Establishment of a Strategic Industry Fund

Resolution: 68A-06-02

Approved: July 10, 2006

"Stronger Bargaining Power" is the central theme of our Ready for the Future work. In every sector of our union, our effective bargaining power is under assault either from the management across the table or conditions at other employers in the same industry that have eliminated or diminished collective bargaining rights for their workers. We need to aim higher, imagine a resurgence in bargaining rights, and help create opportunities for positive change in every CWA industry.

It's clear that today, and for the future, CWA must rely on strategic organizing, membership mobilization and political leverage to achieve good results at the bargaining table. This requires new thinking and a bold approach. This proposal establishes a Strategic Industry Fund (SIF) to finance large-scale campaigns to increase our bargaining power. This fund is not focused primarily on organizing or merely media, but rather for campaigns which aim to change employers' anti-union, anti-worker behavior and contribute to our bargaining power. Above all, the SIF is intended to put CWA on the offensive, 12 months a year, not just during bargaining.

The following are just some possible examples of areas where CWA could consider mounting large-scale and sustained campaigns that are beyond the scope of our current resources.

Boost union jobs and also challenge the anti-union behavior of the cable giants through a massive campaign, community by community, to promote union video services.
Build CWA's presence and bargaining power among the converging media empires that are buying up newspapers, broadcast stations, Internet sites, entertainment studios and cable channels through a multi-faceted campaign at community, state and federal levels.
At Verizon, which is determined to shrink our bargaining power by keeping its Verizon Wireless and former MCI operations (nearly 50 percent of the business) non-union, mount a sustained campaign to break down its commitment to union busting.
Change public policy to end bad trade deals and corporate subsidies for sending jobs overseas—which have helped devastate the U.S. Manufacturing sector—and build broad public support for the establishment of a 25 percent value-added tariff on imported goods to reduce our trade deficit.
Help CWA health care locals build alliances to mobilize for quality care and lay the groundwork for statewide health care reforms that eventually move us toward our major goal of a national program for universal health coverage.

Strategic Industry Fund

Members Relief Fund contributions (quarter hour) credited to the Strategic Industry Fund starting in September 2006 (current average is $4.00 per month per member into the MRF). This would raise about $1.6 million per month or $20 million by September 2007.
Members Relief Fund (MRF) keeps growing through investment interest. There will be no cap on the MRF. For years, investment interest has exceeded expenditures. For example, in the last fiscal year, investment income totaled $18.6 million dollars while expenditures totaled $3 million. In the current nine month period, investment income has totaled $19 million, while expenditures totaled $10.4 million.
Establish an MRFf floor equal to the balance in the fund as of July 11, 2006 (approximately $380 million as of June 1). If the MRF falls below this established floor all contributions will revert back to the MRF until it reaches the floor once again.
There will be one Strategic Industry Fund created with contributions but earmarked for different industries based on percentage of member contribution. For example, based on first year funding:

Telecom = $13.4 million
Media = $2.8 million
Manufacturing = $3.9 million
Health Care = $528,000

Public Sector and AFA-CWA need to decide if they want to contribute to the Fund. Currently they do not contribute to the MRF, with the exception of 17,500 public and health care members.

Regarding governance, strategic plans for SIF funds will be initiated by the appropriate Vice Presidents then approved by the Executive Bard. The Defense Fund Oversight Committee will have oversight responsibilities for the SIF.

RESOLVED: The 68th Convention of the Communications Workers of America adopts the Executive Board's proposal for establishment of a Strategic Industries Fund.