BRITAIN's largest trade union and Labour Party affiliate, the

1,200,000 member Transport and General Workers' Union, supports the

Labour leader's policy of backing the Maastricht Treaty if it includes

the Social Chapter.

However, the union's ruling lay executive takes exception to Mr John

Smith's attempts to weaken the link between the unions and the party and

is threatening more cuts in financial support for the party.

The TGWU is already cutting back on its affiliation numbers and

therefore fees (from #1.67m to #1.35m) and considering whether it should

continue to sponsor 38 MPs.

Maastricht and links with the Labour Party were two issues discussed

at last week's quarterly TGWU executive meeting which highlighted the

rifts between Mr Bill Morris, general secretary, and his executive, and

the Labour Party and the union.

The executive insisted Mr Morris should write to the Labour leader

emphasising the need for opposition to the Maastricht Treaty unless the

Social Chapter is included. It was also agreed that the executive's view

on maintaining union involvement in the selection of Labour candidates

should be circulated to branches along with the Labour Party's

consultation paper on reducing links with the unions.

Mr Smith advocates reducing the unions' share in party conference

policy-making from 70% to 50%.

Unions, which now have a 40% say in the leadership vote, would have no

vote in future leadership contests. Selection of MPs, where unions also

have a 40% say at the moment, would be on the basis of one member one

vote.

Since elected on a left-wing ticket in 1991, Mr Morris has had a

troubled relationship with the left-wing majority on the ruling

executive.

This has not prevented him from pressing ahead with much needed

re-organisation involving staff cutbacks, including three regional

secretaries who were paid off recently.

Part of this restructuring is to facilitate a merger with the General

Municipal and Boilermakers to create a two million strong super union.

This would be bigger than the 1,400,000 member Unison due to come into

being on July with the amalgamation of the National and Local Government

Officers' Union, the National Union of Public Employees, and health

union Cohse.

The TGWU-GMB amalgamation talks, which got under way formally last

month, are complicated by both unions seeking to absorb the troubled

Furniture, Timber, and Allied Trades Union.