Written answers

Thursday, 26 November 2009

Department of Enterprise, Trade and Employment

Trade Union Sector

5:00 pm

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 76: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the protection in existing legislation for rank and file union members when there is evidence or a reasonable suspicion that corporate governance within a trade union is weak or inadequate; if her attention has been drawn to the fact that there is growing concern among the members of at least two unions regarding the financial affairs of their organisations; if she will investigate the matter; and if she will make a statement on the matter. [43519/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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My attention has been drawn to newspaper reports in relation to two trade unions where questions have arisen with regard to their financial affairs. In respect of one of these unions the Registrar of Friendly Societies was contacted directly about the situation.

The legislative position regarding corporate governance for trade unions can be split broadly into financial and non-financial governance. The non-financial aspects cover issues such as registration of rules and the titles and names of officers, investigation of complaints of discriminatory treatment against a non-contributor to a political fund, or concerning the operation of secret ballots or amalgamations of trade unions.

With regard to financial governance, provision is made for the making of annual returns by trade unions, specifying the receipts, funds, effects and expenditure of the trade union, which are lodged on the public file of the union concerned and are then available to inspection by the public. In addition, the rules of each trade union must contain a provision for the inspection of the books by every person having an interest in the funds of the union.

Neither the Registrar of Friendly Societies nor I have powers of investigation in respect of these financial governance issues. The Registrar has the statutory power to refer a matter to the court in relation to wilful or fraudulent withholding of money. This option is also available to any person acting on behalf of a trade union, which would include union members.

I think it is fair to say that the statutory provisions currently in force relating to financial governance matters in trade unions place considerable reliance on the active involvement of the members of trade unions. In this, these provisions reflect the historical period from which they originate. As the Deputy will be aware, my Department is currently carrying out reviews of the existing legislation relating to industrial and provident societies (co-operative societies) and friendly societies, which also date mainly from the late 19th century and are administered by the Registrar of Friendly Societies. I have now directed my Department to extend the scope of these reviews to include the functions of the Registrar of Friendly Societies under the Trade Union Acts.

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