Olms interpretative Manual

TRUSTINWHICHALABORORGANIZATIONISINTERESTED

220.001LMRDA,SECTION208

The Secretary shall have authority to issue, amend, and rescind rules and regulationsprescribing the form and publication of reports required to be filed under this title and such otherreasonable rules and regulations (including rules prescribing reports concerning trusts in which alabororganizationisinterested)...

For definitions and interpretations of “trust in which a labor organization is interested,” seeManualEntries041.301ff.

(TechnicalRevisionsDec.2016andRevisions:Jan.2021)

TRUSTEESHIPREPORTS:WHOMUSTREPORT

1. 
   LMRDA,SECTION301
   

1. 
   Every labor organization which has or assumes trusteeship over any subordinate labororganization shall file with the Secretary within thirty days after the date of theenactment of this Act or the imposition of any such trusteeship, and semi-annuallythereafter, a report, signed by its president and treasurer or corresponding principalofficers, as well as by the trustees of such subordinate labor organization, containingthefollowinginformation:(1)thenameandaddressofthesubordinateorganization;
   

(2) the date of establishing the trusteeship; (3) a detailed statement of the reason orreasons for establishing or continuing the trusteeship; and (4) the nature and extent ofparticipation by the membership of the subordinate organization in the selection ofdelegates to represent such organization in regular or special conventions or otherpolicy-determining bodies and in the election of officers of the labor organizationwhich has assumed trusteeship over such subordinate organization.The initial reportshall also include a full and complete account of the financial condition of suchsubordinate organization as of the time trusteeship was assumed over it.During thecontinuance of a trusteeship the labor organization which has assumed trusteeshipover a subordinate labor organization shall file on behalf of the subordinate labororganization the annual financial report required by section 201(b) signed by thepresident and treasurer or corresponding principal officers of the labor organizationwhich has assumed such trusteeship and the trustees of the subordinate labororganization.

2. 
   The provisions of section 201(c), 205, 206, 208, and 210 shall be applicable to reportsfiledunderthistitle.
   

3. 
   Any person who willfully violates this section shall be fined not more than $10,000 orimprisonedfor not more than one year, or both.
   

4. 
   Any person who makes a false statement or representation of a material fact, knowing itto be false, or who knowingly fails to disclose a material fact, in any report requiredunder the provisions of this section or willfully makes any false entry in or willfullywithholds,conceals,ordestroysanydocuments,books,records,reports,orstatementsupon which such report is based, shall be fined not more than $10,000 or imprisonedfornot morethan one year, or both.
   
5. 
   Eachindividualrequiredto signa report under this sectionshallbepersonallyresponsible for the filing of such report and for any statement contained therein whichhe knows to be false.
   

SeeManualEntry300:TRUSTEESHIPS,fordefinitionanddiscussionofTrusteeships.

2. 
   SEE29CFR408
   

230.005APPROVALOFCONTROLBYLOCAL

Where a special representative of the International assumes a degree of supervision over theaffairsofalocal,atrusteeshipreportshouldbefiledinaccordancewithsection301oftheAct.

Whether the supervision or control of the local by the International is undertaken with the local’sapprovalisnotmaterialto thereportingrequirement.

230.100SUPERVISORSHIP

Anysuspensionofautonomyimposedonasubordinatelabororganizationbyaparentbodyis a trusteeship.A union argument that the suspension is one of “supervisorship” imposed forthe benefit of the subordinate organization is not valid and does not affect the reportingrequirementsof the Act.

230.105GOVERNMENTEMPLOYEES’LOCAL

An International union which establishes a trusteeship over a subordinate unit comprisedsolelyofgovernmentemployeesisnotrequiredtocomplywiththereportingrequirementsofsection 301 (a) since that section applies only to trusteeship over a subordinate “labororganization.”An organization composed of government employees is not a “labororganization”withinthemeaningofsection3(i) of theAct.

*230.200FOREIGNLOCAL

An International union which is subject to the Act must report any trusteeship it establishesover a subordinate union which is located outside the territorial jurisdiction of the United States,if the foreign affiliate is a “labor organization” within the meaning of the Act.The Internationalmust file the initial, semiannual, and terminal trusteeship reports; it need not file an annualfinancial report for the subordinate, since section 201(b) does not require a foreign organizationtofile suchreportswhenit is not under trusteeship.

230.300SUITAGAINSTOFFICERSOFDISSOLVEDLOCAL

If a pending civil suit against the officers of a local which has been dissolved is brought bythe International as the legal successor of the dissolved local, then no trusteeship report would benecessary.If, however, the suit is brought by the International in a supervisory capacity on thetheory that a trusteeship exists, then a report would be due.In the latter case the claim assertedagainst the local’s officers would be the operation of the local and the local would to that extentbein existence until its dissolution and transferofitsassetstoitslegalsuccessor.