Racketeer lnfluenced and Corrupt Organizations Act of 1970 the Rack eteer Influenced and Corrupt Organizations Act serves a vital purpose in labor relations .RICO's primary emphasis with respect to labor unions is to eliminate any influence exerted on unions by members of organized crime. it is a violation of RICO if payments or loans are made to employee representatives,labor organizations,or officers and employees of labor organizations, where such action occurs in the form of bribery kickbacks,or extortion. RICO has been used to oust number of labor officials alleged to have ties to organized crime.