Unite has warned Labor that it could stop funding the party, threatening a financial black hole as the dispute between Labour-run Coventry council and its bin lorry drivers escalates.
The trade union, which was Labour’s largest funder under Jeremy Corbyn, has already significantly reduced its financial support for the Labor Party – but the union’s general secretary is warning that the remaining funding could be pulled as well.
So why are Unite and Labor at loggerheads with one another – and what would it mean if the union went ahead and withdrew its funding from the party?
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Why is Unite threatening to stop funding Labour?
Unite members in Coventry are currently involved in an industrial dispute with Labour-run Coventry council, and this has led the union’s leadership to stop funding the national party.
“Let me be very clear – the remaining financial support of the Labor Party is now under review,” said Sharon Graham, Unite’s general secretary, who was elected last year.
While the dispute in Coventry is the immediate cause of the current row, Unite has increasingly been at odds with Labor leader Sir Keir Starmer over the party’s general political direction.
Unite is the largest left-wing union in the country and was a consistent supporter of Jeremy Corbyn. During Corbyn’s leadership, Unite donated several million pounds to Labour.
However, since Starmer assumed the party leadership, Unite has responded to Labor’s recent rightward shift by substantially reducing its financial support to the Labor Party.
Unite reduced its affiliation to the Labor Party in 2020, which meant a further cut in funding for the party as well as giving the union fewer votes over policy and rules at Labor conferences.
A spokesperson for the Labor leader was unrepentant, retorting that Graham’s “threats won’t work” and adding: “We would have hoped that Unite would have got the message that the Labor Party is under new management.”
But were Unite to pull its remaining funding completely, Labor could be threatened with bankruptcy – unless it can make up the shortfall from other sources.
Who is Sharon Graham?
Sharon Graham is the current general secretary of trade union Unite. She assumed the role in August 2021, having previously served as the union’s director of organizing.
Since becoming Unite leader, Graham has put more emphasis on rebuilding the union’s industrial strength than on party politics and Westminster.
Her relationship with the Labor Party under Sir Keir Starmer has been tense, and she has been vocally critical of the political direction Starmer has taken.
Why are the Coventry bin lorry drivers on strike?
Bin lorry drivers in Coventry have been on strike since January amid a pay dispute with Coventry City Council, which is run by Labour.
The strikes are set to continue until the end of March unless a deal is struck. Unite members have accused the council of “misleading the public” and using agency workers in an effort to break the strike.
For its part, Coventry council says it is one of the highest-paying local authorities in the West Midlands.
The national Labor Party leadership has so far refused to comment on the specifics of the Coventry dispute.
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