Index

 

 

159

 

54CGDISH   Hearing

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

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   x

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UNITED STATES OF AMERICA,

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v.   90 CV 5722   (CSH)

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DISTRICT COUNCIL OF NEW YORK

CITY AND VICINITY OF THE

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UNITED BROTHERHOOD OF

CARPENTERS AND JOINERS OF

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AMERICA, et al.,

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Defendants.

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   x

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New York, N.Y.

April 12,   2005

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10:00   a.m.

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Before:

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HON. CHARLES S. HAIGHT,

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District Judge

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APPEARANCES

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DAVID N. KELLEY

United States Attorney for the

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Southern District of New York

EDWARD SCARVALONE

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LISA ZORNBERG

BENJAMIN TORRANCE

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Assistant United States Attorneys

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O'DWYER & BERNSTEIN, LLP

Attorneys for Defendants

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GARY ROTHMAN

GARY SILVERMAN

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STEVEN KASARDA

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   25

 

 

SOUTHERN DISTRICT REPORTERS, P.C.

(212)   805-0300


 

281

54CJDIS4   Thomassen - direct

   1   BY MR. ROTHMAN:

   2   Q. Mr. Thomassen, the government in this motion has drawn a

   3   great deal of the attention to the requests of the District

   4   Council, and have indicated, and I have asked Mr. Mack a great

   5   deal of questions concerning whether the request system

   6   contributes to wrongdoing or corruption on the job.

   7   Is there a policy that the District Council follows

   8   with respect to the request system?

   9   A. Yes, there is.

   10   THE WITNESS: Your Honor, could I be allowed to give

   11   some background on this request system?

   12   THE COURT: Certainly, if you will do it slowly and

   13   dare I say judiciously in your answer.

   14   THE WITNESS: I will try. New York City is still

   15   today the most unionized city in the country. We are very

   16   proud of that, all of the collective unions that work in New

   17   York City.

   18   We think we're very diligent in trying to keep it that

   19   way. And because of that, and the unions being as strong as

   20   they are in New York City over the years, years ago many unions

   21   had a lot of work rules that at best I could say were

   22   restrictive to the contractor. But because of the strengths of

23   the union, we just were able to overpower them in negotiations

   24   and we kept a lot of those work rules in place.

25   There are many of them. One of them, which we talk

SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300


 

282

54CJDIS4   Thomassen - direct

1   about a lot today, and it is mentioned in the consent decree

2   and mentioned in the government, is the 50-50 ruling. The

3   50-50 ruling states that half of the members on a particular

4   job site, if the contractor wants to hire 10 carpenters,

5   according to that rule, he can hire five of any carpenters he

6   would like, as long as they're union carpenters, of course, and

7   the other 50, which is the other 50, would come from the union

8   hall.

9   He may never have known them before. He doesn't know

10   who they are. He doesn't know what they can do, but that is

11   the rules. You have to take half of whatever you want to hire,

12   half of them come from the union hall.

13   That was a good thing for the union over the years

14   because as we all know, union carpenters get older. If we all

15   had to race down the block, and we all started at a starting

16   line, we're not all going to finish at the same time. Someone

17   is going to win and somebody will lose. Contractors, of

18   course, always want the 21-year-old carpenter with 40 years of

19   experience. It doesn't always work that way.

20   So the 50-50 ruling was good for us because as our

21   carpenters got older, maybe they weren't as much in demand as

22   they got older. There is nothing wrong with their brain. They

23   just didn't work fast. That was our way of letting those

24   members make a living also. That was a good thing, in my eyes,

25   because I am doing this 35 years, and my job is to service the

SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300


 

283

54CJDIS4   Thomassen - direct

   1   membership. That was a good thing.

   2   We have members who aren't as proficient as other

   3   members. Everybody can't be perfect. Some carpenters are

   4   better at what they do and other carpenters aren't quite as

   5   good, and we always had the option that the carpenter can go

   6   back to school, we have the best technical college in the

   7   country. That is not an easy thing to ask somebody to do,

   8   either. You work all day in the field and ask the carpenter to

   9   go to school at night on his own time and try to brush up on a

   10   particular course or a particular skill is not an easy thing to

   11   ask anybody to do

   12   So many of them are reluctant to do it unless they

   13   think they can make themselves more employable by doing it. So

   14   this was a rule that the contractors have fought us over in

   15   every collective bargaining agreement going back as long as I

   16   can remember.

   17   THE COURT: What are the contractors fighting for?

   18   THE WITNESS: The contractors, your Honor, say that

   19   they agree to be a union contractor. I am going to pay all the

   20   wages and benefits I am supposed to pay. All I ask you is let

   21   me hire who I know can do the job.

   22   THE COURT: I see.

   23   THE WITNESS: So we have always fought that. When we

   24   came under supervision in 1996, our international came in, and

   25   as I have said earlier, we went under a restructuring.

SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300


 

284

54CJDIS4   Thomassen - direct

   1   Part of that restructuring and the philosophy, I have

   2   to say, of the international that governs us is that carpenters

   3   across the country should have full mobility. They should be

   4   able to go and work anywhere they want and no union or district

   5   council should be allowed to stop any carpenter from making a

   6   living in that particular area.

   7   And they started to do away with all the 50-50 rulings

   8   which were in a lot of places and contracts across the country.

   9   THE COURT: They started doing away with it? Who is

   10   "they"?

   11   THE WITNESS: The international they were under

   12   supervision from. It is a very, very political issue in the

   13   City of New York. We are a very large council, so like

14   anything else, you try and wean people into something, and the

   15   international came up with the requesting system, and that was

   16   a way of getting the contractors a little more latitude in

   17   picking who they would have working for them.

18   So the requesting system comes into place. Judge

   19   Conboy, who was overseeing us at the time for the court as far

20   as the consent decree saw it and said it was okay.

21   There was much discussion at the time by the members

22   of the District Council and our international who were putting

23   this in place, and there were a lot of unhappy carpenters, but

24   it prevailed. Now we come into a time in the last, I'll say,

25   five or six years where New York City does not enjoy the same

SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300


 

285

54CJDIS4   Thomassen - direct

   1   union background or the same union atmosphere as it has in the

   2   past, and I think that this is something that comes from lack

   3   of knowledge on the part of the government and on the part of

   4   Walter Mack.

   5   In the 50-50, in just looking at it, it looks fair, it

   6   looks democratic, but the reality of it is -- and I will put it

   7   right on the table -- the reality of it is, if New York City is

   8   going to stay a union town, we have to do everything we can to

   9   help our union contractors stay in business. If we don't help

   10   those union contractors stay in business, we can negotiate the

   11   best contracts in the world, but if there is no one around to

   12   employ them, we'll be out of work and the union is going to go

13   down the tubes in New York City.

14   There is a movement on right now by all our

   15   contractors and the associations in connection with the

   16   different trades, the building trades, to get rid of all these

   17   restrictive work rules because we all acknowledge the fact that

   18   if we don't work together, New York is not going to be the

   19   union town that it used to be.

20   And so, therefore, in reference to the requesting

21   system, as far as the District Council of Carpenters are

22   concerned, and anyone that knows what is going on in the field

23   in New York City -- I mean, walk down the block anywhere in New

24   York City and you'll find a three or four or 15 story building

25   being built nonunion, which never, ever happened before.

SOUTHERN DISTRICT REPORTERS, P.C.
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286

54CJDIS4   Thomassen - direct

   1   So we have a tiger on our hands, which is the nonunion

   2   entity that is making a move in New York City, and we realize

   3   that if we don't let our companies hire the carpenters who can

   4   produce the work that they bid -- they bid a job based on an

   5   amount of progress they're going to make every day on that job.

   6   If they don't make that, at the end of the job and they lose

   7   money, they can go out of business. Part of the request system

   8   allows our contractors the latitude to hire carpenters who they

   9   think can perform the job.

   10   Now, just so it is clear to everyone in the courtroom,

   11   because it hasn't been mentioned, in our last negotiation we

   12   gave the associations who we negotiate with, and to give a

   13   little background on negotiations, we have about 1800

   14   contractors in our contractor base of signatory contractors in

   15   New York City. We don't negotiate with 1800 individual

   16   contractors. We negotiate with associations.

   17   We have associations that cover the different parts of

   18   the entities that the District Council works under. A lot of

   19   contractors belong to those associations, but a lot of

   20   contractors are independents. That is what we call them. They

   21   don't belong to those associations. They usually sign a

22   compliance letter with the District Council, stating that you

23   negotiate with the associations, whatever they agree with with

24   you, we'll all play along because the one thing that we do do

25   is enforce that all carpenters get paid the same. We don't

SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300