144 Cong Rec H 10341, *

CONGRESSIONAL RECORD -- HOUSE

Friday, October 9, 1998

105th Congress, 2nd Session

144 Cong Rec H 10341

REFERENCE: Vol. 144, No. 141

TITLE: ON THE ACHIEVEMENTS OF THE LABORERS' REFORM EFFORTS

SPEAKER: The Speaker pro tempore Mr. Snowbarger)

TEXT:      [*H10341]   


The SPEAKER pro tempore (Mr. Snowbarger). Under the Speaker's  announced policy of January 7, 1997, the gentleman from Missouri (Mr. Clay) is recognized for 10 minutes as the designee of the minority  leader.

Mr. CLAY. Mr. Speaker, Clarence Darrow said, With all their faults, trade unions have done more for humanity than any other organization of  
men that ever existed. They have done more for decency, for honesty,  
for education, for the betterment of the race, for the developing of  
character in men than any other association of men.'' 


The labor movement has played a vital role in making this country  
what it is today. Only 65 years ago the basic right to retire was  
beyond the means of most workers. One worked until one was physically  
unable to work anymore. Workers even when they were employed could  
barely support their families on a day-to-day basis. The prospect of  
being able to save enough money to retire, or buy a home or send a  
child to college was for most workers nonexistent. The fact that this  
is no longer the case is in large part a measure of the success of the  
labor movement. 


The successes achieved by the labor movement did not come easily.  
Most worker rights were bitterly opposed by employers and their  
political allies. Moreover, labor's opponents have never been satisfied  
with merely opposing policies pursued on behalf of workers. More  
typically labor's opponents attack the very fabric of trade unionism.  
In doing so, they directly attack the well-being of working families. 


Today, Mr. Speaker, I want to talk about another attack that has been  
launched against the labor movement. In the American Spectator, in the  
Weekly Standard and on the editorial pages of the Wall Street Journal,  
charge after charge has been leveled against the Laborers'  
International Union. The reform efforts that the Laborers' have  
undertaken and the consent decree under which the union is operating  
have been assaulted. 


Mr. Speaker, these articles regularly sling stupefying charges of  
continued mob control of the union by a recognized crime family without  
providing a shred of evidence or on-the-record attribution for  
allegations made. The common feature of these articles is that they  
make absolutely no mention of the real progress that has been made to  
ensure that the Laborers' is a democratic union controlled by and  
operated for the benefit of rank-and-file members. 


Today there is an effort under way at the Laborers' Union that  
represents one of the most innovative, cost-effective programs ever  
undertaken to rid a union of mob influence. The reform effort is still  
a work in progress. It is premature to render judgment regarding its  
ultimate success. However, Mr. Speaker, the progress that has been made  
is truly impressive. To ignore, misrepresent or dismiss it is not just  
disingenuous but may deny workers and the government a model for the  
future that does a better job of promoting and protecting union  
democracy than other means that we have tried in the past. 


Corruption in the Laborers' Union was investigated for decades, with  
little to show for the effort. Finally, the U.S. Justice Department  
informed the union that it would take legal action to take control of  
the union just as it had done with the Teamsters Union. 


The union and its leaders facing this critical decision and knowing  
how serious the problem was could have chosen 
 
 [*H10342]   
 
to spend years fighting the government's suit or could be part of the  
solution. The union's executive board chose to be part of that  
solution. On February 13, 1995 the Laborers' entered into an historic  
oversight agreement with the Department of Justice to rid the union of  
mob influence. The union agreed that, with the help of independent  
investigators and prosecutors, it would clean its own house. 


Since that time, a remarkable story has been taking place. The union  
adopted a new ethics and disciplinary code and it adopted an  
independent process to enforce that code. The union has hired a team of  
former top-ranking FBI officials and Justice Department prosecutors to  
enforce the code and to discipline those who violate it. 


So far, Mr. Speaker, the reform effort within the union has, one,  
removed 189 union officials; has filed charges against 132 union  
officials and staff; has caused 47 union officials to resign after  
bringing or threatening to bring charges; has referred 25 criminal  
matters to Federal or local law enforcement authorities; and has  
imposed 19 trusteeships over local unions and district councils in  
which all local officials and officers were removed. 


Mr. Speaker, trusteeships have been imposed on the Chicago District  
Council and on Local 210 in Buffalo, New York, both regarded as  
longtime bastions of organized crime. 


Members of the Mason Tenders District Council of Greater New York  
recently conducted their first officers' election since the imposition  
of a trusteeship in 1994. While under trusteeship, the union recovered  
$12 million of the $15 million in assets lost by wrongdoing by former  
officers. 


In 1996, the union conducted its first direct rank-and-file election  
for general president and will soon implement the first ever direct  
membership vote for all union offices. 


Mr. Speaker, the union is embarking upon hiring hall reforms and is  
educating its Members so that they are able to freely and fully  
participate in the union affairs and governance. The union has also  
implemented a toll-free 800 telephone number directly to the internal,  
independent Inspector General's office so that members may more easily  
raise complaints or express their concerns. 


No one has been immune from the reform process. Charges have even  
been brought against the union's general president. An independent  
inquiry is now being made to determine whether to remove that  
individual from office or not. 


Mr. Speaker, all of this is being accomplished by the union itself.  
It is all being paid for with union money and not government funds. The  
reform process is promoting private initiative and accountability. The  
union is under the democratic control of its members, not the mob and  
not the government. 


In 3 1/2 years, the Laborers' internal reform effort has done more  
to clean up the union than decades of efforts by law enforcement  
agencies. And the reform effort has accomplished this in a manner that  
has made the union a more effective advocate on behalf of its members  
rather than a weaker one. 


The reform efforts are not yet complete, but much has been  
accomplished. Nevertheless the accomplishments of the Laborers'  
internal reform effort are truly significant. They deserve the  
attention of the public, and they deserve fair and accurate reporting  
by the media. 


Mr. Speaker, I include for the Record a document entitled "Report to  
Members of Congress, Laborers' International Union of North America's  
Ethics and Disciplinary Program: 41 Months of Progress.'' 
 
Report to Members of Congress--LIUNA's Ethics and Disciplinary Program:  
 
 
                             41 Months of Progress 
 
 
 
                               a bold experiment 
 
       One of the most under reported stories in today's labor  
     movement concerns a union, with a proud past that was sadly  
     tarnished by corruption, that has taken matters into its own  
     hands, ridding itself of wrongdoers and eradicating criminal  
     influences. 
 
       Uner an historic Oversight Agreement signed on February 13,  
     1995, the Laborers' International Union of North America  
     (LIUNA) continues to work with the U.S. Department of Justice  
     to initiate widespread internal reforms. Over the past three  
     years, our union has implemented model ethics, disciplinary  
     and democracy programs that stand second to none in  
     safeguarding the rights of every union member. We have  
     succeeded in moving our union into a new era. 
 
       The Laborers' International also successfully conducted the  
     first rank-and-file election for General President in  
     December 1996, under the supervision of an Independent  
     Election Officer. In our next election, we will implement  
     direct membership votes for all union officers. 
 
       LIUNA's reform programs have been cited as a model for  
     future reform efforts, and in a March 24, 1998 letter to the  
     National Legal and Policy Center, the Department of Justice  
     stated that it believed that our internal reform process has  
     "resulted in considerable success.'' 
 
       This is not to imply that the Justice Department believes  
     our programs are perfect, nor do we. But as we learn, we  
     continue to progress. Indeed, our success thus far--and the  
     fact that work remains to be done--is why we and the Justice  
     Department extended our unique Oversight Agreement for  
     another year. Under this agreement, the Justice Department  
     retains the unilateral power to take control of our union if  
     it feels we are making insufficient progress in rooting out  
     corruption and safeguarding our members' rights. We view the  
     extension of the Oversight Agreement as a clear vote of  
     confidence in our reform efforts. 
 
 
 
                            the political atmosphere 
 
       The innovative nature of the Laborers' self-reform  
     movement--and the facts about its genesis and achievements-- 
     should merit both bipartisan and nonpartisan support.  
     Unfortunately, this has not been the case. 
 
       Over the course of the Agreement, our reform programs and  
     our union have been the subject of relentless attacks by  
     anti-labor opponents and right-wing extremists. Those who  
     have the most to fear and the most to lose from reform have  
     tried to sabotage this process and undo LIUNA's progress. And  
     some in Congress and in the media have given these people an  
     uncritical hearing and platform. 
 
       Media outlets, such as The Wall Street Journal and The  
     American Spectator, continue to publish articles, editorials  
     and guest columns that repeat--like a broken record-- 
     misconceptions, falsehoods and unsupported allegations about  
     our union, our officers and our reform efforts. They do not,  
     however, have the journalistic integrity to publish the  
     evidence of our progress or to take an unbiased look at how  
     our union is changing for the better. 
 
 
 
                                 a new approach 
 
       LIUNA's Cooperative Agreement is a model for the kind of  
     reform the Justice Department and FBI have been working  
     toward in private industry--requiring private organizations  
     to assume principal responsibility for policing themselves.  
     Among its many benefits, the Agreement has: Saved taxpayer  
     dollars by having LIUNA--not the government--responsible for  
     cleaning its own house; promoted private initiative and  
     accountability, rather than relying on the government to fix  
     what is, in essence, an internal matter; and kept LIUNA under  
     the democratic control of its members, averting a government  
     takeover of a private organization. 
 
       LIUNA's General Executive Board (GEB) is firmly committed  
     to the success of the Ethics and Disciplinary Program. Our  
     experience has only added to our commitment for this unique  
     experiment in self-policing, and it has deepened our resolve  
     to permanently change this union for the better. LIUNA is  
     unequivocally committed to advancing internal reforms and to  
     making this the most democratic union for our members. 
 
       Another priority continues to be implementation of hiring  
     hall reforms. LIUNA's General Executive Board adopted a new  
     set of job referral rules and hiring hall practices to  
     protect all LIUNA members' rights and eliminate any  
     possibility of violations. In 1996, we also established a Job  
     Referral Committee which works with the independent GEB  
     Attorney on an ongoing basis to deal with complex local  
     issues and to improve policies governing these matters. LIUNA  
     officials and members are receiving the necessary  
     education and instruction to put these reforms in place. 
 
       A third priority is educating members on our election  
     reform rules so that all members can be confident of their  
     right to participate fully in fair and open elections, and in  
     union affairs and governance. 
 
 
 
                        Highlights of the Reform Process 
 
       The Laborers' Ethics and Disciplinary Code and internal  
     reform program work because they are now an established part  
     of our union's Constitution and because they are enforced by  
     a team of fully independent officers. These officers do no  
     answer to the General President, General Executive Board or  
     the General Counsel of the Laborers' Union; they answer only  
     to our members and the U.S. Department of Justice. 
 
       When the Inspector General's investigators discover conduct  
     that might constitute grounds for discipline, they bring the  
     matter to the attention of the GEB Attorney, and he commences  
     prosecution, if warranted. Such cases have succeeded in  
     eliminating some of the most significant sources of  
     corruption within the union. 
 
       Officials at all levels of LIUNA have resigned their  
     positions when confronted with disciplinary charges or the  
     prospect of being required to give sworn testimony in  
     connection with investigations. The resignations eliminate  
     sources of corruption swiftly and effectively, and allow the  
     Inspector General and GEB Attorney to focus efforts on other  
     high priorities. The ease of these victories in no way  
     detracts from their value. 
 
 [*H10343]   
 
 
       The following actions, compiled by the Inspector General's  
     Office as of August 1998, are testament to the ongoing  
     success of LIUNA's innovative reform process: 
 
       Removed 189 individuals for criminal or ethical violations,  
     or ties to criminal elements, through convictions,  
     terminations or suspensions. 
 
       Filed charges and complaints against 132 individuals for  
     alleged wrongdoing. Some focus on individual members or  
     officers. Others are aimed at broader patterns of misconduct  
     committed by LIUNA District Councils or Local Unions. 
 
       Prompted the resignations of 47 individuals who were  
     targets of investigations. 
 
       Suspended eight individuals pending resolution of criminal  
     charges. 
 
       Referred 25 criminal matters to federal or local law  
     enforcement authorities. 
 
       In addition to these activities, we should note that the  
     Laborers' have succeeded in using trusteeships and  
     suspensions to rid our most problem district councils and  
     local unions of all vestiges of corruption. 
 
       For example, the Mason Tenders District Council of Greater  
     New York this year concluded its first officers' election  
     since a trusteeship was imposed in 1994. The trusteeship has  
     recovered $12 million of the $15 million in assets lost by  
     the membership because of malfeasance. 
 
       The Mason Tenders Investigations Officer, Michael Chertoff,  
     who also served as Majority Counsel to the Senate Whitewater  
     Committee, has expressed his confidence in our aggressive  
     efforts to prevent organized crime from ever regaining  
     influence there. 
 
       Our Independent Officers have also imposed trusteeships  
     over Local 210 in Buffalo and the Chicago District Council,  
     which had historically been controlled by organized crime.  
     Law enforcement authorities pursued both locals for many  
     years with minimal success, but our internal reform process  
     got results expeditiously and fairly. 
 
       In all, 19 trusteeships have been imposed, 17 in the U.S.  
     and two in Canada, where all officers were removed and 10  
     supervisions have been established where the majority of  
     officers were removed. 
 
 
 
                          liuna's anti-corruption team 
 
       Our Inspector General, W. Douglas Gow, is the former  
     Associate Deputy Director for Investigations at the FBI. He  
     is charged with investigating and resolving disciplinary  
     matters arising under LIUNA's Constitution or Ethical  
     Practices Code, and supervising the union's compliance  
     program that is designed to prevent and detect wrongdoing. He  
     has assembled a first-class team of high-ranking, former FBI  
     agents and law enforcement officers. This team is charged  
     with pursuing every credible lead of possible wrongdoing. 
 
       We have taken extra steps to make it easier for union  
     members to raise their complaints, questions or concerns  
     through a toll-free 800 telephone number that goes directly  
     into the Inspector General's Office. All calls are treated in  
     the strictest of confidence. 
 
       Our General Executive Board Attorney, Robert Luskin, is the  
     former Special Counsel for the Justice Department's Organized  
     Crime and Racketeering Section. He serves, in effect, as the  
     union's chief disciplinary official. 
 
       All internal hearings are held before the Independent  
     Hearing Officer, Peter F. Vaira, a former director of the  
     President's Commission on Organized Crime and a former U.S.  
     Attorney for the Eastern District of Pennsylvania. W. Neil  
     Eggleston, a former Chief Appellate Attorney for the U.S.  
     Attorney's Office for the Southern District of New York,  
     serves as the Independent Appeals Officer. 
 
 
 
                                  a final note 
 
       As we stated earlier, our reform process is not perfect,  
     but it has made more progress in the last 41 months in  
     ferreting out corruption and identifying wrongdoings than any  
     other union. We are proud of what we have accomplished, and  
     we will continue to work hard to make our union the  
     strongest, cleanest and most democratic for our members.