F-6 Segregated Strike Fund

Whereas the Institute does not have a funded and segregated strike fund and employers view strike mandates with apprehension; and

Whereas the recent dues increase more than funds the anticipated legal and operational costs of the Institute;

Be it resolved that a segregated fund be established and used for any strike activity; and

Be it further resolved that $5 per month of union dues currently paid by Institute members be allocated to this segregated strike fund, effective January 1, 2019.

Resolutions Sub-Committee Comments: We already have a strike fund in place as of June 30, 2018 of $11.5 million. Annually, the Institute transfers on average $250K, based on the imputed interest earned on our reserves. The accounting for Strike Fund is already segregated as stated in the audited financial statements: Externally Restricted – Strike Fund. This fund is reserved for strikes.

Adoption of this resolution would require an accounting policy change and adjustments to previous audited financial statements. Currently, the strike fund increases by the annual returns on the Institute’s reserves and would be depleted according to actual strike expenses should they occur. Since the strike fund is externally restricted, the Institute cannot draw on this fund for other expenditures.

The costing of this resolution at $5 per member per month, based on a membership of 60,000, would be an additional $3.6M.