Jesse Colpo v. General Teamsters Local Union 326 of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America Raymond J. Donovan, Secretary of Labor, United States Department of Labor v. Local 326, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Independent

Citation: 659 F.2d 399Docket: 81-1258

Court: Court of Appeals for the Third Circuit; September 28, 1981; Federal Appellate Court

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Local 326 of the International Brotherhood of Teamsters appeals a court order that invalidated its November 1979 presidential election, directing a new election under the Secretary of Labor's supervision. This order arose from a complaint by the Secretary alleging that Local 326 violated section 401(e) of the Labor-Management Reporting and Disclosure Act by disqualifying Jesse Colpo, a member in good standing, from running for president. The trial court ruled that this disqualification infringed upon the rights of Local members to vote for their preferred candidate, a decision the appellate court affirms.

Jesse Colpo has been employed with Interstate Motor Freight System since 1967, and under the National Master Freight Agreement, the employer is responsible for collecting union dues through a check-off system. Local 326 certifies member dues monthly, and dues must be paid by the last business day of the current month to maintain good standing. Members not working during a check-off period must ensure dues are paid directly or deducted later. Notably, the Local uses a "collapsible" dues accounting system, which means past dues defaults can affect current standing.

According to the International Constitution, a member must be in continuous good standing for 24 consecutive months prior to nominations to be eligible for office. The "collapsible" system may result in dues delinquencies being carried forward, impacting a member's eligibility.

In December 1976, Local 326 submitted its monthly dues check-off list, but the employer failed to deduct Jesse Colpo's dues from his wages despite him working every week that month. As a result, when deductions resumed, they were applied to the December arrears, placing Colpo out of good standing according to Local 326's records. In February 1978, a notation indicated he was a month behind, but it did not specify which month was missed. Colpo checked his payroll stubs back to January 1977 and found no missing payments, leading him to take no further action. A union steward later informed him of the arrearage, but Colpo believed he was current and declined assistance. Despite ongoing notations of being "one month behind," when he attempted to pay dues for February 1979—during which he hadn't worked—he was told he was up to date by May 1979. The February 1979 arrearage was corrected in September 1979 after Colpo requested a double deduction.

On September 30, 1979, Colpo was nominated for President of Local 326 but was ruled ineligible due to not maintaining good standing for the previous 24 months. He subsequently paid the outstanding dues from December 1976, which allowed him to vote but not to run for office. Colpo appealed to the International President, who upheld the ruling based on the "collapsible" dues accounting method, which continued to carry forward the arrearage.

The Secretary contended that Local 326's disqualification of Colpo violated section 401(e) of the Labor-Management Reporting and Disclosure Act in two ways: it protects employees with authorized payroll deductions from ineligibility due to employer defaults, and the 24-month good standing rule, combined with the accounting method, is an unreasonable qualification for office. The district court accepted the first ground. Local 326 argued that section 401(e) applies only when deductions have been made but not paid over, suggesting Congress intended to place the risk of non-payment on unions. The Secretary countered that this interpretation is inconsistent with the Act's purpose to protect rank-and-file members' rights to participate in union governance and could enable manipulation of eligibility through collusion between candidates and employers. Thus, the Secretary advocated for a broader interpretation of section 401(e) to cover any employer default, aligning with collective bargaining realities.

The dues check-off, negotiated by the union, is typically enforceable under the union's control within collective bargaining agreements. A union cannot disqualify a member from participating in its electoral process due to the union's own tolerance of an employer's failure to adhere to the dues check-off clause. The district court found that the language in section 401(e) of the statute is ambiguous, allowing for multiple interpretations. However, it concluded that the Secretary's interpretation aligns better with the legislative intent of Title IV, and this interpretation has been upheld by other district courts. Consequently, the district court's decision to prohibit Colpo's disqualification due to his employer's failure to collect dues was affirmed. No need was identified to evaluate the Secretary's additional argument regarding the unreasonable nature of the International's 24-month good standing requirement alongside a dues accounting arrangement. The judgment will be upheld based on the grounds identified by the district court. The case involved a consolidation with a private suit from Mr. Colpo, who alleged discriminatory enforcement by Local 326 and the International, which the district court found unsubstantiated. Additionally, section 481(e) of Title I states that members in good standing cannot be disqualified from voting or candidacy due to delays in dues payment when the dues are withheld by their employer under a collective bargaining agreement.