DUES & BUDGET Q&As
1) What are the dues?

2) How much will I have to pay if I become a union member?

3) How was this 0.3% dues structure developed?

4) How does this dues structure compare with other unions?

5) If I work part-time or if I am located in a field office do I pay a different rate? Why are dues assessed as a percentage of salary?

6) Are dues tax-deductible?

7) What are the expenses of our Union?

8) Does part of my dues go to IFPTE and how is it used?

9) Will our funds be used for political activities?

10) Do our Union dues go toward services for employees who have not yet joined our Union?

11) Who is responsible for managing our dues? Who can actually use our dues to make purchases?

12) Will our Union conduct audits of its income and expenses?
1) What are the dues?
  a. Dues are 0.3% (0.003) of salary, which will apply to the salaries of bargaining unit members who choose to join our Union.
2) How much will I have to pay if I become a union member?
  To calculate the amount you would pay per pay period, take your salary and multiply it by 0.3 percent (0.003), then divide by 26.  Here is a table with some examples:

    Examples

    Annual Salaries

    Dues Per Pay Period

    Salary Example 1

    $60,207.55

    $6.95

    Salary Example 2

    $94,287.89

    $10.88

    Salary Example 3

    $109,918.17

    $12.68
3) How was this 0.3% dues structure developed?
  a. In 2008, before the union’s constitution was ratified, the Interim Council sought out dues structures and budgets from other federal-sector unions in order to get an idea of the expenses we might incur within our first year. They also developed an interim planning budget, using information from IFPTE estimating the expected costs for specific items. This budget made estimates of the number of employees who would join the union (income) and the services they would require (expenses). Based on the estimates in the budget, they concluded that a 0.3% dues structure would be an appropriate starting point until we gain more precise information later on.

b. The bargaining unit approved this dues structure by a vote in July 2008 with the approval of 75 percent of those voting. Almost half of eligible bargaining unit employees participated in the vote (834 of an estimated 1800) with 627 voting to ratify the proposal and 207 voting against ratification
4) How does this dues structure compare with other unions?
  a. While it is difficult to compare across unions, one useful basis for comparison are federal sector unions affiliated with the National Treasury Employees Union (NTEU) which are able to negotiate pay for their members, like our union at GAO. The NTEU dues structure for these unions is also based upon a percentage of salary and averages between 0.76 and 0.912% of salary – more than twice our union’s rate of 0.3%.

b. Among IFPTE affiliated unions, three federal sector affiliates’ dues structures provide some additional guidance: Congressional Research Service (CRS); Social Security Administration’s Administrative Law Judges (SSA ALJ) local affiliates; and Department of Justice’s Immigration Law Judges.

i. The CRS affiliated union’s dues structure is 0.2 percent of salary. While many of our expenses may be similar, we identified some specific differences that made it clear we should require a higher rate, particularly in the early years. Specifically, CRS’s union has existed for more than 30 years so they have built an infrastructure, accumulated significant reserves and have a membership including almost two-thirds of CRS employees. The majority of their membership is paid at the GS-15 level, which is above that of GAO analysts in our bargaining unit. Further, CRS employees are all located in Washington D.C. The nationwide GAO union will incur costs associated with travel and communications. Finally, GAO’s union, unlike CRS, has the right to negotiate pay, and pay bargaining requires additional and more sophisticated professional services.

ii. The SSA ALJ union consists of about 1,000 ALJs nationwide, all of whom are paid at the same rate (approximately a GS 15 level). Since all bargaining unit members are paid the same rate the SSA ALJ affiliate opted for a flat rate of $18.15 per pay period or $471.90 per year. Justice’s Immigration Law Judges – who are paid at roughly the same rate as SSA ALJs – pay a flat rate of $20 per pay period.
5) If I work part-time or if I am located in a field office do I pay a different rate? Why are dues assessed as a percentage of salary?
  a. All members pay dues at the same rate. Part-time employees, who are paid proportionately less than full-time employees, will accordingly pay lower dues. Pay levels at GAO vary by location; paying the same percentage of salary for dues automatically adjusts for that variation. We debated whether to assess a percentage of salary vs. a flat rate, and decided assessing a percentage was more equitable.

b. Assessing a percentage also represents fewer challenges in implementation than a flat rate. If we had gone with a flat rate, we might have wanted to develop different rates for staff depending on their location, as well as for part-time staff, which would have posed a challenge with the automatic dues deduction system.
6) Are dues tax-deductible?
  a. Union dues are tax deductible as an itemized deduction on IRS Schedule A. Union dues are counted with job expenses and other miscellaneous deductions which include items such as tax preparation. Expenses in excess of 2 percent of adjusted gross income can be deducted.
7) What are the expenses of our Union?
  a. Negotiating pay and contracts with management.

i. These expenses consist mainly of legal advice. The main benefit of our Union is the ability to negotiate pay and a master contract on the terms and conditions of our employment.

b. Training our elected leaders and volunteers.

i. Training our elected officials and volunteers on labor law and professionally handling disputes is extremely important. The more training we can provide, the less likely we will incur costs later on from arbitration and mediations.

c. Grievance & dispute resolution.

i. Expenses relate to professional services that could include legal advice, representation, mediation, and arbitration services, as appropriate to the circumstances.

1. Binding arbitration for resolving grievances and disputes is important benefit and expenses of our union. Such procedures are negotiated in our contracts and are therefore subject to contract law. As a result, binding arbitration can provide significantly more powerful protections for discrimination and other complaints than afforded by anti-discrimination and other statutes (such as whistle-blower protections).

2. Arbitration, mediation, or legal counsel normally is not a recurring cost per month, but instead is needed when a situation arises. Hence, we need to build a legal reserve fund since the cost associated with using this service is expensive. For example, the use of arbitration can cost $10,000 or more.

3. Our union’s elected leaders are ultimately responsible for determining whether to pursue employee or union complaints that would involve the expenditure of union funds. They are responsible for ensuring that the union’s financial resources are allocated in the best interests of the bargaining unit and on a fair, non-arbitrary and non-discriminatory basis. They are accountable to the membership for their judgments.

d. Liability insurance & bonding

i. Union liability insurance protects the union and its officers/representatives from lawsuits relating to the performance of their union responsibilities.

ii. Bonding is a federal requirement to protect members’ funds from internal theft.

e. Travel for meetings and conferences

i. Travel funds are budgeted for major meetings, such as sending a small delegation to an IFPTE conference, or flying in a field staff for training or a major grievance issue. The better trained our elected officials and volunteers, the better our union.

ii. Our union has a unique geographic structure, and travel is necessary to ensure members are able to participate fully regardless of location.

f. Communication & Website

i. These expenses can include a variety of things from teleconference lines to website development and maintenance. The geographic spread of our local also makes communication more important as well as more expensive.

g. Membership development

i. Before deciding to join the union, people need to see the benefits. Some of our resources need to be used to educate potential members why our union is important and why we need them involved. As well, we need to buy materials and host events to building legitimacy and understanding.

ii. Growing our membership also increases our leverage during negotiations, spread the costs more fairly and helps keep down the dues rate.

h. Office supplies and running our union

i. These expenses can include typical office supplies to printing materials to education and inform members of upcoming events.
8) Does part of my dues go to IFPTE and how is it used?
  a. Yes, each union affiliated with IFPTE pays a monthly per-member fee (known as the “per capita tax”) to IFPTE, set by a vote of delegates from each IFPTE affiliated union. As of May 2009, we pay $6.65 per member per month. It should be noted that the vast majority of dues collected by IFPTE affiliated unions remain with the affiliate. IFPTE allocates per capita tax revenues to the following functions, which have assisted our union in many cases.

i. Organizing employees who wish to form a union. For example, the dues of other Local’s within IFPTE financially supported our efforts in organizing our union at the GAO, such as providing legal services, teleconference line, website, and printed materials.

ii. Negotiation of first contracts for newly organized employee groups.

iii. Preparing and presenting training materials.

iv. Assistance in emergencies or particularly complex situations that are beyond the resources or expertise of the affiliated local union.

v. Coordinating with other labor organizations or interest groups, where appropriate.
9) Will our funds be used for political activities?
  a. No, our dues will not go toward any partisan political activity. Although IFPTE does engage in legislative advocacy on behalf of affiliated unions, per capita tax revenues are not used to make political contributions. The only way IFPTE can directly contribute to a candidate is through their political action committee, which is maintained by a separate fund consisting solely of voluntary, individual contributions (i.e., no dues money).

b. In the event IFPTE endorses political candidates or supports legislative or political positions, our union will abstain from all political endorsements and political actions and may elect to abstain from participating in legislative advocacy as it deems appropriate in the professional interests of GAO employees. Such actions or activities by IFPTE are not on behalf of, nor representative of, our union or its employees.

c. Our sister agency’s union, at the Congressional Research Service (CRS), has an agreement with IFPTE that none of their dues can be used for political activities, and we have the same agreement with IFPTE to ensure that GAO maintains its independent status so we can continue to work for Congress.
10) Do our Union dues go toward services for employees who have not yet joined our Union?
  a. Yes, U.S. labor law requires federal-sector unions to provide the same services to all employees that they provide to dues-paying union members. For example, if our Union negotiates an increase in pay, it will apply to all employees in the bargaining unit – not just union members who pay dues and volunteer their time. In addition, if we negotiate for a mediation and arbitration process, everyone within the bargaining unit can request this service.

b. In economic circles, receiving benefits without paying for them is referred to as the “free-rider” problem. The best response is to make sure that all members of the bargaining unit are fully aware of what the union does for them and the value of direct involvement in the work of the union. Opportunities that are available only to members, such as working on union task forces to improve performance appraisals or employee surveys, can provide a more effective and powerful voice than staff would have as non-member, Such involvement can also offer key developmental opportunities and visibility, which could be an asset if the work is done well and constructively.
11) Who is responsible for managing our dues? Who can actually use our dues to make purchases?
  a. The Treasurer of Union is responsible for managing our union’s funds and is supported by the Finance Committee, especially in developing money-related policies and procedures, including internal controls.

b. Any checks written by our Union need to be signed by two Officers.

c. Purchases our Union is considering will be reviewed by our Finance Committee, composed of Assembly members and volunteer union members approved by the Assembly.
12) Will our Union conduct audits of its income and expenses?
  a. Yes, within our Constitution (Article X, Section 4) it states, "The Treasurer shall arrange for an audit of the Organization's finance to be conducted at least ever 3 years by an external party. During years without an external audit, the Treasurer shall arrange for an internal audit of the Organization's finances."