Notice to U.S. employees covered by union security agreements Policy regarding fee objections (This notice is not applicable to employees of employers located in Right-to-Work states, except employees of employers in those states who are covered by the Railway Labor Act or are situated on U.S. Government property.) Service Workers United ("SWU") and your Employer has negotiated a collective bargaining agreement that covers your wages, hours and other terms and conditions of your job.

This agreement contains a union security clause that requires all covered employees, including yourself, after the period specified in the agreement, to become and remain members of the Union and/or pay uniform Union dues and initiation fees as a condition of continued employment. The officers, representatives and other members of your Local strongly urge you to become and remain an active member of the Union.

As a member you will have all of the benefits and privileges of membership. Such benefits and privileges include the right to participate fully in the internal activities of the Union. Only members can attend and participate in membership meetings and help to develop the contract proposals for the collective bargaining agreement that covers your wages, benefits and working conditions, as well as vote to ratify your contract or to go on strike. Only members can vote to set or raise dues and fees. Only members can nominate and elect officers of the Union, and only members can run for Union office and for convention delegate. Most important, the more members we have in the Union, the greater our bargaining strength will be in contract negotiations, thus providing you and all of us with better wages, fringe benefits and working conditions.

We believe that it is in your interest to become and remain a full dues-paying member of this Union. Your obligation under the union security clause in your collective bargaining agreement to become and remain a Union member is limited to only the payment of uniform initiation fees and dues, "an agency fee". You have a right to be a non-member. If you choose not to join the Union or choose to resign in writing your current Union membership, you are still required to pay an agency fee equivalent to dues and initiation fees uniformly required of members.

However, if you are or become a non-member and you object to the use of your initiation fees and dues to fund Union activities that are not germane to the Union's duties as your bargaining representative, you will be required to pay, as a condition of employment, a fair share fee that represents a percentage of the monthly initiation fee and monthly dues for reasonable and necessary costs incurred in acting as your bargaining representative. The fair share fee is calculated based on those "chargeable" expenditures germane to collective bargaining activities the Union incurred during the most recently completed fiscal year. Among those expenditures germane to collective bargaining for which objectors may be charged are those made for the negotiation, administration and enforcement of the collective bargaining agreement; all expenses related to representing employees in the bargaining unit, including the investigation and processing of grievances; organizing employers that compete with employers that have contracts with the Union; Union administration and other germane expenses. Those expenditures that are non-chargeable are identified as expenditures for activities not germane to the Union's duty as your bargaining representative, such as expenditures made for legislative activities and support of political candidates. We estimate that approximately 78.2% of the Union's expenditures will be non-chargeable expenditures.

If you are a member and wish to resign from the Union, or if you do not want to become a member and you object to paying dues and an initiation fee equal to the amount customarily paid by Union members and wish to pay a "fair share" fee of the initiation fees and monthly dues, you must notify SWU of your choice by sending a letter so stating to the President, Service Workers United, 275 Seventh Avenue, New York, NY 10001. The letter of objection must be appropriately post-marked and must include your full name, mailing address, social security number, your employer's name, and your date of employment. In all cases, if you are thereafter employed as a new employee by another employer with a union security agreement, you must repeat the above process with respect to obtaining "fair share" status with your new employer.

Once a timely objection is received, the Union will advise you of your precise fair share fee and the categories of chargeable expenses used in the determination of that fee. If you have signed a dues authorization deduction card, the Union will instruct your employer to deduct that fair share from your paycheck. If you have not signed an authorization card, you must pay the amount of the fair share directly to the Local Union in a timely manner. This "fair share" status will continue for twelve months and must be renewed annually on or before the anniversary date (month) of your "fair share" status by notifying the President of your desire to continue your "fair share" status no sooner than thirty (30) days prior to the anniversary date. Non-members who object to paying dues and an initiation fee equal to the amount customarily paid by Union members have a right to dispute the fair share determination.

If you wish to exercise this right you must advise SWU's President accordingly at the above address within thirty (30) days of your receipt of the letter setting forth the fair share percentage. SWU will then provide you with information concerning its calculation and concerning your right to appeal the calculation by voluntary final and binding arbitration. SWU fully expects that few, if any, employees it represents will avail themselves of the option of "fair share" status since it firmly believes that all employees represented by the Union recognize the importance of all the expenses incurred by the Union on their behalf in the continuing struggle to improve the working conditions and job security of employees at SWU facilities.

While it is your legal right to be a nonmember and to object to paying full dues, we believe that doing so is not in your best interests or in the interests of your coworkers. Before choosing fair share fee payer status over full member benefits of Union membership, read this notice carefully and be aware of the benefits that you will be giving up. Also, if you have questions about the benefits of union membership or fair share fee payer status, please speak with your union representative.