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ESA News Release: [01/24/2007]
Contact Name: Dolline Hatchett
Phone Number: (202) 693-4676 or x4651
Release Number: 07-0109-NAT

U.S. Labor Department Releases 2006 Program Highlights for the Office of Labor-Management Standards

WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today released its FY 2006 Annual Report. The report highlights the fiscal year success of the agency and the importance of its role in supporting America's workforce through its enforcement of the Labor-Management Reporting and Disclosure Act (LMRDA).

To ensure union financial integrity, OLMS investigated more than 300 criminal cases resulting in 118 indictments and 129 convictions of union officials for embezzlement and other violations of the LMRDA. A union officer or employee who embezzles or misappropriates union funds or assets commits a federal crime punishable by a fine and/or imprisonment. Since fiscal year 2001, the courts have ordered restitution of more than $70 million in OLMS criminal cases. The FY 2006 Annual Report describes some of the most significant criminal cases during the year, including 14 additional convictions in an ongoing case involving officials of Elevator Constructors Local 1, Operating Engineers Local 14, and Laborers Local 79 in New York City.

Safeguarding union democracy also is a major responsibility of OLMS under the LMRDA. Following complaints that unions had violated election regulations, OLMS conducted 133 election investigations in fiscal year 2006, resulting in eight lawsuits seeking a new election supervised by OLMS. In 24 cases where OLMS determined that the union had violated the LMRDA's election requirements, the union voluntarily agreed to have OLMS supervise a new election. The FY 2006 Annual Report describes several of the most significant OLMS election cases, including the details of its suit against the Washington Teachers' Union to set aside an earlier election and a 2005 run-off and to supervise a new election; as well as a criminal indictment of the former president of Teamsters Local 988 in Houston, Texas, for defrauding members of their right to vote, embezzling union assets, and arranging and accepting kickbacks.

The report is available online at www.olms.dol.gov. Click on the "Annual Reports" link listed under "About OLMS."

Part of the Department of Labor's Employment Standards Administration, OLMS is the front line agency responsible for enforcing most criminal and civil provisions of the LMRDA. Its mission is to ensure fiscal responsibility and basic standards of democracy in labor organizations representing employees in private industry. For further information, please visit www.olms.dol.gov.

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