The General Secretary of Unite, Sharon Graham, has long been one of this government’s fiercest critics. In September 2025, Graham accused The Labor Party was abandoning its roots and warned that the union could be forced to withdraw its support. Now, Unite members have taken a step in that direction, voting to cut the union’s membership budget by 40 per cent – around £580,000.
The timing of the announcement is significant. Wednesday 11th March marks the one year anniversary of the first day of the Birmingham bin kick. Since then, the city’s waste workers have been locked in a dispute with the Labour-led council over proposals to reform the waste service which the union says would lead to significant pay cuts for some workers. Announcing the cut to the membership budget, Unite accused Labor of “incompetent behaviour” over its approach to strikes.
Unite has repeatedly expressed strong frustration with the government’s handling of the dispute. In July of last year, the union voted for suspend the joining of Angela Rayner – then deputy prime minister – in protest at the government’s approach to the strike, although sources close to Rayner said she had already resigned from the union months earlier.
On the decision to cut the membership budget in response to the bin strikes, a Labor source said it was “extremely frustrating that the bin dispute has not yet been resolved”, adding that Unite “can and should end the strikes”.
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Relations between Labor and Unite have been on a downward trajectory predating the bin row. The union did not donate to Labor during the 2024 general election campaign and refused to approve the party’s manifesto. The vote to cut the union’s membership budget represents another blow to Labour. Unite has historically been one of the party’s biggest financial backers. A Labor spokesman said: “The Labor Party is proud to be funded by our dedicated party members, affiliated supporters, trade union members and party donors.”
The announcement has sparked concern among some Labor Party supporters. After the news, an MP described the decision as simply “very bad”. Ian Byrne, MP for Liverpool West Derby – who worked as a Unite organizer before entering parliament – said: “Any loosening of ties with the unions that created the Labor Party should concern us all massively.” He added: “It is another sign that the Party and the Government must change direction and put the working class at the center of its policies.”
In January, the core group of soft-left Labor MPs and peers held a parliamentary meeting with some of the Birmingham bin attackers. The Unite members involved in the strike informed MPs and colleagues in the House of Commons about the dispute. A senior source said workers “spoke emotionally about the extreme financial difficulties they have faced during the dispute” and called on MPs and colleagues to support efforts to reopen negotiations.
The conference was chaired by Chief MP Paula Barker, who said of the meeting: “The deterioration of relations between Labor and a number of our historic trade union partners is a warning we cannot ignore.” Commenting on the decision to cut the union’s membership budget by 40 per cent, Luke Hurst, Mainstream’s national co-ordinator, said: “This is another wake-up call for Labor – but is the leadership listening?”
Signs of concern from Unite have been emerging for some time. Graham has repeatedly made her displeasure with the government clear. However, the latest development may struggle to break the lingering fallout from the Mandelson affair, after the government released its first batch of documents today.
But this is unlikely to be the end of the story. Unite has said it will now formally consult its members on whether the union should remain affiliated with Labour. If relations between the two continue to deteriorate, could a relationship spanning more than two decades soon come to an end?
(Further reading: Peter Mandelson claimed more than half a million pounds after being sacked)
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