Union Modernisation Fund
Contents
- What were the lessons learned from Round One of the UMF?
- Is there a limit on the number of bids a union can make to the Fund?
- I applied under Round One – am I eligible to apply under Round Two?
- Can I use money from the Union Learning Fund as part of my matched funding contribution?
- Does my proposed project have to be capable of providing a demonstration effect to all other unions?
- If the project makes the union more efficient or effective won’t this inevitably lead to recruitment or improvements in the union’s ability to conduct collective bargaining?
- Is there a formula that can be used for the calculation of overheads?
- What are “exceptional circumstances” in which a grant of more than £200,000 will be made?
- What if my union is unable to provide 50% of project costs as matched funding?
- Who can apply?
- Why must applicants provide a description of their modernisation strategy?
- What should this description look like?
- Would a letter of support be required from an employer for developing a website with an online recruitment facility?
- Would our application be rejected due to the financial reserves that our union has accrued?
- What is the monitoring and evaluation strategy?
- Would the cost of someone seconded to our union, to carry out union duties, be acceptable as part of our match funding contribution?
What were the lessons learned from Round One of the UMF?
In making arrangements for Round Two, we have reflected lessons learned from Round One, including the need for a longer bid preparation stage within the overall timetable (this stage closed on 20 April 2007). You may like to look at the report produced on Round One by the independent evaluators, Leeds Business School, which is available via the main UMF page on this website. The report concluded that the application and assessment process was efficient, robust and transparent; and produced a significant quantity of high quality bids.
Is there a limit on the number of bids a union can make to the Fund?
No. Unions can make as many bids as they wish. However, you must be able to show that you can provide matched funding for all your bids and that you will be able to deliver and manage multiple projects.
I applied under Round One – am I eligible to apply under Round Two?
Both successful and unsuccessful bidders under Round One were eligible to apply under Round Two. All bids will be considered on their merits.
Can I use money from the Union Learning Fund as part of my matched funding contribution?
No. The Fund will not duplicate other sources of state funding. Applicants may lever-in funds from third parties, including private, public and voluntary sector organisations, but matched funding may not be provided from an existing central government or EU financial assistance scheme.
Applicants should ensure that bids are clearly within the parameters of the UMF. Where a bid is received on a subject which would be more appropriately directed to another source of Government funding (for example, the ULF, which provides funding to help trade unions to encourage greater take-up of learning at work, and boost their capacity as learning organisations) bid assessors will advise the union or unions in question in redirecting their bid to the most appropriate source of support. However, the Union Modernisation Fund will support projects which form part of a broader cross-cutting programme of activity, other elements of which may be eligible for support from other funds.
Does my proposed project have to be capable of providing a demonstration effect to all other unions?
Not necessarily. Some projects may only be of interest to a particular group of unions – perhaps unions of a similar size, or those operating in similar industrial sectors. The demonstration effect of a project is not necessarily tied to its subject matter. There may well be valuable lessons for others from the processes involved in your project. For example, if your project involves consultation with members, it may provide transferable lessons for others in the movement.
If the project makes the union more efficient or effective won’t this inevitably lead to recruitment or improvements in the union’s ability to conduct collective bargaining?
The following activities are excluded from support:
- Activities for the direct purpose of recruiting into union membership workers employed by a particular employer or employers. In particular, recruitment drives in support of a claim for recognition by a particular employer will not be supported.
- Activities for the purpose of directly supporting the union’s ability to undertake collective bargaining with a particular employer; to pursue a trade dispute with a particular employer; or to represent individual workers employed by a particular employer in a dispute between that employer and the individual worker.
- Expenditure on political objects, as defined in section 72 of the Trade Union and Labour Relations (Consolidation) Act 1992.
The first two exclusions do not apply where the employer concerned has given express consent for the activity in question. These definitions are framed so as not to exclude legitimate projects where, for example, recruitment may be a by-product. It will be for the Supervisory Board to judge whether individual bids meet these definitions on a case-by-case basis. If you are unsure whether an element of your proposed project might constitute an excluded activity, please seek advice from the UMF team on 020 7215 0210.
Is there a formula that can be used for the calculation of overheads?
In order to calculate overheads applicants will need to identify and list all the overhead costs that would be specifically related to their proposed project.
Calculation of Overheads*
A = Total running costs for Project Location (s) (e.g. regional office), such as heating, lighting, rent, rates, phone lines, maintenance, photocopying etc.
B= Total staff hours worked in Project Location (s) (Full Time Equivalent Staff X standard working hours)
C = Apportioned Overhead rate = A / B
D = Total Hours Worked on project
Total Overheads for Project: C x D = E
*Please note that the Department may ask applicants to provide further information and a breakdown of their overheads calculations
What are “exceptional circumstances” in which a grant of more than £200,000 will be made?
It is impossible to state in advance what these circumstances may be. However, in general, bid assessors will only consider supporting a larger project where there is strong evidence that the project in question is particularly innovative, would have especially significant transformational benefits, or would be of especial value to the broader trade union movement. The additionality of proposed projects costing more than £200,000 will be rigorously assessed. Applicants would be advised to consider carefully the benefit of applying for a grant above the £200,000 limit, given the stringent tests applied, and ensure bids are well developed and presented.
What if my union is unable to provide 50% of project costs as matched funding?
A requirement for matched funding is a standard element of DTI financial assistance schemes. However, in exceptional circumstances, where a union may struggle to meet the 50% requirement for a very valuable project, there is discretion for Ministers to lower the union’s contribution.
Who can apply?
All trade unions in possession of a valid certificate of independence from the Certification Officer and all registered federations of trade unions are eligible to apply for UMF support. Applicants must operate solely or mainly in Great Britain.
Why must applicants provide a description of their modernisation strategy?
The purpose of the Fund is to help British trade unions address the significant strategic challenges of today’s world. In order to ensure that projects supported by the UMF can really make a difference, the Supervisory Board and Ministers will be looking to see whether each proposed project addresses an issue which has been identified as a modernisation priority for the union in question.
What should this description look like?
Applicants do not need to provide large amounts of detail about their modernisation strategies – a brief description will suffice. This can take the form of a pre-existing document or documents. The strategy should, among other things, show how the union intends to build constructive relationships with employers in line with progressive workplace practices. Remember, the Supervisory Board and Ministers will be trying to assess the extent to which your project has the potential to contribute to a transformational change. To do this, they’ll need an understanding of the union’s current position and of where it wants to be in future.
Would a letter of support be required from an employer for developing a website with an online recruitment facility?
Project activity for the direct purpose of recruiting union members will not be eligible for Fund support. However, this exclusion does not apply where the employer(s) in question has given their express consent to this project activity. This consent would normally be expected to take the form of a letter from the employer(s) in question, to be submitted with the application to the Fund. The Supervisory Board will have specific regard to this matter when assessing whether the proposed activity is eligible for Fund support, and will reach a judgement about individual applications on a case-by-case basis.
Would our application be rejected due to the financial reserves that our union has accrued?
Applicants are required to provide their last two year's accounts when submitting an application to the UMF, in order that Fund officials can assess the financial viability of the applicant to deliver the project. The fact that a union has financial reserves would not therefore preclude a union from submitting a bid to the Fund.
What is the monitoring and evaluation strategy?
All applications should include a detailed monitoring and evaluation strategy. This is a vital part of ongoing project management and crucial to the overall success of individual projects, underpinning demonstration of value for money and identification of lessons learned during the project life-cycle. Successful applicants may need to refine these proposals in discussions with DTI officials, who will agree with you a final monitoring and evaluation strategy for your project. The grant offer letter will not be issued until this strategy is agreed. For more detailed guidance on the content of your proposed strategy, please see the guidance note on pages 13 –14 of the UMF application pack.
The costs of monitoring and evaluation of projects are eligible for support. These costs should be included when calculating the total project costs for your proposed project. The cost and scale of your planned evaluation activity should be proportionate to the main project itself. Successful applicants will also be obliged to cooperate with the monitoring and research activities of DTI officials and external Fund evaluators. Further details of what may be involved can be found in the draft grant offer letter at pages 28-38 of the UMF application pack.
Would the cost of someone seconded to our union, to carry out union duties, be acceptable as part of our match funding contribution?
The cost of a secondee who directly works on the UMF project can be used as part of your union's match funding contribution.
However, the Fund will not cover the cost of using a secondee to back fill the normal post/time of members of staff, whose post/time has been allocated to working on their union's UMF project.