The UAW is considering raising membership dues 25% to make up for rising costs and decreasing membership. It would be the first dues increase since 1967. After peaking at 1.5 million members in 1979, UAW membership is down 30% since 2005 to 382,500.
Dues are charged as a percentage of wages. The increased dues would be the equivalent of 2.5 hours worth of wages per month, up from two hours per month for hourly workers. In addition to workers in the automotive industry, the UAW represents workers in government and in the nursing, academic and clerical fields. Since some of those other industries don't have the same high wages as are paid in the auto industry, the new members don't bring in as much revenue from their dues. In the 1970s three quarters of UAW members worked in the auto industry while today fewer than half do.
A high seniority UAW member worker at either General Motors, Ford or Chrysler making $28.125 per hour pays union dues of $56.25 per month. That would rise to $70.32 per month. New hires, who are paid less, according to the most recent contracts, make $15.78 per hour and their dues would go up to $39.45 a month from$31.56.
Jimmy Settles, UAW vice president for Ford, said that dues increase is "only in the discussion phase. No decision has been made." Settles said that the decision will be made either by the union's leadership or by a vote of the membership at the UAW's convention next year.
Besides declining membership, the UAW and other labor unions face the growing trend for states adopting right to work laws, which typically prohibit mandatory collection of union dues.
UAW membership has gone up 8% since the depths of 2009, while U.S. auto sales have increased by almost 50%. The widespread use of robots and increased productivity from other manufacturing efficiencies has reduced the number of workers needed to run an assembly plant.
from The Truth About Cars http://www.thetruthaboutcars.com
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