National Nurses United

You are required to pay Membership Dues or Fair Share ("Agency") Fees to the California Nurses Association ("CNA") as a condition of your employment if you are employed by a public sector employer covered by the Higher Education Employer-Employee Relations Act (Cal. Govt. Code § 3560 et seq.) or the Meyers- Milias-Brown Act (Cal. Govt. Code § 3500 et seq.), and you work in a job classi- fication included within a recognized bar- gaining unit for which the California Nurses Association serves as the exclusive bargaining representative. This legal requirement does not apply to CNA mem- bers. This legal requirement insures that all employees who benefit from the collective bargaining process and exclusive repre- sentation share in its costs. The working conditions of all bargaining unit nurses are improved when CNA gains higher wages, better healthcare and pension protections for nursing practice, safe staffing require- ments, fairness in the disciplinary system, patient advocacy rights, and other benefits and improvements for nurses at the bar- gaining table, in the Legislature, and with regulatory agencies. As a non-member represented by CNA, you are charged a fair share fee that is 6.1% less than the regular membership dues paid by CNA members. Regular CNA membership dues include amounts for political activities and certain member- supported activities that are not charged to non-members. Non-members are charged a reduced rate (fair share fee) based on expenses that are germane to CNA's responsibilities as your exclusive bargain- ing representative with respect to terms and conditions of employment at UC. Nurses who choose to be non-members of CNA can challenge the accuracy of CNA's calculation of expenditures included in the non-member fair share fee which are con- sidered not germane to CNA's functions and responsibilities as exclusive represen- tative. However, in order to continue to pay the reduced fee rate and have a right of protest, a nurse must forfeit the many rights and benefits of CNA membership. The decision to decline CNA membership should be carefully considered because of the rights and benefits that are forfeited by non-members. NON-MEMBERS CANNOT: ■ Vote on the terms of the CNA contract establishing UC terms of employment for nurses ■ Participate in the development and dis- cussion of contract proposals ■ Participate in strike votes ■ Nominate, vote for, or serve as an officer or representative of CNA ■ Attend and participate in CNA member- ship meetings ■ Enjoy other benefits of CNA member- ship CNA Fair Share Fee Calculation Effective April 1, 2004, regular CNA monthly membership dues have been set by the following formula: 2.2 times an individual's base hourly rate per month not to exceed a cap of $80 (eighty dollars) per month. Starting July 1, 2005, the "cap" or maximum amount of regular dues will increase annually based on the average wage increase in the preceding calendar year at Kaiser, UC, and CHW facilities. Non-member fair share fee payers are required to pay the proportionate share of the regular monthly membership dues that represents expenses germane to CNA's functions as exclusive representative. For the fair share fee period of January 1 through December 31, 2005, this non- member fair share fee has been set at the rate of 93.9% of regular member dues based on an allocation of CNA's expendi- tures, which are audited by independent accountants, into chargeable and non- chargeable expenditures. Any challenge to the accuracy of the CNA fair share fee cal- culation must comply with the procedures described in this notice. Expenses Germane to CNA Function as Exclusive Representative This notice includes a summary expense report, based on the audited expense state- ments for the fiscal year ending June 30, 2004, showing categories of CNA expens- es divided into: (1) chargeable expendi- tures (i.e., expenditures germane to CNA's functions as exclusive representative); and (2) non-chargeable expenditures (e.g., expenditures for member benefits, politi- cal activities). The percentage of CNA annual expenditures in each category is NOTICE TO NON-MEMBERS NOTICE TO EMPLOYEES OF PUBLIC EMPLOYERS WHO ARE COVERED BY EITHER THE HIGHER EDUCATION EMPLOYER-EMPLOYEE RELATIONS ACT OR MEYERS-MILIAS-BROWN ACT EMPLOYED IN BARGAINING UNITS REPRESENTED BY THE CALIFORNIA NURSES ASSOCIATION, BUT ARE NOT MEMBERS OF CNA allocated between chargeable activities and non-chargeable activities. The report also shows the overall percentages of total CNA annual expenditures for chargeable and non-chargeable activities. Also published in this issue is a full copy of CNA's annual audit for the fiscal year ending June 30, 2004, certified by inde- pendent public accountants. 1 We believe non-members will agree that the allocations between chargeable and non-chargeable activities are accurate. CNA is an independent union of regis- tered nurses that does not have expenses for per capita taxes to parent organizations and is able to focus its energies and resources on activities directly related to protecting and improving the terms, con- ditions, and quality of employment and professional practice of nurses represented by CNA. In addition to activities address- ing terms and conditions of employment common to all workers such as wages, benefits, and job security, CNA also has responsibilities to nurses it represents with respect to terms and conditions of employ- ment that are unique to registered nurses. Registered nurses are required as a condi- tion of employment to maintain their licenses in good standing, perform their work in accordance with standards of pro- fessional performance and competence mandated by law, maintain competency for particular assignments through proper instruction and continuing education, and discharge their professional and legal responsibilities as patient advocates with a singular commitment to the interests of patients that may sometimes conflict with the interests of their employers. As a result of the radical restructuring, consolidation, and increasing commercialization of the healthcare industry over the past decade, the workplace pressures on registered nurses have become increasingly severe, resulting in greater risks to patients, and placing nurses' licenses and, ultimately, their qualifications for continuing employ- ment in jeopardy. CNA engages in a broad range of activities to address these work and practice issues on behalf of nurses represented by CNA and charges fair share fee rates that accurately reflect the level of activity and expenditures directly related to these representational activities. CNA's representational activities are out- lined below along with those activities that are paid for by CNA members, but not charged to non-member fee payers. Expenses for Activities Germane to CNA Representation Responsibilities ■ Negotiating collective bargaining agree- ments for all nurses ■ Administering and enforcing collective bargaining agreements for all nurses ■ Organizing registered nurses for cam- paigns to win new contracts and improve terms and conditions of employment and professional practice at represented facilities and within healthcare systems employing nurses represented by CNA, and within competitive markets of repre- sented facilities as necessary to protect and improve terms and conditions of employment and professional practice for all nurses represented by CNA ■ Research, investigation, study, and analysis of current terms and working conditions and trends in conditions for registered nurses, healthcare industry activities, and trends directly affecting terms and conditions of employment and practice of represented nurses, and struc- tural, corporate, and market changes in healthcare systems, their joint venturers, partners, affiliated entities, and alter egos which directly or indirectly employ represented nurses or significantly influ- ence their terms and conditions of work and practice ■ Publications in support of ongoing edu- cation of nurses on matters affecting their terms and conditions of employ- ment and professional practice ■ Public advertising and community out- reach efforts to educate the general pub- lic on the circumstances and reasons for particular CNA contract campaigns, strikes, and other concerted activities, and to gain public and community sup- port for CNA efforts to protect and improve terms and conditions of work and practice of nurses represented by CNA ■ Regulatory monitoring and advocacy activities and legislative advocacy at the state and local levels to protect and improve terms and conditions of work and practice of nurses represented by CNA, including advocacy related to par- ticular corporate and community cam- paigns to maintain local health facilities and prevent hospital closings, cutbacks in critical and emergency health care systems, and abandonment and with- drawal of healthcare services from selected communities ■ Legal actions related to protecting and improving terms and conditions of employment and professional practice for represented nurses, including activi- ties related to contract enforcement, bar- gaining for new and improved contracts, CNA administration, and actions of healthcare employers including health- care system initiatives attacking and threatening working conditions and stan- dards of practice for nurses and seeking to avoid or withdraw recognition of CNA as exclusive representative ■ Lobbying for the negotiation, ratifica- tion, or implementation of collective bar- gaining agreements ■ Efficient management and administra- tion of CNA operations including facili- ties and personnel management CERTIFICATION I hereby certify that the above Report of Chargeable and Non-Chargeable CNA Expenditures accurately states expenditures that were actually made by CNA and reported in the audited financial statements for the year ended June 30, 2004 in the audit categories reflected on the Report. DATED: April 20, 2005 Robert Henderson, C.P.A. Expenditure Category Total Expenditures Non-Chargeable Expenditures Non-Chargeable Percentage 1. Salaries & Wages $11,614,363 $93,818 0.81% 2 Benefits $4,139,061 $34,284 0.83% 3 Reimbursed Expenses $793,787 $14,119 1.78% 4. Professional Services $1,713,854 $100,483 5.86% 5. Promotion $130,613 $130,613 100.00% 6. Records Maintenance/ Data Processing $254,223 $0 0.00% 7. Newsletters & Publications $402,847 $120,854 30.00% 8. Awards/Scholarships $22,235 $22,235 100.00% 9. Equipment $184,274 $0 0.00% 10. Research $76,626 $2,605 3.40% 11. Representational Expenses $1,836,369 $0 0.00% 12. Continuing Ed., Staff & Leadership Development $272,856 $92,993 34.08% 13. Insurance $65,871 $0 0.00% 14. Office Expenses $1,090,006 $62,134 5.70% 15. Building Occupancy $1,098,124 $45,023 4.10% 16. Supportive Fund $581,951 $0 0.00% 17. Region Activity $465,095 $465,095 100.00% 18. Political Action $269,906 $269,906 100.00% 19. Delegate Fund $1,045,959 $136,572 13.06% TOTAL $26,058,020 $1,590,734 6.10% REPORT OF CHARGEABLE AND NON-CHARGEABLE CNA EXPENDITURES FOR FISCAL YEAR ENDING JUNE 30, 2004 ■ Activities relating to rank-and-file nurse governance of CNA including expenses of meetings of officers and governing boards and committees ■ Education, training, continuing educa- tion, and certification programs related to the terms and conditions of work and professional practice of nurses represent- ed by CNA ■ Investigation, research, organizing, pub- lic education, and litigation to protect the rights of represented nurses when con- fronted with hospital closures, downsiz- ing and cutbacks of services, mergers and acquisitions, and other fundamental corporate changes that affect terms and conditions of work and professional practices of all registered nurses Expenses Not Charged to Non-Member Fair Share Fee Payers ■ Lobbying for purposes unrelated to CNA's function and responsibilities as exclusive representative ■ Political action including legislative campaign activities not related to CNA's function and responsibilities as exclu- sive representative ■ Political campaigns and activities in support of candidates for elected office ■ Promotional activities on behalf of CNA not directly related to particular cam- paigns for new contracts or other actions directly concerning terms and conditions of employment and professional practice of represented nurses ■ Charitable contributions and expenses to organizations outside CNA ■ Members-only benefits PROTEST PROCEDURE Non-members who do not agree with CNA's determination of chargeable and non-chargeable expenditures may protest the determination and any disputed alloca- tions. Any such protest must be in writing and must be received by CNA within thir- ty-five (35) calendar days of the mailing of this issue of California Nurse to you. Since we cannot assume a protestor will always want to protest CNA expenditures and since the legal definition of chargeable expenses continually changes, protestors will be required to file protests in writing with CNA for each and every year they want to protest fair share fee payments for non-chargeable expenses as defined in the law. If a protest is not made each year within the protest period, a non-member will waive protest rights for that year. This annual protest requirement allows a non- member to consider the consequences of a protest in a thoughtful manner and to exer- cise everyone's right to change her or his opinion. PROTESTS MUST BE WRITTEN AND SENT TO THE FOLLOWING ADDRESS: California Nurses Association Fair Share Fee Protests 2000 Franklin Street, Suite 300 Oakland, CA 94612 A PROTEST MUST BE WRITTEN AND MUST INCLUDE THE FULL NAME, ADDRESS, SOCIAL SECURITY NUMBER, JOB TITLE, FACILITY, DEPARTMENT, AND WORK LOCATION OF THE PROTESTOR CNA would rather devote all its energies and resources to representing registered nurses at this critical time of crisis in the healthcare industry than be involved in cumbersome legal proceedings and dis- putes over the precise accounting, alloca- tion, and calculation methodologies for fair share fees. If a non-member truly believes she or he is being charged a fair share fee for expenses CNA is not entitled to charge by law and wants to pursue a legal challenge under the procedures described in this notice, the protestor is encouraged to include in the written protest an explanation of the particular expenses and activities she or he believes cannot be legally charged by CNA and explain the reasons for the protest of par- ticular expenditures. The new law requires non-member protestors to pay fair share fees based on expenses that are germane to CNA's function as exclusive representa- tive. A timely protest will not result in a complete refund of escrowed fair share fees or excuse the legal obligation to con- tinue paying a fair share fee as a condition of employment. By providing complete information with a protest on the particu- lar expenditures the protestor believes can- not lawfully be charged as part of the fair share fee and the reasons for the protest of particular expenditures, non-member pro- testors may be able to avoid a contested legal proceeding by resolving their com- plaints directly with CNA. 1 In order to ensure full disclosure, the report of chargeable and non-chargeable expenses provides more detail than the general categories of expenditures used by CNA's inde- pendent auditors for the annual audit.

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