An Agency Fee Payer may object to fees being used for
purposes unrelated to collective bargaining. However, he or she must comply with the
procedures established in Article XXV of the Grand Lodge Constitution and By-Laws, as
follows: Article XXV
Statement Of Law and Procedures Concerning Fee Objections
Sec. 1. An individual residing in the United States who is represented by the
Brotherhood, and who has elected to become an agency fee payer may become an objector to
expenditures not related to collective bargaining, contract administration, or other
chargeable expenditures. An agency fee payer who elects to become an objector through
these procedures, shall pay a reduced fee calculated in accordance with Section 5 of
Article XXV.
Sec. 2. To become an objector, an employe represented by the Brotherhood shall notify
the Grand Lodge Secretary-Treasurer of his or her objection in a separate envelope by
certified mail postmarked during the month of April each year. An employee who desires to
object but was unable to make a timely objection because he or she was not subject to a
Union Shop Agreement in April must make an objection within thirty (30) days after
becoming subject to Union Shop obligations and receiving notice of these procedures. The
mailing cost shall be reimbursed. The objection shall be signed and shall contain the
objector's current home address and Subordinate Lodge number, if known. The objector shall
keep the Brotherhood informed of any change in address. Objections may only be made by
individual employes; no petition objections will be honored. An employee who wishes to
continue an objection in a subsequent twelve (12) month period shall provide notice of his
or her objection each April in the same manner.
Sec. 3. The following categories of expenditure are chargeable to the extent permitted
by law:
a. All expenses concerning the negotiation of agreements, practices and working
conditions;
b. All expenses concerning the administration of agreements, practices and working
conditions, including grievance handling, all activities related to arbitration, and
discussion with employees in the bargaining unit or employer representatives regarding
working conditions, benefits and contract rights;
c. Convention expenses and other normal union internal governance and management
expenses;
d. Social activities and union business meeting expenses;
e. Publication expenses to the extent coverage is related to chargeable activities;
f. Litigation expenses related to contract administration, collective bargaining rights
and internal governance;
g. Expenses for legislative and administrative agency activities closely related to the
negotiation or administration of contracts and working conditions;
h. All expenses for the education and training of members, Officers and staff intended
to prepare the participants to better perform chargeable activities;
i. All strike fund expenditures and other costs of group cohesion and economic action,
e.g., demonstrations, general strike activity, informational picketing and the like;
j. A proportional portion of all overhead and administrative expenses.
Sec. 4. Each March, the Brotherhood shall publish these policies and procedures in the
Journal to provide notice to employees represented by the Brotherhood of their right to
object and the procedures for objecting. The Brotherhood shall also send a copy of these
policies and procedures to each person who objected the previous year to inform the person
of his or her right to renew the objection for the current year.
Sec. 5. The Brotherhood shall retain a neutral auditor to perform an independent audit
of the records of the Brotherhood and to submit an annual report for the purpose of
determining the percentage of expenditures that fall within the categories specified in
Section 3. The amount of the expenditures during the previous fiscal year that fall within
Section 3 shall be the basis for calculating the reduced dues or fees and assessments that
must be paid by the objector for the current fiscal year. For each objector, an amount
shall be placed in an interest-bearing escrow account equal to the advance reduction
provided the objector, as calculated by the neutral auditor, or such other amount as the
neutral auditor may recommend to assure that the escrow amounts adequately cover any
necessary adjustments in the calculation of chargeable activities. The auditor shall also
verify the existence and the amounts of money in any escrow accounts.
Sec. 6. The neutral auditor shall complete the report for the current fiscal year no
later than August 31. This report shall include an analysis of the major categories of
union expenses attributable to chargeable and non-chargeable activities. A copy of the
neutral auditor's report shall be sent to each person who made an objection in the current
and previous year.
Sec. 7. Each person entitled to receive the audit report may challenge the legal and
arithmetic bases of the calculations in the neutral auditor's report by filing an appeal
with the Grand Lodge Secretary-Treasurer. Such appeal must be made by sending a signed
letter to the Secretary-Treasurer postmarked no later than thirty (30) days after the date
that the audit report was mailed.
Sec. 8. All appeals received by the union within the time limits specified above shall
be determined by expeditious referral to an impartial arbitrator chosen through the rules
of the American Arbitration Association (AAA) for the impartial determination of union
fees. The Brotherhood shall notify the AAA that challenges to the calculation of its fees
and assessments have been received from one or more persons and include the names and
addresses of the persons who filed the appeals and who must be notified of the
proceedings. Thereupon, in accordance with its rules, the AAA will appoint an arbitrator
and notify the Brotherhood and the challenger. In addition, the following rules shall
apply:
a. All appeals shall be consolidated and heard as soon as the AAA can schedule the
arbitration and shall be at a location selected by the AAA to be the most convenient for
those involved in the proceeding.
b. Each party to the arbitration shall bear its or their own costs. The challengers
shall have the option of paying a pro rata portion of the arbitrator's fees and expenses.
The balance of such fees and expenses shall be paid by the Brotherhood.
c. Challengers may, at their expense, be represented by counsel or other representative
of their choice. Challengers need not appear at the hearing and shall be permitted to file
written statements with the arbitrator instead of appearing. Such statements shall be
filed no later than the beginning of the hearing before the arbitrator. Post-hearing
statements may be filed in accordance with the provisions of Section 8(g).
d. Fourteen (14) days prior to the start of the arbitration, challengers shall be
provided with copies of all exhibits or a list of all such exhibits intended to be
introduced at the arbitration by the Brotherhood and a list of all witnesses the
Brotherhood intends to call, except for exhibits and witnesses the Brotherhood may
introduce for rebuttal. When a list of exhibits has been provided, any challenger shall
have a right to receive copies of such exhibits by making a written request for them to
the Grand Lodge Secretary-Treasurer. Additionally, copies of all exhibits shall be
available for inspection and copying at the hearing.
e. A court reporter shall make a transcript of all proceedings before the arbitrator.
This transcript shall be the official record of the proceedings and may be purchased by
the challengers. If challengers do not purchase a copy of the transcript, a copy shall be
available for inspection by challengers at the Grand Lodge during normal business hours.
f. The arbitrator shall have control over all procedural matters affecting the
arbitration in order to fulfill the dual needs of an informed and an expeditious
arbitration. The arbitrator shall set forth in the decision the legal and arithmetic bases
for the decision, giving full consideration to the legal requirements limiting the amount
that objectors may be charged.
g. The parties to the arbitration shall have the right to file a post-hearing statement
within fifteen (15) days after both parties have completed submission of their cases at
the hearing. Such statements may not introduce new evidence or discuss evidence not
introduced in the arbitration. The arbitrator shall issue a decision within forty-five
(45) days after the final date for submission of post-hearing statements or within such
other reasonable period as is consistent with the AAA rules and the requirements of law.
h. The decision of the arbitrator shall be final and binding on all findings of fact
supported by substantial evidence on the record considered as a whole and on other
findings legally permitted to be binding on all parties.
i. Upon receipt of the arbitrator's award, any adjustment in favor of the challenger
will be made from the escrow account. Any adjustments in favor of the union shall be due
and owing within thirty (30) days. An individual failing to pay any adjustments in
full within the prescribed thirty-day period will be considered as being in non-compliance
with provisions of the Union Shop Agreement.
Sec. 9. The provisions of this procedure shall be considered legally separable. Should
any provision or portion be held contrary to law by a court or an arbitrator, the
remaining provisions or portions thereof shall continue to be legally effective and
binding. |