Yesterday, the Department of Labor’s Office of Labor-Management Standards (OLMS) posted on its website a weak final rule which revises standards governing disclosure of certain expenditures of union trusts, including union pension funds, strike funds, and credit unions.

Earlier this year, OLMS sought comments from interested parties concerning the new standards. On April 14, Glenn Taubman, staff attorney at the National Right to Work Legal Defense Foundation and counsel for the National Right to Work Committee, submitted comments regarding the gaping "sensitive information" loophole which allows union bosses to hide the very waste, fraud, and corruption that are all too common in these notoriously mismanaged and underfunded union trusts:

This "sensitive information" exception to full disclosure is simply a loophole allowing union and trust fund officials to unilaterally determine what disclosure must be made public, and then hide a vast array of questionable expenditures. Financial reports of trust fund operations and expenditures can never be considered "confidential" information, because this money is owned by the employees, not the union or trust fund officials. Fiduciary agents have no right to maintain secret records or engage in secret transactions that are purposefully hidden from principals – the employees who are the actual owners of the funds.

But instead of closing the loophole, DOL merely pays lip service to these serious concerns. The fact is — as long as this loophole exists, corrupt union bosses will be able to withhold disclosure of any expenditures they wish, claiming an exemption. DOL officials "reiterate" or "emphasize" that their sensitive information loophole should be used "sparingly." They say abuse of the loophole will be investigated. But why even have it?  There is no justifiable reason, as Foundation attorneys had explained.

The Department of Labor’s serial refusal to promulgate disclosure rules with real teeth is deeply troubling. If President Bush’s DOL appointees intend to leave so much discretion to the bureaucrats, these appointees ought to go ahead and quit now — rather than waiting until January.

Oral arguments in Locke v. Karass, the Foundation’s latest Supreme Court case, occur on Monday, October 6. Just in time, the October issue of Labor Watch features a cover story on the case by Stefan Gleason, vice president of the National Right to Work Foundation:

The U.S. Supreme Court has so far refused to recognize that all compulsory union dues, no matter how they are spent, violate workers’ First Amendment rights and that no compelling state interest exists to justify subverting these rights. However, the Court has concluded that forced union dues for certain union expenditures violates nonmembers’ First Amendment rights. U.S. Supreme Court rulings have established that union officials cannot compel nonmembers to support union lobbying, political activities and other forms of ideological expression.

On behalf of Daniel Locke and 19 other current and former Maine state employees, NRTW Foundation attorneys will argue this month that because litigation is also inherently expressive, unions cannot compel nonmembers to pay for it. Moreover, because litigation regarding a union’s affiliates in another state does not affect the union’s own collective bargaining process, there should be a bright line drawn to ensure that no extra-unit litigation is ever subsidized by objecting nonmembers.

Union lawyers insist workers must pay for litigation activities that unions undertake outside their own bargaining unit using a pooling arrangement that union bosses analogize to insurance. If union bosses get their way, unions will be permitted to seize dues from members and nonmembers alike – even from employees who never wanted a union’s “representation” – and pool them together in a giant slush fund to subsidize Big Labor’s lawsuit machine.

Read the full article online (PDF only).

The National Labor Relations Board (NLRB) has ruled in favor of a nonunion worker represented by National Right to Work Foundation attorneys, finding that Interstate Bakeries Corp. and local Teamsters union officials violated the law when they stripped a nonmember worker of his seniority during a merger.

In November of 2005, company and union officials agreed to consolidate two corporate divisions. One division was staffed by a single nonunion sales representative who had put in more time with the company than any of his counterparts at the other division. Company officials tried to ensure that he retained his seniority during the merger, but Teamsters officials stood fast, insisting on discriminating against him because of his nonunion status.

In the sales business, seniority has serious implications for workers. The longer you’ve been with the company, the better your chances are of securing more desirable sales routes and vacation time. In this case, union officials wanted to unilaterally strip a nonunion sales representative of his earned seniority, placing him at the bottom of the totem pole. It was effectively retaliation for his nonunion status.

Fortunately, the NLRB agreed with Foundation attorneys and found that union officials broke the law when they discriminated against the nonunion sales representative by favoring unionized employees during the merger. Here’s the crux of the decision (emphasis mine):

The only difference between Rammage [the nonunion worker] and those Dolly Madison employees who were dovetailed [given favorable seniority status during the merger] was the fact that Rammage had not previously been represented by the Union. The Union admits that it treated Rammage differently and unfavorably because he was not previously represented. In addition, the comments of Respondent Employer’s managers Roberts and Simmons to Rammage, that he lost his seniority because "he was not in the Union," demonstrate that he was singled out becasue he had not previously been represented by a labor organization.

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On Friday, a United States District Court judge sentenced a former union organizer to six months in prison and three years of probation for his participation in an arson against a nonunion concrete plant. The Albany Times Union has the details:

The May 2003 arson was part of an organized effort by two union officials to sabotage companies that were using non-unionized workers at construction sites.

The sentencing of Michael Kwarta, 32, who had served as a labor organizer and sergeant-at-arms for Local 190 of Glenmont, marked the culmination of a meandering federal investigation into the underworld of Albany’s politically connected laborers’ unions.

The arson triggered a federal grand jury investigation of the union’s ties to elected officials, public contracts and organized crime figures, and also whether top union leaders had authorized the firebombing.

Even though just about everybody in the union knew about Kwarta’s role in the arson — when an accomplice "hurled two Molotov cocktails at an operations trailer filled with computer equipment and it caught fire" — union hierarchy gladly kept him on the payroll for five years until just days before he entered his guilty plea.  (Apparently he was just doing his job.)

For all their government-imposed special privileges, union thugs aren’t above the law. Oh, actually, in many ways, they are:

The most egregious example of organized labor’s special privileges and immunities is the 1973 United States v. Enmons decision. In it, the United States Supreme Court held that union violence is exempted from the Hobbs Act, which makes it a federal crime to obstruct interstate commerce by robbery or extortion. As a result, thousands of incidents of violent assaults (directed mostly against workers) by union militants have gone unpunished. Meanwhile, many states also restrict the authority of law enforcement to enforce laws during strikes.

Make no mistake, union violence is anything but dead.

The cover story of the September/October issue of Foundation Action covers efforts by the Foundation to expose an SEIU union political fundraising scheme that coerces workers to support union politics, and to get the Department of Labor and Department of Justice investigate the scheme.

Read the whole story here (pdf) and sign up today for a free print subscription.

To receive the entire issue via email, just type your email address into the box in the top right corner of this page.

Big Labor apologist Mark Weisbrot had a piece defending the woefully misnamed Employee Free Choice Act in Tuesday’s Chicago Sun-Times. Money quote (emphasis mine):

This law would probably change Americans’ lives more than any legislation since the New Deal brought us Social Security. The political influence of millions of new union members would also bring us closer to such basic reforms as universal health care. It’s all long overdue.

Of course, millions of new forced dues paying union members would only increase union bosses’ influence, not the workers’ influence — nearly half of whom do not support Big Labor’s political agenda.

Meanwhile, American who agrees with Big Labor’s political agenda can already choose to financially (or otherwise) support union-backed candidates and causes. But union bosses, you see, know better than the average worker. The average worker isn’t giving enough support to the Far Left politicians prefered by union officials on his own. So union bosses want to use dues money, seized from workers’ paychecks, to finance their own political activism.

Worse, an increase in Card Check forced unionism will open the doors for rampant intimidation of workers by union goons — so much of the increased dues money going to these politics will be from workers who were pressured into union ranks through card check.

Employees should indeed have a free choice — to determine their own representation and to decide for themselves if they want to join a union or fund its political activism.

Since you already read this blog (after all you’re here aren’t you) here are some other ways you can keep up with everything the National Right to Work Foundation does to defend employees from the abuses of compulsory unionism:

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These are just a few of the many ways to stay on top of the critical developments in the Right to Work movement. Whether you are at work, at home, or on vacation, all you need is a computer to get started.

Responding to a request from the National Right to Work Foundation, the National Labor Relations Board (NLRB) has finally made its so-called "voluntary recognition” database available to the public by posting it online.

So-called “voluntary recognitions” occur when union bosses and leveraged employers agree to bargain without the affected employees ever having chosen the union through an NLRB-supervised secret-ballot election. Such recognitions are the ultimate goal of most vicious, multi-pronged pressure campaigns waged by union forces against targeted employers.

As result of the Foundation’s Dana/Metalydyne victory, employees may now obtain a traditional decertification election immediately after finding themselves pressured into union ranks through "card check" or other means.

However, in order to obtain the ability to block employees from freeing themselves from union monopoly bargaining once 45 days have elapsed, union officials must now report the occurance of a voluntary recognition in the first place. This “VR Database” is now available on-line and allows the public to see the over 380 so-called “voluntary recognitions” recorded in the past year.

As of September 9, interested persons may access the database by going to the NLRB website and clicking on “ Frequently Requested Documents” under the “What’s New” column. The database can be found by scrolling down to “Dana Corp. and Metaldyne Briefs and Documents” and clicking on “Post Dana Corp. Case Processing” or by going here.

The Salt Lake Tribune recently ran the following letter to the editor by Foundation Vice President Stefan Gleason in response to an editorial regarding the Foundation’s recent victory in federal court over attempts by union partisans to silence the Foundation’s legal aid program using Utah’s campaign finance regulations:

A newspaper should understand that the First Amendment isn’t merely a "loophole," as implied by The Tribune editorial "Repairs needed: Campaign financing laws should be tougher" (Sept. 11) about the National Right to Work Foundation’s federal court victory that struck down as unconstitutional key parts of Utah’s campaign finance law.

After the foundation received from Utah teachers reports of coercion and illegal use of school property during a union-run petition drive, it ran radio and TV ads informing teachers of their rights and offering free legal aid. Union activists were upset that we would dare to help teacher victims, and they used state campaign finance laws to retaliate. Utah Lt. Gov. Gary Herbert blundered in trying to force our charitable organization to hand over contributor names and other information, even though we never engaged in any kind of electioneering. Herbert’s ham-handed actions led to the deserving demise of Utah’s broad and vague speech regulations.

The editorial noted that legislators must now go back to the drawing board. This time, they ought to read the First Amendment before putting pen to paper.

Stefan Gleason
Vice President
National Right to Work Legal Defense Foundation, Inc.
Springfield, Va.