ABC April 5 submitted comments in opposition to a proposal by the U.S. Department of Labor’s Office of Labor-Management Standards (OLMS) to rescind a rule that requires unions to file annual financial reports for trusts they have created for the benefit of their members.
OLMS implemented the new Form T-1 in 2008 to provide union members a complete accounting of where the trust’s funds were invested or spent. In its comments, ABC questioned OLMS’ reversal of its original position that “timely and complete reporting…helps deter labor organization officers or employees from embezzling or otherwise making improper use of such funds.”
ABC also expressed support for OLMS’ original goal of increasing union transparency by making it more difficult for labor organizations to avoid reporting requirements simply by transferring money into a trust and urged OLMS to reinstate the financial reporting requirements
“Labor organizations that use trusts have an obligation to members to disclose the purpose for the trust and the amount of funds contributed to the trust,” ABC stated. “Form T-1’s timely implementation is necessary in order to carry out the agency’s statutory mandate to combat union-related corruption.”
To read the proposed rule and ABC’s comments, visit
www.abc.org/comments.