Massey-Ferguson, Manchester (Dispute)

HC Deb 28 June 1976 vol 914 cc55-6W

Mr. Frank Allaun

asked the Secretary of State for Employment if he will make a statement on the Massey-Ferguson's, Manchester, dispute in November 1974, in so far as it involved the depriving of certain union members in loss of unemployment benefit after the AUEW made the strike official, although they were members of other unions, because it was held by the local tribunal and the National Commissioner that they were of the same class and grade as the strikers.

Mr. Harold Walker

Under the National Insurance Act 1965, Section 22(1)—now the Social Security Act 1975, Section 19(1)—a person who loses employment because of stoppage of work due to a trade dispute at his place of employment will be disqualified from receiving unemployment benefit unless he can prove that neither he nor anyone in his grade or class is participating in, financing, or is directly interested in the dispute.

On 18th September 1974, 59 inspectors who were in dispute with Massey-Ferguson Ltd., Stratford, withdrew their labour. Other workers were laid off progressively and received unemployment benefit up to 4th November 1974. Shortly before this date the AUEW decided to pay dispute benefit to its members from 18th September.

It has been held by the National Insurance Commissioner that if a trade union is financing a trade dispute then every member of the union who ordinarily subscribes and thereby has a proprietory interest in the general or particular fund from which payments are made, is financing the dispute. Consequently all members of the AUEW were disqualified from receiving unemployment benefit, and any other worker who was in the same grade or class as a member of the AUEW was held to be disqualified by the statutory authorities.

The Employment Protection Act 1975 provides for the removal of "financing" and "grade or class" provision from the trade dispute disqualification and when this comes into operation the only grounds for disqualification will be that the claimant is participating in the dispute, or has a direct interest in its outcome.