"Creative accounting" creates problems for AFL-CIO

My guess is that will be seeing a lot more stories likes this one from AP about unions and umbrella organizations such as the AFL-CIO:

The AFL-CIO, the largest U.S. union organization, concealed deteriorating finances through "creative accounting," according to a union leader.

Tom Buffenbarger, president of the International Association of Machinists and Aerospace Workers, said in a report that the labor federation obscured its financial difficulties heading into last year's presidential election campaign, in which it backed Democrat Barack Obama. Net assets of the 11 million-member AFL-CIO declined to a negative $2.3 million as of June 30, 2008, from a $66 million surplus on July 1, 2000.

"A new leadership — leaders chosen by our members, leaders help accountable by our members — is needed," wrote Buffenbarger, who is a member of the AFL-CIO's finance committee and the president of one of the nation's largest unions. Alison Omens, a spokeswoman for the AFL-CIO, declined to comment on the report.

With the exception of the public sector, courtesy of the government unions such as SEIU (which split from the AFL-CIO in 2005), unions have been hemorrhaging workers for decades.

The Workforce Fairness Institute, a pro-business group, issued this response to the AP story:

"Today's news that union bosses have been cooking the books, and misusing and mishandling the hard-earned dollars of their workers is deeply disturbing, yet in no way surprising. This should serve as notice to those elected officials supporting the Employee 'Forced' Choice Act, a bill that rewards union bosses with unfettered and unlimited access to our nation's small businesses," said Katie Packer, executive director of the Workforce Fairness Institute. "Why Congress would even consider providing Big Labor heads with access to more power and more money, while they prove to lack the integrity and honesty to manage the finances and retirements of their own members is beyond bewildering. We stand united and will not allow worker protections afforded in the secret ballot and right to vote on contracts to be traded away in an effort to provide political payback at the expense of America’s small business community."

Related posts:

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Nonsense from a South Dakota AFL-CIO official about card check
Report from the bloggers' conference call on EFCA and under-funded pensions
George McGovern: "The ‘Free Choice’ Act Is Anything But"
Report from the bloggers' conference call about Employee FORCED Choice binding arbitration
Report from the bloggers' conference call about card check
Former union organizer talks about card check
Minority business groups coming out against card check
Sen. Mitch McConnell on card check
Card check update: "A mortal threat to American freedom"
Blagojevich and union "card check"
Employee "free choice" may drive economic uncertainty
Dems' secret ballot hypocrisy

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