Union Dues

 

 

Unions get nearly all of their income from the workers they represent, who pay them dues, fees, assessments, fines and other charges. 

 

However, the amount of dues you pay, or even whether you pay dues at all, is complicated and determined by 3 things:

 

• The state you work in

• Whether you choose to become a member of the union

• Whether you object to the union using your dues to support the political candidates and causes they (not you) choose

 

 

1.  In which state do you work?

 

There are 25 states that have laws saying workers have a right to work without being forced to pay the union that represents them:  Alabama, Arizona, Arkansas, Kansas, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Michigan, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming.  If you work in one of these states, you don't have to pay the union.  If you work in another state, you almost certainly will be forced to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The truth is, whether or not you get "improvements and benefits" in the union contract, you'll have to pay union dues or fees -- even if the contract gives you less than you had before the union was voted in.  

 

In contract bargaining, improved wages and benefits are not guaranteed.  But in a non-Right to Work state, union dues or fees are! 

 

 

 

2.  Do you choose to become a member of the union (and pay full dues) or stay out of the union (and pay "agency" or "representation"

      fees instead)?

 

When a union is voted in, everyone in the group becomes represented by that union, regardless of how they voted.  But that does not automatically make everyone a union member.  To become a member, you have to fill out a membership application form and pledge your loyalty to the union.  But the law says you can't be forced to join the union that represents you - its your choice.

 

Unfortunately, there are disadvantages to either option:

 

• If you become a member, you have to obey union rules and union officials.  Also, in addition to full union dues, you have to pay any fees, assessments and fines the union charges you.

 

• If you choose not to become a member and pay "agency" or "representation" fees instead, you have no input concerning what the union does.  You can't even go to union meetings, even though the union speaks for you (and you cannot speak for yourself) with management concerning your wages, benefits and conditions of employment.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.  Do you object to paying for the union's political activities?

 

Unions spend millions of dollars each year to support or oppose political candidates and causes.  In 1988, the U.S. Supreme Court ruled that non-members cannot be forced to pay for a union's political activities.  The most nonmembers can be forced to pay is an "agency fee" for their share of the union's costs of collective bargaining, contract administration, and grievance adjustment (and unions must prove how much those costs are).

 

As a result of that ruling, the National Labor Relations Board requires unions to do several things to safeguard your right to pay no more than a limited agency fee:

 

• The union must inform you that you have the right to be a nonmember;

 

• The union must inform you that nonmembers have the right to object to paying for union activities not related to the union's duties as bargaining agent (such as political activities) and to get a reduction in fees for those activities.  If you do object, the union also must tell you the percentage of the reduction, the basis for the calculation, and that you have the right to challenge these figures.

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• The union must inform you about procedures for filing objections.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The "bottom line" is, you can reduce the amount you're forced to

pay the union by choosing not to be a member (so that you pay

an "agency" or "service" fee) and then by formally objecting

every year to paying for the union's political activities.   

 

 

 

 

So, how much are union dues?

 

It depends on which International Union -- and sometimes on which local union within the International Union -- represents you.  For example, the Constitution of the International Association of Machinists says:

 

“The monthly dues shall be established by the local lodge bylaws, or the district lodge bylaws, as approved by the International President.”  (Article 1, Section 8, p. 130)

 

Here are dues amounts for various unions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local unions within these International Unions can charge more, but not less than these amounts.  For example, UWUA Local 102 recently raised dues from two times each worker's hourly rate to three times their hourly rate - a 50% increase.  

So how much would you actually pay?  Imagine you work 40 hours per week in a company where the pay range is from $20.00 to $30.00 per hour, the average pay is $25.00 per hour, and you make $24.00 per hour.   Here's what you'd pay to each union:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There are three other things you need to know:

 

1.  Dues are not the only thing union members are required to pay.  

 

Unions also charge members "fees" (such as an initiation fee when they join or a transfer fee if they go to another company that has the same union), "special assessments" (whenever the union needs money, such as when a strike somewhere else depletes the strike fund) and fines (if you're found guilty of breaking union rules).  Often, these additional charges add up to more than the dues members pay. 

 

The International Association of Machinists Constitution says:  “Initiation fees, reinstatement fees, dues and fines shall constitute a legal liability by a member to the Local Lodge.  The cost of litigation arising from charges against a member by reason of such liabilities shall constitute a legal debt payable by such member.”  (Article F, Section 1, p. 121)  In other words, if the IAM takes you to court because you failed to pay initiation fees, reinstatement fees, dues or fines, you will also have to pay the court costs!

 

2.  Dues automatically go up every year in almost every union.  

 

For example, the International Association of Machinists Constitution says the “per capita” [per person] tax local unions must pay to the international union automatically increases every year" (page 40).  Local Lodges pass this cost on to members through dues increases.  In addition to these automatic increases, the IAM has raised dues whenever the union has had a financial need.  Between 2008 and 2010, for example, many members saw their dues increase by more than 20% without warning.  

To read more about IAM dues, click here:

 

The UWUA Constitution says something similar:  "This mandatory annual dues increase shall be based on the average wage increase that is secured for the members of the Union in the preceding year."

 

The UMW Constitution likewise says “Membership dues for working members shall be the equivalent of three hours wages per month, and shall be automatically increased thereafter, based on the Grade 1 Standard Daily Wage Rate for an underground miner under the National Bituminous Coal Wage Agreement."  

 

3.  The REAL cost of having a union isn't what you pay, it's what you don't have because of what you paid.

 

Suppose your dues are $60.00 per month, or $720.00 per year.  What else could you buy with that money?  If the price of gas is $2.50 per gallon, you could fill a 12-gallon gas tank twice each month.  Or, the U.S. Bureau of Labor Statistics found that families, on average go to the grocery store twice a week, spending an average of $60.00 each time - the same amount as your dues.  To learn more, click here.   

 

What if you took that money and put it into a 401(k) where it's matched by SunCoke?  Suppose you start with $120.00 (your $60.00 plus $60.00 from SunCoke) and then added $120.00 every month for 5 years.  At just a 3% rate of return, here's how your investment would look: