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Office of Labor-Management Standards
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Office of Labor-Management Standards (OLMS)


U.S. Department of Labor

Office of Labor-Management Standards
Cleveland Office
1240 East 9th Street, Suite 831
Cleveland, OH 44199
(216) 357-5455 Fax: (216) 357-5425






September 25, 2014



James Bonsky, Financial Secretary
USW Local 1200
733 Hamilton Ave. NE
Canton, OH 44704-2376
Case Number: 350-6002287()
LM Number: 013733


Dear James Bonsky:

This office has recently completed an audit of USW Local 1200 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 15, 2014, 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.

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-3 filed by Local 1200 for the fiscal year ended December 31, 2013, was deficient in that:

Local 1200 erroneously used the 2012 beginning cash balance, instead of the ending cash balance, for the beginning cash balance on the 2013 LM-3 report. This resulted in a cash reconciliation error of over $54,000, despite accurately reporting receipts, disbursements, and ending cash balance on the 2013 LM-3 report.
I am not requiring that Local 1200 file an amended LM report for 2013 to correct the deficient item, but Local 1200 has agreed to properly report the deficient item on all future reports it files with OLMS.

Other Issues

Currently, Local 1200 typically compensates members for lost time before the end of the company pay period in which the lost time occurred. The union should attempt to pay lost time in a way that allows for the company pay record that documents the lost time to be attached to the lost time claim.



I want to extend my personal appreciation to USW Local 1200 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: William Sellers, President