To the Members of Local 2:

I am writing to advise you of our plans to bring the Trusteeship of Local 2 to an orderly close and to arrange for the transition to democratic self-governance. As you know, the Trusteeship was imposed approximately 18 months ago by the LIUNA Independent Hearing Officer in order to correct financial malpractice and to rid Local 2 of the wrongful influence of organized crime. As you also know, the Trusteeship proceedings were followed by lengthy disciplinary hearings against the former Business Manager of Local 2, John Matassa, who was found by the Independent Hearing Officer to be a member of organized crime and to have permitted organized crime to influence the union's affairs.

The combined efforts of the Trustees of Local 2, David Schippers, Joe Romano, and Randy Dalton, have worked to restore the financial well-being of the Local, to increase its membership, and to correct past misconduct. A very few problems remain to be addressed before the Trusteeship is concluded. Although these issues are not necessarily apparent to the Members of Local 2 on a day-to-day basis, they are of the utmost important to the Local's operation, now and in the future. In the first place, the former officers of Local 2 left its financial records in appalling condition. Each of the Trustees has worked to remedy that problem. But the only way to assure both that the Local has accurate records as well as a system that will permit-full and complete records to be maintained in the future is to reconstruct the Local's general ledger by painstakingly reviewing an enormous number of individual transactions. Without this effort, it is impossible, for example, to assure that the Local's membership records are accurate or to confirm that Members' dues payments have been properly credited. Indeed, without undertaking this task, it will be difficult to determine accurately which members of Local 2 will be eligible to run for office.

Second, there are major challenges to Local 2's jurisdiction. Some of these challenges have come from others LIUNA Locals within the District Council, even though Local 2 has exclusive jurisdiction over tunnel and sewer work throughout the geographic area covered by the District Council. Additional challenges come from other unions, some of which, we have reason to believe, are supported by elements associated with organized crime. If they cannot control Local 2, it appears that they will try to control Local 2's work. We are taking firm steps to assure that this doesn't happen.

The Members of Local 2 
November 8, 2000 
Page 2

We cannot, consistent with our fiduciary responsibilities, terminate the Trusteeship until these problems are solved. But the Trustee, with assistance from the International Union, expects to resolve them in the very short term. We plan., therefore, to begin the election process in January 2001, with a view towards holding elections (and terminating the Trusteeship) in March 2001. The Trusteeship will thus have been in place a total of about 22 months, which is well within the range of what we have come to expect under the reform process, particularly for a Local union emerging from domination by organized crime. I intend to appoint an election officer with no previous association with Local 2 to oversee the election and to make sure that it is free, fair, open and democratic.

Unfortunately, this very good news has been clouded by a fog of rumor and misinformation, some of it perhaps well-intentioned, the rest malicious, intended to impugn the motives of those who have made the greatest effort to return Local 2 to its members. Rather than credit the enormous progress that has been made or focus on the future, some individuals have devoted their energies to spreading baseless stories of a conspiracy to thwart democracy in Local 2. Because nothing could be further from the truth, let me make the following points very clear:

· There is no plan to "colonize" Local 2 by bringing in "outsiders" who will be granted variances to permit them to run for office. NO variances will be granted to the eligibility requirements for local union office. Neither the existing Trustee, any of his predecessors, nor any person whom they have brought in to Local 2 to assist in the reform intends or will be permitted to run for office (unless they are otherwise eligible as Members of Local 2).

· There is no plan to merge Local 2 or to modify its jurisdiction. Any suggestion that the District Council intends or would be permitted to control Local 2 by merger or a change in jurisdiction is wholly false.

· The GEB Attorney has not made any promises of employment or office to any individual. There is not nor will there be an "official" slate of candidates for office. No candidate, group of candidates, or representatives of any ethnic group will get preferred treatment.