U.S. Department of Labor
Office of Labor-Management Standards
Philadelphia District Office
The Curtis Center
170 S. Independence Mall West, Suite 760 W
Philadelphia, PA 19106
(215) 861-4818 Fax: (215) 861-4819
March 31, 2011
Mr. Glenn Josephs, Treasurer
Workers Independent Union
250 Hansen Access Road
King of Prussia, PA 19406
Case Number:
LM Number: 069827
Dear Mr. Josephs:
This office has recently completed an audit of Workers Independent Union 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 March 8, 2011, 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 Violation
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 Workers Independent Union for fiscal
year ending December 31, 2009, was deficient in the following area:
Disbursements to Officers
Workers Independent Union did not include some reimbursements to officers totaling at least
$5,514.27 in the amounts reported in Item 24 (All Officers and Disbursements to Officers). It
appears the union erroneously reported these payments in Items 48 (Office & Administrative
Expense) and 54 (Other Disbursements).
The union must report most direct disbursements to Workers Independent Union’s officers and
some indirect disbursements made on behalf of its officers in Item 24. A “direct disbursement”
to an officer is a payment made to an officer in the form of cash, property, goods, services, or
other things of value. See the instructions for Item 24 for a discussion of certain direct
disbursements to officers that do not have to be reported in Item 24. An “indirect disbursement”
to an officer is a payment to another party (including a credit card company) for cash, property,
goods, services, or other things of value received by or on behalf of an officer. However,
indirect disbursements for temporary lodging (such as a union check issued to a hotel) or for
transportation by a pubic carrier (such as an airline) for an officer traveling on union business
should be reported in Item 48 ( Office and Administrative Expense).
I am not requiring that Workers Independent Union file an amended LM report for 2009 to
correct the deficient items, but Workers Independent Union has agreed to properly report the
deficient items on all future reports it files with OLMS.
Other Violation
Inadequate Bonding
The audit revealed a violation of LMRDA Section 502 (Bonding), which requires that union
officers and employees be bonded for no less than 10 percent of the total funds those individuals
or their predecessors handled during the preceding fiscal year.
The audit revealed that Workers Independent Union officers and employees were not bonded for
the minimum amount required at the time of the audit. However, the union obtained adequate
bonding coverage and provided evidence of this to OLMS during the audit. As a result, OLMS
will take no further enforcement action regarding this issue.
I want to extend my personal appreciation to Workers Independent Union 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: Mr. Paul Barainyk, President