Financial Management and Financial Performance in British Trade Unions

This article examines changes in the financial performance of British trade unions in the early 1990s. Using survey data, it looks for a relationship between changes in financial management and changes in financial performance. Unions have continued to increase the concentration of financial decision-making and the sophistication of financial systems. However, financial concerns have become no more central to union decision-making and as a result financial management improvements do not lead to improvements in financial performance. We argue that new financial management techniques lead to increases in the cost base as union organizations become more centralized and bureaucratic. The implications for representative effectiveness are discussed.