"9/7/08
UAW squanders dues on golf resort
United Auto Workers' golf course losing millions
Down a lonely country road far from the interstate hangs a banner at the UAW's golf course: "Public welcome." But a review of the golf course and adjacent education center's financial statements indicate that not enough people have been visiting.
The UAW International's golf course and education center operations on 1,000 acres near Onaway have together lost $23 million over the past five years, independent audits obtained by the Free Press show. Both are run as for-profit corporations, according to paperwork filed with the U.S. Department of Labor, and the UAW has been propping them up with loans.
"There's a lot of debate over what to do," said Arthur Wheaton, a union expert from Cornell University. "They've been having trouble there trying to get enough people to go through there to justify the expense," he added.
The facilities are reminders of another time when the autoworkers' union was flush with dues-paying members. But now the U.S. auto industry is losing money, the UAW is losing members and some people are questioning the need to keep the money-losing operations.
The UAW and others defend the properties as important assets and point out that President Ron Gettelfinger has been aggressive about cutting costs to protect the union's financial health.
While the UAW International has a huge reserve of money, the union filed financial records with the federal government stating that it spent about $2.7 million more than it took in during 2007 -- the third time over the past five years that the union spending exceeded receipts, records show.
"All you have to do is look at the membership trends and realize that there was a golden age when they could easily support the education center," said Hal Stack, director of the Labor Studies Center at Wayne State University.
"It could be that either things turn around or they sell it," he added.
From a peak of 1.5 million members in the 1970s, the UAW ranks have dropped to just 465,000 regular members, according to its most recent federal filings.
In 2007 the UAW had receipts -- union dues, fees and other income -- of $327.6 million and it spent $330.3 million. While losing members, the UAW International, since at least 2000, has been able to hold fairly steady in the amount of money it brings in and spends, according to federal records. It has $1.2 billion in net assets."