President Obama’s U.S. Labor Department continues to rollout gifts for Big Labor Bosses according to House Republican Leader’s blog post:

Transparency Should Apply to Union Bosses Too

In a memo to the heads of executive departments and agencies earlier this year, President Obama declared, “My Administration is committed to creating an unprecedented level of openness in Government.”  A noble sentiment – but it apparently doesn’t apply to the Department of Labor or the union bosses it’s charged with overseeing.

As the House Education and Labor Committee Republicans noted today, the U.S. Department of Labor has formally rescinded a series of reporting changes designed to enhance union disclosure.

The aim of these rule changes is to weaken union oversight requirements – a trend this Administration started with its FY 2010 budget, which cut $4.4 million from the Office of Labor Management Standards, more than a 10 percent reduction in its overall budget.  Judging by the profligate spending this Administration has applied to nearly every other department – giving the federal budget a nearly 10 percent boost in spending, cutting union oversight seems an odd place to “save money” – unless reducing transparency, and not saving money, were their aims. 

Part of the transparency roll back for union bosses includes the following items that the Labor Department will no longer require of unions:

  • Disclose the total value of benefits received by union officers and employees;
  • Disclose the names of parties buying and selling union assets; or
  • Itemize union receipts

This isn’t the transparency the American people were promised.

Unfortunately, the Obama Administration is walking back on its promises of “openness” and “transparency” – and it’s rank-and-file union members who’ll pay the price.

And while the Republican Leader is right, he, as he has done in the past, either forgets, ignores, or leaves out the fact that 80% of these rank-and-file workers labor under contracts that force them to pay these dues and fees as a condition of employment.  While Chairman of the Education and Welfare Committee, the now Republican Leader failed to engage on the issue of forced unionism under federal law.  One wonders what he would do now – if he gets the chance.

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Posted in: DOL, Forced Dues, Obama Administration

Obama Administration: No Transparency Required

The Administration of “Hope and Change” has millions of Americans hoping for no more change as their efforts to placate the union bosses knows no end.

Secretary of Labor Hilda Solis has abandoned the idea that union members should be able to see how their forced union dues money is being spent.  Gone is the union financial disclosure requirements set forth from the Bush Administration.  

Kevin Mooney has the story:

Never mind about those revised union financial disclosure requirements President Obama inherited from his predecessor. Secretary of Labor Hilda Solis now says she won’t make union officials comply. Unions officials complained for eight years that regulations issued by Elaine Chao, President George W. Bush’s Labor Secretary, were more rigorous than required by the Labor Management and Reporting Disclosure Act (LMRDA), which calls for modestly detailed annual financial reports by unions with receipts of $250,000 or more.

The Bush-Chao regulations require union officials to disclose financial information that could aid union members’ seeking information on how their union leaders are spending dues money, and to help expose “no show jobs” that put paychecks for ghost employees into union coffers.

Before Bush took office, the reports were mostly ignored by the Labor Department. Now, it’s back to business-as-usual. A notice appeared this week on the department’s web site saying the Office of Labor Management Standards (OLMS), whose main job is enforcing LMRDA requirements, won’t be doing its job under Solis:

“Accordingly, OLMS will refrain from initiating enforcement actions against union officers and union employees based solely on the failure to file the report required by section 202 of the Labor-Management and Reporting Disclosure Act (LMRDA), 29 U.S.C. § 432, using the 2007 form, as long as individuals meet their statutorily-required filing obligation in some manner. OLMS will accept either the old Form LM-30 or the new one for purposes of this non-enforcement policy.”  Now that Obama-Solis are giving union officials a choice between the old and new forms, can you guess which one they will choose?

The union bosses are smiling because when it comes to the Obama Administration, you get what you pay for.

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Cooking the Books

It will be easier for union bosses to cook the books thanks to the Obama Administration who are one-by-one eliminating transparency rules established to allow union workers to see how their dues money is spent.  

The Examiner newspaper rightfully objects:

President Barack Obama has often talked of the importance of transparency and accountability in government, and he has chalked up some landmark achievements in this area. As a senator, he co-sponsored, with Sen. Tom Coburn, R-Okla., the Federal Financial Accountability and Transparency Act of 2006 that established the USASpending.gov Web site to enable citizen tracking of federal expenditures. As president, he launched the Recovery.govWeb site to do the same with stimulus spending. 

Both sites have had and will have hiccups, but they are precedent-setters for which Obama deserves great credit. Unfortunately, transparency and accountability go out the window when they conflict with the demands of organized labor and environmentalists, two special-interest groups that are key supporters and contributors to Obama’s political campaigns. 

At the U.S. Department of Labor, Secretary Hilda Solis is moving rapidly to rescind Bush administration reforms that greatly strengthened reporting requirements that enable union members to see, via annual LM-2 reports, how their leaders are spending membership dues. In a recent Federal Register notice, Solis agreed with the preposterous assertion of Big Labor leaders that there was no proof members would benefit by knowing this financial information, and that compiling the report was too costly and time-consuming. 

Former Bush labor officials have also expressed concern about the Obama-Solis approach toward another union disclosure form, the LM-30, which requires shop stewards to report information needed to expose “no-show jobs” that funnel paychecks into union coffers instead of an actual employee’s bank account. Solis is reassuring the Big Labor bosses that she will not enforce the LM-30 reporting requirements.

Then there’s the case of Alan Carlin, the Environmental Protection Agency economist whose critical statistical analysis of a proposal for that agency to assume a leading role in regulating greenhouse gases was blatantly suppressed. Obama’s EPA administrator, Lisa Jackson, and other senior agency officials made it clear to Carlin that his study was not supportive of the Obama administration’s policy and so would be buried in the bowels of bureaucracy. He was also instructed not to talk to the media. 

Carlin is a 38-year EPA veteran and a respected economist. His study pointed out the many flaws in the data used to support the U.N.’s case for human causes of global warming, notably with regard to the use of carbon-based fuels like oil and natural gas. Carlin was muzzled by representatives of the same president who repeatedly bashed President George W. Bush for allegedly “politicizing science.”

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Just five days after the 30-day extension was signed and only one day before the comment period was scheduled to end; the Department of Labor allowed the public to know that it plans to extend the comment period regarding Labor Secretary Solis’ rescission decision concerning current LM-2, Union Financial Disclosure Reports.  These reports would have helped expose where billions in forced union dues are going.  Remember, you have only 31 more days to plead for retention of union transparency — make your comments count. 

May 20, 2009

Form LM-2 and Form LM-3 Rulemaking: Comment Period Extended

The Office of Labor-Management Standards (OLMS) will publish a notice in the Federal Register on May 21, 2009, extending the period for comments on the Notice of Proposed Rulemaking (NPRM) published on April 21, 2009 (74 FR 18172).  See link.

The April 21, 2009 NPRM proposed to rescind the final rule published on January 21, 2009 (74 FR 3677), which made several revisions to the current Form LM-2, used by the largest labor organizations to file their annual financial reports under the Labor-Management Reporting and Disclosure Act of 1959, as amended, and established a procedure by which the Secretary of Labor may revoke, under certain circumstances, a particular labor organization’s authorization to file a simplified annual report, Form LM-3.  For more background on this rulemaking, please visit here.

The comment period for the proposed rescission of the January 21, 2009 final rule, which was to close on May 21, 2009, will now close on June 22, 2009.

For additional information, including how to submit comments on the proposal to rescind, please visit the Form LM-2 and Form LM-3 rulemaking page on the OLMS Web site at: link.

Thank you for subscribing to the OLMS Mailing List. We hope that you find this mailing informative. If you need to change your subscription email address or no longer wish to receive mailings from OLMS, please visit the OLMS Mailing List Subscription page at link.

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Posted in: DOL, Forced Dues, Obama Administration

The Communist Party USA’s has joined with the Democrat party and endorsed President Obama’s cuts in a Department of Labor agency designed to protect workers against unscrupulous union bosses.  Now, there are two parties solidly behind the plan to allow union bosses to hide their perks and conflicts-of-interest from working people (also known as “the masses” — as communists refer to us) who are forced to pay for them.  These two parties continually claim to be for the little guy, but side with the Big Union Bosses every time.  You might remember that both the Communist Party USA and the Democrat Party support forced unionism through card-check legislation as well.   Here’s what the Communist have to say

“The Obama budget will actually slash one section of the Department of Labor’s enforcement apparatus – the section created by George Bush [actually created in 1959 by then-Sen. John F. Kennedy and others] to harass and “investigate” unions – the Office of Labor-Management Standards. That office, a favorite of the… …National Right to Work Committee, will be cut by 10 percent….”

 Here’s how the paper describes itself:

The People’s Weekly World / Nuestro Mundo is a national, grassroots weekly newspaper and the direct descendant of the Daily Worker. Published by Long View Publishing Co., the PWW reports on and analyzes the pressing issues and struggles of the day: for workers’ rights, peace, equality, social and economic justice, democracy, civil liberties, women’s rights, protection of the environment, and more.

The PWW is known for its partisan coverage. We take sides – for truth and justice. We are partisan to the working class, racially and nationally oppressed peoples, women, youth, seniors, international solidarity, Marxism and socialism. We enjoy a special relationship with the Communist Party USA, founded in 1919, and publish its news and views.

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Posted in: DOL, Labor Organizations, Obama Administration

Hands Off Corrupt Labor Bosses

The Obama Administration is calling for new rules and regulations for business across America but when it comes to big labor their attitude is “hands off“:

The Obama administration has delivered a strong message to crooked union bosses everywhere: happy days are here again.

On Thursday President Obama, who has pledged to usher in a new era of fiscal responsibility, touted $17 billion in proposed cuts to his $3.4 trillion budget. The media noted that about half of the reductions came out of the defense budget, but lost in most reports is the fact that the administration also slashed funding for the only entity in government tasked with policing unions.

Under the previous administration, the Labor Department beefed up the Office of Labor-Management Standards. During this time, the division’s actions led to 929 convictions of corrupt union officials and to the recovery of more than $93 million on behalf of union members. Yet the Obama administration has proposed slashing the unit’s budget by more than 9 percent, from $45 million in 2009 to $41 million in 2010.

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Obama Helping Union Bosses

The Washington Times looks at some of the recent decisions of the Obama Administration and how they help the union bosses. Frankly, the complete and detailed list probably would require a book and not a newspaper article.

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In a recent posting by Heritage Foundation’s James Sherk, he outlines the disclosure that the Obama Administration plans to eliminate – breaking Obama’s transparency and disclosure pledges.  Again, this provides another example of this Administration’s war on victims of forced unionism by eliminating another peek inside how their forced union dollars are being used.

Contrary to campaign promises to increase transparency and accountability, the Obama Administration has announced plans to rescind union accountability and financial transparency regulations implemented by the Department of Labor (DOL) during the Administration of George W. Bush.

These regulations make union officials more accountable to union members and deter fraud and embezzlement. The DOL has convicted hundreds of union officials over the past eight years. Rescinding these forms will facilitate fraud and harm union members.

Union Financial Transparency Regulations

On January 21, the DOL published regulations updating the Form LM-2, the annual financial disclosure report unions file with the DOL. Unions collect between 1 and 2 percent of their members’ earnings as dues, and union officers are required to spend that money on the workers’ behalf–they may not use union funds for their personal interest. The LM-2 revisions required unions to:

  • Disclose the total value of all benefits received by union officers and employees;
  • Disclose the names of parties buying and selling union assets; and
  • Itemize union receipts (currently unions must itemize only expenditures).

The DOL also updated the LM-30 conflict of interest reporting form that union officers and employees must file. These forms bring to light situations where union officers receive gifts or otherwise benefit from companies that their union does business with. They deter sweetheart deals where companies that give “gifts” to union officers get union business on favorable terms. The revisions required more union officials (such as shop stewards) to report potential conflicts of interest.

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Posted in: DOL, Economics, Forced Dues, Obama Administration