Legal Definitions - Taft–Hartley fund

A Taft-Hartley fund is a specific type of employee benefit fund, such as a pension, health, or training fund, that is established through a collective bargaining agreement between employers and labor unions. These funds are specifically regulated by the U.S. Labor Management Relations Act of 1947 (commonly known as the Taft-Hartley Act).

The Taft-Hartley Act requires that such funds be administered jointly by an equal number of trustees representing both the employers and the employees (through their union). This joint administration ensures that the funds are managed responsibly, transparently, and used exclusively for the benefit of the employees and their families, preventing potential misuse or corruption.

Here are some examples:

• Construction Industry Health and Pension Fund: Imagine a metropolitan area where several different construction companies employ members of the same carpenters' union. Instead of each company setting up its own separate health insurance and pension plan, they all contribute to a single Taft-Hartley fund. This fund then provides comprehensive health benefits and retirement pensions to all union carpenters working for any of these contributing employers. The fund is overseen by a board of trustees with an equal number of representatives from the construction companies and the carpenters' union, ensuring that decisions are made jointly and in the best interest of the workers, as required by law.

• Trucking and Logistics Retirement Fund: A regional association of independent trucking companies negotiates a collective bargaining agreement with a teamsters' union. As part of this agreement, they establish a Taft-Hartley fund specifically for retirement benefits for all unionized truck drivers employed by any of the member companies. This fund pools contributions from various employers, providing a stable retirement plan for drivers who might work for different companies over their careers. The fund's investment strategies and benefit payouts are managed by a board comprising an equal number of trustees appointed by the trucking companies and the union, adhering to the joint governance structure mandated by the Taft-Hartley Act.

• Hospitality Industry Training and Education Fund: In a major tourist city, several hotels and convention centers that employ unionized service staff (such as housekeepers, banquet servers, and front desk agents) agree to contribute to a joint training and education Taft-Hartley fund. This fund is used to provide ongoing skill development, safety training, and professional certification programs for the unionized employees across these different establishments. The fund is governed by a board with equal representation from the participating hotels/convention centers and the union, ensuring that the training programs are relevant to industry needs and administered in compliance with the legal requirements for jointly managed benefit funds.