N.Y. Labor Law § 720: Findings and policy

§ 720. Findings and policy. The rights of employees to organize and to

bargain collectively through labor organizations of their own choosing

have been affirmatively protected by the constitution and statutes of

this state and by parallel federal laws. Encouraged by these laws, a

substantial proportion of the employees in this state have become

members of, and contribute financially to, labor organizations for the

purpose of bargaining collectively with their employers concerning wages

and other conditions of employment. To the officers and agents of their

labor organizations, these employees have entrusted their funds and the

power to act in their behalf in achieving the purposes of their labor

organizations.

Experience has shown instances where officers and agents of some labor

organizations have abused their positions of fiduciary responsibility.

Experience has also shown instances in which some employers, employer

organizations and labor relations consultants have participated in or

induced such abuses of fiduciary responsibility by officers and agents

of such labor organizations.

Responsible leaders of the labor movement have recognized that union

officers and agents have a fiduciary duty to serve the members of the

union honestly and faithfully, and these leaders have taken courageous

action against those who have violated their trust. Experience, however,

has shown that labor's efforts to correct abuses from within need to be

aided and supplemented by legislation.

Such abuses have had a harmful effect on the general welfare, health

and safety of employees and the public. Accordingly, it is hereby

declared to be the public policy of the state of New York that officers

and agents of a labor organization shall be held to a fiduciary

obligation in handling the labor organization's assets; that such

officers and agents shall not acquire financial interests which

interfere or tend to interfere with the faithful performance of their

responsibility to the labor organization; and that such officers and

agents shall account fully to the members of such labor organization for

all assets and financial transactions. It is hereby further declared to

be the public policy of the state of New York that employers, employer

organizations, labor relations consultants and other persons shall not

participate in or induce violations of such fiduciary obligation by

officers and agents of labor organizations.