About the governance checks
With effect from 1st April 2022, the Certification Officer (CO) has a new set of powers, thanks to the Trade Union (levy payable to the Certification Officer) Regulations 2022 and the Trade Union (power of the Certification Officer to Impose Financial Penalties) Regulations 2022.
The CO will effectively impose a ‘tax’ on trade unions, at a maximum of 2.5% of a union’s income, assessed over a 3-year rolling period and payable for the first time in March 2023 by a single instalment.
New CO investigating powers
The CO has long been empowered to deal with complaints brought by trade union members about e.g. breaches of rules relating to elections or disciplinary sanctions. However, the regulations introduce a new power for the CO to investigate complaints which are brought to its attention, not only by disgruntled members, but by anyone at all, regardless of their standing or interest in the matter.
Financial penalties
The CO will also get new powers to order financial penalties for infractions by trade unions. There will be a minimum fine of £200 and a maximum of as much as £20,000 (reduced by 50% for smaller unions).
The new regulations can be found in Schedule A3 of the Trade Union and Labour Relations (Consolidation) Act 1992 and inevitably will give rise to not only debate but perhaps the risk of litigation since arguably the new provisions fall foul of the European Convention on Human Rights and certainly the International Labour Organisation’s views in relation to unions’ right to associate without improper interference.
Need for strong systems
Trade unions are already held to a high standard by a media and Conservative government enthusiastic to discredit individuals of organisations that represent working people effectively and challenge a right-wing agenda. High profile cases of unions or individuals within them falling below standards or being perceived to fall below standards expected of them are seized upon and weaponised against the whole trade union and Labour movement.
These reasons alone should be sufficient for trade unions to seek to ensure that we have strong systems of democratic governance in place, that we are held as models of democracy, transparency and accountability. These principles are, in any case, fundamental to our very purpose – collectivism and democracy go hand in hand. We are, in all things, led by our membership. So, facilitating their voice as an effective driver of the decisions we make and the actions we take is not an optional extra, but essential to our strength and legitimacy.
We’ve created these checklists to assist you in your efforts to gauge how effective your union’s governance systems are functioning and to help you address areas that need work.