Background:
The Free Trade Union Institute (FTUI) was created in 1977 when the AFL-CIO resurrected and renamed the moribund Free Trade Union Committee (FTUC). The purpose was to increase U.S. influence with European trade unions, especially in Spain and Portugal. (16) It was almost defunct in 1983 when Congress began funding the newly-created National Endowment for Democracy (NED), and FTUI has been the largest grantee ever since. (3) NED's purpose is "to encourage the establishment and growth of democratic development in a manner consistent both with the broad concerns of United States national interests and with the specific requirements of the democratic groups in other countries which are aided by the endowment."(14) FTUI is one of four core grantees of NED. The other three are the Center for International Private Enterprise (CIPE), National Republican Institute for International Affairs, and the National Democratic Institute for International Affairs. In 1988 NED received over $20 million from the U.S. taxpayers. (15) Congress authorizes U.S. Information Agency (USIA) funds for NED which in turn gives money to FTUI and other grantees. FTUI then funds overseas projects which are usually managed by AFL-CIO's three regional labor institutes: American Institute for Free Labor Development (AIFLD), Asian-American Free Labor Institute (AAFLI), and the African-American Labor Center (AALC). (2)
FTUI says it "supports programs that provide assistance for democratic education, training in basic union skills, and organizing assistance... sponsors exchanges between trade unionists... and supports research on labor rights and human rights..."(4)
Both NED and FTUI have received widespread support from both U.S. political parties, the business community, and even the right wing, as can be seen by supporter Senator Orrin Hatch (Utah)--a labor opponent in the domestic sphere. A Hatch aide explained why his boss decided to back the AFL-CIO's intl operations, saying the AFL-CIO worldwide "has tremendous leverage for political activity compared to say, CIA covert operations, which often fail."(5) In congressional hearings, Senator Hatch stated "I have seen the excellent work of the labor institute over the last several years, and frankly, they have carried a large share of the burden in sowing the seeds of democracy abroad."(6)
In an undated memorandum from the early days of NED's operations, FTUI executive director, Eugenia Kemble, instructed NED executive director, Carl Gershman to "avoid advertising" projects in certain countries where recipients would "either be endangered or embarrassed if specific budgets were published or announced."(7)
NED was embarrassed in November 1985 when one of these FTUI projects was disclosed. FTUI had awarded $1. 4 million to two right-wing groups in France. It is still not clear why NED thought democracy was in trouble in France. More than half a million dollars had gone to a student group that had fewer than 1,000 members and was an offshoot of an organization known for its violent and criminal predilections. (9)
http://rightweb.irc-online.org/groupwatch/ftui.php