The National Right to Work Foundation has submitted formal comments opposing proposed rule changes that would dramatically undermine union transparency at the Obama Department of Labor (DoL). The full comments can be found here, but the long and short of it is that the Obama DoL is proposing two major changes to union disclosure under the Labor-Management Reporting and Disclosure Act (LMRDA) of 1959:
1) The first change would exempt "intermediate bodies" from LMRDA union disclosure requirements. "Intermediate bodies" are basically state and local subsidiaries of national unions, which means that Big Labor bosses could funnel forced-dues dollars to regional affiliates to avoid DoL transparency requirements if the proposed rule changes go through. Allowing union operatives to hide questionable expenditures through local and state subsidiaries clearly hampers the ability of workers to learn how their mandatory union dues are being spent.
2) The second change, which the Foundation also opposes, would no longer require Big Labor to file T-1 disclosure forms. These forms disclose financial information about Big Labor trusts – strike funds, political front groups, and other organizations unions control through board appointments, financial ccontributions, or contributions through a collective bargaining agreement. This means that Big Labor-funded organizations like American Rights at Work, a political front group that Secretary of Labor Hilda Solis served on before her appointment, would no longer be subject to basic disclosure guidelines.
Big Labor’s influence at the Obama DoL has already been extensively documented, so we can’t say we’re surprised by this development. Although transparency is a poor substitute for freeing employees from the burden of compulsory unionism, if workers continue to be forced to pay union dues, Big Labor should at the very least have to explain where the money is going. That’s why the Foundation opposes these rule changes, as well as any other attempt to undermine union transparency at the Obama DoL.
