U.S. Department of Labor

Employment Standards Administration
Office of Labor-Management Standards
St. Louis District Office
1222 Spruce Street
Room 9 109E
St. Louis, MO 63103
(314)539-2667 Fax: (314)539-2626


July 24, 2008

 

Mr. Glynn Ramage, Business Manager
Southwestern Illinois Laborers
District Council 8
3 Meadow Heights Professional Park
Collinsville, IL 62234

LM File Number 001-826
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Dear Mr. Ramage:

This office has recently completed an audit of Laborers District Council 8 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 on July 10, 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 audit disclosed the following other violation:

Inadequate Bonding

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 those individuals or their predecessors handled during the preceding fiscal year.

The audit revealed that District Council 8’s officers and employees were not bonded for the minimum amount required at the time of the audit. District Council 8’s bond amount is $185,000, but the audit revealed it should be at least $192,000. You were advised that if you anticipate an increase in receipts in the next few years, it may be easier to increase the bond to $200,000. This would prevent you from having to raise the bond amount every year. During the exit interview, you said District Council 8 will immediately increase their bond amount and will provide evidence of this to OLMS when it is received. As a result, OLMS will take no further enforcement action regarding this issue.

I want to extend my personal appreciation to Laborers District Council 8 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