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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. |