UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

X

UNITED STATES OF AMERICA,

Index No. Plaintiff,   90 Civ. 5722 (CSH)

-against-

DISTRICT COUNCIL OF NEW YORK CITY AND VICINITY OF THE UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA, et al.,:

Defendants.

THE TENTH INTERIM REPORT OF
THE INVESTIGATIONS AND REVIEW OFFICER

KENNETH CONBOY

INVESTIGATIONS AND REVIEW OFFICER

LATHAM & WATKINS 885 Third Avenue

New York, New York 10022

(212) 906-1200

Dated:   December 3, 1998 New York, New York

In August, the International made changes to its supervision team. James Slebiska, the daily operations chief, returned to his UBC post in. Iowa, and was replaced by Roger Newman. Also in August, Bob Statkus, the chief architect of the central job referral computer system, returned to Wisconsin for health-related reasons. Both Mr. Slebiska and Mr. Statkus were effective anti-corruption reformers who made significant contributions to the broad, beneficial changes that have been introduced at the Council by the International.

Mr. Newman, from Ohio, is not new to the New York area. He previously served the International in the Bronx by monitoring the affairs of Local 17 in periods of strife at that Local in the 1980s and early 1990s.

B.   The Centralized Job Referral System

The centralized computer dispatch system was put into

. operation in the first week of September. This is a very significant reform in the restructuring of the District Council, as the central dispatch system should conclusively end. the ability of business agents to dispense jobs and control the livelihoods of rank and file carpenters according to personal preferences or corrupt motives. The system will also end the ability of racketeers and their fellow travelers to influence business agents as to how referrals are made.

The first set of rules proposed by the Union to govern the system were approved on a provisional basis in August. These rules are attached hereto as. Exhibit 7. We have since spent a

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significant amount of time and effort monitoring the implementation of the system, and some technical flaws have been

. identified. We have also spoken to many rank and file members in order to incorporate the lessons of their experience in refining the system. Beginning in early October, increasing numbers of members have been calling and writing to the IRO's office to complain about the central dispatch system. The primary complaint has been that the amount of time spent out of work has increased, in some local unions, from an average of a few days to four or more weeks. The problem has been particularly vexing with respect to the lists (which any District Council member may sign, regardless of whether he or 'she is a member of the local union whose list he or she is signing) for Local 157 (in the east side of Manhattan) and Local 45 (in Queens). Members also complained forcefully about the lack of a specific time during the day when they could expect to receive a referral call from the District Council. Representative correspondence received 'from members regarding the dispatch system is appended hereto as Exhibit 8.

After studying the performance of the centralized system in its first three months, my staff met with Roger Newman and his representatives and proposed amendments to the rules covering the system. After agreeing in principle to amending ten key provisions of the system, on November 20th we received a memorandum from Mr. Newman proposing these and other changes in the job dispatch rules sought by the District Council. The new

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dispatch rules, which will be implemented on a provisional basis, .are attached hereto. as Exhibit 9. Notably, the following changes to the rules have been proposed:

1.  Members will receive referral calls after 3 p.m. for jobs beginning the next day. This change will enable members to look for work on their own or work outside the trade to supplement their incomes during the day without worrying that they will miss a call from the District Council;

2.  Apprentices will have a separate out-of-work list;

3.  A member who is twice rejected by an employer for lack of claimed skill must demonstrate to the Council that he has mastered the skill, and the District Council may randomly test members on the out-of-work lists to determine if they possess the skills which they claim;

4.  Mandatory fines will be levied when members fail to report that they are working at the' trade;

5.  The time for mandatory reregistration for the out-ofwork lists will be reduced to 45 days, from 90 days;

6.  Stewards may be certified by the passing of a test administered by the District Council.

7.  Any member may discuss his or her position on the out-of work list in person at the District Council each Wednesday afternoon;

8.  All work and referral lists will be posted and available for review at the Labor Technical College and all local union bulletin boards.

9.  An "800" number (1-800-858-8683] will be available to allow members to call the District Council to register for or to check their positions on the out-of-work list.

In addition, we expect to give approval to a plan pursuant to which members who volunteer for picket duty will be given a preference when referrals are made to formerly non-union jobs which are "flipped" as a result of picketing.

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Additional revisions may become necessary. We will continue to monitor the central dispatch system and endeavor, in close collaboration with the leadership of the Council, to refine it until it is working at maximum efficiency.

C.   The Trusteeship of Local 2287

The trusteeship imposed on Local 2287 in February has been successful., Through the stewardship of James Slebiska and Roger Newman of the International, and Michael Zemski, the Local's chief business agent, the fiscal integrity of the Local has been restored. Per capita taxes owed to the District Council and the International have been paid, a payment schedule has been enacted for back due rent, and the Local has an operating budget. Perhaps of primary importance to members, the quarterly dues have been cut in half.

We have recently received for review a list of .candidates being considered by the International for appointment to executive board seats at the Local. When the board is installed, the Local should be ready to resume regular monthly meetings.

IV. INVESTIGATIONS AND CHARGES

A.   Dominick Lavacca

In July, based on evidence then recently developed, my office formally charged Dominick Lavacca, a trustee and former president of Local 45 in Queens and an employee of the District Council, with violating the Consent Decree by his association with two individuals who are described by the FBI as members of

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N.Y. District Council   ID:212-229-0316   RUG 13'98   10:47 No.004 P.02

DISTRICT COUNCIL OF NEW YORK CITY AND VICINITY

United Brotherhood of Carpenters and Joiners

of America

INSTITUTED AUGUST 12,1881

NEW YORK CITY DISTRICT COUNCIL JOB SOLICITATION, REGISTRATION AND REFERRAL SYSTEM WORK RULES •

1. THE NEW YORK AND VICINITY DISTRICT COUNCIL WILL MAKE AVAILABLE A NONEXCLUSIVE AND NON- DISCRIMINATORY REFERRAL LIST FOR THOSE MEMBERS SEEKING WORK IN THE CONSTRUCTION INDUSTRY.

2. MEMBERS ARE ALLOWED TO SOLICIT WORK FROM EMPLOYERS PROVIDED EMPLOYER IS SIGNATORY OR BOUND TO A COLLECTIVE BARGAINING AGREEMENT WITH THE DISTRICT COUNCIL

3. ELIGIBILITY FOR REFERRAL STARTS NUMERICALLY WITH MEMBERS PERSONAL REQUEST TO BE PLACED ON A REFERRAL LIST. (FIRST COME- FIRST SERVED )

4. TO BE ELIGIBLE FOR REFERRAL A MEMBER MUST :

1. BE A MEMBER OF A LOCAL AFFILIATED WITH THE NEW YORK AND VICINITY DISTRICT COUNCIL OF CARPENTERS,

2. BE UNEMPLOYED AND AVAILABLE FOR WORK AT ALL TIMES .

3. BE CURRENTLY REGISTERED ON THE REFERRAL LIST .

(D) MEET THE MINIMUM TRAINING AND EXPERIENCE QUALIFICATIONS NECESSARY TO PERFORM ANY SPECIFIC WORK ASSIGNMENT AS REQUIRED .

5. MEMBERS MAY APPLY DURING BUSINESS HOURS (8:00 A.M. TO 5:00 P.M. , MONDAY THRU FRIDAY ); BY TELEPHONE, WHEN REGISTERING MEMBERS SHALL PROVIDE NAME TELEPHONE NUMBER , SOCIAL SECURITY NUMBER AND QUALIFICATIONS .

6. MEMBERS SHALL NOT REFUSE WORK . IF A MEMBER REFUSES WORK, SAID MEMBERS NAME WILL BE REMOVED FROM THE OUT OF WORK LIST.

7. ANY MEMBER REFERRED TO WORK WHO WORKS 11 CUMULATIVE DAYS IS REQUIRED TO REREGISTER BEFORE BEING REFERRED AGAIN. ANY MEMBER REFERRED TO WORK FOR LESS THAN 11 CUMULATIVE DAYS WILL RECEIVE THEIR PRIOR PLACE ON THE LIST AFTER RE-CONTACTING THE DISTRICT COUNCIL WITHIN TWO WORKING DAYS OF THE LAY-OFF.

8, ALL MEMBERS CURRENTLY REGISTERED ON THE REFERRAL LISTS, WHO UPON BECOMING EMPLOYED BY ANY MEANS, REGARDLESS OF WORK DURATION SHALL IMMEDIATELY NOTIFY THE DISTRICT COUNCIL. FAILURE TO DO SO SHALL RESULT IN THE MEMBER BEING REMOVED FROM THE OUT OF WORK LIST AND CHARGES MAY BE PREFERRED .

N.Y. District Council   ID:212-229-0316   AUG 13'98   10:47 No.004 P.03

9. WHEN A MEMBER PLACES THEIR NAME ON AN OUT OF WORK LIST MEMBER MUST CONTACT THE DISTRICT COUNCIL OFFICE AGAIN WITHIN 90 DAYS OF THEIR SIGN ON DATE AND EVERY 90 DAYS THEREAFTER THAT THE MEMBER IS STILL NOT EMPLOYED , FAILURE TO INFORM THE DISTRICT COUNCIL THAT THE MEMBER IS STILL OUT OF WORK SHALL RESULT IN THE MEMBERS REMOVAL FROM THE OUT OF WORK LIST.

10. ANY. DISCOVERY OF A POSITIVE DRUG TEST FROM ANY SOURCE WILL RESULT IN THE MEMBERS REMOVAL FROM THE OUT OF WORK LIST UNTIL SUCH TIME AS THE MEMBER IS CERTIFIED DRUG FREE FROM AN EMPLOYEE ASSISTANCE PROGRAM.

11. THE SECRETARY- TREASURER/ BUSINESS MANAGER OR HIS DESIGNEE SHALL ADMINISTER THE REFERRAL LISTS AND IS AUTHORIZED TO EXERCISE HIS DISCRETION IN ANY EVENT A. DECISION MUST BE MADE ON ANY ADMINISTRATIVE OR PROCEDURAL QUESTION THAT MIGHT ARISE THAT IS NOT SPECIFICALLY PROVIDED FOR IN THESE RULES.

DISTRICT COUNCIL OF NEW YORK CITY AND VICINITY

United Brotherhood of Carpenters and Joiners

of America

November 20, 1998

TO:   IRO Kenneth Conboy

FROM:   Roger Newman

New York City District Council

SUBJECT:   Solicitation, Registration & Referral System

Please review the following updated job referral rules. Following review by your office the District Council will mail these rules to the entire membership. If I can be of any assistance in this matter, please feel free to contact me at (212) 366-7500.

1   1-800-858-4683 may be used when a member is calling to put his or her name on or check his or her position on the out-of-work list. 212-366-3330 is still being used.

2.   A member can call from. 8 a.m. to 4 p.m. to put his or her name on the out-of-work list or to report that they have found employment.

3.   The hours that the Council will call for next day referral will be 3 p.m. to 6 p.m. But if a referral is needed for the same day the Council reserves the right to call at any time.

4.    Any member who remains unavailable for referral for three (3) consecutive days will be removed from the out-of-work list. The member must then re-register to obtain an outof-work list position.

5.    A member may freeze an out-of-work list position up to 30 days by faxing a request to 212-229-0316, prior to the start date of unavailability, stating the start date, end date and the reason for requesting freeze of the out-of-work list position (for example; vacation, sick, etc). The request must include the member's social security number. 'The member must receive another job referral to obtain another 30-day freeze. The member must submit a doctor's note to obtain any hold of out-of-work list position of more than 30 days.

6.    Any member disputing his or her out-of-work list position, may come to the District Council on Wednesdays between the, hours of 2 p.m. and 4 p.m. to discuss any problems he or she might have.

Continuation

Memo to Dennis Walsh Page 2

7.   Members must call the job referral dispatch numb to report that he or she has found     employment. Any member who fails to report to the District Council that they have found employment will be subject to fines as follows: First time: $100.00, Second time: $250.00, Third time: $500.00.

8.   If a member takes a referral and does not show up at the job site the member will be removed from the out-of-work list.

9.    A member who is rejected twice (2) by an employer for lack of skill will have the particular skill removed from the registration until the member demonstrates to the District Council that the skill has been mastered by either a certificate from any accredited school. The member may also submit two (2) letters from signatory contractors that the member is proficient at that skill. Members may be randomly tested for all listed skills.

10.   All work lists and job referral lists are posted weekly from the hours of S a.m. that 7 p.m. at the Labor Technical College at 395 Hudson Street, New York City. Head Business Agents will be reviewing out-of-work lists on a weekly basis.

11   The District Council from time to time must fill lawful requests for minority and female employees due to contact minority requirements. In order to facilitate these requests the member may, but is not required to advise the District Council of their Minority status or sex when calling to put their name on the out-of-work list or updating their skills_

12.   The District Council recognizes that a team of qualified shop stewards is needed to assist the Business Representatives in the field. Therefore, as of January 1, 1999 all stewards referred from the District Council out-of-work list must complete the 1.313C Comprehensive Construction Steward System Classes or an equivalent test. The member must possess the skill of that particular job referral in addition to the steward skill to be eligible.

13.   Members who volunteer for picket duty when registering for the out-of-work list will be given preference at job sites where the member has assisted in picketing and the job sites have been organized successfully or turned over to signatory contractors All job referrals as the employer's labor needs dictate will be despatched in list order priority and according to skills' needs.

14.   Any member referred to work for less than 11 cumulative days will receive their prior place on the out-of-work list after re-contacting the District Council the next business day, after lay off.

15.   There will be a separate Apprentice list for each Local Union.

16.   When a member places his or her name on the out-of-work list, the member must contact the District Council again within 45 days from the date he or she first signed the out-ofwork list and every 45 days thereafter assuming the member is still unemployed. Failure

Continuation

Memo to Dennis Walsh

Page 3

to inform the District Council that the member is still unemployed shall result in the member's removal from the out-of-work list.