Olms interpretative Manual

-- CORRECTINGCORRUPTION

-- FINANCIALMALPRACTICE

*312.005ENDANGERINGFISCALINTEGRITY

The kind of financial malpractice which may justify imposition of a trusteeship is notspecifically defined in the Act.The conduct which might lead to supervision by a parent bodycould be as serious as embezzlement of funds by local officers.However, it would not appear tobeimproperforalabororganizationtoimposeatrusteeshipwhenactionwhichisnotnecessarilycriminal,likeirresponsible leadership,jeopardizes thefiscalintegrity ofthe organization.

311. -- ASSURINGPERFORMANCEOFCOLLECTIVE

BARGAININGAGREEMENT

313.005WILDCATSTRIKES

A trusteeship imposed on a local union by an international union where the members of thelocal engaged in a number of wildcat strikes and the officers of the local were irresponsible andincapable of controlling the members was held to be a valid trusteeship within the meaning ofsection 302.

*313.007FAILURETOENFORCEAGREEMENT

AnInternationalunionimposedatrusteeshipoveralocalunionwhen itsinvestigationrevealed that the local could not police its collective bargaining agreements, offer adequatemembershiprepresentation inthe field,nor properlyadminister itsdispatchprocedure.

In a private suit under section 304 challenging the validity of the trusteeship, a FederalDistrictCourtfoundthatunder theabovecircumstancestheInternationalpresidentwasjustifiedinimposing a trusteeship to assure the performance of the union’s collective bargaining agreements.Foosev. Hoffa, 63 LRRM 2436 (C.D. Cal. 1966).

(TechnicalRevisions: Dec. 2016)

RESTORINGDEMOCRATICPROCEDURES

*314.005INABILITYTO CONDUCTORDERLY MEETINGS

Aninternationalimposed atrusteeshipoveroneofits localsbecausethelocal was“in

turmoil,”andlocalofficeswereunabletoconductorderlymeetings.Inupholdingthevalidityofthistrusteeship in aproceeding brought undersection 304, aFederal District Court said:

“Certainly,therewas sufficientjustification forimposing aTrusteeship forthe purposeof

restoringdemocraticprocedures…therewasnodoubtbutwhatthelocalofficers,…werenotabletoconduct proper parliamentarymeetings.”


Foosev. Hoffa,63 LRRM2436 (C.D.Cal. 1966).

(TechnicalRevisions:Dec. 2016)