In re the Arbitration of Trustees of Operating Engineers & Participating Employers, Pre-Apprentice, Apprentice & Journeyman Affirmative Action Training Funds

MEMORANDUM OF DECISION AND ORDER

Background:

This case is before the Court on petition of Impartial Umpire, Sam Kagel, selected by the Union and Employer Trustees of a Trust designated as the Operating Engineers and Participating Employers Pre-Apprentice, Apprentice and Journeyman Affirmative Action Training Fund. A dispute between the Trustees was submitted to the Umpire for decision. The issues presented were (1) whether the purposes of the Trust were valid, “and more particularly whether the phrase 'defraying costs of apprenticeship or other training program’ 29 U.S.C. § 186 (c) (6) includes expenditure of trust funds” for the purposes of the Trust Fund; (2) or whether issue (1) should in the first instance be submitted to the United States District Court under 29 U.S.C. § 185 or 29 U.S.C. § 186 , or both for a decision on issue (1). If the Umpire decided that issue (1) should be referred to the District Court the Trustees authorized him to petition the Court in their behalf.

The Umpire’s decision was “[t]hat such judicial determination is necessary to ascertain the validity of the Trust and the proposed implementing Memorandum of Agreement [of the Trust] in light of the…