Despite all the legal disincentives, many of the people running our unions continue to engage in fraud and embezzlement. In response, the U.S. Department of Labor has come up with new forms of prevention. On September 30, the DOL’s Office of Labor-Management Standards (OLMS) unveiled a series of changes to its LM-2 annual reporting document for large unions; i.e., unions taking in at least $250,000 a year. First, these labor organizations must spell out more fully how they pay for assets, hotel stays, restaurants and other items that all too often are hidden under generic categories such as “miscellaneous.” Second, the largest of these unions – those with annual receipts of at least $8 million – must file a new “long form” LM-2. Labor leaders understandably oppose this. But the proposal addresses real financial crimes, which though frequently detected and punished, require more detailed monitoring.
Annual financial reporting by unions … Read More ➡
Union health, retirement and other benefit funds all too often serve as incubators for fraud and embezzlement. The U.S. Department of Labor, after over 15 years, may be on the verge of realizing an oft-thwarted tool for dramatically reducing these thefts. On March 6, DOL’s Office of Labor-Management Standards (OLMS) published a final rule requiring labor organizations with total annual receipts of at least $250,000 to file a financial report, Form T-1, detailing how their trust funds are spent. “Full disclosure of trust operations gives workers the information they need to make informed choices, and more information means better decisions,” said OLMS Director Arthur Rosenfeld. The regulation is effective April 6. But unions may go to court to block it – something they did twice, and successfully, during the Bush years.
As with any type of organization, labor unions present opportunities for illegal self-enrichment. That’s especially true for their health, … Read More ➡
The Department of Labor’s Office of Labor-Management Standards, as NLPC readers well know, has identified and helped prosecute much union corruption over the years. But the agency’s efforts would be even better realized if it finalized a pair of dormant rules promised two years ago. The first would establish a new financial reporting form, T-1, requiring unions with at least some private-sector members to disclose financial data for pension funds and other trusts. The second would impose financial reporting upon intermediate-level unions. Each had been proposed during the first term of the Bush presidency but shelved under President Obama. Contrary to frequent assertions from labor leaders, these regulations would not be burdensome. But they are likely to make unions more responsive to dues-paying members.
The Office of Labor-Management Standards (OLMS) is a creation of the Labor Management Reporting and Disclosure Act, also known as the Landrum-Griffin Act, enacted … Read More ➡