Appendix — Walker v. Hayes

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APPENDIX |! JUN12 197g

In THE

Supreme Court of the United States

October Term, 1977

No. 77-961

New York TELEPHONE Company, WESTERN Exectric Com-

PANY, AMERICAN TELEPHONE & TELEGRAPH COMPANY,

Lone Lives Department, and Emprme City Supway

Company (Limrrep),

Petitioners,

—_vV —_—

New York State DepartMent or Lasor, Lovis L. Levine,

Industrial Commissioner of the New York State De-

partment of Labor, New York State DeparTMENT oF

Taxation & Fryance, and James H. Tuy, Jr., State

Commissioner of Taxation & Finance,

Respondents.

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS

FOR THE SECOND CIRCUIT

PETITION FOR CERTIORARI FILED JANUARY 4, 1978

CERTIORARI GRANTED MARCH 27, 1978

In THE

Supreme Court of the United States

Ocroser Term, 1977

No. 77-961

a

New York TeterHone Company, WesTERN Eecrric Com-

pany, AMERICAN TELEPHONE & TELEGRAPH CoMPANY,

Lone Lines Department, and Empre Crry Susway

Company (Limrrep),

Petitioners,

—Y,—

New York Strate Department or Lazor, Louis L. Levine,

INDUSTRIAL COMMISSIONER OF THE New York State

DepaRTMENT OF Laspor, New York State DEPARTMENT

or Taxation & Finance, and James H. Tutty, Jr., Strate

CoMMISSIONER OF TaxaTION & Finance,

Respondents.

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS

FOR THE SECOND CIRCUIT

<p

INDEX*

PAGE

Relevant Docket Entries 2. ..........2......-cccssc-scsceee-o-e 1

CONE sicnncriisienstndsincsehnicsctailiph tiie taeltiaiaiihiainiaaitilala ala nsada te 8

*The opinion of the court of appeals is reprinted at pages

la-18a of the Appendix to the Petition for a Writ of Certiorari.

The ae ere and order for permanent injunction

issued by the district court is reprinted at pages 19a-22a of the

Appendix to the Petition for a Writ of Certiorari and the opin-

ion of the district court is reprinted there at 23a-54a. The

a and order of the district — ying defendants’

motion for ju t, is reprinted at pages 55a-56a of

the Aeuentla © @ ~ oy for a Writ of Certiorari.

PAGE

ETE 34

Excerpt from Pre-Trial Order .02.....0.......-..:c-ceceeeeeeeeeeeoes 48

PLarxtiFFs’ ExHisits

Exhibit Number

3 Transcript of Recorded Telephone Message,

13

20

24

26

38

41

August 26, 1971, CWA Local 1101 .................... 68

Transcript of Recorded Telephone Message,

September 27, 1971, CWA Local 1101 ............ 69

Transcript of Recorded Telephone Message,

July 22, 1971, CWA Local 1102 ........................ 70

Transcript of Recorded Telephone Message,

December 7, 1971, CWA Local 1102 ................ 71

Transcript of Recorded Telephone Message,

September 12, 1971, CWA Local 1108 ............ 71

Transcript of Recorded Telephone Message,

December 29, 1971, CWA Local 1108 ............ 72

Transcript of Recorded Telephone Message,

April 1, 1973, CWA Local 1108 ..................... 73

Transcript of Recorded Telephone Message,

August 25, 1971, CWA Local 11064 ................... 74

Transcript of Recorded Telephone Message,

September 17, 1971, CWA Local 1104 ............ 75

Transcript of Recorded Telephone Message,

September 1, 1971, CWA Local 1106 ............ 76

Transcript of Recorded Telephone Message,

August 15, 1971, CWA Local 1107 .................... 77

PuarntiFrs’ Exnuisits

ili

Exhibit Number

65 Transcript of Recorded Telephone Message,

69

71

79

80

82

86

87

93

97

104

112

114

September 25, 1971, CWA Local 1108 _.....

Transcript of Recorded Telephone Message,

October 25, 1971, CWA Local 1108 ......0.......

Transcript of Recorded Telephone Message,

September 3, 1971, CWA Local 1114 _........

Transcript of Recorded Telephone Message,

August 25, 1971, CWA Local 1120

Transcript of Recorded Telephone Message,

August 25, 1971, CWA Local 1120 —..........

Transcript of Recorded Telephone Message,

September 1, 1971, CWA Local 1120 _.....

Transcript of Recorded Telephone Message,

June 29, 1971, CWA Local 1123 -. a...

Transcript of Recorded Telephone Message,

July 30, 1971, CWA Local 1123

Transcript of Recorded Telephone Message,

September 1, 1971, CWA Local 1124

Transcript of Recorded Telephone Message,

August 24, 1971, CWA Local 1125 _00..

Transcript of Recorded Telephone Message,

September 13, 1971, CWA Local 1127 _..........

Transcript of Recorded Telephone Message,

October 25, 1971, CWA Local 1128

Transcript of Recorded Telephone Message,

July 15, 1971, CWA Local 1150 _

PAGE

78

90

91

iv

PuarntiFrFrs’ Exnrsits PAGE

Exhibit Number

122

128

142

143

144

146

147

148

(excerpts)

149

(excerpts)

150

(excerpts)

Transcript of Recorded Telephone Message,

September 29, 1971, CWA Local 1190 ............ 92

Transcript of Recorded Telephone Message,

July 2, 1971, CWA Local 1191 93

Transcript of Recorded Telephone Message,

October 22, 1971, CWA Tri-Local Council .... 94

Letter from CWA Vice President Morton

Bahr to Local Presidents, April 8, 1971 ........ 95

Memorandum from E.J. Mays, Assistant to

CWA Vice President Bahr, to Local Presi-

dents, June 21, 1971 a 97

Letter from CWA Defense Fund Director

Glenn E. Watts to Local Presidents, July

14, 1971 98

Memorandum from E.J. Mays, CWA Defense

Fund Agent, to All Locals Involved in New

York Telephone Strike, September 7, 1971.... 100

Letter from CWA Vice President Morton

Bahr to the Members of the New York Plant

Unit, September 7, 1971 ......cccceccceecceceeeeees 101

New York Plant Strike Bulletin #3, from

CWA Vice President Morton Bahr, Septem-

2g |. Feeeonn oli 104

New York Strike Bulletin #5, from CWA

Vice President Morton Bahr, October 14,

IRE ie a Se be

Piarntirrs’ Exursits PAGE

Exhibit Number

151 New York Plant Strike Bulletin #6, from

152

153

156

158

(excerpts)

159

161

(excerpts)

164

165

(excerpts)

CWA Vice President Morton Bahr, October

ey eee 108

Letter from CWA Vice President Morton

Bahr to All Local Presidents, District One,

ED Te, TG cccnntictctenseennann 111

New York Plant Strike Bulletin #9, from

CWA Vice President Morton Bahr, Novem-

ber 11, 1971 ...... . >

Letter from CWA President Joseph A.

Beirne to Members in New York, December

14, 1971 115

Letter from CWA Vice President Morton

Bahr to All Members, New York Plant & Em-

pire City Subway Bargaining Unit, Febru-

ary 4, 1972 117

Letter from CWA Vice President Morton

Bahr to All CWA Members, New York Plant,

March 7, 1972 oe 119

Minutes, Collective Bargaining Meeting, Con-

tract Negotiations with CWA, September 9,

1971 . 125

Strike and Defense Fund Chapter, CWA Ex-

ecutive Board Report, 1972 Annual Conven-

rece SENN Es BEG SERENE Te eee aOn TOT Oe Oe 127

New York Generator, Official Publication of

CWA Local 1101, December 1973 .................... 130

me TTT, Eta

PuarntiFFs’ ExHIsITs PAGE

Exhibit Number

172

184

238

(excerpts)

239

241

242

246

(excerpt )

Transcript of Today Show, NBC News

Broadcast of February 4, 1970 ........................ 131

Report of the Defense Fund Committee for

Presentation to the Sixth Annual CWA Con-

CI, TE ‘dechetcincissiittnbitiiiabtaiatieisaditbbahiacniicsn 133

CWA Defense Fund Rules and Local Defense

Fund Ground Rules, 1970 20..............ccceeceeceeees 136

“Strikers on Welfare”, Wall Street Journal,

SE TEI: UTED scoseisiisnctecsiinisstrinegecssicagessitanincaimgsitsnianis 137

USWA Advertisement, Syracuse Post Stand-

Se Sis. SEE dssicincineeccninnnecmecdinmeenitn 147

“116 Days on Strike—45 Million in Public

Aid”, U.S. News & World Report, Octoher

i | SUE -sineiheeiceeeniceteeiiiepiincepentidasashiabietansiniaieaniaceaanadaianian 149

USWA Strike and Defense Fund Rules and

Planning Check List, 1969 22... sseeeseeees 154

Letter from USWA International Secretary-

Treasurer Walter J. Burke to All District Di-

rectors, Staff Representatives, Local Union

Presidents and Recording Secretaries, May

RT EN RYE oe TO 158

“Workers Forego Strike Benefits”, Buffalo

Courier Express, December 16, 1969 ................ 161

Transcript, Labor News Conference, “Family

Assistance to GE Strikers”, Mutual Broad-

casting System, December 16, 1969 ................ 162

“Welfare and Strikes; The Use of Public

Funds to Support Strikers”, A. Thieblot, Jr.,

PuaIntiFFs’ ExuHrsits PAGE

Exhibit Number :

251

and R. Cowin (Industrial Research Unit, The

Wharton School, University of Pennsylvania,

BD ticitieinatinireetiieiesentamniienteleninbaiesimnitaiitiielanin 165

An Open Letter to All Members of IBEW

1357 and Employees of Hawaiian Telephone

Company from the Workers Committee to

Defend the Right to Strike, September 1974 .. 166

A Petition in Defense of the Right to Strike,

September 1974 000.0... wit 168

“Beyond the Picket Line: How to Organize

a Strike Assistance Program”, AFL-CIO,

I naideicnillannsctiiincistitiliaanaseat

Transcript of Recorded Telephone Message,

October 24, 1973, CWA Local 1101 0.000000. 178

Transcript of Recorded Telephone Message,

October 25, 1973, CWA Local 1102 .. 178

Transcript of Recorded Telephone Message,

December 10, 1971, CWA Local 1108 ............ 179

Transcript of Recorded Telephone Message,

January 4, 1972, CWA Local 1103 ................ 180

Transcript of Recorded Telephone Message,

March 24, 1972, CWA Local 1106 182

“Community Services Advance Strike Re-

lease: What to Do When the Strike Is On,”

CWA Local 1101, 1971 183

The Payment of Unemployment Compensa-

tion Benefits in Labor Disputes—Impect on

Industrial Development in Rhode Island,

Puarntirrs’ ExHisits PAGE

Exhibit Number

321

(excerpts)

322

325

331

(excerpts)

Rhode Island Public Expenditure Council,

Project Rhode Island, July 1972 186

Strike Preparation Manual, American So-

ciety for Personnel Administration, 1974 .... 193

Letter from IBEW Local 77 Assistant Busi-

ness Manager Robert P. Taylor to All Mem-

bers Employed at Puget Sound Power &

Light Co., Seattle, Washington, May 31, 1974 201

Statement of Joseph Molony, on Behalf of the

United Steel Workers of America, Decem-

ber 1, 1959, in Report of the New York State

Joint Legislative Committee on Industrial

and Labor Conditions, 1959-1960 .................... 203

Transcript of Recorded Telephone Message,

December 16, 1974, CWA Local 1170 ............ 208

Transcript of Recorded Telephone Message,

December 30, 1974, CWA Local 1170 -........... 209

Transcript of Recorded Telephone Message,

January 6, 1975, CWA Local 1170 -.............. 209

Transcript of Recorded Telephone Message,

January 13, 1975, CWA Local 1170 ~............... 210

Transcript of Recorded Telephone Message,

January 15, 1975, CWA Local 1170 ........... 211

Strike News Bulletin from IBEW Local 1357

Business Manager-Financial Secretary John

F’. Guzman, Honolulu, Hawaii, May 11, 1974 .. 212

An Open Letter to Our Brothers and Sisters

at Hawaiian Tel, from Gwen Pascua, Chair-

Piarmtirrs’ Exuisits PAGE

Exhibit Number

342

(excerpts)

(excerpts)

person, Workers Committee to Defend ine

Right to Strike, September 16, 1974 _......... 214

Inter-Office Memorandum from W. Lakey to

Mr. M. Rourke, New York State Department

of Labor, Unemployment Insurance District

Superintendent, Concerning Outside Speak-

8 re nee 217

The Industrial Controversy Provision of the

New York State Unemployment Insurance

Law 1935-1973, Labor Research Report 1973

—No. 19, New York State Department of

Labor, Division of Research and Statistics,

December 1973 , 218

“Indusirial Unions Adapt to The Age of

Automation,” UAW Ammunition, Official

Publication of UAW’s Education Depart-

ment, June 1957 223

Transcript of Recorded Telephone Message,

December 19, 1974, CWA Local 1170 ........... 226

Transcript of Recorded Telephone Message,

May 12, 1975, CWA Local 1170 227

“The Changing Nature of Strikes,” Address

by Federal Mediation and Conciliation Ser-

vice Director J. Curtis Counts to NAM In-

‘stitute on Industrial Relations, June 14, 1971 228

Letter from CWA Local 1107 President

Charles Black to the Members of Local 1107,

September 5, 1971 ... 230

Puarntirrs’ ExHIBITs PAGE

Exhibit Number

369 Mean Length of Strikes by Location for All

370

Strikes, Strikes of Eight Weeks or Less and

More Than Eight Weeks (1968-1973 BLS

IIIS kilosaekicniciinciap leet insite iaiiatathiactautiaiaiatiiliianiciniaiiis 231

Mean Length and Number of Strikes for

Strikes of More Than Eight Weeks (1968-

1973 BLS data) ......... 232

Attitudinal Survey, Table 1.0.02... 235

Attitudinal Survey, Table 2 ..... w- 236

Attitudinal Survey, Table 3 ............................. 237

Attitudinal Survey, Table 4 ..... 238

Attitudinal Survey, Table 5 ..02...........ceeseee 239

Attitudinal Survey, Table 6 .2.................ccsesssee 240

Attitudinal Survey, Table 7 ..20.........ccccceeeeeee 241

Attitudinal Survey, Table 8.20.02... eee 242

Attitudinal Survey, Table 9.00.0... 243

Attitudinal Survey, Table 10 ...... ie 244

Attitudinal Survey, Table 11 satsthaibibiiien 245

Mean Length of Strikes by Location for All

Strikes, Strikes of Eight Weeks or Less and

More Than Eight Weeks (1965-1974 BLS

Le NU SE OT a eT 246

Mean Length and Number of Strikes for

Strikes of More Than Eight Weeks (1965-

BOO ND cstiiniicentaielitisibesiatiaa 247

DerenDANTS’ EXHIBITS PAGE

Exhibit Number

1 Table 405, Disqualification for Unemployment

Caused by Labor Dispute, in Comparison of

State Unemployment Insurance Laws, United

States Department of Labor, January 1972 .. 248

11 Transcript of Recorded Telephone Message,

November 3, 1971, CWA Local 1101 ............ 252

23 Transcript of Recorded Telephone Message,

July 26, 1971, CWA Local 1108 ... .. 253

27 Transcript of Recorded Telephone Message,

December 28, 1971, CWA Local 1106 ............ 254

28 Transcript of Recorded Telephone Message,

December 4, 1971, CWA Local 1106 ............ 254

32 Transcript of Recorded Telephone Message,

September 5, 1971, CWA Local 1106 ............ 255

33 Transcript of Recorded Telephone Message,

August 17, 1971, CWA Local 1106 ................ 256

34 Transcript of Recorded Telephone Message,

August 9, 1971, CWA Local 1106 ................ 257

35 Transcript of Recorded Telephone Message,

August 5, 1971, CWA Local 1106 .................... 258

36 Transcript of Recorded Telephone Message,

August 5, 1971, CWA Local] 1106 ................ 260

37 Transcript of Recorded Telephone Message,

August 2, 1971, CWA Local 1106 ................... 261

38 Transcript of Recorded Telephone Message,

July 29, 1971, CWA Local 1106 .. 262

DeFENDANTS’ EXHIBITS PAGE

Exhibit Number

39 Transcript of Recorded Telephone Message,

July 27, 1971, CWA Local 1106 . 264

40 Transcript of Recorded Telephone Message,

July 26, 1971, CWA Local 1106 ........................ 265

77 Statement of New York Telephone Company,

SS ae 265

86 Transcript of Recorded Telephone Message,

December 24, 1974, CWA Local 1170 ............ 271

89 Transcript of Recorded Telephone Message,

February 5, 1975, CWA Local 1170 ................ 271

90 Transcript of Recorded Telephone Message,

February 6, 1975, CWA Local 1170 ................ 272

96 Transcript of Recorded Telephone Message,

March 27, 1975, CWA Local 1170 .................... 273

97 Transcript of Recorded Telephone Message,

April 10, 1975, CWA Local 1170 .................... 274

99 Transcript of Recorded Telephone Message,

May 9, 1975, CWA Local 1170 ..........2........-..00-+ 275

100 Answer and Objections to Defendants’ First

Interrogatories ... ‘iinemiens 276

113A Mean Length of Work Stoppages by Loca-

tion for All Stoppages, Stoppages of Eight

Weeks or Less and More Than Eight Weeks

(1965-1974) 291

113B Comparison by State of Mean Length of Work

Stoppage for Stoppages Lasting Over Eight

aa ae 292

no ee

Derenpants’ Exursits Pag

Exhibit Number

122A Analysis of Strikes Lasting More Than Eight

Weeks in New York and Rhode Island Com-

pared to the Rest of the Nation 294

Testimony of Raymond E. Williams, Witness on Be-

half of Plaintiffs 298

Direct Examination 298

Cross Examination 318

Excerpts from Deposition Testimony of Communica-

tions Workers of America, by and through its Vice

President, Morton Bahr, on Direct Examination by

Mr. Schair; read into the trial transcript by Mr.

Schair 318

Testimony of Jules Backman, Witness on Behalf of

Plaintiffs 326

Direct Examination 326

Cross Examination ' 346

Redirect Examination.............-..-------cccecccceceeee 354

Testimony of Gerald J. Glasser, Witness on Behalf of

Plaintiffs 356

Cross Examination 356

Testimony of Herman A. Gray, Witness on Behalf of

Defendants 361

Direct Examination 361

Cross Examination 366

Redirect Examination 371

Testimony of Mason Haire, Witness on Behalf of

Defendants 373

Direct Examination 373

Cross Examination 380

xiv

PAGE

Testimony of William H. Melody, Witness on Behalf

I titan id ccc 391

Direct Examination ae ; . 391

RIT OS OR 396

Testimony of Harold Kasper, Witness on Behalf of

Defendants ........ 396

Direct Examination 396

Cross Eimamimations .......1.-ccc.cc.ccccccesecsescesese 401

Testimony of Morton Bahr, Witness on Behalf of De-

fendants ............... 407

Direct Examination ... = .... 407

I I i 414

Recross Examination ................... 421

Testimony of James Wesley Kuhn, Witness on Behalf

© EE ei, 421

Direct Examination ......................... 421

I I i i 433

Redirect Examination .......... ‘ 469

Testimony of Lewis J. Perl, Witness on Behalf of

RTE SR ae eh Oe We a ee es BM 470

ne NS Soe 470

I I iii 471

Testimony of Samuel B. Richmond, Witness on Behalf

8 EN OT Cie Tae eae 475

en Te sii 475

Order Allowing Certiorari, March 27, 1978 .................... 483

Docket Entries

UNITED STATES DISTRICT COURT

SovutHern District or New York

73 Cry 4557

DATE PROCEEDINGS

Oct. 24-73 Filed complaint & issued summons.

Dec. 6-73 Filed summons & ent. marshal’s return served

on:

NY State Dept of Labor by Bertha Diggs on

10-30-73,

Norman Gallman unexecuted on 10-30-73,

Mario A. Procaccino by J. Fichera on 11-20-73,

N.Y. State Dept of Taxation & Finance by

I. Nieves on 11-20-73,

Louis J. Lefkowitz by Mr. Sattler on 11-19-73,

& Louis L. Levine by Bertha Diggs on 10-30-73.

Dec. 10-73 Filed Answer of defts to the complaint.

5/22/74 Pre-Triat Hetp, Owen, J.

9/12/74 P.T.C. Het

Sep. 16-74 Filed stip & order—All proceedings with re-

spect to the determination of the amount of

damages in this case shall be deferred until

such time as the constitutional issues are fully

resolved by this Court.—Owen, J.

Sep. 27-74 Filed Defts. Notice of Motion & Supporting

affidavit. Re: Judgment. ret. 11/1/74.

Sep. 27-74 Filed Defts. Memorandum of Law.

Oct. 25-74 Filed pltff’s affdvt in opposition to deft’s mo-

tion for summary judgment.

DATE

2

Docket Entries

Oct. 25-74 Filed pltffs’ memorandum of law in opposition

Nov. 6-74

Jan. 20-75

Mar. 31-75

6-18-75

1-12-75

12- 9-75

01-14-76

02-26-76

02-27-76

03-11-76

03-12-76

03-15-76

03-16-76

03-17-76

04-02-76

04-16-76

to motion for summary judgment.

Filed Reply Memorandum of Law in support

of State Defts. Motion for summary judgment.

Filed Affidavit by Raymond E. Williams in

support of pltffs. opposition to defts motion

for summary judgment.

Filed MeMornanpum Oprwion #42,125—Defts’

motion for summary judgment is denied. So

Ordered—Owen, J.—Mailed notices.

Pre-Triat Conrerence Hetp sy Hartenstine

Pre-Triat Conrerence Hetp sy HarTenstrive,

U.S. Mage.

PTC Held Owen, J.

Filed revision to Consented Pre-Trial Order

Owen, J.

Before Owen J., non-jury trial begun.

Trial continued.

Trial continued.

Trial continued.

Trial continued.

Trial continued.

Trial continued.

Trial continued.

Trial continued & concluded. Decision re-

served,

3

Docket Entries

PROCEEDINGS

Filed transcript of record of proceedings

dated Feb. 26, 27, March 11, 12, 15, 1976.

Filed transcript of record of proceedings

dated March 16, 17, April 2, 16, 1976.

Filed Pltffs’. post-trial memorandum of law.

Filed Pitffs’. appendices A & B to post-trial

memorandum of law.

Filed Appendices A and B to Pitifs’. post-trial

memorandum of law.

Filed Ptlffs’. proposed findings of fact & con-

clusions of law.

Filed Appendix to Dfts. Post Trial Memoran-

dum of Law.

Filed Dfts. Post Trial Memorandum of Law.

Filed Dfts. Proposed findings of Fact & Con-

clusions of law.

Filed Pltffs’. post-trial reply memorandum

of law.

Filed Opinion #45939. On the basis of the

New York Labor Law, on the basis it provides

for the payment of unemployment compensa-

tion to strikers, is state intervention, causes

an employer to finance it’s own strikers. It is

in conflict with federal labor law policy and is

therefore unconstitutional and void under the

supremacy clause of the U.S. Constitution........

So ordered.......Owen, J. m/n.

DATE

6-22-77

6/27/77

6/27/77

6/28/77

7- 8-77

7- 8-77

7-22-77

8-31-77

+

Docket Entries

PROCEEDINGS

Filed deft notice of appeal to the USCA from

order of J. Owen dated 5-24-77. m/n

Filed amended notice of appeal to the USCA

form the order of J. Owen dated 5/24/77 by

State Defts. m/n

Filed declaratory judgment and order for per-

manient injunction declaring Article 18 of the

N.Y. Labor Law to the extent it provides for

the payment of unemployment compensation

to strikers is unconstitutional and void; defts

within 8 weeks of entry of this order shall

recredit pltff respective unemployment insur-

ance accounts retroactive to 1971 ete. Owen J.

Judgment ent. Clerk 6/27/77 m/n

Filed memo and order . . . I decline to grant

a stay pending appeal, I do grant a stay until

2PM on 6’27'77 for purpose of allowing State

to apply to Court of Appeals to determine if

that Court wihes to grant a stay. So ordered

Owen J. m/n

Filed Stiputation Desionatine Certars Docw-

MENTs & Exuisits to Become Part or Recorp

on APPEAL.

Filed notice of transmission of record to

USCA.

Filed supplemental record on appeal with

USCA

Filed transcript of record of proceedings

dated 6-9-77

DATE

12-16-77

5

Docket Entries

PROCEEDINGS

Filed True Copy of U.S.C.A. Mandate with

opinion attached. Ordered that judgment of

district court is reversed & the action is re-

manded with instruction to dismiss the com-

plaint in accordance with the opinion of this

court with costs to be taxed against the ap-

pellees. Docketed as a Judgment #78,376 on

12-19-77 sent to Aponte.

UNITED STATES COURT OF APPEALS

6-28-77

6-30-77

For tHE Seconp Circuit

77-7337

PROCEEDINGS

Filed copies of docket entries and notice of

appeal (Defendants)

Filed motion for stay, appellant, p/s

Filed order granting appellants’ motion for

a stay to the extent that that the judgment and

order of the district court are stayed until

6-30-77 at which time the motion for a stay

will be heard at 10:30 A.M. in Room 1705

Filed copies of docket entries and amended

notice of appeal

Filed order granting motion for stay. Appel-

lant’s brief by 7-8-77; reply brief, if any, by

7-18-77; appellees’ brief by 7-14-77; joint ap-

pendix by 7-14-77; argument of appeal shall

DATE

7- 8-77

7-11-77

7-13-77

7-15-77

7-15-77

7-15-77

7-18-77

7-18-77

7-18-77

7-19-77

7-19-77

7-19-77

7-20-77

7-22-77

6

Docket Entries

PROCEEDINGS

be set for the week of 7-18-77; all papers may

be in tw form

Filed record (Original papers of district

court)

Filed briefs, appellant, p/s

Filed briefs, amicus curiae, p/s (N.Y.S., AFL-

CIO)

Filed briefs, amicus curiae, p/s (Rochester

Telephone Corp., et al.)

Filed briefs, amicus curiae, p/s (Dow Chem-

ical Co.)

Filed supplemental record (Original papers

of district court)

Filed briefs, appellee, p/s

Filed appendix, appellee, p/s

Filed four volumes of joint appendix, appel-

lant, p/s (Vol. I. —10 copies, Vol. II, It, IV—

four copies)

Filed reply briefs, appellant, p/s

Filed briefs, amicus curiae, p/s (Local 1, ete.)

Filed final briefs, appellee, p/s

— briefs, amicus curiae, p/s (District 65,

et al.)

Argument heard (By: Meskill, C.J., Van Pelt

Bryan, Stewart, DJJ)

DATE

7-22-77

7-22-77

11- 9-77

1l- 9-77

12- 9-77

12- 9-77

12- 9-77

12-12-77

12-20-77

1- 9-78

3-31-78

7

Docket Entries

PROCEEDINGS

Filed second supplemental record (Original

papers of district court)

Filed order granting motion to continue stay

now in effect pending determination of the

appeal

Judgment reversed and remanded with in-

structions to dismiss the complaint, Meskill,

C.J.

Filed judgment.

Filed order denying motion for clarification

of stay granted by this court pending determi-

nation of the appeal

Filed order denying motion to stay issuance

of the mandate pending application to the

Supreme Court of the U.S. for a writ of cer-

tiorari pursuant to Rule 41(b) of FRAP

Filed order denying motion for a stay

Issued mandate (opinion, judgment and state-

ment of costs)

Original, supplemental and second supplemen-

tal record returned to district court

Filed notice of filing of petition for writ of

certiorari (77-961)

Filed certified copy of order from Supreme

Court granting petition for writ of certiorari

8

Summons

UNITED STATES DISTRICT COURT

For tHe Sovtnern District or New York

Civil Action File No. 73 Civ. 4557

<>.

New York TeLepnone Company, Western Exectric Com-

PANY, AMERICAN TELEPHONE & TELEGRAPH ComPaNy,

Lone Lives Department, and Empire City Susway

Company (Limrtep),

Plaintiffs,

—Y,<=

New York State Department or Lasor, Lovrs L. LEVINE,

Industrial Commissioner of the New York State De-

partment of Labor, New Yorx State DeparTMENT oF

Taxation & Finance, and Norman Gaiman, State

Commissioner of Taxation & Finance, }

Defendants.

>—

To the above named Defendants:

You are hereby summoned and required to serve upon

Aranow, Brodsky, Bohlinger, Benetar, Einhorn & Dann,

plaintiffs’ attorney, whose address 469 Fifth Avenue, New

York, New York 10017, an answer to the complaint which

is herewith served upon you, within 20 days after service

of this summons upon you, exclusive of the day of service.

If you fail to do so, judgment’ by default will be taken

against vou for the relief demanded in the complaint.

Raymonp F. Buresarpr

Clerk of Court.

E. A. Becker

Deputy Clerk.

Date: October 24, 1973

Complaint

UNITED STATES DISTRICT COURT

Sovrnern District or New York

73 Civ. 4557

<>

New York TeterHone Company, WesTerN Execrric Com-

pany, AMERICAN TELEPHONE & TELEGRAPH COMPANY,

Lone Lives Department, and Empime Crry Supway

Company (LimITeED),

Plaintiffs,

—against—

New York Srate DeparTMENT oF Lasor, Louis L. Levine,

Industrial Commissioner of the New York State De-

partment of Labor, New York State DEPaRTMENT OF

Taxation & Frxance, and Norman Gatiman, State

Commissioner of Taxation & Finance,

Defendants.

<i >—

The plaintiffs, by their attorneys, Aranow, Brodsky,

Bohlinger, Benetar, Einhorn & Dann, complaining of de-

fendants, respectfully allege:

1. This action arises under the Supremacy Clause of

the Constitution of the United States, Article VI, Clause 2,

under the Due Process Clause and Equal Protection Clause

of the Fourteenth Amendment to the Constitution of the

United States, and under the Labor Management Relations

Act of 1947, as amended, 29 U.S.C. §151 et seq. (““LMRA”),

an act of Congress regulating commerce. It seeks, among

10

Complaint

other relief, to declare invalid and enjoin the application

of Article 18 of the New York Labor Law insofar es

unemployment insurance benefits thereunder are provided

to striking employees. This court has jurisdiction of the

action under 28 U.S.C. $1331, 28 U.S.C. $1387, and 28

U.S.C. $§ 2201 nnd 2202; and the matter in controversy

exceeds, exclusive of interest and costs, the sum of ten

thousand dollars ($10,000.00) in respect to each of the

plaintiffs.

As a First Cavse or Action:

2. Plaintiff New York Telephone Company (“TELCO”)

is a domestic corporation organized and existing under

the laws of the State of New York with its principal place

of business in the Southern District of New York.

3. The Bell System is a descriptive term commonly un-

derstood in the telephone industry, both by employers and

unions, as encompassing telephone operating and other

companies, including among others TELCO, Western Elec-

tric Company (“WECO”), the Long Lines Department

of the American Telephone and Telegraph Company

(“AT&T”) and the Empire City Subway Company (Lim-

ited) (“Empire”).

4. Defendant Lonis L. Levine is the Industrial Commis-

sioner of the New York State Department of Labor (“the

Industrial Commissioner”). The Industrial Commissioner

has an office in the Southern District of New York for the

conduct of official business.

11

Complaint

5. The Industrial Commissioner is charged under the

laws of the State of New York with the administration

of Article 18 of the New York Labor Law (“the Unem-

ployment Insurance Law”). Included among his duties is

directing disbursements from the Unemployment Insur-

ance Fund for the payment of benefits to certain striking

employees among other claimants.

6. Defendant Norman Gallman is the State Commis-

sioner of Taxation and Finance and, as such, heads the

New York State Department of Taxation and Finance.

The State Commissioner of Taxation and Finance has

an office in the Southern District of New York for the

conduct of officie] business.

7. The State Commissioner of Taxation and Finance

is designated under the Unemployment Insurance Law as

custodian of the funds requisitioned by the Industrial

Commissioner for use in the payment of unemployment

insurance benefits to certain striking employees among

other claimants.

8. TELCO is an employer subject to the Unemployment

Insurance Law and is required thereunder to pay unem-

ployment insurance taxes on compensation paid to its em-

ployees.

9. TELCO is also subject to the LMRA and is obligated

to bargain collectively, among others, in a New York state-

wide unit wherein the Communications Workers of Amer-

12

Complaint

ica (“CWA” or “International Union”) is the certified

bargaining representative of certain non-supervisory em-

ployees of TELCO and of Empire, its wholly owned sub-

sidiary, including all those employed in TELCO’s plant

and engineering departments.

10. The collective bargaining agreement entered into in

1968 between CWA and TELCO and Empire was sched-

uled to expire on July 28, 1971, upon the giving of prior

notice. Such notice was given by CWA on or about May 24,

1971 and negotiations for a new contract commenced on

July 6, 1971.

11. CWA has labor contracts with various companies

in the Bell Svstem throughout the United States in addi-

tion to TELCO and Empire. In 1971, as in previous nego-

tiations, the CWA International and the Bell System

companies bargained on a pattern basis, with the WECO

negotiations selected as one of the two patternmaking

negotiations in that year. In such negotiations, once

agreement is reached between the CWA International and

the patternmaker, settlement usually follows in all CWA

bargaining units at all Bell System companies.

12. In the spring of 1971 the various collective bargain-

ing agreements between CWA and the several companies

of the Bell System were due to expire on different dates:

the earliest was the contract covering WECO installers

which expired on April 30, 1971. The agreements which

expired prior to July 14, 1971 had been extended on a

day-by-day basis to July 14, 1971. As of July 14, 1971,

18

Complaint

collective bargaining in connection with new contracts had

been in process between CWA and several of the Bell

System companies.

13. On July 14, 1971 a nationwide strike by all 500,000

CWaA-represented employees was commenced by the Inter-

national Union against all Bell System companies including

TELCO and Empire whose joint contract with CWA had

not yet expired.

14. On July 18, 1971 agreements were reached subject

to ratification between CWA and the various Bell System

companies, including TELCO and Empire, and the CWA

ordered all striking employees back to work on or about

July 21, 1971.

15. Substantially all of the striking employees of the

various Bell System companies throughout the country

returned to work on or about July 21, 1971.

16. On and after July 21, 1971 CWA-represented em-

ployees of the various Bell System companies in New York

continued to stay away from their jobs at the direction

of their local unions notwithstanding the order of the

International Union that they return to work.

17. On August 14, 1971, the respective agreements be-

tween CWA and the various Bell System companies, with

the exception of TELCO and Empire, were ratified by

the covered employees. The TELCO and Empire em-

ployees rejected the contract negotiated on their behalf

14

Complaint

notwithstanding the recommendation of the International

Union to ratify it.

18. TELCO and Empire employees thereafter continued

to strike.

19. On February 16, 1972, CWA-represented employees

at TELCO and Empire voted to ratify a contract between

CWA and their respective employers. On February 17,

1972, a strike settlement agreement covering both Empire

and TELCO was reached providing that all CWA-repre-

sented employees would return to work on February 18,

1972.

20. The New York State phase of the aforementioned

CWA strike against the Bell System was illegal and was

so declared by the respective Administrative Law Judges

in two separate cases now pending before the National

Labor Relations Board (Case #2-CB-5172 and Case #3-

CB-1851-11).

21. Section 592.1 of the Unemployment Insurance Law

is entitled “Suspension of Accumulation of Benefit Rights”

and provides:

“Industrial controversy. The accumulation of benefit

rights by a claimant shall be suspended during a

period of seven consecutive weeks beginning with the

day after he lost his employment because of a strike,

lockout, or other industrial controversy in the estab-

lishment in which he was employed, except that benefit

rights may be accumulated before the expiration of

15

Complaint

such seven weeks beginning with the day after such

strike, lockout, or other industrial controversy was

terminated.”

22. During the period of the strike TELCO strikers

applied for unemployment insurance benefits and such ben-

efits were granted after the seven-week suspension period

provided in Section 592.1 of the Unemployment Insurance

Law over the objections of TELCO.

23. Upon information and belief payments of these ben-

efits were made to upwards of 30,000 TELCO employees.

24. The aforementioned payments were made in viola-

tion of the United States Constitution under a state statute

which conflicts with the federal labor policy established

by Congress in the LMRA.

25. The said payment of benefits to the strikers con-

stituted state subsidization of the strike and, upon infor-

mation and belief, prolonged the strike against TELCO.

The strikers were thereby supplied with financial support

for their insistence upon and holding out for a settlement

which was larger than and different from the one originally

negotiated on their behalf by CWA, recommended by that

union for adoption and accepted by all of the CWA-repre-

sented Bell System employees throughout the United

States outside of New York.

26. This unlawful state subsidy amounted to a maxi-

mum of $75.00 per week net to each benefited employee.

16

Complaint

27. During the 1971-72 strike of TELCO employees

about $43,000,000 in benefits were paid to TELCO strikers

and charged against TELCO’s individual account in the

Unemployment Insurance Fund.

28. The balance in TELCO”’s individual account in Sep-

tember, 1971 prior to the payment of benefits to the strikers

was approximately $40,800,000 whereas the account bal-

ance as computed in March, 1972 after the strike ended

showed a negative balance of about $1,600,000.

29. As a result of the unemployment insurance pay-

ments to strikers TELCO’S unemployment insurance nor-

mal tax rate increased from 0.9% in 1971, one of the

lowest possible tax rates, to 2.3% in 1972, the highest tax

rate possible in 1972 for a positive account employer, and

to 2.8% in 1973. Upon information and belief, had the

aforementioned benefits to strikers not been paid, TELCO’s

unemployment insurance normal tax rate would have been

0.8% in 1972.

30. The aforesaid increase in its unemployment insur-

ance norma! tax rate has caused TELCO to suffer damages

in the amount of approximately $6,300,000 through in-

creased unemployment insurance tax payments in 1972.

TELCO, unless granted the relief herein prayed for, will

be damaged by the additional amount of approximately

$9,300,000 in 1973 and thereafter will continue to be dam-

aged by higher unemployment insurance tax payments for

many years.

17

Complaint

31. Upon information and belief, the payment of benefits

pursuant to Section 592.1 of the Unemployment Insurance

Law prolonged the strike and severely burdened certain

aspects of telephone service, including the repair, mainte-

nance and installation of telephone equipment.

32. The LMRA guarantees to parties covered thereby

the right to engage in free collective bargaining without

state interference or state subsidization of any party as

against another.

33. The payment by defendants of unemployment in-

surance benefits pursuant to Section 592.1 of the Unem-

ployment Insurance Law deprived TELCO of said right,

frustrated substantially the federal policy of free collec-

tive bargaining, constituted an unlawful intrusion by the

State of New York into an area preempted by the LMRA,

and forced TELCO into financing a strike against itself—

all in violation of the Supremacy Clause, Article VI, Clause

2, of the United States Constitution. Consequently, TELCO

has suffered irreparable injury for which there is no

adequate remedy at law.

As a Seconp Cause or Action:

34. Plaintiff WECO is a domestic corporation organized

and existing under the laws of the State of New York

with its principal place of business in the Southern Dis-

trict of New York.

18

Complaint

35. Plaintiff WECO repeats and realleges each and

every allegation in paragraphs “3”, “4”, “5”, “6”, and “7”

of this complaint; and further alleges:

36. WECO is an employer subject to the Unemployment

Insurance Law and is required thereunder to pay unem-

ployment insurance taxes on compensation paid to its

employees.

37. WECO is subject to the LMRA and is obligated to

bargain collectively with CWA, the certified bargaining

representative of certain of its employees.

38. WECO installers, job clerks and service center em-

ployees are represented exclusively by CWA in separate

nationwide bargaining units. Collective bargaining be-

tween WECO and its employees is conducted on a nation-

wide basis by CWA.

39. The agreement between the installers and WECO

due to expire on April 30, 1971, was extended on a day-by-

day basis subject to termination by giving 24-hours written

notice. Such notice was given by CWA on June 12, 1971

and collective bargaining negotiations ensued.

40. Plaintiff WECO repeats and realleges each and

every allegation in paragraphs “11” and “12” of this com-

plaint.

i. On July 14, 1971 CWA commenced a nationwide

strike against all Bell System companies including WECO.

19

Complaint

42. On July 18, .971 CWA and WECO entered into a

collective bargaining agreement subject to ratification.

CWA’s Executive Board voted to terminate the strike

pending such ratification and ordered all striking em-

ployees back to work on or about July 21, 1971.

43. Substantially all of the striking employees at WECO

throughont the country returned to work on or about July

21, 1971, except those in New York State.

44. On and after July 21, 1971 substantially all CWA-

represented employees at WECO in New York State, ex-

cept manufacturing employees, continued to stay away

from their jobs, notwithstanding the order of the Inter-

national Union that they return to work.

45. On August 14, 1971 CWA-represented employees at

WECO in New York and elsewhere in the nation ratified

new collective bargaining agreements which were not due

to expire until 1974.

46. Each such agreement contained a no-strike clause

which provided:

“No officer, representative or member of the Union shall

authorize, instigate, condone or engage in a strike,

work stoppage or interruption of work operations, in-

cluding absences to attend Union meetings that would

have the same effect as a strike or work stoppage,

during the period of this contract.”

20

Complaint

47. After August 14, 1971, notwithstanding the ratifica-

tion of said agreements, the termination of the strike by

CWA and the return to work of all of its members em-

ployed by WECO elsewhere, substantially all WECO

employees in New York State, except those in manufac-

turing, continued to stay away from their jobs.

48. Such striking employees returned to work after ter-

mination of the TELCO strike on or about February 17,

1972.

49. Plaintiff WECO repeats and realleges each and

every allegation in paragraph “21” of this complaint.

50. During the period of the strike WECO strikers ap-

plied for unemployment insurance benefits and such bene-

fits were granted after the seven-week suspension period

provided in Section 592.1 of the Unemployment Insurance

Law over the objections of WECO.

51. Upon information and belief, payments of these ben-

efits were made to upwards of 4,500 WECO employees.

52. The aforementioned payments were made in viola-

tion of the United States Constitution under a state statute

which conflicts with the federal labor policy established by

Congress in the LMRA.

53. The said payment of benefits to the strikers con-

stituted state subsidization of the strike and, upon infor-

mation and belief, prolonged the strike against WECO.

21

Complaint

The strikers were thereby supplied with financial support

for their-insistence upon and holding out for a settlement

which was larger than and different from the one originally

negotiated on their behalf by CWA, recommended by that

union for adoption and accepted by all of the CWA-repre-

sented Bell System employees throughout the United States

outside of New York.

54. Plaintiff WECO repeats and realleges each and

every allegation in paragraph “26” of this complaint.

55. During the 1971-72 strike of WECO employees,

about $5,000,000 in benefits were paid to WECO strikers

and charged against WECO’s individual account in the

Unemployment Insurance Fund.

56. The balance in WECO’s individual account in Sep-

tember, 1971 prior to the payment of benefits to the strikers

was approximately $6,400,000, whereas the account balance

as computed in March, 1972 after the strike ended showed

a balance of about $1,700,000.

57. As a result of the unemployment insurance pay-

ments to strikers, WECO’s unemployment insurance nor-

mal tax rate increased from 0.7% in 1971, the lowest

possible norma] tax rate in that year, to 2.1% in 1972, one

of the highest tax rates possible in 1972 for a positive

account employer, and to 2.5% in 1973. Upon information

and belief, had the aforementioned benefits to strikers not

been paid, WECO’s unemployment insurance normal tax

rate would have been 0.7% in 1972.

22

Complaint

58. The aforesaid increase in its unemployment insur-

ance normal tax rate has caused WECO to suffer damages

in the amount of approximately $900,000 through in-

creased unemployment insurance tax payments in 1972.

WECO, unless granted the relief herein prayed for, will

be damaged by the additional amount of approximately

$1,200,000 in 1973 and thereafter will continue to be dam-

aged by higher unemployment insurance tax payments for

many years.

59. Plaintiff WECO repeats and realleges each and

every allegation in paragraph “31” of this complaint.

60. The LMRA guarantees to parties covered thereby

the right to engage in free collective bargaining without

state interference or state subsidization of any party as

against another.

61. The payment by defendants of unemployment in-

surance benefits pursuant to Section 592.1 of the Unem-

ployment Insurance Law deprived WECO of said right,

frustrated substantially the federal policy of free collective

bargaining, constituted an unlawful intrusion by the State

of New York into an area preempted by the LMRA, and

forced WECO into financing a strike against itself—all in

violation of the Supremacy Clause, Article VI, Clause 2,

of the United States Constitution. Consequently, WECO

has suffered irreparable injury for which there is no ade-

quate remedy at law.

23

Complaint

As a Turep Cause or Action:

62. Plaintiff AT&T is a domestic corporation organized

and existing under the laws of the State of New York with

its principal place of business in the Southern District of

New York.

63. Plaintiff AT&T repeats and realleges each and

every allegation in paragraphs “3”, “4”, “5”, “6”, and “7”

of this complaint; and further alleges:

64. AT&T is an employer subject to the Unemployment

Insurance Law and is required thereunder to pay unem-

ployment insurances taxes on compensation paid to its

employees.

65. AT&T is subject to the LMRA and is obligated there-

under to bargain collectively with CWA, the certified bar-

gaining representative of certain of its employees.

66. The collective bargaining agreement between AT&T

and CWA was due to expire on July 16, 1971. CWA noti-

fied AT&T of its desire to terminate that agreement and

negotiations began on a new agreement on or about June 4,

1971.

67. Plaintiff AT&T repeats and realleges each and

every allegation contained in paragraphs “11” and “12” of

this complaint.

68. On July 14, 1971 CWA-represented employees struck

AT&T as authorized by a nationwide strike vote of all

24

Complaint

CWaA-represented employees employed by Bell System

companies.

69. On July 18, 1971 CWA reached an agreement with

AT&T and the CWA Executive Board voted to terminate

the strike pending ratification thereof and ordered the

employees back to work on or about July 21, 1971.

70. Substantially all of the CWA-represented employees

at AT&T throughout the country returned to work on or

about July 21, 1971.

71. Certain AT&T employees in New York State refused

to return to work.

72. On August 14, 1971 CWA-represented employees at

AT&T ratified the new agreement negotiated on their be-

half.

73. After August 14, 1971, notwithstanding the ratifi-

cation of said agreement, the termination of the strike

by CWA and the return to work of substantially all of

its members emploved at AT&T, certain CWA-represented

employees at AT&T in New York continued to remain

away from their jobs.

74, Many of such striking employees remained away

from work until the termination of the TELCO strike on

or about February 17, 1972.

75. Plaintiff AT&T repeats and realleges each and

every allegation in paragraph “21” of this complaint.

25

Complaint

76. During the period of the strike AT&T strikers ap-

plied for unemployment insurance benefits and such bene-

fits were granted after the seven-week suspension period

provided in Section 592.1 of the Unemployment Insurance

Law over the objections of AT&T.

77. Upon information and belief, payments of these ben-

efits were made to approximately 300 AT&T employees.

78. The aforementioned payments were made in viola-

tion of the United States Constitution under a state statute

which conflicts with the federal labor policy established by

Congress in the LMRA.

79. The said payment of benefits to the strikers consti-

tuted state subsidization of the strike and, upon informa-

tion and belief, prolonged the strike against AT&T. The

strikers were thereby supplied with financial support for

their insistence upon and holding out for a settlement

which was larger than and different from the one originally

negotiated on their behalf by CWA, recommended by that

union for adoption and accepted by all of the CWA-repre-

sented Bell System employees throughout the United

States outside of New York.

80. Plaintiff AT&T repeats anu realleges each and

every allegation in paragraph “26” of this complaint.

81. During the 1971-72 strike of AT&T employees about

$470,000 in benefits were paid to AT&T strikers and

charged against AT&T’s individual acconnt in the Unem-

ployment Insurance Fund.

Complaint

82. The balance in AT&T’s individual account in Sep-

tember, 1971 prior to the payment of benefits to the strikers

was approximately $5,600,000, whereas the account balance

as computed in March, 1972 after the strike ended showed

a balance of about $5,000,000.

83. As a result of the unemployment insurance pay-

ments to strikers, AT&T’s unemployment insurance normal

tax rate increased from 0.8% in 1971, one of the lowest

possible normal tax rates, to 1.0% in 1972 and to 0.9% in

1973. Upon information and belief, had the aforementioned

benefits to strikers not been paid, AT&T’s unemployment

insurance normal tax rate would have been 0.9% in 1972.

84. The aforesaid increase in its unemployment insur-

ance normal tax rate has caused AT&T to suffer damages

in the amount of approximately $60,000 through increased

unemployment insurance tax payments in 1972. AT&T, un-

less granted the relief herein prayed for, will be damaged

by the additional amount of approximately $130,000 in

1973 and thereafter will continue to be damaged by higher

unemployment insurance tax payments for many years.

85. Plaintiff AT&T repeats and realleges each and

every allegation in paragraph “31” of this complaint.

86. The LMRA guarantees to parties covered thereby

the right to engage in free collective bargaining without

state interference or state subsidization of any party as

against another.

27

Complaint

87. The payment by defendants of unemployment in-

surance benefits pursuant to Section 592.1 of the Unem-

ployment Insurance Law deprived AT&T of said right,

frustrated substantially the federal policy of free collec-

tive bargaining, constituted an unlawful intrusion by the

State of New York into an area preempted by the LMRA,

and forced AT&T into financing a strike against itself—

all in violation of the Supremacy Clause, Article VI, Clause

2, of the United States Constitution. Consequently, AT&T

has suffered irreparable injury for which there is no ade-

quate remedy at law.

As a Fovrrn Cause or Action:

88. Plaintiff Empire is a domestic corporation organized

and existing under the laws of the State of New York with

its principal place of business in the Southern District of

New York.

89. Plaintiff Empire repeats and realleges each and

every allegation in paragraphs “3”, “4”, “5”, “6” and “7”

of this complaint; and further alleges:

90. Empire is an employer subject to the Unemployment

Insurance Law and is required thereunder to pay unem-

ployment insurance taxes on compensation paid to its em-

ployees.

91. Empire is subject to the LMRA and is obligated to

bargain collectively with CWA, the certified bargaining

representative of its non-supervisory employees.

28

Complaint

92. Collective bargaining for represented Empire em-

ployees is conducted with CWA in multi-employer nego-

tiations involving TELCO and Empire, resulting in a single

collective bargaining agreement covering the CWA-repre-

sented employees of both employers.

93. Plaintiff Empire repeats and realleges each and

every allegation in paragraphs “10”, “11”, “12”, “13”, “14”,

“15” “16” “17” “18” “19”, and “21” of this complaint.

94. During the period of the strike Empire strikers ap-

plied for unemployment insurance benefits and such bene-

fits were granted after the seven-week suspension period

provided in Section 592.1 of the Unemployment Insurance

Law over the objections of Empire.

95. Upon information and belief payments of these ben-

efits were made to upwards of approximately 150 Empire

employees.

96. The aforementioned payments were made in viola-

tion of the United States Constitution under a state statute

which conflicts with the federa! labor policy established

by Congress in the LMRA.

97. The said payment of benefits to the strikers consti-

tuted state subsidization of the strike and, upon informa-

tion and belief, prolonged the strike against Empire. The

strikers were thereby supplied with financial support for

their insistence upon and holding out for a settlement

which was larger than and different from the one originally

eae ee

29

Complaint

negotiated on their behalf by CWA, recommended by that

union for adoption and accepted by all of the CWA-repre-

sented Bell System employees throughout the United

States ouside of New York.

98. Plaintiff Empire repeats and realleges each and

every allegation in paragraph “26” of this complaint.

99. During the 1971-72 strike of Empire employees ap-

proximately $103,000 in benefits were paid to Empire

strikers and charged against Empire’s individual account

in the Unemployment Insurance Fund.

100. The balance in Empire’s individual account in Sep-

tember, 1971 prior to the payment of benefits to the

strikers was approximately $119,000 whereas the account

balance as computed in March, 1972 after the strike ended

showed a balance of about $27,000.

101. As a result of the unemployment insurance pay-

ments to strikers, Empire’s unemployment insurance nor-

mal tax rate increased from 1.7% in 1971 to 2.38% in 1972,

the highest tax rate possible in 1972, and 2.7% in 1973.

Upon information and belief, had the aforementioned bene-

fits to strikers not been paid, Empire’s unemployment

insurance normal tax rate would have been 1.5% in 1972.

102. The aforesaid increase in its unemployment insur-

ance tax rate has caused Empire to suffer damages in the

amount of upwards of $13,000 through increased unem-

ployment insurance tax payments in 1972. Empire, unless

30

Complaint

granted the relief herein prayed for, will be damaged by

the additional amount of upwards of $23,000 in 1973 and

thereafter will continue to be damaged by higher unem-

ployment insurance tax payments for many years.

103. Plaintiff Empire repeats and realleges each and

every allegation in paragraph “31” of this complaint.

104. The LMRA guarantees to parties covered thereby

the right to engage in free collective bargaining without

state interference or state subsidization of any party as

against another.

105. The payment by defendants of unemployment in-

surance benefits pursuant to Section 592.1 of the Unem-

ployment Insurance Law deprived Empire of said right,

frustrated substantially the federal policy of free collective

bargaining, constituted an unlawful intrusion by the State

of New York into an area preempted by the LMRA, and

foreed Empire into financing a strike against itself—all

in violation of the Supremacy Clause, Article VI, Clause 2,

of the United States Constitution. Consequently, Empire

has suffered irreparable injury for which there is no ade-

quate remedy at law.

As a Firtnm Cavse or Action:

106. Plaintiffs repeat and reallege each and every alle-

gation in paragraphs “2” through “105” of this complaint;

and further allege:

107. Plaintiffs, by virtue of the payment of unemploy-

ment insurance benefits to strikers, have suffered the im-

31

Complaint

position of large debits to their respective unemployment

insurance accounts as well as the levying against each of

them of vastly increased unemployment insurance taxes.

Thereby each of the plaintiffs has been and is being

deprived of their property without due process of law in

violation of the Due Process Clause of the Fourteenth

Amendment of the United States Constitution.

As a Srxtn Cause or Action:

3

108. Plaintiffs repeat and reallege each and every alle-

gation in paragraphs “2” through “105” of this complaint;

and further allege:

109. The payment of unemployment insurance benefits

to strikers pursuant to Section 592.1 of the Unemployment

Insurance Law is an unreasonable and arbitrary classifi-

cation of strikers as distinguished from other claimants

voluntarily unemployed in violation of the Equal Protec-

tion Clause of the Fourteenth Amendment of the United

States Constitution.

Wuenerore, plaintiffs demand judgment:

1. That Section 592.1 of the Unemployment Insurance

Law, providing for payment of benefits to strikers after

the seventh week of a strike, be declared unconstitutional

on the grounds that it violates the Supremacy Clause of

Article VI, Clause 2 of the United States Constitution and

the Due Process Clause and Equal Protection Clause of

the Fourteenth Amendment of the United States Consti-

tution.

32

Complaint

2. That the court issue a permanent injunction enjoin-

ing defendants, their successors in office, agents, employees,

and all other persons attempting or purporting to do so,

from interfering with the parties’ collective bargaining

relationships and their right to engage in free ccllective

bargeining without unlawful state subsidization of either

party.

3. That the court issue a permanent injunction enjoin-

ing the defendants, their successors in office, agents, em-

ployees, and all other persons attempting or purporting to

do so, from (a) enforcing Section 592.1 of the Unemploy-

ment Insurance Law, (b) authorizing the payment of un-

employment insurance benefits to strikers and (c) drawing

vouchers on the accounts maintained to effectuate the pay-

ment of such benefits.

4. That the court issue a permanent injunction requir-

ing the defendants, their successors in office, agents, em-

ployees, and all other persons empowered to do so, to

recredit plaintiffs’ respective unemployment insurance ac-

counts, retroactive to the commencement of benefit pay-

ments to strikers in 1971, for the amounts paid out in

unemployment insurance benefits as a result of the 1971-

1972 strike and requiring them to readjust plaintiffs’ un-

employment insurance normal tax rates for each and every

year since 1971 in light of such credits.

5. That the court award plaintiffs recoupment of the

monies which have and will have been paid as increased

unemployment insurance tax payments under the increased

33

Complaint

normal tax rates which became effective on and after Jan-

uary 1, 1972.

6. That the plaintiffs may recover interest according to

law and the costs of this action.

7. That the plaintiffs be granted such other and further

relief as the court may deem just and proper.

Aranow, Bropsky, BoHLINGER

Benetar, Erxporn & Dann

By Davin L. Benetar

A Member of the Firm

Attorneys jor Flaiutiffs

Office & P.O. Address

469 Fifth Avenue

New York, New York 10017

(212) 889-1470

34

Answer

UNITED STATES DISTRICT COURT

SovrHern District or New York

73 Civ. 4557

Judge Griese

<>

New York TeLtepHoxe Company, Western Exectric Com-

PANY, AMERICAN TELEPHONE & TELEGRAPH COMPANY,

Lone Lives Department, and Empire City Supway

Company (LiMiTED),

Plaintiffs,

—against—

New York State Department or Lasor, Lovis L. Leviye,

Industrial Commissioner of the New York State De-

partment of Labor, New Yorx State DeparRTMENT OF

Taxation & Fiyance, and Norman Gauimay, State

Commissioner of Taxation & Finance,

Defendants.

>

The defendants for their answer to the complaint:

1. Deny so much of paragraph “1” as alleges that any

provision of Article 18 of the New York Labor Law is for

any reason invalid and deny further so much of that para-

graph as alleges that this Court has jurisdiction of the

action.

35

Answer

2-3. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “2” and “3”.

4. Admit the allegations of paragraph “4”.

5. Admit the allegations of the first sentence of para-

graph “5” and admit the allegations of the second sentence

of that paragraph insofar as it alleges that the Industrial

Commissioner directs the distribution of unemployment in-

surance benefits to eligible claimants.

6. Deny the allegation of the first sentence of paragraph

“6” and allege that Mario Procaccino is the State Commis-

sioner of Taxation and Finance. Admit the allegations of

the second sentence of paragraph “6”.

7. Admit the allegations of paragraph “7” insofar as

they state that the State Commissioner of Taxation and

Finance is designated under the Unemployment Insurance

Law as custodian of the funds requisitioned by the Indus-

trial Commissioner for payment to eligible claimants.

8. Admit the allegations of paragraph “8” insofar as

they state that TELCO is an employer subject to the Un-

employment Insurance Law and is required thereunder to

pay unemployment insurance taxes and allege that these

taxes are paid on certain wages pursuant to New York

Labor Law, § 570.

9. Deny knowledge or information sufficient to form a

belief as te the allegations of paragraph “9”.

36

Answer

10-12. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “10”, “11” and

“12”.

13. Admit, upon information and belief, the allegations

of paragraph “13” except deny knowledge or information

sufficient to form a belief as to the number of employees

involved.

14. Admit, upon information and belief, the allegations

of paragraph “14” except deny knowledge or information

sufficient to form a belief as to whether the CWA ordered

all striking employees back to work on or about July 21,

1971.

15-16. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “15” and “16”.

17. Admit, upon information and belief, the allegations

of paragraph “17”.

18. Admit, upon information and belief, the allegations

of paragraph “18” except deny knowledge or information

sufficient to form a belief as to the number of employees

who continued the strike.

19. Admit, upon information and belief, the allegations

of paragraph “19”,

20. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “20”,

37

Answer

21. With respect to the allegations of paragraph “21”

respectfully refer the Court to the appropriate published

statute.

22. Admit the allegations of paragraph “22” except deny

knowledge or information sufficient to form a belief as

to the percentage of TELCO employees who applied for

and who received unernployment insurance.

23. Deny the allegations of paragraph “23” and allege

that approximately 28,000 TELCO employees were paid

unemployment insurance.

24-26. Deny the allegations of paragraphs “24” to “26”.

27. Admit the allegations of paragraph “27” insofar as

they state that during the 1971-72 strike of TELCO em-

ployees, about $43,000,000 in benefits were paid to TELCO

strikers and otherwise respectfully refer the Court to New

York Labor Law, § 581.

28. Admit the allegations of paragraph “29” except al-

lege that the balance shown in the TELCO account in Sep-

tember, 1971 was $41,210,497.61 and that the balance shown

in March, 1972 was a negative balance of $1,351,194.75 and

further allege that balances in an employer’s account estab-

lished pursuant to New York Labor Law, § 581.1(d) do not

reflect cash available but reflect a balance for the computa-

tion of tax rates.

29. Deny the allegations of paragraph “29” except admit

that the tax rates set forth in the first sentence thereof

are accurate.

iWin eee

Answer

30-31. Deny the allegations of paragraphs “30” and “31”.

32. Deny the allegations of paragraph “32” and respect-

fully refer the Court to the applicable statute.

33. Deny the allegations of paragraph “33”.

34. Deny knowledge or information sufficient to form a

belief as to the allegations of paragraph “34”.

35. With respect to paragraph “35” repeat and realleges

each and every response in paragraphs “3”, “4”, “5”, “6”,

and “7” of this answer to paragraphs “3”, “4”, “5”, “6” and

“7” of the complaint.

36. Admit the allegations of paragraph “36” insofar as

they state that WECO is an employer subject to the Unem-

ployment Insurance Law and is required thereunder to pay

unemployment insurance taxes and allege that these taxes

are paid on certain wages pursuant to New York Labor

Law, § 570.

37. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “37”.

38-39. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “38” and “39”.

40. With respect to paragraph “40” repeat and reallege

each and every response in paragraphs “11” and “12” of

this answer to paragraphs “11” and “12” of the complaint.

41. Admit, upon information and belief, the allegations

of paragraph “41”.

89

Answer

42. Admit, upon information and belief, the allegations

of paragraph “42” except deny knowledge or information

sufficient to form a belief as to whether the CWA ordered

all striking employees back to work on or about July 21,

1971.

43-44. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “43” and “44”.

45-46. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “45” and “46”.

47. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “47” except

admit that after August 14, 1971 many WECO employees

stayed away from work.

48. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “48”.

49. With respect to paragraph “49” repeat and reallege

each and every response in paragraph “21” of this answer

to paragraph “21” of the complaint.

50. Admit the allegations of paragraph “50” insofar as

they assert that many WECO employees applied for and

were granted unemployment insurance benefits over

WECO’s objection.

51. Admit the allegations of paragraph “51” except al-

lege that benefits were paid to 3,800 WECO employees.

52-53. Deny the allegations of paragraphs “52” and “53”.

40

Answer

54. With respect to paragraph “54” repeat and reallege

each and every response in paragraph “26” of this answer

to paragraph “26” of the complaint.

55. Deny the allegations of paragraph “55” except admit

that during the period in question about $5 million was

paid to WECO employees and charged in accordance with

the provisions of New York Labor Law, § 581.

56. Deny the allegations of paragraph “56” except admit

that during the period in question there was a reduction

of about $5 million in the account balance of WECO.

57. Deny the allegations of paragraph “57” except admit

that the tax rates set forth in the first sentence thereof

are accurate.

58. Deny the allegations of paragraph “58”.

59. With respect to paragraph “59” repeat and reallege

each and every response in paragraph “31” of this answer

to paragraph “31” of the complaint.

60. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “60”.

61. Deny the allegations of paragraph “61”.

62. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “62”.

63. With respect to paragraph “63” repeat and reallege

each and every response in paragraph 3”, “4”, “5”, “6”

41

Answer

and “7” of this answer to paragraphs “3”, “4”, “5”, “6”

and “7” of the complaint.

64. Admit the allegations of paragraph “64” insofar as

they state that A T & T is an employer subject to the

Unemployment Insurance Law and is required thereander

to pay unemployment insurance taxes and allege that these

taxes are paid on certain wages pursuant to New York

Labor Law, § 570.

65-66. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “65” and “66”.

67. With respect to paragraph “67” repeat and reallege

each and every response in paragraphs “11” and “12” of

this answer to paragraphs “11” and “12” of the complaint.

68-69. Admit, upon information and belief, the allega-

tions of paragraphs “68” and “69”.

70. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “70”.

71-72. Admit, upon information and belief, the allega-

tions of paragraphs “71” and “72”.

73. Deny knowledge or information sufficient to form a

belief as to the allegations of paragraph “73” except admit

that after August 14, 1971 certain A T & T employees in

New York remained away from their jobs.

74. Deny the allegations of paragraph “74” except admit

that some A T & T employees remained away from their

jobs until on or about February 17, 1972.

42

Answer

75. With respect to paragraph “75” repeat and reallege

each and every response in paragraph “21” of this answer

to paragraph “2i” of the complaint.

76. Admit the allegations of paragraph “76” insofar as

they assert that some A T & T employees applied for and

were granted unemployment insurance benefits over A T &

T’s objection.

77. Admit the allegations of paragraph “77” except al-

lege that benefits were paid to approximately 400 A T & T

employees.

78-79. Deny the allegations of paragraphs “78” and “79”.

80. With respect to paragraph “80” repeat and reallege

each and every response in paragraph “26” of this answer

to paragraph “26” of the complaint.

81. Deny the allegations of paragraph “81” except admit

that during the period September 12, 1971 to February 27,

1972 unemployment insurance benefits were paid to A T & T

employees and allege that the total amount paid during

this period was $524,295.65.

82. Deny the allegations of paragraph “82” except admit

that during the period in question there was a reduction

of about $500,000 in the account balance of A T & T.

83. Deny the allegations of paragraph “83” except admit

that the tax rates set forth in the first sentence thereof

are accurate.

43

Answer

84. Deny the allegations of paragraph “84”,

85. With respect to paragraph “85” repeat and reallege

each and every response in paragraph “31” of this anawer

to paragraph “31” of the complaint.

86. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “86”.

87. Deny the allegations of paragraph oy".

88. Deny knowledge or information sufficient to form a

belief as to the allegations of paragraph “88”.

89. With respect to paragraph “89” repeat and reallege

each and every response in paragraphs “3”, ne, o, “”

and “7” of this answer to paragraphs “3”, “4”, “5”, “6”

and “7” of the complaint.

90. Admit the allegations of paragraph “90” insofar as

they state that Empire is an employer subject to the Unem-

ployment Insurance Law and is required thereunder to

pay unemployment insurance taxes and allege that these

taxes are paid on certain wages pursuant to New York

Labor Law, § 570.

91-92. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraphs “91” and “92”.

93. With respect to paragraph “93” repeat and reallege

each and every response in paragraphs “10”, “11”, “12”,

“19”, “14”, “15”, “16”, “17”, #18”, “19” and “91” of this an-

swer to paragraphs “10”, “11”, “12”, “13”, “14”, “15”, “16”,

“17”, “18”, “19” and “21” of the complaint.

44

Answer

94. Admit the allegations of paragraph “94” insofar as

they assert that there was Empire employees who applied

for and were granted unemployment insurance benefits

over Empire’s objection.

95. Admit the allegations of paragraph “95” except al-

lege that benefits were paid to approximately 100 Empire

employees.

96-97. Deny the allegations of paragraphs “96” and “97”.

98. With respect to paragraph “98” repeat and reallege

each and every response in paragraph “26” of this answer

to paragraph “26” of the complaint.

99. Deny the allegations of paragraph “99” except admit

that during the period in question an estimated $98,786.58

was paid to Empire employees and charged in accordance

with the provisions of New York Labor Law, § 581.

100. Deny the allegations of paragraph “100” except

admit that during the period in question there was a reduc-

tion from an estimated $108,777.66 to $22,130.48 in the ac-

count balance of Empire.

101. Deny the allegations of paragraph “101” except

admit that the tax rates set forth in the first sentence

thereof are accurate except that the 1971 tax rate for Em-

pire was 1.5%.

102. Deny the allegations of paragraph “102”.

45

Answer

103. With respect to paragraph “103”, repeat and real-

lege each and every response in paragraph “31” of the

answer to paragraph “31” of the complaint.

104. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph “104”.

105. Deny the allegations of paragraph “105”.

106. With respect to paragraph “106”, repeat and real-

lege each and every response in paragraphs “2” through

“105” of this answer to paragraphs “2” through “105” of

the complaint.

107. Deny the allegations of paragraph “107”.

108. With respect to paragraph “108” repeat and real-

lege each and every response in paragraphs “2” through

“105” of this answer to paragraphs “2” through “105” of

the complaint.

109. Deny the allegations of paragraph “109”.

First AFFIRMATIVE DEFENSE

110. The Court lacks jurisdiction over the subject matter

of this action.

Seconp ArFIRMATIVE DEFENSE

111. The complaint fails to state a claim on which relief

can be granted.

46

Answer

Tump AFFIRMATIVE DEFENSE

112. Defendants have violated no constitutional right of

plaintiffs.

Fourth AFFIRMATIVE DEFENSE

113. Defendants have violated no statutory right of

plaintiffs.

Fiera ArrmMative DEerense

114. The complaint fails to set forth a justiciable con-

troversy.

Srxta AFrimeMaTIve DEFENSE

115. Plaintiffs have failed to exhaust their administra-

tive and judicial remedies.

SEvENTH AFFIRMATIVE DEFENSE

116. Plaintiffs have suffered no damage by virtue of any

action of defendants.

EicHTH AFFIRMATIVE DEFENSE

117. New York Labor Law, § 592.1 embodies the princi-

ple of governmental neutrality in industrial controversies

and is consonant with the Constitution and laws of the

United States.

47

Answer

Norra ArrimMative DEFENSE

118. The instant action is res judicata as against plain-

tiffs.

TentH AFFIRMATIVE DEFENSE

119. The instant action is barred by collateral estoppel.

Wuererore, defendants demand judgment dismissing the

complaint together with the costs of this action.

Dated: New York, New York

December 10, 1973

Louis J. LerKow!tz

Attorney General of the

State of New York

Attorney for Defendants

Office & P.O. Address

Two World Trade Center

New York, New York 10047

By Brenxpa SoLorr

Assistant Attorney General

Tel. No. (212) 488-7402

48

Pre-Trial Order

UNITED STATES DISTRICT COURT

SovutHern District or New York

73 Civ. 4557 (R.0.)

—~-

New York TetepHone Company, WesterN Exectric Com-

PANY, AMERICAN TELEPHONE & TELEGRAPH CoMPANY,

Lone Liyes DeparTMENT, and Emprre City Susway

Company (Liurtep),

Plaintiffs,

—against—

New York State DepartMENT oF Lasor, Louis L. Levrye,

Industrial Commissioner of the New York State De-

partment of Labor, New York State DeparRTMENT OF

Taxation & Fiance, and James H. Tutty, Jr., State

Commissioner of Taxation & Finance,

Defendants.

——

On November 12, 1975, the parties in this action, by their

attorneys, appeared before the Court at a pre-trial confer-

ence pursuant to Rule 16 of the Federal Rules of Civil Pro-

cedure, and the following was agreed:

I. JvurispicrionaL StTaTEMENT

It is alleged that this Court has jurisdiction of the action

under 28 U.S.C. § 1331, 28 U.S.C. $1337 and 28 U.S.C.

§ 1343; and that the matter in controversy exceeds, exclu-

49

Pre-Trial Order

sive of interest and costs, the sum of ten thousand dollars

($10,000) in respect to each of the plaintiffs.

Il. AMENDMENT OF PLEADINGS

1. The pleadings were agreed to be deemed amended in

accordance with the framing of the issues in Part IX of

this pre-trial order.

2. The parties agreed that the trial of this action should

be based upon this order and upon the pleadings as

amended.

ITI. Unoprspvrep Facts

The parties stipulated that the following facts are not

in dispute in this action (each party reserving the right to

object to the materiality of any such stipulated fact and

its relevancy to the issues) :

1. Plaintiffs New York Telephone Company

(“TELCO”), Western Electric Company (“WECO”),

and Empire City Subway Company (Limited) (“Em-

pire”) are domestic corporations organized and exist-

ing under the laws of the State of New York, each with

its principal place of business in the Southern District

of New York. American Telephone & Telegraph Com-

pany is a domestic corporation organized and existing

under the laws of the State of New York. Plaintiff

American Telephone & Telegraph Company, Long

Lines Department (“AT&T”)® is a department of

* All references to “AT&T” herein refer to American Telephone

& Telegraph Company, Long Lines Department, unless otherwise

noted.

50

Pre-Trial Order

American Telephone & Telegraph Company having its

principal place of business in the Southern District of

New York.

2. For the purposes of this lawsuit, the term “Bell

System” shall be understood to encompass the Amer-

ican Telephone and Telegraph Company, the twenty-

one principal telephone operating companies owned, in

whole or in major part by American Telephone and

Telegraph Company and such other companies as

WECO and Bell Telephone Laboratories, Inc. (“Bell

Labs”). The term as so understood includes all plain-

tiffs.

8. TELCO is an ope.ating company within the Bell

System providing teiephone communications services

within the State of New York.

4. WECO is a manufacturing and supply unit of

the Bell System.

5. AT&T is engaged in interstate and international

communications services.

6. Empire, a wholly owned subsidiary of TELCO,

constructs and maintains conduits and manholes in the

New York City boroughs of Manhattan and the Bronx

through which telephone cable is laid.

7. Defendant Louis L. Levine is the Industrial Com-

missioner of the New York State Department of Labor

(the “Industrial Commissioner”). The Industrial Com-

missioner has an office in the Southern District of

New York for the conduct of official business.

51

Pre-Trial Order

8. The Industrial Commissioner is charged under

the laws of the State of New York with the adminis-

tration of Article 18 of the New York Labor Law (the

“Unemployment Insurance Law”). Included among his

duties is directing disbursements from the Unemploy-

ment Insurance Fund for the payment of benefits to

eligible claimants, which may include individuals who

are on strike.

9. James H. Tully, Jr., is the State Commissioner

of Taxation and Finance and, as such, heads the New

York State Department of Taxation and Finance. Mr.

Tully should be and, with the Court’s approval, hereby

is substituted as a defendant in this action in place

of his predecessors, Messrs. Galman and Procaccino.

The State Commissioner of Taxation and Finance has

an office in the Southern District of New York for the

conduct of official business.

10. The State Commissioner of Taxation and Fi-

nance is designated under the Unemployment Insur-

ance Law as custodian of the funds requisitioned by the

Industrial Commissioner for use in the payment of

unemployment insurance benefits to eligible claimants,

which may include individuals who are on strike.

11. There is no source, other than employer contri-

butions mandated by the Unemployment Insurance Law

and federal funds of the funds in New York State from

which:

(a) Unemployment insurance benefits are paid; or

52

Pre-Trial Order

(b) Refunds of overpayments of employer contribu-

tions to the Unemployment Insurance Fund are

made.

12. At all times material herein, TELCO, WECO,

AT&T, and Empire were and are employers subject to

the Unemployment Insurance Law and were and are

required thereunder to pay unemployment insurance

contributions on wages paid to their employees.

13. At all times material herein, TELCO and Em-

pire were subject to the Labor Management Relations

Act of 1947, as amended, 29 U.S.C. $151 et seg.

(“LMRA”) and were obligated to bargain collectively

with the Communications Workers of America

(“CWA” or “International Union”) concerning certain

non-supervisory employees of TELCO and Empire in

a single statewide bargaining unit, resulting in a single

statewide collective bargaining agreement. In March

of 1971, more than 38,000 TELCO employees were

represented by CWA.

14. In March 1971, the Telephone Traffic Union

Downstate represented approximately 20,337 TELCO

non-supervisory employec:: the Telephone Traffic

Union Upstate represented approximately 5,646

TELCO nonsupervisory employees; the Union of Tele-

phone Workers (Commercial Department Downstate)

represented approximately 8,629 TELCO non-super-

visory employees; the Telephone Employees Organiza-

tion (Accounting Department Downstate) represented

approximately 4,071 TELCO non-supervisory em-

53

Pre-Trial Order

ployees; the Telephone Commercial Union (Upstate)

represented approximately 1,804 TELCO non-super-

visory employees; and the Upstate Telephone Em-

ployees Association (Accounting Department) repre-

sented approximately 1,142 TELCO non-supervisory

employees. The unions named in this paragraph repre-

sented a total of approximately 41,629 TELCO em-

ployees.

15. At all times material herein, WECO was subject

to the LMRA and was obligated to bargain collectively

with CWA concerning WECO installers, job clerks and

service center employees, respectively, in separate na-

tionwide collective bargaining units. Collective bar-

gaining between WECO and such employees resulted

in separate companywide collective bargaining agree-

ments for each such bargaining unit.

16. At all times material herein, AT&T was subject

to the LMRA and was obligated to bargain collectively

with CWA concerning all AT&T non-supervisory em-

ployees. Bargaining for such AT&T employees is con-

ducted in a nationwide collective bargaining unit

resulting in a single nationwide collective bargaining

agreement.

17. The collective bargaining agreement entered

into in 1968 between CWA and TELCO and Empire

was scheduled to expire on July 28, 1971, upon the

giving of prior notice. Such notice was given by CWA

on or about May 24, 1971, and negotiations for a new

contract commenced on July 6, 1971.

54

Pre-Trial Order

18. The collective bargaining agreement between the

installers and WECO due to expire on April 30, 1971,

was extended on a day-by-day basis subject to termi-

nation by giving 24 hours written notice. Such notice

was given by CWA on or about July 12, 1971. Collec-

tive bargaining negotiations had commenced on April

1, 1971.

19. The collective bargaining agreement between

AT&T and CWA was due to expire on July 16, 1971.

On or about May 10, 1971, CWA notified AT&T of its

desire to terminate that agreement and negotiations

began on a new agreement on or about June 4, 1971.

20. CWA has labor contracts with twenty-three com-

panies in the Bell System throughout the United States,

including, among others, each of the plaintiffs, Chesa-

peake & Potomac Telephone Company—Washington

(“C&P”), The Mountain States Telephone and Tele-

graph Company (“Mountain States”) and Bell Labs.

21. In the spring of 1971 the various collective bar-

gaining agreements between CWA and the several com-

panies of the Bell System were due to expire on dif-

ferent dates; the earliest was the contract covering

WECO installers. The agreements which expired prior

to July 14, 1971, had been extended on a day-by-day

basis to July 14, 1971. As of July 14, 1971, collective

bargaining in connection with new contracts had been

in process between CWA and all of the Bell System

companies having collective bargaining agreements

with CWA.

55

Pre-Trial Order

22. On July 14, 1971, a nationwide strike by CWA,

which then represented approximately 500,000 Bell

System employees, was commenced against all Bell

System companies, including TELCO, WECO, AT&T

and Empire.

23. On July 18, 1971, agreements were reached, sub-

ject to ratification by the covered employees. between

CWA and the various Bell System companies, includ-

ing TELCO, WECO, AT&T and Empire. CWA’s Exec-

utive Board voted to terminate the strike pending such

ratification and ordered all striking employees back

to work effective on or about July 21, 1971.

24. Between approximately 96 and 98 per cent of

the striking employees of the various Bell System com-

panies throughout the country, including substantially

all of the striking employees of WECO and AT&T,

nationwide, returned to work on or about July 21.

1971.

95. On and after July 21, 1971, and until the termi-

nation of the strike on February 18, 1972, CWA-rep-

resented employees employed by plaintiffs in New

York, including between approximately 85 and 90 per-

cent of employees scheduled to work at TELCO, sub-

stantially all such employees at WECO (except manu-

facturing employees), and certain of such employees

at AT&T continued to stay away from their jobs at the

direction of their local unions. Between July 21, 1971.

and August 14, 1971, more than 90% of the CWA-

represented TELCO employees continued to stay away

from work.

56

Pre-Trial Order

26. On August 14, 1971, the respective agreements

between CWA and the various Bell System companies

including WECO and AT&T, but with the exception of

TELCO and Empire, were ratified by the covered

employees. The TELCO and Empire employees re-

jected the contract negotiated on their behalf. The

International Union had recommended ratification of

said contract.

27. In a letter dated August 27, 1971, CWA Presi-

dent Joseph A. Beirne advised all members of CWA’s

Executive Board and all CWA National Directors that

he had set August 26, 1971, as the strike date for the

New York Plant unit. This was pursuant to the Execu-

tive Board’s authorization to set a strike date for anv

bargaining unit which rejected their CWA-negotiated

contract on August 14, 1971.

28. Approximately 38,000 employees represented by

CWA participated in CWA’s strike against TELCO

for varying periods of time between July 14, 1971, and

February 18, 1972.

29. Approximately 41,000 TELCO employees rep-

resented by unions other than CWA did not participate

in CWA’s strike against TELCO.

30. About 90% of the approximately 5,500 AT&T

employees in Manhattan and Westchester, Nassau and

Suffolk Counties (represented by CWA Local 1150)

and about 95% of the approximately 600 employees at

WECO’s Service Division’s facility located on West

Houston Street in Manhattan (represented by CWA

57

Pre-Trial Order

Local 1196), one of three such facilities located in New

York State, had returned to work before the eighth

week of the CWA strike.

31. On February 16, 1972, CWA-represented em-

ployees at TELCO and Empire voted to ratify a con-

tract between CWA and their respective employers.

On February 17, 1972, a strike settlement agreement

covering both Empire and TELCO was reached provid-

ing that all CWA-represented employees would return

to work on February 18, 1972.

32. The TELCO phase of the aforementioned CWA

strike against Bell System was declared by the Na-

tional Labor Relations Board (“NLRB”), in two sep-

arate cases (Case #2-CB-5172, et al., 208 NLRB No.

32, 85 LRRM 1122, and Case #3-CB-1851-11, et al.,

208 NLRB No. 31, 85 LRRM 1104), to be illegal be-

cause the union had failed to give 60 days notice of

proposed modification or termination of the contract

in violation of §8(d) of the LMRA. The NLRB also

held therein that, because of the illegality of the strike,

fines imposed by CWA locals on their members who

returned to work during the strike also had been

illegal.

33. Section 592.1 of the Unemployment Insurance

Law is entitled “Suspension of Accumulation of Bene-

fit Rights” and provides:

“Industrial controversy. The accumulation of ben-

efit rights by a claimant shall be suspended dur-

ing a period of seven consecutive weeks beginning

53

Pre-Trial Order

with the day after he lost his employment because

of a strike, lockout, or other industrial controversy

in the establishment in which he was employed,

except that benefit rights may be accumulated be-

fore the expiration of such seven weeks beginning

with the day after such strike, lockout, or other

industrial controversy was terminated.”

34. Pursuant to the New York State Unemployment

Insurance Law, unemployment benefits are paid to

strikers and others unemployed due to an industrial

controversy after a seven week suspension period, sub-

ject to eligibility requirements applicable to all claim-

ants.

35. Pursuant to a stipulation dated June 24, 1974.

the parties have agreed, and it has been so ordered by

the Court, that the constitutional issues in this case

be first and separately tried. On this trial, to the

extent that the statistical data contained in the plead-

ings become pertinent to the constitutional issues, the

parties have agreed to use the following data set

forth in said stipulation and elsewhere. Defendants

have reserved the right to demonstrate that the dam-

ages sought are constitutionally or otherwise barred.

a. During the period of the 1971-1972 strike by

CWA against plaintiffs and other Bell System com-

panies, which period commenced on July 14, 1971,

and terminated on or about February 18-21, 1972,

substantial numbers of strikers applied for unem-

ployment benefits and such benefits were paid (after

59

Pre-Trial Order

the 49 day suspension period provided in § 592.1 of

the Unemployment Insurance Law and the addi-

tional waiting period prescribed in §590 thereof)

to claimants determined to be eligible therefor by

the Industrial Commissioner of the State of New

York, over the objections of plaintiffs as to their

respective employees.

b. Approximately 38,000 employees represented

by CWA participated in CWA’s strike against

TELCO for varying periods of time between July

14, 1971, and February 18, 1972.

ce. Approximately 29,000 TELCO employees, 4,150

WECO employees, 350 AT&T employees and 125

Empire employees received unemployment insur-

ance benefits between the week ending September

12, 1971, and the week ending February 27, 1972.

Other striking employees did not apply for benefits

or were ineligible for unemployment insurance ben-

efits for various reasons such as temporary employ-

ment elsewhere, inability to demonstrate a sufficient

recent attachment to the labor market by showing

employment in at least 20 of the last 52 weeks, sick-

ness or disability, etc.

d. During the 1971-1972 CWA strike about $43,-

000,000 in unemployment insurance benefits were

paid to TELCO strikers and about $100,000 in such

benefits were paid to Empire strikers and charged

against these plaintiffs’ respective accounts in the

Unemployment Insurance Fund.

60

Pre-Trial Order

e. Between the week ending September 12, 1971,

and the week ending February 27, 1972, unemploy-

ment insurance benefits totalling approximately

$5,000,000 were paid to WECO claimants and about

$500,000 to AT&T claimants and charged against

these plaintiffs’ respective accounts in the Unem-

ployment Insurance Fund.

f. TELCO’s unemployment insurance normal tax

rate increased from 0.9% in 1971, one of the lowest

possible rates, to 2.3% in 1972, the highest tax rate

possible in 1972, and to 2.8% in 1973. Had the

aforementioned benefits to strikers not been paid,

TELCO’s unemployment insurance normal tax rate

would have been about 0.8% (or no higher than

).9%) in 1972 and about 0.5% in 1973. These in-

creased tax rates have resulted in tax payments in

1972 and 1973, respectively, of approximately $6,-

150,000 and $9,300,000 in excess of taxes which would

have been due and payable if benefits had not been

paid to strikers during the 1971-1972 CWA strike.

g. Empire’s unemployment insurance normal tax

rate increased from 1.5% in 1971 to 2.3% in 1972,

the highest tax rate possible in 1972, and to 2.7%

in 1973. Had the aforementioned benefits to Empire

strikers not been paid, Empire’s unemployment in-

surance normal tax rate would have been about

2.1% in 1972 and 1.1% in 1973. These increased tax

rates have resulted in tax payments in 1972 and

1973, respectively, of approximately $3,500 and $24,-

000 in excess of the taxes which would have been

61

Pre-Trial Order

due and payable if benefits had not been paid to

strikers during the 1971-1972 CWA strike.

h. WECO’s unemployment insurance normal tax

rate increased from 0.7% in 1971, the lowest pos-

sible normal tax rate in that year, to 21% in 1972

(2.3% being the highest tax rate possible in 1972

for a positive account employer) and to 2.5% in

1973. Had benefits not been paid to WECO claim-

ants between the week ending September 12, 1971,

end the week ending February 27, 1972, its tax rate

would have been 2bout 0.7% in 1972 and about 0.3%

in 1973. These increased tax rates have resulted in

tax payments in 1972 and 1973, respectively, of ap-

proximately $880,000 and $1,150,000 in excess of the

taxes which would have been due and payable if such

benefits had not been paid.

i. AT&T’s unemployment insurance normal tax

rate increased from 0.8% in 1971, one of the lowest

possible normal tax rates, to 1.0% in 1972 and to 0.9%

in 1973. Had benefits not been paid to AT&T claim-

ants between the week ending September 12, 1971,

and the week ending February 27, 1972, AT&T’s

normal tax rate would have been about 0.9% in

1972 and about 0.7% in 1973. These increased tax

rates have resulted in tax payments in 1972 and

1973, respectively, of approximately $60,000 and

$127,500 in excess of taxes which would have been

due and payable if such benefits had not been paid.

j. In addition to the excess taxes paid in 1972 and

1973, as described above in paragraphs “f” through

“i”, plaintiffs may continue to be subject to higher

62

Pre-Trial Order

unemployment insurance tax assessments in sub-

sequent years than they would have been if the

unemployment insurance benefits described in para-

graphs “d” and “e” above, had not been paid to the

employees.

36. Payments made pursuant to the Unemployment

Insurance Law amounted to a maximum of $75.00 per

week net to each benefited employee during the afore-

mentioned CWA strike against plaintiffs.

37. TELCO’s petition to the Public Service Commis-

sion (“PSC”) for a rate increase in Case No. 26370

included TELCO’s unemployment insurance tax (both

normal and subsidiary taxes) as an increase in op-

erating expenses. TELCO’s brief to the PSC stated:

“C. New York State Unemployment Tazes

On 1/1/73 the tax rate increased from 2.9% to

3.7%. Since the 4/72-12/72 taxes were booked at

the old rate, an adjustment was made to reflect the

increase, The increase in other operating taxes is

$2,141,000 ($1,593,000 intrastate) and the decrease

in earnings available is $839,000 ($610,000 intra-

state).”

(TELCO brief to PSC, July 6, 1973, Appendix A,

p. 8, Item C.]

38. PSC Examiner Boschowitz’ August 29, 1973,

Recommended Decision ( Appendix G, p. 3, Item I(3) (c)

recognized, as an allowable operating expense, the in-

crease in TELCO’s unemployment insurance tax rate,

stating:

63

Pre-Trial Order

“(¢) New York unemployment taxes increased

from 2.9% to 3.7% on 1-1-73, taxes booked at old

rate, hence adjustment.”

The aforementioned increase was similarly recognized

by the PSC in its Opinion No. 73-79 (November 16,

1973, Appendix A, p. 1), which granted a rate increase.

This recognition is reflected in the following table, re-

lating to “Other Operating Taxes”, which taxes include

unemployment insurance and several other taxes.

Examiner As Commission As

Adjusted Adjustments Adjusted

Other Operat-

ing Taxes $326,445 $9,802(8) $336,247

39. From the year 1941 to June 1973, there has

been one strike by employees against TELCO which

lasted seven weeks and one strike against TELCO

which lasted more than seven weeks,

40. Approximately 50,000 CWaA-represented em-

ployees of Southern Bell Telephone struck for 72 days

in 1955.

41. During the strike referred to in “40”, above,

CWA gave financial assistance to some of its members

who participated in said strike.

42. In 1956, approximately 800 employees partici-

pated in a strike by CWA against the Ohio Consolli-

dated Telephone Company commencing on or about

July 15, 1956, and ending on or about February 27,

1957.

64

Pre-Trial Order

43. Approximately 7,700 CWA-represented employ-

ees of the General Telephone Co. of California com-

menced a strike on or about October 19, 1963.

44. Approximately 5,900 employees were partici-

pating in the strike referred to in “43”, above, in

February, 1964. Said strike ended on or about March

7, 1964.

45. Before and during the strike referred to in “43”,

above, CWA had a fund, one of the purposes of which

was to provide financial assistance to striking CWA

members (“strike fund”).

46. On or about October 19, 1963, CWA had ap-

proximately $10,000,000 in its strike fund.

47. During the strike referred to in “43”, above,

approximately $7,000,000 in financis] assistance was

provided to some CWA strikers f.om the fund re-

ferred to in “45”, above.

48. Some CWA members participating in the strike

referred to in “43”, above, received CWA assistance

in paying utility, mortgage, and certain other current

expenses.

49. Approximately 11,870 employees in the Plant

Department of the Illinois Bell Telephone Co. (“Illi-

nois Bell”), which employees were represented by the

International Brotherhood’ of Electrical Workers

(“IBEW”), commenced a strike on or about April 18,

1968, which strike ended on or about September 21,

1968.

65

Pre-Trial Order

50. Approximately 1,657 IBEW-represented em-

ployees in the Accounting Department of Illinois Bell

did not work during the strike referred to in “49”,

above, from on or about April 18, 1968, until on or

about May 5, 1968.

51. During the strike referred to in “49”, above,

IBEW gave financial assistance to some of its members

who participated in said strike.

52. In order to be eligible for financial assistance

during the strike referred to in “4”, above, members

were required to participate in pickcting when asked

to do so.

53. Approximately 10,020 CWA-represented em-

ployees in the Traffic Department of Illinois Bell com-

menced a strike on or about April 18, 1968, which strike

ended on or about May 5, 1968.

54. During the strike referred to in “53”, above,

CWA gave financial assistance to some of its members

who participated in said strike.

55. Approximately 142 employres in the Commer-

cial Department of Illinois Bell, which employees were

represented by the Commercial Telephone Workers

Union, did not work during the strike referred to in

“53”, above, from on or about April 18, 1968, until

on or about May 5, 1968.

56. Approximately 35 employees of [Illinois Bell,

which employees were represented by the Telephone

Commercial Employees’ Union, did not work during

66

Pre-Trial Order

the strike referred to in “53”, above, from on or about

April 18, 1968, until on or about May 5, 1968.

57. Approximately 20,000 employees in the Plant

Department of the New England Bell Telephone Co.

struck for approximately 13 weeks during 1968,

58. During the strike referred to in “57”, above,

some employees participating in said strike received

public welfare benefits.

59. Approximately 2,450 CWA-represented employ-

ees of the General Telephone Co. of Ohio commenced

a strike on or about July 16, 1973, which strike ended

on or about October 4, 1973.

60. During the strike referred to in “59”, above,

CWA gave financial assistance to some of its members

who participated in said strike.

61. During the strike referred to in “59”, above,

some employees participating in said strike received

Food Stamps.

62. Approximately 2,000 CWaA-represented em-

ployees of the General Telephone Co. of Indiana com-

menced a strike on or about July 23, 1973, which strike

ended on or about September 30, 1973.

63. During the strike referred to in “62”, above,

CWA gave financial assistance to some of its members

who participated in said strike.

64. Approximately 1,000 CWaA-represented em-

ployees of the General Telephone Co. of Kentucky com-

67

Pre-Trial Order

menced a strike on or about July 23, 1973, which strike

ended on or about December 28, 1973.

65. During the strike referred to in “64”, above,

CWA gave financial assistance to some of its members

who participated in said strike.

66. Approximately 400 employees of the General

Telephone Co. of Southeast (Alabama) commenced a

strike on or about August 12, 1974, which strike ended

on or about December 29, 1974.

67. During the strike referred to in “66”, above,

some employees participating in said strike received

union financial assistance.

68. During the strike referred to in “66”, above,

some employees participating in said strike received

Food Stamps.

68

Exhibits

(Piarntirrs’ Exuzsir 3; Transcript of 1971 Recorded

Telephone Message; New York City]

This is Ricky Carnivale, president of Local 1101, CWA.

Thursday, August 26th. 5 p.m.

I have just returned from the presidents’ meeting. We

have won the second battle. There is full International

recognition of our strike against New York Tel as of today.

Our bargaining committee stayed in session to outline

our demands. Additional assistance by research people to

back up our bargaining committee’s demands has already

been established by the International.

President Beirne and the CWA executive board have

favored the majority vote of the New York plant presidents

and the men and women they represent. The pressure is

this strike, and the picket lines are 90 per cent of that pres-

sure.

To the few people who have seen fit to return to work

. Get out of those damn buildings and support your

brothers and sisters who have fought your battles and sacri-

ficed to get more.

The bargaining will resume as soon as the outline is estab-

lished. The place and time will be established by notifica-

tion to each bargaining unit.

Remember that food stamps, welfare, unemployment is

not, I repeat, not based on the legalities of a strike, but on

the need and lost time wages of people.

We are having difficulties in various departments be-

cause of the interpretation by different commissioners and

erroneous news reports. Our Community Service Com-

mittee has brought the entire problem to Sid Lou, who is the

69

Plaintiffs’ Exhibit 13

representative of the New York Staie Labor Council. These

problems will be resolved shortly.

All members are eligible for unemployment starting Sep-

tember Ist.

Keep calling this tape till you get through.

Thanks for calling.

[Piarstirrs’ Exursit 13; Transcript of 1971 Recorded

Telephone Message; New York City]

This is Ricky Carnivale, president of Local 1101, CWA,

Monday, September 27th. 6:30 p.m.

Bargaining was recessed today at approximately 3:30

this afternoon. The union bargaining committee chairman,

Don Sanchez, was sick and asked to be excused. Although

his International alternate, Jack O’Brien, was there com-

pany chairman, Ray Williams, claimed that they could not

negotiate without Sanchez effectively. Negotiations were

rescheduled for 10:00 a.m. tomorrow, September 28th.

Contrary to all the rumors and opinions floating around

this local, our Community Service Committee reports that

food assistance will still be paid to those members not yet

receiving unemployment, or other sources of income. The

committee recommends that any problems you have in re-

gards to food assistance, come to the local with your unem-

ployment records and have them straightened out.

Also, legal evictions, foreclosures and termination of

service notifications such as gas, electric, oil etc. are being

paid by the defense fund.

Your diligence on these picket lines has brought our scab

list way down. Members who scab will be prosecuted to the

70

Plaintiffs’ Exhibit 20

fullest extent of our bylaws and constitution. As presi-

dent of this local, this I promise you.

The Community Service Committee also reflects a slight

backiog of food assistance checks. Tremendous volume

alone has caused this and they request that you be patient.

The volume of calls to this local and these tapes are also

iremendous. Keep calling until you get through. Again

bargaining is rescheduled for tomorrow at 10:00 a.m.

Keep in touch with this tape. Thank you for calling.

[Piarntirrs’ Exutsit 20; Transcript of 1971 Recorded

Telephone Message; Staten Island]

CWA, Local 1102, 467 Seaside Boulevard. This is Artie

Schulh speaking. Thursday, July 22nd. 1 p.m.

The continued arrogance of the New York Telephone

Company management in their refusal to reenter negotia-

tions with our bargaining committee will prolong our strike

action and inconvenience the public. There has been never

a major contract negotiated in New York that did not in-

clude improvements in fringe benefits.

This type of archaic thinking forces us to continue to re-

main off the job until a suitable offer is made. To return to

work now and then possibly go out again would only tend

to prolong our eligibility for benefits, such as unemploy-

ment insurance, food stamps, etc.

Be sure to continue your picket assignments. Picketing

is everyones responsibility. If you have any doubts of what

your assignment is, call the local office on 447-4201.

Thank you for calling.

71

[Piaintirrs’ Exutsit 24; Transcript of 1971 Recorded

Telephone Message; Staten Island]

CWA, Local 1102. This is Jim Curran. Tuesday, Decem-

ber 7th.

Bargaining will resume Wednesday, December 8th. The

union is considering the company’s request for federal

mediation at future negotiations.

According to the Staten Island Advance on Friday, De-

cember 3rd, our councilman Frank Deondelulo introduced a

resolution which asks the State Legislature to repeal the

law enabling strikers to obtain unemployment insurance.

This ex-dentist now finds he has all the qualifications for

public office is certainly alienating labor and will find this

out when he tries for re-election.

Don’t forget the Christmas party on Sunday, December

19th, 1:00 p.m., at Labetti Post. All members and their

families are invited free. Santa Claus will be there with

presents for all the children.

Thank you for calling.

[Puantirrs’ Exursrt 26; Transcript of 1971 Recorded

Telephone Message; Westchester County]

Sunday, September 12th. This is Leilani Moyers.

Bargaining will resume on Monday. At Saturday’s morn-

ing and afternoon sessions the union’s demands on town

reclassifications, union shop and clerical improvements

were discussed.

72

Plaintiffs’ Exhibit 34

We remind you that members are eligible for emergency

food assistance under the CWA defense fund until such

time as they receive unemployment checks. Call 472-1103

for an appointment.

Members of Local 1198, Western Electric sales, are also

eligible. They should call Local 1198 president, Tim Scarry,

on 472-6070.

This is CWA, Local 1103, Scarsdale, New York.

Thank you for calling.

[Piarntirrs’ Exner 34; Transcript of 1971 Recorded

Telephone Message; Westchester County]

December 29th. This is Dan Keenan.

We have been on strike 169 days. It could just be pos-

sible that it has dragged out this long because the com-

pany still doesn’t have the sense enough to realize that we’re

serious about the things we want, need and demand.

There have been management inspired rumors originat-

ing in Upstate New York that as of certain dates in Janu-

ary certain striking employees will be replaced. These

rumors are totally erroneous. No part of this state has

been affected and no part of the state will be affected.

This typically underhanded company tactic will fail just as

their other gutter style strikebreaking tactics have failed.

But we are putting this membership on notice—this strike

must be won on the picket lines. We expect to see every

single member of Local 1103 walking those picket lines. And

their presence or the lack of it, will be verified by execu-

tive board members, chief stewards and picket captains.

73

Plaintiffs’ Exhibit 36

Absolutely no benefits, including defense fund assist-

ance, will be granted to any member who does not fulfill his

or her picket obligations. I emphasize—there will be no

benefits granted to those members who do not walk a picket

ine assigned.

“ae sichet line is where this strike will be won. Get out

there and let New York State management and AT&T know

where you stand. This strike is being won. It will be over

the day you hit that picket line.

This is CWA, 1103, AFL-CIO, Scarsdale, New York.

Thank you for calling.

[Pramtrrrs’ Exnsit 36; Transcript of 1973 Recorded

Telephone Message; Westchester County]

Sunday, April 1st. 1 p.m. This is Bob Brannigan, craft

rep installation and repair.

I would like to thank the members who took the time and

trouble to vote in the convention delegate election this past

week. I would also like to thank the election committee

and the volunteers who helped chairman Pat Braggio with

this arduous task of counting ballots. No

In last night’s Gannet chain newspaper, they editori-

alized again, about aid to strikers and referred to a survey

recently taken by New York State Senator Bernard Gordon.

The response in his area, the 36th Peekskill area, was that

76 per cent responded against aid to strikers. They also

mentioned that there are many union people in the Peekskill

area who are against aid to strikers. I would like to see

our members write to Senator Gordon and give their views

aw Cee SSSR re ON a, ee aE “ee ws Mad An Mash ee oe

74

Plaintiffs’ Exhibit 38

about aid to strikers. If we didn’t get aid during the big

strike of ’71 and ’72, I don’t know where we would be right

now. They keep harping on the point that it is unfair for

an employer to subsidize a strike against themselves. But

what about an employer who wants to prolong a strike and

gain public animosity against the strikers? If anyone is

interested in writing to Senator Gordon, call this office for

his address.

Remember our mention of the Smith-Walker Bill in Al-

bany last year which was a bill to deny aid to strikers?

Well that is back again, only this time the sponsors are

New York State Senator Present, Assemblyman Calogero

from the Utica area, and our own Assemblyman Richard

Ross from the Mount Vernon area.

This is CWA, Loca] 1103, AFL-CIO, 791 Central Avenue,

Searsdale, New York.

Thank you for calling.

[Piarstirrs’ Exuisit 38; Transcript of 1971 Recorded

Telephone Message; Nassau County]

CWA, Local 1104. This is Jim O’Connor speaking.

There was a meeting held with president Beirne and the

23 plant presidents on Monday, August 23rd. There were

numerous suggestions put forth both by president Beirne

and the local presidents. And after six hours of discussion

and taking our suggestions, under advisement, president

Beirne adjourned the meeting. We will meet again with

the presidents on Thursday and give us his decision as to

75

Plaintiffs’ Exhibit 41

the course we will follow. In the meantime the strike will

continue.

Our members are entitled to unemployment insurance.

We have contacted the local employment insurance office

and beginning Monday, August 30th, they will accept ap-

plications.

Those members whose Social Security numbers end with

0000 to 2499 need apply Monday; from 2500 to 4999, apply

Tuesday; from 5000 to 7499, apply WVednesday; from 7500

to 9999, apply Thursday.

Please look up the address for the closest office in the tele-

phone book.

Thanks for calling.

[Pramtirrs’ Exuisit 41; Transcript of 1971 Recorded

Telephone Message; Nassau County]

This is CWA, Local 1104, West Hempstead, New York.

Friday, September 17th. This is Pat Meyers.

Bargaining is continuing today between the union and

the company. Yesterday’s session pertained to discussions

about overtime for all Saturdays and some company de-

mands. The union bargaining team is not issuing daily

reports. They will only notify us when they have something

concrete to report.

There will be a meeting Monday, September 20th at 10:00

a.m. for all the chief stewards and shop stewards at the

Plumbers Hall, Willis Avenue, Mineola. It is important

that the stewards attend so that they can get the informa-

tion to pass on to the members.

4 oar sil

ee

a. ayl-

7 * 4. > Paes

76

Plaintiffs’ Exhibit 46

In as much as vou will not be receiving a full unemploy-

ment check next week, the union will continue to give out

food assistance. You will receive the difference between

your unemployment check and your normal food assistance.

An example: If you receive $30 in food assistance and

you get a check for $18.75 from the unemployment, you

will receive $11.25 from the union. Anyone not eligible for

unemployment insurance will continue to receive their nor-

mal food assistance.

The local will also be able to give out some mortgage

and rent help starting next week. Anyone who is in need

of this help, please contact the local office by telephone

first.

Thank vou for calling.

[Prarntirrs’ Exursit 46; Transcript of 1971 Recorded

Telephone Message; Queens County]

Wednesday, September 1st. 6:00 p.m.

At a membership meeting held this morning at Antun’s

Restaurant, president John Renck gave a detailed report

on the status of the strike in bargaining.

There has been no counteroffer from the company on any

of our demands as of this time.

Over 1,000 members gave a standing vote of confidence to

John Renck and his position not to return to work without a

contract.

A formal request is being made to the CWA, that the

International Union pay for the Blue Cross and Blue Shield

premiums during the strike period.

77

Plaintiffs’ Exhibit 56

All members are entitled to unemployment benefits as of

today and should file at the office nearest your home.

Our strike is as strong, if not stronger, than it’s ever

been.

This is Ed Creegan for Local 1106, CWA, Queens, New

York.

Thank you for calling.

[Piaintirrs’ Exuisit 56; Transcript of 1971 Recorded

Telephone Message ; Rockland County]

CWA, Local] 1107

Sunday, Augusi 15th. CWA, Local 1107.

On behalf of the officers and executive board of the local

and all the local officers of New York State, I want to con-

gratulate the members for rejecting the company offer.

The vote was 11,405 reject; 9,734 accept. Your bargaining

committee will be going back into bargaining Monday, Au-

gust 16th. I can assure you that we, the committee, will

be extending ourselves to the fullest to come away from

the table with a contract acceptable to everyone and we will

stay out on strike until this is attained.

Through your actions over the last four weeks and the

results of your vote, you have demonstrated to the company

despite their propaganda and underhanded methods, that

you are not second-rate citizens and will not be treated as

such. That you are equal at least to a painter whose hourly

rate in three years will be $7.45 compared to $5.90 for you.

Your bargaining committee needs your support now

more than we’ve ever needed it before. Just continue the

78

Plaintiffs’ Exhibit 65

good fizht. Remember, in another week and a half you will

be entitled to unemployment benefits and there are certain

benefits you are entitled to now. If anyone has any ques-

tions regarding this please call the union office.

And you clerical people . . . If you haven’t heard, a

grocery clerk for A&P in three years will be making $190.00

per week.

Thank you again. Keep up the fight and keep in touch

with vour stewards.

There will be a steward’s meeting Monday, August 16th

at 7:00 p.m.

Charlie Blaek.

[PLarntirrs’ Exuisit 65; Transcript of 1971 Recorded

Telephone Message; Suffolk County]

CWA, Local 1108, Bay Shore, New York. Saturday, Sep-

tember 25th. 2:00 p.m. Norman Henschel speaking.

Negotiations have been recessed until Monday, Septem-

ber 27th. The company is still insisting that the original

July 18th offer be resubmitted to the membership. They

must be nuts. They keep b...s... ing about the effect of

the Nixon wage freeze on bargaining instead of all the

b.s. all they have to do is to loosen up the purse strings,

bargain on the non-money items and let us worry about the

Nixon wage freeze and the Cost of Living Council. Just

give us something that we can present, not a lot of b.s.

It is the advice of this local and the International that

members do not pay telephone company bills for BME and

EME. Claims should be processed as usual. Claims not

honored due to the strike will be paid by the defense fund.

79

Plaintiffs’ Exhibit 69

Next week most members should receive a full check from

New York State Unemployment. Food assistance will be

only paid to those members who show an unemployment

check in a lesser amount than their normal food assistance

entitlement. Absolute proof will be required for an assist-

ance.

Next week, each day the Community Service’s Committee

will meet at the local offices, 1265 Sunrise Highway in Bay

Shore. The office space is limited. Please make a telephone

appointment before applying for any assistance. Most

problems regarding utility and mortgage payments can be

resolved by a telephone call rather than office visit. The

office number is 665-2680.

Our case against James Kirby, Commissioner of Social

Services was presented before Judge Orin G. Judd on Fri-

day, September 24th. As usual with most political appoint-

ees in Snffolk County, Mr. Kirby was not prepared. The

hearing will continue Tuesday, September 28th with a pos-

sible decision by Thursday, September 30th.

Thank you for calling.

[Piarntirrs’ Exnisit 69; Transcript of 1971 Recorded

Telephone Message; Suffolk County]

CWA, Local 1108, Bay Shore, New York. Monday, Octo-

ber 25th. Norman Henschel speaking.

Intensified bargaining sessions continue today in New

York City. The company has agreed to make every effort

to reach an agreement by November Ist. Any change in the

bargaining will be reported on this tape.

80

Plaintiffs’ Exhibit 69

The union bargaining committee is working very dili-

gently in order to reach an equitable agreement by the No-

vember Ist deadline. Bargaining with the Bell System is

a very tough, tedious and thankless job. It is very hard to

bargain with a monopoly that doesn’t give a damn for its

employees.

The company attitude has now changed because of the

outside business pressures. Their unemployment rates have

skyrocketed and the strike now effects other related indus-

tries. For example, it has been reported that the Western

Electric Company in New Jersey has temporarily laid off

some 500 people due to being overstocked. The business

community has turned against the company due to the many

troubles and the tremendous backlog of customer orders

which now number well over 800,000.

The company must realize the importance of a decent

contract. Neither the company nor the employee can af-

ford a strike every three years. The only way to circum-

vent such a situation is to reach an agreement that is

equitable to both parties. A good contract is the only as-

surance of future labor peace and labor peace is the only

solution to improve service which the public rightfully

deserves.

Thank you for calling.

81

[Prarntirrs’ Exuisit 71; Transcript of 1971 Recorded

Telephone Message; Geneva]

Friday, September 3, 1971. CWA, Local 1114, Geneva,

New York.

Negotiations took place on Tuesday and Wednesday of

this week. The company broke off on Thursday and today

the meeting resumed.

To all of you stalwarts who saw your duty and are doing

it in the face of all the pressures, a ray of light has shown

through. All members and nonmembers who have had the

fortitude to stand their ground and who can hold their

head high are now eligible for unemployment insurance.

All in the bargaining unit can now sign up at your earliest

possible convenience.

For sure, in case anyone has any doubts, the strike is

still on and in full force. It is a full-fledged strike, legal

in all respects and with the full backing of the Interna-

tional. Good to see there are still some with guts enough

to stand for what is right even in the face of all the ugly

rumors and the unethical tactics of the employer. There

will be a day of reckoning and we can all go back to work

knowing we did a good job.

Thank you for calling. Keep calling for up-to-date news.

82

[Piarmtirrs’ Exnisit 79; Transcript of 1971 Recorded

Telephone Message; Kingston]

CWA, Local 1120 news with offices at 580 Broadway,

Kingston, New York. Wednesday, August 25, 1971.

The most current information we have at this time is

that all 23 local presidents will be meeting with president

Beirne tomorrow in New York City. This meeting was

called by president Beirne himself last Tuesday when we

met with him. Whereas, at that time, he took some of the

local president’s suggestions under advisement and will

report back to us. It is absolutely necessary that the mem-

bership of this local stand firm in their present position,

maintain picket lines and trust in the elective leadership of

this local. I strongly suggest, any and all information,

kindly rely on the leadership of this local to give you this

information. We all know the press media has occasions

to distort the facts. We wi!! do our best to keep you as in-

formed as we possibly can.

On the bargaining scene, negotiations have been recessed

at the present pending the meeting with president Beirne

tomorrow.

It is true, three locals in this state have chosen to return

to work at the direction of their local leadership without

the full knowledge of the rest of the state presidents. These

three locals are Elmira, Auburn and Binghamton. I am

sure we all know who they are. They have been in and out

so many times that I am very sure the membership them-

selves in those locals are confused.

On the local scene, I have been in touch with the people

from the New York State Unemployment Service and have

83

Plaintiffs’ Exhibit 80

been reassured that as of September 2nd we will be eligible

for unemployment benefits. I have instructed all the area

representatives to contact in their respective areas, those

people in charge of the unemployment offices to establish

an orderly way of applying for unemployment benefits. We

are looking forward to a smooth operation in regards to

our members applying for these benefits.

On the food stamp problem in Ulster County . . . No deci-

sion has been rendered as yet from our hearing. We are

very hopeful that a decision will be rendered by the end of

this week.

For further information continue calling the tape of this

local.

I thank you for calling. President Robert Smith speak-

ing.

(Prarstirrs’ Exntsit 80; Transcript of 1971 Recorded

Telephone Message; Poughkeepsie]

August 25th. CWA, Local 1120, Poughkeepsie, New York.

Yes, there is an area in Upstate, New York that has re-

turned to work by order of their local president—Local 1118

of Binghamton, along with Geneva, Newark, Corning and

Ithaca areas.

This membership, 1120, must realize that there is a very

small membership and one completely surrounded by Gen-

eral Telephone Company, which is of a different union.

This membership should also realize that in past incidents

that they were in and out so many times that they them-

selves and their president, when he was at presidents’ meet-

ing did not know where they stood at one given moment.

’

-

y

4

ee a eae

84

Plaintiffs’ Exhibit 82

Also, I feel they made a very foolish mistake in return-

ing to work prior to the upcoming 49th day which makes

us eligible for New York State unemployment insurance

which you have paid into most of your working life. You

are on the threshold of receiving New York State unemploy-

ment that no New York Telephone employee has ever re-

ceived before.

Along with the federal food stamp subsidy, which I re-

alize that some areas are having difficulties, I feel that

we’re over the hump. We’re just waiting now for tomor-

row’s results of meetings with the local presidents’ of New

York State and Joseph Beirne of the International. What-

ever results happen, I will relinquish to this membership

as soon as possible.

This is your area rep George Herman.

Keep smiling.

[Piarntirrs’ Exureit 82; Transcript of 1971 Recorded

Telephone Message; Poughkeepsie]

Communication Workers of America, AFL-CIO, Local

1120, Poughkeepsie, New York. September Ist.

The bargaining committee met today and yesterday. Yes-

terday they talked on substantial wage increase, elimina-

tion of “N” days, clerical and chauffeur upgrades. On va-

cations: If you worked five years you should get three

weeks. If you worked ten years you should get four weeks.

A better and improved hospitalization plan, which will prob-

ably include your dental and paid prescription.

85

Plaintiffs’ Exhibit 86

The bargaining committee feels that today they should

be able to complete the rest of the demands and their pro-

posals.

A steward’s meeting is pending. Stewards will be called

by phone as to where and when and time. In regard to

members who do not show up for picket duty there are pos-

sibilities of being brought up on charges by the trial’s com-

mittee.

We also suggest that you check with your unemployment

office for unemployment insurance and your food stamp

program. For those of you that need information in re-

regard to those, we suggest that you call Ken Hornbeck,

the chairman of the committee services.

This is your area rep George Herman.

Thank you for calling.

(Puarntirrs’ Exuisit 86; Transcript of 1971 Recorded

Telephone Message; Syracuse]

Tuesday, June 29th.

Attention all members CWA, Local 1123... On Monday,

June 28, officers of the CWA locals in Onondaga County met

with the county welfare department and discussed aid for

strikers. It was a very favorable and informative meeting.

Complete details will come later.

Also w. met with the unemployment insurance. One

thing for sure . . . 49 day waiting period before collecting

the unemployment insurance but it will be there.

86

Plaintiffs’ Exhibit 93

More strike information will come in the Loca] 1123 news

bulletin.

Thank yon for calling. This is CWA, Local 1123, Syra-

cuse, New York, 700 East Water Street, Midtown Plaza.

[PLarstirrs’ Exuisir 87; Transcript of July 30, 1971,

Recorded Telephone Message; Syracuse]

Local 1123, CWA, Syracuse, New York.

We have received definite word that we will receive un-

employment benefits after 49 days on strike. President

Poole is now negotiating for food stamps and welfare.

Keep calling this tape for further information.

Thanks for calling.

[Piarntirrs’ Exursit 93; Transcript of 1971 Recorded

Telephone Message; Watertown]

Local 1124, Watertown, New York. Wednesday, Sep-

tember Ist. 5:15 p.m.

Negotiations are taking place and the demands are be-

ing placed on the bargaining table. Today the rest of the

demands are being placed on the table. Discussions took

place yesterday on the elimination of the “N” day and the

upgrade of clerical and chauffeur. The committee expects

the company’s offer in the next few days. The money and

the big city allowance were discussed today. When we re-

ceive additional information we will place it on the tape.

87

Plaintiffs’ Exhibit 93

Members are being called to apply for unemployment

insurance. All members should have applied by Friday,

September 3rd. More are to be called tomorrow. If you

have not been called by Thursday, September 2nd, call this

office because many of our members are unable to be reached

by phone. The last day worked was July 13th. This in-

formation is needed for your unemployment form. Also,

take vour Social Security card.

Members should sign up for food stamps for October by

September 10th. After you sign up for your unemployment

come up to the office and additional information on the

BME and the life insurance will be given to you in the

form of a handbill.

The picket schedu’ for Thursday, September 2nd at 170

Stone Street, from 7:00 to 10:00 is Glen Lehigh and Don

Smith; from 10:00 to 1:00 is Bill Carr and John Mullen;

and from 1:00 to 4:00 is Rudy Thourdeau and Bob Rose.

The officer on duty will be Warren Leffeur. The office will

be manned from 9:00 to 12:00 by Sue Miller and from 1:00

to 4:00 by April O’Shea.

Keep calling the tape for further information.

This is CWA, Local 1124, AFL-CIO, Watertown, New

York.

Thank you for calling.

s

Ea eee ee ee ee, FLY eee L | Oe on

ae ee ee > er

88

[Puamstirrs’ Exuisit 97; Transcript of 1971 Recorded

Telephone Message; Schenectady]

CWA, Local 1125. Tuesday, August 24th.

Yesterday a meeting was held in New York. In attend-

ance were the 23 local presidents and Joe Beirne. We had

a five hour meeting to discuss the complex situation of the

New York plant in light of Tricky-Dick Nixon’s wage

freeze. We will be meeting again with President Beirne

on Tuesday morning, August 26th.

To file your unemployment insurance the following

method will be used for your convenience. You may come

to the union office and make out a form before August 30th

between the hours of 7 a.m. to 2 p.m., Monday through Fri-

day. We would prefer that vou make out the form at the

union office to expedite matters.

Your reporting day will be based upon the last four num-

bers of your Social Security number:

001 through 1099: Monday, August 30th

2000 through 3099: Tuesday, August 31st

4000 through 5099: Wednesday, September Ist

6000 through 7099: Thursday, September 2nd

8000 through 9099: Friday, September 3rd

The time that you are to report is determined by the last

number of your Social Security number.

0 will be 8:30 to 9:00 a.m.

1 will be 9:00 to 9:30 a.m.

2 will be 9:30 a.m. to 10:00 a.m.

3 will be 10:00 a.m. to 10:30 a.m.

4 will be 10:30 a.m. to 11:00 a.m.

89

Plaintiffs’ Exhibit 104

5 will be 11:00 a.m. to 11:30 a.m.

6 will be 1:00 p.m. to 1:30 p.m.

7 will be 1:30 p.m. to 2:00 p.m.

8 will be 2:00 p.m. to 2:30 p.m.

9 will be 2:30 p.m. to 3:00 p.m.

Claims may be filed beginning Angust 30th or before at

the local office.

Thank you for calling.

[Puarmtirrs’ Exasir 104; Transcript of 1971 Recorded

Telephone Message; Glens Falls]

Monday morning. September 13, 1971. Glens Falls, New

York. This is Hart Rhodes, Local 1127 president speaking.

After sessions held Saturday negotiations were recessed

and are scheduled to resume this morning. President

Beirne has called a conference of New York plant bar-

gaining committee members and local presidents for 2 p.m.,

Wednesday, September 15 in New York City. I will be at-

tending that conference and will report to you via this

tape no later than Thursday, September 16th.

A local executive board meeting will follow the meeting

with president Beirne, followed by a general membership

meeting to be held no later than the middle of next week.

More details on these meetings will be placed on this tape

following Wednesday’s presidents’ conference with presi-

dent Beirne.

Warren and Washington County members should reapply

for food stamps on or before September 17th. Town of

}

i Fans a Vee 5 Ph all auch s Daa aes

OR ae clue «f seu ie “Tie om .

90

Plaintiffs’ Exhibit 112

Monroe members may apply at the Town Hall in South

Glens Falls on September 16th.

All members are reminded to report at the specified time

and date at the New York State Unemployment Insurance

office on the day of this week assigned to you. You must

do this to get your unemployment insurance check.

If you wish to apply for CWA defense fund assistance

please do so any time Thursday, September 16, between

9 a.m., and 9 p.m. at the local union office, 71 Main Street,

South Glens Falls.

Thanks for calling.

[Puarntirrs’ Exursrr 112; Transcript of 1971 Recorded

Telephone Message; Potsdam]

This is Communication Workers of America, Loca] 1128.

October 25th. 12:00 p.m.

A number of dirty birds flew into this local Friday night

—dirty rotten scab birds. But then we are all aware of this

now. Action will be taken to counter this.

The business community, which heretofore has supported

the telephone company, is now beginning to crack.

The drain on unemployment compensation fund has been

so great, the fund is threatened with total collapse. Under

the law when such a condition exis‘s, the entire business

community is required to replenish the fund. They will be

hit in their pocketbook--where it hurts.

Thank you and good night.

91

(Puamrirrs’ Exursrt 114; Transcript of 1971 Recorded

Telephone Message]

Thursday, July 15, 1971

Time: 10 PM

Joe MeNiff, President CWA Local 1150

We are doing quite a bit of work trying to clarify the food

stamp program. In Manhattan, they claim they don’t want

us to file before the 27th. In Bergen County, they claim

not to file later than the 26th. In Mercer County in Jersey,

they say not to file other than on the 20th. In Long Island,

they claim file immediately. We are drawing up all these

instructions trying to get our people on board—we have

the introductory letters as members of this local ready to

mail out to those who need them. In the meantime, I want

to compliment the members of this local for their showing

up and picketing not only at “32” but at 811, White Plains,

Long Island and every other area in Jersey that we are

using them.

In White Plains yesterday, we had a man hit by a car

of a scab. Today in Mt. Kisco, another man was hit by a

car driven by a scab. In Newark it looks like the Police De-

partment which was held guilty for the riots in 1967 by a

commission which was chaired by a representative of the

New Jersey Bell, seems to forget, and is taking out what-

ever burn they have on the pickets. I understand three

women who were on a picket line were ruffed up today by

the police. There was a charge of police brutality pressed

against them. Bargaining did continue today. This eve-

ning I was called by a member of the bargaining unit who

tells me that all presidents of the Long Lines Unit will be

92

Plaintiffs’ Exhibit 122

brought together to meet at starting noon on Sunday. What

this is all about I'll be able to tell you more about it on

Monday. In the meantime, maintain those picket lines; ac-

cept your responsibility to walk once in about every eleven

days.

Thank you for calling.

[Prarstirrs’ Exnrer 122; Transcript of 1971 Recorded

Telephone Message]

Wednesday, September 29, Local 1190, 260 West Broadway,

New York City. This is John Flanagan.

The CWA Bargaining Committee has charged the Company

with hiding behind the freeze to avoid responsible collective

bargaining. The Telephone Company can make any wage

proposal they choose to, subject to approval by the Presi-

dent’s Council. If any portion of the agreement is not ap-

proved by the Government, it could be given to the mem-

bers when the controls have terminated. So far the Com-

pany has refused to bargain not only on money but on non-

monetary items not covered by the freeze. In Michigan and

Ohio, the members have voted not to accept temporary

management assignments to replace supervisors being sent

to New York City. Complaints have been filed in 9 States

and the District of Columbia, with the Public Utilities Com-

mission. Each of these States has sent supervisors into

New York. The Federal Judge has granted a temporary

restraining order against the Suffolk County Commis-

sioner of Welfare, requiring him to process applications

from our members. George Meany has assigned a member

93

Plaintiffs’ Exhibit 128

of his staff to handle all complaints about food stamps in

his County. As a result, the Department of Agriculture

investigators have visited trouble spots and cleared up

most problems. The Company has admitted to a backlog

of over 300,000 Installations and predicts monumental prob-

lems when the strike is terminated. The strike is more than

91% solid in New York Plant. Bargaining sessions are

scheduled for today.

New recordings will be made as information is received.

Thank you for calling.

[Puarntirrs’ Exuipit 128; Transcript of 1971 Recorded

Telephone Message; Albany]

Local 1191—Friday, July 2

As we near the strike date, bargaining is continuing in

an effort to avert a strike. If the Company will not come

across with a good substantial offer before July 14, they

will force us off our job and out into the street. We in

Western Electric have been working on a day-to-day basis

since May 1, that’s two months that we have been on the

old contract and that is more than ample time for the

Company to know our needs but they have offered us

very very little in order to support our families. Will they

come up with something in the next few days remaining?

94

Plaintiffs’ Exhibit 142

Only in the future will we know if the Bell System will

force us out of work. We have prepared ourselves with

picket assignments and in fact have come up with a new

shorter schedule to benefit everyone. The new assign-

ments will be given out at the July 13 Union Meeting and

while you are there, if you have not received your Health

Service card, pick it up then—it will benefit you and your

dependents. Also, 49 days after July 14 you will be en-

titled to receive unemployment. Food stamp information

and other services available to you during the impend-

ing strike will be available through your Local Office.

We have had time to prepare so you should be ready if

the need arises.

This is Lee Hatfield, your Albany Area Representative,

wishing you and your loved ones a safe and happy Fourth

of July holiday. Thank you for calling.

[Piaintirrs’ Exutsrt 142; Transcript of 1971 Recorded

Telephone Message; Buffalo]

Tri-Local Council, CWA, 706 Beach Road, Buffalo, New

York. Friday, October 22nd. 5:00 p.m.

As of this time no word has been received from the bar-

gaining committee lifting the news blackout. If word is

received the tape will be changed tomorrow morning.

95

Plaintiffs’ Exhibit 143

There is a chief steward’s meeting, Monday, October

25th, 2:00 p.m. at the Marigold Manor on Maryvale Drive.

Due to a misunderstanding at the unemployment report

location, anyone who was not on vacation, I repeat, not

on vacation the week of October 11th and still has a “P”

marked on their unemployment calendar for the holiday,

Monday, October 11th, it was in error. These members

should call the union office and give us your name and social]

security number so we can straighten out this error with

the unemployment department.

And also, remember October 25th will also have to have

an “N” marked on the calendar for next week.

Thanks for calling.

[Piarstirrs’ Exursit 143]

COMMUNICATIONS WORKERS OF AMERICA

AFL-CIO

85 Worth Street

New York, New York 10013

April 8, 1971

To Presidents of Bell System CWA Locals

Fraternal Greetings:

President Beirne has designated Western Electric In-

stallation and C & P of D. C. as the pattern setters in this

years’ contract negotiations.

Those of you who attended the Denver Convention and

workshops, heard President Beirne describe the serious

problems that confront us. The situation has not changed

since Denver.

96

Plaintiff's’ Exhibit 143

On April 9th, a meeting of all Defense Fund Agents

will be held in Washington. I have appointed my Assist-

ant, Gene Mays, as the District #1 Defense Fund Agent.

The primary purpose of the meeting will be to program

Defense Fund Training sessions for all Bell Locals.

Upon Gene’s return, we will be announcing the details

of the program. However, at this time we can advise you

that the classes will be held in each area of District One.

Each Local Union will be asked to designate an officer and

the Community Services Chairman to attend. These two

officers will then be responsible to train the Local Commit-

tee responsible for administration of the Defense Fund.

Thus, it would be helpful if each Local President deter-

mines now who will attend the classes and also activate

the CSC if it is now in a dormant stage.

Local Unions in District One that are now in bargaining

and in the first cluster are Western Electric Installation,

New Jersey Traffic, New England Directory Clerical and

Western Electric Manufacturing in Buffalo. These Local

Unions should begin to establish strike committees respon-

sible for, among other things, assignment of picket duty

times and locations for each and every member. The staff

will be available to assist any Local requesting assistance.

Now is the time to make the preparations.

We'll advise you of any significant developments.

Sincerely and fraternally,

/s/ M. Bane

Morton Bahr

Vice President

MB/pb

ec: G. Cramer

District One Staff

97

[Pianstirrs’ Exutsfr 144)

COMMUNICATIONS WORKERS OF AMERICA

AFL-CIO

District OnE

85 Worth Street

New York, New York 10013

June 21, 1971

File: 1.33

TO: Local Presidents, Locals 1101, 1102, 1103, 1104, 1106,

1107, 1108, 1150, 1190, 1195, 1196, 1198

FROM: E. J. Mays, Assistant to Vice President

SUBJECT: Defense Fund School

Now that a strike date has been set for all Bell System

Units, we are scheduling a Defense Fund School to be held

at the District Office, 2= Worth Street, N. Y., N. Y. on July

7, 1971 beginning at 10:00 A.M.

We request that the financial officer and the chairman of

the Local’s Community Services Committee attend this

school.

The Union’s Constitution now mandates that each CWA

Local must have an established and functioning Community

Services Committee. Locals who do not have established

and functioning C.8.C. Committees, we urge you to estab-

lish such Committee AT ONCE, as NO “Defense Fund

Monies” will be advanced to any Local until it has been

certified that the Local has an established and functioning

Community Services Committee.

98

Plaintiffs’ Exhibit 146

DATE: July 7, 1971

PLACE: District Office, 4th Floor

TIME: 10:00 A.M.

E. J. Mays

EJM: slm

ec: Staff Servicing Downstate

Bell Locals

[Puaintirrs’ Exuisit 146)

COMMUNICATIONS WORKERS OF AMERICA

99

Plaintiffs’ Exhibit 146

through you, the Community Services Committees, that we

all have a real job ahead of us in trying to stretch this

money as far as it will possibly go.

Obviously, the need at this point is not near as great

or as critical as it will become later, which gives further

emphasis to the use of frugality and dollar stretching.

I know that I speak for the members of the CWA Execu-

tive Board and the CWA Staff who serve as Defense Fund

Agents and Field Representatives, in saying to you that

our entire Defense organization stands ready to assist you

in whatever way we can. We are all in this struggle to-

gether and will emerge not only triumphant but with

greater appreciation for such things as brotherhood and

solidarity.

1925 K Street, Northwest Sincerely and fraternally, :

Washington, D. C. 20006 N

/e/ Guewn E. Watts 4

To: CWA Local Presidents July 14, 1971 Glenn E. Watts cy

Sussect: 1971 Bell System Strike— File: 1.33 Defense Fund Director Hi

First Advance x 1.30

Fellow Officers: ;

Now that we are on strike, I felt that I should advise

you that the initial Defense Fund advances have been sent

to the Defense Fund Agents in each District and your Local

will, in the very near future, receive the first advance.

I know that the main objective at this point is the main-

tenance of picket lines and the morale of the members. As

this first money goes out, I wanted to remind you and

100

[Piamstirrs’ Exurerr 147]

Communications Workers of America, AFL-CIO

85 Worth Street

New York, New York 10013

September 7, 1971

TO: All New York Tel Locals and Locals 1150, 1151

1152, 1190, 1191, 1195, 1196, 1197 & 1198

FROM: E. J. Mays, Defense Fund Agent

SUBJECT: New Guidelines for Food File: 1.33

Assistance New York Telephone x1.30

Strike

For the weeks of September 6th and September 13th,

those who qualify on absolute need will receive $2.00 per

family member per day—not to exceed 5 days per week and

$30.00 per family unit per week.

No food assistance is to be given after September 7,

1971, since the members will have other income—which will

average $75.00 per week from the New York State Unem-

ployment Compensation.

E.J.M.

EJM/pb

101

(Puawntirrs’ Exit 148]

Morton Baur, Vick PResiENT

District 1

Comn.unications Workers of America

85 Worth Street

New York, N. Y. 10013

Telephone: 431-5937

September 7, 1971

TO THE MEMBERS OF THE

NEW YORK PLANT UNIT

Fellow Members:

In President Beirne’s August 30th letter to you, he indi-

cated that we will, from time to time, report to you on the

status of negotiations, the problems that confront us and

what is being done to resolve these problems. This is the

first such report.

[4] I want to also report to you on some other matters of

the utmost importance.

Social Service Assistance (Welfare)—Some of our mem-

bers are experiencing difficulties in receiving welfare assist-

ance simply because they are strikers. The New York State

Social Service Department has ruled that strikers are eligi-

ble to receive welfare benefits as long as they meet the

102

Plaintiffs’ Exhibit 148

other qualifications. However, certain counties are defying

the State. In Onondaga County (Syracuse) a Judge has

issued a preliminary injunction permitting payments to a

[5] striker’s family but not to the striker himself. This

matter will shortly go to trial. The International Union has

intervened in the case and has instructed our attorneys to

do whatever is necessary to protect our members.

Suffolk County Social Services Commissioner Kirby

has taken the position that neither strikers or their families

can receive public assistance. The International Union has

instructed our attorneys to take legal action against Com-

missioner Kirby and any other public official that takes

similar action against our members and their families.

Out-of-town Supervisors. On August 31, President

Beirne instructed the Union’s attorney’s to take legal action

against New York Telephone for the importation of out-

of-town supervisors into New York City. The International

Union’s lawyers obtained a summons in Manhattan Crimi-

nal Court charging New York Telephone with violating the

Administrative Code of the City of New York. The Com-

pany immediately transferred the supervisors to Long Is-

land, Westchester and Upstate and sent New York Tel

supervisors from these areas into the City. The Interna-

tional Union will charge this Company action ecotistitutes

a circumvention of the Law and is illegal. The Company

must appear in Criminal Court on Sept. 13.

Picketing. Fewer than one-third of the Telephone Com-

pany properties are being picketed. This is not in the best

interest of the membership. The Local Presidents urged a

rejection of the July 18th contract. A majority of voting

103

Plaintiffs’ Exhibit 148

members rejected and a legal strike is now under way.

Every Local officer and every Local member, unless specifi-

eally excused, has an obligation to walk the picket lines. So

long as we cannot shut down the Company’s operation the

maintenance of picket lines around the clock is necessary

for an effective strike. Picket lines will keep some of the

weaker members from becoming strikebreakers. Picket

lines will keep members of other Unions, such as delivery

men and some construction trades, from going to work.

Most important, manning of picket lines will demonstrate

to the management that you intend to support your rejec-

tion of the proposed contract and the fight to obtain a more

favorable one. I am, therefore, instructing each Local Union

to immediately establish around the clock picket lines and

to make performance of picket duty, unless excused for

good and proper reason, a condition of receiving Defense

Fund assistance.

Sincerely and fraternally,

/s/ Mortoy Baur

Morton Bahr

Vice President

MB/pb

104

(Puarntirrs’ Exureit 149]

Morton Baur, Vice Present

District 1

Communications Workers of America

85 Worth Street

New York, N. Y. 10013

Telephone: 431-5937

September 27, 1971

NEW YORK PLANT STRIKE BULLETIN #3

This report covers the period of negotiations between

9/17 and 9/24/71.

[2] While the Bargaining Committee works hard to get a

contract, there has been much activity on other fronts.

On September 20, Federal Judge Orin Judd granted the

International Union a temporary restraining order against

the Suffolk County Commissioner of Welfare requiring him

to process applications from our members. On September

24, Commissioner Kirby appeared in court totally unpre-

pared. Judge Judd gave him until September 28 to submit

his position in writing. A decision is expected shortly

thereafter.

At the request of Secretary Treasurer Glenn Watts,

AFL-CIO President Meany assigned a member of his staff,

Ray Andress, to handle all complaints about inability to

105

Plaintiffs’ Exhibit 149

get Food Stamps in some counties. As a result, US. De-

[3] partment of Agriculture investigators have visited sev-

eral trouble spots in New York and appeared to have now

worked out the problems. Anyone having trouble should

i e Union. |

i ae 24, affected Local Unions have been

advanced $1,441,000 for member assistance.

Telephone Company management is attempting to convey

that they can ride the strike out indefinitely. They have,

however, admitted to a backlog of some 300,000 installations

and predict monumental service problems when the strike

terminates. Management has enjoyed the support of. the

business community. Industry, in general, is not putting

the heat on Teleo—with some exceptions that telegraph the

seameenmenemettinne Inc., on September 24, asked

the U. S. District Court in New York City for temporary

and permanent injunctions against N. Y. Tel for ——~

to provide requested service. Arcata told the Court: ‘It

is a well-known fact that the demands for telephone service

in New York City have exceeded the expectations of N.Y.

Tel and its immediate capacity to render such service. A

prolonged strike by N.Y. Tel employees has further re-

duced its ability to furnish prompt and efficient telephone

service ”

The pressures are on. Management will do everything

possible to break your spirit. It won’t work. Morale is

high. The strike is more than 91% solid. It will be your

es

106

Plaintiffs’ Exhibit 150

solidarity that will lead to a successful conclusion of the

strike.

Sincerely and fraternally,

/8/ Morton Banr

Morton Bahr

_ Vice President

—_—_—_——

(Puarmstirrs’ Exursit 150]

Communications Workers of America, AFL-CTO

85 Worth Street

New York, New York 10013

October 14, 1971

NEW YORK STRIKE BULLETIN #5

(2] Striking members who live in Suffolk County received

a big boost when U.S. District Court Judge Orin Judd ruled

that a person could not be denied welfare assistance be-

cause he is a striker. He ordered the County to immediate]

process applications retroactively. A copy of Justice J ndd’s

order has been sent to the State Su in Syracus

be preme Court in S

where a similar case is being heard. ‘

Telephone management is trying to play it “cool”: to

107

Plaintiffs’ Exhibit 150

plea to the members to put the heat on their officers is one

of the give-aways. In addition, Western Electric has filed

a complaint with the New York State Department of Labor

asking for a denial of unemployment benefits to those In-

stallers and Sales members respecting picket lines. The

State is conducting hearings but is continuing to pay bene-

fits. Also, the Western Electric Company has filed a com-

plaint with the NLRB designed to force the Installers back

to work. Are these the actions of a Company that is not

hurting?

8 es s * e

Negotiations should move at a more rapid pace. It will

be difficult to report developments as they occur. Every

member should bear in mind that every action the manage-

ment takes is to discourage you and weaken the strike. On

the 92nd day of the strike, 91% of the employees are hold-

ing fast. This is a record that you can all be proud of.

President Beirne extends his congratulations and appreci-

ation for this true demonstration of trade Union spirit in

the fact of battling an automated giant. Just remember,

there are serious pressures building on the giant. More

than 400,000 people are waiting for telephones. Construc-

tion programs have ground to a halt.

Defense Fund assistance to Local Unions has now reached

the $1,750,000 mark. Significantly, this is more than New

York Plant members have paid into the Defense Fund since

they joined CWA.

give the impression things are normal. However, their ac-

_ tions betray their put on front. Mr. Ellinghaus’ personal

108

Plaintiffs’ Exhibit 151

The total Union is behind our efforts here in New York.

Continue to keep the faith. Support your Committee in

every way possible.

Sincerely and fraternally,

/8/ Mortow Bane

Morton Bahr

V; ;

— ice President

P.S. We have just learned that N.Y. Tel is contesting the

right of strikers to collect unemployment benefits.

The State will continue to pay all strikers. This is

further evidence of management’s state of panic.

_l

(PLanstirrs’ Exurerr 151]

COMMUNICATIONS WORKERS OF AMERICA,

AFL-CIO

85 Worth Street

New York, New York 10013

October 22, 1971

NEW YORK PLANT STRIKE BULLETIN #6

We can report that as a result of the action taken by the

Local Presidents at the October 13 meeting, when Presi-

dent Beirne’s recommendation was unanimously agreed to

the bargaining tempo has been stepped up considerably.

The Bargaining Committee met with President Beirne

and me in Washington on October 15. The Committee had

109

Plaintiffs’ Exhibit 151

done its homework cndiwes able to tell us just what, in their

judgment, it would take to get a contract. The meeting was

most fruitful.

Over the October 16th weekend, the Company agreed to

our proposal to make every effort to reach a full agree-

ment by November 1—or earlier. On October 18, the two

committees agreed to a temporary news blackout concern-

ing all aspects of bargaining.

Our Bargaining Committee has been turned loose. They

are free to use their judgment to drive for the best agree-

ment possible within the next week. President Beirne is

using all of his influence with top government, Industry

and public leaders in Washington and New York in sup-

port of the Committee’s goals. I have had meetings and

diseussions with high officials in our State.

The Business Community which heretofore has supported

the Telephone Company is now beginning to crack. The

drain on the Unemployment Compensation Fund has been

so great that the Fund is threatened with total collapse.

Under the Law, when such a condition exists, the entire

Business Community is required to replenish the Fund.

They will be hit in their pocket-books where it hurts.

The Company is also coming under fire from the New

York State and New York City Tax Commissions. I have

advised Governor Rockefeller and Mayor Lindsay that the

Company has violated the tax laws by not withholding

State and City income tax from the paychecks of out-of-

town supervisors.

As a result of my complaint to Governor Rockefeller and

agreement reached with the Building Trades by our Albany

110

Plaintiffs’ Exhibit 151

Local, some 200 supervisors from Massachusetts were pro-

hibited from working on the South Mall, the Albany com-

plex that will house the State Legislature.

Management’s “business is normal” got shot down the

other day. Western Electric announced hundreds of layoffs

from manufacturing plants. The reason? Oversupply due

to lack of demand for equipment and parts from New York

Tel. The truth is apparent to all. Substantial pressures are

on both sides. The Union wants a settlement. We believe

the climate is right for a just and equitable agreement now.

You, the member, remain the key. Your solidarity is being

recognized by the entire labor movement. With your con-

tinued support your Bargaining Committee will be able to

recommend a contract to the Local Presidents and they in

turn will be able to recommend it to you. Your Committee

deeply appreciates your expression of support.

Sincerely and fraternally,

/8/ Mortow Bane

Morton Bahr

Vice President

MB/pb

111

[Piawstirrs’ Exursit 152)

Communications Workers of America, AFL-CIO

85 Worth Street

New York, New York 10013

November 10, 1971

To All Local Presidents, District One

Fraternal Greetings:

The strike against the New York Telephone Company

enters the 18th week today. The stamina and spirit of ovr

members in New York Tel and those respecting picket

lines in Western Electric and Long Lines, is simply amaz-

ing. More than 89% of the New York Plant employees are

still on the bricks.

New York State Unemployment Compensation is a tre-

mendous assist to our members. In addition, the CWA

Defense Fund is taking care of the necessary payments for

shelter and installment payments for cars and appliances

where repossession is threatened.

Our Defense Fund, as you know, is being administered in

strick accordance with the Rules adopted by the delegates

to our Convention. These Rules do not have the kind of

flexibility that will enable us to do something “special” for

the Thanksgiving holiday. That something special is a sub-

stantial Thanksgiving dinner for the striker and his family.

I am, therefore, appealing through you to every single

member for a one shot donation of $5.00. Of course, Local

treasury donations would be most welcomed additions.

Checks should be made payable to “E. J. Mays—District

One” and sent to this office. The receipts will be prorated

among all the Local Unions. Since this is earmarked for

Thanksgiving, quick action is required.

it ¢

112

Plaintiff's’ Exhibit 153

Our members have the opportunity of demonstrating the

spirit of Thanksgiving to their brothers and sisters in need.

Sincerely and fraternally,

/8/ M. Bam

Morton Bahr

Vice President

MB/pb

ec: District One Staff

7V—__—_—_—__—-

(Puarntirrs’ Exnrerr 153]

Communications Workers of America, AFL-CIO

85 Worth Street

New York, New York 10013

November 11, 1971

NEW YORK PLANT STRIKE BULLETIN #9

Negotiations took a new twist away from the bargaining

table. Last night (Wednesday), Mayor Del Bello of Yon-

kers met with our Bargaining Committee at his request.

The Mayor expressed his deep concern as to the effect

our strike has had in each community in the State as well

as to the long term effect it will have on telephone service.

He expressed his displeasure in the public image that was

develo

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Appendix — Walker v. Hayes · 434 U.S. 959 | Frix