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Seventh Circuit Rules Salary Payments Violate the Labor Management Relations Act


In a significant ruling, the United States Court of Appeals for the Seventh Circuit recently held that Titan Tire Corporation is not obligated to pay the full-time salaries of the president and benefit representative for the union representing employees at the company’s Illinois facility. According to the Court, the individuals at issue earn their current salaries because of their service to the Union. As such, direct salary payments to the president and benefit representative amounts to a violation of the Labor Management Relations Act, which places restrictions on the activities of Unions.

The ruling is significant because it relieves the company from paying expenses it arguably should not have to bear.

The decision can be found here.


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