Protest Decisions

December 12, 1995

VIA UPS OVERNIGHT

Eddie Kornegay

December 12, 1995

Page 1

Eddie Kornegay, Trustee

Teamsters Local Union 743

300 S. Ashland Avenue

Chicago, IL 60607

James P. Hoffa

2593 Hounds Chase

Troy, MI 48098

William T. Hogan, Jr., Secretary-Treasurer

Teamsters Local Union 714

6815 W. Roosevelt Road

Berwyn, IL 60402

Eddie Kornegay

December 12, 1995

Page 1

Re:  Election Office Case No. P-209-IBT-SCE

Gentlemen:

A pre-election protest was filed pursuant to Article XIV, Section 2(b) of the Rules for the 1995-1996 IBT International Union Officer Election (“Rules”) by Eddie Kornegay, Trustee of Local Union 743, against James P. Hoffa and William T. Hogan, Jr., both of whom are candidates for International office on Mr. Hoffa’s slate.  The protester alleges that Mr. Hoffa and Mr. Hogan attended the AFL-CIO Convention in New York City “at union expense, which includes air fare and lodging . . . [and] did so on union time,” and engaged in campaigning there on October 23, 1995, in violation of the Rules.[1]  He contends that the charged parties were not delegates nor did they have “any other legitimate union business at the convention.”

The charged parties respond that they paid for their trips to the AFL-CIO

Convention from their own funds.  Mr. Hoffa states that he took unpaid leave from his job to attend the convention and Mr. Hogan states that he utilized vacation days.

The protest was investigated by Regional Coordinator Bruce Boyens.

Eddie Kornegay

December 12, 1995

Page 1

Article VIII, Section 11(c) of the Rules prohibits the use of union funds “to assist in campaigning.”  The Rules otherwise permit campaigning by IBT members if there is no utilization of union resources and the member is not campaigning during work hours.

The AFL-CIO held its convention in New York City during the week of October 23, 1995.  The protester observed the charged parties distributing flyers on October 23 publicizing a reception in support of their campaign the following day.

When a protester has provided evidence that campaigning has occurred, the Election Officer then seeks information on the use of union funds for relevant expenditures.  In the instant protest, the charged parties provided receipts and time records to indicate that they used unpaid leave and vacation days to attend the convention and that, with the exception of Mr. Hoffa’s plane tickets as described below, no union funds were utilized for their travel.

Mr. Hoffa uses the same travel agency as Joint Council 43.  When arranging for

Mr. Hoffa’s air travel to New York, an agent mistakenly applied money the Joint Council had already spent on an unused ticket to partially pay for Mr. Hoffa’s ticket.  Mr. Hoffa discovered this error, as a result of the Election Office’s request for documents.  He immediately contacted the travel agency to determine the amount of the joint council’s funds that were spent on his ticket and reimbursed the joint council for this amount.  The travel agency provided a statement acknowledging this error.

The Rules, at Article XII, Section 1(b)(3), provide that “[n]o Union funds or other things of value shall be used, directly or indirectly, to promote the candidacy of any individual.”  At Article XII, Section 1(b)(9), the Rules make candidates strictly liable for improper contributions as follows:

Candidates are strictly liable to insure that each contribution received is permitted under the Rules.  Prohibited contributions must be returned promptly.  Within three (3) days of return of any contribution, the candidate or the candidate’s campaign returning the contribution shall provide the Election Officer an affidavit identifying the original source and date of the contribution, the person to whom or entity to which the contribution was returned and the date on which the contribution was returned.

The Election Officer credits Mr. Hoffa’s explanation that he was unaware of the travel agent’s action and finds that the use of the joint council’s credit was simply an error on the agent’s part.   Nevertheless, although ultimately returned, the use of Joint Council 43 funds was improper and a violation of Article XII, Section 1(b)(3) of the Rules.

The Election Officer therefore finds that Mr. Hoffa used union funds for a portion of his airline ticket to travel to attend the AFL-CIO Convention.  In using union funds to engage in campaigning at the AFL-CIO convention, Mr. Hoffa violated the Rules.  There is no evidence that Mr. Hogan utilized any union funds.

Eddie Kornegay

December 12, 1995

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For the reasons set forth above, the protest is GRANTED as to Mr. Hoffa’s limited improper expenditure of union funds and DENIED in all other respects.

When the Election Officer determines that the Rules have been violated, she “may take whatever remedial action is appropriate.”  Article XIV, Section 4.  In this case, Mr. Hoffa’s violation of Article XII, Section 1(b)(3) is mitigated by the fact that upon discovering the error by the travel agency, he immediately reimbursed the joint council in the amount improperly contributed for his air travel to New York.   Thus, an order that Mr. Hoffa immediately comply with the provisions of Article XII, Section 1(b)(9) is appropriate in this case. 

Mr. Hoffa is ordered within two (2) days of the date of this decision to provide the Election Officer with an affidavit identifying the original source and date of the contribution which was returned, the amount of the returned contribution, the person to whom or the entity to which the contribution was returned and the date on which the contribution was returned.

Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within one day of receipt of this letter.  The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Officer in any such appeal.  Requests for a hearing shall be made in writing and shall be served on:

Kenneth Conboy, Esq.

Latham and Watkins

885 Third Avenue, Suite 1000

New York, NY  10022 

Fax (212) 751-4864

Copies of the request for hearing must be served on the parties listed above as well as upon the Election Officer, 400 North Capitol Street, Suite 855, Washington, D.C. 20001, Facsimile (202) 624-3525.  A copy of the protest must accompany the request for a hearing.

Sincerely,

Barbara Zack Quindel

Election Officer

cc:               Kenneth Conboy, Election Appeals Master

Bruce Boyens, Regional Coordinator