Financial Report: Page 19
January - February 2017
Our Future, Our Jobs
A Look at How We Can Work for
the Interests of Working Families
ALSO INSIDE:
Columbia Academic Workers Win
Page 5
Grant Aids Apprentices
Page 6
Eight years ago, Barack Obama
became the first African-American
president. This was a historic event
in our nation’s history in and of itself.
But he brought with him a message
of hope and change that invigorated
political participation that this
country hadn’t seen in decades.
In his 2008 presidential campaign,
he addressed income inequality and
became a voice for the working
families and the poor who bore the
brunt of policies and laws that had
long helped only those at the top of
the income bracket. His optimism
combined with his simple campaign
slogan, “Yes We Can,” gave so many
people who had felt isolated from
the political process a sense that
they would have a part to play in the
future of this great country.
We embraced his optimism as we
headed into the worst economic
crisis the country had seen since
the Great Depression. The Great
Recession of 2008 was devastating
for tens of millions of Americans and
the auto crisis that followed made a
bad situation even worse.
It was President Obama’s hope and
vision of change that led us through
that trying time. During the auto
crisis, President Obama stuck to
his principles and his bold action
saved the auto industry and more
importantly, saved millions of families
and their communities from collapse.
He extended the auto rescue loans
which began with President George
W. Bush in late 2008 which helped
save millions of jobs.
His priority with the auto rescue
plan was to keep as many people
employed as possible and for those
who did lose their jobs, President
Obama, with the help of Congress,
extended unemployment benefits for
laid-off workers. Now, eight years
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SOLIDARITY January - February 2017
AP PHOTO
Obama’s Legacy: Helping Working People
President Barack Obama and Vice President Joe Biden left office having
won many battles for working people.
later, the Detroit auto industry
is thriving and UAW members
who work in the auto industry
made significant gains in the 2015
bargaining agreements.
We should also remember what
President Obama has done to
raise wages for working Americans
overall. Under Obama, the
Department of Labor changed contracting regulations which raised
the minimum wage, addressed
wage theft and transparency,
fought against health and safety
hazards, sexual harassment,
and discrimination. Obama also
extended minimum wage and
overtime protections to home
health care workers. Most of these
workers are women of color and
immigrants whose income fell
below the poverty line prior to
Obama’s labor policy reform.
Obama’s National Labor Relations
Board appointments, which
Republicans fought throughout
much of his presidency, have made
it easier for workers to organize by
creating new union election rules.
Obama’s NLRB also recognized the
right of temporary employees and
graduate students to form their
own unions.
President Obama took on
inequality as soon as he took
office. The first bill he signed after
becoming president was the Lilly
Ledbetter Fair Pay Act. This was
an important piece of equal pay
legislation that addresses gender
pay inequities.
Obama’s idealism and his
commitment to helping lift people
out of poverty can be seen in
his efforts to reshape the way
this country thinks about health
care. The Affordable Care Act
provided coverage for low-wage
workers and people who had no
access to medical insurance. The
United States was one of the few
countries in the developed world
that views health care as a
privilege and not a right. With
the passage of the ACA, it is
doubtful that our country or
our politicians will view health
care through this lens again.
In a country as wealthy and
with as many great hospitals
and health care professionals
as ours, no one should have
to go bankrupt or die because
of lack of access to affordable
health care.
We didn’t always agree with
President Obama, especially
on the Trans-Pacific Partnership trade agreement, but
the positives that he brought
to the country far outweigh
the negative. Throughout his
two terms, his idealism that
we can change our country for
the better didn’t falter. His
legacy of supporting workers
and working families and those
in poverty should be noted
as we come to the end of his
eight years in office.
SOLIDARITY
January - February 2017
Vol. 60, No. 1-2
International Union, UAW
President: Dennis Williams
Secretary-Treasurer: Gary Casteel
Vice presidents: Jimmy Settles,
Cindy Estrada, Norwood Jewell
Regional directors: Charles E. Hall,
1; Rory Gamble, 1A; Gerald
Kariem, 1D; Ken Lortz, 2B; Ron
McInroy, 4; Gary Jones, 5; Ray
Curry, 8; Terry Dittes, 9; Julie
Kushner, 9A
Communications Department
Senior Communications Advisor:
Brian Rothenberg
Communications Director:
Sandra Davis
Digital Director:
T. Andrew Huddleston
Solidarity Editor: Vince Piscopo
International Representatives:
Susan Kramer, Denn Pietro, Joan Silvi
& Chris Skelly, members of CWA/The
Newspaper Guild Local 34022.
Clerical staff: Susan Fisher and
Shelly Restivo, members of
OPEIU Local 494.
Solidarity (USPS 0740610) is
published bimonthly by International
Union, UAW, 8000 E. Jefferson Ave.,
Detroit, MI 48214,
(313) 926-5000,
uaw.org. ISSN 0164 856X.
Periodical postage paid at Detroit, MI,
and at additional mailing offices.
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Circulation this issue: 3,517
Labor Art Preserved,
Page 9
4PRO-Member
We Stand for Everyone
5 A Win at Columbia
Academic Workers
Win Representation
6 Apprenticeship Grant
Training for Tomorrow
8 Civil Rights Warrior
Remembering Ernie Dillard
11 Providing Hope
UAW Helps Military Families
14 COVER STORY
Fighting Back:
Hold Congress Accountable
PLUS
12 Union Sportsmen
13 Black Lake
19 Financial Report
TOP PHOTO COURTESY OF THE WALTER P. REUTHER
LIBRARY AT WAYNE STATE UNIVERSITY.
SOLIDARITY January - February 2017
3
When Reuther uttered these words, he was not only
giving a call to action, but was saying something very
significant about who we are: Our union has always stood
for all, not just ourselves.
It sounds like a simple proposition, but at the time, it
was a revolutionary idea. The labor movement grew out
of a need where workers saw that banding together could
lead to improvements and protections at work. It was
often done in secret as few laws protected the activity.
Before the Industrial Revolution, work was divided by
trades where specialized skills bound them together:
bootmakers, wheelwrights, saddlers, masons, etc. It
was a simple enough matter for these trades to want
to strengthen their crafts by maintaining standards
and bargaining with their employer for improvements.
Many were closely guarded and did not let others enter
their trades easily. Sadly, that practice grew to include
discriminating against women and nonwhites.
The advent of mass production introduced the unskilled
worker, someone not necessarily falling into a trade,
but who was becoming more and more essential to the
manufacturing process. At this point, the labor movement
was at a crossroads: include the unskilled workers? Or
continue to raise high walls against the unskilled to
protect the trades?
Many unions chose the latter path, including the AFL
which was a federation of many unions. In the early
part of the 20th century, this was the great debate in
the labor movement. Other unions, which eventually
formed the CIO, felt that all workers should be organized,
regardless of trade, gender or race.
Our UAW was at the forefront in this debate and insisted
strongly that the right to collectively bargain belonged to
every worker. We were never about just helping ourselves
– we saw that all workers were connected and will rise
and fall together. “An injury to one is an injury to all.”
That was a substantial step toward the modern labor
4
SOLIDARITY January - February 2017
movement and it was by no means an easy shift. And
throughout our early history, CIO unions were at odds
with AFL unions on many important public policy fights
of the day such as social reform and immigration. There
was no solidarity between the two groups. The AFL even
worked with the federal government to crush “radical
labor groups” during World War I.
As our union grew, our philosophy matured. Our union
saw that we cannot stand alone: that our fate is tied to
our communities. Elected officials can, in one sweeping
piece of legislation, wipe out all of our gains at the
bargaining table. It was becoming evident that the
concerns of labor were not limited to just those who
carry a union card. After Reuther was elected president
of the UAW in 1946, he said it succinctly: We are “a labor
movement whose philosophy demands that it fight for
the welfare of the public at large.” It was a pragmatic
statement that we need others to stand with us. But it
was also a reflection of our core beliefs that the union
movement is also about improving the lives of all, not just
card-carrying union members.
A greater calling. That is why we are who we are. When
others are in need, UAW members are the first to step
up. We do much of this through the heart of our union
— our standing committees; ramps for the disabled, toys
during the holidays, building homeless shelters, giving
new students book bags and tools to be successful,
mentoring teens, collecting money during tragedies,
water for Flint. The list is as endless as the need. We do
it because we know that we are an integral part of the
living communities around us and supporting others is a
reflection of our values as trade unionists. In 2017, we
should celebrate who we are and the
great works done by UAW members
around the country. It is perhaps
needed as much today as ever.
Higher Education
Graduate workers at Columbia University
in New York celebrated a hard-won victory
Dec. 9 when they voted 1,602 to 623 in
favor of joining the UAW. With momentum
from a landmark National Labor Relations
Board (NRLB) ruling four months earlier that
restored union rights of graduate teaching
and research assistants nationwide, Columbia
graduate workers voted to join the Graduate
Workers of Columbia-United Auto Workers
(GWC-UAW). They also garnered strong
support from members of Congress, other
public officials and community leaders in New
York, and Columbia faculty and students.
“Thousands of RAs and TAs like me have
won a voice to make sure Columbia University
is the best place possible to learn and work,”
said Addison Godel, a teaching assistant in the Columbia University graduate workers get set to head to
Architecture School at Columbia University.
their polling location to vote.
“This marks a major victory for the entire
Columbia community.”
improvements to pay and benefits that strengthen
Olga Brudastova, a Civil Engineering and Engineering
academic quality and student success,” said Julie
Mechanics Department research assistant at Columbia,
Kushner, director of UAW Region 9A. “By standing
says unionizing gives them the respect from the
together, Columbia graduate workers have paved
university they deserve. “We bring in nearly $1 billion
the way for thousands of other research assistants
each year in grants and contracts and teach courses
and teaching assistants to have a recognized voice in
from chemical engineering and applied physics to
America’s higher education and build the institutions
biology and religion, but for too long Ivory Tower
that we need for a more fair, just and equitable
administrators have been calling all the shots,” she said.
country.”
Support for the graduate workers union campaign came
“The UAW has a proud history of helping higher
from public officials from New York and elsewhere,
education employees win respect on the job and
including Sen. Chuck Schumer, Sen. Kirsten Gillibrand,
union rights at public and private universities from
Sen. Bernie Sanders, Sen. Elizabeth Warren, Rep. Jerry
coast to coast,” said UAW President Dennis Williams.
Nadler, New York City Mayor Bill de Blasio, Columbia
“More than 38,500 teaching assistants and research
faculty, other members of Congress and many more.
assistants have formed their unions with the UAW,
Columbia graduate workers have already won numerous
cementing real improvements on the job and for their
improvements to parental leave, wage and child care
families. Today, we celebrate Columbia graduate
polices but are still working on problems such as
workers as they embark on a new journey to build a
increasing teaching loads, late pay, unreliable health
brighter future at one of our nation’s most prestigious
benefits and sexual harassment. Joining the UAW means
universities.”
they now have a voice on the job to protect these hardThe UAW represents more than 38,500 graduate
won improvements and bargain for protections that will
workers at 48 campuses — more than any other U.S.
make their jobs and the university better.
union.
“This is just the beginning of great things to come for
the Columbia community and we’re proud to stand with
Joan Silvi
graduate workers to bargain collectively for important
SOLIDARITY January - February 2017
5
PHOTO: TIFFANY YEE-VO
Columbia University Graduate Workers
Gain a Voice
Training for Tomorrow
$5 Million Grant Will Help UAW Journeymen of the Future
Patrick Mumbower wants his
children to understand that they
are never too old to chart another
course in life. It’s one reason why
the 40-year-old former paint shop
technician at Ford Motor Co.’s
Dearborn Truck Plant in Michigan
is aiming to become a journeyman
tool-and-die maker.
“For me, I’ve got kids and I want
to show them that it’s never too
late to change what you are going
to do,” said Mumbower, a 17-year
member of UAW Local 600.
He’s getting the opportunity
thanks in part to a $5 million,
five-year federal grant that the
UAW Skilled Trades Department
secured in partnership with the
UAW-Labor Employment Training
Corporation (UAW-LETC), a
private, non-profit national labormanagement organization that has
been operating federal, state and
local workforce programs since
1984. More than 1,000 apprentices
in a variety of UAW-represented
facilities will receive apprentice
and pre-apprentice training under
the grant.
“We’re working hard to provide
apprenticeship training for
our members who want the
opportunity to become UAW
journeymen,” said UAW SecretaryTreasurer Gary Casteel, who
Apprentice tool-and-die maker Patrick Mumbower has started the 8,000
hours of training needed to become a UAW journeyman at Ford.
6
SOLIDARITY January - February 2017
directs the union’s Skilled Trades
Department. “This funding will
go a long way toward getting our
members’ skills up so that they
may learn a trade and carry a UAW
journeyman’s card.”
At present, 163 UAW-represented
apprentices representing seven
trades are enrolled in the
program, which covers the first
144 hours of apprenticeship
training. The grant is being used
to fund modifications to existing
apprenticeship programs like those
at the domestic automakers, or
to develop new apprenticeship
programs.
The program is already underway
at UAW-represented Ford facilities,
and is expected to be expanded
to UAW-represented General
Motors and FCA US plants. Other
plants that have either modified
or started new apprenticeship
programs include John Deere
Engine Works in Warterloo, Iowa;
Oakley Industries in Northwood,
Ohio; Carlex Glass in Nashville,
Tennessee; IAC Strassburg in
Strassburg, Virginia; and these
facilities in Michigan: CWC Textron
(Muskegon); Nexteer (Saginaw);
Flex-N-Gate (Warren and Royal
Oak); Huron, Inc. (Lexington);
Bosch Corporation (Kentwood);
and Federal Mogul (Greenville).
The current trades in the
program are electrician, welder,
tool-and-die maker, plumber/
pipefitter, millwright, metal
model maker and machine repair.
Additional trades will be added as
the program expands. One of the
goals of the grant is to provide
apprenticeship opportunities
to under-represented groups,
including women, veterans,
PHOTOS BY VINCE PISCOPO
James Moore has waited a long time to become an apprentice electrician
at Ford. He is comfortable in a classroom setting because he already has
earned an associates degree.
persons of color, and other
underserved populations.
Because of the success of the
program, UAW-LETC and the
International have received
national attention and have been
invited to make a presentation
to the National Governor’s
Association’s Learning Network at
a future workshop.
For Ford apprentices, the
program starts with taking
courses in the Industrial Readiness
Certificate Program (IRCP),
which was won in collective
bargaining in the 2015 contract
with the automaker. Prospective
apprentices must successfully
complete three non-accredited
courses in math, blueprint
reading, and trade readiness
before being accepted into
the apprenticeship program.
Mumbower said he believes that
the IRCP helps determine whether
a prospective apprentice is ready
to devote the time and effort it
takes to study and train to become
a journeyman, which takes a
total of 8,000 hours of training,
including 750 classroom hours.
“They want to invest in
somebody who is committed to
the program,” Mumblower said at
the UAW-Ford Technical Training
Center (TTC) in Lincoln Park,
Michigan.
That investment should begin
inside UAW-represented facilities.
Before the automaker looks
outside to fill an ever-increasing
need for skilled trades workers,
it should develop them from the
ranks of its UAW-represented
workforce, he said.
“It’s a lot like outsourcing jobs,”
Mumblower said. “Buy from within
and promote from within — that’s
the way it should be.”
Prospective apprentices select
their three top choices for trades.
Mumblower selected electrician,
tool-and-die and pipefitter as his
three top choices; he was selected
for the tool-and-die trade and is
quickly acclimating himself to the
differences between the rush of
production work and the different
demands of skilled trades work.
“You’ve got to learn to take your
time,” he said as he demonstrated
a scale model of a press at the
TTC. “Take a step back, take your
time and do it right the first time.
The company wants you to take
the time, do it right and get it
right the first time.”
James Moore, 43, another
Local 600 member, has 23 years
seniority and worked at Dearborn
Engine on the cylinder head
machine team. Moore selected
electrician, machine repair and
tool-and-die as his top three trade
preferences and was pleased to
be selected for the electrical
apprenticeship program. He’s been
waiting a long time to get into the
apprenticeship program. Moore
said workers on the cylinder head
machine team perform a lot of
troubleshooting functions like their
skilled trades counterparts.
“A lot of the terminologies and
troubleshooting mindset I already
had,” he said while demonstrating
how the electro-pneumatic and
the electro-mechanical simulator
works at the TTC. “It’s already
like a little bit of skilled trades in
there.”
And he already has an associate’s
degree, so he’s comfortable
in the classrooms at the TTC.
He’s grateful for the expert
instruction he’s already received
from journeymen involved in his
training.
“They’re all good teachers,”
Moore added.
Health and safety, he said, is an
integral part of the apprenticeship
training. You cannot be
overconfident or employ shortcuts.
“I think once you know why an
accident happens, then you are
better able to attack that,” Moore
said.
Vince Piscopo
SOLIDARITY January - February 2017
7
Remembering a Civil Rights Warrior
Ernie Dillard: A Fighter for Equality and Social Justice
Ernie Dillard Sr.’s sincere belief was that many
politicians scapegoat African-Americans and others
with stereotypical propaganda to win votes.
He made it his purpose in life to reach out to white
people and communicate how many were led to vote
against their own interests by politicians who appeal
to racist sentiments.
“White people in the United States
have been born into, grew up, worked
and lived in a social environment
polluted by anti-black, stereotypical
propaganda, spread by white
politicians, for the sole purpose of
getting the vote of white people,”
Dillard wrote in the 1990s.
Dillard, a longtime UAW activist and
civil rights champion, died in July at
age 101, knowing that his life’s work
was unfinished business. Whatever
setbacks we may have realized recently
in civil rights, younger people can
look to Ernie Dillard’s life and work as
inspiration to continue the fight.
“There’s value in pursuing social
justice for all and perseverance and
education are the payoff, and by
continuing those efforts it makes it a
better place for all of us,” said his son,
Ernest Jr.
Dillard was born in Montgomery, Alabama, in 1915
and moved to Detroit in 1937 in search of work. He
knew discrimination firsthand as a child of the South
and as a man looking for work in the North. He hired
in as an ARC welder at the General Motors’ Fisher
Body Fleetwood plant in Detroit. He joined UAW Local
15 because he recognized the importance of the
labor movement, particularly for African-Americans.
It was there that his labor activism flourished and he
held numerous positions in Local 15 between 1942
and 1964. He was the first African-American to hold
leadership posts at the local.
During those years, he also became active in the
civil rights movement, and, in 1956, as the executive
secretary of the Committee to Communicate Truth to
Mississippi, he published a short pamphlet, “An Open
Letter of Truth to the White People of Mississippi.”
He played prominent roles in the Detroit NAACP,
and, with his wife Jessie, was a key figure in many
8
SOLIDARITY January - February 2017
successful sit-ins to integrate downtown Detroit
restaurants in the late 1940s and 1950s.
UAW President Walter P. Reuther recognized Dillard’s
dual commitment to the labor and civil rights cause
and appointed him to the union’s General Motors’
Department staff in 1964, where he served for three
years. He served as coordinator of the
Community Action Program (CAP) from
1968-69 and 1973-76, assistant director
of the Education Department from
1970-72, and assistant director of the
CAP Department from 1976-79.
Dillard, a graduate of the Labor School
at Wayne State University, retired from
the UAW in 1980, but he hardly retired
from labor and civil rights activism.
He served as president of the Michigan
chapter of the A. Philip Randolph
Institute in the early 1980s. He was an
instructor in leadership development
for the Detroit Association of Black
Organizations, head of the Democratic
Political Education Committee of the
13th Congressional District; and was
executive vice chairman of the 13th
Congressional District. He also was
a prolific writer who penned several
articles and books on race relations.
His energy and enthusiasm kept him going at an age
when many people seek to slow down their activities,
his son said. Where he got that energy, “I don’t
know. We’ve been amazed. He felt he could make a
difference. He always thought he should be a part
of (the labor and civil rights movements) and impact
that in a positive way.”
Dillard was also the chairman of the Crusade to
Communicate the Whole Truth on Race to the White
People of the United States. He was highly critical of
the election campaigns of Ronald Reagan and George
H.W. Bush for appealing to racial stereotypes to win
votes.
A memorial service was held for Dillard last year in
Los Angeles and an endowment in labor studies will
be established in his father’s name at San Francisco
State University School of Business, his son said.
Vince Piscopo
PHOTO COURTESY OF ERNEST DILLARD JR.
Saving Our History
Local 174’s Restored Labor Mural Finds a New Home
After hanging in various Local 174
union halls for three quarters of a
century, the Walter Speck-painted
mural informally known as “Ford
Riot” was water- and tobacco-smoke
damaged, dulled and had significant
tears. It was also homeless as the
Detroit local moved its union hall in
2014 and there was little room for
the 9-foot by 20-foot artwork.
Thanks to a collaboration by the
local with the Wayne State University
Walter P. Reuther Library, this
valuable piece of labor history has
been painstakingly restored and
moved to the library so that union
members and the general public
can look back on key moments in
Michigan’s rich labor history.
While the local is sad to have the
artwork leave its ownership, it is
happy that it has been restored to its
former glory and more people will
get to appreciate it, said Local 174
President John Zimmick.
“This mural has a very special place
in the hearts of UAW members,”
Zimmick said. “Outside of our local
union hall, we could think of only one
other place it could be appropriately
displayed and appreciated: The
Walter Reuther Library.”
The mural showcases several
pivotal moments in the UAW’s
formation, including the 1936-37 Flint
Sit-Down Strike, the 1937 Battle of
the Overpass at Ford Motor Co., as
well as a painted rendering of Local
174’s first contract. Local 174, Walter
Reuther’s home local commissioned
this artwork, and others, to enliven
their union hall and teach members
about their history in the fight for
working people.
The artwork was long thought
to have been created through
the New Deal-era Work Projects
Administration’s (WPA) Federal
Art Project by Speck and Barbara
Wilson, who would later become his
wife. Speck, an influential member
of the Detroit arts community,
headed the WPA’s Detroit Art
project, but it is unclear whether
the UAW fully funded the work or if
WPA funds were provided.
What is clear is that the mural,
despite its size, has been moved
quite a few times. It was created
at the local’s first home at 2730
Maybury Grand St., in Detroit;
in 1954, it was moved when the
building was razed to make room
for a highway and installed at the
new union hall at 6495 West Warren
St. In 2002, the local and artwork
moved to Romulus, Michigan. In
2014, when the local moved back to
Detroit, it could not find office space
to accommodate it. It was donated
to the Reuther Library, but it took
a lot of work to get the artwork
restored so it could be displayed
to the general public. Extensive
repair work at a cost of $60,000
was funded by members and
retirees of the local, the Michigan
Labor History Society, the Michigan
PHOTO COURTESY OF THE WALTER P. REUTHER LIBRARY AT WAYNE STATE UNIVERSITY.
Council for Arts and Cultural Affairs,
the National Endowment for the
Humanities and private individuals.
The project was nominated for
the Reference and User Services
Association’s John Sessions Memorial
Award, which recognizes a library
which has made a significant effort
to work with the labor community
and by doing so brought recognition
to the history and contribution
of the labor movement to the
development of the United States.
“This project was a huge success
on many fronts,” Erik Nordberg,
director of the Reuther Library,
said in his nomination form.
“First and foremost, it preserved
and professionally restored this
important artistic work — which
may be the only surviving piece of
WPA art to depict a named labor
organization. Secondly it moves this
important and engaging piece into
a more publicly accessible location,
where it will be easily viewed and
more likely to educate the public
about labor history.”
Vince Piscopo
SOLIDARITY January - February 2017
9
Lake Orion GM Plant for Autonomous
Chevy Bolts
Driver or No driver, Local 5960 Workers Build Quality
UAW members at Local 5960 in Lake Orion, Michigan,
have been building quality vehicles for drivers for
decades. Now they will build quality vehicles for cars
without drivers.
General Motors announced in December that its
Orion Township assembly plant will build test fleet
Chevrolet Bolt EVs equipped with fully autonomous
technology. The plant currently manufactures the
electric Chevrolet Bolt EV and Sonic.
“GM’s selection of the Lake Orion plant restates its
confidence in the ability of our Local 5960 members
and their dedication to quality,” said UAW Vice
President Cindy Estrada, who directs the union’s
General Motors Department. “It makes perfect sense
to have the same workers who build quality Chevy
Bolts for traditional drivers to make the autonomous
versions.”
The Chevrolet Bolt EV won the prestigious North
American International Auto Show’s Car of the Year
Award in January.
The autonomous technology equipment includes Light
Detection and Ranging (LI-DAR) technology, cameras,
sensors and other hardware designed to ensure system
safety. The test fleet vehicles will be used by GM
engineers for continued testing and validation of GM’s
autonomous technology already underway on public
roads in San Francisco and Scottsdale, Arizona, as well
as part of the Michigan testing fleet.
Since the beginning of 2016, GM has taken significant
steps in its development of autonomous vehicle
technology. The announcement to have our members
build these special vehicles is another step in the
right direction.
Legal Services for Detroit 3 Members Returns
Restoration of Free Legal Help was Part of 2015 Bargaining
Most people know about the hard sacrifices UAW
members made to keep the domestic auto industry
afloat a decade ago.
The cuts were painful but ultimately were successful
in helping to turn the industry around. Now, some of
those things that were sacrificed earlier are coming
back.
The latest is the restoration of legal services for our
members at Ford Motor Co., FCA USA and General
Motors. The Legal Services Plan is expected to be
operational in early 2017 and includes a variety
of legal services outlined in the 2015 bargaining
agreements, including help with wills, trusts,
adoptions, power of attorney, real estate transactions,
deed filings and other document preparation.
10 SOLIDARITY January - February 2017
“I am pleased to announce that the UAW has
finalized the documents with GM, Ford and FCA
that establish the new Legal Services Plan that
was bargained during the most recent round of
negotiations with the Big 3,” UAW President Dennis
Williams said in December. “I would like to commend
Vice President Jimmy Settles, Vice President Cindy
Estrada and Vice President Norwood Jewell along with
their respective national negotiating teams on their
hard work at the bargaining table on behalf of our
well-deserving members.”
Active and retired members as well as surviving
spouses can begin using the service immediately. For
additional information, call (800) 482-7700.
UAW Members Give $13,000 Donation to VFW National Home for Children
The UAW Staff Council,
an organization that
represents the interests of
the union’s International
Representatives, has
long supported the
VFW National Home for
Children in Eaton Rapids,
Michigan.
And the International
has also been a tireless
supporter of the home,
which helps struggling
military members and
their families. The
The UAW Staff Council, in partnership with the International, provided
combined efforts of both
financial support, as well as labor, for the construction of the home on the
have:
VFW’s campus that is named after the late UAW President Stephen P. Yokich.
• Funded the
construction of a home
on the campus, which
was built in 2005 and
more than $150,000 to the VFW home with the golf
named after UAW President Stephen P. Yokich.
outings alone.
Patrice Green, executive director of the VFW
• Provided games and bounce houses for children
National
Home for Children, said the UAW has shown
during the annual UAW Carnival, which gives
“tremendous commitment” to the organization’s
them a respite from Michigan’s long, hard
mission, which is to provide children and families of
winter.
active-duty military, war veterans opportunities for
• Donated bikes for children.
growth and development in a nurturing community,
• Volunteered to help at the Moving Wall display
and to serve as a living memorial to all veterans.
when it visited the National Home in 2010.
Oftentimes, this means providing housing on the
campus in south-central Michigan in addition to many
• Volunteered to clean up the campus after it
other services.
was heavily damaged by a storm over Labor Day
“With the outstanding support of the UAW Staff
2014.
Council and its members, we are able to serve the
But nothing shows more commitment by the UAW
children and families of our veterans when they need
staff and International Executive Board (IEB) than
us,” Green said in a thank you letter to the council.
Staff Council’s annual Black Lake Golf Outing, which
“You help us give hope to struggling military and
this year raised $13,000 to support the home.
veteran families.”
“We are honored and proud to have a continuing
Know a military or veteran family that is struggling?
role in helping the VFW National Home for
Encourage them to call the National Home
Children,” Staff Council President Scott Andrews
Helpline at (800) 313-4200. This free service offers
said.
information, creates connections and gives hope to
“UAW members have always stepped up for
struggling families. It can also be the first step to
veterans and the International staff and the IEB
moving to the National Home.
believe that if there’s a way to ease the burden on
Vince Piscopo
military members and their families, then we will
be there,” Andrews added.
UAW members, through the International
Executive Board and Staff Council, have donated
SOLIDARITY January - February 2017 11
PHOTO: VINCE PISCOPO
Providing Hope to Struggling Military Families
12 SOLIDARITY January - February 2017
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Spring & Fall
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18 Holes with Lodging
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18 Holes with Lodging & Breakfast
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Summer
May 19 - September 17
18 Holes with Lodging
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18 Holes with Lodging & Breakfast
$104 per person
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Onaway, MI 49765
(989) 733-GOLF
www.blacklakegolf.com
SOLIDARITY January - February 2017 13
Our Future, Our Jobs
WE MUST HOLD CONGRESS ACCOUNTABLE
While we cannot predict the future, there is little doubt that 2017 will be a memorable year in
Washington and across the country as newly elected leaders work to address the important issues
facing our country. In our representative democracy, it is important to remember that politicians
work for us. It is not only our right, but our responsibility to hold them accountable and have our
voices heard. We call on them to take action to create better-paying jobs, reduce stark income
inequality, strengthen workers’ rights, enact trade deals that put workers’ interests ahead of
corporations looking to offshore our work, and ensure we have economic security in our golden
years so we can retire with dignity. UAW members and retirees will be watching closely to see how
everyone serving in office on our behalf, from President Trump to mayors and county commissioners,
act to address the critical issues that impact our daily lives and future.
On Jan. 20 Donald J. Trump was sworn in to serve for four years as the 45th President of the United
States. The 115th Congress will go into session with Republicans having control of the presidency
and both the House of Representatives and the Senate. House Speaker Paul Ryan, R-Wisconsin, and
Senate Majority Leader Mitch McConnell, R-Kentucky, are planning on taking full advantage of the
opportunity to send legislation to the president from the same party and look to hit the ground
running with the goal of passing a sweeping right-wing agenda, much of which runs counter to our
core beliefs. This article provides a preview on what to look out for in the first few months of 2017.
Health Care
Congressional Republicans have promised to
dismantle the Affordable Care Act (ACA/Obamacare)
by repealing and “replacing it.” They are intent on
using special budgetary rules called “reconciliation”
to eliminate all spending and taxes stemming from the
law. Republicans are using reconciliation to prevent
Democratic senators from blocking the bill by staging
a filibuster (60 votes are needed to end a filibuster).
Republicans will need only 51 votes to pass the bill
by using specials rules and have 52 seats out of 100
seats in the Senate. Vice President Mike Pence can
break a 50-50 tie if necessary, meaning Republicans
can change the law without any support from
Democrats. Congress cannot make policy changes (like
changing health insurance reforms) through budget
14 SOLIDARITY January - February 2017
reconciliation procedures. This fact provides little
comfort as the law will not be effective if people do
not have resources to pay for care. Insurance pools
will not work if people who can afford care are not
penalized for only seeking medical assistance when
they are sick.
The ACA would likely not be phased out immediately
but rather over the course of a few years. Republicans
argue the extra time will give them the ability to
craft a viable alternative for the tens of millions
who stand to lose care and benefits when the ACA is
gutted. The problem is that providers and insurers
will flee the market without any certainty. Worse yet,
several of the ideas supported by Speaker Ryan and
his conservative caucus are well known and provide
cause for concern. Under his “Better Way” plan, our
health care benefits would be taxed in many instances
SOLIDARITY January - February 2017 15
DENN PIETRO PHOTO
and money would be taken out of our paychecks.
age to 67, directly harming our members in VEBAs.
This would be a step backward, as UAW members
If the retirement age for Medicare is raised people
have made many sacrifices at the bargaining table
will stay in the VEBA longer and all recipients could
in exchange for comprehensive employer-sponsored
be negatively impacted as resources are stretched.
health care. Congress must not erode those gains by
We all pay into Medicare with the promise that it will
subjecting this earned benefit to income tax.
be there when we need it. Raising the retirement
Speaker Ryan’s plan relies on providing tax benefits
age and cutting benefits would be a betrayal by the
for those who can afford to pay out of pocket and
people we elect to serve our interests.
taking away some of the rules for insurance companies
Medicaid could also be slashed and turned into a
under the questionable premise that it would lead
block grant program that does not increase when
to more competition and lower costs for consumers.
demand goes up. Medicaid is often (and incorrectly)
The math doesn’t work and per the Urban Institute,
viewed as a program just for poor people. Medicaid
30 million Americans are at risk of losing their health
assists two-thirds of America’s seniors with nursing
care coverage if the ACA is repealed. We could expect
home care. Also, Medicaid cuts are harmful to all
all our premiums to rise.
state and local public employees as it is an important
When more people are uninsured we all suffer, and
funding source that allows governments to spend their
pay tens of billions extra because the cost of care
resources on public education and policing. Major
goes up when people do not get the preventative
cuts in Medicaid will lead to layoffs and cuts across all
care they need and instead go to an emergency
public programs at the state and local levels. Some
room when a medical crisis strikes. In 2010, before
localities will respond by raising property taxes and
the ACA, almost 50 million Americans were without
taking other detrimental actions like privatizing public
health insurance. At the end of 2015, the number of
resources.
uninsured Americans reached an all-time low of 28.5
We need a health care system that provides quality
million.
care for all and will demand nothing less.
Like any law, the ACA is by no means perfect but
Worker Rights
it has ensured that insurance companies cannot play
games with people’s lives by putting annual and
No issue impacts us more than our right to speak
lifetime dollar limits in place that prevent people from
with a united voice at work and collectively bargain.
getting care when they need it the most. The ACA
Through our union, we can fix issues in the workplace
has provided affordable access to OB/GYN services
— from abusive supervisors to health and safety
for women, pediatric care for children, and primary
problems and unfair scheduling policies. Through
care physicians for many who could not afford to see a
our union, we can bargain for better wages and
doctor in the past. Millions
are getting preventive
care that was previously
unaffordable. The ACA also
removed exclusions for
pre-existing conditions and
allowed parents to keep
their children on their
plan until age 26. These
advances will be put in
harm’s way if funding for
the law is repealed.
That is not all, as
Congress also plans to use
special budget rules to
convert Medicare into a
voucher-like program, in
which seniors would get a
fixed sum of money with
which to choose a health
plan. Republican proposals
have also supported
UAW members from Indiana, shown here meeting with U.S. Sen. Joe Donnelly,
raising the retirement
know how important it is to remain engaged in the political process.
Our Future, Our Jobs
win political change to create greater fairness for
all workers. History has shown that a strong labor
movement is essential for a growing, sustainable
economy and for democracy itself. Plainly spoken,
when unions are weaker, corporate power can
dominate people power at the expense of the middle
class. Our fight for the right to organize and bargain
collectively is really a fight for the future of our
democracy.
Sadly, weak labor laws allow employers to use a
variety of legal and illegal tactics to stop workers
from organizing. The cop on the beat is the National
Labor Relations Board (NLRB), which is charged with
conducting elections for labor union representation
and with investigating and remedying unfair labor
practices. The NLRB is understaffed and needs
more power. Still, it makes a real impact and the
president’s party holds a 3-2 majority on the board.
Under the Obama administration, the NLRB made
important advances for workers by streamlining
elections, allowing higher education workers the
opportunity to join a union, requiring employers
to disclose how they spend resources that impact
elections, and holding employers that abuse
temporary workers responsible for their actions by
giving workers the right to bargain with their true
employer and not just a temp agency.
Will President Trump act to build on these advances?
SPOTLIGHT ON
Committees
To protect ourselves,
we need to get stronger
Join a local union committee to make
your local ready for the work ahead
Now what?
It’s a question many UAW members are asking
themselves after the 2016 election that put many
candidates in office who have records that run counter
to what we believe as union members.
There are public officials, both elected and
appointed, who have plans that can weaken the entire
labor movement and specifically the UAW.
They can only succeed if we do nothing. We’ve never
been a union that accepts that we cannot change
16 SOLIDARITY January - February 2017
In the spring, he will nominate two new members
to the NLRB and his choices will tell us a great deal
about what we can expect in coming years. President
Trump spoke a great deal about the fact workers have
been left behind but did not share comprehensive
views on labor rights. We will be watching closely.
We need to remember that the president is only
part of the equation and we also must pay attention
to Congress since it passes bills that are sent to the
president to become law. The right-wing controlled
House has a clear anti-worker record. In fact, the
incoming chair of the House Committee that works on
labor issues, Chairwoman Virginia Foxx, from North
Carolina, recently told Reuters that organized labor
has “sort of lost its reason for being” because of the
many laws in place to protect workers. This statement
is out of touch with the reality on the ground. It also
fails to recognize that many workplace benefits and
health and safety standards passed into law only
because people had the right to join a union in the
first place. Without unions, these protections could be
rolled back with relative ease.
Her track record and that of her colleagues gives us
little confidence that they will take the actions that
are so badly needed to ensure workers have a voice
on the job.
Unfortunately, we know right wing-backed politicians
are looking to take away hard-fought workplace
minds of elected officials and others, no matter what
party holds power. To do so, we must be stronger and
more united than ever before.
But how?
The way to build the stronger and more united
union that we need to address the upcoming
challenges is through the standing committees of our
600-plus locals. Strong, working committees make
strong locals. Strong locals get things done in their
communities and states. They also support the work
Our Future, Our Jobs
and consumer protections. Commonsense worker
and consumer protections are necessary for a
modern society to function. Regulations protecting
communities, workers and public safety more broadly
are needed to establish and enforce rules that
put societal interests before corporate interests.
Unfortunately, attacks on worker protections and the
regulatory process are part of a broader attack by
the far right against working families at the behest of
billionaires and powerful anti-worker interest groups.
The Obama administration enacted many regulations
to help working families. For example, the
Occupational Safety and Health Administration (OSHA)
finalized safety standards to protect workers from
silica and DOL’s raised the overtime threshold. This
expansion will help thousands of our members (many
who work as postdocs in our universities) and millions
of working families nationwide. Right-wing Republicans
strongly opposed these measures (and dozens of other
regulations) every step of the way and now will work
to eliminate or undermine them in any way possible.
The new Congress will try to change the rules of
the game for workers by a little-known law called
the “Congressional Review Act” (CRA) to kill a wide
array of regulations that are good for workers. Bills
voted on under CRA cannot be filibustered and only
require a majority vote to pass, just like the rules of
reconciliation. Under CRA, Congress not only nullifies
of UAW regional offices and the International Union
when it comes to broader issues.
“The standing committees are where the real work
of the local unions gets done,” said UAW President
Dennis Williams. “No union should rely on a handful
of active members to do all of the heavy lifting.
We need all hands on deck to accomplish the many
tasks that our local unions must complete. That’s
how we build strong unions. Strong unions get things
done in their communities, educate the public about
important issues, look out for the less fortunate and
play an active role in the life of the community. This
participation is vital to make our voices heard not only
by public officials, but to the general public, too.”
According to Article 44 of the UAW Constitution, local
unions are required to have the following standing
committees:
the new rule but forbids an agency from creating new
regulations on the same issue unless Congress passes a
new law granting them permission.
Regulations finalized by the Department of Labor to
protect workers from hazardous materials, measures
aimed at protecting consumers from predatory lending
and holding financial institutions accountable under
the Dodd-Frank law are all prime targets. Nearly every
agency finalized regulations that could be subject to
CRAs. We oppose using CRAs to eliminate good rules
that help working families.
Cabinet Appointees and the
Supreme Court
In our country, the president nominates judges and
picks individuals to head the many federal agencies.
Before taking their positions, President Trump’s
nominees will need to be confirmed by the Senate.
These votes will start early in the session.
President Trump’s nominees have a net worth of over
$14 billion, per Forbes magazine. He is surrounding
himself with a historic level of wealth that is at least
50 times greater than the cabinet that George W. Bush
led. Cabinet heads make a major impact; however,
the argument could be made that his most significant
nominations will be to the Supreme Court.
Cabinet heads have enormous power as they oversee
•
•
•
•
•
•
•
•
•
•
•
Constitution and Bylaws
Union Label
Education
Conservation and Recreation
Community Services
Civil and Human Rights
Citizenship and Legislative
Consumer Affairs
Veterans
Womens
Other committees as deemed necessary
In future issues, Solidarity will detail the work of
these committees and how they fit into the local
union, the community, the labor movement and the
national debate.
SOLIDARITY January - February 2017 17
Our Future, Our Jobs
common to all of us. This has an important impact
on society at large, not just on lawyers and judges.
The decisions of the court have a profound impact
on our right to organize and join a union, a woman’s
right to choose, our right to vote, freedom of speech,
freedom of religion and due process of law.
Three current justices on the court are in their
late 70s or 80s and so the Trump administration
will likely make additional appointments that could
shape the court for decades. President Trump is the
first president in our history to have never served in
elected office or the military before assuming office.
He was an unconventional candidate and will likely be
an unconventional president. It is anyone’s guess what
will happen over the next four years. Our retirement
security programs, trade and immigration policies
could all be revamped. The right-wing Congress
will be more predictable and our vigilance and
participation will be more important than ever.
Source: UAW Legislative Department
DENN PIETRO PHOTO
enforcement of existing laws and make major policy
decisions. President Trump selected Andrew Pudzer
as his pick for Secretary of Labor. Pudzer is chief
executive of the company that operates the fast-food
outlets Hardee’s and Carl’s Jr. He is also an outspoken
critic of the worker protections enacted by the
Obama administration, including expanding overtime.
He also opposes an increase in the minimum wage and
has spoken favorably of using robots instead of people
in the workplace. When the Department of Labor
conducted an investigation of fast-food restaurants,
more than half of his restaurants in the study were in
violation of labor laws.
Supreme Court justices serve for life and decide
on cases that impact everything from our right
to collectively bargain to our freedom of speech,
and ability to vote without being threatened and
intimidated. The Supreme Court is tasked with setting
limits on democratic government by ensuring that
popular majorities cannot pass laws that harm and/
or take undue advantage of unpopular minorities. In
short, it serves to ensure that the changing views of
a majority do not undermine the fundamental values
U.S. Sen. Sherrod Brown, D-Ohio, meets with UAW members from that state at the Capitol.
18 SOLIDARITY January - February 2017
2015 Financial Report
Report to Members on the Union’s Finances
After a long, divisive 2016 election UAW
attacks on issues like pensions, workplace health
members, rightfully so, are focused on how
and safety protections, and even the right to
these next few years will impact their jobs, their
bargain our wages and benefits.
families and their communities.
Becoming organized is the only way Americans
Let’s put the election behind us and now
will ever have a fair shot at reaching the
focus on how we will move forward in building
American Dream. Millions of workers realize
a stronger union and protecting our American
this, from autoworkers and members of Local 42
ideals. Now, more than
in Chattanooga, Tennessee, who
ever, is the time for us to
demand that Volkswagen respect
continue driving meaningful
their rights and immediately begin
conversations about how to
collective bargaining with the
ensure decent-paying jobs,
union as it promised in writing,
safe working conditions,
to academic workers at Columbia
affordable health care, secure
University, who recently won a
retirements and protection from
tough representation election and
discrimination. We can, and
now demand that the university sit
we will, keep forging a path of
down and bargain a first contract.
economic prosperity for working
Certainly, the 2016 election
families and our communities.
could lead to obstacles toward
Eight decades ago,
reaching our goals. But we know
autoworkers were barely treated
from our history that obstacles
like human beings on the plant
can always be overcome through
floor as line speeds, wages,
hard work, organization, tenacity
benefits and safety were all
and the realization that relying on
UAW Secretary-Treasurer
Gary Casteel
determined by management’s
public officials for justice in the
whim. Autoworkers did not wait
workplace only goes so far, even
for the government to help
with officials who have workers’
them. Instead, they stood up for their rights by
best interests at heart.
sitting down on the job. In time, these brave
To win economic and social justice in our
men and women won respect, decent working
workplaces and in our communities we must be
conditions and the chance at a middle-class
the ones who drive the change. That’s how you
life. It is that legacy we protect as we fend off
are the “U” in union.
SOLIDARITY January - February 2017 19
2015 Financial Report
This financial report provides information
about the union’s financial position. Among
the highlights:
• The union’s total fund balance at the end of
2015 was $871,925,892.17.
• Total income in 2015 was $207 million,
while total expenses were $249
million. The difference is $42 million of
disbursements in excess of receipts.
• Overall active and retired membership stood
at 974,368.
• Approximately 3,310 UAW members went
on strike or were locked out in 2015,
and they received over $ 4 million from
the union’s Strike and Defense Fund,
which pays for weekly benefits, medical
assistance, and other expenditures.
The following is a summary from UAW
Secretary-Treasurer Gary Casteel. The full
report is available for examination at all local
unions.
At the direction of the International
Trustees, Clarence H. Johnson, P.C., Certified
Public Accountants, have audited the books
of the International Union, UAW for the year
ended December 31, 2015.
The following report reflects the changes
in the financial position of the International
Union, UAW as of December 31, 2015 in
comparison to our Union’s financial position
as of December 31, 2014.
TOTAL ASSETS
Total Assets were $884,994,200.73
as of December 31, 2015, a decrease of
$38,258,816.18 from the Total Assets of
$923,253,016.91 as of December 31, 2014.
Total assets are primarily comprised of cash
on hand and the cost of various investment
securities. Total assets also include other
less liquid assets such as real and personal
property that are used in the day to day
operations of the union.
TOTAL LIABILITIES
Total Liabilities, consisting of Rebates to
Local Unions and the General Fund, Payroll
Deductions Payable, Monies Due to Affiliated
Organizations and amounts due to the VEBA
were $13,068,308.56 as of December 31,
2015, an increase of $3,035,751.09 from
Total Liabilities of $10,032,557.47 as of
December 31, 2014.
TOTAL FUND BALANCE
The Total Fund Balance of the International
Union, represented by Total Assets less
Total Liabilities, was $871,925,892.17 as
of December 31, 2015. This is a decrease
of $41,294,567.27 from the Union’s Fund
Balance of $913,220,459.44 as of December
31, 2014.
COMPARISON OF RESOURCES, LIABILITIES AND FUND BALANCE
Year Ended December 31
2015 2014
Increase (Decrease)
Cash on Hand and in Banks
$ 4,161,500.79 $ 3,051,024.94 $
1,110,475.85
Investments - At cost 743,414,470.77 778,302,488.93 (34,888,018.16)
Accounts Receivable 10,840,363.86 12,842,145.66 (2,001,781.80)
Mortgages Receivable
1,191,861.59
1,817,487.84
(625,626.25)
Notes Receivable 2,905,985.77
2,592,947.42
313,038.35
Supplies for Resale
457,051.81
458,574.40
(1,522.59)
Furniture, Equipment and Vehicles 2,537,569.99
2,000,864.11
536,705.88
Union Building Corporation 119,485,396.15 122,187,483.61 (2,702,087.46)
TOTAL ASSETS
$884,994,200.73 $ 923,253,016.91
Liabilities 13,068,308.56
FUND BALANCE
$ (38,258,816.18)
10,032,557.47
$ 871,925,892.17 $ 913,220,459.44
3,035,751.09
$ (41,294,567.27)
OVERVIEW OF UAW FINANCIAL
STRUCTURE
The International Union’s financial structure
is based on a system of individual funds. The
UAW Constitution establishes this system
and sets forth the source of income and
objectives of each fund. The SecretaryTreasurer’s office ensures compliance
with the Constitution by segregating all
of the Union’s financial resources into
separate funds and otherwise ensuring that
expenditures are made in accordance with
the Constitution. The Union has a total of 11
separate funds. The combined resources of
these 11 funds are set forth in the figures
below.
A summary of several of the Union’s larger
funds is also included in this report.
20 SOLIDARITY January - February 2017
COMPARISON OF TOTAL FUND BALANCE BY FUND
Year Ended December 31
2015
2014 Increase (Decrease)
General Fund
$ 49,816,095.12 $ 45,050,084.25 $
4,766,010.87
Emergency Operation Fund 32,178,735.85 114,625,783.22 (82,447,047.37)
Strike and Defense Fund 573,926,382.45 532,383,225.36
41,543,157.09
Citizenship Fund
23,067.65
6,252.14
16,815.51
Education Fund
19,877.41
13,010.88
6,866.53
Civil Rights Fund
12,472.79
15,596.15
(3,123.36)
Recreation Fund
828,585.71
802,738.25
25,847.46
Family Education Center Fund
294,194.94
302,658.82
(8,463.88)
Retired Workers Fund 15,540,516.98 14,270,853.86
1,269,663.12
Regional Activities Fund
4,333,741.97
3,674,171.82
659,570.15
Councils Fund 3,842,430.89
5,539,821.74 (1,697,390.85)
TOTALS
$ 680,816,101.76 $716,684,196.49 $(35,868,094.73)
2015 Financial Report
GENERAL FUND ASSETS
General Fund Assets, which include portions
of Cash, Investments, Accounts Receivable,
Mortgage and Notes Receivable, Inventories
for Resale, Furniture, Equipment, Vehicles,
and the Union Building Corporation, totaled
$187,314,861.32 as of December 31, 2015.
GENERAL FUND LIABILITIES
General Fund Liabilities amounted to
$5,090,557.11 as of December 31, 2015.
These liabilities consist of payments Due to
VEBA totaling $1,416,682.51, Payroll Taxes
Payable to be forwarded in the amount of
$545,301.37, Accounts Payable to Troubled
Workers totaling $521,805.09, and Accounts
Payable to Affiliated Organizations at
$2,606,768.14.
GENERAL FUND BALANCE
The General Fund Balance, which is
represented by General Fund Resources
less General Fund Liabilities, amounted to
$182,224,304.21 as of December 31, 2015.
Of this amount, $49,816,095.12 of the
General Fund balance represents cash and
investments, which are available to meet the
day-to-day expenses of the Fund. General
Fund Cash and Cash Equivalents increased by
$4,766,010.87 from December 31, 2014.
The remaining balance of the General
Fund, $132,408,209.09 represents the cost
of assets that cannot be readily converted
to cash such as real and personal property,
inventory and mortgages due from local
unions.
UNION BUILDING CORPORATION
The Union Building Corporation is the
holding corporation for all properties owned
by the International Union, UAW. During 2015,
$300,447.95 was spent on the acquisition,
development and capital improvement of
UAW-owned properties. In addition, property
valued at $58,000.00 was transferred to UBC
from closed local unions. UBC disposed of
property with a book value of $3,213,334.24
during 2015.
ORGANIZATIONAL EXPENDITURES
Organizational Expenditures amounted
to $13,302,156.96 during 2015. Our Union
continues to work on bargaining gains across
all sectors of UAW represented workplaces:
Aerospace, Higher Education, Parts &
Suppliers, Health Care, Technical Office &
Professional, Insurance, Ag-Imp, Heavy Truck,
Gaming, Transnational, Big 3, and Public
Sector.
FUND TRANSFERS
Periodically, it becomes necessary to
transfer funds from the General Fund to
other Funds in order to eliminate deficits and
establish working balances. During 2015,
$5,220,000.00 was transferred from the
General Fund to the Citizenship Fund, and the
General Fund also transferred $2,420,000.00
to the Education Fund, $535,000.00 to the
Civil and Human Rights Fund and $80,768.79
was transferred to the Regional Activities
Fund.
REALLOCATION OF PER CAPITA DUES
to the International Union UAW Strike and
Defense Fund.
Private and Public Sector:
A portion of each member’s monthly dues
allocated to the General Fund is distributed
among several other activities/funds on a
monthly basis. Each amount is expended only
for the designated programs or activities. The
allocation is as follows:
Communications
$0.05
Civil and Human Rights Fund 0.01
Education Fund 0.03
Recreation Fund 0.01
Citizenship Fund 0.05
Retired Workers Fund 0.01
Of the total dues that Local Unions collect
each month from members, a portion is
remitted to the International SecretaryTreasurer. The dues collected will be allocated
between the Local Union and the International
Union UAW General Fund and the Strike and
Defense Fund as follows:
The remaining one half (.05) hour of dues
In addition, both the Local Unions and the
General Fund are eligible for an additional
rebate from the Strike and Defense Fund
referred to as the “13th check”.
Each month beginning July 1, 2006, the
amount of actual strike assistance benefits
(weekly benefits and medical costs) are
compared to 5% of total dues. To the extent
that the actual strike
assistance benefits are
PRIVATE SECTOR DUES ALLOCATION
less than 5% of dues for
The allocation of the first two hours (or 1.15%) will be allocated as
the month, the excess
set forth in the following table:
is accumulated for the
Dues
Dues Allocation
13th check rebate. In any
Allocation
Rebates* After Rebates
month which the actual
Strike & Defense Fund
30%
(25.00%)
5.00%
strike assistance benefits
exceed the 5% of dues,
General Fund
32%
12.65%
44.65%
no additional amount will
Local Unions
38%
12.35%
50.35%
be accumulated. In April
Total Dues
100%
0.00%
100.00%
of the following calendar
year, the accumulated
total 13th check rebate
income (or .29%) shall be allocated entirely
from the preceding year is rebated to Local
to the International Union-UAW Strike and
Unions and the General Fund in the same
Defense Fund.
proportion as dues allocation after rebates.
*Both Local Unions and the General Fund are
eligible for a dues rebate from the Strike and
Dues Allocation
13th Check
Defense Fund. If the Strike and Defense Fund
After Rebate Rebate Allocation
balance falls below $500 million, all rebates
are suspended until the fund balance exceeds
General Fund 44.65%
47%
$550 million.
Local Unions 50.35%
53%
Public Sector:
Public sector members generally do not have
the right to strike. The allocation of the first
two hours (or .832%) will be allocated 45.7%
to the International Union, UAW General Fund
and 53.3% to the Local Union.
The remaining one half (.05) hour of dues
income (or .263%) shall be allocated entirely
Total 95.00%100%
(a) 53% = (50.35 / 95.00), 47% = (44.65 / 95.00)
SOLIDARITY January - February 2017 21
2015 Financial Report
STRIKE AND DEFENSE FUND
Strike and Defense Fund Total Resources
amounted to $632,627,963.77 as of December
31, 2015.
Income to the Strike and Defense Fund
amounted to $66,171,474.84 during 2015. A
breakdown of income by sources follows:
Per Capita Taxes
$ 66,306,839.59
Earnings on Investments $
Donations
(143,288.24)
RETIRED WORKERS FUND
$2,323.49
Transfer In from Regional
Activities Fund
TOTAL
strike, a series of strikes, or other events
posing a serious threat to the economic
viability of the International Union.
The International Union, UAW, through
action taken at the 36th Constitutional
Convention in June 2014, has been
authorized to transfer eighty-five million
dollars ($85 million) from the Emergency
Operations Fund to the New VEBA Trust. The
transfer was made on December 17, 2015.
5,600.00
$66,171,474.84
Expenditures of the Strike and Defense Fund
for 2015 amounted to $23,768,499.19.
A breakdown of these expenditures by Region
is contained in this report. During 2015, strike
assistance was provided to 3,310 members of
our Union.
The following is a comparison of the Strike
and Defense Fund Net Resources as of
December 31, 2015 and the preceding yearend.
This Fund had a balance of $15,540,516.98
(which includes the Regions’ 25 percent
share of each retiree’s dues dollar) as of
December 31, 2015. Local Unions received
$3,057,975.90 for their retiree chapters.
There were approximately 572,475 retired
members as of December 31, 2015.
FAMILY EDUCATION CENTER (FEC)
FUND
When it was originally established in 1968,
the FEC Fund included the Family Education
Center Department, which formulates and
implements programs at Family Education
Centers for the education and training of
UAW members and their families through
COMPARISON OF STRIKE AND DEFENSE FUND NET RESOURCES
Year Ended December 31
2015
2014 Increase (Decrease)
Cash and Investments
$ 573,926,382.45$ 532,383,225.36 $ 41,543,157.09
Mortgages Receivable
227,326.73
810,675.65
(583,348.92)
Other Investments
66,452,006.04 64,369,231.64 2,082,774.40
Gross Resources
$ 640,605,715.22$ 597,563,132.65 $ 43,042,582.57
*Liabilities
7,977,751.45 7,338,144.53 639,606.92
Net Resources
$ 632,627,963.77$ 590,224,988.12 $ 42,402,975.65
*Loan Payable — 13th check due to Local Unions and the General Fund
EMERGENCY OPERATIONS FUND
This fund had a balance of $32,178,735.85 as
of December 31, 2015.
By actions of the 33rd Constitutional
Convention in June 2002, the Emergency
Operations Fund was established. The assets
of the Emergency Operations Fund, including
accrued interest and earnings on investments,
shall be available to finance operations of the
International Union in the event Operating Fund
resources are insufficient to sustain operations
due to the effects of a protracted or expensive
22 SOLIDARITY January - February 2017
participation in the Family Education
Scholarship Program.
Over the years, the structure and funding
of the Family Education Center in Black
Lake and the Pat Greathouse Center in
Region 4 have changed. The FEC no longer
has a regular source of income and many
of the expenses associated with the Family
Education Centers have been charged to
other Funds.
Effective January 1, 2003, the UAW
established Union Building Education, Inc.
(UBE), a 100 percent-owned subsidiary
corporation of the International Union,
UAW, for the purpose of operating the
Family Education Center in Black Lake.
UBE collects income and pays expenses
associated with the programs at Black
Lake. The International Executive Board
is authorized to transfer money from
the General Fund, as necessary, to help
supplement the cost of education activities
at the Family Education Center.
As of December 31, 2015, the Family
Education Center Fund had a balance of
$294,194.94.
DUES
The dues structure has resulted in average
monthly dues of $51.65 for 2015, compared
with $41.88 for 2014.
MEMBERSHIP
The average dues-paying membership for
calendar year 2015 was 401,893 compared
to 400,954 in 2014, an increase of 939
members.
Initiation fees were received on 45,268
members during 2015 compared to 39,833
in 2014, an increase of 5,435.
We had approximately 572,475 retired
members as of December 31, 2015.
In summary, the UAW’s financial condition
remains strong. We continue to make
difficult financial decisions in response
to the challenges presented during these
extremely difficult times for our members
and the organization.
I wish to thank my fellow Officers, Board
Members, Staff Members and Office
Employees for their cooperation and
commitment to the financial stewardship of
this great union.
Respectfully submitted
Gary Casteel
International Secretary-Treasurer
2015 Financial Report
UAW V-CAP
RECONCILIATION OF CASH
BALANCE - DECEMBER 31, 2014
$
9,466,547.56
INCOME - 2015
6,246,271.91
$15,712,819.47
DISBURSEMENTS - 2015
BALANCE - DECEMBER 31, 2015
2,141,058.43
$ 13,571,761.04
UAW FINANCES AT A GLANCE
INCOME AND EXPENDITURES FOR 2015:
Receipts
$ 207,303,944.24
Disbursements 248,716,680.84
Excess Receipts Over Disbursements $ (41,412,736.60)
TOTAL ASSETS AS OF DECEMBER 31, 2015:
Cash on Hand and in Banks
$ 4,161,500.79
Investments - At Cost 743,414,470.77
Accounts Receivable 10,840,363.86
Mortgages Receivable
1,191,861.59
Notes Receivable
2,905,985.77
Inventories - Resale Items
457,051.81
Furniture, Equipment & Vehicles
2,537,569.99
Union Building Corporation 119,485,396.15
TOTAL ASSETS
$ 884,994,200.73
TOTAL LIABILITIES AS OF DECEMBER 31, 2015:
Accounts Payable to Affiliated Organizations
$
Accounts Payable - Troubled Workers General Fund Rebates VEBA Payroll Taxes Payable Loans Payable to Local Unions
2,606,768.14
521,805.09
3,749,541.33
1,416,682.51
545,301.37
4,228,210.12
TOTAL LIABILITIES
$ 13,068,308.56
TOTAL FUND BALANCE AS OF
DECEMBER 31, 2015
$871,925,892.17
2015 STRIKE AND DEFENSE FUND
EXPENDITURES BY REGION
Region Location
Amount
1
East Side of Detroit, Northeastern Michigan, and Canada
$
236.25
1D
Flint/Lansing/Jackson and Western/Upper Michigan
5,897.95
2B
Ohio and Indiana
194,411.20
4
North Central United States 3,735,415.17
5
West/Southwest United States
$191,971.82
8
Southeastern United States
517.56
9A
New England States, Long Island and Puerto Rico
98,529.39
Other Expenditures 19,541,519.85
GRAND TOTAL
YEAR ENDED DEC. 31, 2015
CASH BALANCE - December 31, 2015 $
3,051,024.94
ADD-RECEIPTS:
General Fund
$ 124,156,676.77
Emergency Operation Fund 2,552,952.63
Strike and Defense Fund
66,165,874.84
Citizenship Fund
336,301.20
Education Fund 144,660.72
Civil Rights Fund 176,550.24
Recreation Fund
56,921.84
Retired Workers’ Fund 9,641,907.54
Family Education Center Fund Regional Activities Fund 2,855,013.15
Councils Fund
1,217,085.31
Sub Total, Funds Receipts
$ 207,303,944.24
Excess of Sales over Purchases of
Investment Securities
$
34,895,796.18
Asset Receipts
$
7,627,416.27
Total Receipts
$ 249,827,156.69
Together
$252,878,181.63
LESS - DISBURSEMENTS:
General Fund
$ 201,245,033.18
Strike and Defense Fund
23,768,499.19
Citizenship Fund
5,539,485.69
Education Fund
2,557,794.19
Civil Rights Fund
714,673.60
Recreation Fund 31,074.38
Retired Workers’ Fund 8,372,244.42
Family Education Center Fund
8,463.88
Regional Activities Fund
3,564,936.15
Councils Fund
2,914,476.16
Sub Total, Funds Disbursements
$ 248,716,680.84
Total Disbursements
$ 248,716,680.84
CASH BALANCE - December 31, 2015
$
4,161,500.79
$ 23,768,499.19
SOLIDARITY January - February 2017 23
Independent Auditors’ Report
Opinion
June 13, 2016
U.A.W. Board of Trustees:
We have audited the accompanying financial statements of the
International Union, United Automobile, Aerospace & Agricultural
Implement Workers of America-U.A.W., which comprise the statement
of assets, liabilities and fund balances-modified cash basis as of
December 31, 2015, and the related statement of cash receipts,
disbursements and changes in fund balances-modified cash basis for
the six months ended June 30, 2015, six months ended December 31,
2015, year ended December 31, 2015, and the related notes to the
financial statements. We audited the financial statements of UBG, Inc.,
and UBE, Inc., wholly owned subsidiaries, the investment in which, as
described in the notes to the financial statements, are accounted for by
the equity method of accounting. The investments in UBG, Inc. and UBE,
Inc. as of December 31, 2015 are $84,686.44 and zero respectively.
The equity in their net losses are included in net disbursements over
receipts for the six months ended June 30, 2015, the six months ended
December 31, 2015, and the year ended December 31, 2015.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with the modified cash
basis of accounting as described in the notes; this includes determining
that the modified cash basis of accounting is an acceptable basis
for the preparation of the financial statements in the circumstances.
Management is also responsible for the design, implementation,
and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
In our opinion, except for the effects of the matter discussed in
the following paragraph, the financial statements referred to above
present fairly, in all material respects, the assets, liabilities and fund
balances of the International Union, United Automobile, Aerospace &
Agricultural Implement Workers of America-U.A.W. as of December
31, 2015, and its cash receipts, disbursements and the changes in
fund balances for the six months ended June 30, 2015, six months
ended December 31, 2015, and the year ended December 31, 2015 in
accordance with the modified cash basis of accounting.
Emphasis of Matter
All property held in the Union Building Corporation is stated at
cost and most have not been depreciated. In our opinion, these
properties should be depreciated over their useful lives to conform
with U.S. generally accepted accounting principles. The effects of this
departure from U.S. generally accepted accounting principles on the
accompanying financial statements are not reasonably determined.
Basis of Accounting
The Organization prepares its financial statements on the modified
cash basis of accounting, which is a basis of accounting other than
accounting principles generally accepted in the United States of
America. Consequently, some revenues and the related assets are
recognized when received, rather than when earned, and some
expenditures and liabilities are recognized when paid, rather than
when the obligation is incurred. Our opinion is not modified with
respect to that matter.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the
overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
24 SOLIDARITY January - February 2017
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors’ Report
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES AS OF DECEMBER 31, 2015
LIABILITIES AND FUND BALANCES
ASSETS
CURRENT LIABILITIES: CURRENT ASSETS:
Cash
$ 4,161,500.79 Investment Securities
676,654,600.97
TOTAL CURRENT ASSETS $ 680,816,101.76
OTHER ASSETS:
ACCOUNTS RECEIVABLE:
Miscellaneous Advances
$ 6,930,822.53 Rotating Funds
160,000.00
Due from Strike & Defense Fund 3,749,541.33
$ 10,840,363.86
MORTGAGES RECEIVABLE:
Other
$ 1,191,861.59
1,191,861.59
NOTES RECEIVABLE
2,905,985.77
INVENTORIES:
Supplies for Resale
457,051.81
OTHER INVESTMENTS:
Alternate Investments
$ 66,452,006.04 Stocks
307,863.76
66,759,869.80
TOTAL OTHER ASSETS
82,155,132.83
FIXED ASSETS:
Furniture and Equipment
$ 42,017,661.28 Vehicles and Equipment 1,978,694.37
$ 43,996,355.65 Less-Reserve for Depreciation 41,458,785.66
$ 2,537,569.99 PROPERTIES:
Union Building Corporation $121,654,327.72 Less-Reserve for Depreciation 2,168,931.57
Accounts Payable: Affiliated Organizations $ 2,606,768.14
VEBA 1,416,682.51
Troubled Workers 521,805.09
General Fund Rebates 3,749,541.33
Local Union Rebates 4,228,210.12
Payroll Taxes Payable 545,301.37
TOTAL CURRENT LIABILITIES
$ 13,068,308.56
FUND BALANCES: Allocated to Current Assets:
General Fund
$49,816,095.12
Emergency Operations Fund 32,178,735.85
Strike and Defense Fund 573,926,382.45
Citizenship Fund 23,067.65
Education Fund 19,877.41
Civil & Human Rights Fund 12,472.79
Recreation Fund 828,585.71
Retired Workers’ Fund 15,540,516.98
Family Education Center 294,194.94
Regional Activities Fund 4,333,741.97
Councils Fund 3,842,430.89
$ 680,816,101.76 Allocated to Other Assets: General Fund
$132,408,209.09
Strike and Defense Fund 58,701,581.32
191,109,790.41
TOTAL FUND BALANCES 871,925,892.17
TOTAL LIABILITIES AND FUND BALANCES$ 884,994,200.73
119,485,396.15
TOTAL FIXED ASSETS 122,022,966.14
TOTAL ASSETS $884,994,200.73
SOLIDARITY January - February 2017 25
Independent Auditors’ Report
SUMMARY OF FUND BALANCES FOR YEAR ENDED DECEMBER 31, 2015
GENERAL FUND: Balance-Beginning
CITIZENSHIP FUND: $ 45,050,084.25
Add-Receipts 124,156,676.77
Asset Receipts
6,404,460.43
Transfer of Funds from
Emergency Operations
Fund 85,000,000.00
$260,611,221.45
Less-Disbursements 201,245,033.18
Transfer of Funds to
Citizenship Fund Balance-Beginning $
6,252.14
Add-Receipts 336,301.20
Transfer of Funds from
General Fund Balance-Ending
$
5,220,000.00
5,539,485.69
23,067.65
EDUCATION FUND: 5,220,000.00
Balance-Beginning $
13,010.88
Education Fund 2,420,000.00
Add-Receipts 144,660.72
Civil Rights Fund 535,000.00
Regional Activities Fund 1,375,093.15
Transfer of Funds from
General Fund 2,420,000.00
Balance-Ending
$ 49,816,095.12
$ 2,577,671.60
Less-Disbursements EMERGENCY OPERATIONS FUND: Balance-Ending
Balance-Beginning
$ 114,625,783.22
Add-Receipts
2,552,952.63
$117,178,735.85
$
2,557,794.19
19,877.41
CIVIL AND HUMAN RIGHTS FUND: $
15,596.15
-
Add-Receipts 176,550.24
Transfer of Funds to
General Fund 85,000,000.00
Transfer of Funds from
General Fund 535,000.00
Less-Disbursements Balance-Ending $ 32,178,735.85
Balance-Beginning $
Less-Disbursements STRIKE AND DEFENSE FUND:
Balance-Ending
Balance-Beginning
$532,383,225.36
Add-Receipts 66,165,874.84
Transfer of Funds from
Regional Activities Fund
$598,554,700.20
Asset Disbursements
Balance-Ending
859,818.56
714,673.60
12,472.79
RECREATION FUND: $
Add-Receipts Less-Disbursements 23,768,499.19
727,146.39
Balance-Beginning 5,600.00
$
$
Less-Disbursements Balance-Ending
$
802,738.25
56,921.84
859,660.09
31,074.38
828,585.71
$573,926,382.45
RETIRED WORKERS’ FUND: Balance-Beginning $ 14,270,853.86
Add-Receipts Balance-Ending 26 SOLIDARITY January - February 2017
9,641,907.54
$ 23,912,761.40
Less-Disbursements $
Less-Disbursements $ 5,562,553.34
Less-Disbursements FAMILY EDUCATION CENTER FUND: Balance-Beginning $
302,658.82
8,372,244.42
$ 15,540,516.98
Balance-Ending $
302,658.82
8,463.88
294,194.94
REGIONAL ACTIVITIES FUND: Balance-Beginning $ 3,674,171.82
Add-Receipts 2,855,013.15
Transfer of Funds from
General Fund 1,375,093.15
$ 7,904,278.12
Less-Disbursements 3,564,936.15
Transfer of Funds to
Strike and Defense Fund
5,600.00
Balance-Ending $
4,333,741.97
COUNCILS FUND: Balance-Beginning $
5,539,821.74
Add-Receipts 1,217,085.31
$ 6,756,907.05
Less-Disbursements 2,914,476.16
Balance-Ending 3,842,430.89
$
GRAND TOTAL FUND
BALANCES
$680,816,101.76
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