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ESA News Release: [12/28/2007]
Contact Name: Loren Smith or Richard Manning
Phone Number: 202-693-4676
Release Number: 07-1954-NAT

U.S. Labor Department reports $32 million in court-ordered union fund restitutions for workers in FY 2007

WASHINGTON — The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today announced its criminal enforcement data for Fiscal Year (FY) 2007, highlighting increases over previous years. Court-ordered restitution of union funds has risen in each year since FY 2001, with only one exception. In FY 2001, the amount was just under $2 million and in FY 2007, the amount was over $32 million. Criminal case processing is up 10 percent over FY 2001 (406 from 370), while convictions are up 16 percent (118 from 102). The bulk of the cases involve the embezzlement of union funds.

"Workers' union dues are being aggressively protected with more than $100 million ordered returned in this decade," said Deputy Assistant Secretary for Labor-Management Standards Don Todd. "Criminal activity such as we've found in these cases must be uncovered and prosecuted wherever possible. The workers that own this money deserve nothing less."

Another major initiative of OLMS has been an increase in the number of union audits. In FY 2004, increased staffing enabled OLMS to establish a new unit with the express mission of increasing OLMS audit presence in international unions, as well as assisting local unions in meeting disclosure requirements, thus enhancing compliance.

OLMS is the federal law enforcement agency responsible for administering most provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). The agency's criminal enforcement program includes investigations of embezzlement from labor organizations, extortionate picketing, deprivation of union members' rights by force or violence, and fraud in union officer elections. In cases where racketeering and/or organized crime are involved, OLMS works with the Department of Labor's Office of Inspector General, which is the lead agency in those cases. The agency's civil program collects and publicly discloses unions' annual financial reports, conducts compliance audits of labor unions and seeks civil remedies for violations of union officer election procedures.

OLMS's public disclosure Web page at www.unionreports.gov contains union annual financial reports and additional forms required to be filed under the LMRDA. Other information, including a fact sheet on OLMS results and synopses of certain recent enforcement actions, is available on the OLMS Web site, www.olms.dol.gov.