UAW’s Strike Fund Ruse

uaw-opensecrets-2012-cycleUAW’s “strike fund dues increase” was not for the strike fund as United Auto Worker union bosses had advertised  — it was to keep paying the union’s bloated payroll and other “operating” costs.  But, what got the UAW bosses in this hole?  Could it possibly be the fact that they poured $20,774,891 into the 2012 Election Cycle plus almost a year of staff time primarily working on Democrat reelections?  Add to the tremendous use of forced-dues to elect Democrats, UAW’s failed three-year Southern Organizing strategy, its bloated union payrolls, and the UAW’s generous perks for union officers and staff.

During the 2012 elections cycle (2011-2012), UAW reporting spending $37.6 million on political activities which include lobbying.

It’s not hard to see who are the focus of UAW bosses — it is not the rank-and-file members.

From the UAW International’s 2012 Financial self-reporting to the Labor Department (for the complete 442 page report click here):

  • UAW bosses loaned another $5.1 million to its Black Lake resort and golf club increasing the outstanding loan amount to $50.8 million on an asset that may be worth half that amount.
  • For the 18 UAW officers, UAW spent $2.7 million in dues on salaries and other disbursements not including benefits.
  • For the UAW staff, UAW spent $77.8 million in dues on salaries and other disbursements not including benefits.
  • In addition to salaries and wages, UAW bosses spent $59.3 million in dues on benefits.

With spending like this, is it any wonder that the real motive for the dues increase is not just to replenish a UAW Boss plundered Strike Fund?

UAW Members Upset Dues Increased, But Not Why You Think

The United Auto Workers sold its members on a dues increase under the guise that additional money was needed to replenish its strike fund after the fund loaned money to pay for the union’s operating expenses. After all, the UAW needs a fat strike fund heading into labor negotiations with the Big Three in 2015. However, once the members approved the increase they learned that more than half of the additional $45 million will be put back into the unions’ general fund, not strike fund.

According to, “With approving the dues increase, which was “Article 16” of the [annual UAW] convention, members also voted to transferring $85 million from the ‘Emergency Operations Fund’ to a newly created VEBA trust; transferring $25 million of the Strike Fund to the ‘International Union General Fund’ in June; allowing leaders to use up to $60 million from the Strike Fund over the next four years to support major organizing drives or other initiatives intended to increase UAW membership; and other similar financial measures related to dues.”

Armed with this information, many UAW members are calling for a rescission of their approval for the dues increase. If members can’t trust their own union, how are companies supposed to trust unions?