Collage of Caterpillar factory employees
Collage of Caterpillar factory employees

Our Position on Unions

We expect to conduct our business and treat our employees such that they do not feel the need for representation by unions or other third parties. Our employees have the right to decide that for themselves. We feel that employees also have the right to make an informed choice by understanding both sides of the issues and the risks.

This website is intended to provide employees with the facts and information on those issues. 

What is the IAM?

The International Association of Machinists and Aerospace Workers (IAM) began in the late 19th century as The Order of United Machinist and Mechanical Engineers, a union for machinists and engineers working in the railroad industry. Eventually, this union branched out to include workers in a variety of fields, including aerospace, automotive, and even woodworking.

Over the years, this union has faced high profile corruption charges, numerous election scandals, a heated rivalry with an independent airline mechanics union, and a variety of member-driven lawsuits, including several charges of violating their members rights to refuse to fund the union’s political interests.

of

It all adds up to a significant loss of membership and power – which may make you wonder, “Is this the group of people I want representing my interests?” Take a look at some examples of corruption from the IAM:

 

IAM’s Membership is Dropping

Decline in membership. Overall, union membership has steadily fallen since the heydays of the late ’40s and ’50s. The IAM membership is following the same trend. Since 2000, the union has lost over 200,000 members.

of
of

Source: Bloomberg BNA

New Members? Not Exactly

The union is desperately trying to increase its membership through organizing campaigns like this one.

The union filed 1,314 representation petitions for election with the National Labor Relations Board (NLRB) in the last 10 years, but was only able to win 678 elections, or about 52%.

of

Source: Bloomberg BNA

Finances

The IAM doesn’t represent you for free. The IAM is by no means a charity. It’s a big business, surviving on the dues, fees, and fines of its hard-working members. The IAM is required each year to file a document called a "LM-2", which reports the union's most recent financial revenues.  See the IAM LM-2 Report.

The IAM's 2023 LM-2 Report states that the union collected more than $184 million in cash receipts.

of

Where's that money going?
 

Union Officials

The union paid more than $25 million for the combined salaries and expenses of its officers and employees.

Union Members

In 2023, the union collected over $184 million, but how much did it spend on behalf of individual members? Well, according to the latest LM-2, the union responded to this item as follows:

of

Source: Bloomberg BNA

 

$79,642 on behalf of 529,819 members is about $0.15 per member. It hardly seems worth it.

To Affiliates of Funds Collected on Their Behalf $30,604,559
On Behalf of Individual Members $79,642
Direct Taxes $8,483,783

IAM Spending

The chart below shows how the IAM paid out $198,054,117 - $13.7 MILLION more than they collected.

of

Source for all figures: 2023 IAM LM-2 Report

*Other: Contributions, Gifts, and Grants, Per Capita Tax, Strike Benefits, Fees, Fines, Assessments, etc., Supplies for Resale, Loans Made, Repayment of Loans Obtained, To Affiliates of Funds Collected on Their Behalf, On Behalf of Individual Members, Total Withheld But Not Disbursed.

Constitution

IAM’s rules and regulations are designed to govern and control the activities of their members, both on and off the job. The union’s rules and regulations are defined in an important document called the Union Constitution.

of

Money, Money, Money

The union is serious about collecting money from members as the constitution states:

“The revenue of the G.L. shall be derived from the sale of supplies, collection of dues, per capita tax, initiation fees, reinstatement fees, the income from the publication of THE JOURNAL, interest, investments, and such special assessments as may be levied from time to time.” — Article XII, Section 1

 

Union Power

If members wonder who really runs the union, the constitution points out that:

“The I.P. [International President]… shall enforce the laws of the I.A.M., its policies, rules and regulations approved by the E.C. [Executive Council] and bylaws of L.Ls. [Local Lodge] and D.Ls. [District Lodge] approved by the I.P., and decide questions of order and usage and constitutional questions…” — Article VI, Section 1

 

Rulebreakers

The union spells out the “Trial of a Member” who violates their constitution in Article L, Section 5. Members who commit violations may be charged, tried and disciplined by the union.

The Union Constitution restricts the freedom of their members and violations of these rules can and do result in disciplinary action, including fines, for their members. The fact remains that the only way to avoid having to work with these restrictions is to avoid working under a union.