Non-Member Service Fee Rebate Procedure

Filing Objections to the Service Fee

Each year the Cuesta College Federation of Teachers ("CCFT" or "Federation"), Local 4909 CFT/AFT, AFL-CIO, shall send a notice to non-members informing them of their rights to demand a rebate for part of their service fee which has been identified as rebatable under current law. In addition, the Federation shall provide a detailed written explanation showing what chargeable expenditures, including collective bargaining and contract administration, are anticipated, based upon expenditures made during the most recently audited year and projected activities. The explanation shall also set forth a projection of anticipated expenditures which are not within the chargeable areas of expenditure. These projected expenditures, expressed as a percentage of the total budget derived from dues, assessments, and fair share fees, shall be identified as the "rebatable percentage" which will be rebated to non-members who request such a rebate. The breakdown of expenditures shall be subjected to an agency fee audit by a Certified Public Accountant.

Any non-member who wishes to request a rebate, as provided under current law, shall inform the Federation of his or her demand within thirty (30) calendar days after the date of the notice. Rebates are available only to those non-members who file such requests in writing (not emails) with the Secretary-Treasurer of the Federation. The rebate will be paid by a reduction in the amount of the service fee. No rebate checks will be issued except if required pursuant to the escrow process described below.

Non-members who wish to challenge the Federation's calculation of the rebatable amount must inform the Federation of their challenge within this same 30-day period. The notification must be in writing (not email), directed to the Secretary-Treasurer of the Federation, and must set forth the specific basis for the challenge. While any challenges are pending, fees will be collected but will not be remitted to the use of the Federation. Instead, they will be escrowed.

In the event of challenges which cannot be resolved prior to the first paycheck, the Federation will establish an interest-bearing escrow account, separate from all other union funds, in which to deposit fees. The Federation shall furnish non-members the terms of the escrow account upon request. All fees of non-members who challenge the Federation's determination and whose challenges are not resolved prior to the first deduction shall be escrowed. Monies shall be removed from escrow when the challenge has been resolved, either by arbitrator decision or by the settlement procedures described herein. Monies shall be disbursed to either the objector or the Federation, or both, based upon the resolution of the challenge. At any time, the Federation may resolve an objection by refunding any escrowed disputed amount, plus interest, and agreeing to not deduct the disputed amount for the remainder of the year at issue.

If more than one non-member has challenged the calculation of the rebatable amount, their claims will be consolidated for a single arbitration hearing. The Federation reserves the right to attempt to make a settlement with the appellant or refund the entire fee in its discretion, without incurring the costs of arbitration.

An arrangement shall be made with the American Arbitration Association (AAA) for the selection of a single arbitrator to conduct all service fee arbitration hearings. The AAA shall randomly select an arbitrator from a panel of five arbitrators compiled by it. Each panel member shall have been certified b the AAA as a labor arbitrator for at least three years, shall be licensed to practice law, and shall not be employed by a law firm or consulting firm to represent either labor unions or management in labor disputes. The fee and any expenses of the arbitrator shall be paid by the Federation. Challengers will be responsible for paying the costs of their own representation and their own incidental costs (including, but not limited to, transcripts, document reproduction, transportation, lodging, and meals).

Arbitrator's Award

The arbitrator shall issue a written decision, based on the evidence and relevant provisions of the collective bargaining agreement and the law, determining whether the service fee was appropriately calculated and, if not, what the appropriate calculations should have been. The arbitrator shall have no power to grant a remedy to persons who have not filed for arbitration.

As of the date of the arbitrator's decision, and thereafter, the "rebatable percentage" applied to the service fees of all non-members who have filed for arbitration shall be adjusted to coincide with the decision of the arbitrator, and reductions shall thereafter be calculated accordingly. The arbitrator's decision is binding and concludes the challenge process.