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Office of Labor-Management Standards (OLMS)

OLMS Interpretative Manual

TABLE OF CONTENTS

DEFINITIONS

030 Definitions Relating to Jurisdiction
030.100 Definitions Relating to Jurisdiction: Commerce
030.200 Definitions Relating to Jurisdiction: Industry Affecting Commerce
030.300 Definitions Relating to Jurisdiction: Labor Organization Engaged in an Industry  
                                                                        Affecting Commerce
030.400 Definitions Relating to Jurisdiction: Employer
030.500 Definitions Relating to Jurisdiction: Employee
030.600 Definitions Relating to Jurisdiction: Labor Organization
031-039 (Numbers Reserved)

040 Statutory Definitions
040.101 LMRDA, Section 3(a) - "Commerce"
040.201 LMRDA, Section 3(b) - "State"
040.301 LMRDA, Section 3(c) - "Industry Affecting Commerce"
040.401 LMRDA, Section 3(d) - "Person"
040.501 LMRDA, Section 3(e) - "Employer"
040.601 LMRDA, Section 3(f) - "Employee"
040.701 LMRDA, Section 3(g) - "Labor Dispute"
040.801 LMRDA, Section 3(h) - "Trusteeship
040.901 LMRDA, Section 3(i) - "Labor Organization"
041.101 LMRDA, Section 3(j) - "Labor Organization Engaged in an Industry Affecting   
                                                      Commerce"
041.201 LMRDA, Section 3(k) - "Secret Ballot"
041.301 LMRDA, Section 3(1) - "Trust in Which a Labor Organization is Interested"
041.401 LMRDA, Section 3(m) - "Labor Relations Consultant"
041.501 LMRDA, Section 3(n) - "Officer"
041.601 LMRDA, Section 3(o) - "Member" or "Member in Good Standing"
041.701 LMRDA, Section 3(p) - "Secretary"
041.801 LMRDA, Section 3(q) - "Officer, Agent, Shop Steward or Other Representative"
041.901 LMRDA, Section 3(r) - "District Court of the United States"
042-049 (Numbers Reserved)

 

DEFINITIONS RELATING TO JURISDICTION:

COMMERCE

030.100 JURISDICTION

Jurisdiction under the Labor-Management Reporting and Disclosure Act of 1959 is established on the basis of the determination that employers and labor organizations are engaged in activities affecting interstate commerce.  "Employer" and "labor organization," and other terms related to the employment relationship, as used in the Act, are, generally speaking, defined broadly so as to provide the maximum coverage. To establish the fact of jurisdiction under the Act, it is necessary to determine whether the employer, or labor organization, comes within the definitions of the Act.

030.101 LMRDA, SECTION 3(a)

"COMMERCE" means trade, traffic, commerce, transportation, transmission, or communication among the several States or between any State and any place outside thereof.

030.102 See 29 CFR 401.1.

DEFINITIONS RELATING TO JURISDICTION:

INDUSTRY AFFECTING COMMERCE

030.201 LMRDA, SECTION 3(c)

"INDUSTRY AFFECTING COMMERCE" means any activity, business, or industry in commerce or in which a labor dispute would hinder or obstruct commerce or the free flow of commerce and includes any activity or industry "affecting commerce" within the meaning of the Labor Management Relations Act, 1947, as amended, or the Railway Labor Act, as amended.

030.202 See 29 CFR 401.3

030.205 COMMERCE OF SMALL VOLUME

Since there is no expression of a Congressional intent to exclude commerce of small volume, it is felt that Congress by the use of the term "affecting commerce" in the Labor-Management Reporting and Disclosure Act has intended to regulate with reference to employers who affect commerce in any degree. National Labor Relations Board v. Fainblatt, 306 U.S. 601 (1939).  (See also National Labor Relations Board v. Ozark Dam Constructors, 190 F. 2d 222 (8th Cir. 1951); NLRB v. Tri-State Casualty Insurance Company, 188 F. 2d 50 (10th Cir. 1951); Wickard v. Filburn, 317 U.S. 111 (1942)).

    (Technical Revisions: Dec. 2016)

030.210 INSTITUTION OF HIGHER LEARNING

A local composed of custodial workers employed by a nonprofit, educational institution alleges that it is not a labor organization within the meaning of section 3(i) of the LMRDA because it does not bargain with an employer who is engaged in an "industry affecting commerce" as defined in section 3(c). The local bases its position on the fact that the NLRB declined to assert its jurisdiction over such an institution in the case of The Trustees of Columbia University City of New York and Community and Social Agency Employees, Local 1707, 97 NLRB No. 72.

The fact that a particular industry is excluded from coverage because of a statutory exemption or a Board policy under the LMRA does not prevent coverage under the LMRDA.  All labor organizations of any type (except state and local central bodies) which bargain with a private sector employer engaged in an industry affecting commerce were intended to be covered by the LMRDA.  See Manual Entries 030.605 (Scope of LMRDA Jurisdiction) and 030.606 (Use of LMRA Precedents). 

Therefore, a labor organization which negotiates a collective bargaining agreement for its members with an "institution of higher learning" which is not an entity of the Federal Government or any of the State Governments is considered, insofar as the LMRDA is concerned, to be negotiating with an employer in an "industry affecting commerce."  Such an organization comes within the definition of a labor organization in section 3(i) of LMRDA and must file the appropriate reports.

    (Revised: Dec. 2016)

030.220 LABOR-MANAGEMENT COMMITTEE

A labor-management committee, which is comprised partially of employers and labor representatives, is an “employer” in an “industry affecting commerce” within the meaning of the Act, at least with respect to its own employees.  The fact that it does not produce any goods or put its capital at risk does not preclude its being "engaged in an industry affecting commerce." To meet this definition, it is not necessary that an association be "engaged in commerce," i.e., that it participate in transactions in commerce. It is only necessary that it be engaged in an industry affecting commerce. There is ample precedent for regarding an association of employers as engaged in an industry affecting commerce on the basis that its members are so engaged. Note particularly cases arising under the Labor Management Relations Act: Katz v. National Labor Relations Board, 196 F. 2d 411(9th Cir. 1952); South Texas Chapter, Associated General Contractors, 107 NLRB 965 (1954)1954 WL 12838 (Jan. 28, 1954); and Santa Clara Pharmaceutical Association, 114 NLRB 256, WL 12926 (Oct. 7, 1955).

    (Revised: Dec. 2016)

030.230 INTRA-STATE FARMING

A farmer whose produce is shipped to a cannery from which it is exported in interstate commerce may be considered to be engaged in an activity in which a labor dispute would hinder or obstruct commerce. Even if his produce did not cross state lines he could be affecting commerce.

Concerning the scope of a farmer's activities, the Supreme Court has repeatedly held that the term "affecting commerce" extends to the protection of interstate commerce from hindrance or obstruction due to activities which are wholly intra-state or local in character. In the case of National Labor Relations Board v. Fainblatt, 306 U.S. 601 (1939), the Court stated, in pertinent part, the following:

“It has been settled by the repeated decisions of this court that an employer may be subject to the National Labor Relations Act though not himself engaged in commerce. The end sought in the enactment of the statute was the prevention of the disturbance to interstate commerce consequent upon strikes and labor disputes induced or likely to be induced because of unfair labor practices named in the Act. That these consequences may ensue from strikes of the employees of manufacturers who are not engaged in interstate commerce where the cessation of manufacture necessarily results in the cessation of the movement of the manufactured product in interstate commerce has been repeatedly pointed out by this court.”

    (Technical Revisions: Dec. 2016)

030.240 RACE TRACK OPERATIONS

Since the operation of a horse race track involves interstate activities, such as the transportation of horses, personnel, equipment and supplies, the transmission of radio and television broadcasts from the track, the advertising in publications of wide geographical distribution, all of which involve the crossing of State lines, employers who operate race tracks are deemed to be engaged in an "industry affecting commerce" as defined in LMRDA.

Therefore, a labor organization representing employees connected with the operation of horse race tracks would be deemed to be engaged in an "industry affecting commerce." Such an organization comes within the definition of a labor organization in section 3(i) of LMRDA and must file the reports required by section 201 thereof.

DEFINITIONS RELATING TO JURISDICTION:
LABOR ORGANIZATION ENGAGED IN AN INDUSTRY AFFECTING COMMERCE

030.301 LMRDA, SECTION 3(j)

A labor organization shall be deemed to be engaged in an industry affecting commerce if it –-
    (1) is the certified representative of employees under the provisions of the National Labor Relations Act, as amended, or the Railway Labor Act, as amended; or
    (2) although not certified, is a national or international labor organization or a local labor organization recognized or acting as the representative of employees of an employer or employers engaged in an industry affecting commerce; or
    (3) has chartered a local labor organization or subsidiary body which is representing or actively seeking to represent employees of employers within the meaning of paragraph (1) or (2); or
    (4) has been chartered by a labor organization representing or actively seeking to represent employees within the meaning of paragraph (1) or (2) as the local or subordinate body through which such employees may enjoy membership or become affiliated with such labor organization; or
    (5) is a conference, general committee, joint or system board, or joint council, subordinate to a national or international labor organization, which includes a labor organization engaged in an industry affecting commerce within the meaning of any of the preceding paragraphs of this subsection, other than a State or local central body.

030.302 See 29 CFR 401.10.

030.305   DEFINITION CREATES REBUTTABLE PRESUMPTION THAT UNION IS  ENGAGED IN "INDUSTRY AFFECTING COMMERCE" IN A CRIMINAL PROSECUTION AGAINST A UNION OFFICIAL

Presuming the fact that a labor organization is certified as the bargaining representative for employees in an industry affecting interstate commerce, it shall also be deemed engaged in such industry; however, the LMRDA does not preclude the defendant charged with violation of the Act from showing that the labor organization of which he was an officer was not engaged in an industry affecting interstate commerce.
Lawson v. United States, 300 F. 2d 252 (10th Cir. 1962), 49 LRRM 2557.

    (Technical Revisions: Dec. 2016)

030.310 BARBERS' LOCAL

Where a barber's local, although it does not negotiate master craft collective bargaining agreements, negotiates individual agreements with independent operators of barbershops within its jurisdiction and is chartered by the Journeymen Barbers International Union of America, it is deemed engaged in an industry affecting commerce within section 3(j)(4) of the Act and comes within the section 3(i) definition of a labor organization.

DEFINITIONS RELATING TO JURISDICTION:
EMPLOYER

030.401 LMRDA, SECTION 3(e)

"EMPLOYER" means any employer or any group or association of employers engaged in an industry affecting commerce (1) which is, with respect to employees engaged in an industry affecting commerce, an employer within the meaning of any law of the United States relating to the employment of any employees or (2) which may deal with any labor organization concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work, and includes any person acting directly or indirectly as an employer or as an agent of an employer in relation to an employee but does not include the United States or any corporation wholly owned by the Government of the United States or any State or political subdivision thereof.

030.402 See 29 CFR 401.5

*030.403 U.S. POSTAL SERVICE

Section 1209 of the Postal Reorganization Act (39 U.S.C. 1209) applies the provisions of the Labor-Management Reporting and Disclosure Act to Postal Service employees' "labor organizations that have or are seeking to attain recognition . . . and to such organizations' officers, agents, shop stewards, other representatives, and members to the extent to which such provisions would be applicable if the Postal Service were an employer" under section 3(e) of the Act.
See 29 CFR 451.3(a)(4).

    (Technical Revisions: Dec. 2016)

030.405   COUNTIES AND MUNICIPAL GOVERNMENTS

Section 3(e) of the LMRDA, which defines the meaning of "employer" under the Act, expressly excludes any "political subdivision" of a State.  The term “political subdivision” includes, among others, counties and municipal governments, so that such entities are not "employers" under the LMRDA.
See 29 CFR 451.3(a)(4).

030.410   CORPORATE OFFICERS

The definition of the term "employer" in section 3(e) includes "any person acting directly or indirectly as an employer or as an agent of an employer in relation to an employee." The clear language of section 3(e) thus includes managers who are responsible for the employer-employee relationship on behalf of the corporation. See National Labor Relations Board v. New Madrid Manufacturing Co., 215 F. 2d. 908, 34 LRRM 2844 (8th Cir. 1954), which involves similar language under the Labor Management Relations Act.

    (Technical Revisions: Dec. 2016)

*030.420 GOVERNMENT-OWNED CORPORATIONS

Section 3(e) of the Act does not specifically exclude from its definition of "employer" a corporation owned by a State or a political subdivision of a State. Excluded from the meaning of "employer" under the Act are the United States, any State, any political subdivision of a State, and any corporation wholly owned by the Government of the United States. Thus, a corporation owned by a State or political subdivision is an "employer" under the Act unless the corporation is itself either a political subdivision of a State or an integral part of the State.
See also 29 CFR 452.12

*030.425 POLITICAL SUBDIVISION

Section 3(e) of the LMRDA specifically excludes from its definition of "employer" any political subdivision of a State. Whether a particular entity is a "political subdivision" of a State depends upon the facts of each case. Included among the factors that may be considered are the following: (1) whether the State or other public authority exercises any regulatory control over the entity; (2) whether the State or other political authority participates in the selection of officers of the entity; (3) whether the operations of the entity are conducted independently; (4) whether the operations are financed by the State or other public authority; (5) whether the entity was created by a legislative act; (6) whether the employees of the entity are civil servants subject to regulation by or wage scales of the State or other public authority; and (7) whether the entity is exempt from Federal taxation.

030.430   HOSPITALS AND CEMETERIES

Hospitals, whether or not owned by religious groups, may be employers within the meaning of the LMRDA. Their status may depend in part on whether they secured medical supplies from outside the State in which they are located and whether some of their patients are residents of other States.
Likewise, depending upon the specific facts involved, a cemetery association may be an employer within the meaning of the Act. See National Labor Relations Board v. Forest Lawn Memorial Park Association, 206 F. 2d 569 (9th Cir. 1953, 32 LRRM 2611 cert. denied, 347 U.S. 915, 33 LRRM 2589 (1954).

    (Technical Revisions: Dec. 2016)

030.440   ATTORNEY

An attorney would be an employer under section 3(e) of the LMRDA if in connection with his practice (1) he engages in interstate commerce or renders services to clients engaged in interstate commerce or in industries affecting interstate commerce (e.g., certain labor unions), or if he makes frequent and continued use of the instrumentalities of commerce (e.g., telephone, telegram and mail messages across State lines), and (2) he has any employees for whom he makes withholdings under Internal Revenue laws or contributions under the Federal Insurance Contributions Act.

030.450   FRANCHISED AGENTS OF AGVA

Agents franchised by the American Guild of Variety Artists (AGVA) who act only as representatives of certain AGVA members in dealing with employers in the entertainment field are not required by section 203 of the LMRDA to report payments made to AGVA for the franchise. This is because a franchised agent, as such, is not an "employer" within the meaning of section 3(e) of the Act. In representing AGVA members, a franchised agent's interest is opposed to that of the employer, since his income is derived from commissions on the earnings of the AGVA members.

However, a franchised agent who acts not only as a representative of AGVA members but also as a producer of package shows, etc. is an "employer” and therefore is required by section 203(a)(1) to report franchise fee payments made to AGVA. Such franchise fees do not appear to come within the exceptions in section 203(a)(1). Although the franchise fees of the franchised agents who also function as producers are reportable, payments by franchised agents as producers into the AGVA welfare trust fund or the AGVA sick and relief fund appear to come within an exception of section 203(a)(1) of the LMRDA. Such payments appear to come within section 302(c)(5) of the Labor Management Relations Act cited by reference as an exception in section 203(a)(1).
In this connection, the question has arisen as to whether a franchised agent is subject to the reporting requirements of section 202 of the LMRDA.  Although the franchised agent may be an "agent . . . or other representative" of AGVA within the meaning of section 3(g), section 202 refers only to "officers" and "employees" of labor organizations.
    The franchised agent is bound by the terms of the union's standard form contract for the protection and benefit of the union members who are the agent's clients and is an independent contractor rather than an "officer" or "employee" of the union.

DEFINITIONS RELATING TO JURISDICTION:
EMPLOYEE

030.501 LMRDA, SECTION 3(f)

    "EMPLOYEE" means any individual employed by an employer, and includes any individual whose work has ceased as a consequence of, or in connection with, any current labor dispute or because of any unfair labor practice or because of exclusion or expulsion from a labor organization in any manner or for any reason inconsistent with the requirements of this Act.

030.502 See 29 CFR 401.6.

030.505 PORT PILOTS ASSOCIATION

    An association of port pilots, established by the State legislature and chartered by an international labor organization, is not a labor organization for purposes of the LMRDA under the conditions indicated below.

    None of the member companies of the steamship association, the putative employer, has any control regarding the selection, remuneration, or supervision of the pilots, or any control whatsoever over the pilots. The duties and responsibilities of the pilots are defined in the State statute which regulates grievances, labor disputes, wages, rates of pay, hours, and other conditions of employment. Any disciplinary action against the pilots must be taken in accordance with statutory procedure which provides that the ultimate action must be taken by the State Governor. Neither a withholding tax nor social security tax is paid by the steamship association or its member companies on the pilots. The pilots are considered independent businessmen under Internal Revenue laws and pay their own estimated income and self-employment taxes. The statute establishing the pilots' association allows it to make its own membership rules, subject to regulations of the United States Coast Guard, applicable State statutes, and the Board of Port Commissioners. Because of the exclusive right awarded to the pilots by the statute to pilot vessels between two specific points, the U.S. Supreme Court has deemed the pilots "state officers" whose work is controlled by the State.

    There is no evidence that the pilots' association exists for the purpose, in whole or in part, "of dealing with employers concerning grievances," etc. Since the statute so thoroughly regulates the duties and responsibilities of the pilots, there is little or no contact between the pilots' association and the shippers, who are under a statutory duty to pay the fees which are established in the statute.

    The above conclusion applies so long as the pilots' association does not negotiate agreements with shippers calling for services outside the pilots' statutory duties. If the pilots' association does so negotiate, which is permitted under amendments to the statute, the question of whether the pilots' association is a labor organization, for purposes of the LMRDA, would depend upon whether the pilots could be considered "employees," rather than "independent contractors," when engaged in the performance of special services pursuant to such agreements with shippers. Significant to whether an individual is an independent contractor is the degree of control exercised by the person hiring the contractors, i.e. whether he has the right to control the work while it is in progress as distinguished from determining the end product, whether the contractor furnishes materials or equipment, and whether the contractor performs a specified service for a specified fee.

    (Technical Revisions: Dec. 2016)

030.510 RETIREES NOT EMPLOYEES

    A local all of whose members are retirees and which continues in existence for the sole purpose of receiving a pension from the union is not a labor organization within the meaning of the Act since these members are not employees within the meaning of section 3(f) and the group does not exist for the purpose, in whole or in part, of dealing with employers.

*030.520 EMPLOYEES WHOM UNION DOES NOT REPRESENT

    A union of Federal, State, or municipal employees which is not a labor organization as defined in the Act will not lose its exempt status if its membership includes employees of nonexempt employers, provided that the union does not represent these members in collective bargaining, grievances, etc. For example, if retired members of a government employees' union retain their membership for welfare, pension, and social reasons while taking employment with employers who are not exempt from the Act, the union will not become subject to the Act since it does not represent the retired employees in their new employment relationship.

    Similarly, a union of public employees which admits employees of a private, charitable corporation, such as a hospital, for the sole purpose of enabling them to participate in insurance and other benefit programs, will retain its exempt status because it does not exist for the purpose of dealing with (private) “employers.”

DEFINITIONS RELATING TO JURISDICTION:
LABOR ORGANIZATION

030.601 LMRDA, SECTION 3(i)

    "LABOR ORGANIZATION" means a labor organization engaged in an industry affecting commerce and includes any organization of any kind, any agency, or employee representation committee, group, association, or plan so engaged in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours, or other terms or conditions of employment, and any conference, general committee, joint or system board, or joint council so engaged which is subordinate to a national or international labor organization, other than a State or local central body.

030.602 SEE 29 CFR 401.9

030.6021 PARTICIPATING EMPLOYEES

    The "participating employees" referred to in section 3(i) of the Act need not necessarily be the employees of the employer with whom the labor organization deals so long as they fall within the broad definition of "employee" in section 3(f) of the Act.
    See 29 CFR 451.3(a)(1).

*030.6022 LABOR ORGANIZATIONS OF POSTAL SERVICE EMPLOYEES

    Labor organizations composed of employees of the U.S. Postal Service are generally subject to the LMRDA pursuant to Section 1209 of the Postal Reorganization Act.

*030.603 SEPARATE EXISTENCE

    To be considered a labor organization under the Act an entity must be a separate organization having an organic existence or structure of its own, in addition to having the other characteristics of a labor organization set forth in sections 3(i) and (j). It may not be a mere administrative arm or an integral, undifferentiated part of another labor organization. Various factors are considered in determining whether an entity has a separate existence. It is not feasible to prescribe a precise formula. An analysis must be made of all the facts concerning the structure and function of a particular entity and a determination made on the evidence as a whole. Factors to be considered include: whether the existence of the entity is recognized by means of a charter, reference in the parent body's constitution, or some other manner; whether it has its own constitution and bylaws or other governing rules; whether it has a distinct and identifiable membership; whether it may accept or reject application for membership; whether it has its own officers; whether it holds meetings as a unit with some regularity or frequency; whether it has assets of its own; whether it may expend funds allocated to it or raised by it; whether it may assess and collect dues, fees, or assessments; whether it may discipline its members; whether it is represented as a unit at conventions or meetings of a parent or other body; and whether it engages in collective bargaining, grievance handling, or any business arrangements.

030.605 SCOPE OF LMRDA JURISDICTION

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

    (Technical Revisions: Dec. 2016)

030.606 USE OF LMRA PRECEDENTS

    Although precedents regarding the definition of a labor organization under the LMRA will be persuasive in interpreting the definition of a labor organization under the LMRDA, they cannot be binding, because (1) terms "employer" and "employee" are more broadly described in LMRDA; (2) LMRDA includes certain intermediate bodies not within NLRA: and (3) the two Acts emphasize different goals.

030.610 ACTUAL DEALING WITH EMPLOYERS NOT ESSENTIAL

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

    For example, a State Nurses Association states in its bylaws that one of its purposes is "To promote and protect the economic and general welfare of nurses" and has an Economic Security Program authorizing the Association to improve the employment conditions of nurses "by using all appropriate instruments, including collective bargaining. . . ." Such an Association may be said to exist at least in part for the purpose of dealing with employers as a representative of employees regardless of whether or not the Association actually negotiates directly with employers at the present time.

030.611 PURPOSE NEED NOT BE TO DEAL DIRECTLY

    The phrase "exists for the purpose . . . of dealing with employers" in section 3(i) does not require that the purpose of the organization be to deal with employers directly. It is sufficient that the organization exists for the purpose of dealing with employers indirectly through the organization's member organizations. Thus, an organization whose function is to coordinate the activities of its member bodies in dealing with employers "exists for the purpose. . . of dealing with employers" within the meaning of section 3(i).

030.612 CONTRACTS WITH EMPLOYERS UNNECESSARY

    If a labor organization meets the definition contained in section 3(i) of the Act, existing "for the purpose of" dealing with employers, the fact that it does not now have contracts with any employers does not place it outside the scope of the Act.

030.620 INFORMAL ORGANIZATION

    The language of section 3(j) of the Act will be construed broadly to include all labor organizations of any kind other than those clearly shown to be outside the scope of the Act. The language is deemed sufficiently broad to encompass any labor organization irrespective of size or formal attributes. For example, employee committees which regularly meet with management to discuss problems of mutual interest and handle grievances are "labor organizations" even though they have no formal organizational structure.
See 29 CFR 451.2, 451.3

030.622 INFORMAL GROUPS REPRESENTING EMPLOYEES

    The courts have held in a number of cases under the Labor Management Relations Act that no formal 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 to the employers, and neither having bylaws or officers nor collecting dues, are "labor organizations" under the Act (National Labor Relations Board v. Cabot Carbon Co., 360 U.S. 203, 44 LRRM 2204 (1959); Pacemaker Corp. v. National Labor Relations Board, 260 F.2d 880, 43 LRRM 2120 (7th Cir. 1958).

    (Technical Revisions: Dec. 2016)

030.623 SELECTION OF INDIVIDUAL TO REPRESENT EMPLOYEES

    Selection or designation of an individual as a bargaining representative of employees is evidence that a "labor organization” exists within the meaning of section 3(i) of the LMRDA. The labor organization consists of the representative and the employees who designate him.

030.624 TEMPORARY CONFERENCE BOARD

    An essential characteristic of a labor organization is that it is a separate organization rather than merely a department or an instrument of a labor organization. Consequently, where certain conference boards of a national union are not separate organizations but are arms of the national used in its collective bargaining activities, they are not labor organizations for purposes of the Act. Characteristically, such conference boards have no constitutions, no fixed officers, no office or mailing address, no administrative functions, do not sign as parties to contracts, and have no continuity of existence but are formed from time to time as required.

*030.625 JOINT EMPLOYER-UNION COMMITTEE

    A grievance committee created by a collective bargaining agreement in which both union and employer representatives participate and which exists solely for the purpose of resolving grievances as set forth in the collective bargaining agreement is not a labor organization within the meaning of the LMRDA.

030.626 ANTI-UNION COMMITTEE

    A Committee of Employees established only for the purpose of defeating a union organizing drive, which was not intended to act as a union, which did not bargain with the employer or entertain grievances from members, and which disbanded as soon as the representation election was completed, was not a labor organization within the meaning of the LMRDA.

*030.627 JOINT APPRENTICESHIP COMMITTEE

    A joint apprenticeship committee, composed of representatives of the employer and representatives of labor, is not a labor organization within the meaning of the LMRDA. However, it is a "trust in which a labor organization is interested" under the definition in section 3(1) of the Act and therefore required to comply with the bonding provisions of section 502(a) of the Act.

See Manual Entries 041.301 and 531.405 et seq.

          (Technical Revisions: Dec. 2016)

030.628 COMMITTEE OF UNIONS DEALING WITH PUBLIC BODIES

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

030.629 RAILROAD ADJUSTMENT COMMITTEES

    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 of adjustment by the international constitution. However, the financial transactions of such a local committee must be incorporated in the reports submitted by the division (or lodge) of which the committee is a part, pursuant to section 201.

    On the other hand, a multi-division (or multi-lodge) general committee of adjustment would be an intermediate body which is subject to the reporting and other requirements of the Act.

030.630 FEDERAL CREDIT UNION

    A federal credit union is not a labor organization within the meaning of the Act.

030.632 CORPORATION OWNED BY UNIONS

    A corporation whose stockholders are labor organizations and members of labor unions but whose sole function is to engage in the rental of office space to labor organizations and other tenants does not, on its face, come within the Act's definition of a labor organization.

030.634 WOMEN'S AUXILIARY

    Women's auxiliaries of labor unions are not normally "labor organizations" within the meaning of section 3(i) of the Act, because they do not ordinarily exist "for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours, or other terms or conditions of employment . . . ." They also usually do not fall within any of the categories described in section 3(j) as being "engaged in an industry affecting commerce."

030.636 UNIONS HAVING BOTH GOVERNMENT AND NONGOVERNMENT LOCALS

    A national or international union whose membership consists predominantly of employees of governmental agencies is nevertheless a labor organization within the meaning of the Act if any of its locals represents members who are not employed by State or other governmental instrumentalities. (It is immaterial that the employer with which a particular local bargains is a charitable hospital or a private, non-profit educational institution.)

    For example, if a local represents employees of a non-profit public corporation (supported in part by State and/or municipal funds) which has been chartered to run a zoo, the local is a labor organization within the meaning of LMRDA unless the employees involved are considered State or municipal employees under pertinent State law. The national or international is also covered under the Act because one of its locals is not an exempt labor organization. The intermediate body, subordinate to the national or international, with which the local is affiliated is covered for the same reason.

030.640 FEDERATIONS

    Federations, such as the American Federation of Labor and Congress of Industrial Organizations, are included as "labor organizations" under section 3(j)(2), although expressly excepted from the election provisions of Title IV of the Act.
See 29 CFR 451.4(c).

030.650 DETERMINING LOCAL OR NATIONAL STATUS

    In National Labor Relations Board v. Highland Park Mfg. Co., 341 U.S. 322 (1951), the Supreme Court held that the Congress of Industrial Organizations (CIO), being admittedly a labor union and one of nationwide jurisdiction, operation and influence, was certainly in the ordinarily accepted meaning, a national union, whatever its internal compositions.

    In addition to the foregoing, the following should be considered:
   
    1. Internal composition.

    2. Relationship of the organization to any superior or subordinate bodies.

    3. Status of any superior, subordinate or affiliated bodies or groups.

    4. The history and objectives of the labor organization.

    5. Constitutional provisions which may or may not limit jurisdiction or membership to the employees of a single local employer.

    6. The classification chosen by the labor organization should be given some weight.

          (Technical Revisions: Dec. 2016)

030.652 "NATIONAL" CLASSIFIED AS LOCAL

    The classification of a union for purposes of the LMRDA depends upon its characteristics rather than its name designation or how it classifies itself. Analysis of the facts with regard to the National Cash Register Employees' Independent Union indicates that it is a local labor organization rather than a national labor organization. This is so because the members of the NCREIU, which has neither subordinate nor superior affiliates, are employed in Ohio and there is no 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 and that concerns only the employees in the Dayton, Ohio, and Washington Court House, Ohio, areas.

    The day-to-day operation of the Union indicates that the membership of the NCREIU meets monthly at a single time and place. Special meetings of all the membership may be called by verbal or telephone notice, together with posting of notice for forty-eight hours. Ratification of contract terms with the Company is by the members present at a specially-called meeting of the membership. The NCREIU Executive Committee is composed of the only officers of the NCREIU, including Vice Presidents of Divisions, the latter of which are "plant" rather than geographic segments. Nomination of officers takes place at the regular October general membership meetings. All members have a right to nominate the Election Committee and the candidates for offices. The sole disciplinary power over the members is vested in the National Executive Committee with a right of appeal to the next regular membership meeting. Committees are chosen by the National President with the approval of the National Executive Committee for the purpose of bargaining collectively with the employer and all members are eligible for those committees.

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

Where a labor organization was subordinate to an international union, had no subordinate organizational units, paid a “per capita” tax to the international, negotiated the basic terms of collective bargaining agreements, ensured that the agreements were enforced, handled grievances, collected dues from members, maintained out-of-work lists, and held meetings at which members expressed their views, the DOL determined that the organization was functionally and structurally a local labor organization.  See Donovan v. International Brotherhood of Boilermakers,736 F.2d 618 (10th Cir. 1984), in which the court upheld the DOL’s determination that the entity was local rather than national.

          (Revised: Dec. 2016)

030.655 DETERMINING LOCAL OR INTERMEDIATE STATUS

In classifying a union entity as intermediate or local, OLMS will look at the entity’s “functions and purposes” rather than “its formal title or nominal placement within the organization.”  The inquiry is “whether the intermediate body has taken on so many of the traditional functions of a local union that it must in actuality itself be considered a local union.” The organization’s placement within the overall structure of a union is also highly relevant.  Applying these factors, the New England Regional Council of Carpenters was determined to be an intermediate rather than a local union body and is thus not required by the Act to conduct direct elections.  Harrington, Supplemental Statement of Reasons (January 31, 2003); Harrington v. Chao, 372 F.3d 52 (1st Cir. 2004).
 
          Dec. 2016

INTERMEDIATE BODIES

030.660 STEERING COMMITTEE

    A "Steering Committee" which is composed of representatives from 6 locals (in the same geographical area) engaged in the same industry is affiliated with a District Council of a particular International. The 6 locals comprising the "Steering Committee" have contracts with the same employer. The District Council also contains numerous other locals in other related industrial activities. Factually, it has been ascertained that the Steering Committee is subordinate to the International Union; is composed of local labor organizations engaged in an industry affecting commerce; is endowed with separate organic identity in that it is a continuing body conducting regular meetings and electing its own officers and having bylaws; exists for the purpose of coordinating its local members' activities, contract proposals, contract negotiations; and has among its officers a Financial Secretary who is required under its bylaws to be bonded (thus indicating the presence or expectation of funds). Consequently, the Steering Committee has been determined to be an intermediate type labor organization within the meaning of the Act even though the Constitution and Bylaws of the District Council make no provision for such a "committee."

030.662 BUILDING AND CONSTRUCTION TRADES COUNCIL

    A building and construction trades council, which is chartered by the Building and Construction Trades Department of the AFL-CIO and represents a number of locals in the building and construction industry in a particular area but does not itself engage in collective bargaining, is a labor organization subject to the requirements of the Act.

030.664 MARITIME PORT COUNCILS

    The Maritime Port Councils chartered by the Maritime Trades Department, AFL-CIO, are intermediate labor organizations for purposes of the LMRDA of 1959. These Councils are not local central bodies for the reason that their membership is limited to unions whose jurisdiction involves the maritime trades in a particular port area. Furthermore, some of these Councils actually have collective bargaining responsibilities. The fact that some do not have collective bargaining responsibilities does not change the determination that they are labor organizations since intermediate bodies "are covered" irrespective of whether they exist for the purpose of dealing with employers.

030.665 LOCAL FEDERATIONS OF RAILWAY EMPLOYEES' DEPARTMENT OF AFL-CIO

    Local Federations of the Railway Employees' Department of the AFL-CIO are intermediate labor organizations within the meaning of the LMRDA. By virtue of their charter from the Railway Employees' Department they accept as members different Craft Unions such as Machinists, Welders, etc., whose employees are employed by the various railroads at a particular location where the railroad has repair and other types of shops. These are not local central bodies since membership in the Local Federation of the Railway Employees' Department is limited solely to the Craft Unions which bargain with the railroads in the particular locale in which the Local Federation is situated.

030.666 STATE LEGISLATIVE BOARDS OF RAILROAD BROTHERHOODS

    State Legislative Boards which are provided for in constitutions of the Railroad Brotherhoods and which function under the jurisdiction of the parent body are subject to the provisions of the Act which are applicable to "intermediate bodies." From the way in which these State Legislative Boards are organized and the position they occupy in the organizational structure of their respective Brotherhoods, it is clear that they are not national, international, or local labor organizations. Their coverage results from the section 3(i) definition of "labor organization" by the inclusion there of labor organizations which are subordinate to national or international labor organizations. Such subordinate organizations are within the Act's definition of "labor organization," irrespective of whether or not they exist for the purpose of dealing with employers.

030.668 STATE OR LOCAL CENTRAL BODY

    (a) The definition of "labor organization" in section 3(i) and the examples of labor organizations deemed to be engaged in an industry affecting commerce in section 3(j)(5) both except from the term "labor organization" a "State or local central body." As used in these two sections, the phrase "State or local central body" means an organization that:
    (1) Is chartered by a federation of national or international unions, and
    (2) Admits to membership local unions and subordinate bodies of national or international unions that are affiliated with the chartering federation within the State or local central body's territory and any local unions or subordinate bodies directly affiliated with the federation in such territory; and
    (3) Exists primarily to carry on educational, legislative and coordinating activities.
    (b) The term does not include organizations of local unions or subordinate bodies (1) of a single national or international union; or (2) of a particular department of a federation or similar association of national or international unions.                                29 CFR 451.5

030.669 STATE ORGANIZATIONS OF INDEPENDENT UNIONS

    The exemption from the provisions of LMRDA given to a "State or local central body" is not limited to entities chartered by the AFL-CIO. Entities chartered by any federation of national or international unions are exempt if they meet the criteria set forth in section 451.5 of the Interpretative Bulletin (see Manual Entry 030.668 for text). Under these criteria, a State body chartered by a single national or international union, even if that union is affiliated with a federation of national or international unions, would not come within the terms of the exemption.

030.6691 COMMITTEE OF UNIONS DEALING WITH PUBLIC BODIES

    See Manual Entry 030.628.

030.6692 RAILROAD ADJUSTMENT COMMITTEES

    See Manual Entry 030.629.

LOCALS

030.670 FOREIGN LOCALS

    It is not the purpose of the Act to impose on foreign labor organizations any regulation of the activities they carry on under the laws of the countries in which they are domiciled or have their principal place of business. The applicability of the Act is limited to the activities of persons or organizations within the territorial jurisdiction of the United States. The foregoing would be applicable, for example, to Canadian local affiliated with international labor organizations organized within the United States. Consequently, such foreign locals do not have to submit reports required by section 201 of the Act.

030.672 LOCAL COMPOSED OF RETIREES

    See Manual Entry 030.510.

*030.673 RETIRED MEMBERS

    See Manual Entry 030.520--Employees Whom Union Does Not Represent.

030.680 SUBUNITS - FACTORS DETERMINING STATUS

    A determination of whether a subdivision of a labor organization is, itself, a labor organization must be based on whether the evidence as a whole supports a conclusion that the subdivision manifests sufficient organic existence, purposes, and functions to establish it as a labor organization under the Act.

    Factors usually considered in deciding whether a subdivision has separate identity as an organization are the source of authority which created it and what documents acknowledge its existence; by what constitution, bylaws, or other rules or regulations it is governed; how frequently it holds meetings and whether it does so regularly; whether it is represented as a unit at meetings or conventions of superior bodies, including the parent body; whether it can accept or reject membership applications and take disciplinary action against its own members; whether it can establish or change dues, fees, or assessments and has its own funds, treasury, and property.

    That a subdivision with separate identity as an organization has the purpose, in whole or in part, of dealing with employers, as described in the Act, is usually indicated by the extent to which it participates in the handling and final settlement of grievances, the presentation of bargaining demands, and the acceptance or ratification of collective bargaining agreements.
    See also Manual Entry 030.603.

030.682 SUBUNITS OF A LOCAL

    An autonomous unit of an amalgamated local is a labor organization within the meaning of the Act and is required to file reports pursuant to Title II in a situation where the unit in question has its own bylaws, determines the manner of selecting its own officers, and handles grievance matters and to a limited extent undertakes collective bargaining with the employer who employs the members of the unit.
    See also Manual Entry 030.603.

030.684 BRANCHES WITHOUT ASSETS

    A branch with no charter, money or property is nevertheless a separate labor organization where it has rules of procedure conforming with the parent union's rules and policy and subject to the latter's approval; where these rules set up a governing body; where it has authority to act in matters pertaining to status of its members, subject to appeal to the parent union's board of directors; where it may affiliate with and select delegates to other AFL-CIO organizations in the area; where it negotiates regarding local wages and working conditions subject to consultations with and approval by the parent union's board of directors; and where it appoints committees and officials and adopts rules for conduct of its own affairs.
    See also Manual Entry 030.603.

030.686 BRANCHES OF NATIONAL

    A branch of a national labor organization is a labor organization within the definition in section 3(i) when the local board of the branch has authority (1) to act in matters pertaining to the status of the branch members, subject to their right of appeal to the national's board of directors; (2) to affiliate with, and select delegates to, other labor organizations in the area; (3) to conduct negotiations on local wages and working conditions in consultation with the national's board of directors, with any agreements made subject to the board's approval; and (4) to adopt rules and regulations for the conduct of its affairs even though the approval of the national board is required for these actions, if the articles of agreement and constitution of the branch and the rules of the national indicate that the branch is sufficiently independent to qualify as a labor organization under section 3(i).
    See also Manual Entry 030.603.

030.688 SUBDIVISIONS NOT MEETING ALL CRITERIA

    Even though the subdivision of a local lacks some of the characteristics usually indicative of a labor organization, e.g., it is not chartered, does not have its own bylaws, and does not have authority to accept, reject, or discipline members, or to set the amount of dues and fees, it may be a labor organization under the Act. The documents as well as the information as to actual practice indicate that the Honolulu Section of a local, whose addresses is in California, (1) is a recognized organization with continuity of existence; (2) in which employees participate; (3) with the purpose, at least in part, of dealing with employers; and (4) it is engaged in an industry affecting commerce. These characteristics are sufficient to support the conclusion that the Honolulu Section is a labor organization.

030.690 POOL ARRANGEMENTS

    A. An international labor organization established a "pool arrangement" composed of local labor organizations of the same union, without charter or elected officers for the purpose of supplying adequate and sufficient union labor to employers on a series of construction projects in the same area, to provide temporary affiliation in one body for members of participating chartered locals, and to avoid disputes among such locals in dealing with employers. The international deals with the "pool arrangement" as a separate labor organization. The "arrangement" is managed by a board consisting of representatives of the participating local labor organizations, which holds regular meetings, and which selects the "pool's" business representatives.
   
    The international did not negotiate the collective bargaining agreements under which the "pool" functions. The "pool" and the area construction trades council were the signatories and parties to the collective bargaining agreements with the employers, and the "pool arrangement" is recognized as the local labor organization representing the employees, who either are members of the "pool" directly or of the participating local labor organizations, in matters concerning grievances, wages, rates of pay, hours of work and other terms and conditions of employment. This "pool" also collects dues and fees, issues membership books, and pays per capita taxes to the international.

    It is the Department's position that such a "pool arrangement" is a labor organization within the meaning of section 3(i) of the LMRDA. In reaching its determination the court used language which might be confusing in distinguishing between separate labor organizations and administrative arms, but it is clear that the court held the "pool" to be a separate labor organization. In its resolution of the coverage question, the same court held that section 3(j) also applied in that while the "pool arrangement" was not itself certified as the representative of employees under the National Labor Relations Act, it was a "local labor organization recognized or acting as the representative of employees of an employer engaged in an industry affecting commerce. . . ."

    Opinions 5/31/63, 2/24/64, and Memorandum of Opinion, 5/12/64, United States v. Dicus, 229 F.Supp. 282, 56 LRRM 2243 (E.D. Ark. 1964).          

    B. An international labor organization established a temporary "arrangement" composed of state councils, which is without charter, elected officers, and separate bylaws, for the purpose of handling job referrals and grievances of participating labor organizations under the collective bargaining agreement negotiated by the international union with an employer whose operations cover a group of contiguous states. The "arrangement" is not a party to the contract, holds no regular meetings, has no officers of its own selection, has no members or autonomous powers itself, and remits no per capita taxes to the international nor is any of its income transmitted to the affiliated locals and state councils. The international appoints or hires a person to implement the agreement by performing only such duties as are delegated to him by the international labor organization. Control of the project's funds by officers of the participating state councils stems from their status as representatives of the international. Such an "arrangement" is an administrative arm of the international labor organization rather than a labor organization within the meaning of section 3(i) of the LMRDA, even though the international may consider it to be a local labor organization.

NOTE: Although the two situations set forth above have some similar characteristics, they have the following basic differences:

1. In A the international union did not negotiate the collective bargaining agreement while in B the international negotiated the contract. The "pool arrangement" in A is one of the parties to the contract but the "arrangement" outlined in B is not a party to the agreement.

2. Per capita taxes are paid to the international in A but in B no payments are made to the international.

3. In A some persons hold direct membership in the "pool arrangement" while in B there are no persons holding direct membership in the "arrangement."

4. The directors in A hold regular meetings while in B regular meetings are not held by the council representatives.

5. In A the business representatives are selected by the "pool's" board members, while in B the international selects the "arrangement's" representative.

    (Technical Revisions: Dec. 2016)

030.692 PORT BRANCHES OF NATIONAL MARITIME UNION

    Port branches of the National Maritime Union of America, which do not have (1) membership by port affiliation, (2) locally elected officials, nor (3) voting rights limited to members present at any port meeting, are not labor organizations within the meaning of section 3(i) because they lack sufficient separate organic identify and purpose.

030.694 BRANCHES OF AGVA

    Branches of the American Guild of Variety Artists, where executive committees are elected by active members registered in the branches, and where bylaws empower such committees to (a) recommend minimum wage scales that do not conflict with National minimums, (b) recommend disciplinary action against members within the jurisdiction of a branch, and where (c) committees may be appointed to conduct hearings on salary and breach of contract claims involving AGVA members and management, are labor organizations.

030.695 RAILROAD ADJUSTMENT COMMITTEES

    See Manual Entry 030.629.

STATUTORY DEFINITIONS

040.101 LMRDA, SECTION 3(a)

    "COMMERCE" means trade, traffic, commerce, transportation, transmission, or communication among the several States or between any State and any place outside thereof.
See 030.100.

040.201 LMRDA, SECTION 3(b)

    "STATE" includes any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, Wake Island, the Canal Zone, and Outer Continental Shelf-lands defined in the Outer Continental Shelf Lands Act (43 U.S.C. 1331-1343).

040.202 SEE 29 CFR 401.2

040.301 LMRDA, SECTION 3(c)

    "INDUSTRY AFFECTING COMMERCE" means any activity, business, or industry in commerce or in which a labor dispute would hinder or obstruct commerce or the free flow of commerce and includes any activity or industry "affecting commerce" within the meaning of the Labor Management Relations Act, 1947, as amended, or the Railway Labor Act, as amended.
See Manual Entry 030.200.

040.401 LMRDA, SECTION 3(d)

    "PERSON" includes one or more individuals, labor organizations, partnerships, associations, corporations, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in cases under title 11 of the United States Code, or receivers.

040.402 SEE 29 CFR 401.4

040.501 LMRDA, SECTION 3(e)

    "EMPLOYER" means any employer or any group or association of employers engaged in an industry affecting commerce (1) which is, with respect to employees engaged in an industry affecting commerce, an employer within the meaning of any law of the United States relating to the employment of any employees or (2) which may deal with any labor organization concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work, and includes any person acting directly or indirectly as an employer or as an agent of an employer in relation to an employee but does not include the United States or any corporation wholly owned by the Government of the United States or any State or political subdivision thereof.
See Manual Entry 030.400.

040.601 LMRDA, SECTION 3(f)

    "EMPLOYEE" means any individual employed by an employer, and includes any individual whose work has ceased as a consequence of, or in connection with, any current labor dispute or because of any unfair labor practice or because of exclusion or expulsion from a labor organization in any manner or for any reason inconsistent with the requirements of this Act.
See Manual Entry 030.500.

040.701 LMRDA, SECTION 3(g)

    "LABOR DISPUTE" includes any controversy concerning terms, tenure, or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and employee.

040.702 SEE 29 CFR 401.7

040.801 LMRDA, SECTION 3(h)

    "TRUSTEESHIP" means any receivership, trusteeship, or other method of supervision or control whereby a labor organization suspends the autonomy otherwise available to a subordinate body under its constitution or bylaws.
See Manual Entries 300.001 ff.

040.901 LMRDA, SECTION 3(i)

    "LABOR ORGANIZATION" means a labor organization engaged in an industry affecting commerce and includes any organization of any kind, any agency, or employee representation committee, group, association, or plan so engaged in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours, or other terms or conditions of employment, and any conference, general committee, joint or system board, or joint council so engaged which is subordinate to a national or international labor organization, other than a State or local central body.
See Manual Entries 030.601ff.

    (Technical Revisions: Dec. 2016)

041.101 LMRDA, SECTION 3(j)

    A labor organization shall be deemed to be engaged in an industry affecting commerce if it--
    (1) is the certified representative of employees under the provisions of the National Labor Relations Act, as amended, or the Railway Labor Act, as amended, or;
    (2) although not certified, is a national or international labor organization or a local labor organization recognized or acting as the representative of employees of an employer or employers engaged in an industry affecting commerce; or
    (3) has chartered a local labor organization or subsidiary body which is representing or actively seeking to represent employees of employers within the meaning of paragraph (1) or (2); or
    (4) has been chartered by a labor organization representing or actively seeking to represent employees within the meaning of paragraph (1) or (2) as the local or subordinate body through which such employees may enjoy membership or become affiliated with such labor organization; or
    (5) is a conference, general committee, joint or system board, or joint council, subordinate to a national or international labor organization, which includes a labor organization engaged in an industry affecting commerce within the meaning of any of the preceding paragraphs of this subsection, other than a State or local central body.
See 030.300.

041.201 LMRDA, SECTION 3(k)

    "SECRET BALLOT" means the expression by ballot, voting machine, or otherwise, but in no event by proxy, of a choice with respect to any election or vote taken upon any matter, which is cast in such a manner that the person expressing such choice cannot be identified with the choice expressed.
See 29 CFR 452.97(a).

041.301 LMRDA, SECTION 3(l)

    "TRUST IN WHICH A LABOR ORGANIZATION IS INTERESTED" means a trust or other fund or organization (1) which was created or established by a labor organization, or one or more of the trustees or one or more members of the governing body of which is selected or appointed by a labor organization, and (2) a primary purpose of which is to provide benefits for the members of such labor organization or their beneficiaries. (At present, no reporting forms have been prescribed by the Secretary but the existence of the trust must be acknowledged and identified on Form LM-2, Items 10 and 69, and on Form LM-3, Items 11 and 56.)  See instructions for Form LM-2 and LM-3 .

    (Technical Revisions: Dec. 2016)

041.305 TAXICAB DRIVERS LOAN FUND

    A "Taxicab Drivers' Accident Repair Loan Fund--Contingency Fund" of a local labor organization (1) which was created as a part of a collective bargaining agreement between the cab companies and the union, (2) which is financed entirely by contributions from the employer (cab companies), (3) which is administered by trustees, all of whom are selected by the union and are union officers, and (4) the purpose of which is to provide interest-free loans to union members to enable them to repair accident damages to their taxicabs, was found to be a "trust in which a labor organization is interested" within the meaning of the definition in section 3(1) of LMRDA.

    The above-mentioned definition includes "a trust or other fund or organization". . ."one or more of the trustees or one or more members of the governing body of which is selected or appointed by a labor organization, and (2) a primary purpose of which is to provide benefits for the members. . . ." As indicated by the facts above, the "Fund" clearly comes within this definition.

    Inasmuch as the "Fund" is financed by contributions from employers, which are considered to have been made to union officers who are the trustees, and since there are no employer trustees of the "Fund," it appears that the payments are in violation of section 302 of the Taft-Hartley Act (assuming the Fund was created subsequent to its passage). The exceptions in section 302(c)(5) and (6) do not apply since the "Fund" is not administered in accordance therewith nor is the "Fund" itself one of the type spelled out in those subsections.

    Accordingly, reports from the employers who contributed to the "Fund" are required pursuant to section 203(a)(1) of LMRDA, and reports from union officers who received payments from employers are required pursuant to section 202(a)(1).

    The "Fund" in question cannot be regarded as a "subsidiary organization" as that term is defined in the Instructions for the LM-2 because it is not financed by the labor organization. Neither may it be regarded as a Welfare Benefit Plan under the predecessor statute to the Employee Retirement Income Security Act of 1974 (ERISA) since, as a general rule, the making of loans does not constitute providing benefits within the meaning of that law.

    (Technical Revisions: Dec. 2016)

041.310 FEDERAL CREDIT UNIONS

    Federal credit unions "affiliated" with a labor organization are not trusts in which a labor organization is interested inasmuch as no member of the governing body of the credit union is selected or appointed by the labor organization. Furthermore, a federal credit union is not created or established by a labor organization since, under the Federal Credit Union Law (12 U.S.C. 1771), it must be created by natural persons. Other factors leading to the above conclusion are: (1) Board members of the credit union must be elected by the "membership" of the credit union, (2) Treasurers of federal credit unions must be bonded under the Federal Credit Union Law, and (3) Federal credit unions are audited by an agency of the United States Government.

041.320 PROFIT-SHARING PLAN

    An ordinary type of cash profit sharing program in which the money in a trust fund (established and administered solely by the employer in accordance with a collective bargaining agreement) is distributed to employee-union members according to a specified formula every three months, is not a "trust in which a labor organization is interested." Even though the primary purpose of the trust fund was to provide benefits for the employee-members, it cannot be said that it was established or created by a labor organization unless the labor organization is a party to a specific trust instrument.

    Of course, if a profit-sharing program provides benefits at or after retirement, the reporting and bonding provisions of the Employee Retirement Income Security Act may apply.

041.330 TRUST CREATED BY NOW DEFUNCT LABOR ORGANIZATION

    The "Trust in which a labor organization is interested" continues, even though the labor organization is no longer in existence, whenever the members of the former labor organization and their beneficiaries or both still could receive benefits from that trust.

    (Revised: Dec. 2016)

041.340 "BENEFITS" FOR UNION MEMBERS INCLUDE RECREATIONAL FACILITIES

    The term "benefits" as used in the definition of a "trust in which a labor organization is interested" in section 3(1) of the Act is considered broad enough to include organizations like building associations established by a union or unions to provide, among other things, recreational outlets for union members, retirees and others.

041.401 LMRDA, SECTION 3(m)

    "LABOR RELATIONS CONSULTANT" means any person who, for compensation, advises or represents an employer, employer organization, or labor organization concerning employee organizing, concerted activities, or collective bargaining activities.

041.402 SEE 29 CFR 401.13

041.405 ASSOCIATION AS CONSULTANT

    Where an employer association's corporate charter provides, in part, that the corporation shall "represent, aid and advise members in connection with labor problems, with a view to establishing lasting relations between employer and employees or the duly chosen representatives of employees, and the elimination of labor disputes, stoppage of operations and disturbances. . .," and where its bylaws provide that the grievance committee shall "negotiate and arbitrate grievances under agreements with any labor organization," the corporation is a labor relations consultant within the meaning of the Act, assuming there is a membership fee.

041.410 INDUSTRIAL COUNCIL

    If an industrial council received dues which entitle members to its services in various arbitration conciliation, negotiation, and personnel matters, providing such services "for compensation" in this way would plainly bring the council within the definition of a "labor relations consultant" in section 3(m) of the Act.

041.420 EXTENT OF LABOR SERVICES IMMATERIAL

    An association which has membership fees and which as a membership service, engages in negotiation of labor contracts with Teamster and Carpenter locals and represents members in mediation disputes, although these activities constitute only a small part of the association's total activities, is a "labor relations consultant" within the meaning of section 3(m) of the Act. The precise extent to which such services may be rendered is immaterial as far as the applicability of the definition in section 3(m) is concerned.

    (Technical Revisions: Dec. 2016)

041.501 LMRDA, SECTION 3(n)

    "OFFICER" means any constitutional officer, any person authorized to perform the functions of president, vice president, secretary, treasurer, or other executive functions of a labor organization, and any member of its executive board or similar governing body.
See 29 CFR 452.17 through 452.22.

041.601 LMRDA, SECTION 3(o)

    "MEMBER" or "MEMBER IN GOOD STANDING," when used in reference to a labor organization, includes any person who has fulfilled the requirements for membership in such organization, and who neither has voluntarily withdrawn from membership nor has been expelled or suspended from membership after appropriate proceedings consistent with lawful provisions of the constitution and bylaws of such organization.

041.602 SEE 29 CFR 401.15

041.701 LMRDA, SECTION 3(p)

    "SECRETARY" means the Secretary of Labor.

041.702 SEE 29 CFR 401.16

041.801 LMRDA, SECTION 3(q)

    "OFFICER, AGENT, SHOP STEWARD, OR OTHER REPRESENTATIVE," when used with respect to a labor organization, includes elected officials and key administrative personnel, whether elected or appointed (such as business agents, heads of departments or major units, and organizers who exercise substantial independent authority), but does not include salaried nonsupervisory professional staff, stenographic and service personnel.

041.901 LMRDA, SECTION 3(r)

"DISTRICT COURT OF THE UNITED STATES" means a United States district court and a United States court of any place subject to the jurisdiction of the United States.
                                                                              

 

 

Last Updated: 1-5-17