Public Regulations Vs. Union Policing of Funds
Two separate investigations of rapidly expanding worker welfare funds are soon to be put under way in Congress. Their purpose will be to determine the extent of racketeering in fund operation and whether new laws are needed to assure integrity of the funds. Leading national unions have themselves undertaken closer policing of welfare fund activities of their locals in an effort to forestall stringent regulation by the federal government.
Vast sums of money have been channeled into welfare funds as a result of organized labor's drive for so-called fringe benefits, the growing disposition of management to formalize retirement programs, and the mushrooming of group-contract life and health insurance during recent years. Most of the funds set up since the ...