𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour has stripped away powers from regulators to investigate financial scandals and corruption by trade unions, critics have claimed. Hidden in the controversial Employment Rights Act is a move that removes the power of officials to proactively probe unions, as well as slap financial penalties or enforce requirements on annual returns.

The regulator will also no longer be able to look into complaints brought to their attention by media coverage or third-party reports, and will now need a union member to complain instead. Critics have attacked the change, calling it a permissive regime that will only help Labour’s largest union donors, some of which have been riven by scandal in recent years.

Shadow Business and Trade Secretary Andrew Griffith said: “Labour’s Unemployment Act is a union charter riddled with measures that weaken or remove safeguards to protect ordinary union members.” He added: “It’s ironic that the only regulations this red-tape-loving Government wants to cut are those on their union paymasters.”

Mr Griffith said: “There have been serious concerns about how union funds have been used and distributed – particularly in the case of Unite. Regulators must be able to properly investigate when questions arise.” He added: “Only the Conservatives will restore a flexible jobs market and Get Britain Working Again.”

Shadow Skills Minister Alan Mak said: “Labour is exempting their union paymasters from the same rules that everyone else has to follow.” He added: “With Unite, one of Labour’s biggest trade union donors, already facing multiple investigations about its conduct the Government should be tightening the rules on union behaviour not making them weaker.”

Opponents of the change point to investigations into several major Left-wing unions, such as Unite, which is currently under investigation over irregularities around the building of a £112million hotel and conference centre in Birmingham.

It has been reported that the union spent a total of £112million of its members’ money on the project, which has since been valued at just £29million – suggesting £83million has been wasted.

A KC-led inquiry also identified a missing £14million which has been described as a “mystery” and does not feature in the project’s final accounts.

Unite is also under investigation by South Wales Police as part of a bribery, money-laundering and fraud investigation.

Meanwhile, the GMB is facing allegations of a culture of bullying, misogyny, cronyism and sexism within the union, with the Equality and Human Rights Commission examining complaints from women

Mr Griffith said the wider consequences of the Act were not explored in depth as the law went through Parliament.

He called for the institution of a 250-employee floor in the Act to “protect our very smallest businesses from the administrative burden” of trade union access.

A Government spokesperson said: “The Certification Officer will still be able to investigate trade unions, including their financial affairs, and they could face legal action if they do not comply.”