Over the past fifteen years, the union labor organizations have created efficiencies in operations and costs with the mergers of local unions. These mergers were both of geographical nature as well as systems of technical work. These mergers streamlined the organizational structure of these entities, reduced redundant costs in operations and now can rely on a consistent management ideology within the technical area. The unions also have seen that the reductions in merger cost also allow management to pass on some or all of these savings with lower dues costs. In some cases, the lack of union membership in that geographical location has seen surplus’s reduced at an alarming rate. The LMRDA requires that the officer’s act in a fiduciary capacity while managing the assets of the local therefore in these situations a merger would also be the most effective management decision that could be made. Under the LMRDA guidelines a final report must be filed within ninety days of dissolution. Local Unions must provide final Form 990 as well as all payroll returns for the states that they provide payroll to its employees. Safeguarding of all assets cash, investments, fixed assets as well as electronic intellectual property is crucial. We have a system in place that we have performed in excess of one hundred times in the last seven years alone.
The Benefits of Labor Union Mergers
Labor union mergers, which are the results both of geographical nature as well as systems of technical work, have streamlined the organizational structure of labor union organizations. In doing so, these mergers have also reduced redundant costs in operations. Very often, the scale of these reductions correlates with labor union’s organizational capacity. In some cases, the lack of union membership in a certain location has reduced surpluses at a rapid rate.
In addition to the savings that directly result from decreases in inefficiency, labor union mergers have also served as the impetus for accumulating savings externally. In particular, these savings are passed on from management. The reductions in merger costs result in lower dues costs, allowing management to pass on some or all of these cost reductions to unions and their members.
Labor Union Mergers & the LMRDA
The Labor Management Reporting and Disclosure Act of 1959, also known as LMRDA, has a direct bearing on the organizational efficiency that labor union mergers have inspired. Drafted and signed in the wake of multiple union-related scandals, the LMRDA both incentivizes mergers and acts as an incidental measure to ensure that the savings they effect are long-lasting.
The conditions of the LMRDA have proven to be quite conducive to labor union mergers. It requires that union officers act in a fiduciary capacity while managing the assets of the local union chapter. As a natural consequence, labor union mergers would also be the most effective management decision that could be made in such situations.
The LMRDA also upholds standards of accountability from union officers. Under the guidelines of the LMRDA, a final report must be filed within ninety days of dissolution. Local unions must provide final 990 forms, as well as all payroll returns, for the states in which they provide payroll to their employees. Safeguarding of all assets, including cash, investments, and fixed assets, as well as electronic intellectual property, is paramount.