A year after the federal government opened an
investigation into its finances, Laborers Local 500 will surrender
control of its operations to its parent union, a Local 500 attorney
said yesterday.
"This was not imposed on the executive board," said Joseph Allotta, an attorney for Local 500. "It's my understanding that this would start soon."
Local 500 officers gave conflicting responses about the supervision, which occurs for "corruption," "financial malpractice," or the need to "restore democratic procedures," the Laborers International constitution states.Reached at a charity golf event yesterday, Steven Thomas, the business manager and top elected official of Local 500, denied any knowledge of any changes in his union's relationship with Laborers International.
Toledo City Councilman Phil Copeland, the union's secretary-treasurer, said he could not comment on the matter until next week.A spokesman for Laborers International said late yesterday that he was looking into the matter.
The Blade reported on March 12 that the U.S. Department of Labor initiated an investigation of Local 500 last August. The investigation's existence remained hidden from the union's general membership for seven months.Investigators seized five years of financial records and examined spending by Mr. Thomas and Mr. Copeland.
The Labor Department does not comment about ongoing investigations, a policy its officials maintained yesterday.Shortly after the federal investigation began, Local 500 forbade anyone from using the union credit card for "personal entertainment" expenses, which Mr. Thomas has said could include rafting trips and strip-club excursions.
The union claimed the policy change was unrelated to the investigation.Local 500 officers also have stated that all misspent funds were repaid. A 2005 income statement Local 500 submitted to the federal government indicates that it received $30,194 in "other receipts." Neither the source nor the reason for those receipts is contained in the filing.
Local 500 had an operating loss of $98,117 on $1.68 million in revenue last year. And since 2000, its membership has dropped 18 percent, dwindling to 1,027 by the end of 2005.Mr. Copeland has declared he did nothing wrong as Local 500's lead financial officer, but he later said that public attention surrounding the investigation contributed to his defeat in the Democratic primary for Lucas County commissioner in May.
Under the terms of a Laborers International supervision, Local 500 officers retain their positions. However, the supervisor can later dismiss them."The executive board will cooperate with the supervision in the hope they keep their jobs," said James McGough, director of Laborers for Justice, a Chicago-based union watchdog. "They get a slap on the wrist."
According to the Laborers International constitution, the union must convene a hearing about the appointment of a trustee or supervisor, Mr. McGough said.The constitution further states that the members "shall be advised of the reasons" for the appointment of a supervisor "in all cases."
At a March 30 Local 500 meeting, Mr. Thomas refused to share details about the federal investigation, according to union members who attended.Mr. Thomas has declined to confirm the accuracy of that account.
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