Is this a breach of fiduciary responsibility

[Guest steward]

A trustee said at a union meeting that the management and union trustees altered the trust document so that selection and removal of the trustees would no longer be done by management and the union. Instead the power would now be only that of the trustees. The reason they did this was to prevent the International union from making any changes in the event the local union was trusteed. Would this not be a breach of their fiduciary responsibility?

[Bill Ecklund]

If the trust agreement allowed the trustees to amend the document, probably would not be a breach of fiduciary duty. Trustees can act in a settlor capacity.

[david rigby]

If the trust agreement allowed the trustees to amend the document...

Normally, the plan document should identify who has the power to amend, and the trust document would not have power to override the plan document.

[Bill Ecklund]

If the trust agreement allowed the trustees to amend the document...

Normally, the plan document should identify who has the power to amend, and the trust document would not have power to override the plan document.

The trust agreement usually contains a amendment provision. It generally will be either the plan sponsors or the trustees that can amend.

[Guest Matthew Gouaux]

Perhaps a more important question is whether this violates the requirement under the Taft-Hartley Act that Taft-Hartley plans be jointly administered by an equal number of labor and management representatives. One question you might need to resolve is whether the Taft-Hartley Act requires union and management control over the appointment and removal trustees (rather than trustee control over their own appointment and removal).

[Guest steward]

Perhaps a more important question is whether this violates the requirement under the Taft-Hartley Act that Taft-Hartley plans be jointly administered by an equal number of labor and management representatives. One question you might need to resolve is whether the Taft-Hartley Act requires union and management control over the appointment and removal trustees (rather than trustee control over their own appointment and removal).

Which agency would enforce Taft Hartley if this is a violation? If this was a decision based on a political motive ( International vs local) then I believe it would violate their fiduciary responsibility.

[Guest steward]

Perhaps a more important question is whether this violates the requirement under the Taft-Hartley Act that Taft-Hartley plans be jointly administered by an equal number of labor and management representatives. One question you might need to resolve is whether the Taft-Hartley Act requires union and management control over the appointment and removal trustees (rather than trustee control over their own appointment and removal).

Which agency would enforce Taft Hartley if this is a violation? If this was a decision based on a political motive ( International vs local) then I believe it would violate their fiduciary responsibility.

We called ERISA and were told that as long as the trust document allows the trustees to alter it, they would be able to entrench themselves as trustees.