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UPS Drivers Sue Teamsters for Forcing Nonmembers to Subsidize Organizing Activities and Union Strike Fund

Today, the Foundation issued a news release announcing parallel federal lawsuits concerning illegal forced dues:

With free legal aid from the National Right to Work Foundation, three UPS employees in Kentucky and two UPS employees in Ohio filed federal lawsuits Friday and Monday, respectively, against national and local Teamsters officials for illegal extraction of forced union dues.

In the lawsuits, the nonmember employees claim that the national and local unions breached their duty of fair representation and violated the employees’ First and Fifth Amendment rights by charging and collecting fees used for organizing nonunion workers throughout the United States and financing a members-only “Strike and Defense Fund.”

Read the rest of the Foundation's news release here.

New Developments Regarding the (Still?) Mobbed Up Teamsters Union. . .

In May, a devastating piece from the Far Left New Republic highlighted the Teamsters' officials attempts to get rid of the Independent Review Board (IRB), a federal oversight body intended to police the union's well-documented connections to organized crime. Here's a particularly choice example of Teamster union "representation" from the article:

But Hoffa's efforts [to get rid of the IRB] were derailed by a sensational IRB report that appeared late that year detailing the efforts of Chicago Teamsters, working with a Chicago labor broker, Richard Simon, whom Stier [a former federal prosecutor] would later describe as "having ties to organized crime," to undermine a Teamster local in Las Vegas by negotiating non-union, low-wage agreements to service the city's numerous business conventions.

Now a former Teamsters boss has written in to announce he's shocked - shocked - by the magazine's allegations of corruption. Having already been ejected from the union by the IRB for innappropriate conduct, his credibility on this issue is somewhat strained. Fortunately, the author ably defends his original contentions:

The IRB found that the two men [two Teamsters officials -- one of whom wrote in to object to the first article] tried to get the Teamsters local 631 in Las Vegas, which provided workers to convention shows, to allow Richard Simon, a Chicago labor broker, to provide non-union workers to conventions. The workers, which would be provided by Simon's United Temps, would not receive benefits or overtime. All in all, they would earn less than half of the Teamster workers; and under the labor agreement that the Teamsters had with the conventions, Simon's cut-rate contract could then become the standard for all convention employees. The Teamsters would be screwed, but Simon would come out ahead, and so would Hogan's brother Michael, who was the vice president of Simon's company, and also the head of a convention company that would be hiring Simon's workers.

Notably, the IRB's investigation was later validated by a federal court:

"Having carefully reviewed the hearing record," the Appeals Court wrote, "we concluded that the IRB's findings are supported by substantial evidence, are not arbitrary or capricious, and plainly demonstrate that Hogan and Passo were negotiating a contract that they knew would have harmed the union."

While more oversight may seem desirable, it's no substitute for real reform. Corruption will remain endemic to labor unions like the Teamsters as long as union officials have access to a bottomless source of mandatory dues payments. Furthermore, the entire structure of monopoly bargaining gives employees no meaningful recourse to combat union fraud and corruption, as union officials are essentially installed for life as workers' sole representatives [this National Institute for Labor Relations Research paper is good primer on the relationship between compulsory unionism and union corruption].

Good-faith efforts at union oversight are also vulnerable to changes in the political environment. According to this Wall Street Journal article, one presidential candidate has already announced his support for dismantling the IRB and giving the Teamsters free reign to police themselves. Unfortunately, we already know how that strategy will turn out (from the original TNR article):

To build an argument for getting rid of the IRB, Hoffa set up his own internal oversight group. It was called RISE (or Respect, Integrity, Strength, and Ethics) and was run by a former federal prosecutor and organized crime expert Ed Stier.

. . .

For Stier, however, those hopes were dashed the next year when he began investigating Chicago-area Teamster locals for corruption. As he later detailed in a report, Stier discovered "multiple issues related to organized crime [and] corruption" in Local 714, and similar issues in five other area locals. The report concluded, "Issues related to organized crime infiltration and associated corruption in the Chicago area are numerous and cut across jurisdictional lines." But in the fall of 2003, as Stier was still in the midst of his investigation, the Teamster leadership began objecting vociferously to it, and in February 2004, Hoffa shut it down.

Right to Work Win Forbids Union Bosses from Using Another Enron-Like Accounting Trick to Jack Up Forced Dues

The Daily Labor Report (subscription only) recently reported on an important win for National Right to Work Foundation staff attorneys in the 9th Circuit Federal Appeals Court:

Upholding the National Labor Relations Board's January 2006 decision against Studio Transportation Drivers Local 399 of the Teamsters, the appeals court found that the union, which used the arbitration awards for nonrepresentational purposes such as political and charitable contributions, should exclude the money from its calculation of agency fees rather than use it to reduce its reported nonrepresentational expenses.

By spending the arbitration award money on nonrepresentational rather than representational expenditures, the union in effect increased the agency fees owed by the objecting nonmember for representational expenses, Judge Harry Pregerson wrote for the appeals court.

The win is important because it prohibits cooking the books to overcharge nonmembers who are forced to pay dues to union officials as condition of employment.

It is now even more clearly illegal for union officials to funnel revenue from sources other than union dues to pay for "non-chargeable" items – like politics, lobbying and members-only activities.   Using this scheme, union officials try to get away with charging a higher percentage of the remaining activities to forced-dues-payers.

You can be certain that as long as union officials can force employees to pay dues they will continue to develop schemes to maximize the amount of the dues they extract from unwilling workers.  Thanks to National Right to Work Foundation attorneys, at least this particular method of union discrimination is clearly illegal.

Jimmy Hoffa Ruffles CEO’s Feathers Over Employees' Decision to Resist Teamsters

Jimmy HoffaWhat do union bosses do when independent-minded employees refuse to succumb to union organizing pressure?

Well, it turns out Jimmy Hoffa’s solution is to write a letter to the president of the companies he is trying to organize in order to smear those companies.

Teamsters boss Hoffa did just that in writing to CEO Moir Lockhead once FirstGroup employees began showing admirable resistance to the union's thuggish organizing tactics.

Workers at a Hodgkins, Illinois busing facility – owned by the UK-based FirstGroup – are saying “no” to the Teamsters’ unionization hopes, but union bosses don't like hearing "no" from independent-minded employees.

Hoffa's letter underscores the problems with so-called “neutrality agreements,” since FirstGroup entered into such an agreement with the Teamsters union in order to get the union off its back. Neutrality agreements give unions sweeping access to employees’ personal information and ban secret-ballot elections, since the employer agrees to support a union’s attempt to organize its workforce.

Hoffa’s letter shows that anything short of unyielding assistance to lock employees up in forced unionism by employers is unacceptable to union officials.

In a similar Right to Work Foundation-aided case in Batavia, Illinois, another union with a neutrality pledge refused to go away from a FirstGroup facility – just like what is happening here.

Teamsters Picket Update: 10 Arrested for Threatening Conduct

Following up with Justin’s post on an ugly Teamsters picket in Somerville, Massachusetts, today’s news stories report that 10 Teamsters thugs were arrested during the mess.

The Somerville News has the story:

10 Teamsters were arrested “for rude, offensive and threatening conduct,” according to police.

The owner of Russell Disposal, Charles Carneglia, explained that he feared for his safety after Teamsters militants harassed him when he entered the facility:

…when Carneglia walked to front gate the Teamsters would begin taunting and catcalling him. “Ya piece of s**t,” yelled one picketer Thursday afternoon. “You’re a criminal.”

After the incident last week, Local 25 chief Sean O’Brien was apparently “too busy” to address repeated press inquires. Unable to answer for the Teamsters union notorious and thuggish actions, it’s no wonder this union boss went into hiding.

40 Police in Riot Gear Called in as Teamsters Picket Turns Ugly

40 police in riot gear in Somerville, Massachusetts, were called in yesterday to break up a Teamsters picket that threatened to disrupt the city's trash pick up.

"Officers were pelted with stones," (City Spokesman Tom) Champion said, "and our police officials reported that a small but very vocal group of demonstrators was abusive and confrontational and exhibited violence."

The company's owner, Charles Carneglia, said the push was part of an effort to force unwanted unionization on employees, and that:

"The union guys were trying to bully them not to go to work," he said.

Carneglia claims one union operative slashed his pants with a knife during the confrontation. Watch video of a news story about the incident here.

This ugly incident shows the lengths to which some union officials will go to impose unionization on employees regardless of their wishes.

Teamsters Union Vows Not to Leave Housekeepers Alone

Speaking of not taking no for an answer, local story from The Morning Sun in Michigan highlights that the housekeeping staff at the Soaring Eagle Casino & Resort rejected the Teamsters union in a vote against unionization by more than 2-to-1.

On the surface, one would think that it was a victory for the employees at the hotel and casino. But having received news of the election defeat, Teamsters bosses promised to stick around for another year to make sure they successfully influence the next vote in their favor.

The Morning Sun reports:

“They waxed us pretty good,” said Ed Morin, business agent for Teamsters Local 486. “We’re not walking away from it.”…He said the Teamsters will not go away, and will continue to try to organize other employee groups. “We’ll be around to talk to the other people,” Morin said.

The employees have spoken, but Teamsters officials just refuse to listen.

Merry Christmas- You're Indicted

A high-level Teamsters official from New York yesterday was indicted on federal embezzlement and extortion charges for demanding among other things:

"...that his employees mow his lawn, clean his gutters and chauffeur his family."

Sounds like quite the life. According to the article:

"The indictment said the employees complied with Rumore's demands because they feared they would suffer economic harm or even lose their jobs if they did not."

Rumore was released on $250,000 bond, I wonder where he got all that cash. He also faces up to 25 years in prison.

As noted by the late Senator John McClellan, "Compulsory unionism and corruption go hand-in-hand." These are the sorts of misdeeds union officials perpetrate at the expense of rank-and-file workers when the do not face the accountability instilled by a Right to Work law.

 

“I’m not real big on people threatening me”

Right to Work attorneys helped Montana timber trucker Michael Weller file federal charges against the Teamsters Local 2 after union officials unlawfully ordered him to pay hundreds of dollars in forced dues.

When Weller exercised his rights under Beck, Teamsters union officials responded by illegally threatening to have him fired from his job.

The Daily Inter Lake quoted Weller:

“It’s the principle of the matter. What prompted this was them threatening my job. I’m not real big on people threatening me.”

The Only Way Out of a Union Pension is to “Quit, be fired, or die”

When a company official told Perfecseal, Inc. employee John McHenry and his coworkers that the only way out of a union-controlled pension fund was to “quit, be fired, or die,” they fought back.

With help from Right to Work attorneys the employees forced Teamsters Local 14-M officials to stop requiring the pension fund contributions, though union officials stopped short of returning the pension fund money that John and others already contributed.

Like many employees, John continues to feel intimidated at his workplace. But when one company official said John’s “name was mud” and claimed that “corporate” was “pissed” at him for standing up for his legal rights, John refused to back down.


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