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Concerns About Controlling Union Employees' Benefit Funds by the Carpenters Collection Agency, Youngstown, OH

HRD-83-8 Published: Nov 12, 1982. Publicly Released: Nov 22, 1982.
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Highlights

GAO was asked to examine: (1) the legality and functions of the Carpenters Central Collection and Administrative Agency (CCA), a nonprofit Ohio corporation that collects fringe benefit contributions from building trade employees; and (2) the timeliness and effectiveness of the Department of Labor's investigation and reporting of CCA activities.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Labor If the Solicitor's Office determines that CCA is not a labor organization under the Labor-Management Retirement Disclosure Act (LMRDA) and CCA cannot be required to report through the administrative process, the Secretary of Labor should propose to Congress that the statutory definition of a labor organization be changed to include such entities as CCA.
Closed – Not Implemented
It is unlikely action will be taken on this recommendation in the near future because: (1) CCA is involved in a law suit with the National Union concerning the Ohio State Council's trusteeship; and (2) Labor's proposed amendment to LMRDA probably will not be a priority item in the new administration.
Department of Labor The Secretary of Labor should have the Solicitor seek the opinion of the Department of Justice as to whether CCA: (1) is a union representative; and (2) violates section 302(c) of the Taft-Hartley Act by collecting employee benefit funds from employers.
Closed – Implemented
In Justice's opinion, CCA conduct, described in reports furnished by Labor, did not constitute a violation of the Taft-Hartley Act.
Department of Labor The Secretary of Labor should issue a demand letter to the Health and Welfare Fund trustees directing them to enter into a consent order. The actions proposed by the Office of Enforcement to eliminate the reported CCA ERISA violations should be considered in the preparation of the demand letter.
Closed – Implemented
On March 8, 1984, Labor entered into a settlement agreement with the Ohio Carpenters Health and Welfare Fund, the Trustees of the Ohio Carpenters Health and Welfare Plan, and CCA to remedy ERISA violations noted by Labor.

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Topics

Employee benefit plansFinancial managementLabor relationsLabor unionsPensionsEmployeesCompensationCertified public accountantsInterest earnedVoluntary compliance