Article 10

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Article 10

Revenues, Bonding, Examination and Audits
of Subordinate Bodies, and Disposition of Asset

Article 1 ] Article 2 ] Article 3 ] Article 4 ] Article 5 ] Article 6 ] Article 7 ] Article 8 ] Article 9 ] [ Article 10 ] Article 11 ] Article 12 ] Article 13 ] Article 14 ] Article 15 ] Article 16 ] Article 17 ] Article 18 ] Article 19 ] Article 20 ] Article 21 ] Article 22 ] Article 23 ] Article 24 ] Article 25 ] Article 26 ]

Revenue
Section 1. The normal operating income of the International Brotherhood of Teamsters shall be derived as follows:

(a). Charter fee, which includes charter, seal and all other organization supplies, seventy-five dollars ($75.00).

(b). Sale of other supplies.

(c). Initiation and reinitiation fees and per capita tax.

Assessments For Emergencies
Section 2. Whenever the assets of the International Union, except the Washington, D.C. real properties, run below twenty million dollars ($20,000,000.00) the General Executive Board shall levy an assessment of one dollar ($ 1.00) per member per month on all Local Unions, until such assets reach twenty-five million dollars ($25,000,000.00). Any Local Union failing to pay the assessment shall not be entitled to any benefits of the International Union. After being properly notified and given a reasonable length of time, if the Local Union further refuses to pay the assessment, said Local Union shall be suspended. Any Local Union failing to pay the assessment shall not be represented at the International Convention.

Payment of Initiation Fees, Reinitiation Fees and Per Capita Tax
Section 3 (a). Each Local Union shall pay to the General Secretary-Treasurer the sum of two dollars and fifty cents ($2.50) for every initiation fee or reinitiation fee collected.

(b). Each Local Union shall pay to the General Secretary-Treasurer a per capita tax of three dollars and ninety cents ($3.90) per month, payable for the current month not later than the twentieth (20th) day of the succeeding month unless otherwise determined by the General Executive Board in extreme hardship cases.

Per capita tax must be paid not only on dues-paying members but also on all persons paying agency shop fees, periodic and other service fees to the Local Union.

Persistent failure of a Local Union to comply with this subsection shall subject the Local Union to charges by the General Executive Board only.

(c). The General Secretary-Treasurer shall receipt for all initiation fees and per capita tax.

(d). Effective July 1, 1986, dues of members of the International Union, payable through their respective Local Unions, shall not be less than five dollars ($5.00) per month. Employees in bargaining units which are organized after July 1, 1986 and who become members after that date and whose hourly earnings rates are less than six dollars ($6.00) per hour shall pay dues equal to one time their hourly earnings rate, but no less than five dollars ($5.00) per month. Members whose hourly earnings rates are six dollars ($6.00) per hour or more shall pay dues equal to two times their hourly earnings rate per month.

Effective July 1, 1986, dues rates shall be adjusted to reflect any changes in earnings rates which were implemented during 1986 and which would have required a dues adjustment greater than two dollars ($2.00) per month based upon the two times the hourly earnings formula. Dues shall be adjusted by an amount necessary to achieve two times the hourly earnings rate. All future dues adjustments shall be calculated based upon the member's hourly earnings rate. The dues rates shall be adjusted in order to maintain a dues rate based upon the formula set forth above. Dues shall be adjusted whenever an increase in hourly earnings is provided in a collective bargaining agreement, to become effective the first day of the second calendar month following the month in which the hourly increase is implemented. If a contractual wage increase is not implemented on the date provided in the collective bargaining agreement but is subsequently implemented on a retroactive basis, any resulting dues increase shall be implemented as provided above, but shall be effective for the month originally due. The monthly dues of salaried officers and Business Agents shall be equal to the highest rate of dues paid by any member of the Local Union.

Nothing herein contained shall be construed to prohibit any Local Union from adopting a dues scale higher than the one provided herein, either by continuance of established dues formulas or by Local Union action in accordance with applicable law.

The General Executive Board shall have the authority to waive any of the foregoing increases in extreme hardship cases.

The hourly earnings are the hourly wage rate plus lump sum payments where such payments are in lieu of hourly wage increases and commissions where applicable, exclusive of overtime, premium pay or fringe benefits. When calculating the rate of monthly dues based upon the formula set forth above, the hourly earnings shall be multiplied and rounded to the nearest whole dollar.

Questions relating to the determination of the "hourly earnings" and problems which arise generally over the interpretation of this subsection shall be resolved by the General Secretary-Treasurer with the approval of the General Executive Board.

(e). Area Conferences shall be supported by the payment of a monthly twenty cents (20c) per capita tax by the International Union to the Area Conference. Local Unions affiliated with Area Conferences shall pay a minimum of ten cents (10c) per month per member to their respective Area Conferences. However, no Local Union shall pay a per capita tax to any Area Conference or other subordinate body for any member of a bargaining unit which was organized after July l, 1986 and whose dues rate is six dollars ($6.00) per month or less.

Preferred Payment of Per Capita Tax
Section 4. All per capita tax due the International Union and chartered subordinate bodies shall have priority over any other bills or obligations of the Local Union. The order of priority shall be as follows: (1) International Union; (2) Area Conferences; (3) Joint Councils; (4) State Conferences; (5) other chartered subordinate bodies.

For a Local Union or any other subordinate body to be in good standing with the International Union and other subordinate bodies with which it is affiliated, it must be current in the payment of its per capita tax and other obligations owing to the International Union and to all other subordinate bodies with which it is affiliated.

Payment of Dues and Fees and Receipt Therefor
Section 5 (a). Any member paying his initiation fee, monthly dues, assessments, or reinitiation fees shall be provided with a receipt by the Local Union in a manner prescribed by the General Secretary-Treasurer as approved by the General Executive Board.

No other system of receipting for initiation fees, monthly dues, assessments or reinitiation fees will be recognized by the International Union.

(b). Every member when requested to do so by a proper representative of the International Union or subordinate body shall be required to present evidence establishing membership in good standing.

(c). All members paying dues to Local Unions must pay them on or before the last business day of the current month. Membership dues to Local Unions are due on or before the first day of the month and must be paid on or before the last business day of that month. Any member failing to pay his dues at such time shall not be in good standing for such month but may restore such good standing for such month for the purpose of attending meetings, nominating, voting and participating in affairs of the Local Union by the payment of his delinquent dues prior to said meeting. Payment of such dues after their due date shall not restore good standing status for such month or months in computing the continuous good standing status required by Article II, Section 4 of this Constitution as a condition of eligibility for office. However, a member on dues checkoff whose employer fails to make a proper deduction during any month in which the member has earnings from which the dues could have been deducted, shall not lose good standing status for that month. In such an event, the Local Union shall notify the member of his employer's failure and payment shall be made by the member within thirty (30) days of said notice in order to retain good standing status.

Any member who shall be three (3) months in arrears in the payment of dues, fines, assessments, or other charges, shall automatically stand suspended at the end of the third (3rd) month, and shall not be entitled to any rights or privileges of membership. Local Unions may provide suspension, expulsion or other penalty for a lesser period of arrearages. Any member who has been automatically suspended for failure to pay dues and other charges shall be under a continuing obligation to pay dues during the period of his suspension. Payment of dues shall not restore good standing status if fines and other charges due are not paid. In addition to requiring the payment of delinquent dues, the Local Union may adopt a Bylaw provision requiring the payment of a reinitiation fee for entitlement to the rights and privileges of membership. The Local Union Executive Board shall have the power to waive on a non-discriminatory basis the payment of delinquent dues and/or reinitiation fees. Per capita tax shall be paid on all delinquent dues collected.

(d). A Local Union may provide in its Bylaws for the payment of quarterly dues, provided such Bylaws are approved by the General President of the International Union. In any instance where a Local Union has provided for the payment of quarterly dues under this Section, a member, to be in good standing for each month of the quarter, must pay his dues for each quarter on or before the last business day of the first month of the quarter.

(e). A Local Union by Bylaw amendment may waive the obligation of shop stewards to pay dues, provided that the waiver shall in no way affect the eligibility of such shop stewards to run for office or their entitlement to any other rights or benefits, and further provided that per capita taxes due to the International Union and subordinate bodies shall be paid by the Local Union.

Order for Supplies
Section 6. All payments of fees and orders for supplies must be made on the regular official remittance statement and supply order blank, and all money sent to the General Secretary-Treasurer must be sent by Local Union or cashier's check, or post office or express money order.

Bonding
Section 7 (a). All officers, Business Agents and others who handle funds and property of subordinate bodies shall be suitably bonded. The original bonds shall be retained in the files of the subordinate bodies, and copies shall be promptly forwarded to the office of the General Secretary-Treasurer. The General Secretary-Treasurer may direct an increase or decrease in the amount of bonds when he deems it necessary or advisable.

(b). The General President or the General Executive Board is empowered to suspend or revoke the charter of any affiliate or to place any affiliate in Trusteeship for failure to comply with the provisions of this Section.

Filing of Monthly Reports by Local Union Trustees
Section 8 (a). If a Local Union has not provided for the payment of quarterly dues by a majority of its members, the books of the Local Union must be examined monthly by the Local Union Trustees and the Trustees shall make a monthly report of such examination on forms prescribed by the General Secretary-Treasurer. If a Local Union has provided for the payment of quarterly dues by a majority of its members, the books of the Local Union must be examined at least quarterly by the Local Union Trustees, who shall make a quarterly report of such examination on forms prescribed by the General Secretary-Treasurer. The reports shall be forwarded to the office of the General Secretary-Treasurer by the Local Union Secretary-Treasurer and copies of the reports shall be maintained for the period of time required by law.

(b). The Trustees must sign the books of the Local Union if the Trustees have found them correct and the bank balances verified. In the event that a Trustee declines to sign the books, the Trustee must state in writing to the Local Union Secretary-Treasurer and to the General Secretary-Treasurer his reasons for declining to do so. In the event of the unavailability of a Local Union Trustee, the remaining Trustees or Trustee shall make the monthly examination of books and the monthly report.

Deposit of Money
Section 9. Subordinate bodies are autonomous and may keep their money deposited in their names in such accounts and depositories as they deem appropriate. The subordinate bodies may also invest in property, real and personal; provided, however, that all investments will be such as may be made by fiduciaries under the laws of the Commonwealth of Massachusetts. When disbursements of subordinate bodies are made by check, the check shall bear the signature of at least two (2) elected officers in the manner provided by the Bylaws of the subordinate body; when disbursements are made by cash they shall be verified by receipt or other evidence of payment.

Subordinate bodies may provide for direct and indirect loans for such purposes and with such security, if any, as they deem appropriate and with such arrangements for repayment as they deem appropriate.

Audit of Books of Subordinate Bodies
Section 10 (a). The General President or General Secretary-Treasurer at his discretion may cause the audit or examination of the books of any subordinate body at any time to the extent that he may determine, such audit to be conducted by any person so designated.

(b). Officers of a subordinate body shall give for examination to the representative delegated to conduct the audit, all books, bills, receipts, vouchers and records, bonds, securities or other evidences of ownership to property or investments of the subordinate body whenever requested.

(c). Any officer of a subordinate body refusing to turn over the books, bills, vouchers or records to the delegated officer shall be subject to discipline under the provisions of Article XIX, and shall be liable to expulsion by the General Executive Board. (See also Article VII, Section 7.)

(d). If the representative delegated to audit the books discovers any dishonesty or incompetency in the officers which warrants him to notify the General President and General Secretary-Treasurer, he shall do so and they shall take whatever action they deem advisable. The representatives auditing books shall make a report to the General President and General Secretary-Treasurer and shall have full power to investigate and examine all assets of the subordinate body wherever located including the right to obtain a certified balance sheet from the bank.

Arrearage in Per Capita Tax
Section 11. Where the books of a Local Union have been examined and audited and arrearages to the International Union or to any subordinate body thereof for per capita tax are found, the same must be paid immediately.

Penalty for Arrearage
Section 12. Should a Local Union become six (6) months in arrears for per capita tax to the International Union or any subordinate body, the General Executive Board shall, after proper notice and hearing, either revoke or suspend the charter, or direct merger or division of the delinquent Local. The General Secretary-Treasurer shall notify all Local Unions when two (2) months in arrears, but failure to receive such notice shall not prevent the suspension of the Local Union, should it become three (3) months in arrears. A Local Union which becomes three (3) months in arrears or has been suspended for failure to comply with an order of the General Executive Board, shall have a continuing obligation to pay per capita tax during such period of suspension.

Return of Funds, Books and Property Upon Revocation or Dissolution
Section 13. When the charter of a subordinate body is revoked, the subordinate body or its officers shall be required to turn over all books, documents, property and funds to the General President or his representative, or to the General Secretary- Treasurer of the International Union, and should a subordinate body secede, disaffiliate, or dissolve or be dissolved, or be suspended, or forfeit its charter, then all books, documents, property and funds shall likewise be turned over to the General President or his representative, or to the General Secretary-Treasurer to be held until such time as the subordinate body may be reinstated or reorganized. If no reinstatement or reorganization occurs within a period of two (2) years such funds shall be transferred to the general fund. However, in no event shall the International Union without its consent become liable for the obligations of a subordinate body which has seceded, disaffiliated, dissolved or been dissolved, or has been suspended, merged or has forfeited its charter.

Expenses Incurred in Recovering Property and Funds; Reorganization
Section 14. Whenever a subordinate body secedes, disaffiliates, or dissolves, or its charter is suspended or revoked, and demand is made upon such organization or its officers to deliver to the General President or his authorized representative the records, property and funds of such organization, and such demand is refused, then all expenses, of whatever nature, incurred by the International Union in recovering such records, property and funds, shall be a lawful charge upon the property and funds involved, and on recovery thereof, the International Union shall reimburse itself from the property and funds recovered. All property and funds shall be held by the International Union until reorganization has been effected and shall be returned to the subordinate body when the same has been reorganized. If no reorganization is effected within a two (2) year period, then all property and funds of such subordinate body shall become the property and funds of the International Union. Reorganization shall be effected by and under the direction of the International Union.

Waiver of Per Capita Tax and Fees
Section 15. In any situation involving new organization, reorganization, new affiliation, merger or revocation of charter, the General Executive Board is authorized to waive payment of per capita tax and any other fees owing to the International Union by a subordinate body, and any initiation fees, dues or other fees owing to a Local Union by any member or other person prospectively and/or retroactively, whenever the Board determines that such waiver is in the best interest of the International Union.

The General Executive Board shall have the power to waive the payment of any fees to the International Union or any subordinate body to implement any arrangement with any other international union providing for the transfer of members or the acceptance of members who may be on withdrawal card status.

 

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