Worker Welfare Funds

March 9, 1954

Report Outline
Public Regulations Vs. Union Policing of Funds
Postwar Growth of Employee Welfare Funds
Problems Raised by Fund Accumulations

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 war are financed by percentage-of-payroll contributions by employers under collective bargaining agreements with unions of their employees. Held in trust against future outpayments to the beneficiaries, they constitute a huge supplement to the savings of millions of American families.

Congressional Investigations of Welfare Funds

The House Committee on Government Operations has directed its labor-racketeering subcommittee, headed by Rep. Bender (R., O.), to investigate accumulating charges of dishonest handling of welfare funds. And the House Labor Committee has ordered hearings by a subcommittee under Rep. McConnell (R., Pa.), chairman of the full committee, to determine whether additional legislation is needed to give maximum protection against mismanagement of the funds.

ISSUE TRACKER for Related Reports
Aug. 2010  Social Welfare in Europe
Aug. 03, 2001  Welfare Reform
Dec. 06, 1996  Welfare, Work and the States
Sep. 16, 1994  Welfare Experiments
Apr. 10, 1992  Welfare Reform
Oct. 10, 1986  Working on Welfare
Mar. 09, 1984  Social Welfare Under Reagan
Apr. 17, 1981  European Welfare States Under Attack
Dec. 09, 1977  Welfare in America and Europe
Nov. 21, 1975  Future of Welfare
Dec. 20, 1967  Welfare Reform
Jun. 08, 1966  Guaranteed Income Plan
Oct. 04, 1961  Public Welfare Policy
Mar. 09, 1954  Worker Welfare Funds
Jul. 20, 1950  Welfare State
May 07, 1947  Union Welfare Funds
Jan. 10, 1940  Expansion of the Food-Stamp Plan
Retirement, Pensions, and Social Security
Welfare and Welfare Reform