Unions must abide by federal financial disclosure regulations, court says

More good news on the transparency in government front - a federal court has upheld the Labor Department's enforcement of the financial disclosure requirements of the  Labor-Management Reporting and Disclosure Act.

The LMRDA requires reports from attorneys who make payments to unions or to union officials or other employees, either in cash or other things of value. An attorney who was legal counsel to the United Transportation Union sued, claiming the Labor Department lacked authority to compel such reports.

The decision was issued by the U.S. District Court for the Northern District of Georgia.

According to a statement issued by the Labor Department, the suit focused on web site advisories posted in 2005 and 2006 by the department's Office of Labor-Management Standards (OLMS), which oversee the disclosure system.

"The Web site advisory followed an OLMS investigation of corruption in the UTU that resulted in the felony conviction of four union officials.  These officials pled guilty to conspiring with others to violate federal mail and wire fraud statutes, among others, by using their positions of authority to solicit and collect cash payments and other things of value from attorneys doing business or seeking to do business as designated legal counsels of the UTU," the Labor Department statement said. 

“This decision is a victory for America's working men and women, helping them learn who is making payments to their unions and union leaders, and is part of the department's continuing efforts to ensure transparency and accountability required by LMRDA from employers as well as labor organizations,” said Gregory F. Jacob, solicitor of labor.

Here is how the Labor Department describes the role of OLMS:

"OLMS is the federal law enforcement agency responsible for administering most provisions of the LMRDA.  The agency’s criminal enforcement program includes investigations of embezzlement from labor organizations, extortionate picketing, deprivation of union members’ rights by force or violence, and fraud in union officer elections.

"The agency’s civil program receives and publicly discloses unions’ annual financial reports, conducts compliance audits of labor unions and seeks civil remedies for violations of union officer election procedures.

"In certain cases, OLMS also conducts joint investigations with other Labor Department agencies, including the Employee Benefits Security Administration and the Office of Inspector General, as well as other law enforcement agencies including the Federal Bureau of Investigation.

"OLMS’s public disclosure Web site at www.unionreports.gov contains union annual financial reports and reports required to be filed under the LMRDA by employers, labor relations consultants, and union officers and employees, as well as copies of collective bargaining agreements.  Other information, including synopses of OLMS enforcement actions, is available at www.olms.dol.gov."