The way our union spends its money speaks volumes about its values and priorities. The union's finances are only one area that needs transparency, just as members should know where they are in the grievance process (i.e., tracking) once a grievance has been submitted. Unions are required by law to file annual financial reports, known as the LM-2 or sometimes the LM-3, for an intermediate body like our Local Joint Executive Board.
The attached file presents data points and a pie chart showing the percentages of total disbursements each listed category represents. The source of this data was STATEMENT B - RECEIPTS AND DISBURSEMENTS from the LM-2 report filed by the Bartenders Union Local 165 for the period ending 12/31/24. Total receipts were $3,754,086 and total disbursements were $3,592,386
The categories representing the largest pieces of the disbursements pie were Representational Activities (38.34%) at $1,377,287, as referenced in Schedule 15, and Per Capita Tax (29.32%) at $1,053,275. Per Capita Tax is paid to other organizations, such as the Local Joint Executive Board, the AFL-CIO, and our International Union. However, the only itemized account of spending in Schedule 15 reporting Representational Activities is $85,781 for Legal services. That does not adequately explain the other $1,291,506 reportedly spent on Representational Activities.
Some years ago, the Local reported arbitration costs as a line item, but that has not been the case in recent years. Perhaps the number is unflattering, suggesting that few cases are arbitrated. In discharge cases where an arbitrator reinstates the grievant with full back pay, the full cost of the arbitration is paid by the employer. In other cases (i.e., what is known as interest arbitration), the costs are shared equally between Labor and Management. Yet even if we won every discharge case, we would still be paying our own attorney's fees. Somehow $85,781 for a year of Legal services doesn't sound like servicing grievances is a top priority.
Although the pandemic turned our finances on their head, it is still useful to look at the difference between receipts and disbursements over several years, which suggests deficit spending when disbursements exceed receipts. Red numbers indicate deficit spending.
