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Trade Union Merger StrategiesPurpose, Process, and Performance$

Roger Undy

Print publication date: 2008

Print ISBN-13: 9780199544943

Published to Oxford Scholarship Online: September 2008

DOI: 10.1093/acprof:oso/9780199544943.001.0001

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(p.265) Appendix 4. The Index of Comparative Security and Related Financial and Membership Data

(p.265) Appendix 4. The Index of Comparative Security and Related Financial and Membership Data

Source:
Trade Union Merger Strategies
Publisher:
Oxford University Press

Introduction

The measures used to assess a union's financial position included net worth (the value of year‐end union funds), subscription income, total income, and administrative costs. The key ratios combine the above measures as follows:

Subscriptiion Dependency = Subscription Income Total Income Subscription / Administrative cost Gap = Subscription Income Administrative Cost Acid Test = Net Worth Administrative Cost

The 42 transferring unions were assessed against the above financial measures and ratios by reference to the five years prior to merger. Changes in membership size were also compared over the same period. These all contributed to the development of the index of comparative security. This was used to rank unions on a scale of 1 to 29. A score of 10 or more was taken as broadly indicative of significant financial difficulties, or a noteworthy loss of members and less severe financial problems. At the lower end of the scale a score of 6 or less indicated a strong financial position. For example, in Table 3.2 the Lancashire Textile Workers' Union (NWLDCTWU) with an index score of 2 had, prior to merging, experienced a small reduction in membership (−4% over the previous five years), a net worth per capita of £145 (national average in 1989 was £44), a subscription dependency of 57% (national average 82%) and an acid test of 11.7 (the figure of 11.7 indicates that if its net worth was liquid it could cover its administrative costs for 11.7 years without any other source of income). In contrast, at the other end of the index the Agricultural Workers (NUAAW) had a score of 18. It lost 21% of its membership, had net worth per capita of £7, a subscription dependency of 96%, and an acid test of .3 (this last figure shows that if the Agricultural Workers' net worth was liquid it could cover its administrative costs for just four months). It was, in marked contrast to the Lancashire Textile Workers' Union (NWLDCTWU), in severe financial difficulties when it merged.

The following, first, outlines the method of calculating the index of financial security, while the attached tables list the unions and the financial information used in the calculations. (p.266)

Appendix 4(1). Index of comparative security: method of calculation

Loss of members: Points allocated

11%‐20%

1 point

21%‐30%

2 points

31%‐40%

3 points

41% or >

5 points

Net worth per capita: If below £44 in final year points allocated

44‐34

1 point

33‐24

2 points

23‐14

3 points

13 or <

5 points

If net worth deteriorating over the period: Points allocated

1 point

If negative net worth per capita: Points allocated

−1 to −20

10 points

−21 to −40

15 points

−40 or <

20 points

Subscription dependency: Points allocated

If in final year %

82‐87

1 point

88‐92

2 points

93‐97

3 points

98 or >

5 points

If subscription dependency deteriorating over period: Points allocated

If above 82 in final year and deteriorating by:

1%‐5%

1 point

6%‐10%

2 points

11%‐20%

3 points

21% or >

5 points

Subscription∕administrative gap if in final year 1 or <1: Points allocated

1‐09

1 point

0.89‐0.8

2 points

0.79‐0.7

3 points

0.69 or <

5 points

If subscription∕administrative gap deteriorating over the period: Points allocated

1‐0.9

1 point

Acid test if below 1.2 in final year: Points allocated

1.1‐1

1 point

0.99‐0.7

2 points

0.69‐0.6

3 points

0.5 or <

5 points

If acid test deteriorating over the period: Points allocated

1 point

(p.267)

Appendix 4(i). Minor transferring unions' membership and net worth in year prior to merging and % changes over five years preceding the merger

Union

Size of membership

% change in membership

£ net worth

£ net worth per capita

% change in net worth

Subs. Dep.

Subs.∕Admin. gap

Acid test

Total index score

Yr1

Yr5

Yr1

Yr5

Yr1

Yr5

(1) ATWO (B%D)

1,085+

3

22,359

21

80

87

84

.8

1.2

.5

1.2

9

ATWU (SA)

610

−30

133,956

187

−56

36

53

.3

.2

6.0

2.5

19

ATWU (SS)

561

−26

7,431

13

−74

83

95

.7

.9

1.4

.4

9

BDWWWA

600

−22

194,496

324

−22

34

37

.3

.4

6.4

7.2

4

C&CTWA

900

−22

158,145

176

27

54

27

.5

.9

3.3

6.3

3

NWLDCTWU

4,741

−4

715,724

145

12

65

58

.6

.8

3.2

11.7

2

OPUTAW

3,000

−46

1,033,370

345

−4

33

28

.5

.4

8.8

10.4

12

GLSA

12,122

−25

885,877

73

80

80

70

.9

1.0

1.1

1.9

2

NUTGW

68,065

−9

9,523,613

140

28

79

74

1.2

1.0

3.3

4.1

1

FTATU

31,642

−39

3,765,520

143

−15

82

82

1.0

.8

2.8

2.6

9

NUDBTW

45,756

−22

2,528,887

55

−62

82

83

.3

.5

6.8

2.3

11

NUAAW

63,261

−14

446,706

7

−70

95

96

1.0

1.0

.8

.3

18

APAC

7,556

−21

324,599

43

−56

80

90

1.0

1.0

2.4

1.3

9

NUSMWCHDE

58,837

−21

2,142,579

36

−28

80

88

1.1

1.0

1.5

.9

13

NUBOMCW

4,907

−49

430,573

88

−54

64

84

.4

.8

1.9

1.8

13

NSMM

25,454

−36

733,746

29

−22

93

93

1.3

1.1

1.1

1.0

12

HVA

15,901

−.3

1,246,128

78

−1,968

93

90

.9

.5

.1

N∕A

29

WWU

4,899

−5

466,615

95

2

82

79

.9

1.0

2.7

2.8

1

Average

19,438

102.3

72

73

.76

.8

3.2(0)

3.5(0)

+ The figures listed for membership of the transferring unions in this table may vary from other figures quoted. This is due to the use of Certification Officer reports for the figures in this table and TUC reports in other tables.

(1) The first seven unions listed were amongst the 10 unions transferring to the GMB from the textile industry federation of unions in 1986.

N∕A The HVA had debts of £1,246,128 and Admin Costs of £1,194,624 in the fifth year.

(0) This figure excludes any TU with an N∕A in either acid test column.

Source (of raw data): M. Sadiq (unpublished), M.Sc. dissertation, Oxford, 1994.

(p.268)

Appendix 4(ii). Minor transferring unions' membership and net worth in year prior to merging and % changes over five years preceding the merger

Union

Size of membership

% change in membership

£ net worth

£ net worth per capita

% change in net worth

Subs. Dep.

Subs.∕Admin.gap

Acid test

Total index score

Yr1

Yr5

Yr1

Yr5

Yr1

Yr5

AMPSSA

297

28

6,023

20

0

59

46

1.3

9

15.3

9.3

6

BNZLSA

102

−52

12,585

135

74

85

59

3.8

2.8

11.5

35.0

6

BACOAS

616

12

8,930

15

50

83

88

2.0

4.6

2.6

13.2

6

GSA

352

−14

16,101

46

98

100

79

1.9

1.3

3.1

5.8

1

SALSA

8,036

33

115,440

14

51

91

92

.8

.9

.5

.7

10

BESO

3,930

−9

69,309

18

−3

96

96

.9

.9

.7

.5

14

CBSSA(1)

234

−1

1,718

7

−46

95

76

.9

.7

.9

.5

16

CBSSA(2)

167

−24

6,812

41

26

82

88

.9

2.4

2.3

4.9

26

*ESSA

6,163

18

134,387

22

68

90

94

1.3

1.5*

1.3

1.6*

7

NORSA

616

−3

21,877

36

118

94

88

1.1

1.4*

1.3

3.2 ∼

1

AMPS

5,436

−31

28,156

−5

−82

99

99

1.1

1.0

N∕A(1)

N∕A(1)

21

ANHSO

3,945

1

102,131

26

11

97

97

1.0

.9

1.0

.8

10

BCSA

799

−42

33,406

41

−68

77

87

.7

.6

2.3

.8

19

CSSA etc.

424

2

18,083

43

90

84

61

3.2

1.9

8.4

10.6

2

UFFMA

125

−48

9,070

73

−27

99

95

1.5

.6

1.2

.5

21

IGSA

684

−57

81,512

119

39

90

84

.8

.9

1.1

2.3

6

ISA

119

−43

21,583

181

−2

77

67

1.7

1.7

7.1

14.2

6

NAEMS

883

−33

−759

1

−105

99

100

.9

1.0

.2

N∕A(2)

21

RCNSA

157

99

2,134

14

195

100

92

2.2

1.7

2.9

2.9

6

PMBSA

277

−21

6,748

24

−41

87

85

.7

.6

1.7

1.2

13

RRMA

615

−11

41,229

67

4

88

80

2.0

1.3

5.4

6.3

2

SUSKA

275

−4

13,205

48

72

88

83

2.7

1.0

4.8

4.6

3

TSA

462

−71

1,454

3

−108

75

89

.6

.9

N∕A(3)

.2

21

TWSA

2,314

−24

11,861

5

−14

86

88

.8

.8

.2

.2

18

Average

1,543

41.3

88

84

1.45

1.35

3.6(0)

5.67(0)

(0) Figure excludes any TU with N∕A in either acid test column.

*Changes calculated over four years preceding transfer.

Source: J. Hodges (unpublished), M.Sc. dissertation, Oxford, 1994.

(p.269)

Appendix 4(iii). TUC's ‘no intention to merge’ unions (1989): union membership, net worth and changes over 10‐year period 1979–89

Union

Size of membership 1989

% change in membership

£ net worth

£ net worth per capita

% change in net worth

Subs. Dep.

Subs.∕Admin. gap

Acid test

Total index score

Yr1

Yr10

Yr1

Yr10

Yr1

Yr10

BAEA

40,388

60

677,301

17

37

80

79

.9

.9

.4

.4

9

NAPO

6,447

30

226,260

35

212

95

93

1.0

1.0

.3

.4

10

FBU

45,683

21

2,090,547

46

132

92

98

1.1

1.1

.6

.8

8

POA

23,699

19

1,254,596

53

13

89

93

1.6

1.3

2.5

1.1

7

BALPA

4,340

12

737,571

170

146

100

85

1.2

1.3

.4

.7

3

MU

39,598

−3

1,920,886

49

75

61

70

.9

.8

1.1

1.3

4

ASLEF

19,065

−13

2,087,034

109

−18

88

88

.9

.9

1.5

1.3

6

NLBD

2,784

−14

165,016

59

−29

44

54

.5

.7

2.1

1.5

7

FAA

2,094

−18

6,419

3

−91

81

83

1.0

1.0

1.1

.1

16

NACO

4,474

−21

366,380

82

114

92

37

1.1

.4

.7

.6

12

IRSF

53,523

−22

627,754

12

105

97

N∕A

1.3

1.2

.2

.3

13

BFAWU

34,032

−22

630,082

19

22

83

94

1.1

1.1

.5

.5

15

CSMTS

92

−25

21,496

234

−27

54

61

.8

.8

8.9

5.7

7

NULMW

5,295

−26

293,883

56

−36

88

92

1.0

1.1

2.3

1.8

7

NALHM

11,851

−30

468,444

40

−6

98

97

1.1

1.1

.7

.7

10

C&ATU

31,308

−30

4,509,820

144

10

74

66

2.0

1.4

8.9

7.5

4

URTU

20,681

−35

1,755,085

85

28

91

83

1.4

1.0

1.6

1.9

5

HC&SA

2,362

−37

21,182

9

49

92

95

.9

1.0

.1

.2

17

SWSWTU

17

−39

952

56

−43

80

80

N∕A

12.9

N∕A

12.9

4

NUSC

882

−42

59,022

67

54

97

86

.9

1.8

.9

1.8

8

NUDAGO

3,100

−44

46,129

15

−65

91

96

.9

1.0

1.1

.4

21

PLCWTWU

3,200

−46

284,153

89

−29

85

78

1.9

1.3

4.3

3.3

8

NCTU

862

−57

13,895

16

209

93

85

1.0

.9

.2

.5

16

AABTD (H&M)

470

−58

66,340

141

N∕A

N∕A

77

N∕A

.9

N∕A

2.8

N∕A

ASTWKT

2,512

−58

251,541

100

428

70

71

1.2

.6

.3

3.0

12

RUBSSO

2,519

−69

130,286

50

−77

60

89

.8

1.1

5.1

1.6

14

SUPLO

65

−65

2,164

33

−59

68

88

.5

N∕A

.5

N∕A

N∕A

YAPLO

537

N∕A

53,715

100

−67

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

Average

67

82

81

1.1

1.03

1.85

2.04

Source (of raw date): K. Little (unpublished), Oxford, M.Phil. thesis.

(p.270)

Appendix 4(iv). TU index of comparative security for major TUs

Union

1989 size

% change in size

£ net worth (1989)

£ net worth per capita

%Change in net worth

Subs. Dep.

Subs.∕Admin. gap

Acid test

Total index score

Yr1

Yr10

Yr1

Yr10

Yr1

Yr10

ASTMS (MSF)

653,000

33*

9,894,000

20

48

98

92

1.3

.8

.7

.4

15

BIFU

186,408

28*

3,905,000

23

193

95

94

1.2

1.0

.5

.7

10

POEU (NCU)

154,410

23

6,210,000

40

13

98

100

1.3

.12

1.3

.8

11

NGA(82)

131,538

18*

29,418,000

224

38

73

75

1.5

1.0

6.6

2.4

4

NATFHE

81,407

15

−738,352

−9

−209

96

96

1.2

.9

.3

27

SCPS (NUCPS)

118,394

10*

7,473,000

63

16

94

92

1.5

.9

1.4

.8

8

NALGO

754,701

12

55,763,000

74

181

80

84

1.5

1.0

1.5

1.4

5

EIS

45,571

−6

1,328,493

29

81

87

83

1.1

1.0

.7

.8

7

SOGAT(82)

185,150

−10

18,755,000

101

140

74

74

1.2

.9

1.4

1.3

3

IPCS

89,730

−12

8,542,544

95

84

78

93

1.0

1.1

1.0

1.6

5

NUIW

17,275

−14

1,355,804

19

N∕A

99

1.07

N∕A

N∕A

N∕A

N∕A

N∕A

GMB

789,556

−18

36,423,000

46

−8

86

88

1.3

1.0

1.8

1.3

6

BETA

31,719

−28

1,656,140

52

−16

96

93

1.1

.9

1.1

.7

12

NUTGW

73,122

−37

9,756,147

133

30

74

71

1.1

1.2

3.2

4.3

3

TGWU

1,270,776

−39

75,767,000

60

−2

90

92

1.4

1.1

2.2

1.6

9

NUHKW

43,526

−40

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

N∕A

AEU

793,610

−47

15,300,000

19

−62

91

93

2.0

1.3

2.3

.9

17

ISTC

41,730

−62

17,621,571

423

−4

62

48

1.0

.7

4.9

7.3

9

(*) Membership growth in these four unions was primarily the result of mergers.

Source (of raw data): K. Little (unpublished), M.Phil. thesis, Oxford, 1991.

(p.271)

Appendix 4(v). Major merging unions' change in financial standing 1979–89

Union

Members (%)

Subs. (%)

Invest. (%)

T. Income (%)

Admin. (%)

MSF

33

49

168

58

124

BIFU

28

91

87

93

125

NCU

23

74

84

72

90

NGA(82)

18

163

4

155

280

NATFHE

15

21

5

22

50

NUCPS

10

8

64

11

89

NALGO

0.2

103

252

93

187

EIS

−6

25

51

31

48

SOGAT(82)

−10

91

431

89

148

IPCS

−12

26

21

6

14

NUIW

−14

N∕A

N∕A

N∕A

N∕A

GMB

−18

0.7

−25

−1

26

BETA

−29

6

−78

9

29

NUTGW

−38

13

−51

19

−2

TGWU

−39

0.5

−29

−2

31

AEU

−47

−37

−91

−38

−3

NUHKW

−47

N∕A

N∕A

N∕A

N∕A

ISTC

−62

−53

8

−39

36

Source: K. Little (unpublished), M.Phil. thesis, Oxford, 1991 (1989 prices used in calculations).

Appendix 4(vi). Major merging unions' administrative costs per capita and subscriptions per capita in 1989

Union

Admin. per capita

Subs. per capita

NGA(82)

94.28

94.12

SOGAT(82)

77.01

68.64

NUCPS

75.19

63.96

BETA

73.64

68.12

IPCS

59.75

65.00

ISTC

57.79

41.60

NCU

52.70

62.40

NALGO

52.15

53.56

NUIW

45.21

59.28

NATFHE

45.10

42.12

NUHKW

40.58

39.52

TGWU

35.84

38.48

EIS

35.66

34.32

GMB

35.42

36.92

MSF

34.54

28.60

BIFU

33.25

32.76

NUTGW

31.14

38.48

AEU

21.53

27.04

Source: K. Little (unpublished), M.Phil. thesis, Oxford, 1991.

(p.272)

Appendix 4(vii). Major merging unions' change in membership and net worth 1979‐89

Union

Change in membership (%)

Net worth change (%)

Net worth (£ 1989)

Net worth per capita (£ 1989)

MSF

33

48

9,894,000

20

BIFU

28

193

3,905,000

23

NCU

23

13

6,210,000

40

NGA(82)

18

38

29,418,000

224

NATFHE

15

−209

−738,352

−9

NUCPS

10

16

7,473,000

63

NALGO

.‘2

181

55,763,000

74

EIS

−6

81

1,328,493

29

SOGAT(82)

−10

140

18,755,000

101

IPCS

−12

84

8,542,544

95

NUIW

−14

N∕A

1,355,804

19

GMB

−18

−8

36,423,000

46

BETA

−29

−16

1,656,140

52

NUTGW

−38

30

9,756,147

133

TGWU

−39

−2

75,767,000

60

AEU

−47

−62

15,300,000

19

NUHKW

−47

N∕A

N∕A

ISTC

−62

−4

17,621,571

423

Source: K. Little (unpublished), M.Phil. thesis, Oxford, 1991.