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Employees File Federal Class Action Suit to Halt Abusive Mandatory Union Dues Scheme

News Release

Employees File Federal Class Action Suit to Halt Abusive Mandatory Union Dues Scheme

Right to Work Foundation helps employees challenge national union’s illegal “annual objection” policy

Aberdeen, MD (September 21, 2009) – Today, two employees filed a class action federal suit challenging the International Association of Machinist and Aerospace Workers (IAM) union’s nationwide policy requiring employees to object year after year to paying union dues they cannot be lawfully forced to pay.

With free legal aid from the National Right to Work Foundation, Jacobs Technology Incorporated employees Rick Gorham and Robert Negosta are challenging the IAM union officials’ scheme intended to thwart non-union members’ legal rights to refrain from paying union dues for union electioneering and other non-bargaining activities. Foundation attorneys filed the complaint in Maryland’s U.S. District Court on behalf of the two employees and all of Jacobs Technology’s other similarly-situated employees.

In the Foundation-won Communication Workers of America v. Beck (1988), the U.S. Supreme Court held that union officials can lawfully compel nonmembers to pay union dues as a job condition, but not the part of dues spent for non-bargaining activities like political activism, lobbying, and member-only events. However, these limited rights have been difficult to enforce, as union officials often concoct illegal schemes such as these “annual objection” policies to burden or thwart employees from exercising their rights.

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Employees Force Settlement in Precedent-Setting Federal Union Racketeering Lawsuit

News Release

Employees Force Settlement in Precedent-Setting Federal Union Racketeering Lawsuit

Right to Work Foundation uses innovative legal techniques after company and union officials collude to enrich union bosses

Phoenix, AZ (July 22, 2009) – With free legal aid from the National Right to Work Legal Defense Foundation, five Phoenix-based employees who refrained from formal dues-paying union membership forced a settlement with the defendants in a federal lawsuit laying out how union agents conducted a corrupt scheme to divert sales commissions from the employees to union officials.

National Right to Work Foundation attorneys used the Racketeering Influenced and Corrupt Organizations Act (RICO) anti-corruption statute (establishing new legal precedent in the process) and the Labor Management Relations Act (LMRA) to attack a scheme allegedly orchestrated by Qwest Communications and Dex Media, publisher of the yellow pages phone books, and International Brotherhood of Electrical Workers (IBEW) Local 1269 union bosses.

Evidence discovered in the lawsuit showed that IBEW Local 1269 union officials manipulated company procedures to receive greater compensation at the expense of the nonunion plaintiffs. Some of the methods used to increase the union agents’ compensation included reassigning accounts from nonunion employees to union officials, giving union agents “double commissions” for sales made by other workers, and allowing union officials to regularly sell lucrative “group ads” while denying similar opportunities to nonmember employees. By knowingly aiding union agents as they manipulated company rules to increase their performance-based pay, Qwest and Dex were accused of bribing union officials to act against workers’ interests in bargaining negotiations.

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