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Union Transparency, EFCA, and Solis


Unions are pressing the incoming administration to rescind financial reporting requirements promulgated by the Department of Labor under Secretary Elaine Chao. Currently, labor organizations are required to report certain financial information in annual LM-2 filings. The disclosures include information regarding a union’s receipts, disbursements, accounts payable, salaries, wages of officers and employees, union dues, etc.   During the confirmation hearing for Secretary of Labor nominee Hilda Solis, senators should ask whether she supports the rescission of union disclosure requirements. Support for rescission — and its consequent reduction of transparency – would be incongruent with Solis’ proclaimed support for employee rights (Solis often makes reference to “protecting employees’ rights” and “putting workers first”). And the lack of transparency would be compounded by passage of the Employee Free Choice Act strongly supported by the nominee.   EFCA combined with reduced transparency could result in employees being ordered to pay union dues/fees to a union they never got a chance to vote on – and having only the faintest idea where those dues are going.   It’s easy to see why unions — and certain politicians – might like that. But how is that good for employees?


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