October 8, 1998
VIA FIRST CLASS MAIL
Bob Hasegawa
October 8, 1998
Page 1
Bob Hasegawa
3121 16th Avenue S.
Seattle, WA 98144
Jon Rabine, President
Teamsters Joint Council 28
553 John Street
Seattle, WA 98109
General Teamsters Retirees Club
c/o Jon Rabine, President
Teamsters Joint Council 28
553 John Street
Seattle, WA 98109
Arthur Z. Schwartz, Esq.
Kennedy, Schwartz & Cure
113 University Place
New York, NY 10003
Bradley T. Raymond, Esq.
Finkel, Whitefield, Selik,
Raymond, Ferrara & Feldman
32300 Northwestern Highway
Suite 200
Farmington Hills, MI 48334
Mike Gaudio, President
Teamsters Local Union 174
553 John Street
Seattle, WA 98109
Gary M. Tocci, Esq.
Schnader, Harrison, Segal
and Lewis
1600 Market Street
Philadelphia, PA 19103
Hoffa Slate
c/o Patrick J. Szymanski, Esq.
Baptiste & Wilder
1150 Connecticut Avenue, NW
Suite 500
Washington, D.C. 20036
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Tom Leedham Campaign Office
P.O. Box 15877
Washington, D.C. 20003
Bob Hasegawa
October 8, 1998
Page 1
Re: Election Office Case No. PR-242-JC28-PNW
Gentlemen:
Bob Hasegawa
October 8, 1998
Page 1
Bob Hasegawa, secretary-treasurer of Local Union 174 and a candidate for Western Region vice-president, filed a protest pursuant to Article XIV, Section 2(b) of the Rules for the 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) against the United Parcel Service (“UPS”), James P. Hoffa, Jon Rabine and the General Teamsters Retirees Club. Mr. Hoffa is a candidate for general president. Mr. Rabine serves as president of Joint Council 28 and is a candidate for Western Region vice-president opposing Mr. Hasegawa. The General Teamsters Retirees Club (“Club”) is a volunteer organization made up of retired members from Local Unions 66, 117, 174 and 763.
The protester alleged that campaigning occurred at the Club’s annual golf tournament, an event which was supported in part by union and employer funds. Mr. Rabine admits that campaign material supporting the candidacy of Mr. Hoffa was distributed at the registration table and that among the door prizes were two items of Hoffa paraphernalia. He contends, however, that the protest is untimely and denies that any Rules violations occurred. Through his representative, Mr. Hoffa stated that neither he nor his campaign organization had any knowledge of the events referred to in the protest. However, Mr. Hoffa is “prepared to cooperate with the Election Office in effectuating a remedy” in the event that the Election Officer determines that a violation occurred.
The protest was investigated by Regional Coordinator Christine M. Mrak.
The Club has no employees or paid officers. On August 12, 1998, it sponsored a golf tournament at the Maplewood Municipal Golf Course in Renton, Washington. The tournament was organized to fund scholarships for deserving children and grandchildren of active and retired members of Local Unions 66, 117, 174 and 763. Contributions were solicited by the Club from local unions within Joint Council 28 as well as various employers and retirees. For the ticket price of $45, a participant received a round of golf, lunch and a chance to win a door prize. All expenses associated with the fundraising event were paid by the Club.
Mr. Rabine stated that he left a box of campaign paraphernalia at the registration table upon his arrival and admits that the material was distributed. Rick Hicks, a member of Local Union 174, donated two campaign hats for the door prize raffle. The campaign items provided by Mr. Rabine included adhesive bumper stickers and antenna balls, all supporting the candidacy of Mr. Hoffa. The hats supplied by Mr. Hicks displayed the campaign slogan “Another UPSer for Hoffa.”
The protest was not filed until five days after the event. The Rules, at Article XIV, Section 2(b), state, "Except as otherwise provided . . . all preelection protests . . . must be filed within two (2) working days of the day the protester becomes aware or reasonably should have become aware of the action protested or such protests shall be waived." The requirement to promptly file protests is an important part of the election process. The short time limits were designed to ensure that alleged violations of the Rules would be quickly brought to the attention of the Election Officer in order to afford the greatest opportunity for applying an effective remedy in the event a violation is found. Nevertheless, the Election Officer has not treated time limits as an absolute jurisdictional requirement, but rather as a prudential restriction. Wsol,
Bob Hasegawa
October 8, 1998
Page 1
P-095-IBT-CHI (September 20, 1995), aff’d, 95 - Elec. App. - 17 (KC) (October 10, 1995). The Election Officer has determined that the allegations made by this protest must be resolved on the merits.
The Rules at Article XII (b) (1), as modified by the 1996 IBT International Officer Rerun Election Plan (“Rerun Plan”), provide that only active union members, their immediate families and independent committees may make campaign contributions in the rerun election cycle. The Rules define “campaign contributions” to include “any direct or indirect contribution of money or other thing of value where the purpose, object or foreseeable effect of that contribution is to influence the election of a candidate.” Rules, Definitions, 5. Such contributions can include any goods, compensated services or any material things of value. The Election Officer has very strictly construed the phrase “any . . . other thing of value” in interpreting the Rules relating to improper campaign contributions. McNamara, P-876-LU107-PNJ (September 18, 1996), aff’d, 96 - Elec. App. - 241 (September 30, 1996).
The Rules were violated because the paraphernalia supplied by Mr. Rabine and the hats provided by Mr. Hicks were distributed and raffled at an event which was sponsored with funds prohibited by the Rules and the Rerun Plan. McCormick, PR-012-LU705-NCE (March 4, 1998) (Decision on Remand). There is no dispute that the golf tournament was supported with contributions from various prohibited sources including local unions and employers. There is evidence that the Club also received funds from permissible sources. However, no system was in place to segregated the prohibited funds. In re Gully, 91 - Elec. App. - 158 (SA) (June 12, 1991), affirming Sargent, P-249-LU283-MGN (May 21, 1991). Rather, it appears that the campaign activity was a completely unexpected and unforeseen consequence of the improper conduct of
Mr. Rabine and Mr. Hicks.
The Election Officer’s representative did not contact UPS and there is no evidence that UPS made an improper contribution to Mr. Hoffa. There is further no evidence that Mr. Hoffa or his national campaign organization had any knowledge of the activities of Mr. Rabine and Mr. Hicks. However, Mr. Hoffa is strictly liable for the value of the improper contribution under the Rules at Article XII, Section (1)(b)(9).
For the foregoing reasons, the protest is GRANTED.
When the Election Officer determines that the Rules have been violated, he “may take whatever remedial action is appropriate.” Article XIV, Section 4. In fashioning the appropriate remedy, the Election Officer views the nature and seriousness of the violation, as well as its potential for interfering with the election process.
Based upon the violations found, the Election Officer orders the following remedies by the Club, Mr. Hoffa and his campaign organization, Mr. Rabine and Mr. Hicks:
Bob Hasegawa
October 8, 1998
Page 1
- The Club, Mr. Hoffa and his campaign organization, Mr. Rabine and Mr. Hicks shall immediately cease and desist from receiving any campaign contributions from sources prohibited in the Rules during the rerun election cycle, including any direct or indirect contribution of any goods, compensated services or any material things of value, where the purpose, object or foreseeable effect of that contribution is to influence the election of a candidate.
- By October 16, 1998, Mr. Rabine shall post the attached notice on the bulletin board at Joint Council 28 and at the offices of Local Unions 66, 117, 174 and 763.
- By October 19, 1998, Mr. Rabine shall submit an affidavit to the Election Officer detailing his compliance with this order including a list of the locations where the notice is posted and who posted the notice.
An order of the Election Officer, unless otherwise stayed, takes immediate effect against a party found to be in violation of the Rules. In re Lopez, 96 - Elec. App. - 73 (KC)
(February 13, 1996).
Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within one (1) 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, 444 North Capitol Street, NW, Suite 445, Washington, DC 20001, Facsimile (202) 624-3525. A copy of the protest must accompany the request for a hearing.
Sincerely,
Michael G. Cherkasky
Election Officer
MGC:chh
cc: Kenneth Conboy, Election Appeals Master
Christine M. Mrak, Election Officer Representative
NOTICE
TO ALL IBT MEMBERS
OF JOINT COUNCIL 8 AND
LOCAL UNIONS 66, 117, 174 and 763
The IBT Election Officer has determined that myself and Rick Hicks, a member of Local Union 174, violated the Election Rules by campaigning at an event sponsored in part by local union and employer funds. The Election Officer has further ruled that my and that of Mr. Hicks was sufficiently serious as to potentially cause an adverse effect on the integrity of the rerun election process. No IBT member may engage in campaign activity that is supported, in whole or in part, with union or employer funds.
Date: ___________ By: ____________________________
Jon Rabine, President
Joint Council 28
This is an official notice that must remain posted until December 3, 1998, and must not be defaced or altered in any manner or be covered with any other material.
Approved by Michael G. Cherkasky, IBT Election Officer