The Department of Labor’s (DOL) Office of Labor-Management Standards Oct. 13 officially rescinded a final rule issued by the Bush Administration that imposed additional financial reporting requirements on labor unions. The form, known as the LM-2, is the primary financial reporting document for unions with annual revenue of more than $250,000, as mandated by the Labor-Management Reporting and Disclosure Act (LMRDA) of 1959.
“Today's action by the Department of Labor to rescind the LM-2 rule is a major blow to transparency, accountability and the rights of workers,” said ABC Vice President of Government Affairs Geoff Burr. “The conclusions that the department reached and expressed earlier this year were correct and supported by the LMRDA.”
The original rule, published Jan. 21 and initially scheduled to take effect Feb. 20, would have revised the current LM-2 form and established a procedure to revoke the LM-3 form filed by smaller unions in instances where filers submitted delinquent or erroneous reports.
“This rule would have served to strengthen the LM-2 financial disclosure form and further deterred the potential for union fund embezzlement,” said Burr. “The rule was necessary and its implementation was needed in order to better carry out the department’s statutory mandate to combat union-related corruption.”
To read the official posting of the rescission in the Oct. 13 Federal Register, click
here.