May 10, 1999
Mr. Charles Little
International President
United Transportation Union
14600 Detroit Avenue
Cleveland, Ohio
Dear Sir & Brother:
I have become aware that the negotiations between the
UTU and the BLE have broken off, however, there appears to be a degree of diversity
between the sides as to the actual "why" of this breakdown in negotiations.
It appears that the BLE position deals with questions
concerning financial matters and adherence to Exhibit DD of item 18 of the 28 points,
while the position of the UTU is that we are in strong financial condition, vis a vis the
averments of Ernst & Young, "that financial due diligence regarding unification
was completed in November 1998", and that a meeting was scheduled for May 11, 1999.
A careful review of the "28 Points" involved
in the unification, shows that number eighteen (18) contained the following affirmative
language, and attached Exhibit DD, in their entirety:
18. The international dues structure of the new
organization shall be determined as described in Exhibit DD.
EXHIBIT DD
The international dues structure for the new
organization shall be established in accordance with following procedure: upon the
approval of this Statement of Principles, the Oversight Committee shall appoint a
committee consisting of three BLE and three UTU representatives assisted by the two
unions' respective independent accountants. The committee shall recommend - after
conducting the necessary investigation into the relevant facts - a dues structure which
shall enable the new organization to provide representational services at least equal to
those now being provided to our respective memberships and which shall insure, to the
maximum extent feasible, that the new organization can operate on a fiscally responsible
basis. Failing agreement by May 1, 1999, the parties shall submit their dispute to a three
member panel consisting of one certified public accountant (selected by the two
independent accountants) and two persons with experience in union finances and governance
(the facilitator and an additional member designated by the facilitator after consultation
with Oversight Committee). The issue presented to the panel shall be: what dues structure
shall be established for the new organization which will enable it to provide
representational services at least equal to those now being provided to their respective
memberships and which shall insure, to the maximum extent feasible, that the new
organization can operate on a fiscally responsible basis. The panel shall preside over an
evidentiary hearing in which the parties shall have the right to present and cross examine
witnesses. The panel decision shall be final and binding on the parties and shall
conclusively establish the dues structure for the new organization.
It is clear from a reading of the preceding that there
was no provision for any input from the delegates of the UTU with respect to the dues
structure for the "new union", and said matter was placed in the hands of a
"financial committee", with final and binding arbitration if the parties could
not resolve the matter by May 1, 1999.
However, in your recent "press release" of
this date, you make several statements that the matter of the dues structure for the
"new union" would be a matter for the delegates, and that you had on April 7,
1999 requested, " . . . we could not definitively discuss a dues structure until
after the delegates at our convention vote on the issue". Initially, I am confused,
since the agreed to language of the parties concerned no such provision, or could it be
that this politically sensitive issue of the dues was desired to be kept secret until
after the quadrennial convention?
My initial question, simply stated is, "Did the
breakdown in negotiations come, in whole or in part, as a result of the accounting
practices utilized by the UTU with respect to monies which have been transferred from the
Job Benefit Fund for the payment of various legal matters and to supplement the general
operation of this Union?"
Also please advise as to, "What provision of the
UTU Constitution provides for the establishment or change in a dues structure for a
"new union" which does not exist?" I am aware that during conventions you
rely on your so-called "extraordinary powers" to address matters not covered in
the Constitution, but in the instant case the delegates are bound by the Constitution and
any changes which have been submitted could only germanely address matters under our
Constitution.
Thanking you in advance for your anticipated prompt
response in these areas, I remain,
Most Fraternally Yours
Lance E. Ruck
Concerned Delegate
UTU Local 1571
