This past fiscal year every possible effort was made
to conserve our financial resources even though the Brotherhood was faced with the Amtrak
PEB, negotiations in Canada and legal fallout from the PEB 229. Membership over this past
year increased for the first time since 1985, and it was for this reason that income has
exceeded expenses.
All spending in excess of our projected income was placed before the Grand
Lodge Executive Board which is required by the Constitution and Bylaws. While permission
was granted for the necessary expenditures, it was done so only after long and arduous
discussions, which reflects that the decisions were made only in the interest and for the
betterment of the membership.
The Officers, Appointees and employes have continued to seek and execute cost
cutting initiatives, however, as the years have progressed, the last of the large cost
cutting initiatives have been executed, but still each day efforts are made to change the
daily operation and reduce costs.
In accordance with Article VI, Section 8, of the Grand Lodge Constitution and
Bylaws, I take pride in submitting the following Report reflecting the financial condition
of the Brotherhood of Maintenance of Way Employes and the successes we have had while
maintaining a sound fiscal condition over this year April 1, 1997 through March 31, 1998.
The total income for the fiscal year under review, April 1, 1997 through March
31, 1998, was $12,206,672.69, an increase of $513,831.54, or 4.39 percent from the
previous fiscal year April 1, 1996 to March 31, 1997. The combined income from dues and
initiation fees increased $513,135.50, or 5.56 percent from the preceding fiscal year.
Income from investments decreased $50,481.43, or 2.5 percent.
The expenses for the fiscal year under review, April 1, 1997 through March 31,
1998, were $12,107,160.17 for an operating excess of $99,612.52. The expenses for the
previous fiscal year from April 1, 1996 through March 31, 1997 were $13,069,220.02,
resulting in an operating deficit of $1,376,378.87. Income over expense increased by
$1,475,991.39 for the period covered by this Report compared to the previous fiscal year.
I have and will continue to meet the fiduciary responsibilities for which I
have been elected and am dedicated to preserving the Brotherhood's sound financial
position. With the continued assistance of President Fleming, the Grand Lodge Officers,
staff and employes, the system divisions/federations, subordinate lodges and membership
support, we will strive to maintain the Brotherhood's position as a leader among rail
labor.
In conclusion, I wish to express my sincere appreciation to President M. A.
Fleming for his continued assistance and guidance, to the Grand Lodge Officers, staff and
employes in the President's Department for their cooperation and dedication.
I would also like to express a special appreciate to my Administrative
Assistant John Pesta, my Secretary Linda Cassese, and the entire staff and employes of the
Secretary-Treasurer's Department. Equally as well, I wish to thank all the system
federation and division officers and subordinate lodge officers, who have maintained a
devoted commitment to serving our members when time is of the essence, when funds fail to
meet the needs of a progressive union and work is never ending.
COSTS ASSOCIATED WITH STRIKE ACTIVITIES
The following is a report of payments made from the Strike Fund Trust for the
period April 1, 1997 through March 31, 1998. A total of $54,450.05 was paid from the
Trust.
Strike benefit payments, investment management fees, accounting fees and bank
service charges were the only payments made from the Strike Fund Trust. At the close of
the fiscal year March 31, 1998, there was a balance of $16,857,234.76 in the Strike Fund.
Payments to members from the Strike Fund due to the Brotherhood's enjoined
strike against Norfolk Southern Railroad totaled $420.00.
Payments to members from the Strike Fund honoring the International Union of
Operating Engineers strike against the Soo Line Railroad Company at Bensenville, Illinois
totaled $2,613.00.
Payments to a member from the Strike Fund honoring the United Steelworkers of
America strike against the CF&I Steel Mill at Pueblo, Colorado totaled $1,132.00.
Investment management fees, accounting fees and bank service charges totaled
$50,285.05.
Independent Auditor's Report
In our opinion, the financial statements shown below present fairly, in all material
respects, the financial position of the Brotherhood of Maintenance of Way Employes as of
March 31, 1998 and 1997 and the results of its operations for the years then ended in
conformity with generally accepted accounting principles.
Landgren & Company, P.C. |