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Office of Labor-Management Standards (OLMS)



U.S. Department of Labor

Employment Standards Administration
Office of Labor-Management Standards
61 Forsyth Street, SW, Suite 8B85
Atlanta, GA 30303
(404)562-2083 Fax: (404)562-2087

 

June 19, 2008

Mr. Kenneth Sammons, Financial Secretary
Steelworkers, Local 237
P.O. Box 102
McIntyre, GA 31054-0102

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Dear Mr. Sammons:

This office has recently completed an audit of Steelworkers Union Local 237 under the Compliance Audit Program (CAP) to determine your organization’s compliance with the provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). As discussed during the exit interview with you and President Cecil Walters on June 6, 2008, the following problems were disclosed during the CAP. The matters listed below are not an exhaustive list of all possible problem areas since the audit conducted was limited in scope.

The CAP disclosed the following violations:

Reporting Violations

The audit disclosed a violation of LMRDA Section 201(b), which requires labor organizations to file annual financial reports accurately disclosing their financial condition and operations. The Labor Organization Annual Report Form LM-2 filed by Local 237 for fiscal year ending December 31, 2007 was deficient in the following area:

Mutual Funds Reported as Investments

Local 237 failed to properly report the full value of the local’s mutual funds in Statement A (Assets and Liabilities). The amount reported on the LM-2 did not include dividends earned to date. I am not requiring that Local 237 file an amended LM report for 2007 to correct the deficient items. But as agreed, Local 237 will properly report the full value of all mutual fund investments on all future reports filed with this agency.

Failure to File Bylaws

The audit disclosed a violation of LMRDA Section 201(a), which requires that a union submit a copy of its revised constitution and bylaws with its LM report when it makes changes to its constitution or bylaws. Local 237 provided a copy of its current constitution and bylaws during the audit, and therefore, the reporting deficiency was corrected.

I want to extend my personal appreciation to Steelworkers Union Local 237 for the cooperation and courtesy extended during this compliance audit. I strongly recommend that you make sure this letter and the compliance assistance materials provided to you are passed on to future officers. If we can provide any additional assistance, please do not hesitate to call.

Sincerely,

 

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Investigator

cc: Cecil Walters, President