DETROIT, MI - Monthly dues for UAW members will increase for the first time in nearly 50 years, reported MichiganLive.
Following a more than two-hour debate Tuesday during the 36th UAW Constitutional Convention in Detroit, union delegates from UAW local unions in the U.S., Canada and Puerto Rico voted to approve a 25 percent increase in dues – making dues the equivalent of two and a half hours of pay per month instead of two.
There was not an official vote count. Following a somewhat close vocal "aye" versus "nay" vote, UAW President Bob King called for a hand vote and declared that "the ayes certainly have it."
The room was clearly divided during the discussion, which included 40 people – 20 from each side – arguing their side of the debate. At one point, King, who served as moderator, had to ask delegates not to use items, such as clickers, when those against the dues increase were speaking.
Those opposed to the increase argued that it is not the right time, as the majority of members have not received raises in nearly a decade, and it could lead to a decline in membership – particularly due to many states, including Michigan, becoming so-called "right-to-work" states that allow workers to freely opt out of unions. Many also argued that rather than just the 1,100 delegates at the convention voting, all of the UAW's roughly 391,500 members should vote on the increase.
"I agree with the dues increase, but I don't think it's the time," said Rich Boyer, of UAW Local 140 in Warren, Mich. "This membership is divided. If we increase these dues now and don't go to the bargaining table and get significant increases in wages, we are in trouble."
Part of that divide, is due to the union's current two-tier wage system – another controversial debate at the convention – that includes entry-level UAW members starting at $15.78 an hour and increasing every 12 months to $19.28 an hour, as traditional workers – the majority of UAW members – make $28 an hour on average.
Delegates in support of the increase argued that the UAW needs to have a strong Strike Fund going into contract discussion with the Detroit automakers next year and that it's about time for members to support the union through a dues increase. "The UAW is the only organized union that has not been raised in almost 50 years," said UAW Local 140 President Mark Dickow during the open discussion about the dues increase. "It's about time."
The dues increase -- the first for the UAW since 1967 -- is to help replenish the union's "Strike Fund," which as of last year was at almost $627 million. It was once at more than $1 billion, which King said he would like to see again.
According to UAW documents, the Strike Fund had a year-end high of more than $914 million in 2005. Since then, it has decreased on average about $287 million a year.
The Strike Fund, according to King, has slowly shrunk over the years due to the economy and union leaders opting to use the funds instead of increasing membership dues.
"We're at the point now where we don't think that's the wisest decision," King told reporters Monday, a day before the vote.
King, who urged support of the increase on Monday, has said the Strike Fund "serves as a deterrent" and makes sure corporations know that the UAW has the resources to strike if needed.
With approving the dues increase, which was "Article 16" of the convention, members also voted to transferring $85 million from the "Emergency Operations Fund" to a newly created VEBA trust; transferring $25 million of the Strike Fund to the "International Union General Fund" in June; allowing leaders to use up to $60 million from the Strike Fund over the next four years to support major organizing drives or other initiatives intended to increase UAW membership; and other smaller financial measures related to dues.
Samanttha Price, of UAW Local 12 in Ohio, opposed Article 16 not only because of the 25 percent dues increase, but also questioned why leaders want to take money out of the Strike Fund if it's so important.
"If we want to build up a Strike Fund, let's build a Strike Fund and leave it alone," said Price, a 19-year UAW member.
The UAW's membership has significantly decreased over the last decades as factories become more automated and 24 states, including Michigan, have become so called "right to work" states, allowing employees to decide for themselves whether or not to join or financially support a union.
During King's tenure, membership has increased in each of the last four years, including an increase of 9,000 in 2013. While a far cry from its 1.5-million peak in 1979, it's going in the right direction. Today, the UAW has about 391,500 members.
The dues cost of two and a half hours per month will be reviewed during the 37th UAW Constitutional Convention in 2018.
The 36th UAW Constitutional Convention, held every four years, started Monday morning. It continues through Thursday at Cobo Center in Detroit.
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