Report to members on the union’s finances

UAW Secretary-Treasurer Elizabeth Bunn
Photo: GEORGE WALDMAN

The current recession, instigated by Wall Street bankers and titans of the financial services industry, has victimized Main Street and shaken the very foundation of the American economy.

The staggering loss of 7.3 million jobs since the beginning of the recession in December 2007 translates into a national unemployment rate over 10 percent - the highest in 26 years. Including discouraged workers who have given up trying to find employment and those who have been forced to accept part-time jobs or fewer hours, the 17 percent real unemployment rate is staggering.

Tremendous job loss has resulted in a record number of home foreclosures and individual bankruptcies. In 2008 alone, approximately one in 54 homeowners received a foreclosure notice, and more than 850,000 families lost their homes. In addition, there were nearly 700,000 personal bankruptcies in just the first six months of 2009.

It’s hard to imagine the suffering that would have occurred had the Obama administration ignored the recession’s impact on the domestic automobile industry, as some had advocated.

As noted in this financial report, the compound impact of the recession, job loss and accompanying membership loss challenged UAW finances in 2008. While 2009 has brought modest relief, we continue to make difficult but necessary decisions to ensure that we maintain a solid financial structure without compromising our commitment to the membership.

As a UAW member, your monthly dues investment of two hours’ pay not only earns improved pay and working conditions, it secures a foundation for the union to continue advocating on behalf of working families.

As we look forward to the future, we will continue to advocate and mobilize for national health care reform and passage of the Employee Free Choice Act. After decades of work, both are within reach. And with passage, our labor movement will be poised to grow in record numbers and to secure justice for the millions of American workers who want a union but have been prevented from being able to secure one.

This financial report provides information about the union’s financial position. Among the highlights:

• The union’s total fund balance at the end of 2008 was $1,168,709,896.89.

•Total income in 2008 was $204 million, while total expenses were $264 million. The difference, $60 million of disbursements in excess of receipts, was due primarily to a significant decline in investment earnings as a result of the near collapse of financial markets, a large increase in the number of members eligible for strike benefits, and lower per capita taxes due to declining membership.

•Approximately 50 percent of all dues collected since June of 2006 went to local unions, 5 percent went to the Strike Assistance Fund, and 45 percent went to the International Union’s General Fund.

•Overall active and retired membership stood at 1,049,388.

•During 2008, our Union won 86 recognition elections, accounting for 8,987 potential new members.

•Approximately 14,880 UAW members went on strike or were locked out in 2008, and they received over $43.3 million from the union’s Strike Assistance Fund, which pays for weekly benefits, medical assistance, and other expenditures.

A link to view/download the summary from UAW Secretary-Treasurer Elizabeth Bun is povided on the left. The full report is available for examination at all local unions.