ABC Feb. 12 filed comments with the Department of Labor Office of Labor-Management Standards (OLMS) opposing the delay of the implementation of a final rule revising the current LM-2 financial disclosure form for larger unions. In addition, the rule would establish a procedure to revoke the LM-3 form filed by smaller unions in instances where filers submit delinquent or erroneous reports.
In its comments, ABC urged OLMS to keep the original effective date of Feb. 20 for the final rule, citing the need for financial transparency in a time of economic turmoil.
“In light of the funding that will soon flow to organized labor – especially to construction unions – as a result of the economic stimulus package, the need to ensure union financial transparency has become even greater,” ABC stated in its comments. “As with the public’s demand for transparency in banks and other corporate entities receiving economic stimulus funds, there is an equally compelling need for the public to have the same benefit of transparency when it comes to the receipts and expenditures of labor organizations.”
ABC pointed out that according to OLMS’ most recent annual report, LM-2 filings have resulted in more than 900 convictions and more than $91.5 million in recovered union funds and restitutions since 2001.
President Obama issued the regulatory directive that delayed the implementation of the final rule in an effort to ensure that all rulemakings issued at the end of the Bush administration met regulatory standards. ABC pointed out that this rule meets all of the regulatory standards and that delaying the implementation of the rule will serve no purpose but to justify the submission of incomplete LM-2 reports for 2009.
“The rules’ timely implementation is necessary to carry out the Department’s statutory mandate to combat union-related corruption, as directed by the Labor-Management Reporting and Disclosure Act (LMRDA),” ABC stated in its comments.
To view the text of the final rule in PDF, click
here.
To veiw the delay of the final rule in PDF, click
here.
To view ABC’s comments in PDF, click
here.