Services Employees International Union v. National Union of Healthcare Workers

This appeal presents a classic union power struggle. We must resolve whether § 501 of the Labor Management Reporting and Disclosure Act creates a fiduciary duty to the union as an organization, not merely the union’s rank-and-file members. We hold that it does.

The defendants, who by jury verdict were determined to be rogue local union officials who diverted union resources in an attempt to establish a new competing local union, breached this duty. The international union’s executive committee had decided to consolidate all of its California unionized long-term healthcare workers from three different local unions into one. The defendants actively attempted to obstruct this consolidation, breaching the fiduciary duty they owed their own union as an organization. This breach involved a pattern of conduct of engaging in dual unionism that is not protected speech. Because this breach contravened the union’s constitution, it could not have been authorized. We affirm the jury’s verdict and uphold its award of damages.

I

The Services Employees International Union (“SEIU”) consists of 2.2 million members who work in healthcare, public services, and property services. United…