VTUPB3000 - Trade unions and professional bodies: Item 1(a) trade unions etc

Definition of 鈥渢rade union鈥�

Exemption for supplies made by trade unions to their members is provided for in 鈥淚tem 1(a)鈥� of 鈥淕roup 9鈥� of 鈥淪chedule 9鈥� to the 鈥淰AT Act 1994鈥�. 鈥淣ote (2)鈥� to 鈥淚tem 1鈥� states that the term 鈥溾渢rade union鈥濃� is to have the meaning given 鈥渢o it by section 1 of the Trade Union and Labour Relations (Consolidation) Act 1992鈥�:

1. In this Act a 鈥渢rade union鈥� means an organisation (whether temporary or permanent) -

(a) which consists wholly or mainly of workers of one or more descriptions and whose principal purposes include the regulation of relations between workers of that description or those descriptions and employers or employers鈥� associations; or

(b) which consists wholly or mainly of -

(i) constituent or affiliated organisations which fulfil the conditions in paragraph (a) (or themselves consist wholly or mainly of constituent or affiliated organisations which fulfil those conditions), or

(ii) representatives of such constituent or affiliated organisations, and whose principal purposes include the regulation of relations between workers and employers or between workers and employers鈥� associations, or the regulation of relations between its constituent or affiliated organisations.

The key elements of the above definition are twofold:

  • the members of the organisation (鈥渨orkers鈥�) will be employees;
  • the 鈥減rincipal purposes鈥� of the organisation must 鈥渋nclude the regulation of relations between workers and employers鈥�.

鈥淥ther organisations鈥�

鈥淚tem 1(a)鈥� is not confined to trade unions as defined under 鈥淒efinition of 鈥渢rade union鈥濃� above. Exemption can also be granted to any 鈥渙ther organisation of persons having as its main object the negotiation on behalf of its members of the terms and conditions of their employment鈥�. To satisfy this criterion, the members of the organisation must actually be engaged in employment. A tribunal considered the types of organisation that would fall within 鈥淚tem 1(a)鈥� in the case of the 鈥淐ivil Service Pensioners Alliance (LON/94/36A)鈥�.

The Civil Service Pensioners Alliance (CSPA) is an independent non-party political action group founded by a group of civil service pensioners who were concerned that civil service pensions were not inflation-linked. The CSPA had three objects:

  • maintaining / improving the purchasing power of civil service pensions,
  • taking part in activities that would benefit any pensioner in receipt of a civil service pension paid from UK funds, and
  • promoting the social wellbeing of members.

The 65,000 members of the CSPA included:

  • pensioners,
  • persons within 3 years of retirement and due to become qualifying pensioners, and
  • the spouses of the foregoing types of member.

Among the grounds upon which the CSPA claimed exemption for its membership supplies was a claim to meet the exemption criteria of 鈥淚tem 1(a)鈥�.

The tribunal found that these criteria were not met because:

  • the members of the CSPA were not mainly 鈥渨orkers鈥� but pensioners;
  • its 鈥減rincipal purposes鈥� did not 鈥渋nclude the regulation of relations between workers and employers鈥�. It did not negotiate terms and conditions of employment: negotiations on pension rights were conducted by a Joint Committee on Superannuation that was composed of representatives from recognised civil service trade unions.