Friday, December 20, 2002

Ruh oh!
Leigh Strope for the AP writes Proposed regulations would require unions to open books, report more financial detail:
The Bush administration is trying to pry open the books of labor unions to get much more detailed financial information in the annual reports they have to file with the government.

Labor Department officials said Friday they are revamping reporting requirements for the first time in more than 40 years to force the largest unions to specify how much they spend on contract negotiations and administration, organization, strike benefits, general overhead, political activities and lobbying, and to identify those expenses.

Currently, large unions can lump together much of those costs. For example, one form filed with the department said a union spent $62 million on "disbursement of grants to joint projects with state and local affiliates." Another reported $4 million spent on "sundry expenses." Such broad categories make it easy to hide possible embezzlement and mismanagement, labor officials said.
Can you say "slush fund"? I knew you could!
On Thursday, federal investigators raided the homes and offices of three former officials of the Washington Teachers Union in the nation's capital.

They were searching for hundreds of luxury items allegedly bought with more than $2 million in diverted union funds, including a $25,000 mink coat, a $13,000 flat-screen television and a $57,000 Tiffany sterling silver set with 288 pieces.

Labor Department investigations of union financial fraud result in an average of 11 criminal convictions a month, with more than 640 convictions over the past five years.
Those sundry expenses just keep piling up!

But stand by for the whining:
"It is really driven by a political agenda by the Bush administration and by groups that are virulently antiunion and want to impose huge burdens on them," said Laurence Gold, the AFL-CIO's associate general counsel.
It's a huge burden to break out your "sundry expenses"?

But the best part is:
The Labor Department began posting the reports on the Internet for the first time in June. The forms are available to the public and list expenses, revenue and salaries of all union employees. The department also has requested an additional $3.4 million in next year's budget to help strengthen enforcement and investigations of unions.
Kewl! Drop in at the DOL's web site to discover that in 2001, the NEA (warning - 10MB Adobe Acrobat download) spent $69M on "Grants to joint projects w/state and local affiliates". That's about 24% of receipts.