AGENCY FEE REFUND NOTICE

    Any person making agency fee payments to the Union under the agency shop provision in the Union’s collective bargaining agreement shall have the right to object to the expenditure of any part of the agency fee which represents the employee’s pro rata share of expenditures by the Union in aid of activities or causes of a political or ideological nature unrelated to terms and conditions of employment.  

    In order to avoid the possibility that any part of the agency fee paid by an objecting fee-payer will be used for political or ideological purposes, the agency fee received from non-members is $10 per semester less than the dues charged to Union members. Based on the experience of prior years, this advance reduction of more than 8.3% of membership dues will cover all Union expenditures in aid of activities or causes of a political or ideological nature plus a substantial reserve if there is any variation in the current year. Zabronsky & Zabronsky P.C., Certified Public Accountants, have audited the Union’s books for the 2004 fiscal year and have determined that expenditures of a political or ideological nature represented 4% of the expenses of the union during that year.

     If any agency-fee payer believes that the advance reduction in agency fee (as compared to membership dues) is not sufficient to cover all Union expenditures of a political or ideological nature which are reasonably anticipated during 2005 and he/she objects to the use of any part of the agency fee for such purpose, that person must file an objection/appeal in writing with the Union President by August 31, 2005. The appeal must state (1) the basis for the belief that the advance reduction is not sufficient to cover all Union expenditures of a political or ideological nature which are reasonably anticipated during 2005 and (2) the additional sum by which the agency fee should be reduced according to the appellant in order to cover such expenditures.

     The Executive Board of the Union shall promptly review all such objections. In the event the Executive Board does not render a decision satisfactory to the appellant by September 30, 2005, the appellant shall have the right to proceed to arbitration on this issue before an arbitrator on the panel of the American Arbitration Association to be jointly selected by the appellant(s) and the Union. The Union shall bear the arbitrator’s fee and all fees of the American Arbitration Association related to the proceeding. In order to proceed to arbitration on the amount of the advance reduction, the appellant must request in writing to the Union President by October 31, 2005 that his/her appeal proceed to arbitration.

     By November 30, 2005, the Union shall request the American Arbitration Association to designate a list of arbitrators from

whom the arbitrator to hear and determine appeals regarding the amount of advance reduction shall be selected. The Union, at its option, may consolidate all appeals for resolution in one proceeding. An appellant may present his/her appeal to the arbitrator in person or in writing, with a copy to the Union for its response. If the appellant chooses not to personally appear before the arbitrator, the Union may still appear before the arbitrator to present its case orally if it so chooses.

     The Union shall refund to each objecting fee-payer the amount of any additional advance reduction that the arbitrator finds appropriate. In the event that the arbitrator denies such appeal, the Union shall place in an interest-bearing escrow account, pending final disposition of the amount of any refund for 2005 as provided below, the additional amount claimed by an appellant if the arbitrator finds that there was a good faith reasonable basis for the amount claimed on the appeal.

     The proportion of Union dues spent by the Union for political or ideological purposes shall be determined after each fiscal year of the Union. Refund of a pro rata portion the agency fee corresponding to such proportion plus any interest earned while that sum was held in escrow shall thereafter be made to each individual who has filed an objection/appeal provided above in the event the advance reduction is not sufficient to cover that amount. Objecting fee-payers shall also receive summary data from the audit on which the refund determination was made.

    If an objecting fee-payer is dissatisfied with the amount of any refund or the fact that there is none, he/she may appeal the amount to the Union’s Executive Board. Such appeal shall be submitted in writing to the Union President within thirty days from the postmark date of the refund or notice that there will be none. The appeal must state the basis for the belief that the refund calculation is erroneous. 

    Within ten days after the close of the appeal period, the Union shall request the American Arbitration Association to designate a list of arbitrators from whom the arbitrator to hear and determine such appeals shall be selected. The procedures set forth above for appeals from the amount of the advance reduction shall apply. 

    In the event that the arbitrator finds that the calculation is erroneous, the Union shall refund to objecting fee-payers the additional refund which the arbitrator finds appropriate plus any interest earned while that sum was held in escrow. Any remaining funds in the escrow account shall then be released to the Union’s general account. Any funds held in escrow shall be immediately released to the Union’s general account in the event that there is no appeal of the refund calculation.