UNIONS REQUIRED TO FILE FINANCIAL RECORDS (11/01/2008)
On October 2nd, the U.S. Department of Labor (DOL) Office of Labor-Management Standards published a rule that requires unions to begin filing annual reports starting on Jan. 1, 2009, listing expenditures in trusts created for the benefit of their members.
Under the new rule, union-controlled trusts – which include apprenticeship and training programs, as well as building and strike funds – will be required for the first time to publicly disclose receipts and disbursements that currently take place outside the reach of established accounting practices.
ABC expressed support for this ruling in comments filed May 5th with the DOL. ABC agreed with the DOL that requiring the disclosures would serve as a deterrent against impropriety by labor organizations by enabling the public to see how union trust funds are being used.
“We are extremely pleased that the Labor Department has seen the need for union trust funds to be more transparent so that their members can actually see how their money is being spent,” said Bob Hirsch, ABC director of legal and regulatory affairs. “The rule will go a long way to ensure that union officials cannot use the trust funds for improper means.”
