The United Auto Workers union on Tuesday decided to amend its constitution to allow it to divert as much as $US110m from its emergency strike fund to other areas.

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According to Dow Jones Newswires, the nearly $1bn Strike Insurance Fund, designed to aid union local branches engaged in UAW-authorised strike activity, has ballooned to a historically high level and dwarfs the UAW’s other funds. It has not been tapped on a large-scale basis in recent years while members continue making compulsory contributions and the money in the fund earns interest.


At its leadership meeting in Las Vegas, the UAW asked 1,300 delegates to vote on a measure allowing the UAW to divert $60m from the fund over the next four years and increase the amount of rebates paid out from the fund to union branches and the UAW as a whole. An additional $50m is going to be funnelled to the UAW’s $161m general fund, which handles the majority of transactions for the UAW International Union, the parent organisation of over 800 local union offices, the Dow Jones report said.


The news agency said the UAW currently pays out rebates to locals and the parent organisation from the strike fund because it has become so large. If the fund should dip below $500m, the rebates will be cut off.


During an open-floor debate that preceded a `yes’ vote by the delegates, many attendees voiced support for the measure, citing the need for more money for organising, education and political action.

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While the UAW has threatened large-scale strikes against bankrupt parts suppliers, including Delphi, the union has turned down rhetoric in recent months as negotiations with suppliers progress, Dow Jones noted.


UAW president Ron Gettelfinger reportedly said an amended strike fund would still be capable of supporting a 153-week strike against Delphi, for example.


Under the current terms of the strike insurance fund, workers participating on picket lines are eligible for $200 per week in pay plus health care coverage and life insurance, the report noted.