Date Issued: March 29, 1996
Case No: 96-SOC-3
In the Matter Of:
DIRECTOR, OFFICE OF ELECTIONS,
TRUSTEESHIPS AND INTERNATIONAL
UNION AUDITS, (DOL),
Complainant,
v.
LOCAL 3266, GOVERNMENT EMPLOYEES, AFGE
Respondent.
RECOMMENDED DECISION AND ORDER
This case arises under Title VII of the Civil Service Reform
Act of 1978 (5 U.S.C. 7120], and the reporting requirements for
labor organizations as set forth in Section 201 of the Labor
Management Reporting and Disclosure Act of 1959, as amended (29
U.S.C. 401, et seq.]. The federal regulations pertinent to this
case are provided at 29 C.F.R. Parts 402, 403, 408 and 458.
The Director, Office of Elections, Trusteeships and
International Union Audits (Director), filed the complaint
involved in this case on October 24, 1995. The Director alleges
in his complaint that an investigation was conducted pursuant to
29 C.F.R. § 458.66 which led to the conclusion that there
was probable cause to believe that the respondent committed
violations of the civil Service Retirement Act. It is further
provided in the complaint that a conference was held regarding
the Director's investigative findings and that no remedial action
could be agreed upon. The Director goes on to state that the
respondent failed to file a Labor Organization Annual Financial
Report for the respondent's labor organization's fiscal years
ending January 31 of 1991, 1992, 1993, 1994 and 1995 on U.S.
Department of Labor Form LM-2 or LM-3, whichever may be
appropriate, as required by Sections 201(b) and 207(b) of the
Labor Management Reporting and Disclosure Act and the rules and
regulations promulgated by the Secretary of Labor pursuant to
Section 208 of the Act, as published in 29 C.F.R. §§
402 and 403, although the time for filing expired. The Director
therefore prays for a judgment directing and compelling the
respondent to file the required financial reports for the
respectively
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indicated years. The Director also prays for costs of this
action and for other relief as may be appropriate.
The respondent did not file an answer to the Director's
complaint. I therefore issued an order on January 19,, 1996 in
which I allowed the Director ten days to file a waiver of its
prayer for costs or submit an itemization of the costs incurred
by Director's counsel in pursuing this action, together with a
memorandum of law supporting an award of such costs under the
statutes and regulations pertinent to this case. On February 14,
1996, the Director filed a waiver of costs.
Findings of Fact
1. Respondent, Government Employees, Local 3266 is, and at
all times relevant to this matter, has been an unincorporated
association with the mailing address of P.O. Box 387, Keota,
Oklahoma 74941.
2. Respondent is, and at all times relevant to this matter
has been, a labor organization within the meaning of section 701
of the Civil Service Retirement Act.
3. Respondent failed to file a Labor Organizational Annual
Financial Report for the labor organization's fiscal years ending
January 31 of 1991, 1992, 1993, 1994 and 1995 on United States
Department of Labor Form LM-2 or LM-3.
4. Director investigated complaints that the respondent
had violated provisions of the Civil Service Retirement Act.
Respondent was notified of the Director's investigative findings
and advised of the right to a conference. A conference was held
and no remedial action could be agreed upon.
5. On October 24, 1995, the Director filed the complaint
involved in this proceeding alleging the respondent violated
Sections 201(b) and 207(b) of the Labor Management Reporting and
Disclosure Act of 1959, as amended (29 U.S.C. S 401, et seq.3 and
the regulations promulgated by the Secretary of Labor pursuant to
Section 208 of that statute at 29 C.F.R. §§ 402 and 403
by failing to file the required financial reports for its fiscal
years ending January 31 of 1991, 1992, 1993, 1994 and 1995,
although the time for filing the financial statements expired.
6. Respondent has not filed an answer to the complaint of
the Director.
Conclusions of Law
1. Respondent is a labor organization within the meaning
of Section 701 of the Civil Service Retirement Act [5 U.S.C.
§ 7101]. As such, it is required to file certain financial
reports with the U.S. Department of Labor [5 U.S.C. §
7120(c); 29 U.S.C. § 431]. Section 201(b) of the Labor
Management Reporting Disclosure Act of 1959, as amended [29
U.S.C. § 431(b)] specifically provides:
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Every labor organization shall file annually with the
Secretary a financial report signed by its president and
treasurer or corresponding principal officers containing the
following information in such detail as may be necessary
accurately to disclose its financial condition and operations for
its preceding fiscal year--
(1) assets and liabilities at the beginning and end of
the fiscal year;
(2) receipts of any kind and the sources thereof;
(3) salary, allowances, and other direct or indirect
disbursements (including reimbursed expenses) to each officer and
also to each employee who, during such fiscal year, received more
than $10,000 in the aggregate from such labor organization and
any other labor organization affiliated with it or with which it
is affiliated, or which is affiliated with the same national or
international labor organization;
(4) direct and indirect loans made to any officer,
employee, or member, which aggregated more than $250 during the
fiscal year, together with a statement of the purpose, security,
if any, and arrangements for repayment;
(5) direct and indirect loans to any business
enterprise, together with a statement of the purpose, security,
if any, and arrangements for repayment; and
(6) other disbursements made by it including the
purposes thereof; all in such categories as the Secretary may
prescribe.
Section 207(b) of that same statute goes on to require that
each labor organization file the report required under 29 U.S.C.
§ 431(b) within 90 days after the end of each fiscal year.
29 U.S.C. § 437(b).
The above findings of fact are based on the Director's
complaint dated October 24, 1995. Since the respondent did not
file an answer to the complaint within 20 days from the service
of the complaint as required by 29 C.F.R. § 458.68(a), I am
required by subsection (b) of that regulation section to find all
of the allegations set forth in the complaint as admitted by the
respondent. 29 C.F.R. §§ 458.68(b), 458.71. Thus, I
have found that the respondent failed to file its required
financial reports with the U.S. Department of Labor for its
fiscal years ending January 31 of 1991, 1992, 1993, 1994 and
1995.
It is provided in 29 C.F.R. § 458.66 that whenever it
appears to the Director that violations of the Civil Service
Retirement Act have occurred, it shall notify the labor
organization of its findings and of its right to a conference
concerning the violations. If an agreement is not reached
regarding remedial action at this conference, then it is the
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Director's responsibility to institute enforcement proceedings by
the filing of a complaint with the Office of Administrative Law
Judges. See 29 C.F.R. § 458.66(c). As my findings of fact
indicate, the Director sought remedial action in this case to no
avail. Therefore, it has properly brought the complaint involved
in this proceeding.
Based on the above findings of fact and Sections 201(b) and
207(b) of the Labor Management Recording and Disclosure Act of
1959, as amended, I find that the respondent was required to file
its annual financial reports for its fiscal years ending January
31 of 1991, 1992, 1993, 1994 and 1995 within 90 days of the end
of the respective fiscal year. Since the respondent has not
filed the financial reports for the fiscal years ending January
31 of 1991, 1992, 1993, 1994 and 1995, it has violated Section
207(b) of that statute. 29 U.S.C. S 437(b). Thus, it should be
directed and compelled to file the required financial reports on
the U.S. Department of Labor Form LM-2 or LM-3, whichever is
appropriate.
ORDER
For the above-stated reasons, IT IS HEREBY RECOMMENDED to
the Assistant Secretary of Labor pursuant to 29 C.F.R. S 458.88
that the respondent, Local 3266, Government Employees, AFGE, be
directed and compelled to file annual financial reports on United
States Department of Labor Form LM-2 or LM-3, whichever may be
appropriate, as required by Sections 201(b) and 207(b) of the
Labor Management Reporting and Disclosure Act of 1959, as amended
[29 U.S.C. §§ 431(b), 437(b)], and the regulations
promulgated pursuant to Section 208 of that statute [29 U.S.C.
§§438], as set forth at 29 C.F.R. Parts 402 and 403,
for the labor organization's fiscal years ending January 31 of
1991, 1992, 1993, 1994 and 1995.
DONALD W. MOSSER
Administrative Law Judge
