TAFT-HARTLEY
ACT
The Taft-Hartley Act makes it unlawful for any employer or association of
employers to pay money or
other things of value to any union official or representative of its
employees. Violations of the Taft-Hartley
Act are criminal acts and in the past have formed the predicate for civil
actions brought by the
government against labor unions and their officials under the Racketeer
Influenced and Corrupt
Organizations Act ("RICO"). Counsel for NYSA has recently been
involved in two arbitrations
involving potential Taft-Hartley violations.
-
NYSA
Counsel successfully challenged an arbitration award that would have given a
former ILA
official a pension benefit based on 25 years of credited service when records
showed that contributions
had been received for only 18 years of credited service. Judge John S.
Martin, Jr. of the District
Court for the Southern District of New York held that permitting a union
employee to obtain
pension credits absent the payment of contributions by his union employer is
a violation of section
302 of the Taft-Hartley Act.
-
Counsel is
engaged in another lawsuit challenging the validity of a second arbitrator’s
decision
which awarded healthcare benefits to a former union officer even though no
contributions were
ever made by his union employer on his behalf. NYSA Counsel is seeking an
order vacating the
award of the post-retirement welfare benefits on the ground that providing
healthcare benefits to
this former union official is a violation of section 302 of the Taft-Hartley
Act.
PENSION
BENEFITS
The Court of Appeals for the Second Circuit is currently considering the
validity of the NYSA-ILA
Pension Trust Fund’s ("PTF") application of its pre-ERISA
service-break rule. PTF has appealed the
district court’s ruling requiring it to amend PTF’s pension plan
retroactively to January 1, 1976. This
case has widespread significance because it is the first time since the
Employee Retirement Income
Security Act ("ERISA") was enacted in 1974 that a court has
invalidated a pre-ERISA service-break
rule. The district court’s decision is at odds with decisions in the Third
and Seventh Circuits. If the
district court’s ruling is affirmed, the split in the circuits might result
in this case being accepted for
review by the Supreme Court of the United States.
PORT-WIDE
ANTI-DISCRIMINATION
PROGRAM
NYSA has created a new comprehensive anti-discrimination employment program
that also addresses
workplace harassment. The purpose of the program is to ensure respect and
dignity for everyone in
the workplace. The program encompasses broad-based training programs as well
as a new complaint
handling and grievance process dedicated to investigating and remediating any
claims that might arise.
NYSA is working with the ILA to implement the program which should lessen the
likelihood of the
industry having to defend cases of employment discrimination like the two
which NYSA Counsel is
currently litigating.
- Counsel
successfully argued before a United States Magistrate Judge in the federal
district court
in New Jersey for the dismissal of all but one of the claims raised by a
longshoreman alleging
discrimination in connection with his application to return to employment in
the longshore
industry after a ten-year absence.
- Counsel has
responded to the EEOC’s document request in a charge of age discrimination
filed
with the Newark Area Office of the United States Equal Employment Opportunity
Commission
("EEOC"). A longshoreman has claimed he was denied enhanced pension
benefits based upon
his age. Counsel has provided to the EEOC the terms of the pension plan,
which are in compliance
with the governing federal law and applicable Internal Revenue Service
regulations.
|
| ENTRY
INTO THE
INDUSTRY
Many longshore collective bargaining provisions, including wage rates and
benefit eligibility, depend
upon the date of an individual’s entry into the industry. There are two
pending matters involving
that issue.
- Counsel is
currently engaged in discovery proceedings in an action in the Federal District
Court
in New Jersey against NYSA and the NYSA-ILA Container Royalty Fund by an
individual with
some minimal work hours in 1993 under temporary registrations issued by the
Waterfront
Commission of New York Harbor during summer vacation
periods. The longshoreman is seeking PTF coverage and
increased container royalty benefits even though he had no
hours of work in the industry for two successive years before
entering the industry as a regular employee in December 1996.
- Counsel is
advocating the position of the Management
Trustees of PTF in a deadlock arbitration that a crane mechanic
formerly employed in the Metro-ILA work unit who later
began his employment with NYSA-member companies in
May 1998 is not entitled to participate in PTF’s plan based on
the provisions of the NYSA-ILA Contract which preclude participation
for employees hired after October 1, 1996.
CAPTIVE
INSURANCE PROGRAM
More than 20 years ago the Directors, Officers and Counsel of
NYSA created an insurance program to protect its membership
from liabilities arising out of the implementation of master and
local collective bargaining agreements. A second component of the
program ensures the payment of contractually required contributions
to fringe benefit funds.
Directors’ and Officers’
Liability coverage is also
provided to NYSA through
the program as well as to
the trustees who represent
management on the various
employee benefit trust funds.
|
Seventy Years of
NYSA Legal History
While available records indicate that collective
bargaining of longshore contracts took
place as early as 1916, it was in 1932 that a
majority of port employers banded together
to form NYSA. Collective bargaining, dis-pute
resolution and benefits administration
were the raison’d’etre. In 1953, the
National Labor Relations Board certified
the Association as the employers’ collective
bargaining representative for employment
covering "longshoremen, cargo repairmen,
checkers, clerks and timekeepers and their
assistants, general maintenance, mechanical
and miscellaneous workers, horse and cattle
fitters, grain ceilers, and marine carpenters."
In 1955, the Association was incorporated
under the laws of the State of New York to
carry on the historic obligations of the
Association and to "function as an association
of owners and operators of ocean-going
vessels." In 1971, upon petition of
the Association, the Supreme Court of New
York County amended the certificate of
incorporation to read that NYSA would
"function as an association of contracting
stevedores, owners and/or operators of
ocean-going vessels" with broad powers to
represent all of its members in the Port of
New York and New Jersey, a role the
Association continues today.
Submitted by Lambos & Junge,
Attorneys to the Association
|