207 U.S. App. D.C. 189; 645 F.2d 1114, *;
1981 U.S.
App. LEXIS 14763, **; 106 L.R.R.M. 2942
EDWARD SADLOWSKI, JR., ET. AL. v. UNITED STEELWORKERS OF
AMERICA AFL-CIO-CLC, APPELLANT F. RAY MARSHALL, SECRETARY OF LABOR; EDWARD
SADLOWSKI, JR., ET AL. APPELLANTS v. UNITED STEELWORKERS OF AMERICA,
AFL-CIO-CLC, ET AL.
Nos. 81-1138, 81-1174
UNITED STATES COURT OF APPEALS, DISTRICT OF COLUMBIA CIRCUIT
207 U.S. App. D.C. 189; 645 F.2d 1114; 1981 U.S. App. LEXIS
14763; 106 L.R.R.M. 2942; 91 Lab. Cas. (CCH) P12,696
March 3, 1981, Argued
March 31, 1981, Decided
PRIOR HISTORY: [**1]
Appeal from the United States
District Court for the District of Columbia (D.C. Civil Action No. 79-02953).
CORE TERMS: candidate, outsider, election, financial
support, supporter, regulation, First Amendment, free speech, campaign
contributions, labor organization, campaign, non-member, nonmember, legal
proceedings, indirect, finance, lawsuit, deems appropriate, sentence, legal
rights, contributed, volunteered, insurgent, extract, contest, solicit, freedom
of speech, summary judgment, reporting, incumbent
COUNSEL: Michael Gottesman, Washington, D. C.,
with whom Robert M. Weinberg, Gary L. Sasso and David M. Sieberman, Washington,
D. C., were on brief, for United Steelworkers of America, AFL-CIO-CLC appellant
in No. 81-1138 and appellee in No. 81-1174.
Joseph A. Yablonski,
Washington, D. C., with whom Joseph L. Rauh, Jr., John Silard and Daniel B.
Edelman, Washington, D. C., were on brief for Sadlowski, Jr., et al., appellees
in No. 81-1138 and cross/appellants in No. 81-1174. Charles R. Both, Washington,
D. C., also entered an appearance for Sadlowski, Jr., et al., appellees in No.
81-1138 and cross/appellants in No. 81-1174.
Jason Kogan, Asst. U. S.
Atty., Washington, D. C., with whom Charles F. C. Ruff, U. S. Atty. and Kenneth
M. Raisler, Asst. U. S. Atty., Washington, D. C., were on motion for summary
affirmance.
JUDGES: Before
MacKINNON and ROBB, Circuit Judges and AUBREY E. ROBINSON, Jr., n* United States
District Judge for the District of Columbia.
* Sitting by designation
pursuant to 28 U.S.C. § 292(a).
Opinion for the Court filed by Circuit
Judge MacKINNON. [**2]
OPINIONBY: MacKINNON
OPINION: [*1115]
The appellees, Sadlowski, Jr., et al.,
attack Article V, Section 27 of the Constitution of the United Steelworkers of
America (Union) which prohibits a candidate for Union office from receiving any
campaign contributions from persons who are not members of the Union. In the
hotly contested election for International President of the United Steelworkers
of America in 1977, Edward Sadlowski, Jr., the defeated candidate, received
substantial financial support from nonmembers and made a very substantial run
against the candidate supported by the incumbent leadership. Shortly thereafter
the Union amended its Constitution in Article V, Section 27 to prohibit
absolutely any outside financial contributions. Sadlowski and others then
brought this action to invalidate the "outsider" rule, claiming that the rule
violated their rights under the First Amendment, the National Labor Relations
Act (NLRA), 29
U.S.C. §§ 151-168, and the Labor-Management Reporting and Disclosure Act of
1959 (LMRDA), 29
U.S.C. §§ 401-531. On cross-motions for summary judgment the district court
held the outsider rule violated rights of union members protected by the right
to [**3] sue provision in the Bill of Rights for
Union members included in the LMRDA, 29
U.S.C. § 411(a)(4), and declared Section 27 invalid in its entirety. The
Union filed this appeal and, since the next election for international officers
is scheduled for May 28, 1981, the case has been given expedited consideration.
We affirm, with one minor exception, the order declaring Article V, Section 27
invalid and enjoining the Union from enforcing it.
I. BACKGROUND
In the 1977 election for International President of the United
Steelworkers of America which has some 1.3 million members Edward Sadlowski,
Jr., opposed Lloyd McBride in a heated campaign to succeed the retiring I. W.
Abel. McBride enjoyed the support of the Union's incumbent leadership; Sadlowski
was the insurgent challenger. [*1116] n1
Sadlowski received substantial campaign contributions from sources outside the
Union, and McBride received most of his financial support from the staff of the
Union.
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- - - - - - - - - - -
n1. Sadlowski was the Director of District 31, the
Union's largest. Although he was declared the loser in the 1973 election for
district director, the election was invalidated. He won the Department of
Labor-supervised rerun by a substantial majority.
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Sadlowski received 249,281 votes to
McBride's 328,861 and the other members of his insurgent slate were also
defeated. He contested the validity of the election, but the Secretary of Labor
refused to initiate legal proceedings to overturn the announced result, and a
legal challenge to the Secretary's refusal failed. See Sadlowski
v. Marshall, 464 F. Supp. 858 (D.D.C.), aff'd mem., No. 79-1461
(D.C.Cir.1979), cert. denied, 447
U.S. 905, 100 S. Ct. 2987, 64 L. Ed. 2d 854 (1980).
The next
biennial convention of the Union in 1978 enacted Article V, Section 27 (set
forth as an Appendix to this opinion) as an amendment to the Union Constitution.
In addition to imposing a blanket prohibition on campaign contributions by
persons other than union members (with an exception for volunteered time),
Section 27 empowered the International Executive Board to promulgate
implementing regulations and created the Campaign Contribution Administrative
Committee "to administer and enforce" the outsider rule. The rule represents the
first attempt by an American labor union to so restrict financial support for
candidates for union office. n2
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-Footnotes- - - - - - - - - - - - - - - - - -
n2. Note, Restrictions on
"Outsider" Participation in Union Politics, 55 Chi.-Kent L.Rev. 769, 769 (1979).
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- - - - - - - [**5]
Sadlowski and others
n3 brought suit in late 1979 to challenge the validity of the outsider rule. The
Union and the Secretary of Labor were named as defendants. Plaintiffs complained
that the outsider rule violated the First Amendment rights of both members and
nonmembers; the National Labor Relations Act since it must be read consonant
with the First Amendment; the right to sue provision of the LMRDA; and section
401(g) of the LMRDA, 29
U.S.C. § 481(g), which prohibits candidates for union office from receiving
campaign contributions from employers or union funds. After various motions to
dismiss and for summary judgment were filed and argued, the district court
granted plaintiffs' motion for summary judgment on their right to sue claim and
the Secretary's motion to dismiss the case as to him for lack of jurisdiction.
Plaintiffs' remaining motions were denied and the Union's remaining
countermotions were granted. The Union and the plaintiffs have appealed those
parts of the district court's order that were adverse to them.
-
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n3. The other plaintiffs were Joseph Samargia, a potential candidate for
Director of District 33; Edward Sadlowski, Sr., a retired union member who
supported his son's candidacies in prior elections; Leonard S. Rubenstein, an
outside contributor to Sadlowski's 1977 campaign for International President;
and James Miller, a Massachusetts lawyer who had been active in the prior
campaign. The district court found that Sadlowski, Jr., and Samargia "are
eligible to be and may be candidates for (Union) offices which are subject to
(the outsider rule)," Sadlowski
v. United Steelworkers of America, 507 F. Supp. at 623 (D.D.C.1981)
(findings of fact and conclusions of law); App. at 53, and concluded that they
"have "standing' to challenge (the outsider rule)." Id. at 56.
Inasmuch
as our disposition of this case requires us only to consider the impact of the
outsider rule on protected rights of union members, we are concerned only with
the interests of Sadlowski, Jr., and Samargia. The Union has not challenged
their standing. We agree with the district court that as potential candidates
(or supporters of potential candidates), they have standing to attack the facial
validity of the outsider rule. Even if Sadlowski and Samargia were not
ultimately candidates they would still have standing since their decision not to
run may have resulted from the outsider rule's limitation on their ability to
raise money. See Plaintiff's Reply to Defendant's Statement of Genuine Issues at
43, Plaintiff's Brief (app.).
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-End Footnotes- - - - - - - - - - - - - - - - - [**6]
II. ANALYSIS
A. The Right to Sue
The district court held the outsider rule violated section 101(a)(4) of
the LMRDA, 29
U.S.C. § 411(a)(4), the so-called [*1117]
right to sue provision. The outsider rule attempts to accomplish its purpose of
outlawing outside campaign contributions in a single sentence, which provides:
No candidate (including a prospective candidate) for any position
set forth in Article IV, Section 1, ( n4 ) and supporter of a candidate may
solicit or accept financial support, or any other direct or indirect support
of any kind (except an individual's own volunteered personal time) from any
nonmember.
4. These positions are International President,
International Secretary, International Treasurer, International Vice President
(Administration), International Vice President (Human Affairs), one District
Director for each District, and a National Director for Canada. Union Const.
art. IV, § 1.
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- - - - - - - - - - - - - - -
The right to sue provision, found in the
Bill of Rights for Union Members n5 section of the LMRDA, states:
- - - - - - - - - - - - - - - - - -Footnotes- - - - - - - - - - - - - - -
- - -
n5. Labor's first Bill of Rights was proposed in the Hartley
Bill, H.R.3020, 80th Cong. It followed the testimony of Former Governor Harold
E. Stassen on the Labor Management Relations Bill, Legislative History
Labor-Management Relations Bill 3844 (1947). Ten provisions were embodied in
Section 8(b) of the Hartley Bill and were termed "the American working man's
Bill of Rights." H.R.Rep.No.245, 80th Cong., 1st Sess. 28 (1947). For
discussion of said Bill of Rights in Congress, see 93 Cong.Rec. 3669 (1947).
After the Hartley Bill reached the Senate some of the provisions were dropped
but most were separated and placed elsewhere in the Act.
- - -
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[**7]
No labor organization shall limit the right of any member
thereof to institute an action in any court, or in a proceeding before any
administrative agency ... or the right of any member of a labor organization
to appear as a witness in any judicial, administrative, or legislative
proceeding, or to petition any legislature or to communicate with any
legislator ....
29
U.S.C. § 411(a)(4).
We have no difficulty in ruling that the
outsider rule on its face violates this right to sue provision. The language
of the rule prohibiting candidates from receiving any financial support is
all-encompassing and absolute. It prohibits the solicitation or acceptance of
"financial support, or any other direct or indirect support of any kind" from
a nonmember, except for time volunteered by an individual. This blanket
prohibition, inter alia, would stop a candidate from using outside money to
pay for a lawyer's services, from accepting the services of a lawyer for a
reduced rate, or from accepting the donated services of a lawyer if the
lawyer's typist, secretary or other helper contributed to the product. One
need look no further than the 1977 election for International President to
[**8] see the crucial role that a lawyer's
advice and other services play in an insurgent's quest for office against
candidates supported by entrenched incumbents. Prior to the election Sadlowski
filed several lawsuits and defended others. He also filed suits after the
election. This background strongly indicates that restricting a member's right
to sue was one of the Union's purposes in prohibiting outside financial
support.
The Union claims that a construction of the outsider rule by
the Campaign Contribution Administrative Committee (Administrative Committee)
demonstrates the outsider rule does not affect the rights protected by section
101(a)(4). Shortly after plaintiffs filed this lawsuit the Union's lawyer
requested the Administrative Committee to issue an advisory opinion concerning
the impact of the outsider rule on the right to sue. The Committee cast the
question before it as
whether direct or indirect support by nonmembers to finance a
lawsuit asserting candidates' legal rights in connection with elections
constitutes support for the purpose of influencing an
election.
Union's Brief at A-3 (emphasis added). The
Committee concluded that the outsider rule did [**9] not prohibit contributions to finance litigation,
stating:
This limitation on candidacy support cannot be interpreted so
broadly. An intention to limit one's access to the judicial system, a
province which is so fundamental to the structure of government, cannot be
inferred. It would have to be established by clear and convincing
expressions [*1118] of intent. This is not
the case here.
Id. at A-4. We have difficulty accepting
this formulation of the issue or this construction of the expansive
prohibition stated in the outsider rule. n6 We need not determine whether this
construction saves the rule, however, because the Administrative Committee
later confused the matter in an attempt to explain the limits of the opinion
and in responding to a supplemental question. The opinion continued,
- - - - - - - - - - - - - - - - - -Footnotes- - - - - - - - - -
- - - - - - - -
n6. The district court found that the " "advisory'
opinion conflicts with the clear language of the rule and its implementing
regulations." App. at 55.
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Footnotes- - - - - - - - - - - - - - - - -
This opinion is, of course, confined to services [**10] which are in fact legal services customarily
performed by lawyers. The Committee recognizes the possibility that any
ruling which it makes in general terms and in response to a broad inquiry
may be misconstrued or distorted in an attempt to rationalize political
activities as "legal services." It will deal with those questions whenever
they arise on a case-by-case basis.The union, in its request for an advisory
opinion, has asked the Committee to rule on two supplemental questions.The
first is whether a different situation from that discussed above is
presented "where the lawsuit is not a bona fide attempt to secure an
adjudication of legal rights, but, rather, is motivated solely by a desire
to promote a candidate's political campaign."We make no ruling on this
variation of the central question. Such hypothesis goes beyond what can be
responsibly covered by generalization. The Committee would be exceedingly
reluctant about putting its own interpretation on the quality of good or bad
faith that attends an individual's asserting his or her legal rights in a
court proceeding. We will, however, look at such a case on its facts if it
arises.
Id. [**11] at
A-5.
The district court was greatly concerned by the question, left
open by the advisory opinion, of "whether member-candidates can be
disqualified or disciplined for ... retaining counsel (with outside financial
support) and bringing suit which the Committee or the union later determines
was not bona fide." App. at 55. We are vexed as well, but a subsequent
regulation promulgated by the International Executive Board and adopted by the
Union at its 1980 convention as a part of the International Union Elections
Manual causes us even greater concern. The relevant provision states:
B. Contributions for Legal and Accounting ServicesSection 27
does not prohibit the candidate's use of financial support or services from
non-members to pay fees for legal or accounting services performed in
assuring compliance with applicable election laws or in securing, defending,
or clarifying legal rights of candidates. Contributions of this kind are
permitted only to the extent that they are confined to these permissible
objects. Activities which are designed to extract political gain from legal
proceedings are subject to the support limitations of Section
27.
Union Motion [**12]
for Partial Stay at Appendix C-4 (Feb. 5, 1981) (emphasis added).
Under this construction a candidate for union office would apparently
be allowed to receive volunteered or reduced-rate legal services and to accept
and solicit from nonmembers contributions to finance "legal ... services
performed in assuring compliance with applicable election laws or in securing,
defending, or clarifying legal rights of candidates." This categorization may
or may not include all of the legitimate legal proceedings that a candidate
for office may instigate or defend. Even if it does, the candidate cannot
accept or solicit campaign contributions to be expended for "(activities)
which are designed to extract political gain from legal proceedings." The
Union suggested at oral argument that this statement restricts a candidate
only from using outsider money to finance non-litigation activities that in
some way refer to litigation, such as mailing a flyer announcing [*1119] a victory in a lawsuit or some information
learned during discovery or trial. We cannot accept this limited construction.
As we read the last sentence of the regulation, "activities" includes
steps in the legal proceedings themselves, [**13] so that, for instance, if the filing of a
complaint, the serving of interrogatories or the taking of a deposition is
"designed to extract political gain," it would be subject to the contribution
limitations. This broad limitation on the right to sue subsumes whatever limit
resulted from the Administrative Committee's hedging on the question whether a
lawsuit "motivated solely by a desire to promote a candidate's political
campaign," which is "not a bona fide attempt to secure an adjudication of
legal rights," would be subject to the contribution restrictions. Under the
regulation a candidate could not receive outside assistance to finance a
lawsuit even if brought in good faith and not motivated solely by a desire to
advance his campaign if it was designed to extract political gain. One would
go a far distance to find any lawsuit brought during the heat of a campaign
that was not designed to extract political gain. The regulation places a
severe limitation on the right to sue. The right to sue guaranteed union
members by the Bill of Rights of LMRDA is a grant of an absolute right which
cannot be diminished by only permitting those suits that a union might find to
be bona fide [**14] or not designed to extract
political benefit.
The outsider rule in Section 27 on its face clearly
violates the rights of union members protected by the right to sue guarantee
of the LMRDA. The Union's attempts to construe the rule against its plain
meaning have been unpersuasive. We now turn to what is perhaps the core issue
in this case the proper scope of the remedy for the violation of the right to
sue.
B. The Appropriate Remedy
The Union argues that if we
find, as we have, that the outsider rule violates the right to sue, then "(a)t
most, plaintiffs would be entitled to an injunction prohibiting application or
enforcement of that provision to interfere with the solicitation or acceptance
of contributions from nonmembers to finance litigation." Union's Brief at 40.
The Union has suggested the form of an injunction that it believes would
prevent the outsider rule from infringing on the rights protected by
101(a)(4). n7 Much of the parties' arguments on the proper scope of the remedy
have focused on whether or not we can "separate" the application of the
outsider rule that violates the right to sue from the remaining applications
of the rule. Although we believe that the entire [**15] rule must fall, it is not because of our
adherence to some formalistic nonseparability rule. Instead, we believe the
remaining applications of that rule must fall because they violate the freedom
of speech provision as guaranteed by section 101(a)(2) of the Bill of Rights
of the LMRDA, 29
U.S.C. § 411(a)(2).
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-Footnotes- - - - - - - - - - - - - - - - - -
n7. The suggested
injunction provides:
United Steelworkers of America, AFL-CIO-CLC, its
officers, agents, representatives, attorneys and anyone acting in concert with
them, are hereby enjoined from applying or enforcing Article V, Section 27 of
the Constitution of United Steelworkers of America, AFL-CIO-CLC, to interfere
with the solicitation, acceptance, or use by any member of any non-member
contributions to finance the costs, legal fees, or other expenses of
instituting, maintaining, or appearing as a witness in, an action in any court
or before any administrative agency.
Union's Brief at 44 n.20.
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- - - - - - - -
The Union contends that plaintiffs cannot now rely on
section 101(a)(2) because they did not raise [**16] it in the district court. The general rule is
that an appellate court does not consider issues not raised in the trial
court. E.
g., Miller v. Avirom, 127 U.S. App. D.C. 367, 384 F.2d 319 (D.C.Cir.1967).
This general rule, however, is not absolute the Supreme Court has stated that
"(t)he matter of what questions may be taken up and resolved for the first
time on appeal is one left primarily to the discretion of the courts of
appeals, to be exercised on the facts of individual cases." Singleton
v. Wulff, 428 U.S. 106, 121, 96 S. Ct. 2868, 2877, 49 L. Ed. 2d 826
(1976). See Hormel
v. Helvering, 312 U.S. 552, 557, 61 S. Ct. 719, 721, 85 L. Ed. 1037
[*1120] (1947). An example of this
discretion is incorporated in the widely acknowledged rule that
"(a)n appellate court has discretion to uphold a summary
judgment under a legal theory different from that applied by the trial
court, and rest the affirmance "on any ground that finds support in the
record' ...."
Winter
v. Local 639, International Brotherhood of Teamsters, 186 U.S. App. D.C. 315,
569 F.2d 146, 151 (D.C.Cir.1977) (quoting United
States v. General Motors Corp., 171 U.S. App. D.C. 27, 518 F.2d 420, 441
(D.C.Cir.1975)). [**17] Accord, e. g., C.
Wright & A. Miller, 10 Federal Practice and Procedure § 2716, at 440
(1973).
Typically when summary judgments are upheld on grounds
different from those relied on by the district court, the other grounds were
urged at trial. We must decide whether a different rule should apply in this
case when the alternate ground was not explicitly urged before the trial court
in the context that it is now presented. Cf. Merriam
v. McConnell, 31 Ill.App.2d 241, 175 N.E.2d 293, 295 (1961) (decree of
dismissal can be sustained "by any argument and upon any basis, appearing in
the record, which shows that the decree is right, even if (the party in whose
favor the dismissal was granted) had not previously advanced such argument").
We believe that it is appropriate to now consider the impact of
section 101(a) (2). The issue arising thereunder was argued in the briefs
submitted to this court and the essential features of the contention were
pleaded in connection with the two causes of action which charged violations
of the free speech guarantees of the First Amendment. Our concern with now
ruling on the effect of section 101(a)(2) revolves around the possibility that
the Union [**18] might have been prejudiced by
plaintiffs' failure to raise the issue in the trial court in this precise
context. The only way we perceive the Union could possibly be prejudiced is
that it might have constructed a different record for the purposes of summary
judgment if a denial of free speech under section 101(a)(2) had been alleged
in plaintiffs' complaint in addition to the denial of free speech under the
First Amendment. The issue of the denial of free speech under section
101(a)(2) was implicit in the question whether plaintiffs had been denied free
speech under the First Amendment, as alleged in their complaint. In other
words the same argument with respect to the denial of free speech under the
First Amendment would have been relevant to an allegation of denial under
section 101(a)(2); and the opportunity to make such an argument was open to
the Union.
Since we construe section 101(a)(2) in this case to place
essentially the same limits on labor unions with respect to outside campaign
contributions that the First Amendment would if it applied to labor unions, we
conclude the Union had ample opportunity to meet the substance of the
101(a)(2) claim.
C. Freedom of Speech and [**19] Association
The free speech and assembly
provision of Labor's Bill of Rights states:
Every member of any labor organization shall have the right to
meet and assemble freely with other members; and to express any views,
arguments, or opinions ....
29
U.S.C. § 411(a)(2) (emphasis added). n8
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- - - - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n8. 29
U.S.C. § 411(a)(2) in its entirety provides:
Freedom of speech and
assembly. Every member of any labor organization shall have the right to meet
and assemble freely with other members; and to express any views, arguments or
opinions; and to express at meetings of the labor organization his views, upon
candidates in an election of the labor organization or upon any business
properly before the meeting, subject to the organization's established and
reasonable rules pertaining to the conduct of meetings: Provided, That nothing
herein shall be construed to impair the right of a labor organization to adopt
and enforce reasonable rules as to the responsibility of every member toward
the organization as an institution and to his refraining from conduct that
would interfere with its performance of its legal or contractual obligations.
- - - - - - - - - - - - - - - - -End Footnotes- - - - - - - - -
- - - - - - - - [**20]
This portion of
the LMRDA is patterned after the essential features of the First Amendment, Ostrowski
v. Utility Workers Local 1-2, 530 F. Supp. 208, 104 L.R.R.M. 2343, 2350
(S.D.N.Y.1980), [*1121] which provides:
"Congress shall make no law ... abridging the freedom of speech ... or the
right of people peaceably to assemble ...." U.S.Const. amend. I. n9 The LMRDA
guarantee of freedom of expression is not confined to the exercise of that
right among union members. Ostrowski
v. Utility Workers Local 1-2, 530 F. Supp. 208, 104 L.R.R.M. 2343, 2350
(S.D.N.Y.1980); Graham
v. Soloner, 220 F. Supp. 711, 714 (E.D.Pa.1963). The provision recognizes
the right of union members
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-Footnotes- - - - - - - - - - - - - - - - - -
n9. The other great
right protected by the First Amendment, the right to petition for a redress of
grievances, is also guaranteed to union members by 29
U.S.C. § 411(a)(4).
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Footnotes- - - - - - - - - - - - - - - - -
to assemble in groups, if they like, and to visit their
neighbors and to discuss union affairs, and to say what they think, or
perhaps discuss what should be done [**21]
to straighten out union affairs, or perhaps discuss the promotion of a union
movement, or perhaps a policy in which they believe ....
105 Cong.Rec. 6477 (1959) (remarks of Sen. McClellan) (emphasis added),
quoted in Ostrowski
v. Utility Workers Local 1-2, 530 F. Supp. 208, 104 L.R.R.M. 2343, 2350
(S.D.N.Y.1980). The right of free association is an inseparable aspect of
freedom of speech. NAACP
v. Alabama, ex rel., Patterson, 357 U.S. 449, 460, 78 S. Ct. 1163, 1170, 2 L.
Ed. 2d 1488 (1958); Ostrowski
v. Utility Workers Local 1-2, 104 L.R.R.M. at 2351. As the Supreme Court
stated in
Griswold
v. Connecticut, 381 U.S. 479, 483, 85 S. Ct. 1678, 1681, 14 L. Ed. 2d 510
(1965):The right of "association" ... is more than the right to attend a
meeting; it includes the right to express one's attitudes or philosophies by
membership in a group or by affiliation with it or by other lawful means.
Association in that context is a form of expression of opinion ; and while
it is not expressly included in the First Amendment its existence is
necessary in making the express guarantees fully meaningful. (Emphasis
added).
Our analysis of section 101(a)(2) is guided by a
recommendation [**22] made by Professor Cox
shortly after the passage of the LMRDA:
The legislation contains more than its share of problems for
judicial interpretation because much of the bill was written on the floor of
the Senate or House of Representatives and because many sections contain
calculated ambiguities or political compromises essential to secure a
majority. Consequently, in resolving them the courts would be well advised
to seek out the underlying rationale without placing great emphasis upon
close construction of the words.
Cox, Internal Affairs
of Labor Unions under the Labor Reform Act of 1959, 58 Mich.L.Rev. 819, 852
(1960), quoted in Wirtz
v. Local 153, Glass Bottle Blowers Association, 389 U.S. 463, 468 n.6, 88 S.
Ct. 643, 646 n.6, 19 L. Ed. 2d 705 (1968); and Usery
v. Local 639, International Brotherhood of Teamsters, 177 U.S. App. D.C. 222,
543 F.2d 369, 387 n.50 (D.C.Cir.1976), cert. denied, 429
U.S. 1123, 97 S. Ct. 1159, 51 L. Ed. 2d 573 (1977).
One of the
principal purposes of the Act was "to insure union democracy." n10 The interim
report of the Select Committee on Improper Activities in the Labor or
Management Field, which preceded the LMRDA, in its legislative [**23] recommendations stated:
- - - - -
- - - - - - - - - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n10. S.Rep.No.187, 86th Cong., 1st Sess. 2 (1959); H.R.Rep.No.741,
86th Cong., 1st Sess. 2 (1959).
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-End Footnotes- - - - - - - - - - - - - - - - -
While the committee feels that the bulk of American unions
operate fairly and democratically and agrees with the principle that the
Federal Government should not interfere in their normal functioning, it is
still of the opinion that certain basic standards of democratic procedure
should be established by law.
Interim Report of the
Select Committee on Improper Activities in the Labor or Management Field,
S.Rep.No.1417, 85th Cong., 2d Sess. 452 (1958) (emphasis added) (hereinafter
Select Committee Report).
Even without contribution limitations,
challengers to the union leadership face substantial barriers, especially the
electoral power of the union staff. Union democracy [*1122] can only occur if effective challenges can be
made to the often-entrenched union leadership. Any attempt that would operate
to inhibit insurgents must be carefully scrutinized. See Retail
Clerks [**24] Local 648 v. Retail Clerks International
Association, 299 F. Supp. 1012, 1020 (D.D.C.1969)
("Where a union policy and practice is promulgated in order, among other
things, to place obstacles in the way of effective union democracy and appears
to have this effect, ... the Court cannot give that policy any recognition as
it offends both equity and the provisions of the LMRDA.")
In our view
the outsider rule's blanket prohibition on outside contributions for
"traditional campaign purposes," Union's Brief at 41, violates the rights of
the candidate and his supporters to free speech and association as guaranteed
by section 101(a)(2) and flies squarely in the face of the intent of the LMRDA
to "insure union democracy." We find support for this conclusion in the
analogous context of contribution limitations in federal elections.
In
Buckley
v. Valeo, 424 U.S. 1, 96 S. Ct. 612, 46 L. Ed. 2d 659 (1976), the Supreme
Court ruled on the constitutionality of, inter alia, the expenditure and
contribution limitations of the Federal Election Campaign Act of 1971, 86
Stat. 3, as amended. The Court recognized the significant connection between
money and political speech:
A restriction on the amount [**25] of money a person or group can spend on
political communication during a campaign necessarily reduces the quantity
of expression by restricting the number of issues discussed, the depth of
their exploration, and the size of the audience reached.
424
U.S. at 19, 96 S. Ct. at 634. With respect to contributions the court
stated:
Given the important role of contributions in financing political
campaigns, contribution restrictions could have a severe impact on political
dialogue if the limitations prevented candidates and political committees
from amassing the resources necessary for effective
advocacy.
Id.
at 21, 96 S. Ct. at 635. Finding "no indication ... that the contribution
limitations imposed by the Act would have any dramatic adverse effect on the
funding of campaigns and political associations," id., the Court upheld a
limitation of $ 1,000 on the amount an individual could contribute to a
particular candidate in an election.
In our view, the freedom of
speech guarantee in the LMRDA serves to limit labor unions much as the First
Amendment limits Congress in the restrictions that can validly be placed on
campaign finance, but the Bill of Rights guarantees of [**26] the LMRDA are not limited to situations
involving "state action." Accepting Buckley as persuasive authority and
finding meaningful direction from the legislative history of the LMRDA, we
conclude that the outsider rule in many instances could unquestionably operate
to prevent candidates, at least those facing the electoral power of entrenched
union staffs, from "amassing the resources necessary for effective advocacy."
The rule permits no outside campaign contributions whatsoever. A
candidate for union office cannot receive or solicit contributions from
friends, relatives, Union members not in good standing, retired Union members,
or well-wishers. The Union restrictions would not permit a candidate to
receive a loan from his nonmember father, or a close friend, even if the loan
were fully secured and carried a reasonable rate of interest. The implementing
regulations contain expansive definitions of "financial support" n11 and
"indirect support." n12 They also state:
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n11.
"Financial Support" means a direct or indirect contribution where the purpose,
object or foreseeable effect of the support is to influence the election of a
candidate. Financial support includes, but is not limited to:
1.
Contributions of money, securities, or any material thing of value;
2.
Payments to or subscription for fund raising events of any kind (e. g.,
raffles, dinners, beer or cocktail parties and so forth);
3. Discounts
in the price or cost of goods or services, except to the extent that
commercially established discounts are generally available to the customers of
the supplier;
4. Extensions of credit, loans, and other similar forms
of finance, except when obtained in the regular course of business of a
commercial lending institution and on such terms and conditions as are
regularly required by such institutions; and
5. The payment for the
personal services of another person, or for the use of building or office
space, equipment or supplies, or advertisements through the media.
Union Motion for Partial Stay at Appendix C-2 (Feb. 5, 1981). [**27]
n12. Indirect Support
Section 27
prohibits the solicitation and acceptance of indirect as well as direct
campaign contributions from non-members. Examples of indirect support from
non-members would include, the contribution of cash to a member who in turn
makes a contribution to a candidate; the donation of travel expenses, printing
services, office supplies, office space, or of clerical, secretarial, or
professional services used by a non-member in conjunction with his or her own
volunteered service to a candidate; the distribution of election materials
with the aid of a volunteer's paid staff; and the procuring of discounts.
Union Motion for Partial Stay at Appendix C-3 (Feb. 5, 1981).
- - - - - - - - - - - - - - - - -End Footnotes- - - - - - - - -
- - - - - - - -
[*1123] (W)hen prohibited
support is contributed, there will be a presumption that it was accepted by
the candidate or his or her supporters, unless they have taken affirmative
steps in good faith to dissuade the nonmember from providing such support
and have taken action to correct the effects of the prohibited support. n13
13. The regulation continues:
In such cases where prohibited
support has been contributed, it is the candidate's obligation to contact
immediately the non-member contributor, reject the prohibited support,
return the contribution, insist that such support be discontinued, and take
whatever action on his or her own, or as directed by the Committee, may be
necessary to eliminate any impact on the election. Full reports must be made
to the Committee promptly.
Union Motion for Partial Stay at Appendix
C-3, 4 (Feb. 5, 1981).
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Footnotes- - - - - - - - - - - - - - - - - [**28]
The candidate who solicits outside
support or who is unable to rebut the presumption that he has accepted
support that has been contributed faces serious penalties. The
Administrative Committee may "declare such candidate disqualified." Union
Const. art. V, § 27(d) (emphasis added). In addition the Union Constitution
contains a general "Discipline" provision (Article XII), which makes a
violation of any provisions of the Constitution punishable by fine,
suspension, or expulsion.
Even if we assume that the Union's only
purpose in passing the outsider rule was to keep undesirable outside
influence out of internal union affairs, we could not accept the broad
limitations placed on a candidate's ability to receive outside campaign
contributions that are not prohibited by the statute. n14 The Union no doubt
has a legitimate interest in protecting its internal affairs from nefarious
influences. But that interest cannot justify a rule that prohibits a
candidate, particularly an insurgent candidate, for union office from
receiving any contributions or loans (except from institutional lenders)
from nonmembers.
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-Footnotes- - - - - - - - - - - - - - - - - -
n14. See note 17 and
accompanying text, infra.
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-End Footnotes- - - - - - - - - - - - - - - - - [**29]
The Union suggests that Section 27
might be held valid under the proviso in 101(a)(2) which authorizes
"reasonable" rules to protect unions as institutions. One of the prime
purposes of Congress in enacting the Labor-Management Reporting and
Disclosure Act was to "insure union democracy." n15 The issue is thus framed
as to whether an absolute prohibition on outside contributions is a
"reasonable" protection of a union as an institution or a feature that would
operate to deny "union democracy." We cannot conceive of anything that would
do more to inhibit union democracy than to prohibit insurgent candidates
from receiving financial support from those outside sources that are not
prohibited by the statute. Such a rule in our opinion is unreasonable.
Friends, relatives, spouses, Steelworkers who are not in good standing in
the Union, and well wishers in the public could not make any contribution,
or even a well-secured loan at reasonable interest rates to support any such
candidate.
- - - - - - - - - - - - - - - - - -Footnotes- - -
- - - - - - - - - - - - - - -
n15. See note 10 and accompanying
text, supra.
- - - - - - - - - - - - - - - - -End Footnotes-
- - - - - - - - - - - - - - - - [**30]
We therefore conclude that the complete prohibition on outside
financial support as declared in Section 27 is not on its face a
"reasonable" rule governing the union [*1124] member's responsibility to the union. There
is thus no reason to deviate from the general rule against upholding a
statute in part where the remainder trespasses on free speech rights. Thornhill
v. Alabama, 310 U.S. 88, 97-98, 60 S. Ct. 736, 741-742, 84 L. Ed. 1093
(1940). n16
- - - - - - - - - - - - - - - - - -Footnotes-
- - - - - - - - - - - - - - - - -
n16. It has also been suggested
that Section 27 constitutes an unreasonable qualification on union candidacy
in violation of 29
U.S.C. § 481(e). 55 Chi.-Kent L.Rev. 769, 790-91 (1979).
- - - - - - - - - - - - - - - - -End Footnotes- - - - - - - - - - - - -
- - - -
Our view that the free speech guarantee of the Bill of
Rights in the LMRDA prohibits a complete prohibition on outside financial
contributions to Union candidates gains support from the intent implicit in
section 401(g) of the LMRDA, 29
U.S.C. § 481(g), and the legislative history of that provision. Congress
dealt in a comprehensive manner with the subject of financial [**31] support, including outside support, of
candidates in Union elections in 29
U.S.C. § 481(g). n17 Following such consideration Congress limited its
restrictions on financial support to prohibiting any candidate from using
moneys collected as union "dues, assessment, or similar (levies)" and to
providing that "no moneys of an employer shall be contributed or applied to
promote" any candidate.
- - - - - - - - - - - - - - - - -
-Footnotes- - - - - - - - - - - - - - - - - -
n17. 29
U.S.C. § 481(g) provides:
No moneys received by any labor
organization by way of dues, assessment, or similar levy, and no moneys of
an employer shall be contributed or applied to promote the candidacy of any
person in an election subject to the provisions of this subchapter (29
U.S.C. §§ 481-483). Such moneys of a labor organization may be utilized
for notices, factual statements of issues not involving candidates, and
other expenses necessary for the holding of an election.
- -
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Prior to the enactment of the LMRDA in 1959 the Select Senate
Committee ferreted out widespread corruption, dictatorship and racketeering
[**32] in a number of large international
unions. The Committee found that the President of the Bakery and
Confectionary Workers' International Union of America had "railroaded
through changes in the union constitution which destroyed any vestigial
pretenses of union democracy." Select Committee Report, supra, at 129. It
reported that Dave Beck, General President of the International Brotherhood
of Teamsters "shamefully enriched himself at (the) expense (of the union
members) and that in the final instance he capitulated to the forces within
the union who promoted the interests of racketeers and hoodlums." Id. at 84.
The Committee likewise found Teamster officials joining with others to take
over illegal gambling operations with an "underworld combine," id. at 38-39,
and the top officers of the United Textile Workers of America avariciously
misappropriating union funds, id. at 159. "Democracy (was) virtually
nonexistent" in the International Union of Operating Engineers because the
union was ruthlessly dominated through "violence, intimidation and other
dictatorial practices." Id. at 437. Practices in the Teamsters "advanced the
cause of union dictatorship." Id. at 444. The Committee [**33] cited other similar instances of widespread
abuses in its 462-page Report. n18
- - - - - - - - - - - - -
- - - - -Footnotes- - - - - - - - - - - - - - - - - -
n18. Current
newspaper stories report the possibility that some of the same conditions
still continue. A March 12, 1981 United Press International news story
reports "Mob Said to Control 4 National Unions." The news story relied upon
a confidential Justice Department Report and referred to the Teamsters,
Laborers, Longshoremen and the Hotel, Restaurant and Bartenders
International Unions.
- - - - - - - - - - - - - - - - -End
Footnotes- - - - - - - - - - - - - - - - -
With such highly
objectionable conditions disclosed in the hearings of the Select Committee
preceding enactment of the Labor-Management Reporting and Disclosure Act of
1959, it is likely that when Congress outlawed only union and employer
campaign contributions, it intended to permit candidates for union office to
obtain other outside financial support from legitimate sources. Obtaining
some outside support would be a practical necessity in many cases if members
were to have any realistic opportunity to oust such corrupt and dictatorial
incumbents [**34] as the Select Committee
found in some of the unions it examined.
Walter Reuther and James
Hoffa have recognized that the public has a right to be concerned about
unions. Reuther said:(In) our rapidly changing and more closely interrelated
and interdependent economic [*1125] and
political society, labor cannot be an island unto itself.
Reuther, Labor Leadership A Public Service, in E. Bakke, C. Kerr & C.
Anrod, Unions, Management and the Public 128 (2d ed. 1960).
And Hoffa
testified before the Select Committee:
I recognize my responsibility to the general public. I think my
record speaks for itself * * *. I believe that the more power there is
concentrated into a labor organization, the more responsible and careful the
unions must be not to lose the complete power of having the right to have a
union.
Select Committee Report, supra, at 249.
While it might be argued from the above Legislative history that
Congress may not have intended to completely preempt the field by its
provision prohibiting only the use of union and employer money, it is highly
unreasonable to expect that Congress intended to leave the door open for as
absolute a prohibition [**35] as is embodied
in Section 27. Such construction would leave union members practically at the
mercy of every entrenched group of incumbents. n19
- - - - - -
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n19. The Union also contends that the recent decision of the Supreme
Court in Democratic
Party v. LaFollette, 450 U.S. 107, 101 S. Ct. 1010, 67 L. Ed. 2d 82
(1981), supports the validity of Section 27. We disagree. That decision
upheld a rule of the Democratic Party that only voters who publicly recorded
their preference for the Democratic Party could vote in the selection process
for delegates to the national convention, against a Wisconsin law that
permitted any voter to vote in a state election which purported to bind
delegates to the Democratic National Convention in their votes on presidential
candidates. The decision in Democratic Party is inapposite here. It frees
elected delegates from being required at the National Convention to vote the
preference for president expressed in an election which was not limited to
publicly recorded Democrats, but in no way restricts any candidate for
delegate from receiving financial support from independents and even from
members of other parties.
- - - - - - - - - - - - - - - - -End
Footnotes- - - - - - - - - - - - - - - - - [**36]
III. CONCLUSION
Having found
that the critical sentence in Section 27 not only violates 101(a) (4), but
also in prohibiting outside contributions for traditional campaign purposes
unreasonably impinges on the right of free speech and association guaranteed
by section 101(a)(2), we must find that the outsider rule as set forth in the
first sentence of Section 27 is invalid in its entirety. n20
-
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n20. Our authority to invalidate part of the Union Constitution comes
from section 101(b) of the LMRDA, 29
U.S.C. § 411(b), which provides:
Any provision of the constitution
and bylaws of any labor organization which is inconsistent with the provisions
of this section shall be of no force or effect.
We also note that
plaintiffs were not required to exhaust an available administrative remedy.
The Union has not raised that point, and as explained by the court in Ostrowski
v. Utility Workers, Local 1-2, 530 F. Supp. 208, 104 L.R.R.M. 2343, 2345-46
(S.D.N.Y.1980):
Section 411(a)(4) (of Title 29 U.S.C.) provides
that a union member "may be required to exhaust reasonable hearing procedures
(but not to exceed a four-month lapse of time) with (his union), before
instituting legal or administrative proceedings." The limitations of Section
411(a)(4) are permissive; thus, whether or not a plaintiff will be required to
utilize his internal union appeals is a matter within the discretion of the
trial judge. (citing cases).
It is well-established that "a free
speech violation generally justifies dispensing with administrative remedies."
Keeffe
Bros. v. Teamsters Local Union No. 592, (562 F.2d 298, 303 (4th Cir.
1977)).
In addition, "beneficial and fair requirements of
administrative exhaustion should not be imposed absent realistic possibility
of a meaningful remedy." Alexander
v. Yale University, 459 F. Supp. 1, 6 (D.Conn.1977). It is evident from
these rules that plaintiffs were under no obligation to exhaust any remedy
within the Union.
- - - - - - - - - - - - - - - - -End
Footnotes- - - - - - - - - - - - - - - - - [**37]
The question remains whether any of the
other provisions of Section 27 can survive. We conclude that they cannot with
one exception. The remaining provisions of Section 27, except one, all provide
in some manner for the enforcement of the prohibitions on candidates receiving
any outside financial support n21 as prohibited by [*1126] the first sentence of Section 27, and since
we find such sentence to be invalid there is nothing left to enforce. We thus
rule that the Administrative Committee shall not retain any of the power or
authority derived from Section 27, with the one noted exception. Section 27(f)
provides: "if the International Executive Board deems it advisable" said Board
may determine that the Committee "may have such other powers as the ... Board
determines are necessary for the implementation of ... any other Section
(Section 27 excluded) of Article V." Union Const. art. V, § 27(f) (emphasis
added). Since this case does not involve any other section of the
Constitution, if the International Board considers it necessary to exercise
this authority in connection with some other section of the Constitution, this
opinion does not prohibit such action. However, [**38] such other powers could not be used in any way
to implement any of the prohibitions attempted by Section 27.
-
- - - - - - - - - - - - - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n21. The remaining provisions of Article V, Section 27 may be
summarized as follows:
(1) The International Executive Board was
empowered to adopt regulations for the Union's Election Manual to implement
the prohibitory provision of the first sentence and require reporting not more
frequently than weekly by candidates and their supporters, to insure
compliance with said Section.
(2) A Campaign Contribution
Administrative Committee composed of three persons who are not members of the
Union was created to administer and enforce Section 27. Such Committee was
authorized (a) to promote compliance with the "prohibited support provision"
(of Section 27); (b) to issue cease and desist orders directing any candidate
or supporter to cure any violation of Section 27; (c) to require candidates
and supporters to report such information as the Committee "deems appropriate"
and to review such information; (d) to declare a "candidate disqualified" for
a violation of Section 27 by the "candidate, or a supporter of a candidate";
(e) to institute "legal proceedings" that it determines "in its sole
discretion ... are necessary for the enforcement of Section 27"; (f) to
recommend amendments to the regulations to the International Board and to have
"such other powers as the International Executive Board determines are
necessary for the implementation of ... Section 27"; and (g) to make decisions
with respect to the administration of Section 27 that "shall be final and
binding, and not subject to review by any tribunal within the Union."
See the Appendix to this opinion for the complete text of Section 27.
- - - - - - - - - - - - - - - - -End Footnotes- - - - - - - - -
- - - - - - - - [**39]
We agree with
the district court in its judgment that the outsider rule violates the right
to sue provision of the LMRDA. Our belief that the rule seriously impinges on
the rights of free speech and association protected by section 101(a)(2) of
the LMRDA leads us to agree with the district court that the entire rule must
fall. n22 We therefore affirm the judgment of the district court enjoining the
Union from implementing or enforcing Article V, Section 27 of the United
Steelworkers of America Constitution in its entirety, with the aforesaid
exception, and requiring the Union to publish notice in Steel Labor.
- - - - - - - - - - - - - - - - - -Footnotes- - - - - - - - - -
- - - - - - - -
n22. It is thus unnecessary to decide whether there
was sufficient "state action" to raise First Amendment questions. The section
101(a)(2) guarantee of free speech does not require "state action."
- - - - - - - - - - - - - - - - -End Footnotes- - - - - - - - - - - - - -
- - -
We also affirm the dismissal of the Secretary of Labor from the
case for lack of jurisdiction.
Because of the nearness of the upcoming
election the clerk of court is hereby ordered to issue the mandate [**40] forthwith.
Judgment accordingly.
APPENDIX
Article V, Section 27 of the United Steelworkers of
America, adopted September 21, 1978, provides:
Sec. 27. No candidate (including a prospective candidate) for
any position set forth in Article IV, Section 1, and supporter of a
candidate may solicit or accept financial support, or any other direct or
indirect support of any kind (except an individual's own volunteered
personal time) from any non-member. For purposes of this Section, the term
non-member means any person who is either not eligible for membership under
Article III or not in good standing or any foundation, corporation or other
entity whose funds are derived in whole or in part from any person not
eligible for membership under Article III or not in good standing.The
International Executive Board shall adopt regulations, for incorporation
into the International Union Elections Manual, as necessary to implement
this provision and to assure conformity with the obligations prescribed in
this Section. [*1127] Such regulations
shall include requirements for reporting by candidates and their supporters
of information pertinent to administration of and compliance [**41] with this Section, with such frequency, not to
exceed weekly, as the International Executive Board deems appropriate.There
is hereby created a Campaign Contribution Administrative Committee to
administer and enforce this Section. This Committee shall consist of three
persons, appointed by the International Executive Board, for a term to begin
not later than May 1, 1979, and end on August 1, 1983, who shall be
distinguished, impartial citizens who are not members of the International
Union. If a Committee member dies or resigns, the International Executive
Board shall appoint a replacement. A quorum shall consist of two members of
the Committee. The International President shall fix the compensation and
expenses of the Committee members, and shall arrange for the provision of
supplies, services, and all other assistance required by the Committee. The
Committee shall have the following powers:(a) The Committee shall have the
authority to contact any and all non-members who it feels may be providing,
or attempting to provide, prohibited support to any candidate, and attempt
by persuasion to convince such non-members to refrain from providing such
support. [**42]
(b) The Committee shall have the power (i) to direct any
candidate, or any supporter, to cease and desist from any course of conduct
which the Committee believes breaches this Section or the regulations of the
International Executive Board adopted pursuant to this Section, and (ii) to
direct any candidate, supporter or non-member to take such corrective action
as the Committee deems appropriate to cure the effects of any violation
and/or assure that any improper conduct will not have an effect upon the
election.(c) The Committee shall receive and promptly review the information
candidates and their supporters are required to file by the regulations of
the International Executive Board and by such additional requirements as the
Committee may establish. The Committee may require candidates and their
supporters to report whatever additional information the Committee deems
appropriate to perform its functions.(d) In the event that a candidate, or a
supporter of a candidate with that candidate's knowledge or acquiescence,
willfully and substantially breaches the obligations prescribed in this
Section, or the regulations adopted by the International Executive Board
[**43] pursuant to this Section, the
Committee shall, upon notice and hearing under such expedited conditions as
the Committee deems appropriate in the circumstances, have the power to
declare such candidate disqualified, and to so notify the International
Tellers.(e) If the Committee in its sole discretion determines that legal
proceedings are necessary for the enforcement of this Section 27, it may
institute whatever legal proceedings it deems appropriate, in the name of
the International Union. The Committee shall be the only party authorized to
institute legal proceedings to enforce the provisions of this Section 27.(f)
The Committee may recommend to the International Executive Board that
additions or amendments be made to the regulations adopted by the
International Executive Board pursuant to this Section and shall have such
other powers as the International Executive Board determines are necessary
for the implementation of this Section or, if the International Executive
Board deems it advisable, any other Section of Article V.Any member who
believes that another member is violating these provisions may file a
complaint with the Committee. The Committee [**44] shall process that complaint in such manner as
it deems appropriate, and may adopt rules with respect to the filing and
processing of member complaints.With respect to the administration of this
Section 27, decisions of the Committee [*1128] shall be final and binding, and not subject
to review by any tribunal within the Union.
At the 1980
Biennial Convention of the Union the four lines immediately above were
stricken and the following new matter was inserted in lieu thereof.
With respect to any pre-election matters within its
jurisdiction, decisions of the Committee shall be final and binding, and not
subject to review by any tribunal within the Union.The Campaign Contribution
Administrative Committee shall have exclusive jurisdiction of all
post-election contests to all or part of the election based upon the
following grounds:(1) Alleged violations of this Section 27;(2) Alleged
violations of any rules or regulations adopted pursuant to this Section 27;
or(3) Alleged violations of the prohibition (contained in the International
Union Elections Manual adopted pursuant to Article V, Section 4) against the
use of union [**45] or employer funds or
facilities for campaign purposes.A candidate who wishes to file a contest on
any of the above grounds must, in order to perfect such contest, file the
contest with the Campaign Contribution Administrative Committee within such
time period and pursuant to such rules as the Committee shall establish. The
Committee shall investigate such contests, make determinations on those
contests and make a report of its determinations and recommendations to the
International Executive Board in time to be considered by the International
Executive Board prior to September 1 of the election
year.