AMO Currents - AMO National Executive Committee reduces official compensation, voids dues increase

AMO Currents - Posted: January 14, 2015

AMO National Executive Committee reduces official compensation, voids dues increase

Two of the three senior AMO officials January 13 reduced compensation for elected officials by 25 percent and for representatives with the unofficial titles of national assistant vice president by 10 percent.

The two officials - AMO National President Paul Doell and AMO National Secretary-Treasurer Charles Murdock - also voided the 2015 AMO membership dues increase approved by the AMO National Executive Board in October 2014.

In addition, Doell and Murdock approved an independent forensic analysis of AMO spending.

These policy initiatives were proposed in a resolution submitted by Doell and Murdock for consideration during an official meeting of the three-member AMO National Executive Committee - Doell, Murdock and AMO National Executive Vice President Robert Kiefer. Doell called the meeting under authority established in Article VI, Section 5 of the AMO National Constitution. Kiefer refused to vote on the resolution, which was adopted under the AMO National Constitution's NEC "majority vote" rule.

The successful National Executive Committee resolution addressed "the financial welfare of AMO and its members" and considered "the financial impact of the union's spending levels in 2014, and of maintenance of dues rates at 2014 levels for 2015."

Doell said: "Our preliminary financial review indicated an unsustainable pattern of irresponsible spending and habitual, harmful withdrawals from AMO investment accounts. Left unchecked, this pattern would threaten the fiscal stability of AMO and the quality of representation and service to all AMO members and their families.

"Reduced top-tier compensation under what Murdock and I see as emergency circumstances results in an immediate saving of close to $500,000," Doell continued. "This is in addition to cost containment already achieved through payroll attrition as of January 1, 2015 - an amount equal to or greater than that projected as new revenue derived from the higher membership dues rates some executive board members agreed to late last year."

Doell said the October 29 "polling" of the executive board on the dues increase issue was "contrary to specific procedural requirements for executive board action as set forth in Article VI, Section 4 of the AMO National Constitution - Murdock and then Great Lakes Vice President John Clemons were not given the opportunity to vote on the question."

The independent audit of AMO accounts will commence after competitive bidding. At least three proposals will be solicited for "a necessary service at reasonable cost," Doell said.