AWF Urges Sec. of Labor to Reinstate Union Transparency Rules
Today, AWF sent the following letter to Labor Secretary Solis urging her to protect rank and file workers and uphold the President's promise of transparency by reinstating recently redacted transparency reporting requirements for labor unions.
Specifically troubling, the financial reporting upgrades to the LM-2 form and the conflict of interest reporting form, the LM-30 were both swept under the rug and thus allowing union corruption to continue unmonitored.
Secretary of Labor Hilda L. Solis
U.S. Department of Labor
200 Constitution Ave., NW
Washington, DC 20210
Dear Secretary Solis:
On behalf of the Alliance for Worker Freedom (AWF), an organization established in 2003 to combat anti-worker legislation and promote free and open labor markets, I urge you to reinstate labor transparency and accountability rules that were recently rescinded.
Since President Obama has taken office, members of the new Administration have revoked or delayed measures to increase union reporting. These moves to obfuscate union finances are contradictory to President Obama’s promise of unprecedented levels of transparency.
Specifically, the current Administration has weakened three reporting mechanisms. LM-2 forms are a generic financial statement that required completing 21 information items, 47 financial items, and 20 supporting schedules. This report was to be filed by unions with total annual receipts of $250,000 or more ($200,000 or more for fiscal years beginning before July 1, 2004) and those in trusteeship. Unfortunately, LM-2 forms have been dissolved entirely, making it significantly harder for union members to gather information about their union.
Next, you looked to repeal the conflict of interest form, the LM-30. The LM-30 is a sensible form that requires unions to plainly state any potential conflicts of interest.
Lastly, you revoked the T-1 form that would have required unions to disclose the funding level of their pension plans to participating members. Forced disclosure is necessary because, on average, union pension funds only have enough resources to cover 62% of what is owed to members.
By dissolving LM-2 forms, the Department of Labor has lost sight of arguably its’ most important responsibility – protecting rank-and-file union members against corruption. LM-30 forms would have illuminated questionable dealings. T-1 forms would have educated union members about their, in some cases insolvent, pension funds. The financial burden imposed on unions required to submit said forms is far outweighed by the benefits gained through keeping the average union worker informed about his union.
Coinciding with the President’s promise of transparency, I strongly urge you to reinstitute union accountability measures.
Sincerely,
Brian M. Johnson, MPA
Executive Director
Cc: All members of Congress
