Protest Decisions

OFFICE OF THE ELECTION SUPERVISOR

for the

INTERNATIONAL BROTHERHOOD OF TEAMSTERS

IN RE: HOFFA-HALL 2016,                      )           Protest Decision 2015 ESD 58

                                                                        )           Issued: November 30, 2015

            Protestor.                                           )           OES Case Nos. P-042-090215-NA,

                                                                        )             P-043-090215-NA & P-067-110215-NA    

____________________________________)

            Hoffa-Hall 2016 filed three pre-election protests pursuant to Article XIII, Section 2(b) of the Rules for the 2015-2016 IBT International Union Delegate and Officer Election (“Rules”).  Protest P-042-090215-NA alleged that Take Back Our Union failed to account for all campaign contributions and expenditures, as required by the Rules.  Protest P-043-090215-NA alleged that Take Back Our Union did not qualify as an “independent committee” under the Rules.  Protest P-067-110215-NA alleged that Take Back Our Union failed to file a CCER report timely for reporting period #2.[1]

            Election Supervisor representative Jeffrey Ellison investigated these protests.

Findings of Fact and Analysis

             Take Back Our Union (TBOU) was formed in spring 2014 to generate interest among Teamsters in the 2016 election of International officers and to draft candidates and stimulate formation of a slate to oppose those incumbent officers expected to run.  Investigation showed that around that time Nick Perry, a rank and file member of Local Union 413, opened a post office box and a bank account, and began and thereafter maintained a financial spreadsheet to document income and expenses.  Perry also started a Facebook page.[2] 

            Between June 2014 and February 2015, TBOU organized eight meetings for interested Teamsters around the country.  Teamster members speaking at these events included Sandy Pope, Fred Zuckerman, and Tim Sylvester.  Pope was a candidate for IBT General President in 2011 but is not a candidate for International office presently.  Zuckerman declared his candidacy for International office in August 2014.  Sylvester announced for IBT General President in March 2015.  Perry, the manager of TBOU, is not a candidate for International office.

            Flyers announcing TBOU events explained TBOU’s mission.  As an example, one stated the following:

Teamster members are tired of contract givebacks.  We’ve formed the Take Back Our Union Committee to organize for change.

Come to the first ever Take Back Our Union meeting in New Jersey.

Meet Teamsters members who Voted No against givebacks at UPS, ABF, YRC, and UPS Freight.  Meet Teamsters from every industry who are building a movement to rebuild union power.

Guest speakers include proven Teamster leaders who know how to defeat concessions, win strong contracts and defend our benefits.

            TBOU raised funds to support its operation.  Virtually all contributions to TBOU were received in connection with events held in June and August 2014 and February 2015.  Similarly, the expenditures TBOU incurred related to those events, including flyers promoting the events, hall rental, and travel expenses for speakers.

Investigation showed TBOU ceased operation in April 2015.  At that point, it transferred its balances of verified campaign and legal and accounting funds to Teamsters United and closed its bank accounts.  TBOU’s post office box has expired.  The Facebook page remains up but has had no activity since June 16, 2014.

            TBOU asserts that, during its existence, it qualified as an “independent committee” under the Rules.  An independent committee is “any person or entity not controlled by a candidate or slate who/which has accepted any campaign contribution, as defined by these Rules, or who/which has made any expenditure, where the purpose, object or foreseeable effect of the contribution or expenditure is to influence the election of International Officer candidate(s).”  Rules, Definition 24. 

            We conclude on the facts presented that TBOU was an independent committee under the Rules.  It was formed and maintained to promote the election of members to lead the IBT.  Although some individuals who were guest speakers at TBOU events subsequently became candidates for International office, the evidence demonstrates that TBOU was “not controlled by a candidate or slate” during the period it existed.

            Article XI, Section 2(a)(3) requires “[e]very independent committee which has received or solicited contributions in excess of $1,000 … or made expenditures in excess of $1,000 … [to file CCER Reports and Supplemental Forms No. 1], where the purpose, object or foreseeable effect of any such contribution or expenditure is to influence the election of one or more International Officer candidates, whether or not any such candidate is as yet declared, accredited or nominated.”  TBOU met these thresholds in reporting period 1 (April 1, 2012 through May 31, 2015) and timely filed its reports. 

            The CCER report TBOU filed for reporting period 1 showed seven fundraising events.  Three listed $0.00 for the cost associated with conducting the event.  Elsewhere in the report is proof that members eligible to contribute to campaigns under the Rules made in-kind contributions to TBOU by paying the meeting space rental for the June 21, 2014 event in Philadelphia ($265.00), the June 22, 2014 event in Western Pennsylvania ($200.00), and the August 9, 2014 event in Louisville ($150.00).  One remaining event, conducted at the Hilton Garden Inn in Edison, NJ, showed total expenses associated with the event of $11.97, which represented the cost of raffle tickets sold there.  The venue expense for this event was paid by a member directly to the venue host as an in-kind contribution.  However, use of the conference room was so hampered by nearby construction activity at the facility that the hotel refunded the room cost by issuing a credit for the full charge back to the contributing member.  Email from the hotel sales manager to the member who had paid the room charge explained that the charge was refunded because of “the inconvenience with the noise issues.”  There was no need for TBOU to report this net zero transaction.  

            Protest P-043-090215-NA alleged that TBOU was not an independent committee under the Rules.  We DENY this protest, finding that TBOU during its existence had the purpose of influencing the election of International officers under the Rules and was not controlled by a candidate or slate.

            Protest P-042-090215-NA alleged that TBOU failed properly to account for expenses associated with its events.  We DENY this protest, finding that the CCER report TBOU filed documents the expenses incurred in hosting its events, either in the form of itemized expenditures by TBOU itself or as in-kind contributions to TBOU by members who paid the venue expenses directly.

            Protest P-067-110215-NA alleged that TBOU failed to file a CCER report and Supplemental No. 1 for the second reporting period, June 1, 2015 through September 30, 2015.  We DENY this protest, finding that TBOU ceased operations, transferred all of its funds to Teamsters United, and closed its bank accounts prior to the start of the second reporting period.  As such, the reports for the first reporting period were the only ones TBOU was required to file under the Rules.

Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within two (2) working days of receipt of this decision.  The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Supervisor in any such appeal.  Requests for a hearing shall be made in writing, shall specify the basis for the appeal, and shall be served upon:

Kathleen A. Roberts

Election Appeals Master

JAMS

620 Eighth Avenue, 34^th floor

New York, NY 10018

kroberts@jamsadr.com

Copies of the request for hearing must be served upon the parties, as well as upon the Election Supervisor for the International Brotherhood of Teamsters, 1050 17^th Street, N.W., Suite 375, Washington, D.C. 20036, all within the time prescribed above.  A copy of the protest must accompany the request for hearing.

                                                                        Richard W. Mark

                                                                        Election Supervisor

cc:        Kathleen A. Roberts

            2015 ESD 58 

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