Office Of the GEB Attorney
	Laborers' International Union of North America
Robert D. Luskin GEB Attorney	1025 Thomas Jefferson Street, N.W. Suite 420 East
	Washington D.C. 20007-5243
	Phone: (202) 625-1200
	Fax: (202) 625-1230

May 24,1999

 

To the Officers and Members of LIUNA Local 2:

Pursuant to the LIUNA Ethics and Disciplinary Procedure, Section 3, the GEB Attorney is delegated all of the powers of the LIUNA General President" to impose and review the imposition of trusteeships, over any district council, local, or other entity within the Union. Article IX Section 7 of the International Constitution provides that the General President may appoint a trustee to take charge and control over the affairs of a local union when such action is necessary "for the purpose of correcting corruption or financial malpractice, assuring the performance of collective bargaining agreements or other duties of a bargaining representative restoring democratic procedures, otherwise carrying out the legitimate objects of such subordinate body or the International  Union, or to protect the organization as an institution. "Under this provision of LIUNA's Constitution, before a trustee may be appointed, a hearing must be conducted for the purpose of determining whether such a trustee shall be appointed provided, however "that where in the judgment of the General President an emergency situation exists within the subordinate body, a temporary trustee or supervisor may be appointed prior to such hearing. .

By this letter, I advise you that I have concluded than an emergency situation exists in Local 2 requiring me to immediately appoint a temporary trustee to take charge and control over the affairs of the Local Union 2 to eradicate corruption, restore democratic practices, correct financial malpractice and to carry out the legitimate objectives of the union. This letter will serve as notice to Local 2's membership, and a supplement to the Complaint for Trusteeship already provided, of the basis for this emergency trusteeship.

Basis for Emergency Trusteeship

Prior Trusteeship Complaint and Recent Order
and Memorandum Regarding Local 2 President/Business Manager

         A Complaint for Trusteeship has already been filed against Local 2. In part, this Complaint alleges that:

Local Union 2, its Officers
and Members
May 21, 1999
Page 2

• Local 2 has been corrupted by organized crime for over a decade under its current President and Business Manager, John A. Matassa, Jr. ("Matassa!');

 

• Local 2 members have not been given a democratic voice or a democratic vote on important issues affecting Local 2 while Matassa has been President and Business Manager,

 

• Local 2's Executive Board has known for over a year of the International's view that Matassa. is involved in organized crime but has taken no meaningful action to protect the membership of Local 2;

 

• Local 2's Executive Board has engaged in financial malpractice by, among other things, paying Matassa's own defense lawyers approximately $ 70,000 of Local 2's money for legal work including a one-sided investigation of whether their client, Matassa, had ties to the Chicago mob.

On May 12, 1999, LIUNA's Independent Hearing Officer permanently revoked Matassa's membership in LIUNA- This order was based upon evidence introduced at a lengthy hearing showing that Matassa has maintained a pattern of continuous meetings with members of the Chicago mob and that Matassa himself is a member of the Chicago mob- The Independent' Hearing Officer also found that Matassa's membership in the Chicago mob had a direct and indirect effect on the affairs of the Chicago District Council and Local 2. The order revoking Matassa's membership in LIUNA does not go into effect until a decision on his appeal before LIUNA's Appellate Officer and, therefore, Matassa. and the current Executive Board of Local 2 continue to control the affairs of Local 2.

Additional Developments Requiring Emergency Intervention.

In addition to the allegations that have already been made in the current Trusteeship Complaint, and the finding in the Independent Hearing Officer's recent order showing Matassa's close relationship to the Chicago mob, the following additional allegations are made in support of the decision to take immediate, emergency action over the affairs of Local 2.

Continued Collapse of Democratic Practices at Local 2.

At the last few general membership meetings, Local 2 members have tried to meaningfully address a number of issues of importance to them such as- the Executive Board's rejection of a proposed Supervision Agreement, the decision to hire biased election judges; and the nature of the Executive Board's expenditures. Local 2's. general membership has not been provided the opportunity to meaningfully address or to vote on these issues in violation of Article IV, Sections 4A(l), 4E(l), 4H(4), 4H(9), numerous other provisions of the Uniform

Local Union 2, its Officers
and Members
May 21, 1999
Page 3

Local Union Constitution ("ULUC") and Part One, Section I of the Ethical Practices Code.In addition, Local 2's membership has not been provided an opportunity to participate in general membership meetings in accordance with the requirements of Article VII, Section I of th.ULUC. Local 2s general membership has also not held nominations of District Council delegates in accordance with Article VI, Section 4(b) and Article IV, Section l(a) of the ULUC.

Continued Failure of Local 2's Officers to carry out their Duties to the Membership.

Local 2's Executive Board has failed to assure that the "affairs and business of the Local Union are being properly conducted in accordance with the Constitution" as required by Article IV, Section 4H(9) as evidenced by the following facts among others:

• certain members of Local 2's Executive Board have recently changed the locks on its union offices and have refused to provide certain members of the Executive Board with keys;

 

• Local 2's Executive Board has recently failed to hold or conduct general membership meetings in accordance with the constitution or to provide required notice for such meetings; and

 

• Local 2s Executive Board has failed to disclose its decision to  refuse to agree to a Supervision and has failed to provide the general membership with the opportunity to ratify, modify or reject this decision.
  
  

Based upon the current state of affairs at Local 2 as it has recently been presented to me, I have determined that it is necessary for me to take immediate emergency action in order to. protect Local 2's membership. As of the date of this letter, I am imposing an emergency trusteeship over Local 2 pursuant to Article IX Section 7. The Executive Board members of Local 2 must immediately arrange to return all Local 2's property by contacting this office or the Inspector General's Office at (847) 397-9405.

I will appoint, a temporary trustee pending a hearing before the Independent Hearing Officer that will more fully address the reasons for this action set forth above and in the Complaint for Trusteeship against Local 2. The hearing will take place within 30 days of today's date at a time and place to be set by the Independent Hearing Officer. Local 2, or any officer or member of Local 2, may be represented in person at this hearing to present witnesses, or may submit any document, paper or brief to the Independent Hearing Officer for his consideration

Local Union 2, its Officers
and Members
May 21, 1999
Page 4

After the hearing has been concluded, the Independent Hearing Officer will rule on whether a trusteeship is warranted and advise you of his ruling.

The Executive Board and all members of Local 2 are put on notice of their duty pursuant to Article IX Section 7 of the International Union Constitution of their duty to fully cooperate with the Trustee appointed by this office. Failure to so cooperate may result in disciplinary action,

Sincerely,

 

s/Robert D. Luskin (by DRB)
Robert D. Luskin

cc:           Arthur A. Coia, General President

Peter F, Vaira, Independent Hearing Officer

Terrence Healy, Regional Manager

W. Douglas Gow, Inspector General

Robert Bloch, Trustee of Chicago District Council

 

Laborers for JUSTICE© 1999 All Rights reserved. Provided as a free service to LIUNA members and the public by Laborers for JUSTICE who firmly believe in a union member's right of self governance.

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