Jan-Mar 2000 Hudson Package
June 1, 2000 Dear UC Clerical Employee, On January 1, 2000, the Fair Share legislation became California law. Under this law, unions that have been elected by a majority vote to represent employees are permitted to collect "fair share" fees to cover the cost of the union's representational activities. Unlike most other UC unions, CUE asked its members whether or not to implement fair share, and the members from every campus voted to do so. Members also voted to replace our previous flexible dues structure with a fixed rate, so that we could calculate a consistent fair share rate. Our new membership dues are one-half of one percent (0.5%) of each member's gross monthly salary, a rate lower than dues for other UC unions. CUE is implementing fair share June 1, 2000. The first paychecks to show fair share deductions will be the paychecks issued on July 1, 2000 (or a little later for those paid twice a month.) Enclosed is a legal notice detailing the information required by law concerning the fair share fee, including, among other things, the amount of the fair share fee being collected, the basis for the calculation of the fair share fee, and a summary of the procedures for appealing or challenging all or any part of the fair share fee. Also enclosed are the following documents:- CUE guidelines for allocating chargeable and nonchargeable expenses
- CUE fair share appeal procedures
- Independently audited CUE financial statement with schedule of allocation of chargeable and nonchargeable expenses for first quarter, 2000
- A CUE membership form
Senate Bill 645, signed into law last year, requires employees who choose not to become members of the union that represents them to pay a fair share fee to support the activities of the union which benefit all employees. In your case, the Coalition of University Employees is that union. The fair share fee is based on CUE expenditures for activities or projects undertaken by the union to represent clerical employees with respect to their terms and conditions of employment. These expenses are considered "chargeable" to fee-payers. CUE has identified those activities and expenditures in the Guidelines For Allocating Chargeable And Nonchargeable Activities And Expenditures, which is enclosed. These "chargeable" expenditures include the cost of contract negotiations, handling work-related problems through the grievance procedure, meetings with management, arbitrations and union administration. The fair share fees do not cover any "nonchargeable" expenditures, for example, member-only benefits, charitable donations, and recruitment of new members. Although not required by law, CUE, as a matter of policy, has set fair share fees at, or below, the rate determined to be "chargeable." Accordingly, fair share fee-payers will not be required to file any objection or request that they not pay for nonchargeable expenditures because all non-chargeable expenditures have been automatically removed from the calculation of the fair share fee for all payers. Dues and Fees
CUE's dues are the lowest of any union at UC, and probably among the lowest in the nation. At 0.5%, it amounts to less than one hour of your wages per month. Paying fees does not make you a member, and fees are not dues. Fair share fees are a percentage of dues, and are based on an independent audit of the first quarter of 2000. That figure will be applied for fair share fees collected beginning July 1, 2000 through June 30, 2001. The results of the independent audit indicate that 98.85% of CUE's expenses are chargeable to fee-payers. However, for the period of July 1, 2000 - to June 30, 2001, CUE will only collect fees in the amount of 95% of regular dues. This lower amount is designed to ensure that no "nonchargeable" expenses whatsoever are inadvertently charged to fee-payers. Fair share fees amount to 0.475% of gross monthly salary. Financial Report
Enclosed is an audited financial report for CUE for the first quarter of 2000, which shows how much was spent on activities that were chargeable to fee-payers. The Report itemizes and describes the major categories of expenditures by the Coalition of University Employees, and indicates which are, and which are not, chargeable to fee-payers. The amounts in each category are taken from an independent audit and supporting documents of CUE's first quarter of 2000 financial records. Challenges
The law entitles you to file a challenge regarding the calculations and allocations of chargeable and nonchargeable expenditures, and have your challenge be resolved by a neutral arbitrator appointed by the American Arbitration Association. If you file a challenge, your fee, or the portion at issue, will remain in an interest-bearing escrow account until the arbitrator rules on your challenge. At the arbitration, it will be CUE's burden to prove the accuracy of its calculations. Clerical workers employed in the CUE-represented unit as of June 1, 2000 who wish to file a challenge must do so by letter postmarked no later than July 15, 2000 addressed to Judy Turley, CUE, PMB 9663, 2425 Channing Way, Berkeley, CA 94704. Clerical workers who are hired into the CUE unit after June 1, 2000 must file any challenge they wish to bring, by letter postmarked no later than 30 days from receipt of this notice. If we do not hear from you by the specified deadline, we will assume you accept the fair share fee amount and related allocations and calculations as applicable for the period July 1, 2000 to June 30, 2001. If you file a challenge for arbitration, please state your name, home address, social security number or employee i.d. number, and campus. Any challenge should, if possible, include the grounds of the challenge so that the union may be able to consider those grounds and determine whether any reduction in fair share amount is warranted before the matter proceeds to a hearing. A detailed description of the appeals procedure for challenges is enclosed, which, should be reviewed carefully. Religious Objections
If you are a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations you may request a religious objector exemption. To do so, you must send a written request, addressed to Judy Turley, CUE, PMB #663, 2425 Channing Way, Berkeley, CA 94704, specifying the identity of the religion, body or sect, and providing sufficient information to verify your membership in such entity. Requesting employees who qualify for conscientious exemption under Government Code Section 3584(a) shall have an amount equal to the fair share fee for the applicable fee payer year deducted from their paychecks and remitted to a nonreligious, nonlabor charitable fund exempt from taxation. The employee shall select one of the following funds designated by the University and CUE to receive such deductions from the employee's paycheck: Pediatric Aids; Koman Foundation; and Oxfam. Any employee in the CUE bargaining unit with a conscientious exemption who requests individual representation concerning a grievance will be charged a reasonable fee for such representation. Joining CUE
We encourage everyone to become a member instead of a fee-payer, by filling out the membership form, and returning it soon. The CUE Executive Board
FAIR SHARE FEE APPEAL PROCEDURES
- A fair share fee payer is an individual who chooses not to have the rights of union membership but is still required by law, under a fair share fee arrangement or provision with the employer, to pay to the union, as a condition of employment, fair share service fees (also known and referred to in this document as "fair share fees") germane to the Union's functions as the exclusive bargaining representative. Fair share fee payers do not have the right to vote, hold office, or be a candidate for office in the Union; nor may they participate in or attend any functions of the Union that are limited to Union members. In addition, fair share fee payers have no right to vote on dues increases or on contracts submitted to the membership for ratification. These rights are privileges of Union membership and are accorded only to full Union members.
- Although not required by law, the Union, as a matter of policy, will collect from fair share fee payers only such amounts related to the Union's chargeable expenditures. Fair share fees will not be collected to cover any of the Union's nonchargeable expenditures. Accordingly, fair share fee payers will not be required to file any objection or request that they not pay for nonchargeable expenditures. (Union members, whose membership becomes temporarily suspended because of delinquency in dues payments or other reasons, are not considered to be fair share fee payers and will continue to be charged dues, absent an affirmative written declaration to the Union that they wish to become fair share fee payers.) The Union has identified those activities and expenditures that it considers chargeable or nonchargeable in its Guidelines For Allocating Chargeable And Nonchargeable Activities And Expenditures (hereafter the "Guidelines"), which document is incorporated herein by reference.
- The Union shall issue annually no later than June 1 of each year a notice to fair share fee payers that advises them of at least the following:
- the amount of the fair share fee which is to be expressed as a percentage of the annual dues per member based upon the chargeable expenditures identified in the notice;
- the basis for the calculation of the fair share fee; and a brief summary of these procedures for appealing or challenging all or any part of the fair share fee.
- The fees paid by fair share fee payers shall be calculated by the Union as follows: The Union uses a fiscal year of January 1 to December 31. In about January through about May of each year, the Union will close out its financial books and records for the previous year, and have those books and records audited by an independent accountant. The auditor will provide the Union with a report verifying the amounts spent in each of the Union's major categories of expenditures. The Union shall also have the independent accountants audit and determine its total operating expenditures for all purposes during the prior fiscal year or applicable period and separately identify those expenditures made for chargeable activities and those made for nonchargeable activities. The auditors shall then calculate the ratio of chargeable expenditures to total expenditures. This ratio or percentage shall be the basis for the fair share fees collected from all fair share fee payers for the upcoming fee payer year. The Union shall calculate the amount of the fair share fee, including the amount as expressed as the chargeable percentage of regular dues, which all fair share fee payers will pay for the upcoming "fee payer year", which is the 12 month period beginning July 1 of the current year and ending June 30 of the following year, based on the Union's expenditures for the previous fiscal year or applicable period. (As noted, in 2000 the fair share fee calculations will be based on an independent audit of the Union's expenditures for the first quarter of 2000).
- All fair share fee payers shall have the right to challenge the Union's calculation of the fair share fee and the allocation of chargeable and nonchargeable expenditures in a reasonably prompt hearing before an impartial arbitrator. Fair share fee payers who wish to participate in such a hearing before an arbitrator and otherwise challenge the amount of the fee, the calculations and/or the allocations applicable for the upcoming fee payer year must so indicate in writing by letter postmarked no later than thirty (30) days after distribution of the annual notice, addressed to CUE at P.O. Box 618, Berkeley, California 94701. Challenges shall not be presumed. Accordingly, any fair share fee payer who fails to submit a timely challenge to the amount of the fair share fee and the related calculations and allocations shall be deemed to have waived the right to pursue a challenge in any arbitration or legal proceeding. Any challenge should, if possible, include the grounds of the challenge so that the Union may be able to consider those grounds and determine whether any reduction in the fair share fee amount is warranted before the matter proceeds to a hearing.
- During the period while any challenge is pending, the Union will place in an interest-bearing escrow account held in an independent financial institution an amount to equal 100 percent of those fees collected from challengers. Fair share fees collected from fee payers receiving concurrent notice with the collection shall also be placed in the escrow account until the thirty (30) day period for filing a challenge has passed or until arbitration of any challenge filed by the payer, whichever may be applicable. The Union will, when necessary, increase or decrease the amount held in escrow to reflect, with reasonable accuracy, the amount of all fair share fees that are subject to these escrow requirements. Escrowed fees will be released to the Union after either mutual agreement between the challenger and the Union as to the proper amount of the fair share fee or the decision of the impartial arbitrator, whichever comes first. Challengers shall promptly receive any rebate that may be ordered by the arbitrator or agreed to by the Union, plus the appropriate amount of interest earned in the escrow account on such amount.
- Within 45 days of the last day for filing a challenge, the Union shall refer any timely filed challenges to and request in writing a prompt hearing from the American Arbitration Association ("AAA"). All timely challenges shall be resolved pursuant to the AAA Rules For Impartial Determination Of Union Fees, except to the extent those Rules exceed legal requirements and are inconsistent with these procedures, which shall in such cases govern. The impartial arbitrator shall be appointed by the AAA pursuant to its Rules. Unless otherwise ordered by the arbitrator or agreed to by all parties, the challenges shall be consolidated and heard in a single proceeding in Berkeley. Any time prior to the start of the hearing, any party may make a motion to the arbitrator contesting consolidation of the hearing. Only one consolidated arbitration hearing shall be held each year, unless otherwise agreed by the Union.
- The arbitration hearing shall begin no later than thirty (30) days after the Union's written referral to AAA. Any challenger who does not wish to attend the hearing may submit his or her views in writing to the arbitrator prior to the close of the hearing, provided that the Union timely receives a copy and an opportunity to make any objections. If no party desires a hearing, the arbitrator shall set a date by which all written submissions shall be received, and shall decide the case based on the records submitted. The hearing shall be fair, informal proceedings conducted in conformance with basic precepts of due process. The Union shall bear the burden of proof in justifying its calculations.
- The parties may participate in the hearing in person, or through an attorney or other representative.
- The arbitrator shall issue a written decision no later than thirty (30) days after the close of the hearing, determining whether the Union properly calculated the chargeable portion of its total expenditures for the applicable audited period and the proper amount of the fair share fee, and if not, what those amounts should be. The arbitrator shall set forth his or her legal and arithmetic reasons for the decision. The impartial arbitrator shall apply recognized legal principles applicable to public Universities in which CUE fair share fee payers are employed and shall have no authority to order any rebate or reduction unless required by applicable law.
- Objecting fair share fee payers shall pay the expenses for their own representation related to said arbitration (e.g., travel costs, witness fees, lost time/wages, attorney fees, etc.). Absent objection, the Union shall pay the fees of the impartial arbitrator and the costs of any arbitration hearing.
- The Union shall promptly take all steps reasonably necessary to implement the arbitrator's decision.
- The Union reserves the right to waive arbitration hereunder and agree instead to the adjustments requested by any challenging fair share fee payer.
- Any employee in the CUE bargaining unit covered by the fair share fee arrangement with the University who is a member of a bone fide religion, body or sect, within the meaning of Government Code Section 3584(a), that has historically held conscientious objections to joining or financially supporting public employees organizations will not be required to financially support the Union, provided the following is satisfied. Any such employee must send a written request, addressed to CUE at P.O. Box 618, Berkeley, California 94701, specifying the identity of the religion, body or sect, and providing sufficient information to verify the person's membership in such entity. Requesting employees who qualify for conscientious exemption under Government Code Section 3584(a) shall have an amount equal to the fair share fee for the applicable fee payer year deducted from their paychecks and remitted to a nonreligious, nonlabor charitable fund exempt from taxation. The employee shall select one of the following funds designated by the University and CUE to receive such deductions from the employee's paycheck: Pediatric Aids; Koman foundation; and Oxfam. Any employee in the CUE bargaining unit with a conscientious exemption who requests individual representation concerning a grievance will be charged a reasonable fee for such representation.
- The Union reserves the right to modify its policy and procedures herein at any time if, in its opinion, such change is warranted by law, or is otherwise appropriate pursuant to union policy.
CHARGEABLE AND NONCHARGEABLE ACTIVITIES AND EXPENDITURES INTRODUCTION
As a general matter, the U.S. Supreme Court has held that agency fee payers "may be compelled to pay their fair share of not only the direct costs of negotiating and administering a collective bargaining contract and of settling grievances and disputes, but also the expenses of activities or undertakings normally or reasonably employed to implement or effectuate the duties of the union as the exclusive representative of the employees in the bargaining unit". Ellis v. BRAC 466 U.S. 435 448 (1984); Chicago Teachers Union v. Hudson 475 U.S. 292 (1986) and related state law. Conversely, expenditures for political or ideological purposes and for activities beyond those reasonable or germane to collective bargaining, and other nonrepresentational purposes may not be charged to agency fee payers who may so object. Id.
- CHARGEABLE ACTIVITIES
The following are the general categories of activities which are germane to the collective bargaining process or reasonably employed to implement or effectuate the representational duties of the union, and, therefore, fully chargeable to agency fee payers. For an activity to be chargeable to all Union-represented employees, all employees, including agency fee payers, must be eligible to enjoy the benefit of the activity.- Contract Negotiations
- all preparation for negotiations, including research, formulating goals, drafting proposals, development of supporting data, surveys, employee education, and meetings held in anticipation of negotiations;
- actual negotiation of the contract and all related activities;
- lawful economic, collective and solidarity activities with respect to contract negotiations and labor- management disputes.
- Contract Administration - Grievance Adjustment and Arbitration
- handling employees' questions and complaints about working conditions, benefits, the meaning of specific contract clauses, and contract rights generally
- attendance at stewards' meetings and all grievance committee work
- meetings and discussions, with employer and/or Local Union representatives, relevant to contract meaning or grievances
- facts investigation and development of data bases in support of grievance adjustment or arbitration, including all related research, technical assistance and staff support
- all involvement in arbitration proceedings, including preparation, representation, post-arbitration efforts to secure compliance, and all associated costs.
- Unit Membership Services and Other Activities Related to Collective Bargaining
Other activities that are designed to educate bargaining unit employees concerning their employment, including all communication of union policy to represented employees regarding representational issues, and all assistance and information provided to represented employees concerning employment-related, community and governmental services to which they are entitled. - Internal Union Governance and Administration
- executive - elections, internal union meetings, conventions
- judicial - interpretation and enforcement of union constitution, rules, bylaws
- financial - accounting, data processing, monitoring membership status and dues transmittal, auditing, etc.
- local-local relations - coordination of representation among local chapters
- all other standard features of union internal operations related to governance, administration, coordination, and overall union cohesion
- Training and Education Re Representational Matters
All education, training programs, conferences, (including preparation and support work) related to representational activities described herein. - Certain Lobbying Activities Re Contracts
Although most lobbying activities are nonchargeable, lobbying regarding the following matters are clearly chargeable:- contract ratification
- contract implementation
- Activities To Elicit Outside Support As To Collective Bargaining Or Representational Matters
All such activities are chargeable if they directly concern and seek support for Union collective bargaining or other representational matters germane to the collective bargaining process such as those matters described herein. - Activities Designed To Preserve Established Bargaining Unit Rights And Support
All activities related to increasing or preserving the support of bargaining unit employees as to collective bargaining and representational matters as well as activities designed to preserve or expand the jurisdiction of established bargaining units whereby employee work opportunity or job security is protected or improved. However, activities related to convincing agency fee and nonunion bargaining unit members to become union members are nonchargeable. - Litigation Re Representational Matters
All litigation-related activities, including, for example, responding to legal discovery requests, preparation for and attendance at legal proceedings, consultation with legal counsel, and all meetings and correspondence regarding such litigation, are fully chargeable, provided the litigation relates to representational, chargeable matters, as described above.
- Contract Negotiations
- NONCHARGEABLE ACTIVITIES
The following are examples of activities which cannot be charged to objectors:- Political Activities - Partisan or Nonpartisan
- voter registration drives; support in any form for any political party or candidate
- activities related to any pending legislation or ballot initiative
- Activities Primarily Directed Towards Persons Not represented By the Union Regarding Non-representational Matters
- public relations activities (e.g., media events, meetings, conferences, lectures, speeches) primarily directed to persons not represented by the union, or to outside organizations, where those activities are unrelated to the union's institutional interests or the employment-related interests of represented employees;
- contributions of money or services to outside labor, educational and charitable groups
- expenditures related to U.S. foreign relations or international affairs
- affiliation fees and activities related to other unions or labor councils.
- Organizing Activities
Any activity designed to acquire new members or obtain new representation rights is deemed not chargeable. However, activities designed to increase or preserve the support of bargaining unit employees with respect to collective bargaining, labor-management issues and other representational matters, as described in category 8 above, are chargeable. - Training & Education Re Nonrepresentational Matters
All education, training programs, conferences (including preparation and support work) regarding nonrepresentational matters are nonchargeable. - Litigation Re Nonrepresentational Matters
All litigation-related activities, as described in category 9 above, are nonchargeable if the litigation relates to nonrepresentational matters as described herein.
- Political Activities - Partisan or Nonpartisan
- OTHER EXPENSES
- Union Literature
Union literature expenses are only chargeable if they are related to matters concerning chargeable activities. Jokes and other "filter" designed to enhance readability are chargeable if content neutral (e.g., safety tips, nonpolitical humor) and are nonchargeable if they relate directly to a nonchargeable activity (e.g., a "political" joke or commentary). The allocation of expenses related to preparation and distribution of Union literature to bargaining unit members shall be determined based on the ratio of total column inches devoted to chargeable and nonchargeable matters for the entire year. - Salaries
Salaries of officers and union representatives are allocated based on the time spent by such personnel on representational and nonrepresentational activities, respectively. The salaries of office, clerical and technical personnel are allocated between representational and nonrepresentational activities in the same percentage as the officers and union representatives whom they assist. - Fringe Benefits - are allocated in the same ratio as the salaries they supplement.
- Officer and Employee Travel Expenses
Travel expenses are allocated in the same ratio as the salary of the officer or employee who incurs the expense. - Overhead Expenses (direct and indirect)
Overhead expenses are allocated in the same ratio as the salaries of the officers and union representatives. These expenses include among other things:- building depreciation
- office rent
- maintenance, utilities, taxes
- insurance
- office expenses, telephones, postage, etc.
- automobile expenses
- Legal
Legal fees and expenses are allocated based on the time and fees spent on representational and nonrepresentational matters, respectively.
- Union Literature
COALITION OF UNIVERSITY EMPLOYEES
(Cash Basis)
And
Independent Auditors' Report
And
Other Financial Information
(Cash Basis) For Three Months Ended March 31, 2000 Henry C. Levy & Company
Certified Public Accountants & Consultants
A Professional Corporation TABLE OF CONTENTS
Certified Public Accountants and Consultants
A Professional Corporation
5940 College Ave., Suite C
Oakland, CA 94618
Telephone (510) 652-1000
Fax (510) 654-2363
Independent Auditors' Report
Coalition of University Employees We have audited the accompanying statement of assets, liabilities, and net assets-cash basis of Coalition of University Employees, a nonprofit organization, as of March 31, 2000 and the related statements of support, revenue, and expenses and other changes in net assets-cash basis for the three month period then ended. These financial statements are the responsibility of Coalition of University Employee's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As disclosed in note 1, CUE prepares its financial statements on the cash basis, which is a comprehensive basis of accounting other than generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements referred to in the first paragraph taken as a whole. The accompanying information on pages OFI-1 to OFI-6 is presented for purposes of additional analysis and is not a required part of the above financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements referred to above and, in our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coalition of University Employees, as of March 31, 2000 and the results of its activities and changes in its net assets for the three month period then ended in conformity with the basis described above. signature May 10, 2000
Oakland, California
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS-CASH BASIS
MARCH 31, 2000
| ASSETS | |
| Cash and Cash Equivalents | 4,182 |
| Fixed Assets | |
| Fixed assets net of accumulated depreciation | 510 |
| Total Assets | 4,692 |
| LIABILITIES AND NET ASSETS | |
| Loan payable | 12,000 |
| Accrued Employee Compensation | 1,666 |
| Total Liabilities | 13,666 |
| NET ASSETS | |
| Unrestricted: | (8,974) |
| Total Liabilities and Net Assets | 4,692 |
STATEMENT OF REVENUE, SUPPORT, EXPENSES
AND OTHER CHANGES IN NET ASSETS-CASH BASIS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2000
| Revenues and Other Support: | |
| Members' Dues and Assessments | $ 42,362 |
| Expenses | |
| Arbitration & Bargaining: | |
| Grievance Processing | 1,267 |
| Literature | 6,314 |
| Travel, Lodging & Meals | 8,765 |
| Personnel Expenses: | |
| Employee compensation | 17,050 |
| Employee Benefits | 2,488 |
| Payroll Taxes | 1,918 |
| General & Administrative: | |
| Bank Service Charges | 1,797 |
| Childcare | 25 |
| Depreciation Expense | 35 |
| Liability Insurance | 326 |
| Office Supplies | 319 |
| Reimburseable Expenses | 1,008 |
| Professional Fees - Accounting | 1,419 |
| Telecommunications & Telephone | 3,367 |
| Other Expenses: | |
| Postage and Delivery | 3,710 |
| Printing and Reproduction | 1,602 |
| Total Expenses | 51,410 |
| Change in net assets | (9,048) |
| Net assets - December 31, 1999 | 74 |
| Net assets - March 31, 2000 | $ (8,974) |
NOTES TO THE CASH BASIS FINANCIAL STATEMENTS
| Office Equipment | $ 703 |
| Less: Accumulated Depreciation | |
| and Amortization | (193) |
| $ 510 |
Report of Independent Auditors on Other Financial Information
Certified Public Accountants and Consultants
A Professional Corporation
5940 College Ave., Suite C
Oakland, CA 94618
Telephone (510) 652-1000
Fax (510) 654-2363
Coalition of University Employees Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of Chargeable and Non-Chargeable expenses is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This additional information is the responsibility of the Chapter's management. Such information has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. Signature May 10, 2000
Oakland, CA
SCHEDULE OF CHARGEABLE AND NONCHARGEABLE EXPENSES
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2000
| TOTAL | |||
| EXPENSES | CHARGEABLE | NONCHARGEABLE | |
| Arbitration & Bargaining: | |||
| Grievance Processing | $ 1,267 | 1,267 | - |
| Literature | 6,314 | 6,314 | - |
| Travel, Meals, & Lodging | 8,765 | 8,765 | - |
| Personnel Expenses: | |||
| Employee compensation | 17,050 | 16,752 | 298 |
| Employee Benefits | 2,488 | 2,444 | 44 |
| Payroll Taxes | 1,918 | 1,884 | 34 |
| General & Administrative: | |||
| Bank Service Charges | 1,797 | 1,766 | 31 |
| Childcare | 25 | 25 | - |
| Depreciation Expense | 35 | 34 | 1 |
| Liability Insurance | 326 | 320 | 6 |
| Office Supplies | 319 | 313 | 6 |
| Reimburseable Expenses | 1,008 | 990 | 18 |
| Professional Fees - Accounting | 1,419 | 1,419 | - |
| Telecommunications & Telephone | 3,367 | 3,308 | 59 |
| Other Expenses: | |||
| Postage and Delivery | 3,710 | 3,645 | 65 |
| Printing and Reproduction | 1,602 | 1,574 | 28 |
| Total Expenses | 51,410 | 50,820 | 590 |
| Percentages | 98.85% | 1.15% |
NOTES TO THE CASH BASIS SCHEDULE OF
CHARGEABLE AND NONCHARGEABLE EXPENSES
- Contract preparation, negotiation and ratification work
- Contract administration including grievance handling and arbitrations
- Bargaining Unit Membership education related to collective bargaining
- Internal union governance and administration
- Training and education on representational matters
- Lobbying activities concerning contract ratification and contract implementation
- Activities to elicit outside support as to collective bargaining or representational matters
- Activities designed to preserve established bargaining unit rights and support
- Litigation concerning representational matters
- Partisan or nonpartisan political activities including voter registration drives, support for political candidates or parties, and activities related to pending legislation or ballot initiatives
- Activities directed towards persons not represented by the union including contributions to outside labor or charitable organizations and affiliation fees or activities related to other unions or labor councils
- Organizing activities designed to acquire new members or obtain new representation rights
- Training and education on nonrepresentational matters
- Litigation on nonrepresentational matters
- Arbitration & Bargaining expenses are fully chargeable. They include grievance processing, literature, and travel expenses related to bargaining and labor relations issues.
- Personnel Expenses: Personnel expenses include employee compensation, employee benefits, and payroll taxes. They are allocated by a ratio of time spent in chargeable and nonchargeable activities. The ratio is based on guidelines developed by CUE's management in consultation with CUE's legal counsel as reflected in the Staff Activity Reports. For the period being reported on, 98.25% of staff time was devoted to chargeable activities.
- General & Administrative Expenses: General and administrative expenses include bank service charges, childcare, depreciation, liability insurance, office supplies, reimbursable expenses, professional fees, telecommunications & telephone. Allocations of these expenses are based on the salary ratio except for the following: Professional fees-accounting are 100% chargeable, and childcare and reimbursable expenses are allocated based on specific identification. Reimbursable expenses represent out of pocket expenditures by officers and staff, primarily for copying, postage, travel, and meals for union governance activities.
- Postage, Delivery, Printing, and Reproduction expenses are for both general & administrative and arbitration & bargaining purposes, and for this reason, are allocated based on the salary ratio. These expenses include postcard development and printing charges, mailing house handling fees, and mailbox rental fees.
- Legal: Legal fees incurred in representing the union and members of the unit in grievances and arbitrations, unfair labor practices, administrative proceedings, investigating, researching and attempting to resolve issues which involve the rights of unit members are fully chargeable. No legal fees were paid this period, however, Note 7 to the financial statements discloses legal fees payable of $14,469.
- Donated Services are allocated according to the chargeable nature of the activity. No expenses were recognized this period, see note 4. These services, if recognized would have been fully chargeable since they concern contract negotiations.