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The Council 65 Executive Board met on April 22, 2010 in Alexandria, MN. One of the main topics on the agenda was discussion of the progressive dues system set to be implemented on July 1, 2010. As that date moves closer to reality, members have voiced objections and concerns about the system; many are upset that an increase will occur when salaries and wage increases have remained flat in this depressed economy. The Executive Board listened to the Director, and asked several staff representatives who were in attendance as to what is going on with locals and members. The discussion was lengthy and in depth as to the pros and cons of delaying implementation, or moving forward as directed by the membership at the last Council convention who passed the resolution on the new dues system. When it was all said and done the motion to move forward passed on a 9 - 2 vote in favor.
Please keep in mind that this system will provide a sense of fairness in dues assessment for the first time in the history of Council 65. A truly progressive system is based on an “ability to pay” determined by a person’s earnings. The only way the system works is the balance that is struck by those who will be paying more is offset by those who will pay less. For the Council, the system is designed to be” revenue neutral” while allowing us to maintain the staff and services we currently provide. The diversity of the membership of Council 65 presented a real challenge when it came to developing a new dues system, but this plan virtually resulted in 50% of the members seeing a decrease in dues, and the other 50% seeing an increase. Any and all change does not occur without challenges, resistance and tough choices. The Executive Board believes they did what was in the best interest of the members and the long term survival of Council 65.
Another issue addressed at the board meeting was the endorsement of Lee Saunders for International Secretary/Treasurer. Long time Sec/Treas Bill Lucy has announced his retirement from AFSCME after a long and memorable career with AFSCME. Lee Saunders is currently a special assistant to President McEntee and has worked with Council 65 for many years on a variety of issues. The Executive Board unanimously passed a resolution of support for Lee Saunders.

AFSCME Council 65 covers the entire state of Minnesota, with the exception of the State employees, Metro Minneapolis/St Paul area, and metro Duluth and St. Louis County Employees. That means we go from International Falls to Worthington to Rochester. We have staff all over the state who service their immediate area. Council 65 works to improve the pay and working conditions of its members and is committed to winning respect and appreciation through strong contracts for the public employees of Greater Minnesota
FREQUENTLY ASKED QUESTIONS ON THE NEW DUES STRUCTURE
EMPLOYERS:
(1) If the employee works full time/ 12 months per year or 2080 hours per year and makes $16.79 per hour or more – they will pay the maximum monthly assessment of $47.00. ($16.79 X 2080 hr = $34,923.32) $34,923.32 / 12 mos = $2,910.26 ; $2,910.26 X .01615% = $47.00
(2) The annual maximum assessment for 2010 is $47.00 p/month or $564 per year (12 months) – since the system starts in July the annual maximum is $282.00 for the balance of 2010.
(3) For part time employees the multiplier of .01615% is the simplest and best way to calculate the dues. Hours worked per pay period X base hourly rate of pay X .01615 = dues per pay period.
(4) The Council will not be financially contributing to any payroll updates or modifications that you have to make. The law provides that the Employer shall deduct the dues from the members and remit to the Council. We will work with you to minimize the transition process as best as we can.
(5) BASE PAY ISSUES:
The basic premise on the assessment of dues is that dues deductions should be calculated on the base pay for the employee, if at all possible with your payroll system. Important exclusions would be overtime pay; holiday premium pay; Sunday or weekend premium pay; shift differential; longevity pay. We understand that some payroll systems will not allow for a separate deduction or calculation of base pay simply to deduct Union dues. We ask that you make a good faith effort to utilize the base wage rate if at all possible. On holidays, eight (8) hours of straight time pay should be included in the calculation, any premium pay would be excluded. If your payroll system will not allow you to utilize base wage rates and includes shift differential, or other premium pays, then dues will be deducted on the rate of pay utilized.
(6) PER PAYPERIOD DEDUCTIONS:
The new dues system is built on the premise that it is preferred by the members to deduct dues each pay period rather than once per month. This will keep the dues deduction current, in conjunction with the employees pay, it balances the payments/deductions which usually makes budgeting easier (for members), and it should make the transition easier for payroll departments. FOR EXAMPLE: FOR 2010 - THE MAXIMUM ANNUAL DEDUCTION IS $564.00. Assume there are 24 pay dates per year. If the employee makes more than $16.79 per hour, and works full time 2080 hours per year, they will reach the monthly max of $47.00 p/mo and pay the annual max of $564.00. It may be easier to manually insert a deduction amount of $23.50 per pay period into the payroll and simply avoid any other calculations. If there were 26 pay periods the amount would be $21.69 per pay period. For employees who make less than $16.79 per hour, and/or work part time, the use of 1.615% would be necessary to make the correct deduction.
(7) VACATION PAY:
The base pay definition excludes – “vacation payout” what does this mean? Dues should be deducted from any combination of pay that makes up the regularly scheduled hours of work for the employee. A pay period may include the use of vacation, sick leave, comp time and regular wages. Regular dues deductions would be made in this instance, however in some labor agreements employees have the right to request a pay out from their comp time bank or in some cases from unused vacation. These payments are in addition to the regular pay and would not have dues deducted or should not be factored into the dues deduction calculation. A person separating from employment who will receive a vacation payout will not be assessed dues for such a payment.
(8) YEARLY MAXIMUM:
The memo sent out indicates that the annual maximum deduction for a member who is paying the maximum monthly deduction of $47.00 is $564.00 annually. We have to keep in mind that since we are implementing the system on July 1, 2010, that amount will be reduced by half to $282.00. The amount deducted for the first 6 months will not be factored into the last six (6) months of deductions. Keep in mind that many groups currently have more per month deducted than the Council 65 established dues rate. This added amount is returned directly to the Local for their treasury. Therefore we are not implying that a member cannot pay more than $564 for all of 2010. When we reference the annual maximum of $564 it is the amount the Council can assess, not the Local.
(9) WHEN SHOULD EMPLOYER REMIT PAYMENT TO THE COUNCIL?
Since the new system requires deduction each pay period, should we be sending a check into the Council each period? NO. Sending a partial payment makes it very difficult for us to process the member’s reimbursements. We ask that you send one check per month, with the employee roster. Inclusion of the employee’s hourly rate and hours of work and the amount of dues deducted would be ideal. If we can establish electronic communications of reports that would also be beneficial for us and hopefully for the Employer. (We may be looking into electronic deposit at some time in the near future)
(10) HOW DO WE CALCULATE BUS DRIVER RATES OR RATES FOR SCHOOL EMPLOYEES (9 months)?
It does not matter whether the individual is paid (has dues deductions) each pay period throughout the year or only during the nine months worked. The formula will be the same. The dues rate is computed as 1.615% of actual wages paid, not to exceed the dollar maximum per pay period for the monthly dues ($47.00). This would include base pay/special runs or trip pay/ - mileage in addition to route pay/ - waiting time pay if different than regular base pay.
EXAMPLE: For the data you gave me on Bus Driver wages, the expected annual wage of $13,572 paid over 18 pay periods would be $754 per pay period. Over 24 pay periods the wage would be $565.50 per pay period. At a $47 maximum dues rate, a wage of $1,455 per semimonthly pay period is needed to reach the Council 65 maximum dues rate for 2010. Even when paid over 18 months, the part-time Bus Drivers do not reach the maximum deduction wage.
Therefore, it will not matter whether Bus Driver wages are paid over nine or twelve months. All Bus Drivers will pay the same annual dues. ($13,572 * 1.615% = $219.19).
The deductions per pay period will be different. Over 24 pay periods, the rate will be $9.13 per pay. Over 18 pay periods that dues rate will be $12.18 per pay. Rates will also vary by person and by pay period if hours worked or routes change. Rounding of pennies may make a slight difference it the total dues paid over the year.
This method should also make the process easier for the employer – compute dues only on the actual wage payment made to each Bus Driver or other 9 month employees.
11. CAN WE UTILIZE PAY DATES, RATHER THAN PAY PERIODS TO CALCULATE THE DUES DEDUCTIONS?
YES. Many counties have shifted to pay dates and these can be calculated far out into the future, they don’t reset at the end of a calendar year or fiscal year. This is an acceptable system for dues deductions.
12. WHAT HAPPENS WITH FAIR SHARE FEE MEMBERS AND THEIR DUES DEDUCTIONS?
For employees who opt to be a fair share fee payer, rather than a full dues paying member, it is a two part calculation: First run the original calculation as per other employees; second multiply that amount calculated by .8131%. EXAMPLE: Employee earns $18.00 per hour and works full time.
Since we know that the person will be paying at the maximum of $47.00 per month, if we are using the annual maximum payment divided by pay periods or pay date system of calculation we can take that amount and multiply it times .8131 which is this years fair share fee amount.
$47.00 X .8131 = $38.21 per month is the assessment. Or $564 annual amount X .8131 divided by 24 pay periods = $19.10 per pay period for a 24 pay period system.
If you have additional questions email to Lynn or Edonna
lynn.warwas@afscmecouncil65.org or edonna.spokely@afscmecouncil65.org
Or call toll free @ 1-888-474-3242
The winners of the scholarships are:
District 1: Calissa Treat - Local 510 - International Falls
District 2: Jonathan Tracy - Local 2685 - South Haven
District 3: Nicole Facile - Local 1687 - Ivanhoe
District 4: Sara Bjerk - Local 1353 - Crookston
At Large: Brandon Weeks - Local 1243 - Milaca
At Large: Jacob Ojala - Local 295 - Ely
Congratulations and good luck!
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