OFFICE OF THE INDEPENDENT HEARING OFFICER

LABORERS’ INTERNATIONAL UNION OF NORTH AMERICA

 

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In re Supervision Proceedings

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No.

LIUNA Local 2, Chicago, Illinois

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SUPERVISION AGREEMENT

 

The General Executive Board (“GEB”) Attorney of the Laborers’ International Union of North American (“LIUNA”) and Local Union 2 (“Local 2"), by and through its Executive Board (hereinafter, the Parties), enter into this agreement this         day of April, 1999, in order to resolve the matters under investigation by the Inspector General (“IG”) and GEB Attorney’s Office with respect to the internal affairs of Local 2.

WHEREAS, the Inspector General and the GEB Attorney have ongoing investigations into organized crime influence, undemocratic practices and financial malpractice in Local 2; and

WHEREAS, on February 7, 1998, LIUNA’s Independent Hearing Officer Peter F. Vaira made certain findings about 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; 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 properly managed and assuming 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 Parties agree as follows:

1.                  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 shall not exercise his authority to remove and/or replace any officer for an initial thirty (30) day period except that the Supervisor may remove or replace any officer within this initial thirty (30) day period if he finds specific evidence of financial malpractice or uncovers any violation of law within this period.  After this initial thirty (30) day period, 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.                            <![endif]>The permanent resignation of John Matassa, Jr. from Local 2 and from LIUNA is

 expressly contemplated by this agreement.  His resignation will be tendered upon the execution of this supervision agreement and will be effective after thirty (30) days in accordance with the terms of a separate agreement between John Matassa, Jr. and the GEB Attorney’s office.  All officers of Local 2 agree that after the effective date of John Matassa Jr.’s resignation John Matassa, Jr. will not have any direct or indirect influence over Local 2.

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


7.                  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.

8.                  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 Supervision beyond the 18 month period.

9.                  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.

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

 

EXECUTIVE BOARD

LOCAL UNION 2

 

 

 

                                                                                                                                                                       

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GEB Attorney’s Office                                                                                              

 

 

                                                                                                   

Robert D. Luskin                                                                                        

 

Laborers for JUSTICE ©1999 Web published as a free service to LIUNA members by members of Laborers for JUSTICE to educate and inform the members of local 2, to raise money to help pay for LMRDA lawsuits against corrupt union officials and to publish more information to assist LIUNA members in the effective exercise of the ir right of self governance. Not for republication on other web sites without the express written permission of Laborers for JUSTICE. Unauthorized publication on other web sites will sabotage our reform efforts, constitute copyright infringement, harm our fund raising efforts, and demonstrate the publisher to be a thief and unethical person unworthy of being called a "real laborer".