GEB Attorney letter to Local 2 Executive Board and members and new Supervision Agreement

Robert D. Luskin GEB Attorney	Office of the GEB Attorney Laborers' International Union of North America ____________________________________________________________ 1025 Thomas Jefferson Street, N.W Suite 420 East Washington D.C. 20007-5243 Phone: (202) 625-1200 Fax: (202) 625-1230
	May 19,1999

To: Executive Board Members of Local 2

This Letter Must be Read in its Entirety to the
Members of Local 2 at the next General Membership Meeting.

The GEB Attorney has recently received numerous inquiries from members of Local 2 concerned about: (1) the decision by LIUNA's Independent Hearing Officer to expel Local 2's President and Business Manager, John A. Matassa, Jr. from the union based, in part, on his organized crime ties; (2) the Trusteeship Complaint pending against Local 2; and (3) the proposed Supervision Agreement that was rejected by Local 2's Executive Board.

Pursuant to my authority under Section 3 of LIUNA's Ethics and Disciplinary Procedure, I require that this letter be read in its entirety at the next general membership meeting to assure that Local 2' s members are provided notice of important facts relating to the pending trusteeship charges against Local 2.

Order and Memorandum Regarding
Local 2 President/Business Manager, John Matassa, Jr.

On May 12, 1999, LIUNA's Independent Hearing Officer revoked John Matassa, Jr.'s membership in LIUNA permanently barred him from holding an office in Local 2 or being employed by Local 2, the Chicago District Council or from being an officer or being employed by any LIUNA affiliated entity or fund. The order was based upon evidence introduced at a lengthy hearing showing that Matassa has maintained a pattern of continuous meetings with members of the organized crime (the "Chicago mob") over a period of years and that Matassa himself is a member of the Chicago mob. The Independent Hearing Officer also found that Matassa had permitted the Chicago mob to exercise control over the Chicago District Council.

The Independent Hearing Officer's order will take effect after a decision of LIUNA's Appellate Officer.

Executive Board Members of Local 2
May 19,1999
Page 2

The Rejection of a Proposed Supervision
Agreement by Local 2s Executive Board

        On April 26, 1999, a representative from the GEB Attorney's Office met with the Executive Board of Local 2 to inform them that we were prepared to seek a trusteeship of Local 2 for at least the following four reasons. First, Local 2 has been corrupted by the Chicago mob for years under John Matassa. Other Local 2 Executive Board members, some of whom have close ties to the Chicago mob, have done nothing about this mob corruption. Second, Local 2 members have not been given a democratic voice or vote on important issues affecting the Local while John Matassa has been President and Business Manager. Third, Local 2's Executive Board has known for over a year of this office's view that Matassa is involved in organized crime and has taken no meaningful action to protect Local 2's membership. Fourth, Local 2's Executive Board engaged in financial malpractice by 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.

        The GEB Attorney told the Executive Board that we would be willing to enter into an Agreement of Supervision under which the GEB Attorney would appoint a Supervisor to take charge of Local 2's affairs to eliminate organized crime corruption in Local 2 and to ensure that the Local 2 membership had a fair and democratic voice in the affairs of Local 2.

        Local 2's Executive Board rejected the proposed Supervision Agreement on April 26 and April 27, 1999.

The Current Trusteeship
Action Against Local 2

        Once Local 2' s Executive, Board rejected the proposed Supervision Agreement, this office brought a Trusteeship Complaint against Local 2 on April 28, 1999 which was mailed to the members of Local 2. The trusteeship action is designed to take control of Local 2 away from the current Executive Board and to rid the union of mob corruption while helping Local 2' s membership develop a democratic voice in the union.

        There will be a hearing on the trusteeship charges before LIUNA's Independent Hearing Officer and a date and location for the hearing will be decided shortly. All Local 2 members are encouraged to attend, Our understanding is that Local 2' s Executive Board has hired an attorney to fight the trusteeship charges.

The Executive Board's Responsibilities
to the Membership of Local 2.

        You should be aware that your Executive Board has certain responsibilities and that you, as Local 2 members, have certain rights that are outlined in LIUNA's Uniform Local Union Constitution ("the Constitution"). These rights and responsibilities include:

Under Article V1, Section I (a), Local 2's Executive Board has the responsibility to schedule a nomination meeting to be held not less

Executive Board Members of Local 2
May 19,1999
Page 3

than ten days nor more than twenty days prior to a regular meeting of the Local Union to be held in the month of May of the election year;

Under Article VI, Section I (a) and Article VI, Section 4 (b), Local 2' s Executive Board has the responsibility to hold nominations of delegates to the Chicago District Council in accordance with the same procedures for all other nominations of officers under the Constitution;
Under Article VII, Section 1, the General Executive Board is responsible for holding at least one regular meeting each month on such day, time and place as established by a vote of Local 2's membership. When a meeting is to be held outside of the fixed, regular time and place, the Executive Board must send notice of the meeting time and place to each member in good-standing of Local 2.
Under Article IV, Section 4(H)(3) & (4), the General Executive Board has the authority to take action on behalf of the membership of Local 2 between meetings. These actions are binding unless and until they are modified by a vote of the General Membership at a Local 2 meeting when a report of the action is made. More specifically, the rejection of the proposed Supervision Agreement by Local 2' s Executive Board is binding on the General Membership unless this action is changed by a vote of the General Membership of Local 2 when a report of the Supervision action is made to the General Membership.

The General Membership has the authority to overrule the Executive Board's decision to reject the Agreement of Supervision. The GEB Attorney's Office takes the position that a supervision or trusteeship is necessary to eliminate corruption and restore democratic practices and will continue to pursue the trusteeship action against Local 2 if the members affirm the action of the Executive Board or if they are denied a meaningful opportunity to vote on this issue.

Sincerely,

s/Robert D. Luskin
Robert D. Luskin
GEB Attorney

Executive Board Members of Local 2 May 19, 1999 Page 4

cc: Michael S. Bearse, General Counsel
Robert E. Bloch, Trustee, CDC
Terrence Healy, Regional Manager
Dwight P. Bostwick, GEB Attorney Staff
Proposed Supervision Agreement Enclosed.

OFFICE OF THE INDEPENDENT HEARING OFFICER

LABORERS' INTERNATIONAL UNION OF NORTH AMERICA

	)
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In re Supervision Proceedings	)	No.
LIUNA Local 2, Chicago, Illinois	)
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	)

SUPERVISION AGREEMENT

Local Union 2 ("Local 2"), by a vote of its General Membership, hereby agrees to resolve the matters set forth in the Trusteeship Complaint filed against Local 2 by the GEB Attorney's Office on April 28, 1999.

WHEREAS, the GEB Attorney has a pending Complaint for Trusteeship of Local 2 relating to organized crime corruption, undemocratic practices and financial malpractice by Local 2' s Executive Board; and

WHEREAS, on February 7, 199 8, LIUNA's Independent Hearing Officer Peter F. Vaira made certain findings relating to the organized crime connections of the current President and Business Manager of Local 2, John Matassa, Jr., in the context of a trusteeship hearing relating to the Chicago District Council;

WHEREAS, on or about April 26, 1999, Local 2's Executive Board rejected a proposed Supervision Agreement similar to the terms set forth herein;

WHEREAS, on May 12,1999, LIUNA's Independent Hearing Officer Peter F. Vaira ordered that the current President and Business Manager of Local 2, John Matassa, Jr., is to be expelled from LIUNA as a result, in part, of the significant evidence that Matassa has maintained a pattern of continuous meetings with recognized members of organized crime and evidence that
Matassa is a member of the Chicago mob; and

WHEREAS, affiliation with and membership in organized crime is inimical to membership in LIUNA and contrary to both the letter and spirit of LIUNA's Constitution and Ethics and Disciplinary Procedure; and

WHEREAS, the Parties agree that supervision over the affairs of Local 2 is appropriate for the following purposes among others; assuring that the influence of organized crime within Local 2 is eradicated; assuring that the union is operated in a democratic manner; assuring that the finances of Local 2 are property managed and assuring that the objectives of the International and Local Constitutions are advanced in a manner that best serves the interests of the membership of Local 2:

The General Membership of Local 2 has voted to overturn Local 2s rejection of a proposed Supervision Agreement and hereby consents and agrees as follows:

I . Pursuant to Article IX, Section 7 of the Constitution of the Laborers' International Union of North American (LIUNA), Local 2 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 2 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 and LIUNA's governing law. Such authority shall include, but shall not be limited to, the power: (a) to appoint, terminate or replace any employees, including officers in accordance with ¶ 4 of this Agreement; (b) to appoint, terminate or replace and/or supervise stewards; (d) to retain lawyers or appoint persons to assist him in the exercise of his

responsibilities. The Supervisor shall be the recognized representative of the Local Union and shall have sole authority (to be delegated as he specifically directs) over the financial affairs of the union including signature authority over checks, orders and accounts of Local 2.

2. The Supervisor shall also have authority to appoint or replace any delegate from Local 2 to the Construction & General Laborers' District Council of Chicago and Vicinity ("CDC") with himself, his designee, or any member in good standing at Local 2. Local 2 delegates to the CDC shall not have the right to vote in CDC elections during the period that Local 2 is under Supervision. The Supervisor shall also have authority to postpone, cancel, or reschedule any elections or nomination meetings.

3. The GEB Attorney shall have the complete authority to select the Supervisor and, if necessary, to replace the Supervisor during the period of supervision.

4. The Supervisor in his sole discretion, shall have the authority to remove and/or to replace any officer or delegate at any time and for any reason if he concludes that such action is consistent with the purposes and provisions of the LIUNA Constitution and the Ethics and Disciplinary Procedure. In addition, the current members of the Executive Board may exercise only such authority as shall be delegated to them by the Supervisor, who shall have discretion to exercise the powers granted in paragraph 1, above.

5. The costs of the Supervision, including the salaries or fees of the Supervisor,any deputy Supervisor, or assistants shall be borne by Local 2.

6. The GEB Attorney reserves all rights to seek to impose a trusteeship over Local 2 in accordance with the LIUNA Constitution or to initiate disciplinary actions against any member or officer of Local 2. Deliberate violations of this Agreement by Local Union 2, its

officers, members, or employees will constitute obstruction and may be grounds for a trusteeship or disciplinary action under the Ethics and Disciplinary Procedure.

7. The anticipated term of this Supervision shall be for a period of 18 months, however, following consultation with the Supervisor of Local 2, the Trustee of the CDC (if the CDC is in trusteeship at the time) and LIUNA's Regional Manager, the GEB Attorney, in his sole discretion, may limit the period of the Supervision to less than 18 months or extend the Super-vision beyond the 18 month period.

8. The Supervisor or his designee shall preside over all meetings of Local 2 unless, in his discretion, he authorizes appropriate officials of the Executive Board to conduct the proceedings.

9. The Supervision shall commence upon the vote of the General Membership adopting this Agreement. Any dispute arising hereunder shall be adjudicated before the Independent Hearing Officer in accordance with such procedures as he may direct.

Laborers for JUSTICE© 1999 All Rights reserved. Not for republication or retransmission on any other web site. Published as a service to Local 2 members and LIUNA members as a free service by Laborers for JUSTICE. Contributions to defray the costs of reform can be mailed to

Laborers for JUSTICE
Attn: Jim McGough
55 S. Northwest Highway
Palatine, Il 60067
847-202-3847 (tel)
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