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Office of Labor-Management Standards (OLMS)

U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
New Haven Resident Office
150 Court Street
Room 209
Giaimo Federal Building
New Haven, CT 06510
(203)773-2130 Fax: (203)773-2333

March 16, 2007

Mr. Raymond C. Knox, President
Government Employees AFGE LU 1674
950 Campbell Avenue
Building 5 Suite No. C258
West Haven, CT 06516

Re: Case Number

LM File Number: 502-071

Dear Mr. Knox:

This office has recently completed an audit of Government Employees AFGE LU 1674 under the Compliance Audit Program (CAP) to determine your organization's compliance with the provisions of the Civil Service Reform Act of1978 (CSRA), 5 U.S.C. 7120, and the Department's regulations, 29 CFR 458. As discussed during the exit interview with you on May 4, 2007, 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.

Violation

The audit disclosed the following violation:

Inadequate Bonding

The audit revealed a violation of bonding requirements. Pursuant to 29 C.F.R. Section 458.35, officers and employees of any labor organization subject to the CSRA are required to be bonded for no less than 10 percent of the total funds those individuals or their predecessors handled during the preceding fiscal year. Officers and employees of Local 1674 are currently bonded for $7,500; however, they must be bonded for at least $13,087. However, you advised this office on May 10, 2007, that you have contacted the Government Workers AFGE District office and requested that your organization's bond be increased to $15,000, and that the District Vice President has forwarded this request to your national parent body. When you have received the new bonding certificate, you have agreed to provide a copy to this office. As a result, OLMS will take no further enforcement action regarding this issue.

I want to extend my personal appreciation to Government Employees AFGE LU 1674 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,
Investigator

cc: Ms. Joann Affie, Treasurer