What to DO | DRAFT AN LMC OPERATING AGREEMENT

Why have an Operating Agreement?

A Labor Management Committee [LMC] Operating Agreement clarifies the LMC's mandate and operating procedures by providing the following:

  • Consistency and accountability for the LMC members.

  • Organization-wide transparency about what the LMC does.

  • An orientation for new members of the LMC; and,

  • It can provide a re-grounding for LMCs if they get off track.

Creating the Operating Agreement is one of the very first tasks of new Labor Management Committees. The process of drafting the agreement together helps ground the Committee in a shared purpose and commitment. If an LMC has been operating for a while without an agreement and misunderstandings arise, taking a pause to create an Operating Agreement can serve to strengthen an existing committee.

How to Begin

  1. Copy the contract article referencing the LMC and save it as a separate document in the LMC folder. Use the information there as the starting point for the Agreement.

  2. If each group has identified its co-chairs, they can meet and work together to make the initial draft, identifying areas to have the Committee weigh in.

  3. In one of the first meetings of the LMC, have the Committee members review the document, particularly the Purpose and meeting agreements, and make edits to ensure a high level of shared commitment.

  4. After incorporating suggestions from the Committee, co-chairs finalize the agreement and send members a copy for review.

  5. Once the document is final, it can be shared with all staff along with an initial report of the LMC launch.

A sample outline

This outline is available as a template by clicking here:

I. Purpose and Composition  

  • The purpose: Why was it created, and what does it hope to accomplish?  

  • Composition & Leadership: Who is on the LMC, and what are the roles? 

  • Meeting structure:  How frequently, where, and for what duration

II. Communication

  • Meeting agreements:  What will support working together effectively?

  • Information management:  Shared folders, central email address

  • Reporting: How will the LMC report out to staff and leaders?

III. Decision-making & Problem Solving

  • Decision-making:  Clarity on the scope and authority of the LMC. 

  • Modified consensus:  How to use modified consensus for decisions.

  • Interest-based problem solving:  How to work through potential issues.

IV.  Addendum: 

  • Link to documents relevant to the LMC.


 Beyond Neutrality authors and affiliates do not provide legal, tax, or accounting advice. This and all Beyond Neutrality resources are intended for informational and educational purposes only. Readers should consult their own legal, tax, and accounting advisors, and organizations should retain experienced labor-friendly counsel aligned with their values. 2023