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The Sunday Times - Business

April 27, 2003

Prospect of union split raises fears of militancy

BRITAIN’s second biggest union is on the verge of splitting, potentially causing huge problems for Tony Blair’s industrial-relations policy.

Business will also be concerned that Amicus, the so-called super union with 1.2m members, is close to breaking up. The union was formed last year when the AEEU, the electricians’ union, merged with the MSF manufacturing union.

The AEEU last week decided to hold a vote on whether to start talks about demerging.

The move will ring alarm bells in Downing Street because the AEEU — led by Derek Simpson, a former communist — is the more powerful wing of Amicus.

With Simpson in charge there is the threat of more industrial unrest at a time when a new generation of left-wing figures is rising to the top in key unions.

Amicus — which is the Latin word for friendly — has joint general secretaries. Roger Lyons, the MSF leader, is close to Blair and could act as a restraining influence on Simpson. That control would disappear if the AEEU broke away.

Amicus is due to hold a conference in June to agree a new constitution.

However, the negotiations have broken down acrimoniously, calling the merger into question. The union’s rules commission, which comprises people from both the AEEU and the MSF, has been unable to agree a way forward.

It is understood that the MSF wants a 50/50 split of positions and committees in the new constitution. This is unacceptable to the AEEU, which has more members and greater organisational clout.

One insider said: “This is a worrying development for both business and the government. A year ago Downing Street was very happy with the merger as it tied up moderate unions close to Labour, but Simpson’s election and this development have changed all that.”

Simpson narrowly beat the incumbent, Sir Ken Jackson, in the battle to be general secretary of the AEEU last summer. The result shocked the Labour party and highlighted the complacency that had built up in senior government circles. The party leadership believed that the left had been neutered during the battles of the early 1990s.

Jackson was known as “the prime minister’s favourite union boss”. Simpson last year claimed he was out to give the prime minister “a migraine”.

The rules drawn up when the unions merged make it very difficult for them to split. However, if the AEEU put its weight behind a demerger it could force a union-wide ballot.

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