The Office of Labor-Management Standards (OLMS) has issued new reporting procedures for unions to report the details of what are called T-1 Trusts. These new reporting efforts should help bring light to these funds that have heretofore been shielded from transparency allowing unions to use many millions of dollars without accountability from its members or the government.
A T-1 Trust fund is a nice bit of accounting sleight of hand that unions have used to fund what they claim is “retraining” of its members. But, millions of dollars end up in these funds and there are no rules to account for where this money goes or how it is being used. Rumors abound that, instead of “retraining,” this money goes into the pockets of union officials as “fees” and “salaries” to union bosses to “administer” the accounts.
There have been past reports that these funds have been used to sponsor NASCAR events and have gone into the pockets of political candidates, but the truth is, no one is really sure where it all goes. After all, there are NO rules for reporting what these funds are used for.
The government wants to shed light on these funds.
“This final rule builds on the administration’s commitment to transparency and accountability for corporations, pension funds and labor unions. Union members expect access to relevant and useful information in order to make fundamental investment, career and retirement decisions, evaluate options and exercise legally guaranteed rights,” said Don Todd, deputy assistant secretary for labor-management programs. “With meaningful disclosure, the department hopes to deter potential misuse of union trusts that have occurred in the past and allow union members to know exactly where their hard-earned dollars are being spent.”
Look for this to be either ignored by unions or actually repealed by Congress once the union bought and paid for Barack Obama gets into office.
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