Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
New York District Office
201 Varick Street
New York, NY 10014
(646)264-3190 Fax: (646)264-3191
January 15, 2009
Mr. Joseph Buscemi, President
Electrical Workers AFL-CIO
3650 Route 112
Coram, NY 11727
Re: Case Number: ||||||||||||||
Dear Mr. Buscemi:
This office has recently completed an audit of IBEW Local 2230 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, Vice President Philip Pizzo, Recording Secretary Carl McKeever, Financial Secretary Anthony Boggi, and Treasurer Frank Raynor on December 22, 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 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-3) filed by Local 2230 for fiscal year ending July 31, 2008, was deficient in that the union failed to accurately disclose settlement payments received from the employer Brookhaven National Laboratory secured through grievance proceedings. The settlement payments received in November 2007 and June 2008 totaled $75,367.29. Local 2230 submitted an amended Labor Organization Annual Report (Form LM-2) since the annual receipts exceeded $250,000 for fiscal year ending July 31, 2008.
The audit revealed a violation of LMRDA Section 502 (Bonding), which requires that union officers and employees be bonded for no less than 10 percent of the total funds handled by those individuals or their predecessors during the preceding fiscal year. Local 2230’s officers and employees are currently bonded for $35,000, but they must be bonded for at least $35,197. Adequate bonding coverage of $50,000 was obtained and documentation provided during the audit. No further enforcement action will be taken.
I want to extend my personal appreciation to IBEW Local 2230 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.
cc: Recording Secretary Carl McKeever