1825 Guzman v. Pearson, President, UAW Local Union 140

Case No: 1825

2021

The UAW’s policy is clear that any compensation paid to a local officer or member must be specified in the local’s bylaws.  The Union may properly seek recoupment of any compensation paid to an officer which is not authorized under the local’s bylaws.  Following the PRB’s initial review of this case, it appeared that the Local may have made a bonus payment to the Local President in 2018 before adopting a proposed amendment to the Local’s Bylaws specifically providing for the payment of bonus amounts.  For that reason, the Board requested additional information.  Although the lump-sum payment to the Local President has been referred to as a “bonus,” that label is misleading under the circumstances.  The International Union has explained that a 3% lump-sum payment made to International Representatives in 2018 was in lieu of a salary increase.  The Local’s Bylaws entitled the President to receive the same salary as an International Representative.  Properly characterized as payment in lieu of a percentage increase in base compensation, it is reasonable to construe the Local’s Bylaws as authorizing the payment.