IN MEMORIAM—ARTHUR F. ROSENFELD

Arthur F. Rosenfeld, the Director of the Office of Labor-Management Standards, passed away on May 

16, 2020. In the words of Secretary of Labor Eugene Scalia, “the Department and the labor and 

employment bar have lost an accomplished lawyer and public servant, admired colleague, and treasured 

friend.”

 

Director Rosenfeld had more than 40 years of labor law and labor-management experience in the private 

and public sectors. He managed three key Federal agencies instrumental in labor-management relations, 

collective bargaining, and dispute mediation and arbitration. He managed each agency with a 

combination of unsparing intellect and warm humor. 

Director Rosenfeld began his work with OLMS in July of 2018. While OLMS Director, the agency 

engaged in multiple complex rulemakings, which eased regulatory burdens and increased labor 

organization transparency and financial integrity. Under his leadership, OLMS processed billions of 

dollars of mass transit grant applications, enabling transit authorities to receive grant funds while 

ensuring that mass transit employees were protected. He also reintroduced a long-dormant international 

compliance audit program, focusing on the most difficult and complex labor organization finances. 

Director Rosenfeld strengthened a voluntary compliance program by providing approximately 40 

international and national union partners with compliance assistance tools and information. While 

leading OLMS, he introduced new training programs to ensure that OLMS investigators had the skills 

they needed to accomplish the agency’s mission. Ever mindful of our agency’s history, he joined the 

Deputy Secretary of Labor in commemorating the 60th Anniversary of the Landrum-Griffin Act with a 

Department of Labor Hall of Honor induction ceremony. 

Director Rosenfeld held a JD from Villanova School of Law, an MBA from Lehigh University, and a BA 

from Muhlenberg College. He was a member of the District of Columbia Bar and the Bar of the Supreme 

Court of the United States.

Director Rosenfeld was a labor law attorney for the U.S. Chamber of Commerce from 1979 to 1984, and 

worked as a litigation attorney for Hansell & Post from 1984 to 1986. From 1986 to 1997, he held 

various positions in the Department of Labor, including Acting Associate Deputy Secretary of Labor and 

Special Assistant to the Solicitor. He served as Senior Labor Counsel of the Senate Committee on 

Health, Education, Labor, and Pensions from 1997 to 2001.

2019 Annual Report

Office of Labor-Management Standards

U.S. Department of Labor

Andrew D. Auerbach, Deputy Director 
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The Senate unanimously confirmed Arthur F. Rosenfeld to be General Counsel of the National Labor 

Relations Board on May 26, 2001. There he served, until 2006, as chief prosecutor with final authority 

concerning investigation of charges and issuance and prosecution of complaints arising under the 

National Labor Relations Act. 

From 2006 to 2009, he was the 16th Director of the Federal Mediation and Conciliation Service. While 

heading this independent Federal agency, whose primary mission is to prevent or minimize labormanagement disputes, he personally mediated disputes of national impact, including helping to end a 52-

day national strike by members of the International Association of Machinists and Aerospace Workers 

against the Boeing Company in 2008.

Later, as a private attorney, Director Rosenfeld maintained a practice specializing in labor-management 

dispute resolution, arbitration and mediation. He also worked for the District of Columbia Public 

Employee Relations Board Hearing Office.

Prior to joining OLMS, Director Rosenfeld served as Senior Counselor to the Solicitor of Labor. In that 

role, he provided advice to the Solicitor of Labor on representing the Secretary and client agencies in all 

necessary litigation, including enforcement actions and defensive litigation, and in alternative dispute 

resolution activities. “Arthur was an exceptional attorney and an even better friend,” said Solicitor of 

Labor Kate O’Scannlain. “He had a larger-than-life presence and a razor-sharp sense of humor and wit. 

May God bless Arthur and may he rest in eternal peace. We will miss him dearly.”

The Office of Labor-Management Standards extends heartfelt condolences to the family of Director 

Rosenfeld. He was an exceptional individual who led with decisiveness and vision. His lifelong 

dedication to the rule of law and to labor-management harmony and equity has left a lasting impact on 

OLMS and on our Nation’s employers and workers.
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Introduction

When the Labor-Management Reporting and Disclosure Act (LMRDA) was enacted in 1959, Congress 

declared “it is essential that labor organizations, employers and their officials adhere to the highest 

standards of responsibility and ethical conduct in administering the affairs of their organizations, 

particularly as they affect labor-management relations.” The LMRDA promotes union democracy and 

financial integrity in private sector labor unions through standards for union officer elections and union 

trusteeships and safeguards for union assets. Unions representing U.S. Postal Service employees 

became subject to the LMRDA with the passage of the Postal Reorganization Act of 1970. 

Additionally, the LMRDA promotes transparency through reporting and disclosure requirements for 

labor unions and their officials, employers, labor relations consultants, and surety companies. The 

Office of Labor-Management Standards (OLMS) continues to pursue this important mission through 

criminal and civil enforcement of the LMRDA.

The major provisions of the LMRDA, by title, are as follows:

• Title I: Bill of Rights for union members;

• Title II: Requirements for reporting and disclosure by labor unions, union officers and 

employees, employers, labor relations consultants, and surety companies;

• Title III: Rules for establishing and maintaining trusteeships;

• Title IV: Standards for conducting fair elections of union officers; and

• Title V: Safeguards for protecting union funds and assets.

OLMS also administers provisions of the Civil Service Reform Act of 1978 (CSRA) and the Foreign 

Service Act of 1980 (FSA), which extend comparable protections to federal labor unions. In addition, 

OLMS administers the Department’s responsibilities under the Federal Transit Act by ensuring that 

equitable arrangements protecting mass transit employees are in place before the release of federal transit 

grant funds.

OLMS is the front line agency responsible for enforcing the LMRDA through its criminal and civil 

investigations. Criminal investigations include embezzlement, deprivation of rights by violence, 

extortionate picketing, willful failure to file reports, filing false reports, prohibited union office holding or 

employment of convicted persons, and fraud related to union elections. Civil investigations include

violations of the LMRDA involving union election procedures, financial disclosure requirements, and 

trusteeship standards. OLMS also conducts audits of union finances.

Compliance assistance also plays a major role in OLMS enforcement strategy. OLMS has an active 

compliance assistance program to promote voluntary compliance with the LMRDA by informing union 

officers and employees of their responsibilities and informing members of their legal rights.
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Summary

This report consists of five sections, with related tables and charts.

• Section 1 presents key FY 2019 criminal enforcement and performance results pursuant to LMRDA 

Title V (financial safeguards for labor organizations) together with noteworthy criminal enforcement 

actions. A complete listing of the FY 2019 criminal actions is located on the OLMS website for 

calendar years 2018 and 2019.

• Section 2 presents key FY 2019 civil enforcement and performance results pursuant to LMRDA 

Title III (trusteeships) and Title IV (union officer elections) together with noteworthy union officer 

election case summaries. A listing of all FY 2019 voluntary agreements for OLMS-supervised 

union officer elections for calendar years 2018 and 2019 is located on the OLMS website. FY 2019

court actions for election investigations for calendar years 2018 and 2019 are located on the OLMS 

website. Final decision letters in election and trusteeship cases are located on the OLMS website in 

the FOIA reading room.

• Section 3 presents reporting and disclosure data and related program activity pursuant to LMRDA 

Title II (reporting requirements). Section 3 also presents key FY 2019 reporting, enforcement, and 

performance results. Reports are available for public disclosure on the OLMS Online Public 

Disclosure Room website, www.unionreports.gov. 

• Section 4 summarizes grant certification activity pursuant to the section 13(c) program, which 

ensures fair and equitable arrangements protecting mass transit employees, as required by the 

Federal Transit Act.

• Section 5 briefly describes compliance assistance activities conducted in FY 2019.

OLMS Annual Reports for 2004–2018 are located on the OLMS website.

Program Activities

1. Safeguarding Union Assets

As part of the effort to protect and safeguard union funds and assets, OLMS investigates possible 

embezzlement from unions and other violations of criminal laws. OLMS also conducts audits of labor 

unions to detect embezzlements and ensure and promote compliance with the LMRDA. Compliance 

audit closing letters are located on the OLMS website. Because it is not feasible to audit every union, 

OLMS developed a methodology to direct its auditing resources to unions where criminal activity is 

more likely to be found. The effectiveness of this methodology is measured by the percentage of audits 

resulting in the opening of a “fallout” criminal case.

In FY 2019, OLMS exceeded its performance goal by achieving a fallout rate of 19 percent. By 

achieving this high percentage of audits resulting in criminal case fallouts, OLMS was able to redirect 

resources from audits to its criminal investigation program. Thus, despite reduced agency resources, 

OLMS still exceeded its planned numbers of both compliance audits and criminal investigations 

completed.
5

Union officers, employees, and representatives have a duty to manage the funds and property of the 

union solely for the benefit of the union in accordance with its constitution. A union officer or 

employee who embezzles or misappropriates union assets commits a federal crime punishable by 

imprisonment or fine, or both. OLMS is responsible for investigating these crimes. Further, section 

504 of the LMRDA prohibits individuals convicted of certain crimes from holding union office or 

employment or serving in other prohibited capacities. The bar continues for 13 years after conviction 

or after the end of imprisonment, whichever is later. The following are some of the most significant 

criminal enforcement actions from FY 2019.

More Former Union Officials Pleaded Guilty and Sentenced for Union-Auto Industry Corruption

In 2019, the ongoing investigation of union and auto industry corruption involving the United Auto 

Workers International Union (UAW) in Detroit, Michigan, produced additional criminal prosecutions 

in the United States District Court for the Eastern District of Michigan. The joint investigations 

conducted by OLMS, the Department of Labor’s Office of Inspector General, the Federal Bureau of 

Investigation, and the Internal Revenue Service focused on criminal conspiracies in which UAW 

officials committed fraud and embezzlement, took bribes and kickbacks, and laundered money. In 

August 2019, Norwood Jewell, former UAW Vice President of the Chrysler Department and former 

Director of the UAW-Chrysler National Training Center (NTC), was sentenced to 15 months in prison 

and 12 months of supervised release. Jewell had previously pleaded guilty for conspiracy to violate the 

Labor Management Relations Act for funneling money and things of value from Fiat Chrysler 

Automobiles (FCA) to UAW officials and to use their NTC credit cards to make more than $40,000 in 

purchases for himself, senior UAW officials, and other UAW members that were delivered through and 

concealed by the NTC. In 2019, Michael Grimes and Jeffery Pietrzyk, two former senior officials in 

the General Motors Department of the UAW, both pleaded guilty to one count of conspiracy to commit 

honest services wire fraud and one count of conspiracy to commit money laundering. They will be 

sentenced in 2020. Together with the seven individuals prosecuted previously, Jewell, Grimes, and 

Pietrzyk brought the total to 10 defendants who have pleaded guilty and eight who have been sentenced 

in the ongoing criminal investigation into corruption within the UAW and FCA. Additional union 

officials are under prosecution in FY 2020.

Former Union Employee Sentenced to Prison for Embezzling over $154,000

In October 2018, Joan Matthews, former bookkeeper for the Charleston Building and Construction 

Trades Council in Charleston, West Virginia, was sentenced to 12 months and one day of incarceration 

followed by three years of supervised release. She was also ordered to pay $141,325 in remaining 

OLMS Performance Goal – Financial Integrity FY 2019 Target FY 2019 Results

Percent of Audits Resulting in a Criminal Case 16% 19%

OLMS Enforcement Statistics – Financial Integrity FY 2019 Plan FY 2019 Results

Criminal Investigations Completed 204 241

Indictments 80 84

Convictions 80 60

Compliance Audits Conducted 227 252
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restitution, having previously repaid $13,300. In June 2018, Matthews pleaded guilty to one count of 

embezzlement of union funds. The OLMS investigation found that from 2010 through September 2014, 

Matthews embezzled union money by cashing unauthorized union checks, using union funds to pay 

credit card bills, and making personal charges to the union credit cards.

Former Union Officer Sentenced to Prison for $248,000 Embezzlement and False Statements

In December 2018, Gregory Normand, former Secretary-Treasurer of International Association of Sheet 

Metal, Air, Rail and Transportation Workers Local 324 in Everett, Washington, was sentenced to 18 

months in a federal penitentiary and three years of supervised release. He was also ordered to pay 

restitution totaling $217,260. In July 2018, Normand pleaded guilty to one count of embezzling more 

than $248,000 in union funds and two counts of making false statements. The OLMS investigation found 

that over a six-year period Normand used a number of schemes to embezzle union funds. He issued 

fraudulent lost-time payments to himself, paid himself twice for union expenses, altered checks to 

himself for amounts higher than was authorized, and wrote duplicate reimbursement checks to himself 

for money the Internal Revenue Service garnished. Normand also repeatedly made false statements on 

Labor-Management (LM) forms regarding the amount of money he had been paid. 

Former Union Officer Sentenced to Prison for Embezzlement and Conspiracy and Two 

Accountants Sentenced for Reporting Violations

In January 2019, Rocco Fazzolari, former President of International Brotherhood of Trade Unions Local 

122, an independent union located in Long Island, New York, was sentenced to 37 months in prison and 

three years of supervised release, and he was ordered to pay $1,288,810 in restitution. In September 

2018, Fazzolari pleaded guilty to embezzlement of union funds, embezzlement of benefit plan funds, and 

conspiracy to embezzle plan funds. In February 2019, Salvatore Armao, the managing partner of an 

accounting firm whose clients included Local 122, was sentenced to two years of supervised release to 

include six months of home confinement, and ordered to pay $9,592 in restitution, $18,700 in forfeiture, 

and a $3,000 fine. In August 2018, Armao pleaded guilty to making false statements in employee benefit 

plan records and reports, including false filings that concealed Fazzolari’s embezzlement. In March 

2019, Karen Auer, a former principal of an accounting firm, was sentenced to one year of supervised 

release and ordered to pay $7,194 in restitution. In August 2018, Auer pleaded guilty to filing fraudulent 

returns, statements, or other documents. The investigations were conducted jointly with the U.S. 

Attorney’s Office for the Southern District of New York, the Department of Labor’s Office of Inspector 

General, and DOL’s Employee Benefits Security Administration, with assistance from the Federal 

Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit.

Former Union Officer and Associate Sentenced for Health Care Fraud Scheme

In January 2019, Sergio Acosta, former President and Trustee of United Auto Workers Local 2326 and 

the Local 2326 Health and Welfare Fund in Edison, New Jersey, was sentenced to three years of 

supervised release and ordered to pay $32,000 in restitution following a guilty plea for theft or 

embezzlement from an employee benefit plan. In January 2020, Lawrence Ackerman, former health 

insurance broker for the health and welfare fund, was sentenced to six months of incarceration, six 

months of home confinement, and two and half years of supervised release following a guilty plea for 

health care fraud and aiding and abetting. Ackerman defrauded Horizon Blue Cross Blue Shield 

(Horizon BCBS) of New Jersey by enrolling ineligible participants who were purported employees of his
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sham companies Atlantic Business Associates and Atlantic Medical Associates, in the benefit plan of 

UAW Local 2326, which had an insurance contract with Horizon BCBS. Ackerman entered into a 

collective bargaining agreement with the union even though his companies did not have any full-time 

employees eligible for participation in the benefit plan. The resulting loss to Horizon BCBS for the 

purposes of the plea was approximately $481,500. However, Ackerman agreed to make full restitution 

on the $6 million dollar loss to Horizon BCBS and $1 million dollar loss to the benefit plan. Ackerman’s 

restitution will be ordered on a later date. The investigations were jointly conducted with the Department 

of Labor’s Office of Inspector General and the Employee Benefits Security Administration, and led by 

the New Jersey U.S. Attorney’s Office.

Five Individuals Convicted for Crimes Impacting Two Local Unions

In 2019, a long-term investigation of United Food and Commercial Workers (UFCW) Local 1D (Wine, 

Liquor and Distillery Workers Local 1) and UFCW Local 2D (Wine and Spirit Salespersons) both 

located in Brooklyn, New York, produced four criminal convictions in the United States District Court 

for the Southern District of New York. A 2018 indictment alleged that five individuals—Vincent 

Esposito, Vincent D’Acunto (former Local 2D Secretary-Treasurer), Frank Cognetta (former Local 1D 

Secretary-Treasurer), Steven Arena, and Frank Giovinco—were each a member or associate of the 

Genovese Organized Crime Family of La Cosa Nostra (the Mafia). From 2001 to 2017, these five 

individuals, along with other Genovese members and associates, committed a wide range of crimes, 

including multiple acts of extortion, honest services fraud, and bribery. In particular, Esposito conspired 

with Arena and D’Acunto to extort annual cash payments from an officer at a labor union by threatening 

the officer with violence and the loss of the officer’s job. Cognetta engaged in schemes to defraud his 

union of his honest services by, among other things, soliciting and accepting bribes and steering union 

benefit plans into investments in exchange for kickbacks. Esposito, D’Acunto and Cognetta pleaded 

guilty to racketeering conspiracy. In July 2019, Esposito was sentenced to two years in prison and 

ordered to pay $3,816,865 in forfeiture and a $20,000 fine. In August 2019, D’Acunto was sentenced to 

10 months in prison. In September 2019, Cognetta was sentenced to two years in prison. In November 

2019, Arena was sentenced to one year and one day in prison and ordered to pay $276,500 in forfeiture 

following his guilty plea for extortion. All were also sentenced to three years of supervised release. In 

December 2019, Giovinco was convicted at trial of racketeering conspiracy and extortion conspiracy, 

including multiple acts impacting UFCW Locals 1D and 2D. This joint investigation was conducted with 

the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, 

the New York City Police Department, and the Department of Labor’s Office of Inspector General.

Former Union Officer Sentenced to Prison for Embezzling over $362,000

In March 2019, Mervin Hawk, former President of American Federation of State, County and Municipal 

Employees Local 1640 in Detroit, Michigan, was sentenced to 30 months in prison and three years of 

supervised release. Hawk was also ordered to pay $362,623 in restitution. In November 2018, Hawk 

pleaded guilty to one count of embezzling union funds. The investigation found that from 2013 through 

2015, Hawk embezzled more than $100,000 from the union’s primary account as sole signatory and 

diverted most of these funds into his personal bank account. Hawk also opened two more bank accounts 

in the union’s name without authorization. He then deposited some $200,000 in union dues into these 

unauthorized accounts and used the money for personal expenses. The investigation was conducted 

jointly with the Department of Labor’s Office of Inspector General and the Federal Bureau of 

Investigation. 
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Former Union Official and Associate Sentenced for Conspiracy 

In July 2019, Howard Janoske, the co-owner of an HVAC and plumbing company in Maryland, was 

sentenced to six months of home confinement and two years of supervised probation. He was also 

ordered to pay restitution of $23,367, and an asset forfeiture order for $92,432 was issued. In November 

2019, Michael Carney, former facilities and real estate manager for an international labor organization in 

Herndon, Virginia, was sentenced to eight months of home confinement and two years of supervised 

probation. Both individuals were fined $25,000. In 2019, Janoske and Carney each pleaded guilty to one 

count of conspiracy to commit wire fraud and embezzle union funds for conspiring with each other and 

others. The investigation revealed that Janoske provided Carney with tens of thousands of dollars in 

kickbacks and personal benefits in exchange for preferential treatment in the awarding of service 

agreements and maintenance contracts to Janoske’s company. Janoske, and others at his company, 

submitted inflated and fraudulent invoices to the union, with Carney’s knowledge, to recoup the expenses 

for these personal benefits. The investigations were conducted jointly with the Department of Labor’s 

Office of Inspector General. 

Former Union Officer Sentenced to Prison for Embezzling over $108,000

In July 2019, John Matassa Jr., former Secretary-Treasurer of Amalgamated Workers Union Independent 

Local 711 in Mount Prospect, Illinois, was sentenced to six months in prison and 12 months of 

supervised release, of which six months will be home confinement. Matassa was also ordered to pay 

$33,513 in restitution to Local 711 and $22,948 in restitution to the Social Security Administration 

(SSA). SSA had already withheld $52,160 from Matassa’s Old-Age Insurance benefit payments as part 

of his restitution. In February 2019, Matassa pleaded guilty to one count of embezzling union funds. 

The investigation found that in February 2013 Matassa started diverting his Local 711 salary to his wife 

Lynn by issuing them both weekly salary checks while he continued to perform all the secretary-treasurer 

duties. In April 2013, John applied early for Old-Age Insurance Benefits with the SSA, which were 

subject to withholding. Due to John’s diversion of a portion of his salary payments to Lynn, he received 

about $75,108 in Old-Age Insurance Benefits to which he was not entitled. The investigation was 

conducted jointly with the Department of Labor’s Office of Inspector General and the SSA’s Office of 

Inspector General. 

Former Union Officer Sentenced to Prison for Embezzling over $676,000

In August 2019, Danny Woodcock, former President of International Union of Electronic, Electrical, 

Salaried, Machine and Furniture Workers-Communications Workers of America Local 83770 in 

Columbus, Mississippi, was sentenced to 46 months in tprison, to be followed by three years supervised 

release. Woodcock was also ordered to pay $519,963 in restitution, which is in addition to the $156,505 

he repaid prior to sentencing. In August 2018, Woodcock pleaded guilty to one count of embezzlement 

of union funds. Woodcock served as the union’s president for approximately 15 years until his removal 

in October 2016. The OLMS investigation found that Woodcock transferred or deposited union funds 

directly into his personal bank account for his own use.

Former Union President Sentenced to Prison for Bank Fraud for Embezzling over $82,000

In September 2019, Annette Jones, former Secretary-Treasurer of American Federation of Government 

Employees Local 331 in Perry Point, Maryland, was sentenced to two years in prison followed by three 
9

years of supervised probation. Jones was also ordered to pay restitution of $82,180. In May 2019, Jones 

pleaded guilty to one count of bank fraud for embezzling $82,180 from the union by writing checks to 

herself, forging the signature of other union officers on 335 checks, and making personal purchases with 

the union credit card. The investigation was conducted jointly with the Department of Veterans Affairs’ 

Office of Inspector General. 

Former Union Official Sentenced to Prison for Mail Fraud and Embezzling over $125,000

In September 2019, Theodore E. Watson, former business manager for Insulators Local 74 in Des 

Moines, Iowa, was sentenced to 18 months in prison followed by three years of supervised probation.

Watson was also ordered to pay restitution of $125,443. In April 2019, Watson pleaded guilty to one 

count of embezzlement and one count of mail fraud. The OLMS investigation found that from 2007 until 

September 2016, Watson sent fraudulent and unauthorized requests for payment of grant funds for 

training to the United Way of Central Iowa. He also made unauthorized purchases and cash advances on 

a union credit card and then concealed the fraud by submitting altered credit card statements and false 

monthly reports to Local 74. Watson also opened a bank account in the union’s name without the 

union’s consent or knowledge, and then diverted union funds into this account for his personal use.

2. Protecting Union Democracy

The LMRDA establishes democratic standards for conducting union officer elections, such as the 

frequency and method of election, the right of members in good standing to be candidates, rights of 

candidates, and member voting rights. When a union member files a timely complaint protesting a 

regularly scheduled election of union officers following a timely and proper internal protest, OLMS 

conducts an investigation. If the investigation reveals a violation of the union democracy provisions of 

the LMRDA that may have affected the outcome of the election, OLMS seeks a voluntary compliance 

agreement with the union to allow OLMS to supervise a new election. If the union does not voluntarily 

agree to remedy the violation, OLMS takes legal action seeking a new election supervised by OLMS. 

The agency also conducts investigations to determine the validity of the imposition or continuation of 

trusteeships national unions impose on subordinate bodies. Trusteeship investigations are conducted upon 

receipt of a complaint from a member or subordinate body.

OLMS seeks to improve the timely resolution of union officer election complaints, which is measured 

by the average number of elapsed days between the receipt of the complaint and its resolution. In FY 

2019, OLMS exceeded its elapsed time performance goal of 69 days, by reducing the average number of 

elapsed days to resolve union officer election complaints to 65.6 days. OLMS tracks the number of 

election investigations and supervised elections, which is dependent upon the number of election 

complaints OLMS receives. The FY 2019 planning projections in those categories are based on 

historical averages. OLMS does not project or estimate the number of lawsuits filed or voluntary 

compliance agreements obtained in a year, given that these actions are dependent upon the facts of each 

case.

OLMS Performance Goal – Union Democracy FY 2019 Target FY 2019 Results

Number of Days to Resolve Election Complaints 69 65.6
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 OLMS Enforcement Statistics – Union Democracy FY 2019 Plan FY 2019 Results

Election Investigations Conducted 106 100

Lawsuits Filed NA 3

Voluntary Compliance Agreements Obtained NA 19

Supervised Elections Completed 28 24

Trusteeship Investigations 9 18

The following highlights some of the most significant OLMS election cases during FY 2019.

State, County and Municipal Employees Council 4 Agrees to Hold Rerun Election

In October 2018, OLMS entered into a voluntary compliance agreement with American Federation of 

State, County and Municipal Employees Council 4, located in New Britain, Connecticut, concerning its 

May 2018 election of officers. The investigation concluded that the union failed to provide adequate 

safeguards to ensure a fair election when it applied an unlawful restriction that denied qualified nominees 

the right to run for office and also denied delegates the opportunity to vote between qualified nominees 

for the same office. The union agreed to conduct new nominations and a new election for executive 

director, president, secretary, and 17 vice president positions under OLMS supervision. The supervised 

election in this 30,000-member statewide council was completed in March 2019.

The Department Files and then Settles Lawsuit against Steelworkers Local 1940

In November 2018, in the United States District Court for the Middle District of Pennsylvania, the 

Department filed suit against Steelworkers Local 1940, located in Lewistown, Pennsylvania. In March 

2019, a Stipulation of Settlement and Order was entered to resolve the lawsuit. The Stipulation and 

Order provided that the Department would supervise new nominations and a new election for the Local 

1940 offices of president, vice-president, recording secretary, financial secretary, treasurer, inside guard, 

outside guard, guide, three trustees, and nine unit presidents. The lawsuit sought to set aside the union’s 

April 2018 election after the OLMS investigation concluded that the union imposed an unreasonable 

candidate qualification requirement when the union required candidates to have attended seven 

membership meetings of the local for the two-year period prior to the election. The meeting attendance 

requirement resulted in 98 percent of the membership being ineligible to be a candidate and hold office. 

The OLMS-supervised polling site election was completed in June 2019.

Communications Workers Local 9003 Agrees to Settle Lawsuit and Hold New Election

In February 2019, in the United States District Court for the Central District of California, a Stipulation 

of Settlement and Order was entered to resolve the Department’s lawsuit against Communications 

Workers Local 9003, located in Burbank, California. The Stipulation of Settlement and Order provided 

that the Department would supervise new nominations and a new election for the offices of president, 

executive vice president, secretary treasurer, vice president—AT&T, vice president—Verizon, two 

executive board members—Verizon, and five executive board members—AT&T. The May 2018 lawsuit 

sought to set aside the union’s October 2017 election for those offices. The lawsuit alleged that Local 

9003 failed to provide a nominations notice reasonably calculated to inform all members of the offices to 

be filled in the election, as well as the time, place, and form for submitting nominations. The OLMSsupervised election was completed in August 2019.
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Postal Workers Local 67 Agrees to Hold Rerun Election under OLMS Supervision

In February 2019, OLMS entered into a voluntary compliance agreement with American Postal Workers 

Union Local 67, located in Kansas City, Missouri, concerning a December 2018 election of union 

officers. Local 67 agreed to hold new nominations and a new election for the positions of president; 

executive vice president; secretary/treasurer; sergeant-at-arms; editor; industrial relations director; clerk 

craft director; clerk craft chief stewards of tours I, II, III, and stations and branches; coordinators of 

offices with 25 or more members; motor vehicle director; chief steward motor vehicle drivers (A); chief 

steward motor vehicle drivers (B); maintenance director; chief steward maintenance (A); chief steward 

maintenance (B); and delegates to state and national conventions. The investigation concluded that the 

local did not provide adequate notice of nominations when it mailed a complete notice to only a portion 

of the membership and failed to post a complete notice on bulletin boards at worksites. Local 67 also 

posted notices of the nominations membership meeting that contained the wrong date. The OLMSsupervised mail ballot election was completed in May 2019.

Department Files Lawsuit against International Longshore and Warehouse Union (ILWU)

In April 2019, in the United States District Court for the Northern District of California, the Department 

filed suit against the International Longshore and Warehouse Union (ILWU), located in San Francisco, 

California. The lawsuit seeks to nullify the union’s September 2018 election of the offices of president, 

vice president-mainland, secretary-treasurer, and international executive board-Panama. The complaint 

alleges that ILWU violated section 401(e) of the LMRDA by denying its Panama Division members a 

reasonable opportunity to vote when ballots were not mailed in a manner that enabled each member to 

receive his or her ballot, mark the ballot, and return it by the ballot deadline. The investigation found that 

ILWU learned that ballots from 1,078 eligible dockworker union members had been returned in bulk, and 

failed to take reasonable steps in response to the situation, ultimately determining that none of the 1,078 

ballots could be counted. The complaint also alleges that ILWU violated section 401(c) by failing to 

provide its Panama Division members other safeguards to ensure a fair election by failing to provide 

adequate voting instructions at the outset of the election and throughout the voting period. In August 

2019, the lawsuit was amended to include that ILWU denied a reasonable opportunity to vote to 

approximately 608 Panama Division members who were not sent ballots despite paying dues or being on 

dues checkoff during the relevant time period in or around May 2018. The lawsuit is pending final 

resolution.

Machinists Local Lodge 701 Agrees to Hold Rerun Election under OLMS Supervision

In May 2019, OLMS entered into a voluntary compliance agreement with Machinists Local Lodge 701, 

located in Carol Stream, Illinois, concerning a December 2018 election of union officers. Lodge 701 

agreed to hold new nominations and a new election for the office of vice president. The investigation 

concluded that Lodge 701 failed to provide a reasonable opportunity for members to nominate candidates 

by requiring nominators and nominees to be present at the nominations meeting without providing 

adequate, alternative procedures for members required to work during the meeting. The OLMS 

supervised polling site election was completed in July 2019.

Government Employees Local 1923 Agrees to New Supervised Election

In May 2019, OLMS entered into a voluntary compliance agreement with the American Federation of 

Government Employees Local 1923, located in Baltimore, Maryland, concerning the local union’s 
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election of officers conducted in December 2018. The union agreed to OLMS supervision of new 

nominations, a new election, and installation for the offices of president, executive vice president, 

treasurer, secretary, sergeant at arms, chief steward, and 19th vice president. The investigation found that 

members were denied the right to vote when ballots were not mailed to all members; candidates were 

denied the right to have an observer both during the tally, when they were asked to leave the room, and at 

the post office, when picking up ballots; the union failed to provide proper notice of nominations, such as 

no attempts were made to update the address list and the notice was not reasonably calculated to reach all 

members; and the union failed to provide adequate safeguards when extra ballots were maintained in an 

unlocked file cabinet and ballots were hand-delivered. The OLMS-supervised mail ballot election in this 

8,000-member union was completed in January 2020.

The Department Files and then Settles Lawsuit against Postal Workers Local 230

In June 2019, in the United States District Court for the District of New Hampshire, the Department filed 

suit against American Postal Workers Union Local 230, located in Manchester, New Hampshire. In 

October 2019, the court approved a Stipulated Settlement Agreement to resolve the Department’s 

lawsuit. The stipulation provided that the Department would supervise a new mail ballot election, 

including new nominations, for all offices in the challenged election. The lawsuit sought to set aside the 

union’s March 2019 election of officers because the OLMS investigation established that the union (1) 

implemented a meeting attendance requirement less than six months before the election that disqualified 

96.7 percent of the membership from being eligible to hold office; (2) failed to disseminate a notice 

reasonably calculated to reach all members or inform them of the offices to be filled or the time, place, or 

form for submitting nominations; and (3) failed to mail an election notice to all members, instead mailing 

a defective election notice (that did not include a deadline for returning ballots) to only the members it 

deemed eligible to vote for one contested position. The OLMS-supervised mail ballot election was 

completed in February 2020.

Service Employees Local 73 Holds Rerun Election under OLMS Supervision

In June 2019, OLMS entered into a voluntary compliance agreement with Service Employees Local 73, 

located in Chicago, Illinois, concerning its October 2018 election of officers. The union agreed to 

conduct a new election, including new nominations, if necessary, and installation for the offices of 

president, secretary-treasurer, two executive board vice presidents, five vice presidents, two executive 

board members—Region 2, three executive board members—Region 3, two executive board members—

Region 7, and executive board member—Region 13, under OLMS supervision. The investigation 

disclosed that one candidate used the union’s membership list to purchase members’ phone numbers and 

campaign via phone bank, while another candidate was denied access. The OLMS-supervised mail ballot 

election in this 28,000-member union was completed in November 2019.

Longshoremen’s Local 1408 Agrees to Settle Department’s Lawsuit and Hold New Election

In July 2019, in the United States District Court for the Middle District of Florida, a Stipulation of 

Settlement and Order was entered to resolve the Department’s lawsuit against the International 

Longshoremen’s Association Local 1408, located in Jacksonville, Florida. The Stipulation provided that 

the Department would supervise new nominations and a new polling site election for the Local 1408 

offices of president, vice president, recording secretary, financial secretary treasurer, business agent, and 

five executive board members. The lawsuit sought to set aside the union’s December 2017 election after 
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the OLMS investigation concluded that the union failed to have a reasonable candidate qualification 

requirement when the meeting attendance requirement contained no excuse provision and disqualified 93

percent of the membership from running for union office. The OLMS-supervised polling site election 

was completed in December 2019.

Service Employees Local 775 Staff Union Agrees to New Supervised Election

In August 2019, OLMS entered into a voluntary compliance agreement with the Service Employees 

Local 775 Staff Union, also known as Staff Union Union (SUU), located in Seattle, Washington, 

concerning the officer election conducted in February 2019. SUU agreed to conduct a new election,

including new nominations, if necessary, and installation, for the offices of two co-chairs/co-presidents, 

secretary treasurer, and six delegates, under OLMS supervision. The investigation determined that the 

union failed to adhere to the LMRDA’s ballot secrecy requirement in that the election was conducted via 

“SurveyMonkey” which neither prevented members from casting multiple votes, nor prevented the 

connection of voter and vote. The investigation further found that the union failed to mail a notice of 

election to the last known home address of every member. Further, the union failed to provide adequate 

safeguards to ensure a fair election in that it failed to make a reasonable effort to keep its membership 

mailing list current, and failed to provide members with adequate instructions for properly casting their 

ballots. Finally, no steps were taken to ensure that only eligible members in good standing were allowed 

to vote. The OLMS-supervised mail ballot election was completed in November 2019.

Postal Workers Local 83 Agrees to Hold Rerun Election under OLMS Supervision

In August 2019, OLMS entered into a voluntary compliance agreement with American Postal Workers 

Union Local 83, located in New Orleans, Louisiana, concerning an election of union officers conducted 

in April 2019. The union agreed to conduct a new election and installation, and, if necessary, new 

nominations, for the positions of president, assistant maintenance craft director, first assistant clerk craft 

director, delegates—clerk craft (three positions), delegates—maintenance craft (two positions), and 

delegate—motor vehicle (one position), under OLMS supervision. The investigation concluded that the 

union failed to provide adequate safeguards and denied members the right to vote by not issuing 

replacement ballots to members who requested them, and by failing to re-mail ballot packages returned 

as undeliverable. The union also failed to make reasonable efforts to maintain and update its membership 

address list. The investigation further found that some ballots were hand-delivered rather than mailed 

directly by members to the post office box designated for returned, voted ballots. Additionally, the union 

failed to mail a notice of election to each member’s last known home address at least 15 days prior to the 

election. Lastly, the union failed to adhere to the APWU National Constitution and Bylaws, which 

requires the ballot receipt deadline to be no less than 20 days from the date of ballot mailing. The 

OLMS-supervised mail ballot election was completed in November 2019.

3. Labor Union and Labor-Management Transparency

The LMRDA is predicated on the principle that union members, officers, and the general public benefit 

by having access to information about labor unions, their officers and employees, employers, labor 

relations consultants, and surety companies. To this end, OLMS administers a comprehensive reporting 

and disclosure program. OLMS also offers compliance assistance sessions for union members and 

officials on the financial reporting obligations under the LMRDA.
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Unions must file annual financial reports, known as Labor-Management (LM) Reports (Forms LM-2, 

LM-3, LM-4, or simplified filings), with OLMS. Unions must also file trusteeship reports (Forms LM15, LM-16) when supervision or control is established over a subordinate body. Other entities—

employers (Form LM-10), labor relations consultants (Forms LM-20, LM-21), union officers and 

employees (Form LM-30), and surety companies (Form S-1)—are also required to file reports under 

certain circumstances. Reports are available for public disclosure on the OLMS Online Public Disclosure 

Room website, www.unionreports.gov. OLMS also collects and maintains CBAs filed by CBA 

signatories on a voluntary basis. The CBAs are located on the OLMS website.

OLMS received and processed the following public disclosure reports in FY 2019.

OLMSLMRDAReports Administration FY 2019

Form LM-1 Labor Organization Information Reports 133

Form LM-2 Labor Organization Annual Reports 4,874

Form LM-3 Labor Organization Annual Reports 10,045 

Form LM 1010 045 -4 Labor Organization Annual Reports 6,422

Simplified Labor Organization Annual Reports 1,179

Form LM-10 Employer Reports 736

Form LM-15 Trusteeship Reports (initial, semiannual, and 15A) 360

Form LM-16 Terminal Trusteeship Reports 83

Form LM-20 Labor Relations Consultant Agreement and Activities Reports 507

Form LM-21 Labor Relations Consultant Receipts and Disbursements 74

Form LM-30 Labor Organization Officer and Employee Reports 553

Form S-1 Surety Company Annual Reports 77

Total Reports 25,043

OLMS utilizes a web-based Electronic Forms System (EFS) for completing and submitting LM reports. 

Implementation of EFS is being conducted in phases. Currently, Forms LM-2, LM-3, and LM-4, Labor 

Organization reports; Form LM-10, Employer Report, Forms LM-20 and LM-21, labor relations 

consultant reports; and Form LM-30, Labor Organization Officer and Employee reports can be filed via 

EFS. EFS allows any of these filers with a web-enabled computer to complete and electronically submit 

an LM report without any special software or a digital signature. EFS performs calculations for the LM 

report and completes a form error check prior to submission to OLMS. EFS also allows unions that 

maintain electronic accounting records to import financial data from their accounting programs directly 

into their LM form. When labor organization annual reports are not filed in a timely manner or the 

reports filed are not acceptable, OLMS opens an investigation to obtain compliance. Additionally, when 

reports due from employers, labor relations consultants, and union officers and employees are not timely 

or properly filed, OLMS pursues delinquent and deficient reports from these entities, known as “Special 

Reports” cases.

In FY 2019, 100 percent of LM-2 filers, more than 99 percent of LM-3 filers, more than 99 percent of 

LM-4 filers, and more than 25 percent of LM-30 filers submitted their annual reports via EFS, which has 

increased timely and accurate filing. In FY 2019, OLMS exceeded its performance goal by increasing 

the percentage of LM reports filed electronically to 85.3 percent. Based upon a completed rulemaking, 

OLMS requires unions to file Form LM-3 and Form LM-4 reports electronically for fiscal years 

beginning on or after January 1, 2017. Form LM-2 filers also must complete their reports electronically.

OLMS tracks the numbers of delinquent and deficient reports and Special Reports cases completed. The 
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FY 2019 planning projections in those categories are largely based on historical averages.

OLMSPerformanceGoal – Reporting and Disclosure FY 2019 Target FY 2019 Results

Percent of Reports Filed Electronically 70% 85.3%

OLMSEnforcement Statistics – Reporting and Disclosure FY 2019 Plan FY 2019 Results

LM-2/3/4 Delinquent Reports Cases Completed 1,518 1,446

LM-2/3/4 Deficient Reports Cases Completed 148 169

Special Reports Cases Completed 65 65

4. Employee Protections

OLMS administers responsibilities under federal transit law by ensuring that fair and equitable 

arrangements protecting mass transit employees are in place before the release of federal transit 

assistance. When federal funds are used to acquire, improve, or operate a transit system, federal law 

requires that arrangements must be made to protect the rights of affected mass transit employees. 

OLMS must approve these arrangements before the U.S. Department of Transportation’s Federal 

Transit Administration can release funds to mass transit employers.

In FY 2019, OLMS certified employee protections for 1,575 federal transit grants, with 99 percent of 

grants certified within a 45-day timeframe, well under the 60 days permitted by guidelines. More 

information about employee protections under federal transit law can be found on the OLMS website.

5. Compliance Assistance

In FY 2019, OLMS undertook the following initiatives as part of a comprehensive compliance 

assistance program to educate unions, union officials, employers, and consultants about the LMRDA:

• OLMS continued its program of structured, nationwide compliance assistance seminars, but sought 

to reduce the number of sessions while increasing attendance through enhanced recruitment. The 

goal of this program is to provide an opportunity each year for the officers of every labor 

organization to attend a compliance assistance seminar. The content of the seminar is similar 

throughout the country so that every officer in attendance benefits from the same material. In FY 

2019, OLMS conducted compliance assistance seminars for 3,121 attendees. In total, OLMS 

recorded 14,199 contact hours of compliance assistance (i.e., the number of participants multiplied 

by the number of hours of instruction).

• OLMS continued to be responsive to all specific requests for compliance assistance seminars. 

The office also received and responded to hundreds of requests for information and interpretations.

• OLMS continued to work with 43 of the nation’s most prominent international and national unions 

in the Voluntary Compliance Partnership (VCP) initiative, leveraging their resources to improve the 

compliance performance of over 16,000 affiliates in FY 2019. VCP was instrumental in completing 

the transition to the new filing standard, which mandates that all Forms LM-3 and LM-4 financial 

reports be filed electronically via EFS. VCP continued to solidify its platform as a national 
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compliance assistance effort focused on improving timely reporting, utilization of EFS, bonding 

coverage, quality reporting and other items examined in OLMS audits. VCP is a strategic leadership 

effort that requires executive-level involvement from OLMS and officer-level involvement from the 

union, which helps to drive compliance through the labor-management community by providing 

tools, information, and assistance. The overall late-filing rate for unions under the VCP initiative 

has decreased over the last four years. VCP continues to assist labor organizations with OLMS 

procedures regarding mergers and terminations, regional and national training conferences, and 

other organizational development activities. OLMS leadership met directly with 23 presidents and 

secretary-treasurers of the VCP member unions in FY 2019. The initiative generated 1,895 

compliance assistance contact hours and distributed comprehensive annual VCP informational 

reports, specifically tailored for each of 33 different VCP international and national unions.

• OLMS managed a public email address, enabling it to respond to nearly 2,200 inquiries and requests 

in the year.

• OLMS continued its Labor Organization Orientation Program (LOOP), which distributed 

information letters to newly-registered labor organizations.