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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Jerry Rasmussen and Carla Crandall (along with their coworkers) forced the UFCW Local 4 to sign a settlement after union officials tried to bar them from exercising their legal rights at a Safeway in Polson, Montana.

National Right to Work attorneys helped the two through their battle against illegal termination threats and forced dues seizures after union officials denied their requests to resign from formal membership.

The Associated Press covered the story:

"I got a hold of the (National Right to Work Legal Defense Foundation) attorneys, and they said, 'That's absolutely not right. They have to acknowledge those Beck rights and let you be a nonmember,'" Rasmussen said.

Although the settlement requires UFCW Local 4 officials to reimburse the employees of their forced dues plus interest and to inform them of their legal right to resign from formal membership, it is an incremental victory in the broad fight against compulsory unionism in Montana.

Until Montana has a Right to Work law that makes the payment of union dues strictly volunatary, this type of intimidation will likely continue throughout the Treasure State.