or restrictions on membership, (b) levying of assessments, (c) participation in insurance or other benefit plans, (d) authorization for disbursement of funds of the labor organization, (e) audit of financial transactions, (f) the calling of regular and special meetings, (g) the selection of officers and stewards and of any representatives to other bodies composed of labor organizations' representatives, (h) discipline or removal of officers or agents for breaches of their trust, (i) imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment on the evidence, and appeal procedures, (j) authorization for bargaining demands, (k) ratification of contract terms, (1) authorization for strikes, and (m) issuance of work permits. Any change in the information required must be reported to the Secretary of Labor at the time the reporting labor organization files with the Secretary the annual financial report.

(For text of Sec. 201(a) see page 179; for legislative history, see Senator Goldwater's statement, page 82.)

What Must the Annual Union Financial Report Contain? Within 90 days after the close of its fiscal year, every union must file a detailed annual financial report with the Secretary of Labor in such categories as the Secretary prescribes and containing the following information:

(1) Assets and liabilities at the beginning and end of the fiscal year; (2) Receipts of any kind and the sources;

(3) Salary, allowances, (including reimbursed expenses) to each officer and each employee who received in the aggregate more than $10,000 from the reporting union, an affiliated union or a parent union. (4) Direct and indirect loans to any officer, employee, or member totalling more than $250 during the year, together with a statement of the purpose, security, if any, and arrangements for repayment; (5) Direct and indirect loans to any business enterprise, together with a statement of the purpose, security, if any, and arrangements for repayment;

(6) Other disbursements made including the purposes.

(For text of Sec. 201(b) see page 180; for legislative history, see Senator Goldwater's statement, page 83, the excerpt from the House Conference Report, page 84, and the exchange between Senators Curtis and Kennedy, page 84.)

What Access to Union Reports Is Granted to Union
Members?

Every union required to submit a report must make available the information from the report to all of its members. Every union and its

officers also must permit such members to examine any books, records and accounts necessary to verify such report. If the union or its officers refuse to do so, the union member can go to court and for "just cause", he can obtain a court order permitting him access to the books. The member can thus study the records of the union from which the reports were prepared. (For text of Sec. 201(e) see page 180).

What Is the Effect of the Repeal of the Reporting and NonCommunist Affidavit Requirements of the Taft-Hartley Act?

Because of the new union reporting requirements of the LandrumGriffin Act and the denial of union office to persons who are or who have been members of the Comunist party, both the reporting sections and the non-Communist affidavit sections of the Taft-Hartley Act are repealed. One of the conditions of the old Taft-Hartley Act that had to be met by a union before it could sign a compulsory union membership agreement with an employer pursuant to Section 8(a)(3) of the TaftHartley Act was that it had to be in compliance with the reporting and non-Communist sections of the law. Since these are repealed, certain unions, notably the United Mine Workers, will now be free to sign compulsory membership contracts. (For text of Sections 201(d) and 201(e) see page 180; for legislative history, see Representative Griffin's statement, page 85.)

What Reports Must Union Officers and
Union Employees File?

Any officer or employee of a union who has himself or whose spouse or minor child has, held an interest, received income, a loan, or other benefit from certain employers or otherwise engaged in one or more of the transactions described below, must within 90 days after the close of his fiscal year, file a report with the Secretary of Labor listing and describing all such transactions. The interests and transactions which must be reported are:

(1) Any securities directly or indirectly held in, and any income or any other benefit with monetary value (including reimbursed expenses), derived from an employer whose employees his labor organization represents or is actively seeking to represent except for legitimate payments received as an employee;

(2) Any transaction engaged in, directly or indirectly, involving any securities, or loan to or from, or other legal or equitable interest in the

business of an employer whose employees such labor organization represents or is actively seeking to represent;

(3) Any securities which are directly or indirectly held in, and any income or any other benefit with monetary value (including reimbursed expenses) which are directly or indirectly derived from, any business a substantial part of which consists of buying from, selling or leasing to, or otherwise dealing with, the business of an employer whose employees such labor organization represents or is actively seeking to represent; (4) Any securities or other interest, legal or equitable, which are directly or indirectly held in, and any income or any other benefit with monetary value (including reimbursed expenses) which are directly or indirectly derived from a business any part of which consists of buying from, or selling or leasing directly or indirectly to, or otherwise dealing with such labor organization;

(5) Any direct or indirect business transaction or arrangement with any employer whose employees his organization represents or is actively seeking to represent, except work performed and payments and benefits received as a bona fide employee of such employer and except purchases and sales of goods or services in the regular course of business at prices generally available to any employee of such employer; and (6) Any payment of money or other thing of value (including reimbursed expenses) which is received directly or indirectly from any employer or any person who acts as a labor relations consultant to an employer, except payments of the kinds permitted under the Taft-Hartley Act, enumerated in Section 302(c) of that Act.

(For text of Sec. 202(a) see page 180; for legislative history, see statements of Senators Goldwater and Morse and other Senators on pages 85-88, and excerpts from Committee Report No. 187 on pages 88-90.)

The law is specific in stating that no report is required if the payments to the union officer, employee, or his spouse or minor child were received as wages as an employee of the business, or if he made purchases at normal employee discounts, benefited from employer contributions to an employee pension or welfare fund, or made investments in securities traded on an exchange under the Securities Exchange Act, or in shares in an investment company requested under the Investment Company Act, or securities of a public utility holding company requested under the Public Utility Holding Company Act. (For text of Sec. 202(b) see page 181.)

The law is clear that no union officer or union employee need file a report unless he or his spouse or minor child was involved in one of the transactions enumerated above. (For text of Sec. 202 (c) see page 182.)

Who Has Access to the Reports that Are Filed?

The reports filed by unions, their officers and employees with the Secretary of Labor are open to public inspection. The Secretary may use

the information in the reports for publications, for statistical and research purposes, and he may publish such studies, analyses, reports, and surveys. He is authorized to sell copies of the reports at cost and to give proper State officials free copies. States are prohibited from requiring any persons who report to the Secretary of Labor to report the same information to the State if the State has received a copy of such person's report from the Secretary of Labor. (For text of Sec. 205 see page 184; for regulations of the Secretary of Labor see page 241; for legislative history, see Senators' statements regarding Sec. 205 on page 97.)

How Long Must Basic Records Be Kept?

Unions and union officers required to make reports to the Secretary of Labor by the Landrum-Griffin Act must keep all the necessary basic information from which the report was prepared for a period of not less than five years after the report is filed. These basic records must include vouchers, worksheets, receipts, and applicable resolutions. (For text of Sec. 206 see page 206.)

When Must Union and Union Officials' Reports Be Filed?

Initial reports from unions required by Section 201(a) of the LandrumGriffin Act must be filed within 90 days after the union becomes subject to the law. Most unions were covered when the law was enacted on September 14, 1959. (For text of Sec. 207(a) see page 185.)

Reports required from unions and union officials under Sections 201(b) and 202 of the Landrum-Griffin Act must be filed annually within 90 days after the close of each fiscal year. The first such report, however, need only cover the period between September 14, 1959, and the end of the fiscal year that includes that date. (For text of Sec. 207(b) see page 185; for legislative history, see Senator Kennedy's statement on page 98.)

What Rules May the Secretary of Labor Make Concerning Reports?

The Secretary of Labor may only prescribe the form and publication of reports required to be filed by unions and union officials. He may, however, issue regulations to prevent the circumvention of the reporting requirements.

The Secretary is directed by the new law to prescribe by general rule simplified reports for small unions which would be unduly burdened by

the detailed reports. The use of the simplified report can be denied to any union if the Secretary finds it necessary.

(For text of Sec. 208 see page 185; for legislative history, see Senator Goldwater's statement, page 98.)

How Can the Reporting Requirements Be Enforced?

The enforcement of the reporting requirements is both criminal and civil. Willful violation carries a criminal penalty of not more than $10,000 fine or imprisonment for not more than one year, or both. An identical penalty is imposed upon any person knowingly making a false statement in any report or document to be filed or maintained by a union or union official. The same penalty applies for willful destruction of such documents. The union officials required to sign the reports required in Section 201 are personally responsible for the filing of the reports and for any statements in them which they know to be false. (For text of Sec. 209 see page 185; for legislative history, see statement of Senator Kennedy, page 99, statement from Senate Committee Report No. 1684, page 99, and Senator Goldwater's statement, page 100.)

In addition, the Secretary of Labor can seek a court order forcing compliance with the reporting requirements. (For text of Sec. 210 see page 185; for legislative history, see page 100.)

What Are a Union's Obligations When It Imposes a
Trusteeship?

Section 3(h) of the Landrum-Griffin Act defines a trusteeship as "any receivership, trusteeship, or other method of supervision or control whereby a labor organization suspends the autonomy otherwise available to a subordinate body under its constitution or by-laws".

The McClellan Committee discovered many abuses in the use of trusteeships by unions and recommended that limitations be imposed on the right of national or international unions to place local unions in trusteeships. The most flagrant examples were uncovered in the International Brotherhood of Teamsters which exercised this method of control with ruthlessness whenever it wanted to control a local's affairs or whenever the local unions refused to follow certain unsavory demands made upon it by the international.

Under the new law every labor organization that has or assumes trusteeship over any subordinate union must file a report with the Secretary of Labor within 30 days after the trusteeship has been imposed