2009 Bylaw & Policy Conference – April 25, 2009

Secretary-Treasurer Teresa Magee's Report

"I would like to thank you for taking the time to participate at this year’s conference. You are an important part of the strength of our great locals. I’ll be reviewing the financial statements for 2007 and 2008 and the budget for 2009. The local union’s financial statements are audited by an outside firm, BDO Dunwoody, and these numbers reflect their audit.

The general fund, also referred to as the operating fund of the Local Union, is where the dues revenue is collected and disbursements, or expenses, are paid to run the local union. Our revenue has increased in the last two years based mainly on the dues structure that was put in place by the members in 1995. Instead of a fixed rate, dues are calculated by multiplying your weekly wage by .6 and adding 25 cents. That means as our members enjoy negotiated wage increases, the dues increase accordingly, and the local union can keep up with the rate of inflation as costs rise. And of course it does cost money to run a union.

Last year’s total expenditures ncreased over the previous year. These costs reflect the many services provided to the members including staff, office equipment and supplies, donations and many other aspects of operating the Local Union. Grievances and arbitrations are one of the most important ways we as a Union can enforce our members’ rights and the provisions of the collective agreements we negotiate. Both Shawn and I make it a priority for the Local and representatives to make every effort to process each grievance within a certain time frame to ensure members concerns are resolved as quickly as possible.

Over the last two years, we reduced our spending when it comes to legal fees. We implemented a comprehensive & flexible scheduling system, which allows for the majority of our arbitrations and legal cases to be handled by in-house lawyers, with less need to send cases to outside law firms. Not only does it lower our costs, but it also lets us provide superior service and better representation to the members.

The use of vehicles and wireless communication devices are a necessary expense when it comes to keeping in contact with the members and the office. From 2007 to 2008, the money spent operating our vehicle fleet decreased, partially due to the decline in fuel costs and lower costs to purchase vehicles in today’s economic climate. When it comes to wireless communication, we now have 70 representatives within the Local Union using BlackBerries. Between 2007 and 2008, the cost of having these wireless devices increased. Our representatives are now able to communicate with the office, employers and most importantly, the members, while on the road, allowing for greater servicing opportunities.

Now let’s look at Negotiations. For bargaining, we spend money on meeting rooms, per diems and lost wages for negotiating committees and other associated costs. Last year, we had some very large sets of bargaining, namely Zellers, Food Basics, Cadbury Adams and Pharma Plus.

In the final numbers for 2007 and 2008, the Local had a surplus. As in previous years, we have budgeted a zero surplus and a zero deficiency. In other words a balanced budget. Both President Haggerty and I believe in a prudent approach to forecasting revenue. We base our predicted expenses on past years’ performance after careful analysis in all areas to reduce and control costs. Looking ahead, some extra costs we will run into this year.

We will need to provide more computers for Union Representatives in the field and we expect an increased number of Blackberry users as well. We have adjusted our budget for conference expenses such as NDF and the Bylaw & Policy to meet the rising costs of this as well as the Local Union’s normal operating costs, which will increase with inflation. The other expenses we have budgeted will change minimally from last year because we expect to control costs in a diligent manner. We are cautiously optimistic that we will achieve a balanced budget by year end of 2009.

Moving to Local 633; in 2008, the dues, initiation fees and interest totalled an increase over 2007. Expenses for Local 633 are essentially comprised of per capita payments. Local 633 continues to collect its own dues and pays per capita expenditures. Local 175 provides all of its servicing requirements and pays all other expenses. In return, Local 633 transfers excess revenue to Local 175.

Revenue for the Local 175 Strike Fund comes from four sources. The Locals 175 & 633 General Fund provides 25 cents per full-time member and 15 cents per part-time member each month. Secondly, we receive income from investments. Thirdly, the Local Union receives reimbursement from the International Strike Fund, the UFCW National Council and the UFCW National Defence Fund. And finally, our fourth source of income is from outside organizations that make contributions when our members are on strike.

In 2007 and 2008 we experienced a decrease in revenue for the Strike Fund because there are fewer members and the economic market does not provide the same returns as it did a year earlier. Our expenditures are basically in the form of per capita tax payments to the International strike fund, the National Defence Fund, strike and picket line expenses, strike pay and special assistance to our members on strike. We also assist other unions whose members are on strike. These expenditures were higher in 2007 due to the fact that our members at Dollar Thrifty were on strike in the Fall of that year. We will continue to build on the assets of the Strike Fund to ensure that financial support is always available to our members in any future strikes.

Sisters and Brothers: I believe that the local union’s financial position is stable and will only continue to improve. We are financially prepared for the future.

Before I conclude my report I would like to touch on a couple areas we are moving toward in the near future: We are reviewing all our service contracts with all our providers. For example, we have switched our cellular and BlackBerry service from Bell to Telus and by leveraging our buying power, we anticipate savings. At the last conference we reported that we would be working with our fleet provider General Motors to test new alternative fuel vehicles, with an eye to adding those types of vehicles to our fleet as part of our commitment to the environment. I can update you that we have now added two gas/electric Malibu hybrid vehicles to our fleet and have introduced a number of four cylinder vehicles in the metropolitan Toronto area.

In closing, I would like to thank you for your hard work and dedication our great local unions. We appreciate your continued support and guidance so your union can grow, evolve and move towards a better quality of life for us all. Thank you."