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BCTD Report Highlights ABC
Disclosure Irregularities

October 4, 2004

The Building and Construction Trades Department, AFL-CIO (BCTD), is challenging state and federal regulators to investigate Associated Builders and Contractors for financial improprieties it uncovered in a recent investigation.

The BCTD, consisting of 15 international construction unions including the IBEW, released a report last week that calls on government agencies to immediately probe 19 chapters of the nonunion trades association and their corresponding apprenticeship programs for bookkeeping that suggests "illegal" activities.

The investigation revealed:

  • tax-exempt ABC apprenticeship trusts and local ABC chapters failed to disclose financial transactions; and
     
  • payments from apprenticeship trusts to chapters exceeded the value of the services provided, a violation of the Employee Retirement Income Security Act (ERISA).

Calling on the U.S. Department of Labor, the Internal Revenue Service and state attorneys general to launch investigations, the BCTD said the agencies should take immediate action against the ABC chapters and trusts, and their staffs, board members and contractors. Depending on their findings, consequences should include restitution of misused money, revocation of corporate charters and non-profit status, personal fines and prison sentences, the trades said.

They also accused the Bush administration of a double standard in treatment involving their supporters verses the labor movement.

"If a labor organization had these types of transactions, the Bush administration would quickly be at their door with subpoenas," said BCTD President Edward Sullivan. "Its time to find out of the laws applies to allies of the Bush administration."

ABC President and CEO Kirk Pickerel dismissed the report as little more than a politically motivated attack. But in a statement released to the media, he also took pains to distance the national ABC from their chapters as "separately incorporated entities, each of which files it own tax returns based upon independent tax advice appropriate to each chapters unique circumstances."

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