Dues increase fails; UTU Humiliated Before AFL-CIO

A proposed $5.00 per month UTU dues increase that failed to gain a two-thirds majority of delegates, has forced the United Transportation Union to renege on its intent to rejoin the AFL-CIO. The lack of passage has also resulted in the elimination of a planned upgrade in office computers. Despite the delegates having voted against an increase for these purposes, financial concerns have resulted in the UTU electing to increase their International dues $2.00 per member, the largest single increase they can make without member approval, effective January 1, 2006.  

"It is a sad day when the minority can dictate the future of our union," said UTU International President Paul Thompson, apparently upset with the UTU membership's exercise of their democratic rights. A UTU committee will meet in Cleveland to make what Thompson said will be "recommendations as to what immediate financial streamlining will be necessary to assure the UTU's financial security and operational effectiveness."

The UTU’s 2004 LM-2 filing which incidentally was 6 months late, undoubtedly played into the convention delegates thinking. Those in attendance could not believe that the disgraced past President, Byron Boyd, who was convicted of malfeasance and is serving prison time actually received payments from the UTU totaling $80,625 for so-called “service” to the union. Many felt he should have been listed under liabilities where he belongs.

One look at page 3 where liabilities are actually listed tells a very sad UTU story. In 2003 the UTU listed liabilities totaling $90,376. Astoundingly, in 2004 the UTU has listed total liabilities of $7,578,990 including a $2.5 million dollar loan from their insurance company and a 4.5 million dollar loan from a commercial bank. These liabilities were not even offset by the sale of one of their last remaining assets, a building and condominium in Washington for $2,858,817 that had to be liquidated to cover operating costs. Delegates to the UTU convention apparently felt that UTU officers who have been on a spending binge like college kids with their parent's credit card, had to be reigned in.

Much to the chagrin of the UTU officers, their International has also been forced to cancel its contract with the Miami Beach Fontainebleau Hotel to host the planned 2007 UTU convention. The poor fellows may have to remain in Cleveland for their annual meeting.

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