1873 UAW Local Union 2320 v. International Executive Board

Case No: 1873


This is a case of first impression for the PRB.  The Board has not previously had the occasion to consider the authority of the International President and IEB to provide subsidies to local unions under Article 13, §11 or Article 16, §17 of the UAW International Constitution.  Given the language and structure of the Constitution, we agree with the International Union that no local union has a right to receive a subsidy.  The President and the IEB have broad discretion with respect to whether to grant or retain a subsidy.

However, the PRB does have a role in determining whether the President and the IEB have exercised their authority with regard to subsidies in a manner consistent with the Constitution’s guarantee of due process and democratic governance.  The PRB agrees with the Local’s argument that the IEB acted without due process when it voted to eliminate the subsidy.  At a minimum, due process requires adequate notice and an opportunity to be heard, whether directly or through a party’s duly elected representative.  Due process also requires a fair and thorough investigation and the substantiation of factual claims forming the basis for decision-making.  Here, insufficient notice was given to IEB members, particularly the Region 9A Director who represents the Local 2320 membership, that a motion to rescind the Local’s subsidy would be considered at the December 7, 2022 meeting.  In addition, the reasons given for the elimination of the Local’s subsidy were cursory and unsubstantiated. 

In order to cure the due process violation associated with the IEB’s action on December 7, 2022, the PRB will order the IEB within 60 days of this decision to vote again on the elimination of the Local 2320 subsidy at a meeting conducted in accordance with the requirements of due process as outlined in this decision.