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.
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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.
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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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Employee benefit plansFinancial managementLabor relationsLabor unionsPensionsEmployeesCompensationCertified public accountantsInterest earnedVoluntary compliance