• Company Profile
  • Company Profile
  • Board of Directors
• Why Bermuda?
• Products
  • UIC-Exec-Protect^SM Management Liability Insurance
  • Employment Practices Liability Insurance
  • Strike Insurance
  • Union Organization Defense Insurance
  • Alternative Insurance
• Endorsing Associations
• FAQ's
• News
  • Employee Briefs
  • Current Labor Law Article
• Contact Us

Union Organizing Defense Insurance

Virtually all U.S. and Canadian unions have been losing members for a number of years. This trend has forced the merger of the Graphic Communications International Union into the Teamsters Union, now known as GCC/IBT. Statistics show, however, that the labor movement is trying its best to get the “pendulum swinging the other way”.

• The NLRB conducted 1,648 union representation elections in 2006. Unions prevailed in 1,014 of these elections or 61.5%.
• 2006 marks the tenth consecutive year in which unions have improved their win rate.
• Unions have won more than half of all representation elections in each of the past ten years.
• Unions in the “Change to Win” federation, including the Graphic
  Communications Conference/International Brotherhood of Teamsters (GCC/IBT), increased their win rate from 53.7% in 2005 to 56.9% in 2006
• The Teamsters Union was the most active union in 2006 with 425 NLRB conducted elections, winning 49.9% of them
• Greater union success exists among smaller bargaining unit size. Units of 99 workers and under had the greatest number of representation elections with a total of 1,379 in 2006. Of these, 878 elections or 63.7% were won by the union
  

So, where is all the organizing money coming from?

During 2005, the GCC/IBT along with other unions, withdrew from the AFL-CIO. A new labor federation called “Change to Win” (CTW) was formed by the United Brotherhood of Carpenters and Joiners of America, the International Brotherhood of Teamsters, the Laborers’ International Union of North America, the Service Employees International Union, the United Farm Workers, and the apparel and hotel workers unions.

The CTW adopted a constitution which provides that 75% of all dues dollars paid to CTW will be spent on organizing. The unions comprising CTW have 5.4 million members compared to 9 million in remaining AFL-CIO unions. The per capita dues paid by the unions to CTW will amount to an estimated $16 million. In addition to the 75% of dues dollars earmarked for organizing ($12 million), the affiliated unions have pledged to spend 100% of the $23 million saved by not remaining in the AFL-CIO on organizing as well. The organizing pot is estimated to be in excess of $35 million. Today’s Unions Have “Changed to Win!”

Countering an organizing drive is expensive. The AFL-CIO estimates that companies spend up to $3,000 per vote fighting unions prior to an election. Costs are escalating as unions are using more sophisticated techniques to sway opinions, including high-priced advertising.

No employer wants to face an organizing drive without funds needed to mount a successful counter-offensive. By having the financial confidence to react swiftly and effectively, many organizing campaigns will fizzle and die. United Insurance Company Limited’s Union Organizing Defense Insurance can provide you with that confidence.

Union Organizing Defense Insurance covers all types of organizing defense costs

The most expensive costs of defending your company in an organizing drive are professional service fees and expenses. UODI will reimburse you for documented charges by attorneys and consultants that are reasonable and necessary in responding to an organizing drive. You also will be reimbursed for the purchase, reproduction and mailing costs of informational materials produced to counter the drive.

Flexible coverage will fit your financial requirements

The average cost of defending against an organizing drive is $25,000. The Base Plan will reimburse your costs up to $25,000. If you feel you need greater protection, $50,000 coverage is available in the Extended Plan.

Neither the Base nor the Extended Plan covers costs related to unfair labor practice claims before the National Labor Relations Board. A supplemental “Plus” plan is available which will provide this protection.

Reasonable rates accommodate all budgets

Premium charges have been held to a minimum since program inception so that even the smallest employers can afford this protection.

Premiums are even lower for companies that also carry United’s Strike Insurance policy. If you are interested in both Union Organizing Defense Insurance and Strike Insurance, please contact United for rates.