Obama Gives Unions Green Light for Corruption
Today, the Alliance for Worker Freedom, condemned the Obama Administrations’ decision that unions were no longer required to file the Form LM-30, which disclosed potential conflicts of interest and helped protect union members from financial pitfalls.
The purpose of disclosure, according to the Department of Labor is “to publicly identify an actual or potential conflict between the personal financial interests of a union office or employee…and his or her obligations to the union and its members.” After running a campaign on increased transparency and accountability, the Alliance for Worker Freedom is disappointed in Obama’s decision.
“The Obama administration, which has boasted about its efforts to make government more transparent, is rolling back rules requiring labor unions and their leaders to report information about their finances and compensation.
“The Labor Department noted in a recent disclosure that ‘it would not be a good use of resources’ to bring enforcement actions against union officials who do not comply with conflict of interest reporting rules passed in 2007. Instead, union officials will now be allowed to file older, less detailed conflict reports. …
“Critics worry that the rollback of union reporting requirements will keep hidden potentially corrupt financial arrangements aimed at rooting out corruption, but unions say the Bush administration reporting rules were unfair and burdensome.
“‘Strong financial disclosure requirements are necessary to root out and combat union-related corruption,’ Rep. Howard P. ‘Buck’ McKeon, California Republican, and Rep. John Kline, Minnesota Republican, wrote in a recent letter to the department.”McElhatton, “Obama team reverses union transparency,” The Washington Times, 04.27.09
The Alliance for Worker Freedom issued a press release which said:
“The issue here is transparency,” says AWF executive director Brian M Johnson. “The reason all Department of Labor financial reporting forms exist is to ensure that union officials are held accountable for their financial activity. Members’ dues should be used to provide services for the members – not for other purposes prohibited by law.”
Click here to view the printable PDF version of the press release.
In addition, AWF sent the below letter to President Obama urging him to reverse his opposition to Form LM-30 as it protects rank-and-file workers from potential conflicts of interest.
Dear President Obama:
On behalf of the Alliance for Worker Freedom (AWF), a project representing millions of rank-and-file working Americans and business owners, I wish to express extreme disappointment in your decision to rescind the Form LM-30, conflict of interest reporting requirements for labor unions.
Your administration has boasted about its efforts to make government more transparent. However, your decision to rescind LM-30 puts an end to the ruling that requires labor unions and their leaders to report information about their finances and compensation. The end of such reporting requirements will keep hidden potentially corrupt financial arrangements.
This decision has undercut Secretary Elaine Chao’s last efforts to make labor unions more honest and accountable to their members. Since 2001, the Office of Labor Management Standards (OLMS) has convicted more than 780 union members and officials on charges of financial corruption and restored over $110 million in dues that were misused. However, their progress toward increasing accountability and transparency in labor unions is now diminished because of your decision.
Financial transparency is especially crucial during the current economic crisis, and failed transparency leaves citizens vulnerable for financial instability. We believe financial transparency is necessary to protect unions against fraud and corruption and to enhance responsibility among union officials. Transparency is necessary for union members to effectively engage in union-self governance, and that membership dues should be used to provide services for the members – not for other purposes prohibited by law.
President Obama, I urge you to withdraw your opposition to LM-30 and side with the rank and file union workers. Your support for accountability will allow you to keep the promises you made while campaigning – you stood for the type of governing that Form LM-30 creates.
Sincerely,
Brian M. Johnson, MPA
Executive Director
Cc: U.S. Members of Congress
