November 13, 1996
VIA UPS OVERNIGHT
Hugh Thompson
November 13, 1996
Page 1
Hugh Thompson
International Brotherhood of Teamsters
25 Louisiana Avenue, N.W.
Washington, DC 20001
Dennis Speaks, Secretary-Treasurer
Teamsters Local Union 41
4501 Van Brunt Boulevard
Kansas City, MO 64130
Nancy Stephens
Teamsters Joint Council 56
4501 Van Brunt Boulevard
Kansas City, MO 64130
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Nathaniel K. Charny
Cohen, Weiss & Simon
330 W. 42nd Street
New York, NY 10036
Bradley T. Raymond
Finkel, Whitefield, Selik, Raymond,
Ferrara & Feldman, P.C.
32300 Northwestern Highway, Suite 200
Farmington Hills, MI 48334
Hugh Thompson
November 13, 1996
Page 1
Re: Election Office Case No. P-1193-LU41-MOI
Gentlemen:
Hugh Thompson, a member of Local Union 600, filed a pre-election protest pursuant to Article XIV, Section 2(b) of the Rules for the 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) against Local Union 41, Local Union 41 Secretary-Treasurer Dennis Speaks, Joint Council 56 secretary Nancy Stephens, Phil Young, president of Local Union 41 and a candidate for International vice president on the Jim Hoffa-No Dues Increase-25 & Out Slate (“Hoffa slate”), James P. Hoffa, a candidate for general president, and the Hoffa campaign. The protester alleges that Local Union 41 “sold” its telephone system at
a discounted rate of no more than $100 to the “Phil Young Support Team” (“Young campaign”), and that this telephone system is now being utilized for office and phone banking at the Hoffa/Young campaign headquarters in Harrisonville, Missouri, representing a prohibited union contribution, under the Rules.
Hugh Thompson
November 13, 1996
Page 1
Local Union 41 denies that it sold its telephone system to the Phil Young Support Team. It further denies that the telephone system is used for office or phone banking by the Hoffa/Young campaign.
This protest was investigated by Adjunct Regional Coordinator William O. Eisler.
The protester bases his information on the statements of Richard Hall, a supporter of
Mr. Carey, who told the investigator that he had heard from unidentified IBT members with caller identification on their telephones that they had received calls from the Young campaign in Harrisonville, Missouri. George Young and Paul Heiman, members of Local Union 41, told the investigator that Local Union 41 had sold its telephone system to Ms. Stevens and
Mr. Speaks, and that Ms. Stevens is the treasurer of the Young campaign. George Young and Mr. Heiman had no information that the telephones being used by the Phil Young campaign were those allegedly purchased by Ms. Stevens or Mr. Speaks.
The investigation revealed that in 1989, Local Union 41 installed an AT&T Spirit telephone system. After this system was installed, the local union purchased an answering machine for incoming and outgoing messages for use when the office was closed.
In January 1996, the local union purchased a new telephone system with up-to-date technologies for approximately $28,000. With the new telephone system, it was no longer necessary to have a telephone operator and a back-up telephone operator at the local union office. As part of the purchase of the new telephone system, the AT&T representative put the local union in contact with a potential buyer for the old telephone system. The telephone system was purchased by Phoneexpress in Fairfield, New Jersey for $1,895. The local union provided documentation to support this. In addition, Phoneexpress confirmed the sale.
When the new telephone system was installed, the local union also no longer needed the two telephone answering machines purchased in 1989. Phoneexpress was not interested in purchasing the answering machines. On February 8, 1996, the local union posted a notice to the membership offering the sale of the answering machines, with minimum bids beginning at $75 per machine. Bids for the machines were solicited at the March general membership meeting. Three bids were received, but only two were for $75. Ms. Stevens and Mr. Speaks each purchased a machine for personal use on their home telephones. There is no evidence that these machines or any of the prior Local Union 41 telephone equipment is being used by Phil Young’s campaign.
The investigation further revealed that the Phil Young Support Team has conducted phone bank operations out of the Asbestos Workers and Pipe Fitters offices during evening hours when those offices are otherwise closed. Although not raised in the protest, the Phil Young Support Team has provided documentation showing that they are paying fair market value for the use of these facilities.
Accordingly, the protest is DENIED.
Hugh Thompson
November 13, 1996
Page 1
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
William O. Eisler, Adjunct Regional Coordinator