In the past eight months UAW Local 2195 has added 750 new members to our roster. As a matter of fact, these new faces currently make up a full two thirds of the active membership of this local. We welcome each and every one of these new union members to the brotherhood as together we fight for the working class.

While it is great to have these new members, the attrition, retirement and buyout programs have resulted in a lot of union experience leaving our local. The future of this local now rests in the hands of those who have chosen to stay on and our new members. However, Local 2195 began from scratch in 1982 and we grew over time to be a solid local union. We are fortunate to have a very dedicated new group of members who have 100% exercised their option to join the UAW. However, because of the turn over our active members, our new members are being pressed into service much quicker. Because of this, our local must utilize every means available to educate our new brothers and sisters and bring them up to speed on the workings of the UAW as quickly as possible. To aide in this effort Steering South and the Local 2195 website will be featuring a new column called “The A,B, C’s of the UAW” to educate our new members on the UAW.

This issue we tackle the subject of dues and how they are collected, divided and spent.

To carry out the actions of bargaining, education and social justice, funds are required to stand in the gap for the working class. UAW members, as with all unions, collect dues from their members to cover the operating expense. The paying of dues is set by the UAW Constitutional Convention which is held every four years. Each local elects representatives to attend this convention to vote on the International leadership and make appropriate changes to the UAW Constitution.

UAW members pay two hours per month in union dues, based on their rate of pay. This current dues formula as passed at the 1967 constitutional convention. This equates to 1.15% of the members pay being paid in union dues. When the current formula was passed in 1967, the average auto worker made $7,904 a year and paid $91 in union dues. By 2000 the average income had risen to $47,798 with annual union dues being $552. That $461 increase in union dues has resulted in pay increases by almost $40,000 per year. That equates to an $87 increase in pay for every extra dollar paid in union dues. That is simply the wage increase and doesn’t include benefit gains!

So where does the dues money go? It gets broken down in three areas; 38% stays with the local union, 32% goes to the International Union and 30% goes to the strike fund. If the strike fund remains above the minimum of $500 million, then local unions receive a “rebate” from the strike fund. Currently, the strike fund stands at just over $800 million.

Each local sends 3% of their dues to their respective regions, leaving 35%. This 35% that stays with local unions are used for the day to day operation of the local union. This includes maintaining the local union facilities such as the union hall and grounds. Other funds are used for educational program, communication and in social activism. (For example the cost of printing and mailing this issue of Steering South is an example of your union dues at work.) The annual Local 2195 picnic and annual Children’s Skating party are other examples of how your union dues are used.

The 32% that goes to the International Union is used to cover the expense of International building and grounds, such as Solidarity House the UAW headquarters in Detroit and to provide the Region 8 office in Lebanon, Tennessee. A portion of the funds are used to communicate the membership such as Solidarity magazine and the UAW website. Other funds are used for action items such as the UAW lawyers who have been representing our members at Delphi during the bankruptcy proceedings.

The 30% that goes toward the strike fund is used to protect our members and their families in the event of a strike. Members in good standing draw $200 a week from the International Union Strike fund if they are on strike and have their health insurance paid from the fund. While most UAW negotiations are settled at the bargaining table, the safety net of the strike fund is there to protect UAW families in the event of a strike. A healthy strike fund forces companies to bargaining in good faith and becomes another bargaining chip for the UAW.

An important function of the UAW is lobbying for legislation that affects working families. However, federal law prohibits the use of union dues for political action. This is where V-CAP check off comes into play. V-CAP check off are voluntary donations made by members for use on political action to protect America’s working families.

When you look at the return on your union dues, it is easy to see it is one of the best investments a working class American can make. Remember, the UAW is a non-profit organization so union dues are tax deductible. If you have specific questions you would like to see answered in the A,B,C’s of the UAW, please contact the union hall and relay your question.