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(i) How fines, and suspension or expulsion of members, are handled, including the grounds for such actions, and what the provisions and procedures are for hearings and appeals in such cases.
(j) How bargaining demands are authorized.
(m) What the provisions and procedures are for issuing
work permits. Any change in this information as supplied in the initial labor organization information report must be submitted to the Secretary of Labor with the next annual report (Forms LM-2 or LM-3, the “Labor Organization Annual Report").
The annual report is due within 90 days after the end of the organization's fiscal year and must include this information about the reporting labor organization and its financial affairs during the previous fiscal year:
1. Assets and liabilities at the beginning and end of the fiscal year.
2. Listing of receipts of any kind and where they came from.
3. Salaries, allowances, and other direct or indirect payments (including reimbursed expenses) to each officer, irrespective of amounts, and also to each employee who received more than $10,000 in the aggregate during the year from the reporting organization and any other affiliated labor organization. 4. Listing of all loans (direct or indirect)
made to any officer, employee, or member which aggregated more than $250 during the year to any one person. A statement must be included giving the purpose of each loan, the security furnished, if any, and what arrangements were made for repaying the loan.
5. Listing of all direct or indirect loans made to any business enterprise. A statement must be included giving the purpose of each loan, the security furnished, if any, and what arrangements were made for repayment.
6. Any other disbursements and the purposes for which they were made. The above information is to be shown in the categories prescribed by the Secretary of Labor.
The Form LM-3 is a simplified version of the more detailed Form LM-2 and may be used by labor organizations having gross annual receipts totalling less than $30,000.
REPORTS OF UNION OFFICERS AND EMPLOYEES
Every officer and employee (other than an employee performing erclusively clerical or custodial services) of a labor organization must file a signed report (Form LM-30, the "Labor Officer and Employee Report?) with the Secretary of Labor listing the following “conflict of interest” transactions involving himself, his spouse or minor child:
1. Direct or indirect holdings of securities or other interests in a business whose employees his labor organization represents or actively seeks to represent and any income or other monetary benefit received from such business;
2. Transactions involving securities, loans to or from, or other interests in a business whose employees his labor organization represents or actively seeks to represent;
3. Any interest in or income from a business which deals substantially with an employer whose employees his labor organization represents or actively seeks to represent;
4. Any interest in or income from a business which has any commercial dealings with his labor organization or a trust in which his labor organization is interested;
5. Any business transaction or arrangement with an employer whose employees his organization represents or actively seeks to represent, except work performed and payments and benefits received as a bona fide employee and sales and services in the regular course of business at prices available to any of the employer's employees; and
6. Any payment from an employer or an employer's labor relations consultant except payments permitted by section 302 of the
Labor Management Relations Act, 1947, as amended. Paragraphs (1) through (5) above do not require any employee to disclose bona fide investments in securities traded on a securities exchange registered as a national securities exchange under the Securities Exchange Act of 1934, or in shares in an investment company registered under the Investment Company Act of 1940, or in securities or a public utility holding company registered under the Public Utility Holding Company Act of 1935, or to report any income derived therefrom.
An officer or employee is not required to file a "conflict of interest” report unless he or his spouse or minor child has engaged in a transaction described.
REPORT OF EMPLOYERS AND LABOR CONSULTANTS AND OTIIER PERSONS
Every employer must file with the Secretary of Labor a report (Form LM-10, the "Employer Report") within 90 days after the end of the employer's fiscal year under the following circumstances:
1. If he makes payments or loans of money, or other thing of value, including reimbursed expenses, or any promise or agreement for such payments or loans to any labor organization, union officer, agent, shop steward, or other union representative or employee. (Payments permitted under section 302(c) of the Labor Management Relations Act are excepted, as are payments or loans made by any national or State bank, credit union, insurance company, savings and loan association, or other credit institution.)
2. If he pays any of his employees, or any group or committee of his employees, to get them to persuade other employees to exercise or not to exercise, or how they shall exercise, the right to organize and bargain collectively through representatives of their own choosing, unless the payment was disclosed to the other employees before or at the same time as it was made.
3. If the object of any employer expenditure is to interfere with, restrain, or coerce any employees in the exercise of their right to organize and bargain collectively through representatives of
their own choosing; or is to obtain information about the activities of employees or of a labor organization concerning a labor dispute in which he is involved, except when the information is to be used only for an administrative or arbitration proceeding or a criminal or civil judicial proceeding.
4. If he makes an agreement or arrangement with a labor relations consultant or other independent contractor or organization covering activities where an object is to persuade employees to exercise or not to exercise, or how they shall exercise, the right to organize and bargain collectively through representatives of their own choosing; or whereby such labor relations consultant or similar person or organization undertakes to supply information about the activities of employees or of a labor organization in connection with a labor dispute involving the employer, except when the information is to be used only for an administrative or arbitration proceeding or a criminal or civil judicial proceeding.
5. If he makes any payment pursuant to any such agreements or arrangements. Reports filed by employers must include:
1. A detailed statement of each covered payment, loan, promise, agreement or arrangement, showing its date and amount, and the name, address, and position, if any, in any firm or labor organization, of the person to whom it was made.
2. A full explanation of the circumstances of all such payments, and the terms of any agreement or understanding under which
they were made. Employers do not need to file reports concerning compensation paid to their regular officers, supervisors, or employees for their services as regular officers, supervisors, or employees. Also, employers are not required to file reports on the services of any person if such person only engaged or agreed to engage in the following activities: giving advice to the employer; representing the employer before a court, administrative agency, or arbitration tribunal; and engaging in collective bargaining on behalf of the employer with respect to wages, hours, or other conditions of employment.
Signed reports must also be filed with the Secretary of Labor by every person who agrees or arranges with an employer to undertake activities which have as an object, directly or indirectly:
1. To persuade employees to exercise, or not to exercise, or as to how they should exercise, the right to organize and bargain collectively through representatives of their own choosing.
2. To supply an employer with information on the activities of emplovees or a labor organization in connection with a labor dispute involving the employer, except information for use solely in conjunction with an administrative or arbitral proceeding or a
criminal or civil judicial proceeding. Form LM-20, the "Agreements and Activities Report," must be filed within 30 days after entering into the agreement or arrangement, and Form LM-21, the "Receipts and Disbursements Report," must be filed within 90 days after the end of the person's fiscal year.
The latter must report all receipts with their source, and all dis
bursements with the purpose thereof, in connection with any labor relations advice or services.
There are certain exceptions from these latter reporting requirements, as follows:
1. Reports are not required of regular officers, supervisors, or employees of any employer concerning the compensation they receive in connection with their work for such employer.
2. An attorney who is a member in good standing of the bar of any State need not report any information which is lawfully communicated to him in the course of a legitimate attorney-client relationship.
3. No person is required to make reports if he only engaged or agreed to engage in the following activities: giving advice to employers; representing employers before a court, administrative agency, or arbitration tribunal; and engaging in collective bargaining on behalf of employers with respect to wages, hours, or other conditions of employment.
SURETY COMPANY REPORTS
The Act contains bonding provisions. (See Title V, Safeguards for Labor Organizations, Section 502.) A 1965 amendment added a provision requiring surety companies to file annual reports with the Secretary of Labor describing their bonding experience under this Act and the Welfare and Pension Plans Disclosure Act. The Surety Company Annual Report, Form S-1, was developed for this purpose. It consists of four parts; I. Identification; II. Premium Data; III. Loss Data; and IV. Itemization of Losses Reported During Year.
Each surety company which has in force any LMRDA and/or WPPDA fidelity bonds, even though the volume of such bonds may be small, must file an S-1 report disclosing its annual totals of all such fidelity writings, indicating its experience separately for honesty and faithful discharge contracts under each act. It need not submit an S-1 for each separate bond or class of bonds that it has written. A single report covering a group of companies is not acceptable.
A surety company is not required to indicate on the S-1 the number of persons bonded, bonds in force, or bonds on which direct losses were paid, and it need not name the defaulter when reporting a loss. However, it must include in Part IV each loss on which notice was received during the year, whether or not the involved labor union, trust or plan is insured under a contract reported in Parts II and III.
The data called for by the form do not show losses which were not claimed. Loss data are based on the amount of the loss or the amount of the bond coverage available, whichever is less. Losses reported are not net losses; i.e., less salvage, which is applied to reduce losses in the year collected, regardless of when the loss was sustained.
DISCLOSURE AND ENFORCEMENT
All reports are public information. The Lalıor Department's Public Document Room, Jocated at 8757 Georgia Avenue, Silver Spring, Md., just outside Washington, maintains copies of all reports for public disclosure. Area offices of the Labor-Management Services Administration, which are located in 24 cities, also have on file reports for unions within areas covered. They are subject to inspection by any person, and copies may be purchased by any person upon payment of a copying charge. Unions must make the reported information available to members, and permit members for just cause to examine any books and records necessary to verify the reports. Basic records to support all reports must be kept and preserved for at least 5 years. Criminal penalties are provided for willfully falsifying, withholding, or destroying reports or other required information. When it appears that any person has violated or is about to violate Title II, the Secretary of Labor may bring a civil action in the proper Federal district court for appropriate relief, including an injunction.
The filing requirements of former sections 9 (f) and (g) of the National Labor Relations Act are repealed since they have been replaced by the new requirements of this law.
For copies of the reporting forms and instructions, write to the Office of Labor-Management and Welfare-Pension Reports, U.S. Department of Labor, Washington, D.C. 20210.
TRUSTEESHIPS (TITLE III)
Under the act trusteeships may be established over subordinate unions only in accordance with the constitution and bylaws of the labor organization imposing the trusteeship, and for one or more of the following purposes:
1. Correcting corruption or financial malpractice;
2. Assuring the performance of a collective bargaining agreement or other duties of a bargaining representative;
3. Restoring democratic procedures; or
4. Otherwise carrying out the legitimate objects of such labor organization. Labor organizations imposing the trusteeship must file special reports within 30 days of the establishment of a trusteeship and must report semiannually thereafter. In the initial report, these facts are to be included:
1. Name and address of the subordinate organization.
3. Detailed report of reason or reasons why the trusteeship was established or why it has been continued.
4. A statement of the extent to which members of the organization under trusteeship have any part in selecting delegates to represent them at union conventions or at other policymaking meetings and in electing the officers of the labor organization which has assumed the trusteeship.
5. A complete account of the financial status of the trusteed organization at the time the trusteeship went into effect. Up-to-date information on matters included in the initial report (except the information listed under No. 5) must be reported to the Secretary of Labor in semiannual reports each 6 months after the initial report is filed, for :o long as the trusteeship remains in effect.
In addition, the organization imposing a trusteeship must file on behalf of the subordinate organization the annual reports required by Title II and must use the form LM-2 for this purpose.