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RAYMOND v. HOFFMANN
March 25, 1966
A. Raymond et al., Trustees of Local 837 Pension Fund, Plaintiffs,
Sal B. Hoffmann et al., constituting the Board of Governors of the UIU National Pension Trust, Defendants
Van Dusen, D.J.
The opinion of the court was delivered by: VAN DUSEN
This case is before the court on the defendants' motion to dismiss the Complaint filed February 1, 1965.
The present suit arises out of an agreement between two labor unions, the Upholsterers International Union (hereafter referred to as the "UIU") and the International Brotherhood of Teamsters (hereafter referred to as the "Teamsters").
Due to a schism in the hierarchy of the UIU, a dissident group of union officials, headed by George Bucher, arranged (after oral agreement with Sal B. Hoffmann, President of the UIU, and John B. Backus, President of the Teamsters Joint Council 53 in Philadelphia) to dissociate themselves and the employees they represented from the UIU and to affiliate with the Teamsters.
The salient points of the oral agreement were (1) that a new Teamsters Local (No. 837) would be created to represent a part of the membership of UIU Local No. 37, (2) that a portion of the collective bargaining agreements previously in effect between the UIU through its Local 37 would be assigned to the new Teamster Local 837, (3) that assets of UIU Local 37 would be ratably distributed between the new union and the remainder of the old one, (4) that neither union would engage in the practice known as "raiding," (5) that any change in the status of the employees contemplated by the above arrangement would be voted on by the employees themselves, and (6) that George Bucher and the other dissidents would resign from the UIU and become charter members of the new Teamsters Local 837. These points were orally agreed to in September of 1964 and confirmed in writing in November 1964.
On October 19, 1964, a form letter was sent to all the employees in the group proposed for transfer.
The form letter contained a ballot and directions to vote for either (1) remaining in the UIU or (2) joining the Teamsters. The result of the balloting was that an overwhelming number of employees in each of 36 plants (the operators of which formerly bargained with UIU) voted to leave the UIU and join the Teamsters. This letter contained the following language, inter alia:
"To The U.I.U. Members in
U.I.U. Local No. 37 Employed
"We have decided to ascertain from you whether or not you would have any objection to being transferred to the Teamsters' Union.
"Accordingly, and by order and authorization of the Upholsterers' International Union General Executive Board, you are herewith requested to indicate on the enclosed ballot whether or not you are willing to be transferred from the Upholsterers' ...
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