Olms interpretative Manual

LABORORGANIZATION

030.601LMRDA,SECTION3(i)

"LABOR ORGANIZATION" means a labor organization engaged in an industry affectingcommerce and includes any organization of any kind, any agency, or employee representationcommittee, group, association, or plan so engaged in which employees participate and whichexists for the purpose, in whole or in part, of dealing with employers concerning grievances, labordisputes, wages, rates of pay, hours, or other terms or conditions of employment, and anyconference, general committee, joint or system board, or joint council so engaged which issubordinate to a national or international labor organization, other than a State or local centralbody.

030.602SEE29 CFR401.9

030.6021PARTICIPATINGEMPLOYEES

The "participating employees" referred to in section 3(i) of the Act need not necessarily be theemployees of the employer with whom the labor organization deals so long as they fall within thebroaddefinition of"employee"in section 3(f)oftheAct.

See29CFR451.3(a)(1).

*030.6022LABORORGANIZATIONSOFPOSTALSERVICEEMPLOYEES

Labor organizations composed of employees of the U.S. Postal Service are generally subject tothe LMRDApursuant toSection 1209 ofthePostal Reorganization Act.

030.6023CRITERIADEMONSTRATINGTHAT“EMPLOYEESPARTICIPATE”INLABORORGANIZATION

Employeeparticipationinvolvesengagingortakingpartintheactivitiesofsuchorganization,notmerely receiving services or passively observing events (i.e., merely attending public meetings toreceive information).Such employee participation would typically occur in a membershiporganization,anditwould includeactivitiessuchasvotingforleadershiporonwhat actionto

take, running for office, and other forms of governance or administration; serving as shopstewards or on bargaining committees; engaging in organizing activities; representation on theorganization’s governing board; or engaging in the decision making or functioning of theorganization. Whether an organization has participating employees will depend on the totality oftheevidenceregardingthesefactors.

In contrast, merely paying a nominal monthly or annual fee without further participatory actionswould not support a finding of employee participation.For example, many advocacy andcharitable organizations, such as worker advocacy organizations called “worker centers,” offerinterestedpartiesan abilityto become“members”iftheydonateamonthlyorannual amount.

This type of donation structure does not generally confer any rights or obligations on the part ofthe donor or the organization, and is largely symbolic.Further, the mere receipt of services, suchas job training or legal advice or representation, whether in return for a fee or not, does not reflect“employeeparticipation”in theorganization.

See Manual Entry 030.613(February2022)

*030.603SEPARATEEXISTENCE

To be considered a labor organization under the Act an entity must be a separate organizationhaving an organic existence or structure of its own, in addition to having the other characteristicsofalabororganizationsetforth insections 3(i)and(j).Itmaynot beamereadministrativearm oran integral, undifferentiated part of another labor organization. Various factors are considered indetermining whether an entity has a separate existence. It is not feasible to prescribe a preciseformula. An analysis must be made of all the facts concerning the structure and function of aparticular entity and a determination made on the evidence as a whole. Factors to be consideredinclude: whether the existence of the entity is recognized by means of a charter, reference in theparent body's constitution, or some other manner; whether it has its own constitution and bylawsor other governing rules; whether it has a distinct and identifiable membership; whether it mayaccept or reject application for membership; whether it has its own officers; whether it holdsmeetings as a unit with some regularity or frequency; whether it has assets of its own; whether itmay expend funds allocated to it or raised by it; whether it may assess and collect dues, fees, orassessments; whether it may discipline its members; whether it is represented as a unit atconventions or meetings of a parent or other body; and whether it engages in collectivebargaining,grievancehandling, oranybusinessarrangements.

030.605SCOPEOFLMRDAJURISDICTION

An organization that is not a "labor organization" under the Labor ManagementRelations Act(LMRA) may nonetheless be a "labor organization" under the LMRDA. For example, in Wirtzv.Union Azucarera, 52 LRRM 2213 (D.P.R. 1962), the court did not deny the contention of theunion of agricultural workers that it was not a labor organization under the LMRA but held thatthe union was a labor organization under the LMRDA. The LMRA does not cover organizationsofagricultural workers.

(TechnicalRevisions:Dec.2016)

030.606USEOFLMRAPRECEDENTS

Although precedents regarding the definition of a labor organization under the LMRA will bepersuasiveininterpretingthedefinitionofalabor organizationunderthe LMRDA,theycannotbebinding,because(1)terms"employer"and"employee"aremorebroadlydescribedinLMRDA;

(2)LMRDAincludescertainintermediatebodies notwithinNLRA:and(3)thetwoActsemphasizedifferent goals.

030.610ACTUALDEALINGWITHEMPLOYERSNOTESSENTIAL

The language of section 3(i) makes it clear that an organization in which employees participateneed not actually deal with employers; only existence for the purpose, in whole or in part, ofdealing with employers concerning any of the subjects referred to in the definition is necessary inorder to meet this requirement. Prima facie evidence of such a purpose may be found by referencetotheorganization's constitution,bylaws,charterorresolutions.

For example, a State Nurses Association states in its bylaws that one of its purposes is "Topromote and protect the economic and general welfare of nurses" and has an Economic SecurityProgram authorizing the Association to improve the employment conditions of nurses "by usingallappropriateinstruments,includingcollectivebargaining "Suchan Associationmaybesaid

to exist at least in part for the purposeof dealing with employers as a representative of employeesregardless of whether or not the Association actually negotiates directly with employers at thepresenttime.

030.611PURPOSENEEDNOTBETODEALDIRECTLY

Thephrase "exists forthepurpose ofdealing withemployers"insection 3(i)doesnot

require that the purpose of the organization be to deal with employers directly. It is sufficient thatthe organization exists for the purpose of dealing with employers indirectlythrough theorganization's member organizations. Thus, an organization whose function is to coordinate theactivitiesofitsmemberbodiesindealingwithemployers"existsforthepurpose ofdealing
withemployers"withinthemeaningofsection3(i).

030.612CONTRACTSWITHEMPLOYERSUNNECESSARY

If a labor organization meets the definition contained in section 3(i) of the Act, existing "for thepurpose of" dealing with employers, the fact that it does not now have contracts with anyemployersdoes not placeit outsidethescopeoftheAct.

030.613“DEALING”WITHEMPLOYERSCONSISTSOFA“BILATERALMECHANISM”

A “labor organization” under the LMRDA “exists for the purpose, in whole or in part, of dealingwith employers concerning… terms or conditions of employment.”See LMRDA Section 3(i).Prima facie evidence of such a purpose may be found by reference to the organization'sconstitution, bylaws, charter, or resolutions.Actual evidence of dealing can also demonstratesuchpurpose. SeeManual Entry030.610.

“Dealing” involves a “bilateral mechanism,” which entails a pattern or practice in which theorganization,overtime,makesproposalstomanagementandmanagementrespondsbywordor

deed.“Dealing” does not require that the parties establish a collective bargaining agreement orcompromise theirdifferences.Iftheevidenceestablishessuchapatternorpractice,theelementof“dealingwith”ispresent.However,ifthere are onlyisolatedinstancesinwhich a groupmakesad hoc proposals to management, the element of “dealing with” is missing, irrespective ofmanagement’s response to those ad hoc proposals.See E. I. Du Pont De Nemours & Co., 311NLRB893, 894-95 (1993).

Picketing, handbilling, protesting, and other campaigns targeting employers do not constitute“dealing with” without this “bilateral mechanism.”SeeCtr. for United Labor Action, 219 NLRB873, 873-74 (1975).For example, OLMS has analyzed labor advocacy organizations commonlyreferred to as “worker centers,” such as the National Guestworkers Alliance, New York TaxiWorkers Alliance, OUR Walmart, Awood Center, Coalition of Immokalee Workers, GarmentWorkers Center, Pilipino Workers Center, Restaurant Opportunity Center of New York, WorkersDefense Project, and Working Washington.While the facts concerning each differed in somerespects, these organizations did not demonstrate that they existed for the purpose of dealing withemployers, either through statements in their governing documents or through an actual orattempted pattern of dealing.Rather, their governing documents demonstrated that they exist forthepurposeofprovidingotherservices,suchaspoliticaladvocacy,legaladvocacy,socialreform,community organizing, and coalition building.Further, OLMS did not find that theseorganizations, in practice, “deal” with employers.The worker centers did not have collectivebargaining agreements with employers, and they have not organized employees to serve as anexclusive bargaining representative.Employers also did not recognize the worker centers asemployee representatives, and the worker centers did not engage in any sort of interchange withtheemployers.

While many of their activities focus on employment issues and while some involve pressuretactics (e.g., picketing, handbilling, protesting, and engaging in sporadic work stoppages) thatseek to improve working conditions, none of the activities actually undertaken by theseorganizations constitute “dealing with employers” or evidence a purpose of “dealing withemployers,”astheydonotconstitutea“bilateralmechanism.”Activitiessuchasprovidinglegalservices to employees, educational activities about working conditions in an industry, andprotesting activities alone do not constitute a bilateral mechanism involving a pattern or practiceof proposals followed by an employer response and subsequent engagement with the workercenter.

See Manual Entry 030.6023(February2022)

030.620INFORMALORGANIZATION

The language of section 3(j) of the Act will be construed broadly to include all labororganizations of any kind other than those clearly shown to be outside the scope of the Act. Thelanguage is deemed sufficiently broad to encompass any labor organization irrespective of size orformal attributes. For example, employee committees which regularly meet with management todiscuss problems of mutual interest and handle grievances are "labor organizations" even thoughtheyhaveno formal organizational structure.

See29CFR 451.2,451.3

030.622INFORMALGROUPSREPRESENTINGEMPLOYEES

The courts have held in a number of cases under the Labor Management Relations Act that noformal organization is required for a group to be defined as a "labor organization" under the law,and that loosely formed employee committees, appointed by employers to present grievances tothe employers, and neither having bylaws or officers nor collecting dues, are "labor organizations"under the Act (National Labor Relations Boardv. Cabot Carbon Co., 360 U.S. 203, 44 LRRM2204(1959);Pacemaker Corp.v.National LaborRelationsBoard,260F.2d880,43 LRRM2120
(7thCir.1958).

(TechnicalRevisions:Dec.2016)

030.623SELECTIONOFINDIVIDUALTOREPRESENTEMPLOYEES

Selection or designation of an individual as a bargaining representative of employees isevidencethata "labororganization”existswithinthemeaningofsection3(i)ofthe LMRDA.Thelabororganizationconsists oftherepresentativeand theemployees whodesignatehim.

030.624TEMPORARYCONFERENCEBOARD

Anessentialcharacteristicofalabororganizationisthatitisaseparateorganizationratherthanmerely a department or an instrument of a labor organization. Consequently, where certainconference boards of a national union are not separate organizations but are arms of the nationalused initscollective bargainingactivities, theyarenotlabor organizationsforpurposesof theAct. Characteristically, such conference boards have no constitutions, no fixed officers, no officeor mailing address, no administrative functions, do not sign as parties to contracts, and have nocontinuityofexistencebut areformed from timeto timeas required.

*030.625JOINTEMPLOYER-UNIONCOMMITTEE

A grievance committee created by a collective bargaining agreement in which both union andemployer representatives participate and which exists solely for the purpose of resolvinggrievances as set forth in the collective bargaining agreement is not a labor organization withinthemeaningoftheLMRDA.

030.626ANTI-UNIONCOMMITTEE

A Committee of Employees established onlyfor the purpose of defeating a union organizingdrive, which was not intended to act as a union, which did not bargain with the employer orentertain grievances from members, and which disbanded as soon as the representation electionwascompleted, was notalabororganization withinthemeaningoftheLMRDA.

*030.627JOINTAPPRENTICESHIPCOMMITTEE

A joint apprenticeship committee, composed of representatives of the employer andrepresentativesoflabor,isnotalabororganizationwithinthemeaningoftheLMRDA.However,it is a "trust in which a labor organization is interested" under the definition in section 3(1) of theActand thereforerequired tocomplywith thebondingprovisions ofsection 502(a)oftheAct.

SeeManualEntries041.301and531.405etseq.

(TechnicalRevisions:Dec.2016)

030.628COMMITTEEOFUNIONSDEALINGWITHPUBLICBODIES

An ad hoc committee which is not subordinate to an international, whose membership consistsof a group of unions of the building crafts, and which exists solelyfor the purpose of calling theprovisions of a State prevailing wage law (a law providing for the payment of the prevailing wagein the area on all public construction contracts) to the attention of the various public bodies in theState and to bring suit against any public body in violation of that law, is not a labor organizationas defined by the LMRDA. However, if the committee also deals with private contractorsconcerning wages or any other matter specified in section 3(i) of the Act, it is a labor organizationwithintheterms oftheLMRDA.

030.629RAILROADADJUSTMENTCOMMITTEES

A local committee of adjustment which is limited to a railroad system having but one division(or lodge) is not a labor organization even though it is designated as a "general" committee ofadjustment by the international constitution. However, the financial transactions of such a localcommittee must be incorporated in the reports submitted by the division (or lodge) of which thecommitteeis apart, pursuant to section 201.

On the other hand, a multi-division (or multi-lodge) general committee of adjustment would beanintermediatebodywhich issubject to thereportingand otherrequirements oftheAct.

030.630FEDERALCREDITUNION

Afederalcreditunion isnotalabororganizationwithinthemeaningoftheAct.

030.632CORPORATIONOWNEDBYUNIONS

Acorporationwhosestockholdersarelabororganizationsandmembersoflaborunionsbutwhose sole function is to engage in the rental of office space to labor organizations and othertenantsdoes not,on itsface, come within theAct's definitionofalabororganization.

030.634WOMEN'SAUXILIARY

Women's auxiliaries of labor unions are not normally "labor organizations" within the meaningof section 3(i) of the Act, because they do not ordinarily exist "for the purpose, in whole or inpart, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours,orothertermsor conditionsofemployment " Theyalso usuallydo notfall within anyofthe

categories described in section 3(j) as being "engaged in an industry affecting commerce."030.636UNIONSHAVINGBOTHGOVERNMENTANDNONGOVERNMENTLOCALS
A national or international union whose membership consists predominantly of employees ofgovernmental agencies is nevertheless a labor organization within the meaning of the Act if anyofits locals represents members who are not employed by State or other governmentalinstrumentalities. (It is immaterial that the employer with which a particular local bargains is acharitablehospital oraprivate, non-profit educationalinstitution.)

Forexample,ifalocalrepresentsemployeesofa non-profitpubliccorporation(supportedin

part by State and/or municipal funds) which has been chartered to run a zoo, the local is a labororganization within the meaning of LMRDA unlessthe employees involved are considered Stateor municipal employees under pertinent State law. The national or international is also coveredunder the Act because one of its locals is not an exempt labor organization. The intermediatebody, subordinate to the national or international, with which the local is affiliated is covered forthesamereason.

030.640FEDERATIONS

Federations, such as the American Federation of Labor and Congress of IndustrialOrganizations, are included as "labor organizations" under section 3(j)(2), although expresslyexceptedfrom theelection provisionsofTitleIVoftheAct.

See29CFR451.4(c).

030.650DETERMININGLOCALORNATIONALSTATUS

In National Labor Relations Board v. Highland Park Mfg. Co., 341 U.S. 322 (1951), theSupremeCourtheldthattheCongressof IndustrialOrganizations(CIO),beingadmittedlyalaborunion and one of nationwide jurisdiction, operation and influence, was certainly in the ordinarilyacceptedmeaning, anational union,whateverits internal compositions.

In additiontotheforegoing,thefollowingshouldbeconsidered:

1. 
   Internalcomposition.
   

2. 
   Relationshipoftheorganizationto anysuperior orsubordinatebodies.
   

3. 
   Statusofanysuperior,subordinateoraffiliatedbodiesorgroups.
   

4. 
   Thehistoryandobjectives ofthelabororganization.
   

5. 
   Constitutional provisions which may or may not limit jurisdiction or membership to theemployeesofasinglelocal employer.
   

6. 
   Theclassificationchosenbythelabororganizationshouldbegivensome weight.(TechnicalRevisions: Dec. 2016)
   

030.652"NATIONAL"CLASSIFIEDAS LOCAL

The classification of a union for purposes of the LMRDA depends upon its characteristicsrather than its name designation or how it classifies itself. Analysis of the facts with regard to theNational Cash Register Employees' Independent Union indicates that it is a local labororganization rather than a national labor organization. This is so because the members of theNCREIU, which has neither subordinate nor superior affiliates, are employed in Ohio and there isno evidence that it represents, or that it is trying to organize or represent employees outside Ohio.It has negotiated only one bargaining agreement with the National Cash Register Company andthatconcernsonlythe employeesintheDayton,Ohio,andWashingtonCourtHouse,Ohio,areas.

The day-to-day operation of the Union indicates that the membership of the NCREIU meetsmonthly at a single time and place. Special meetings of all the membership may be called byverbal or telephone notice, together with posting of notice for forty-eight hours. Ratification ofcontract terms with the Company is by the members present at a specially-called meeting of themembership. The NCREIU Executive Committee is composed of the only officers of theNCREIU, including Vice Presidents of Divisions, the latter of which are "plant" rather thangeographic segments. Nomination of officers takes place at the regular October generalmembership meetings. All members have a right to nominate the Election Committee and thecandidates for offices. The sole disciplinary power over the members is vested in the NationalExecutive Committee with a right of appeal to the next regular membership meeting. Committeesare chosen by the National President with the approval of the National Executive Committee forthe purpose of bargaining collectively with the employer and all members are eligible for thosecommittees.

In summary, the entire operation and functions of the Union are carried on by the officers electedand located in the Dayton area, and the constitution and bylaws establish that the Union isintended to function internally in ways similar to locals whose characterization as locals isgenerallyaccepted.

Where a labor organization was subordinate to an international union, had no subordinateorganizational units, paid a “per capita” tax to the international, negotiated the basic terms ofcollective bargaining agreements, ensured that the agreements were enforced, handled grievances,collected dues from members, maintained out-of-work lists, and held meetings at which membersexpressed their views, the DOL determined that the organization was functionally and structurallya local labor organization.See Donovanv. International Brotherhood of Boilermakers, 736 F.2d618 (10th Cir. 1984), in which the court upheld the DOL’s determination that the entity was localratherthan national.

(Revised:Dec.2016)

030.655DETERMININGLOCALORINTERMEDIATESTATUS

In classifying a union entity as intermediate or local, OLMS will look at the entity’s “functionsand purposes” rather than “its formal title or nominal placement within the organization.”Theinquiry is “whether the intermediate body has taken on so many of the traditional functions of alocal union that it must in actuality itself be considered a local union.” The organization’splacementwithintheoverallstructureof aunionisalsohighlyrelevant.Applyingthesefactors,the New England Regional Council of Carpenters was determined to be an intermediate ratherthanalocal union bodyand is thus notrequired bytheActto conduct directelections.

Harrington, Supplemental Statement of Reasons (January 31, 2003); Harringtonv. Chao, 372 F.3d52(1st Cir. 2004).

Dec.2016