IN RE: HOFFA UNITY SLATE,
Protest Decision 2001 EAD 529
Issued: October 29, 2001
OEA Case Nos. PR101111WE
Douglas Henderson, a member of Local 760 and a supporter of the Hoffa Unity slate ("Hoffa slate"), filed a pre-election protest pursuant to Article XIII, Section 2(b) of the Rules for the 2000-2001 IBT International Union Delegate and Officer Election ("Rules") against the Tom Leedham Rank and File Power slate ("Leedham slate"), Leedham slate candidates Bob Hasegawa and Ashley McNeely, and Teamsters for a Democratic Union ("TDU"). The protest alleges violations of the Rules' campaign finance provisions.
Election Administrator representative Dolores Hall investigated the protest.
Findings of Fact and Analysis
1. Henderson's allegations center on a fundraising event held on October 7, 2001. He alleges that the event, held to benefit the Leedham slate, violated the Rules in that a) the flier publicizing the event was distributed to Teamster members and non-members and did not contain a "disclaimer" advising recipients that only members could contribute to the Leedham slate, b) the event was held at the Catholic Seaman's Club in Seattle which was rented at less than market rate, and c) non-members were allowed to participate in a raffle and services were improperly accepted from non-members.
Candidates Hasegawa and McNeely state they were asked to speak at the rally, and did, but say they had no part in staging the rally.
On October 7, 2001, a group of women representing the Northwest Teamster Women's Action Team held a fund-raising benefit for the Tom Leedham campaign. Contrary to Henderson's allegation, there is no evidence that TDU was a sponsor of the event or that it played any role in staging it.
The event was held at the Catholic Seamen's Club in Seattle from 2:00 to 6:00 p.m., with an advertised program at 4:00 p.m. Father Tony Haycock, who operates the hall, rented it to the group for $200. Father Haycock states that there is no standard fee for rental of the hall and that it is not usually rented out for such events. Both Paula King and Lorene Scheer, who assisted with staging the event, talked to Father Haycock and both stated he advised them that the rent for the hall was $200. Scheer attempted to negotiate a lower rental, but said that Father Haycock was firm in the rental price.
Henderson is employed by Joint Council 28, which frequently uses the Seamen's Club for luncheons. He said the Club does not charge rent, but rather requests donations. Henderson stated that, on such occasions, the Joint Council has donated $12.50 per person solely for the use of the Club, since the Joint Council provides the food.
Kirk Stephenson, Co-Chairman of the Evergreen Chapter of TDU, stated that organization has held five or six meeting at the Seamen's Club and Haycock usually charges $1 per person as rent, but TDU generally adds to that figure as a donation.
In light of the above, we conclude that the rent paid for the Club was not less than a fair market rate. The Club made no special provisions for the event, nor did it offer any special discount to its organizers. We accordingly DENY the protest allegation to the contrary.
2. Henderson also protests the flier advertising the fund-raising event, noting that it did not contain a "disclaimer" advising recipients that only members of the Teamsters may contribute to the Leedham campaign and that the flyer was distributed to non-Teamsters.
The event flier did not specifically solicit contributions. It did, however, invite recipients to "an afternoon of eats, drinks, camaraderie, music and a raffle with an amazing collection of remarkable prizes, all to benefit the campaign of Tom Leedham, Candidate for General President, International Brotherhood of Teamsters." Both members and non-members attended the event, and its sponsors obviously planned for this, since a table was set up at the door and people entering registered either as a Teamster member or non-member. At that time, they were asked for a donation to either the campaign (Teamsters) or its Legal and Accounting Fund (non-members). Separate records were kept for each donation and each category of donation, the forms being obtained from the Election Administrator's website. Those individuals making donations became eligible to participate in a raffle. Since the recordkeeping for campaign contributions from members and legal and accounting contributions from non-members conformed to the requirements of Article XI of the Rules, and since disclaimers of the type referred to by the protestor are recommended but not required by Article XI, Section 1(c) of the Rules, we accordingly DENY this protest allegation.
3. Henderson next alleges that the event's sponsors improperly accepted services from non-members. Thus, the protestor notes that non-IBT member Michael Laslett provided the entertainment for the event and that attendees wrapped Leedham campaign material around debate videotapes. Laslett and the attendees who performed such services were not paid for doing so.
Laslett is a member of the Labor Chorus, a group of individuals from various labor unions, which sings at various functions around Seattle without pay. At the Catholic Seaman's Club event, he played his guitar and sang as part of the entertainment. Laslett, however, is not regularly employed as a musician or entertainer. Thus, his freely provided entertainment was permissible volunteer activity under Article XI, Section 1(b)(10) of the Rules. The same is true for those who prepared campaign literature.
During the course of the investigation, however, we learned that a small jazz ensemble also provided entertainment for the event. The group was led by Marc Smason and contained two other musicians and a vocalist. Smason's group performed for an hour and a half. Smason is a union musician and, although he teaches music and earns money from other jobs, he considers playing music to be his main occupation. Smason was asked to play at the event free of charge; however, after discussing it with his band members, they decided to play for food and gas money. They were paid $60 as reimbursement for gas. Smason stated he would normally charge between $500 and $600 for the same number of musicians playing the same length of time.
This expenses-only "gig" was a prohibited contribution to the Leedham slate under the Rules. Non-members may volunteer personal services to a campaign without making a contribution to the campaign only if they are not compensated by anyone for such services and the services provided are not within the individual's regular business, work or income-producing activity. See Rules, Definitions, Section 5(h) and Article XI, Section 1(b)(10); Advisory on Campaign Contributions and Disclosure (September 27, 2000). The Smason group regularly performs music for money and accordingly was prohibited from performing for expenses only at the Seaman's event.
We also learned during the course of the investigation that at least two of the individuals listed on the flier as contacts for information regarding the event were not Teamsters. These individuals assisted with the staging and conduct of the event. However, in doing so neither provided services of the type they usually perform for money, since one is a hospital respiratory therapist and the other is an optical technician. Their volunteer services were thus permissible under Article XI, Section 1(b)(10) of the Rules.
For the reasons stated above, we GRANT this protest allegation insofar as the contribution of the Smason group is concerned, and DENY all other allegations.
Remedy
When the Election Administrator determines that the Rules have been violated, he "may take whatever remedial action is appropriate." Article XIII, Section 4. In fashioning the appropriate remedy, the Election Administrator views the nature and seriousness of the violation as well as its potential for interfering with the election process.
Within five business days of receipt of this decision, the Leedham slate must pay the Smason group $550 from its campaign account. An affidavit of compliance shall be filed by November 4, 2001.
We will defer for the present any determination of the question of whether improper contribution here may have affected the ongoing International officer election so as to warrant relief under Article XIII, Section 4(t) or (u), either by itself or in combination with any other Rules violations.
An order of the Election Administrator, unless otherwise stayed, takes immediate effect against a party found to be in violation of the Rules. Lopez, 96 EAM 73 (February 13, 1996).
Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within two (2) working days of receipt of this decision. The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Administrator in any such appeal. Requests for a hearing shall be made in writing, shall specify the basis for the appeal, and shall be served upon:
Kenneth Conboy
Election Appeals Master
Latham & Watkins
Suite 1000
885 Third Avenue
New York, New York 10022
Fax: 212-751-4864
Copies of the request for hearing must be served upon all other parties, as well as upon the Election Administrator for the International Brotherhood of Teamsters, 727 15th Street NW, Tenth Floor, Washington, DC 20005 (facsimile: 202-454-1501), all within the time prescribed above. A copy of the protest must accompany the request for hearing.
William A. Wertheimer, Jr.
William A. Wertheimer, Jr.
Election Administrator
cc: Kenneth Conboy
2001 EAD 529
DISTRIBUTION LIST VIA UPS NEXT DAY AIR:
Patrick Szymanski
IBT General Counsel
25 Louisiana Ave. NW
Washington, DC 20001
Bradley T. Raymond
Finkel, Whitefield, Selik,
Raymond, Ferrara & Feldman
32300 Northwestern Highway
Suite 200
Farmington Hills, MI 48334
J. Douglas Korney
Korney & Heldt
30700 Telegraph Road
Suite 1551
Bingham Farms, MI 48025
Barbara Harvey
Penobscot Building
Suite 3060
645 Griswold
Detroit, MI 48226
Betty Grdina
Yablonski, Both & Edelman
Suite 800
1140 Connecticut Ave. NW
Washington, D.C. 20036
Tom Leedham c/o Stefan Ostrach
110 Mayfair
Eugene, OR 97404
Todd Thompson
209 Pennsylvania Ave., SE
Washington, DC 20003
Matt Ginsburg
30 Third Avenue
Brooklyn, NY 11271
James L. Hicks, Jr., P.C.
Suite 1100
2777 N. Stemmons Freeway
Dallas, TX 75207
Teamsters for a Democratic Union
7437 Michigan Avenue
Detroit, MI 48210
IBT Local 174
553 John Street
Seattle, WA 98109
Joint Council 28
553 John Street
Seattle, WA 98109
The Catholic Seaman's Club
2330 1st Avenue
Seattle, WA 98121
Bob Hasegawa
3121 16th Ave. South
Seattle, WA 98144
Ashley McNeely
P.O. Box 23224
Honolulu, HI 96823
Douglas Henderson
8639 11th Ave. SW
Seattle, WA 98106
Dolores Hall
1000 Belmont Place
Metairie, LA 70001