OFFICE OF THE INDEPENDENT HEARING OFFICER
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA

IN RE SUPERVISION PROCEEDINGS,                       No. CONSTRUCTION AND BUILDING LABORERS
 LOCAL 79, NEW YORK, NEW YORK

VOLUNTARY SUPERVISION AGREEMENT

The Laborers' International Union of North America (`LIUNA") General President and Construction and Building Laborers' Local 79 ("Local 79"), by and through its Executive Board (hereinafter, "the Parties") enter into this agreement the 20th day of July 2004, in order to resolve the issues raised herein.

Whereas, recent developments, including but not necessarily limited to, discussions with the office of the General Executive Board Attorney and representatives of the International Union, indicate the need for assistance to ensure that the Local Union is in compliance with the legitimate objectives of the International Union; including provisions of the LIUNA Ethical Practices Code and applicable federal laws.

The parties agree as follows:

1.   Pursuant to Article IX, Section 7 of the LIUNA Constitution, Local 79 consents to the appointment of a Supervisor who shall be authorized to exercise all of the powers and responsibilities set forth in that Section. The Supervisor shall be authorized to take full charge of the affairs of Local 79 during the period of supervision and to take any and all action that, in the Supervisor's judgment, is necessary to preserve or manage the subordinate body and to protect its interests consistent with this Agreement. Such authority shall include, but will not be limited to, the power (a) to appoint, terminate or replace any employees; (b) to appoint and supervise stewards;

(c) to retain lawyers, accountants, other professionals, and service providers on behalf of Local 79; and (d) to retain persons to assist him in the exercise of his responsibilities. The General President and GEB Attorney shall have complete authority to select the Supervisor and, if necessary, to replace the Supervisor during the period of supervision.

2.       During the period of supervision, one or more of the Constitutional officers of Local 79 may be removed from office at the direction of the Supervisor in his sole discretion. While in office, the officers may exercise such authority as shall be delegated to them by the Supervisor, who shall have unfettered discretion to exercise the powers granted in paragraph one, above.

3.       Deliberate violations of this Agreement by Local 79, its officers, members, or employees will constitute obstruction of the General President and GEB Attorney and may be charged as such under the Ethics and Disciplinary Procedure.

4.       The term of this Agreement shall be for a period of 18 months. The Supervisor shall make a progress report to the General President every 6 months for the purpose of expeditiously resolving the problems in the Local Union and lifting the Supervision. The General President and GEB Attorney shall have discretion to extend the term of the Supervision for a period of up to 6 months if they conclude, in their discretion, that an extension is necessary to accomplish the purposes of the Supervision. After such time, the Supervision may be extended only through the procedure set forth in the LIUNA Constitution for the establishment, maintenance and continuation of a supervision or trusteeship.

5.       The Supervision shall commence on September 1, 2004.

6.       The Supervisor or his designee shall preside over all meetings of Local 79. Such meetings shall be conducted in accordance with the LIUNA Ethical Practices Code, which guarantees that each member will have full freedom of speech and the right to participate in the democratic decisions of the Union.

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7.       Any dispute arising hereunder shall be adjudicated before the Independent Hearing Officer in accordance with the rules generally applicable to labor arbitration.

8.       Costs of the Supervision shall be borne by Local 79, to the extent that the resources of the Local Union reasonably permit.

AGREED AND APPROVED:

Terence M. O'Sullivan

GENERAL PRESIDENT

Robert D. Luskin GEB ATTORNEY

EXECUTIVE BOARD LOCAL UNION 79

Keith Loscalzo Business Manager

Mike Prohaska Recording Secretary

Kenneth Brancaccio President

J Norbury Vice President

Victor Rizzo Secretary-Treasurer

Carl Cully

Executive Board Member

Executive Board Member

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