The next step in understanding the UAW’s finances is to understand the allocation of dues to the local, International UAW, and the Strike and Defense Fund. This is also described in the UAW Constitution, Article 16. It is also described more succinctly in the International Trustee Reports, the external auditor section, Note 13. The big take-away is that the allocation of dues money to the local, International UAW, and the Strike and Defense Fund, varies based on the value of the Strike and Defense Fund.
This page does get into the weeds a bit. If the numbers or details scare or bore you, you might focus on the main takeaways I have at the bottom of the page.
To make this easier, I’ll just go with hourly workers. Salaried workers pay at rates described on the previous Finances page and are allocated in a similar manner to what is being described here.
Right now we are at the 2.5 hour monthly dues rate for private sector hourly workers, and 1.9 hours for hourly public sector workers. As of a few months ago (February 2025) the Strike and Defense Fund was valued at approximately $775,000,000 (with an additional $138,000,000 in unrealized appreciation that isn’t on the books with the cash accounting system).
The local collects all dues money. For private sector units, the first 2.0 hours gets split up so that 38% stays in the local, 32% goes to the UAW’s General fund, and 30% goes to the Strike and Defense Fund. The remaining 0.5 hours dues (if collected) goes directly to the Strike and Defense Fund. [Article 16, section 5].
For public sector units, the first 1.4 hours gets split up similarly. The remaining 0.5 hours dues (if collected), goes directly to the Strike and Defense Fund. [Article 16, Section 5].
Now the rebates, in Article 16, Section 13 of the UAW Constitution:
Section 13. For any month in which the net worth of the International Union Strike and Defense Fund is in excess of $500 million, the International Union Strike and Defense Fund will allocate the portion of dues income received in accordance with Section 5(a) or Section 5(b)(i)(3) of this Article as follows:
(a) 95% of the dues income received by the International Union Strike and Defense Fund pursuant to Section 5(a) or Section 5(b)(i)(3) of this Article will be rebated back to the Local Unions and the International Union General Fund, with 53% of such amount rebated to Local Unions and 47% of such amount rebated to the International Union General Fund. The rebates referenced in this subsection will be issued on a monthly basis.
The intent of this section is for the International to collect money for the strike fund, but because the strike fund happens to be relatively well funded, most of that strike fund money will get rebated to locals and the General Fund. If the Strike Fund gets low (<$500M), then these rebates stop in order to keep the money going to the Strike Fund where it is needed most.
I’ve often wondered why it has to be so complicated, why the dues that go to the Strike Fund couldn’t go directly to the General fund and locals. I’ve come to two conclusions. 1) “Possession is 9/10ths of the law.” The Strike Fund gets the dues money and keeps control, 2) It is a lot easier to stop a rebate than to get the word out and suddenly get several hundred locals to change the dues rate they remit to the International Union every month. So if/when the strike fund gets low, the money is already flowing through it and it won’t take any effort to just keep the money in the Strike Fund.
The rebates are only for the first 2.0 hours dues for hourly private sector workers, or the first 1.4 hours dues for hourly public sector workers. The additional 0.5 hours of dues, if collected, goes directly to the Strike Fund and is not included in these rebates and should be forgotten for now. The rebates work so that the Strike Fund ends up with 5% of the monthly dues, and of the 95% of dues left, locals end up with 53%, and the General Fund ends up with 47%. So this means that the locals will end up with 95% * 53% = 50.35%, and the General Fund 95% * 47% = 44.65% of the dues collected each month after the rebates are completed. So for locals, as already noted, their target is 50.35%. They have already received 38%. So their rebate will be 50.35% – 38% = 12.35% of the total dues. For the International’s General Fund, their target is 44.65%. They have already received 32%. So their rebate will be 44.65% – 32% = 12.65% of the total dues.
The International Trustees Reports include a table in Note 13 of the external auditor’s report that summarizes the above discussion:
| Allocation | Rebate | Dues Allocation After Rebate | |
| Strike and Defense Fund | 30% | -25.00% | 5.00% |
| General Fund | 32% | 12.65% | 44.65% |
| Local Unions | 38% | 12.35% | 50.35% |
| 100% | 0.00% | 100.00% |
So if that wasn’t complicated enough, let’s add the 13th rebate. Article 16, Section 13 (b):
(b) 5% of the dues received by the International Union Strike and Defense Fund pursuant to Section 5(a)(iii) of this Article will remain in the International Union Strike and Defense Fund to be used for the purpose of paying strike assistance benefits paid to striking members. In any month in which the actual strike assistance benefits paid to striking members is less than the 5% of dues received by the International Union Strike and Defense Fund, the difference will be rebated back to Local Unions and the International Union General Fund in the same proportion described in Subsection 13(a) above. The rebates referenced in this section will be issued once a year as a 13th “rebate” check.
Every month, the strike benefits paid are subtracted from the dues allocated to the Strike and Defense Fund (the 5% of the first 2.0 hours of dues, not counting the extra 0.5 hours if collected). Every month these dues exceed the strike benefits paid to workers, that balance accumulates. In April of the following year, this balance is refunded to locals and the General Fund in the same proportion as the rebates (53% locals, 47% General Fund). Again, Note 13 from the external auditor’s report in the International Trustee Report has a table:
| Dues Allocation After Rebate | 13th Check Rebate Allocation | |
| Local Unions | 50.35% | 53.00% |
| General Fund | 44.65% | 47.00% |
| 95.00% | 100.00% |
Most union activists don’t need to get into the weeds this deep. I think the main takeaways are that:
- The extra 0.5 hours of dues, if collected, goes directly to the Strike Fund and stays there. These extra dues serve mostly to grow the Strike Fund, although if there is a big strike these dues might be needed to help fund current strike benefits.
- During normal times (Strike Fund >$500M), with no really big strikes, day to day strikes are funded with the 5% of the first 2.0 hours of dues. The locals and General Fund roughly split the first 2.0 hours of dues in half (53%-47%), minus the costs of these day to day strikes.
- In the event times get bad (a big strike draws down the Strike Fund <$500M), the International simply stops the rebates and 13th check and keeps that money in the Strike Fund. This almost doubles the money flowing into the Strike Fund every month. But this is an overestimate because it doesn’t take into account the dues that workers on strike aren’t paying while on strike.
- In the event times get bad (a big strike draws down the Strike Fund <$500M), the General Fund will see at least a 28% decrease in dues income because of losing the rebates. Locals that aren’t striking will see at least a 25% decrease in dues income because of losing the rebates. Again, these are underestimates because this does not account for the dues lost from striking workers who aren’t paying dues while on strike. Locals with striking workers are going to see a bigger financial hit.
- Understanding the Strike Fund in central to understanding the UAW’s finances.