Report from Finance & Resource Management Committee meeting 26/01/22
Draft management accounts
The draft management accounts were presented to the committee. These still need to go through the appropriate year-end process, so though this may be subject to some change, we can currently expect a £12.8m surplus for 2021. This is due to a combination of increased revenue and reduced expenditure due to Covid-19. The surplus provides us with an opportunity to consider how best resources can be used for members and there was an initial discussion about the potential impact of membership loss due to the Government’s mandatory vaccination policy and whether we could utilise some funds, if PDCC felt they did not have sufficient funds at their disposal already, to step up the fight against this attack. The Chair agreed to write to the Chair of PDCC to discuss this further.
Audits
We then discussed the Internal Audit process and the Director of Finance gave an overview of the issues that would be considered; these included staffing spend, pensions deficit and the usual analysis of 15 branches.
We received reports on audit visits relating to branches and there were no concerns raised by either the chair of the Audit subcommittee or the officer assigned to this work.
Branch resources
The Chair reported that following representations from committee members, it felt unwise to proceed with a motion, discussed in principle at the previous meeting, seeking to utilise some of the very large increase in branch reserves created as a result of the pandemic which had accrued to branches already with the highest levels of reserves, matched to national reserves, to support wider union objectives. It was recognised that this was still a worthwhile exercise, but that we needed time for branches to properly contribute to the process and assist in determining the best use of these additional resources that are accruing very significantly. It was felt that the 2022 Conference timetable would not allow for this, but the discussion may begin in part at NDC 2022.
It was reported that branches were responding favourably to the changed branch funding formula. A note of caution though is that, in many cases, this could be because of the interim protection put in place for branches who may eventually be worse off. This needs monitoring and supporting closely.
Governance principles for the Branch Support & Organising Fund were brought to the Branch Resources Review Implementation Group for discussion only in December 2021. It is hoped these will be signed off shortly after amendment. They would be approved by FRMC and this may need to be done on chair’s action as the next meeting of FRMC is not until the end of April.
Officers have been commissioned by the Chair to write a short paper for branches on good budgeting practice and to encourage branches to plan for budget periods of 3-5 years ahead. Branches need to know how to set deficit budgets safely, to spend the large surpluses accruing during Covid-19 (total £21 million) in support of union objectives.
Staff pension
A discussion was held about the very large deficit in the staff pension fund and some of the actions taken to secure its future. A recovery plan for the staff pension fund entails, amongst a number of remedial measures, contributions each year to the fund of several millions of pounds of members’ subs.
UNISON staff had agreed to changes to the pension scheme in a recent ballot.
There was also a discussion about UNISON Direct and its operation in relation to the pension fund.
Property
The position in regards to a number of branch and regional properties was noted, and permission given to one branch to complete an office purchase after valuation and structural due diligence was completed.
There was lengthy discussion on the Greater London regional office. A proposal had come to the previous meeting suggesting a long lease be purchased at a cost of £8 million for a new office location for the Greater London regional team. This was despite the close location of the UNISON Centre on Euston Road.
Options are still being considered. UNISON has instructed its solicitors to initiate a 6 months’ notice period in June 2022 to end the lease on current rented office space. An alternative lease for the Greater London region has been found in central London and would cost an £8 million outlay plus annual rental charge. The committee had real concerns that this was a large amount of money when options like improved use of the Euston Road national office might be available; it was thought that some staff may want to continue to work from home so some of our HQ space may be under-utilised. A staff survey is being commissioned regarding the level of home working required. UNISON has not yet updated its flexible working policy with the staff trade unions to take account of changes to working practices caused by the Covid-19 pandemic since March 2020, but this is now under a process of review.
It was confirmed that an independent feasibility report for moving the Greater London office to UNISON HQ has been commissioned, as requested by the FRMC at its last meeting.
A final decision will be taken at the next FRMC meeting on whether to remove the new building rental option when we have further information, but the committee made clear it is not currently inclined to continue with this very expensive project. The committee confirmed that action to end the current lease should not take place until it had discussed the matter in detail at its next meeting.
This led to general discussion about UNISON strategy for use of its buildings, which included shop fronts and buildings located in community settings. The committee requested a full list of the current property register, what we own or lease, to ensure informed debate. It was agreed this register will be finalised and to have an extended FRMC in future this year to discuss whole issue of property.
Conferences
We are managing to get small amounts of money back for contracts linked to cancelled conferences. Given the uncertainty of the pandemic, the conference team are looking to book venues with cancellation clauses that allow some refund to the union if conferences need to be cancelled (prior to the pandemic this had generally not been the case).
The issue of refunds for airplane tickets was raised. This is with the Finance team to progress, as it relates to the contract with the supplier who has been booking airplane tickets with carriers without refund policies. This will be investigated as it appears that a better system of purchasing could be achieved to protect both branch and national union funds.
Procurement report
FRMC agreed changes to the UNISON ethical procurement policy. This will now mean that gambling adverts will not be carried by UNISON publications. This had been a long-standing issue of concern, now finally resolved. The committee were pleased to see this progress.
The committee also asked for a further amendment to ensure that issues like the Liverpool Conference Centre’s hosting of an Arms Fair can be avoided in future, so all UNISON suppliers are clear of the ethical standards we expect them to maintain. This will come back to a future meeting.
Industrial Action Fund
The Industrial Action Committee had taken decisions to increase strike pay from £25 per day to £50, from day one of any action, subject to the usual process of the Industrial Action Committee agreeing to affordability at the outset of a dispute. There were questions about the affordability of the new rates for big national disputes of full service groups. Points were made that UNISON should send a strong message to members and branches that we want them to feel able to strike when they vote for action and will offer full support to them if they resist employer attacks. The proposal was agreed and will go to the next NEC to be signed off. The new rates would apply from then.
Chairs and officers actions
Buildings
The chair reported he had taken chair’s action on 17 December in relation to a branch needing to maintain interest in a building it wished to purchase by making an offer. This was endorsed by the committee (which had also approved the full purchase, as above).
Financial information
The chair reported he had made a request at the end of July seven months ago, followed up in writing in August on facility time release for some NEC members paid for by the national union. The chair had been refused access to this information for reasons relating to GDPR. The chair had received a global figure but this provided no possibility of scrutiny.
The chair unsatisfied had raised the matter with the General Secretary, who by return had told the chair such scrutiny was not the role of FRMC – only to provide for general strategy. The chair felt this conflicted with UNISON’s own Financial Standing Orders, which state FRMC may see invoices/books/documents as it sees fit to make recommendations to achieve improved or more economical administration.
The matter was unresolved through correspondence and negotiation. Having made no progress in seven months the chair had made a request under TULRCA, which gives members the right to see financial information. The information was still supplied redacted without the potential for scrutiny. The chair felt the matter was an important point of principle as to whether UNISON would adhere to its own standing orders and permit access to financial information.
There was concern about NEC members on low pay or zero hour contracts having sufficient access to support so they could attend meetings, the need for a clear process and accountability, and for there to be some lay member scrutiny with the chair of FMRC being in a key position to provide this.
The Committee agreed to recommend to the NEC that solicitors be instructed to issue a letter before action and, if no satisfactory reply is received, to issue and pursue proceedings in the name of UNISON so the chair may fulfil their duties.
The chair agreed to send a final letter to try to gain access to the information requested prior to the next NEC to avoid the need for a letter before action.
Personal legal advice
The chair reported back on chair’s action taken on 14 December and asked for FRMC endorsement. The chair noted the advice to the NEC from Michael Ford QC had included a suggestion that UNISON might pay for the personal legal advice of the General Secretary and other officers. The chair was particularly concerned if UNISON is funding legal advice to employees seeking to challenge UNISON’s decisions in relation to them and had taken chair’s action to ensure this would stop, if it had happened.
Instead, if there were to be requests for UNISON as an employer to fund the legal advice of its own staff these should in future be brought to FRMC to agree, or for chair’s action if there was no timely meeting. There may be good reason for this from time to time, and a process would exist for these to be agreed when necessary.
One member of the committee made the comparison where an employer pays for legal advice if the member has to go to court e.g. coroner or mental health tribunal, but would not pay legal costs to staff to challenge an employer decision which the employer believed to be reasonable.
During the discussion on this item, an Assistant General Secretary instructed all staff to leave the meeting, which they duly did. NEC members remained in the meeting to continue discussion and agreed by vote to endorse chair’s action.
Karen Reissmann
North West Representative UNISON NEC