of free democratic trade unions to raise standards of living through improved management-labor relations” in legislation to develop the President's new $600 million program in Latin America. Office of International Personnel and Management This Office is generally responsible for carrying out the Department of Labor's responsibilities for the overall management of the Foreign Service as provided in the Foreign Service Act of 1946; management of the Foreign Service labor attaché program; recruitment of qualified Americans for employment in overseas labor positions with the Foreign Service, ILO, U.N., and other international organizations and Federal agencies; the servicing of overseas labor officers; the internal management of the Bureau of International Labor Affairs; and, on a departmentwide basis, for guidance and consultation in fiscal areas in connection with international programs. Nine additional full-time labor positions were added during the year to the complements of U.S. embassies or consulates abroad. In cooperation with the Foreign Service Institute, new programs were developed to train career Foreign Service officers to do labor reporting in overseas posts where no labor attachés are provided. There are now 62 labor attachés and 120 part-time labor reporting officers in the U.S. Foreign Service. BUREAU OF LABOR-MANAGEMENT REPORTS On September 14, 1959, the President signed into law the Labor-Management Reporting and Disclosure Act. This labor legislation sought to "eliminate or prevent improper practices on the part of labor organizations, employers, labor relations consultants, and their officers and representatives." The law provides for protection of the rights of members of labor organizations; requires the periodic filing of reports concerning certain financial transactions and administrative practices of labor organizations, their officers and employees, and employers and labor consultants; requires the filing of reports concerning the administration of trusteeships by labor organizations; provides standards and procedures with respect to the election and removal of officers of labor organizations; establishes safeguards for labor organizations; and makes certain amendments to the National Labor Relations Act (Taft-Hartley). The Secretary of Labor was given major responsibility for administration of the law. To assist him in this task he established a Bureau of Labor-Management Reports within the Department of Labor. Reporting and Disclosure The Labor-Management Reporting and Disclosure Act relies heavily upon the principles of reporting and disclosure to eliminate abuses in the labor-management field. It assumes that democracy in the labor movement is strengthened when union members have detailed essential information about their union and are the real owners of its funds and property and are entitled to a full accounting of all transactions involving money and property. Additionally, it intends to prevent improper conduct in the labor-management field-and make it unprofitable-by requiring employers, union officers, labor relations consultants, and others to report certain arrangements, transactions, and interests. Reporting Forms To carry out these objectives certain reports are required by the act: Labor Organization Information Reports Section 201(a) of the 1959 act requires each labor organization subject to its provisions to adopt a constitution and bylaws and to file these documents and a report describing the union's structure and procedures with the Secretary of Labor. To carry out this purpose the Secretary prescribed the Labor Organization Information Report Form LM-1. Regulations prescribing the form LM-1 were approved on November 9, 1959, and published in the Federal Register on November 13. Upon receipt of the reporting forms from the Public Printer in mid-November, bulk distribution was made to most of the national or international labor organizations. They undertook to distribute the forms to their constituent organizations. Other organizations furnished mailing lists or mailing labels. The extent to which the labor movement cooperated in facilitating compliance with the act is demonstrated by the fact that 40,000 labor organization information reports were received by December 14, the reporting deadline, only 30 days after the forms became available. The inflow of completed LM-1 reports continued, and by June 30, 1959, a total of 52,278 had been received. Labor Organization Financial Reports Drafting of the financial reports began when the statute was enacted. By the end of September, the Department's staff had prepared the first preliminary draft of the detailed financial report (as contrasted with the later-developed simplified report) which became identified as form LM-2. In developing these forms, Departmental representatives conferred with trade union representatives and others directly affected by the law. The LM-3 financial report (for smaller labor organizations) requires essentially the same information as does the LM-2 but in considerably less detail. Under the criteria established, the short form may be used by any labor organization if (1) its gross annual receipts during the reporting year are less than $20,000; (2) it is free of trusteeship; and (3) because of its size it cannot furnish a detailed report without adding substantially to operating expenses or to the burdens of officers holding other regular jobs. It appears that about three-fourths of the labor organizations subject to the reporting provisions of the act are relieved by the use of this simplified report from the task of filing a detailed financial report, but it is estimated that these unions account for less than one-quarter of the total receipts in all reports filed. The law provides that the Secretary of Labor under some conditions may revoke a union's privilege of reporting on the short form. On December 16, 1959, the Secretary of Labor published in the Federal Register a "Notice of Proposed Rule Making" which outlined the Department's tentatively proposed financial report forms. A 15-day period was allowed for submission of comments by interested parties. A number of such comments were received. After review of these comments, the regulations outlining the final version of the financial reports were published in the Federal Register on January 20, 1960. Late in January copies of the printed forms were distributed directly to all labor organizations which had filed an LM-1 report and to the headquarters of national and international unions. Employer Reports The act also requires reports from employers. However, unlike the reporting requirements for labor organizations, not every employer subject to the act is required to file a report with the Bureau. Section 203(a) of the act requires |