In the interest of fair union elections, section 401(g) of the Act
places two limitations upon the use of labor organization funds derived
from dues, assessments, or similar levy. These limitations are:
(a) No such funds may be contributed or applied to promote the
candidacy of any person in an election subject to title IV, either in an
election within the organization expending the funds or in any other
labor organization; and
(b) No such funds may be used for issuing statements involving
candidates in the election.
This section is not intended to prohibit a union from assuming the cost
of distributing to the membership on an equal basis campaign literature
submitted to the union by the candidates pursuant to the rights granted
by section 401(c), as previously discussed, nor does it prohibit the
expenditure of such funds for notices, factual statements of issues not
involving candidates, and other expenses necessary for the holding of
the election.
