Hansen v. Guyette

• Decision Date: 02 June 1986
• Docket Number: Civ. 3-86-0490.,No. Civ. 3-86-437,Civ. 3-86-437
• Citation: 636 F. Supp. 907
• Parties: Joseph T. HANSEN, Trustee of Local Union P-9 United Food and Commercial Workers International Union, AFL-CIO & CLC, Plaintiffs, v. James V. GUYETTE, Suspended President of Local Union P-9, Lynn Houston, Floyd Lenoch, Peter Winkels, John Weis, Carl Pontius, Kathryn Buck, Jim Retterath, Suspended Executive Board Members of Local P-9, Defendants. LOCAL P-9, UFCW, a labor organization and unincorporated association, James Guyette, Lynn Huston, Kathryn Buck, Peter Winkels, James Retterath, John Weis, Floyd Lenoch, and Carl Pontius, in their individual and official capacities as members of the Executive Board of Local P-9, and on behalf of 975 striking members of Local P-9, Plaintiffs, v. William H. WYNN, Jay H. Foreman, Jerry Menapace, William Olwell, Alan Lee, Lewie Anderson, Joseph Hansen, John Mancouso, and Allen Zack, in their individual and official capacities; and United Food and Commercial Workers International Union, a labor organization and unincorporated association, Defendants.
• Court: U.S. District Court — District of Minnesota

636 F. Supp. 907

Joseph T. HANSEN, Trustee of Local Union P-9 United Food and Commercial Workers International Union, AFL-CIO & CLC, Plaintiffs, v. James V. GUYETTE, Suspended President of Local Union P-9, Lynn Houston, Floyd Lenoch, Peter Winkels, John Weis, Carl Pontius, Kathryn Buck, Jim Retterath, Suspended Executive Board Members of Local P-9, Defendants.

LOCAL P-9, UFCW, a labor organization and unincorporated association, James Guyette, Lynn Huston, Kathryn Buck, Peter Winkels, James Retterath, John Weis, Floyd Lenoch, and Carl Pontius, in their individual and official capacities as members of the Executive Board of Local P-9, and on behalf of 975 striking members of Local P-9, Plaintiffs, v. William H. WYNN, Jay H. Foreman, Jerry Menapace, William Olwell, Alan Lee, Lewie Anderson, Joseph Hansen, John Mancouso, and Allen Zack, in their individual and official capacities; and United Food and Commercial Workers International Union, a labor organization and unincorporated association, Defendants.

Nos. Civ. 3-86-437, Civ. 3-86-0490.

United States District Court, D. Minnesota, Third Division.

June 2, 1986.

Roger A. Jensen, Peterson, Bell, Converse & Jensen, St. Paul, Minn., (Harry Huge, Gary K. Harris, James E. Pfander, Rogovin, Huge and Lenzner, George R. Murphy, Robert E. Funk, Jr., Washington, D.C., of counsel), for plaintiffs.

Emily Bass, Margaret Winter, Winter & Bass, New York City, Krause & Rollins, Minneapolis, Minn., Ronald L. Rollins, Minneapolis, Minn., for defendants.

MEMORANDUM & ORDER

DEVITT, District Judge.

The basic issue on motions for preliminary injunctions in each of these cases is whether the UFCW International Union had authority to appoint a trustee over Local P-9's affairs. The parties submitted memoranda and affidavits and presented oral argument on June 2, 1986.

The International Union, after a hearing, placed Local P-9 in trusteeship on May 7, 1986, because P-9 had violated the UFCW Constitution by disobeying a directive of the International Executive Committee. The March 13, 1986, directive ordered P-9 to cease its strike with Hormel, to cease its unsanctioned product boycott, and to cease its roving picket line activities. The directive was not followed and P-9 refuses to recognize the trusteeship.

The records in these cases reflect a sharp, long-time conflict between the International's President William Wynn and Vice-President Lewie Anderson, on the one hand, and P-9 President James Guyette and corporate campaign leader Ray Rogers, on the other. According to the affidavit of James Guyette, the two groups hold markedly different views on the making of certain concessions to Hormel, maintaining the so-called "Hormel chain" in wage and conditions of employment negotiations, the wisdom of conducting a "corporate campaign" against Hormel, and other issues. Bitter exchanges have taken place between members of the two groups. The International was accused of bad faith, and Guyette and Rogers were called inexperienced and charged with leading P-9 members to "mass suicide."

But this hearing is not to receive evidence or arguments about the strike, on how it can be, or should have been, conducted. The basic issue here is a contract, not a labor dispute. The question is whether the International had authority under its constitution and federal labor law to appoint the trustee. An examination of the thirty page UFCW International Constitution, which is a contract between the International and its local unions and members, reflects a vesting of controlling authority in the International, vis-à-vis the local subordinate bodies, to shape, supervise, and execute almost every part of labor activity in which the International and its chartered bodies are involved.

The UFCW Constitution provides that collective bargaining contracts must be approved by the International President, absent which they are "void and without effect." UFCW Int'l Const. art. 23(a). The International, through its Executive Board, is solely impowered to authorize strikes or other economic action, order cessation of work, and make agreements covering hours, wages, and conditions of employment. Id. arts. 8(B), 23(E). The International President authorizes issuance of charters and interprets the constitution, id. art. 10(E)(1); local unions are required to abide by and conform to the constitution and laws, id. art. 31(A), 32(C); and every member agrees to subject himself to the International's Code of Discipline, id. art. 25(A).

Particularly important to the immediate issue before us, the UFCW Constitution specifically authorizes the imposition of a trusteeship upon a local union "whenever in the judgment of the International Executive Committee such action is required." Id. art. 9(H)(1). This broadly expressed grant of authority may be exercised for, among other purposes, enforcing compliance with directives of the International. Id.; see also art. 8(b). That was the purpose here.

These provisions of the UFCW Constitution are given the force of law in the Labor-Management Reporting and Disclosure Act, 29 U.S.C. §§ 461-66. The Act sets out proper purposes in establishing trusteeships to prevent arbitrary or wrongful imposition of trusteeships. Jolly v. Gorman, 428 F.2d 960, 967 (5th Cir.1970). Section 302 of the Act permits establishing and administering a trusteeship only in accordance with the constitution and bylaws of the organization which has assumed trusteeship over the subordinate body. 29 U.S.C. § 462. A trusteeship for the purpose of carrying out the legitimate objects of the labor organization is proper. Id.

The record shows compliance by the International's officers with federal law and with the constitution's procedural due process requirements. See UFCW Int'l Const. art. 9(H)(3). There is a strong probability that the International will prevail on the merits. The public interest and a weighing of the respective harms strongly favors a grant of relief to the International. Dataphase Systems, Inc. v. C L Systems, Inc., 640 F.2d 109, 114 (8th Cir.1981).

We conclude that since Local P-9 did not comply with the International's directive to cease its strike against Hormel or to cease its unsanctioned product boycott or to cease its roving picket line activities, the International acted within its authority in appointing the trustee to manage P-9's affairs, and trustee Hansen is legally authorized to act as such.

Based on the affidavits, the submitted memoranda, oral argument, and all files, records, and proceedings in these and related cases, we make the following pursuant to Federal Rule of Civil Procedure 65(d):

FINDINGS OF FACT

1. Local Union P-9, United Food & Commercial Workers International Union (Local P-9) is a chartered local union affiliate of the UFCW International Union (International). Both entities are labor organizations representing employees in an industry affecting commerce.

2. The UFCW International Constitution sets the terms of membership in the International and governs the relationship between the International and the local unions.

3. On August 17, 1985, Local P-9 commenced a strike against George A. Hormel & Co.'s Austin, Minnesota plant (Hormel). Local P-9 sought and obtained International sanction of the strike. The International declined to sanction a product boycott or roving picket lines.

4. In October 1985, Local P-9's request for approval of a Hormel product boycott and roving picket lines to other Hormel plants was denied by the International.

5. Notwithstanding the absence of International sanction, and in connection with its strike against Hormel, Local P-9 extended its picket lines to Hormel plants in Fremont, Nebraska; Ottumwa, Iowa; Dallas, Texas; and Algona, Texas, where UFCW local unions represent employees. Over five hundred workers at the Ottumwa and Fremont plants were discharged or replaced for honoring Local P-9's picket lines.

6. Notwithstanding the absence of International sanction, and in connection with its strike against Hormel, Local P-9 publicly announced and called for a nationwide boycott of Hormel products in December 1985, or shortly thereafter.

7. On January 13, 1986, Hormel announced its intention to reopen its Austin, Minnesota plant. Thereafter, Hormel implemented its alleged final collective bargaining offer and began to hire workers. Of the approximately 1400 employees at the Austin plant that Local P-9 represented before the strike, approximately 500 returned to work at the Austin plant and approximately 500 have been permanently replaced.

8. On March 13, 1986, the International's Executive Committee (IEC) issued a directive to Local P-9 withdrawing strike sanction and ordering Local P-9 to cease the strike and related activities against Hormel. The IEC specifically stated that its primary concern is the preservation of Local P-9 members' jobs and their union. Local P-9's appeal from the directive was denied.

9. Local P-9 continued its strike and strike related activities after the International withdrew sanction of the strike. Sharp v. Local No. P-9, Civ. No. 3-86-363 (D.Minn. Apr. 23, 1986); Local No. P-9 and Geo. A. Hormel & Company, JD-125-86, at 13 & n. 18 (NLRB May 22, 1986).

10. On March 24, 1986, the International noticed a hearing to all Local P-9 members on the issue of whether Local P-9 should be placed in trusteeship pursuant to article 9(H) of the UFCW Constitution for violating the March 13th directive. The hearing date was continued to April 14, 1986, on the request of Local P-9. The UFCW Constitution authorizes imposition of a trusteeship before a hearing. UFCW Const. art. 9(H)(1).

11. On April 1, 1986, the International Executive Committee appointed Raymond B. Wooster, a twenty-five year UFCW member and union representative, as the hearing officer. In carrying out his responsibilities, Hearing Officer Wooster provided the parties with procedural rules, relevant federal statutes, and UFCW Constitution prov...