Derek Simpson's secret deal over perks and pay rise

[Albus]

http://www.timesonline.co.uk/tol/news/politics/article5533387.ece

One of Britain’s most powerful union leaders has a secret house-for-life guarantee and enjoys pay and benefits worth nearly £200,000.

Derek Simpson, joint general secretary of Unite, has a deal to remain in his £800,000 grace-and-favour house in Berkhamsted, Hertfordshire, until he dies, according to confidential documents obtained by The Times. His pay package also went up by 17 per cent. Under the terms of the agreement Mr Simpson’s partner can stay in the home at a heavily subsidised rate even after the death of the 64-year-old union leader.

And although Mr Simpson, a close ally of Gordon Brown, has always claimed that he pays tax on the accommodation, for which he pays a nominal rent, the document shows that it is union members who cover the cost of the perk. The disclosure is the latest twist in a long-running controversy over the spending and en-titlements of Mr Simpson, who is currently fighting an election to stay in office beyond retirement age.

Internal papers show that Mr Simpson, who has said “executive pay and bonuses would make Midas blush”, demanded that the union cover his tax bill for his home “to make it affordable”. The perk was worth almost £40,000 in 2007, boosting to £194,252 the total value of the general secretary’s remuneration.

A spokesman for Unite said. “These arrangements were approved by the executive committee at the time and have been a matter of public record ever since. His remuneration is published every year and is properly approved every year.”

Unite represents a large number of workers earning less than the national average wage. Many reacted angrily to the latest disclosure. Steve Kelly, a construction worker in Romford, said: “When we are all living in fear of losing our jobs and maybe homes it is an outrage that our general secretary lives in a mansion with no threat of losing it ever. No wonder he sucks up to Gordon Brown and big business.”

Mark Adams, a safety rep at Marshall Aerospace in Cambridge, said: “It is an embarrassment when we are trying to recruit new members. We have our key figure living in the lap of luxury.”

Unite, which has 2.1 million members, has been riven by infighting since it was formed from the merger of Amicus and the T&G.