Olms interpretative Manual

RESTRAINTON DISAFFILIATIONAS TRUSTEESHIP

308.005 VALID DISAFFILIATIONSee ManualEntry 315.100.

ABSENCEOFAUTONOMYOTHERWISEAVAILABLE

309.005SENIORITYDISPUTES

There is no suspension of “autonomy otherwise available” when a president of a union actsunder a resolution of the union’s convention empowering him to act in a seniority dispute betweentwo merged locals if the resolution permanently removes the autonomy of all locals to decidesenioritydisputes. Therefore, there isno trusteeship.

PURPOSESOF TRUSTEESHIPIN GENERAL

310.001LMRDA, SECTION302

Trusteeships shall be established and administered by a labor organization over asubordinate body only in accordance with the constitution and bylaws of the organization whichhasassumedtrusteeshipover thesubordinatebodyand forthepurpose ofcorrectingcorruptionorfinancial malpractice, assuring the performance of collective bargaining agreements or otherdutiesofa bargainingrepresentative,restoring democraticprocedures,orotherwisecarryingout

thelegitimateobjectsof suchlabororganization.

310.005PURPOSES STATEDIN TRUSTEESHIPREPORTS

TheLMRDAstates fourallowable purposesforestablishingtrusteeships:

1. 
   “Correcting corruption or financial malpractice.”This reason has been used by parentunions to justify correction of situations ranging from minor speculations to grossmishandlingoffunds constituting violations ofthe LMRDA.
   

2. 
   “Assuring the performance of collective - bargaining agreements or other duties of abargainingrepresentative.”Thiswasafrequentlyusedandobviouslyimportantreasonforestablishingtrusteeships.
   

3. 
   “Restoringdemocratic procedures.”Thisreasonhasfrequently beenusedfor trusteeshipsestablishedtocorrect violations of the Act.
   

4. 
   “Otherwisecarryingoutthelegitimateobjectsofsuchlabororganization.”Includedunderthis purpose are: caretaker trusteeships(accounting for about one-third of uniontrusteeships),whichwereusedwhenasubordinateunionwasrelativelyinactivebecauseof the closing of a plant, a small or itinerant membership, sudden loss of leadership (e.g.,by death or illness), or because it was a new local not yet able to stand on its own feet;mismanagement, which embraces other than financial malpractice; enforcing asubordinate’s lawful obligations to the parent when a subordinate is improperly refusing tofulfillthoseobligations;and disaffiliation, aself-explanatoryreason for establishing
   

trusteeships.Whethertheasserted“purposes”forestablishingatrusteeshiparevalid isresolvedon a case-by-case basis, dependingon the particular facts.

(Revised:Dec. 2016)

*310.007ONESTATUTORYPURPOSEMAYESTABLISHVALIDITY

If in fact a trusteeship is established and administered for at least one of the purposesenumeratedinsection 302ofthe Act,thevalidityofthe trusteeshipwillnot beaffectedmerelybecauseit mayhave beendesignedtoaccomplish otherpurposes notspecified inthe statute.

Theseotherpurposes,however, mustnotincludeany oftheprohibitedactivities specifiedinsection 303.

310.100TRUSTEESHIPTOFRUSTRATEINVESTIGATION

How the imposition of a trusteeship is to be viewed depends upon the purpose sought to beservedinitscreation.TheDepartmentwillnotallowtheimpositionofatrusteeshipto frustrateits investigation of an election in a trusteed labor organization.It is recognized that use of suchcontrol by a parent organization as a device for correcting election abuses may well prove avaluable tool in aid of a policy of voluntary compliance.In either event the Department is notprecludedfromproceedingwith investigationofatimely receivedelectionviolationcomplaint.

310.200ESTABLISHMENTORADMINISTRATION

TheDepartment’sposition,asexpressedintheSecretaryofLabor,UnionTrusteeships: Report to the Congress (1962), has been that the procedure to be followed in theestablishmentoradministration ofatrusteeshipdoes nothaveto beset forthin theparentlabor

organization’sconstitution andbylawsas aprerequisite foravalidtrusteeship.

However, some U.S. Circuit Courts have ruled to the contrary.SeeInternationalBrotherhood of Teamstersv. Local Union Number 810, 19 F.3d 786, 790 (2d Cir.1994); UnitedBrotherhood of Carpenters and Joiners v. Brown, 343 F.2d 872, 881, 59 LRRM 2141 (10th Cir.1965); Flight Engineers’ International Association, CAL. Chapterv. Continental Air Lines, Inc.,297F.2d 397, 49 LRRM 2951 (9thCir. 1961),cert.denied, 369 U.S.871 (1962).

(TechnicalRevisions:Dec. 2016)

310.300FAILURETO HOLDA HEARING

Section 302 provides two conditions for the establishment of a valid trusteeship: (1) Thetrusteeshipmustbe establishedandadministeredin accordancewith theconstitutionandbylawsof the labor organization which is imposing the trusteeship; and (2) the trusteeship must beestablishedfor one of thepurposes stated insection 302.

On its face, section 302 does not make a “fair hearing” mandatory to establish a validtrusteeship.However, if the constitution and bylaws of the labor organization imposing thetrusteeshipprovide for ahearing,then thetrusteeship wouldnotbe a valid oneunlessa hearingisheld because the trusteeship would not have been established in accordance with the parent labororganization’sconstitution and bylaws.

On the other hand, where the constitution and bylaws of the labor organization do notprovide for a hearing, the effect of the failure of the labor organization imposing the trusteeship tohold a hearing does not affect the validity of the trusteeship, but it deprives the labor organizationofthe 18-month presumption ofvalidityotherwise availableunder section 304(c).


But see Beckerv. Industrial Union of Marine & Shipbuilding Workers, 900 F.2d 761, 768(4thCir. 1990); Jollyv. Gorman, 428 F.2d 960, 966 (5th Cir. 1970), cert. denied, 400 U.S. 1023(1971);Tamv. Rutledge,475 F. Supp. 559,562 n.4 (D. Haw.1979);Luggage Workers Local167
v.International LeatherGoodsWorkers Union,316 F.Supp. 500, 505 (D.Del. 1970)(the
contention “that a fair hearing is required to establish a valid trusteeship, does not appear morereadily from the Act…. The weight of judicial authority favors the requirement, however, andfinds it implied from the legislative history and purpose.”); Plenttyv. Laborers, 302 F. Supp. 332,338,72 LRRM2305 (E.D.Pa. 1969) (Congressrecognized andwished topreserve the common
law rule requiring a “fair hearing”).(Revised:Dec. 2016)
310.305TIMEOF HEARING

When a hearing is held in connection with the imposition of a trusteeship or in order toestablishapresumptionofitsvalidity,sucha hearingmaybeheld beforetheimpositionofthetrusteeship or within a reasonable time thereafter.This conclusion is based on the language ofsection 304(c) that “a trusteeship established by a labor organization in conformity with theprocedural requirements of its constitution and bylaws and authorized or ratified after a fairhearing. . .”

311.