Please switch to direct payment of union fees

JOHN DIXON reports Federation is encouraging members to switch to direct payment of union fees.

The Howard Government's workplace relations legislation is now in force and already we see a changing industrial relations landscape. Under the new legislation it is not possible in the federal industrial jurisdiction for industrial agreements to have payroll deductions of union fees as it is regarded as "prohibited content" by the new legislation. In fact, under the new federal laws it is an offence if a person seeks to have payroll deductions included in any agreement. While the majority of Federation's members for the moment are covered under the state award system, there is no guarantee that this will continue following the state election in March 2007. Citizens cannot rely on any government in the future not to hand over their constitutional powers to the federal government, especially if the federal government attempts to withhold federal funding -- as has already been seen in the education sector on other matters in the last few years.

Federation is asking members to switch over the way they pay their union subscriptions in order to protect themselves and keep their union strong in the face of the Howard Government's attacks on workers via the new federal industrial relations legislation. There have been occasions in the past when various governments have either threatened to, or have actually taken away, members' payroll deductions of their union fees in an attempt to punish the Federation and its members during industrial campaigns.

Federation knows from teacher unions in other states that conservative governments have abolished payroll deductions by employing authorities, leaving teacher unions weakened and their members vulnerable.

Our union cannot stay strong if we continue to rely on payroll deductions to collect union fees. Union deductions direct from payroll leaves the employer in control of the process. Unions, particularly public sector unions, are therefore exposed to threats by hostile governments.

The breakdown of how our members currently pay their union subscriptions is as follows:

• 64 per cent of members are on payroll deduction
• five per cent of members are coded as direct debit (via Teachers Credit Union)
• 31 per cent of members are coded as 'Invoice' -- this includes those who pay by phone (credit card), BPay, online payment via our website or cash/cheque.

However, payroll deductions represent over 85 per cent of the union's income. This represents a substantial to extreme risk to the union and its ability to campaign, or even exist, if we do not convert the majority of our members to other payment methods.

To this end the union has been working on the implementation of the Make the Switch campaign to switch members from payroll deduction of union fees to either direct debit from their bank accounts or direct credit (automatic payment via a credit card).

The union has already undertaken considerable work behind the scenes in the switch campaign to undertake a massive change in the way members pay their union fees. Federation has instigated major changes in its membership system and how it integrates with the banking and direct debit system. The union has trialled the necessary forms and procedures earlier this year with Organisers in selected schools and other worksites and designed new membership forms for new members that remove the payroll deductions option and concentrate on direct debit or direct credit payments. Federation has also spent considerable time redesigning a secure website environment so members can join or switch payment methods via the union's website.

Currently the union is undertaking a trial with the 300 Federation Councillors' workplaces. The feedback from two previous trials is that once the importance of this campaign is explained to members they are overwhelmingly switching their payment methods from payroll deductions to direct debit.

Federation plans to send material out to all workplaces early in term 2 to enable members to make the switch. Currently, the union's target is to move 60 per cent of those who currently pay by payroll deduction to direct debit by the end of 2006. This represents more than 29,000 members. Our target by July 2007 is to have moved 90 per cent of payroll deduction members to direct debit payment methods. The campaign will include letters and emails to members, kits to Fed Reps, extensive follow-up by Organisers, training of Fed Reps in all Trade Union Training courses and Organisers training activists at Association level.

This is an important campaign for Federation and its members. It has to be seen as part of the Your Rights at Work campaign. The removal of payroll deduction of union fees in the federal jurisdiction is an attack on union members' individual job security, an attack on their right to be protected and an attack on the collective strength of the union to argue for future salary increases and working conditions. It is a campaign that goes to the very future of effective representation by the Federation of its members.

John Dixon is the Assistant General Secretary (Communications and Administration).

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