January 8, 1997
VIA UPS OVERNIGHT
James P. Hoffa
January 8, 1997
Page 1
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Deborah King, CEO
Hospital Workers Local Union 1199
330 W. 42nd Street, 8th Floor
New York, NY 10036
Nathaniel K. Charny
Cohen, Weiss & Simon
330 W. 42nd Street
New York, NY 10036
Bradley T. Raymond
Finkel, Whitefield, Selik, Raymond,
Ferrara & Feldman
32300 Northwestern Highway, Suite 200
Farmington Hills, MI 48334
James P. Hoffa
January 8, 1997
Page 1
Re: Election Office Case No. P-1321-LU1199-NYC
Gentlepersons:
James P. Hoffa, a member of Local Union 614 and a candidate for general president, 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”) alleging that National Health & Human Service Employees Union, Local 1199 (“Local 1199”), ran a Carey campaign phone bank from its telemarketing center and is paying employees $8 per hour to do this work.
Mr. Hoffa questions whether Local 1199 charged the Carey campaign a commercially-reasonable rate. The Election Officer deferred the protest for post-election review pursuant to her authority under Article XIV, Section 2(f)(2) of the Rules.
Local 1199 states that it has recently started making its communications facility and employees available to outside clients. Local 1199 states that the Carey campaign was charged $26 per phone bank hour, which is commensurate with the rate it charges other clients.
New York City Protest Coordinator Barbara C. Deinhardt investigated this protest.
James P. Hoffa
January 8, 1997
Page 1
The investigation revealed that Local 1199 charged the Carey campaign $26 per calling hour for the use of its phone bank. Local 1199 supplied billing documentation to show that this is commensurate with the rate charged to prior parties using the facility for phone banking. This rate includes the hourly rate Local 1199 pays its employees who conduct the phone banking.
Article XII, Section 1 (b)(1) of the Rules states, in relevant part:
No labor organization, including but not limited to the International Union, Local Unions and all other subordinate Union bodies, whether or not an employer, may contribute, or shall be permitted to contribute, directly or indirectly, anything of value, where the purpose, object or foreseeable effect of the contribution is to influence, positively or negatively, the election of a candidate, except as permitted by subparagraphs (2) and (3) below.
. . . .
(3) No Union funds or other things of value shall be used, directly or indirectly, to promote the candidacy of any individual. Union funds, facilities, equipment, stationery, personnel, etc., may not be used to assist in campaigns unless the Union is compensated at fair market value for such assistance, and unless all candidates are provided equal access to such assistance and are advised in advance, in writing of the availability of such assistance.
The Election Officer finds that Local 1199 was “compensated at fair market value” for its assistance to the Carey campaign.
For the foregoing reasons, the protest is DENIED.
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
James P. Hoffa
January 8, 1997
Page 1
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
Barbara C. Deinhardt, New York City Protest Coordinator