Facts About Your Union Dues
What Are Union Dues?
Union dues are those funds provided by union members to financially support the goals of their organization. In the IBEW, union dues are divided into two parts: The international portion of dues goes to support the representational, research, legal, administrative, and legislative goals of the organization's members on a national level. The local union portion of dues goes to support the goals of the local union's members at the local union level and includes expenses such as handling grieviences, arbitrations, contract negotiation, organizing activities, rents, etc.
How much are the IBEW's dues?
The IBEW's dues structure is as follows:
"BA"members - International portion - $9.00 per month
Local Union portion - $1.00 per month minimum
"A"members* - International portion - $20.00 per month
Local Union portion - $1.00 per month minimum
*"A" members participate in a voluntary pension plan and death benefit insurance plan which costs $11.30 per month above the $8.00 BA rate.
Local Union dues are determined by the local union membership.
How is the amount of union dues determined?
The members determine the amount of union dues paid to their local and international union by a democratic majority vote. Members must decide what amount of dues will be necessary to provide economic resources to achieve their goals.
What are the initiation fees?
An initiation fee is a charge to new members of a local union. In the IBEW, the initiation fee is purposely kept low (we want to invite new members in, not keep them out economically). For example, in most industrial (non-construction) locals, the one-time initiation fee is $35.00, and covers the first month's dues.
Who determines initiation fees?
Again, the amount of any initiation fee is determined by the membership of the union in a democratic vote.
Do unions collect dues for profit?
No. Unions are non-profit organizations under Section 501 of the Internal Revenue Code. The dues they collect from the members are for the specific purpose of benefitting the goals of the membership.
Does the union have any rules on financial propriety?
Yes, very stringent rules. Any expenditure of local union funds must be approved by the membership. At each meeting, a financial report is presented to a local union's members for approval by the membership. No local union can expend funds without prior approval of the members. Each Local Union is also required to provide a quarterly audit of its funds to the members. Also, Unions are governed by the Labor Management Reporting and Disclosure Act of 1959. This federal law provides very strict federal penalties, (including prison) for anyone misappropriating union funds. Unions must file annual reports with the U.S. Department of Labor outlining expenditures and income for the union. Unions are subject to audit by the U.S. Department of Labor, Office of Labor Management Standards, at any time.
Union Membership doesn't cost...It Pays!