It doesn't sound like the union is trying to take the money. It sounds like the union is trying to make sure the money is in a fund that complies with the bylaws and the law. You need to read the union bylaws to see if the union is doing the right thing; certainly no one here on Avvo can tell you without reading that same document. At least, ask the union to show you the bylaw language that it refers to, as well as the law it is referring to.
If the bylaws do in fact say what the union says, then everyone hs to comply with those requirements. But the bylaws can be changed by a vote of the membership by following the procedure described in the bylaws.
@MikaSpencer * * * PLEASE READ: All legal actions have time limits, called statutes of limitation. If you miss the deadline for filing your claim, you will lose the opportunity to pursue your case. Please consult with an experienced employment attorney as soon as possible to better preserve your rights. * * * Marilynn Mika Spencer provides information on Avvo as a service to the public, primarily when general information may be of assistance. Avvo is not an appropriate forum for an in-depth response or a detailed analysis. These comments are for information only and must not be taken as legal advice. Legal advice must pertain to specific, detailed facts which are impossible to gather on a public web site like Avvo. * * * No attorney-client relationship is created based on this information exchange. * * *