The United States Department of Labor (DOL) has issued a new rule requiring labor unions to disclose more information about how union-controlled trusts allocate their money. The new rule, titled “Labor Organization Annual Financial Reports for Trusts in Which a Labor Organization Is Interested,” will affect any union with annual revenues exceeding $250,000, and will require in-depth disclosure of the trust’s expenses and investments. The goal of the new rule, according to the DOL, is to meet the requirements of the Labor-Management Reporting and Disclosure Act.
Labor unions are nonprofit organizations created for the purposes of representing workers in disputes with their employers. Many labor unions maintain trusts for the purposes of funding their members through strikes or manage investment or retirement funds on behalf of their members. They also sometimes use these trusts to fund apprenticeships, redevelopment or investment groups, training and education funds, and a variety of other uses. Until now, these trusts have been relatively opaque, largely free from public scrutiny.
The new regulation will require qualifying labor unions to fill out a new disclosure form that includes all “assets, liabilities, receipts and disbursements” of any trust they manage, along with any other funds that the union’s board members appoint or whose funds they mostly contribute to. This includes strike funds, political action committees, credit unions, and any retirement fund governed by the Employee Retirement Income Security Act (ERISA). Employers hope the new regulation can be used to expose corruption in labor unions, while its critics fear the newly disclosed information will be used to suppress legitimate union activity.
If you are an employer in a dispute with a labor union, or an employee seeking to enforce your rights, contact the Law Office of Andrew Ross Sack. Mr. Sack will protect your rights and strive to bring the relief you deserve. Give him a call at (516) 526-3319, or visit his contact page.
