinsic merit, but needed further work in one or two defined areas.

In any competition there will be those who do not succeed. To those who were not successful, I extend my thanks for the time and effort you put into your application. The fund received a considerable number of high quality applications in this round with many innovative ideas being put forward. This made the final decision on which projects to support a challenge. I know that some will be disappointed. I hope that the thinking that will have gone on to make a bid and the opportunities to learn from other project will be of value to your ongoing modernisation work.

This takes me to the importance of sharing the outcomes that are starting to emerge from UMF. These projects should and must offer valuable insights to other unions who can learn from your efforts.

These projects are not intended to stand in isolation. The Fund has been designed to act as a catalyst for change across the union movement. As you know, funds are limited and the aim is to ensure learning is widely disseminated to spread the benefits and encourage take-up of good practice. BERR will work with individual unions and the TUC to share this learning via:

• Published case studies and toolkits
• The independent evaluation report which Leeds University Business school is preparing (the final report is expected to be published late 2008; an interim report will be available later this year)
• The BERR website and other communications networks
• The creation of a ‘modernisation’ network using web platforms and regular networking events

We are currently putting together the first batch of case studies and I expect to publish these on the BERR website shortly.

We continue to value strongly modern, growing trade unions as an important part of our society and our economy. Unions provide a voice for people at work and contribute to the success of companies and public services.

I do hope you find today’s event useful and that it offers you the opportunity to network with colleagues. We want to raise the profile of the UMF across the broader trade union movement so that everyone can have the opportunity to share the good practice that will emerge in the months and years ahead.

Thank you very much.