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.
