Message-ID: <16512133.1075853132772.JavaMail.evans@thyme> Date: Tue, 23 Oct 2001 06:34:15 -0700 (PDT) From: sylvia.hu@enron.com To: felecia.acevedo@enron.com, cole.brown@enron.com, michelle.cash@enron.com, bonne.castellano@enron.com, rick.johnson@enron.com, lizzette.palmer@enron.com, gilda.parker@enron.com, kriste.sullivan@enron.com, scott.walker@enron.com, bonnie.white@enron.com Subject: FW: Oct. 23 -- BNA, Inc. Daily Labor Report Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Hu, Sylvia X-To: Acevedo, Felecia , Brown, Cole , Cash, Michelle , Castellano, Bonne , Johnson, Rick , Palmer, Lizzette , Parker, Gilda , Sullivan, Kriste , Walker, Simone Scott , White, Bonnie X-cc: X-bcc: X-Folder: \MCASH (Non-Privileged)\Cash, Michelle\Inbox X-Origin: Cash-M X-FileName: MCASH (Non-Privileged).pst User ID: enrondlr PW: bnaweb22 -----Original Message----- From: "BNA Highlights" @ENRON Sent: Monday, October 22, 2001 11:10 PM To: BNA Highlights Subject: Oct. 23 -- BNA, Inc. Daily Labor Report ______________________________ DAILY LABOR REPORT Highlights & Table of Contents October 23, 2001 ______________________________ ISSN 1522-5968 Registered Web subscribers can access the full text of these articles by using the URL link supplied. Information about becoming a subscriber or signing up for a FREE Web trial is available at http://web.bna.com or call BNA Customer Relations at 1-800-372-1033, Mon. - Fri. 8:30 am - 7:00 pm (ET). __________ HIGHLIGHTS __________ FIRING CONTRACTOR, HIRING NONUNION CREW WAS ULP, SPLIT BOARD DECIDES A company that owns and manages a building in New York City committed unfair labor practices when it abruptly ended its relationship with a contractor that supplied the building's cleaning crew and then refused to rehire those workers because of their union affiliation, the National Labor Relations Board rules in a 2-1 decision ("E.S. Sutton Realty Co., "3367 N.L.R.B. No. 33, 9/28/01 [released 10/17/01]. ). Reversing an NLRB administrative law judge, Chairman Hurtgen and Member Liebman rule that E.S. Sutton Realty Co. unlawfully refused to hire five workers after it ended its contract with Crisfield, their former employer. In addition, Sutton was a successor employer obliged to recognize and bargain with the workers' union, Local 32B-32J of the Service Employees International Union, the board rules. The majority criticizes the NLRB administrative law judge for resolving in favor of Sutton various inconsistencies in testimony by Sutton employees. But Member Walsh dissents, rebuking the majority for second-guessing the ALJ's credibility assessments. . . . Page AA-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8j8_ NINTH CIRCUIT: SUPERINTENDENTS NOT LIABLE FOR UNIONS' INADEQUATE NOTICE Public school superintendents in California who deducted agency fees from the paychecks of nonmember teachers are not liable for unions' failure to provide an adequate explanation of the basis for the fee calculation, the Ninth Circuit rules ("Foster v. Mahdesian, "9th Cir., No. 00-15028, 10/15/01). Reversing summary judgment granted to four nonmember teachers, the appeals court holds "[a]ction more serious than the routine collection of fees is required" to trigger a public employer's duty to ensure that its employees receive adequate financial disclosure. The appeals court applies its 1997 decision in "Knight v. Kenai Peninsula Borough School District", which held that a public employer's duty to ensure proper notice arises when a union takes action against a nonmember for failure to pay agency fees. The four teachers unions, locals of the California Teachers Association, did not appeal a district court ruling that the unions' financial disclosure was not adequate under the U.S. Supreme Court's 1996 decision in "Chicago Teachers Union Local 1 v. Hudson". . . . Page A-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m2m9_ ANTI-NEPOTISM POLICY BARRING HUSBAND, WIFE UPHELD BY SIXTH CIRCUIT A newly wed Tennessee woman, who was forced to leave her job because of a public utility company's policy barring the employment of married couples, loses her challenge to the constitutionality of that policy before the Sixth Circuit ("Vaughn v. Lawrenceburg Power System, "6th Cir., No. 99-00012, 10/19/01). However, the court holds that her husband, who was also fired following an altercation about the anti-nepotism policy, can proceed with a claim of retaliatory discharge under the First Amendment. "The rule of exogamy in Lawrenceburg Power System's anti-nepotism policy does not violate the fundamental right of marriage" and "advances a legitimate governmental interest," Judge Boggs writes for the appeals court, in rejecting Jennifer and Keith Vaughn's argument that the policy violated their First Amendment rights of association. But he finds that Keith Vaughn's discharge--arguably because he was speaking out against the policy--could be the basis of a constitutional claim. . . . Page A-5, Text E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p2y6_ http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_ JUDGE REFUSES TO AWARD INSURANCE BENEFITS TO WIDOW OF IMPROPER ENROLLEE The widow of a deceased employee of Oce-USA Inc. cannot recover benefits under the group life insurance plan, the U.S. District Court for the Northern District of Illinois rules, finding the employee was not eligible for coverage when he enrolled ("Ostler v. Oce-USA Inc., "N.D. Ill., No. 00 C 7753, 10/4/01). Judge Kocoras finds that recovery of life insurance benefits that would have been paid if Tim Ostler had been eligible for coverage under the plan would not be "appropriate equitable relief" under the Employee Retirement Income Security Act. The court rejects the Second Circuit's reasoning in a similar decision in "Strom v. Goldman Sachs & Co." Judge Kocoras says he disagrees with the Second Circuit's conclusion that Title VII "remedies can be imported into an ERISA context, because the rationales underlying the two statutes are simply too different." While Ostler was on short-term disability leave, Oce-USA offered a new group life insurance plan. Ostler elected to participate in the plan, and Oce-USA began deducting plan premiums from his paycheck. After Ostler's death his widow's benefit claim was denied because Ostler was not a qualified participant in that he did not fulfill the requirement that he be an employee "active at work" at the time coverage began. . . . Page A-3 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f7j9_ COURT AFFIRMS VERDICT FOR WORKER WITH BAD BACK; DENIES PUNITIVE DAMAGES An assembly line worker for a trucking parts firm who was fired after three work-related back surgeries provided sufficient evidence of disability discrimination under the Americans with Disabilities Act and unlawful retaliation for filing a workers' compensation claim to support a jury verdict in his favor, the Eighth Circuit decides ("Webner v. Titan Distrib. Inc.", 8th Cir., No. 00-2941, 10/9/01). Affirming, for the most part, a judgment for plaintiff Randall Webner, the appeals court rejects the argument by Titan Distribution Inc. that Webner does not have a disability covered by the ADA. "Viewing all the evidence ... we conclude that a reasonable jury could have determined that Webner's back injury had substantially limited his ability to work, to twist, to bend, and to stand, in addition to limiting his ability to lift," Judge Hansen writes for the appeals court. The court, however, vacates a punitive damages award. Observing that a plaintiff seeking such damages under the ADA must show that the defendant acted with "malice or reckless indifference to the plaintiff's federally protected rights," the court says Webner failed to prove Titan knew it was violating the ADA or was indifferent to breaching that law. . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w3z6g1_ ______________ TODAY'S EVENTS ______________ EMPLOYMENT: Bureau of Labor Statistics to release September figures on state and regional employment and unemployment, 10 a.m., Labor Department. ________________ ALSO IN THE NEWS ________________ LEADING INDICATORS: The index of leading economic indicators declined 0.5 percent in September, the second straight monthly drop, according to figures released by the Conference Board, a New York-based business research organization. The report adds to evidence of how weak the U.S. economy was before the terrorist attacks. . . . Page D-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k8a6_ AUTOS: Ford Motor Co. cancels a program launched in 2000 through which the company provided free personal computers and printers to its employees, following third-quarter losses of $692 million. . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4h2b2_ MANUFACTURING: Hourly employees at the Georgia-Pacific paper mill in Muskogee, Okla., decisively reject representation by the Association of Western Pulp and Paper Workers by a vote of 961-247. . . . Page A-6 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k1h5_ PENSIONS: Employers that offer both a defined benefit pension plan and a tax code Section 401(k) or other employee savings plan tend to have more generous savings plans than employers that sponsor only a savings plan, a William M. Mercer survey shows. . . . Page A-7 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4g8n2_ ____ TEXT ____ DISCRIMINATION: Decision of Sixth Circuit in "Vaughn v. Lawrenceburg Power System". . . . Page E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_ _________________ TABLE OF CONTENTS _________________ LEADING THE NEWS UNFAIR LABOR PRACTICES Corporate owner-manager of New York City building committed unfair labor practices when it abruptly ended its relationship with cleaning contractor and refused to rehire workers because of their union affiliation, NLRB rules 2-1 . . . Page AA-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8j8_ ____ NEWS ____ APPAREL New chairman of Fair Labor Association says group has conducted independent factory audits in 10 countries . . . Page A-3 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f0t7_ AUTOS Ford Motor Co. cancels program that provided employees with free personal computers and printers . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4h2b2_ DISABILITIES Assembly line worker provided sufficient evidence of disability discrimination under Americans with Disabilities Act and unlawful retaliation for filing workers' compensation claim to support favorable jury verdict, Eighth Circuit decides . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w3z6g1_ DISCRIMINATION Newly wed Tennessee woman loses constitutional challenge before Sixth Circuit to public utility company's ban on employment of married couples . . . Page A-5, Text E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p2y6_ http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_ EMPLOYEE BENEFITS Widow of deceased employee who had life insurance premiums deducted from his paycheck, but was not qualified to enroll in employer's group insurance plan, cannot recover benefits under plan, federal district court in Illinois rules . . . Page A-3 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f7j9_ EQUAL PAY ACT Newly merged college in Minnesota did not violate Equal Pay Act, although it provided more attractive benefits to employees who previously had worked at all-male college than at women's college, federal judge holds . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w2c4g4_ HEALTH CARE Economic stimulus legislation (H.R. 3090) that House is expected to consider this week is "extremely stingy" in proposed health insurance subsidies for laid-off workers, consumers group says . . . Page A-8 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p3b7_ HEALTH CARE EMPLOYEES More than 12,000 home health care workers in San Diego vote to certify United Domestic Workers of America as bargaining agent . . . Page A-9 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p3f5_ MANUFACTURING Hourly employees at Georgia-Pacific paper mill in Muskogee, Okla., decisively reject representation by Association of Western Pulp and Paper Workers . . . Page A-6 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k1h5_ PENSIONS Employers that offer both defined benefit pension plan and tax code Section 401(k) or other employee savings plan are found to have more generous plans than employers with savings plan alone . . . Page A-7 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4g8n2_ IRS proposes regulations clarifying how employees age 50 and older can, under recent tax cut legislation, make additional contributions to defined contribution retirement plans beyond established limits . . . Page A-8 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m6r8_ RAILROADS Newly elected officers of Brotherhood of Locomotive Engineers agree to conduct second vote on proposed BLE/United Transportation Union merger . . . Page A-10 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p9q8_ STEEL ITC finds surging steel imports in several product categories are seriously injuring or threatening injury to U.S. industry, spelling import relief as early as next year . . . Page A-10 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4q4k5_ TRUCKING Sen. Hatch (R-Utah) introduces bill to require criminal background checks on persons seeking licenses to transport hazardous materials . . . Page A-11 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4d0a1_ UNION DUES California public school superintendents who deducted agency fees from nonmember teachers' paychecks are not liable for unions' failure to provide adequate explanation of basis for fee calculation, Ninth Circuit rules . . . Page A-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m2m9_ WORKFORCE REDUCTIONS Merrill Lynch & Co. Inc. will offer voluntary severance package to vast majority of its employees over next few weeks . . . Page A-11 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m9r4_ SBC Communications Inc., which provides local phone service in Southwest and Midwest, will cut several thousand jobs . . . Page A-12 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8a0_ _____________ ECONOMIC NEWS _____________ LEADING INDICATORS Index of leading economic indicators declined 0.5 percent in September in second straight monthly drop, according to Conference Board . . . Page D-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k8a6_ ____ TEXT ____ DISCRIMINATION Decision of Sixth Circuit in "Vaughn v. Lawrenceburg Power System" . . . Page E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_ ______________ TABLE OF CASES ______________ Arthur v. College of St. Benedict (D. Minn.) . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w2c4g4_ E.S. Sutton Realty Co. (N.L.R.B.) . . . Page AA-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8j8_ Foster v. Mahdesian (9th Cir.) . . . Page A-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m2m9_ Ostler v. Oce-USA Inc. (N.D. Ill.) . . . Page A-3 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f7j9_ Vaughn v. Lawrenceburg Power Sys. (6th Cir.) . . . Page A-5, Text E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p2y6_ http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_ Webner v. Titan Distrib. Inc. (8th Cir.) . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w3z6g1_ __________ Daily Labor Report (ISSN 1522-5968) Highlights are published daily by The Bureau of National Affairs, Inc., 1231 25th St., NW, Washington, DC 20037. For account information and changes, contact 1-800-372-1033 (M-F, 8:30 am-7:00 pm ET) To request retransmission or to order a copy of the summarized article, contact 1-800-452-7773 or e-mail bnaplus@bna.com. For copyright guidelines, go to http://www.bna.com/corp/copyright. Copyright (c) 2001 by The Bureau of National Affairs, Inc. Washington, D.C. 20037. 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