General Membership Meeting Highlights
February 8, 2014 Coming Soon
"THE REAL GOLDEN RULE"
FIVE REASONS FOR WRITING A CHECK
FROM UNION FUNDS
Dear brothers and sister of the St. Louis Gateway DAL 8, I pray all is well in everyone’s household. My first 5 months in office have been extremely busy.
As officers, we are in charge of ensuring our union’s financial viability. It is our duty to be fiscally responsible with our union’s funds. Each officer plays an important role within our union. As officers, we have to abide the law and regulations on writing check from union funds.
The Law states in Section 501 (a) of the Labor Management Reporting and Disclosure Act of 1959, as amended (LMRDA); “The officers, agents, shop stewards, and other representative of a loabor organization and its members as a group.” We have all been elected or appointed to positions of trust. The membership trust that we will run the organization with their best interest in mind and maintain the financial viability of the union. The LMRDA further states, “It therefore the duty of each such person..to hold it money and property solely for the benefit of the organization and its members.” The law tells us specifically how we derive the authority to handle the union’s money and property. “….to manage, invest and expend the [money and property] in accordance with it constitution and bylaws and resolutions of the governing bodies adopted there under.” It is from this language the we derive our “Five Golden Rules for Spending Union Funds.”
1. The Law
This is a given. We must pay taxes and have workers compensation insurance. No motion or approval is needed to write a check for such expenditures.
2. The Constitution and Bylaws
This is a union’s governing document. It is a living document that was created by the membership and may be changed by the membership to suit the union needs. Expenditures such as salaries, sending delegates to a convention, and allowing officers the ability to spend money may be found in the constitution.
3. Motion passed by the membership
The membership is the highest-ranking body of a union. The membership may pass a motion for expenditures, but they should be made aware of the financial status of the union so that they may make wise decisions and not put the union in financial peril.
4. The Executive Board of Officers, as permitted in the constitution or by the Membership.
The union’s constitution may give the executive board or certain officers the authority to spend. These officers are held accountable for these expenditures and submit the proper documentation, including receipts.
5. The Budge as adopted by the membership.
The budget is an essential document that each union should have. It helps the leadership plan for the coming year and allocate funds appropriately. The local should adopt a budget at the end of the preceding year or the beginning of the fiscal year. This will allow the President and Secretary-Treasurer take care of necessary and regular occurring expenses without needing the membership to vote on such expenses each month.