An organization funded by its members

As we wrote in our 2020 pamphlet Them and Us Unionism, “UE members pay dues so that we have a strong organization that can win better wages, benefits and working conditions from the boss.” The fact that our union is funded by membership dues means that we are accountable to our members — not to outside funders.

Being an organization funded by its members places a special responsibility on leaders to maintain financial integrity. As UE General Secretary-Treasurer James J. Matles told the 38th UE Convention in Pittsburgh in 1973, “If you want to maintain rank-and-file principles it is not enough to pass good resolutions. Make sure that we conduct our affairs honestly, that we protect the dollars of our members and we use them for the benefit of the entire membership.”

Financial integrity

A member-run union’s leaders must live the life of the members.

By constitution, the UE national officers are “paid a salary not to exceed an amount equal to the highest weekly wage paid in the industry.” All salaries are set by convention vote. This policy establishes the pay structure for UE officers and staff. UE principles dictate that the officers must feel with the members, not feel for the members. In a truly member-run union, officers’ salaries must reflect the pay earned by the members they were elected to serve.

Business union officials generally maintain that to be on equal terms with the boss they should be paid like the boss. But what happens? Those union leaders paid like bosses end up living and thinking like bosses. They begin to relate more to the bosses’ position than to the problems faced by the members they represent. The overwhelming majority of union members, even those who are well-paid, are concerned with meeting their mortgage payment or rent, making their car payments, figuring out how to save enough money to send their children to college, or simply how to put food on the table. Highly-paid “union bosses” generally don’t have the same concerns.

Open-ended expense accounts threaten financial integrity. All expenses submitted for reimbursement by officials at every level of the union must be properly documented and open to examination by the trustees and the members. Payments should be reimbursement for actual expenses incurred. Any fixed expense paid must be set by the union’s executive board with the approval of the membership.

Big salaries and generous expense accounts distort priorities. Union salaries are paid by the members, so being elected to office should not be about what can be gained from the members, but what can be gained for the members. Union leaders who can relate to the people they represent are more willing to fight for better wages and working conditions.

More about UE’s approach to financial integrity can be found in the UE publication Open Books, Tight Fists: Financial Integrity in a Rank-and-File Union.

Open financial records

In a member-run union all financial records must be open to examination by the members. If expenses are reported to the membership on a regular basis, few problems will arise. Problems occur when finances are kept secret. Elected trustees should regularly examine the financial books and records to verify that all spending was for legitimate union business. All major expenses should be approved by membership vote.

No graft or kickbacks

The refund of dues to local officers or stewards is a form of petty corruption. This practice creates a constitutional conflict. A member must be a member “in good standing” to hold elected office in the union. By constitution, only members who pay union dues are members in good standing.

The reward for being an officer or steward in a member-run union is not financial, but the pride that such leaders can take in knowing they are helping their co-workers improve their standard of living, and in doing so also improving their own.

Frequent audits

In a member-run union, frequent audits are a necessity. The more frequently the books and records are examined, the more confident members can be that their dues dollars are being put to proper and effective use. Trustees should audit the local’s books and records, and report their findings to the members on a quarterly basis. The books should be audited by an outside auditor annually.