top of page

Personal spending

When you pay union dues, where does your money go?

 

Unions say they only spend money in ways that benefit the union members.

 

For example, in a letter to Delta flight attendants the International Assocation of Machinists is trying to unionize, Stephen Gordon, a District President of the union, said, 

 

"IAM dues are spent for the benefit of IAM members."  

To see the entire letter, click here. 

You can see the financial reports unions file each year with the Department of Labor. 

 

Click here to go to the Department of Labor web site.  Use the drop-down menu for the box labeled "Union name by abbreviation" to find the union you're interested in, and use the drop-down menu in the "union type" box to select "intermediate," "international" or "local" depending on which level you want to explore.  Then click "submit" at the bottom of the page.

Grand Lodge

(International Union)

In addition:

 

The IAM International President, Robert Buffenbarger, has hired multiple "assistants:"

 

  • His son Andrew, "Special Assistant to the President" (paid $205,742.00 in 2014). 

 

  • Owen Herrnstadt, "Chief of Staff to the President" (paid $264,277.00).

 

  • Two "Special Assistants to the General Secretary/Treasurer," paid $214,475.00 and $198,892.00.

 

  • 8 "Chiefs of Staff" paid an average of more than $200,000.00 each.  

 

On average, the 377 Grand Lodge employees make $114,525.00 each (about one-third make over $150,000.00).

 

The IAM paid more than $20 million for Grand Lodge employees’ health, vision and dental benefits, plus pensions and scholarships for their kids.  

 

The IAM Grand Lodge paid $1,629,267.00 to The McLaughlin Company for “union liability insurance” that protects union executives from members who sue the union.  

 

In other words, members paid $1.6 million for insurance that protects IAM executives from the members themselves! 

 

District Lodge 54 (Columbus, OH):

 

  • The District Lodge President was paid salary and “allowances” totaling $167,784.00, plus he charged the District Lodge $11,581.00 for his expenses.

 

  • The District Lodge Secretary/Treasurer was paid salary and “allowances” of $105,713.00; his 2014 salary was $22,971.00 higher than his 2013 salary – a 29% raise!  He also charged the District Lodge $16,981.00 for his expenses.

 

  • The District Lodge paid one “organizer” $97,541.00 and five “business representatives” $142,209.00, $134,718.00, $131,117.00, $96,397.00 and $89,670.00.

 

  • Health and pension benefits for District Lodge officers cost IAM members $229,737.00.

 

Local Lodge 1943 (Middletown, OH):

 

  • The Local Lodge President was paid a salary of $87,222.00 (up $3,586.00 from the $83,636.00 he was paid in 2013), and charged the Local $3,312.00 for his expenses.

 

  • The Local Lodge Business Rep/Secretary/-Treasurer was paid a salary of $79,105.00 (up just $488 from his 2013 salary), but the expenses he charged the Local were $11,765.00, compared with $4,138.00 a year before.  The Local does not explain why his expenses nearly tripled from the previous year.  

 

  • Health and pension benefits for Local Lodge officers (NOT members) cost members $16,222.00.

 

  • The annual picnic at Kings Island cost $28,333.00.  Since the Local collected just $11,565.00 in ticket sales, the picnic was mostly paid for by members who didn’t go.

Do other unions spend their money the way the Machinists union does?

 

Of course.  Here are two more examples of International Unions' spending (keep in mind, these unions also have district and local unions that spend workers' money):

 

But union financial reports show that union officials spend money mostly to benefit themselves.

 

For example, here is what was reported in 2014 (the most recent year available) by each of the 3 levels of the International Association of Machinists organization:

Presidents of the International Unions decide who the union hires and how much they're paid.  Here's what union constitutions say:

 

  • International Brotherhood of Electrical Workers:  "The International President has the power to employ such assistants as, in his judgment, are necessary to carry on the work of the organization, and to decide the compensation to be paid."  

 

  • Utility Workers Union of America:  "The National President shall have the authority to appoint, direct, suspend or remove any Regional Director, National Representative, Organizer or other employee of the National Union . . . He/she shall fix their compensation..."   

 

  • United Steelworkers union:  "The International President shall have the authority to appoint, direct, suspend or remove such organizers, representatives, agents and employees as the President may deem necessary.  The President shall fix their compensation..."

United Steelworkers Union

In addition:

 

Hundreds of USW International Union employees are paid more than $100,000.00, including: 

 

  • 40 "Assistants" (4 are paid more than $150,000.00) 

 

  • 51 "Technicals" 

 

  • 322 "Staff" and "Key Staff"

 

  • 1 "Clerical"  

 

The USW paid more than $76 million for International Union employees’ hospitalization, life and long-term care insurance, pension benefits and "relocation and transportation."

 

The USW International Union paid $19,802.00 for Pittsburgh Steeler tickets (the International Union headquarters is located in Pittsburgh).  

 

The USW International Union paid $589,781.00 to AON Risk Services Central, Inc. for insurance that protects USW executives from the members whose dues pay for that insurance. 

International Brotherhood of Electrical Workers

In addition:

 

The IBEW International President, Edwin Hill, has hired multiple "assistants:"

 

  • "Senior Executive Assistant to International President" (paid $268,237.00)

 

  • "Confidential Secretary" (paid $147,148.00)

 

  • A second "Confidential Secretary" (paid $190,998.00)

 

  • Two "Executive Assistants" (paid $264,107.00 and $217,988.00)

 

  • Two "Executive Secretaries" (paid $112,695.00 and $102,987.00).

 

The IBEW International Union paid:

 

  • More than $100,000.00 each to 58 "Organizers"

 

  • More than $150,000.00 to 145 "International Representatives" (94 of those 145 made more than $175,000.00, and 11 made over $200,000.00).  

 

The IBEW paid $37.1 million for International Union 

employees’ health, vision, prescription, dental and legal plan benefits, plus pensions and employee assistance benefits. 

 

The IBEW spent $66,671.00 on the International Union office Christmas party (up from $61,198.00 the year before).  

 

The IBEW International Union paid $69,745.00 to The McLaughlin Company for “union liability insurance” that protects IBEW executives from the members whose dues pay for that insurance.

THE BOTTOM LINE:

​

What union financial reports REALLY show is:

 

Union Presidents spend a lot of money on themselves and their friends and relatives - and on insurance to protect themselves from the members (who are paying for all this).

bottom of page