Piping Industry Progress & Education

“There are 10 members of the governing body however only 8 of the members vote. Two of the members of the governing body are alternates and have the full authority of a trustee whenever they attend a meeting at which a union or employer trustee is absent.”

“The union trustees have a business relationship. They also serve on the board of the local 469 union.”

“On may 1, 2024, pipe adopted the second restated trust agreement for the piping industry progress and education fund of arizona, as amended by that certain first amendment to second restated trust agreement made effective as of may 1, 2024 (collectively, (the "second trust agreement"). The second trust agreement was entered into by the arizona mechanical contractors association (the "association") and local 469 of the united association of journeyman and apprentices of the plumbing and pipe fitting industry of the united states and canada (the union") and amends and restates the first restated trust agreement for the piping industry progress and education fund of arizona dated may 1, 2023 (the "first trust agreement") in its entirety. Subsequent to the execution of the first trust agreement, the association and the union entered into an industrywide collective bargaining agreement, known as the arizona pipe trade agreement, pursuant to which the association and the union agreed to establish and operate an industrywide labor-management committee under 29 u.s.c. 175a, et seq., and section 302(c)(9) of the labor management relations act of 1947, as amended, 29 u.s.c. 186(c)(9). The association and the union determined that it was in the best interests of the association, the union, and pipe to operate pipe as the required industrywide labor-management committee and to permit pipe to pursue all activities permitted by, and consistent with, the purposes set forth in the labor management cooperation act of 1978, as amended, as well as pipe's tax-exempt status irc 501(c)(5). The second trust agreement was executed in order to permit pipe to operate as an industrywide labor-management committee. In order to permit pipe to operate as an industrywide labor-management committee, the second trust agreement made the following principal revisions to the first trust agreement. First, the purposes of pipe were revised and expanded to include (i) improving labor management relations, organizational effectiveness, job security, economic development, and communication between the association and the union with respect to subjects of mutual interest and concern; and (ii) purposes consistent with those of an industrywide labor-management committee, and to confirm that no net earnings will inure to the benefit of any trustee, the association, the union, or any other individual or entity, except to the extent permitted under applicable law. Second, the governance of pipe was altered such that each of the association and the union are entitled to appoint four (4) trustees and one (1) alternate trustee to a board comprised of eight (8) trustees and (2) alternate trustees. The alternate trustees are entitled to vote only if a trustee appointed by the same trustor (i.e., the association or the union) is absent from a board meeting. Prior to the execution of the second trust agreement, pipe was governed by a board of six (6) trustees all appointed by the association. Other than these principal revisions, the second trust agreement is substantially similar to the first trust agreement. A copy of the second trust agreement and the first amendment are attached.”

“Pipe is governed by a board comprised of eight trustees and two alternate trustees. Each of the association and the union is entitled to appoint four trustees and one alternate trustee to the board. The board of trustees then appoints a board chairman and secretary, annually, each of whom is appointed to a one-year term that expires on may 31st. One officer is appointed by the association and one officer is appointed by the union each year and the officer positions alternate each year between association and union appointed trustees.”

“The executive director reviews the information return before signing the authorization for the return to be transmitted electronically to the internal revenue service. The executive director then informs the trustees that the tax return has been filed.”

“Each director shall discuss to the board of directors any duality of interest or possible conflict of interest whenever the duality or conflict pertains to a matter being considered by the board. The director having a duality of interest or conflict of interest on any matter shall abstain from voting on the matter and shall not be counted in determining the quorum for the vote on the matter.”

“The executive director's compensation is approved by the trustees. The pay scale is in accordance with the union contract between pipefitter union local 469 and plumbing and air conditioning contractors of arizona.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public.”