Olms interpretative Manual

IMPROPEROBJECTS

315.500INDEBTEDNESSTOINTERNATIONAL

A local union’s indebtedness to an international union may be a valid reason for theinternationaltoimpose andcontinuea trusteeshipoverthe localwithinthe meaningofsection 302of LMRDA.However, when the international deliberately increases the debt of the local ratherthan taking steps to decrease it, the continuance of the trusteeship would not be considered to befor a properpurpose.

ACTIVITIESOFATRUSTEEDUNION

1. 
   UNLAWFULACTSRELATINGTOLABORORGANIZATIONUNDERTRUSTEESHIP
   

LMRDA,SECTION303

1. 
   Duringanyperiodwhenasubordinatebodyofalabororganizationisin trusteeship,itshall be unlawful (1) to count the vote of delegates from such body in any convention orelection of officers of the labor organization unless the delegates have been chosen bysecret ballot in an election in which all the members in good standing of such subordinatebodywereeligibletoparticipate,or(2) totransfertosuchorganizationanycurrent receiptsor other funds of the subordinate body except the normal per capita tax and assessmentspayable by subordinate bodies not in trusteeship:Provided, That nothing herein containedshall prevent the distribution of the assets of a labor organization in accordance with itsconstitutionand bylawsupon the bona fide dissolutionthereof.
   
2. 
   Anypersonwhowillfullyviolatesthissectionshallbefinednotmorethan$10,000orimprisonedfor not more than one year, or both.
   

320.005PURPOSESOF SECTION

Section303of theAct appearstohave beendesignedtopreventtwo ofthe mostflagranttypes of abuses that the McClellan Committee found arising out of trusteeships.These were theconcentration of power in individuals or groups through the manipulation of delegates fromunionsunder trusteeshipand the“milking”of the treasuries of these unions.

320.200RATIFICATION OF CONTRACT

Members of a local in trusteeship were held to have no standing under LMRDA tochallenge the administrator for not allowing them the right, granted under their local constitution,to vote on the ratification of a contract negotiated by the trustee since the trusteeship suspendedtheautonomy of a localunion.