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. 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.
Bids are assessed against a set of eligibility and selection criteria, including compliance with the Fund's modernisation's objectives. Successful projects will be formally evaluated and the results publicised among trade unions. This will enable unions to test innovative new ideas, to learn what works and to apply these lessons more widely.
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 was the subject of a Regulatory Impact Assessment (RIA). Click below to see the RIA for the Union Modernisation Fund (Annex B).