TRADE UNION FUNDS.

New Zealand Herald, Volume LXI, Issue 18015, 14 February 1922, Page 8

TRADE UNION FUNDS.

The Position in New Zealand.

WHERE THE MONEY GOES.

DO THE WORKERS UNDERSTAND?

(Contributed by the Welfare League.)

, The financial Bide of the '.Prades Union movement is a subject that we hafe never seen exhaustively examined. All the average unionist or member of the public blows is that fees are charged, and the unions are supposed to hold substantial funds. Wo liavo known of a union charging its members 12s per annum each member and having a substantial credit balance, while the same union later on when charging 25s had no balance to speak of, oven though it had not paid out strike pay, lock-out pay, or any benefits to tho individual members. An article in the London Morning Post supplies some particulars of the financing of some of the largo unions at Home, and shows that most of the money goo, in administrative expense and political curposes. The cases of four largo trada unions, taken at random, are givon thus :—

(a) A union with 10,486 members. Income, £11,553. Spent on benefits £5573, and on management expenses £3495. Its investments are Government stocks, municipal securities, and industrial undertakings. (b) A union with 84,910 members. Income, £b7,877. Management expenses totalled £25,612. Benefits were £17,413, and most of remainder on political and general purposes. (c) A union with 10,981 members, lucerne, £10,979. Benefits, £5532; management, £4423. The greater portion of its assets are in public securities, corporation stock, and freehold property. (d) A union with 181,000 members. Income, £71,481. Benefits were £3382. Management shows—salaries, allowance to officers, expenses of delegates, and deputations, etc., £39,603; whilst a further sum of £2983 was exponded in organisers' special expenses and law expenses.

Cost ot Management. What is notable in these cases is that the largor the membership and income the greater in proportion is the cost of management. The class of case marked (d) is that which calls for special attention, whore out of an income of £71,481 only £3382 went in benefits and £42,586 in management expenses. The comment is made that "in the case of this and other uuions it would obviously be for the better protection of members if tho Trade Onion Law insisted that all investments should be in trustee securities, and that there should be some supervision of management expenses," The article points out that there is no real protection against the use of the general funds for political work under tho heading of administrative expenses; nor is there any cHeck, apparently,' on tho investment of accrued funds in undertakings which are political or partly political in character. "It is a publio danger that there is, apparently, no adequate safeguard under the law against the use of trade union funds for furthering extremist politics instead of for legitimate trade union purposes."

lii Now Zealand wo f&ar things are much, the same in respect to trade union funds as in the old land. Here, for instance, is the position of one New Zealand union as shown in its balance-sheet for last year :— Total receipts, £10,979. Credit balanco at commencement of year £1634, and at close £806. This union expended over £10,000 in the year, and of that over £5000 went in salaries arid allowances. As a commentary on the financing of this union it is notable that though it lias been existent for a number of years with a high income, as disclosed, its total of assets over liabilities amounts to £1808. Another case which came before us recently was that of a union of over 1200 members each paying 25s per annum, which at a time of trouble, we learnt, had not £100 in reserve. There are over 406 registered workers' unions with over 96,000 members. The total revenue will probably approximate £100,000 per annum. To the individual workers and members of the public it should be a matter of concern as to what is being done with that large amount of money. Are the management expenses reasonable or wasteful ? Are funds drawn constantly from the wage-carjflerfc to fatten a few glib talkers, or is the' money spent it, real constructive services? Are there proper benefits given, or is the money frittered away on delegates, deputations, organisers, and secretarial allowances? These are questions that the w.age<arners should investigate. The sum of £100,000 invested in industrial undertakings would employ a largo body of men. The question of what is being done with trade union funds calls for Berious thought in New Zealand as well as elsewhere. is to the workers' best interest that they should i knqw these matters fullx,