June 4, 1996
VIA UPS OVERNIGHT
Phillip Rushing
7524 Andrea Avenue
Stockton, CA 95207
Pat Miraglio, Secretary-Treasurer
Teamsters Local Union 439
1531 E. Fremont Street
Stockton, CA 95201
Re: Election Office Case No. P-786-LU439-EOH
Gentlemen:
A protest was filed pursuant to Article XIV, Section 2(b) of the Rules for 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) by Phillip Rushing, a certified delegate for Local Union 439. The protester alleges that the travel arrangements for the delegates made by Pat Miraglio, the secretary-treasurer of Local Union 439, violate the requirements of the Advisory Regarding Convention Expenses (“Advisory”) since the local union proposed to pay for only five nights of hotel accommodations rather than the six required in Section II of the Advisory. Additionally, the protester asserts that Mr. Miraglio’s acknowledg-ment to the Election Office that the local union would pay the delegates’ per diem for six days violates Section II of the Advisory, which requires a seven-day per diem.
This protest was investigated by Election Office Staff Member Kathryn Naylor.
1. Travel Arrangements
The election for delegates and alternate delegates for Local Union 439 was held on
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June 4, 1996
Page 1
April 8, 1996. On April 9, 1996, Mr. Miraglio asked the Segale Travel Agency to make reservations for the cheapest airfares. The following reservations to Philadelphia for all five delegates were made and ticketed on April 9, 1996[1] on America West without Mr. Miraglio or the travel agency consulting with any of the delegates regarding their flight preferences:
1. On Saturday, July 13, 1996, depart Sacramento at
9:06 p.m., with a layover and change of planes in
Las Vegas. On Sunday, July 14, 1996, arrive in Philadelphia at 6:48 a.m.
2. On Friday, July 19, 1996, depart Philadelphia at
9:55 p.m., with a layover and change of planes in
Las Vegas. On Saturday, July 20, 1996, arrive in Sacramento at 3:00 a.m.
The International Union’s Housing Office (“Housing Office”) that is coordinating hotel reservations for delegates and alternate delegates has confirmed that Local Union 439 requested five hotel rooms reserved for six nights,[2] from Saturday, July 13, 1996, with a departure date of Friday, July 19, 1996.
On May 2, 1996, the Election Officer issued an Advisory that sets out in detail the requirements of Article IV, Section 3 of the Rules obligating IBT local unions to pay the expenses of their delegates to the 1996 IBT International Convention. The Advisory notes that the 1996 Convention will officially begin on Monday, July 15, 1996 and conclude on Friday, July 19, 1996. The Advisory specifically provides that a local union will be responsible for hotel costs for six nights over a seven-day period from either Saturday, July 13, 1996 through Friday, July 19, 1996, or Sunday, July 14, 1996 through Saturday, July 20, 1996.
The Advisory envisions that most local unions will make arrangements as far in advance as possible for air travel for its delegates in order to secure the best airfares. In view of the local union’s aim to obtain the cheapest airfares, the fact that Mr. Miraglio did not notify the delegates of the flight arrangements before the local union paid for the tickets does not violate the Rules, although such prior notification and communication may have allowed the delegates to change the local union’s reservations without incurring the penalties for changing advance-fare flights that they face at this point in the process. The flight arrangements made by Local Union 439 are in compliance with the Advisory. The delegates will be arriving in Philadelphia on Sunday,
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July 14, 1996, at 6:48 a.m. In order to ensure that the delegates will have rooms immediately available for their use upon their arrival at the hotel, which will be before the official check-in time of 4:00 p.m., Local Union 439 agreed to pay for the night of Saturday, July 13, 1996. Based on Local Union 439’s hotel reservations, the local union will meet its minimum obligation under Section II of the Advisory to pay for six nights. Thus, the local union has not acted in contravention of the Advisory in its flight or hotel arrangements.
The Election Officer would remind all parties that Section III(B) of the Advisory provides that, “delegates and alternate delegates are not required to travel or utilize travel arrangements provided by the local union.” It further states that, “In no case, however, are the delegates and alternates entitled to reimbursement in an amount greater than the cost that would have been borne by the local union if the delegates or alternates had utilized the means of transportation arranged by the local union.” Therefore, in accordance with these provisions, if the flight arrangements are changed by any of the delegates resulting in any additional charges (penalty for changes and/or difference in airfares), the delegates will be responsible for covering such costs. That is, Local Union 439 will not be obligated to bear any further transportation costs for the delegates to and from Philadelphia. The delegate, however, will be permitted to use their per diem to cover the difference in air fares, provided that the changes in transportation arrangements remain reasonably related to their attendance at the Convention.[3]
2. Hotel Arrangements
On May 30, 1996, one day after filing his protest, the protester informed the investigator that his delegation was unable to confirm whether hotel reservations had been made by Local Union 439. The Election Office has now confirmed that reservations have been made at the Holiday Inn at Independence Mall in Philadelphia for six nights, from Saturday, July 13, 1996, with a departure date of July 19, 1996.
The Election Officer would remind all parties that the Advisory provides that Local
Union 439 is obligated to pay for a minimum of six nights, at the rate for single person occupancy. Accordingly, Local Union 439 must pay the hotel directly or advance money to the delegates so that they may personally pay the hotel bill. However, the delegates will be personally responsible for additional charges for any arrangements to accommodate more than one person, for instance, for spouses or other family members.
3. Per Diem
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June 4, 1996
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The Advisory clearly requires the local union to advance at least $60 per diem for seven days. Moreover, local unions that have inquired regarding the local union’s per diem obligation have been advised that the Election Office will not require delegates and alternate delegates to retain or to submit receipts to the local union in order to document their Convention-related daily expenses.[4] The delegates and alternate delegates do not have to return any of their per diem advance or allowance (a total of $420 for seven days) to the local union. Accordingly, Local Union 439’s plan to pay delegates per diem for six rather than seven days would violate the Advisory.
Accordingly, the protest is GRANTED with respect to the per diem payment and DENIED in all other respects.
To fully comply with her Advisory, the Election Officer orders Local Union 439 to advance per diem for seven days ($420) for each delegate no later than July 7, 1996.
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 & 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 N. Capitol Street, Suite 855, Washington, DC 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
[1]Local Union 439’s Local Union Plan does not require the payment of convention expenses for the two alternate delegates.
[2]The Housing Office states that is has contacted Local Union 439 on numerous occasions since early April 1996 requesting confirmation sheets on behalf of each delegate. On May 30, 1996, a day after this protest was filed, Local Union 439 faxed requests to reserve five rooms.
[3]Arranging for new reservations to travel in the day that would result in a more expensive itinerary, or changing only the date for the return leg from Philadelphia to Sacramento from Friday, July 19, 1996 to Saturday, July 20, 1996, would be deemed changes in transportation arrangements that are reasonably related to attendance at the Convention.
[4]Since the per diem is subject to certain “Federal Individual Income Tax Withholding, Record-keeping and Reporting” requirements, delegates and alternate delegates may nevertheless want to retain receipts in order to comply with their tax obligations.