DEPT. OF LABOR & IRS REPORT PROBLEMS?
Given the political climate, unions need to avoid any suggestion of internal problems, especially federal employee unions which are regulated by these two agencies. So, imagine the fallout if AFGE had any significant degree of failure to timely file LM reports or NTEU locals did not file their 990s to preserve their tax exempt status. Indeed, any union that fails to comply is risking some serious adverse public scrutiny by some politicians just looking for a reason to do away with them. Consequently, nationals unions should monitor and enforce these obligations closely and union constitutions could help them. For example, NATCA’s constitution provides the following: “The National Executive Board may withhold dues rebates for any Local failing to demonstrate remedy for any violation of Department of Labor, Internal Revenue Service or NATCA financial provisions within 90 days of receiving the report identifying violation(s).” Frankly, we wonder why a union’s national leadership would wait 90 days, or require board action rather than obligate the national president to take action within 15 days of notification.