Labor Racketeering can be defined as the intrusion, control and using the union for one’s personal gain and this is done by illegal methods, use of violent tactics and fraudulent methods. The three basic types of labor racketeering are strike insurance, sweetheart deal and siphoning of union funds. Organized crimes also happen under labor racketeering and those are conducted by organization which has a clearly defined structure. The main aim here is to earn money by performing illegal activities (Jacobs & Peters, 2003).