U. S. DEPARTMENT OF LABOR

Office of Labor-Management Standards
Atlanta District Office
61 Forsyth Street. SW, Suite 8B85
Atlanta, Georgia 30303
(404)562-2083 / FAX (404)562-2087

September 24, 2008

Mr. Jose Rodriguez-Baez, President
Federacion Del Trabajo de Puerto Rico, AFL-CIO
P.O. Box-Fernandez Juncos Station
San Juan, P.R. 00910-1689

LM File Number 540-724
Case Number: ---------------------------

Dear Mr. Rodriguez-Beaz:

This office has recently completed an audit of the Federacion Del Trabajo de P.R., 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 August 14, 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 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 union for fiscal year ending December 31, 2001, was deficient in that the union reported it was bonded for $14,000, when in fact it had no coverage.

The audit disclosed the following other violation:

1. 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 Federacion Del Trabajo de P.R., officers and employees were not bonded for the minimum amount required at the time of the audit. The union should obtain adequate bonding coverage for its officers and employees immediately using the formula detailed above. Please provide proof of bonding coverage to this office as soon as possible but not later than October 31, 2008.

I want to extend my personal appreciation to the Federacion Del Trabajo de P.R., for the cooperation and courtesy extended during this compliance audit. I strongly recommend that you make sure this letter and the compliance assistance provided to you are passed on to future officers. If we can provide any additional assistance, please don't hesitate to contact me or our Puerto Rico Resident Investigator Office; San Patricio Office Center, 7 Tabanuco Street, Suite 404, Guaynabo, PR 00968, telephone: (787) 277-1547.

Sincerely,
-------------
------------------
Investigator

cc: Renan Soto, Treasurer