UAW Aims to End Losses in Two Years

The United Auto Workers union, which has been losing money for at least five years, hopes by mid-2014 to break even or even begin to bolster its coffers.

President Bob King tells Reuters that the UAW has covered the gap between costs and membership dues by selling stocks, bonds and property. The union sold $264 million in assets in 2007-2011 compared with $7 million in 2000-2006, according to Reuters. It notes that the bulk of the UAW's more than $1 billion in assets is tied up in its strike fund and cannot be tapped at will.

But King says it is unsustainable to draw on capital to cover expenses. The union aims to bolster revenue by recruiting new members and better managing its costs.

King defends spending to organize new members as an investment in the union's future. He also contends that money spent lobbying helps rebuild the UAW's political and legislative power.

The UAW's chief budget problem is its shrinking membership. The union's ranks contracted especially sharply during the recent auto downturn. Last year UAW membership increased 1% to 380,700 as U.S. domestic automakers resumed hiring. To break even only by increasing revenue, the union would need to boost its member rolls by 50%, according to Reuters.