Independent Hearing Officer
Docket No. 02-16T
Decided: November 26, 2002
ORDER AND MEMORANDUM
This Order addresses the Voluntary Supervision Agreement entered into on October 28, 2002, by the Laborers’ International Union of North America (LIUNA) General President Terence M. O’Sullivan (General President O’Sullivan); the General Executive Board (GEB) Attorney; and the Executive Board of LIUNA Local Union 734, Newark, New Jersey (Local 734).
On November 8, 2002, LIUNA properly informed the members and officers of Local 734 about the execution of the Supervision Agreement and informed them of the date and time that the Independent Hearing Officer (IHO) would hold a hearing on the issue of whether the Voluntary Supervision should continue. See General Counsel Exhibit (GC Ex.) 7 (Letter from General President Terence M. O’Sullivan to Local 734 Officers and Members of 11/8/02).
The IHO held a telephone hearing regarding the Voluntary Supervision on November 22, 2002. Stephanie McCarthy, LIUNA Associate General Counsel, appeared on behalf of the International Union. Other attendees included: Patrick C. Byrne, appointed Deputy Supervisor of Local 734; David Grossman, Local 734’s attorney; the Local 734 Executive Board; and two Local 734 rank and file members. A court reporter duly recorded the hearing.
For the reasons set forth below, the IHO finds a substantial need for supervision over Local 734, and that the October 28, 2002 Supervision Agreement was entered into voluntarily.
LEGAL STANDARDS
The Labor Management Reporting and Disclosure Act (LMRDA) gives a governing body, in this case LIUNA, discretion in placing its member organizations in supervision to correct certain problems. See 29 U.S.C. §§ 461-66. A governing body seeking to impose a supervision upon its subsidiary must give the targeted entity a full and fair hearing. See 29 U.S.C. § 464(c). Under Section 3 of LIUNA Ethics and Disciplinary Procedure (EDP) and Article IX, Section 7 of the International Union Constitution (International Constitution), the LIUNA General President may appoint a supervisor when:
[t]he General President finds, in his opinion, that action by him is necessary for the purpose of correcting corruption or financial malpractice, assuring the performance of collective bargaining agreements or other duties of a bargaining representative, restoring democratic procedures or otherwise carrying out legitimate objects of such subordinate body or the International Union, or to protect the organization as an institution….
International Constitution, Article IX, Section 7; EDP, Section 3. Pursuant to Section 5 of the EDP, the LIUNA IHO “shall preside over and provide rulings in” the imposition of all supervisions. Id.
FINDINGS OF FACT
1. Local 734 is located in Rochelle Park, New Jersey.
2. On August 27, 2002, Vice President and Regional Manager Raymond M. Pocino wrote to LIUNA Inspector General W. Douglas Gow discussing problems within Local 734, including the loss of decertification elections, susceptibility to raiding from an independent local union, disgruntled members, and light attendance at membership meetings resulting in difficulty achieving a quorum despite a membership of more than 3,100 individuals. See GC Ex. 1 (Letter from Vice President and Regional Manager Raymond M. Pocino to W. Douglas Gow, LIUNA Inspector General of 8/27/02).
3. On August 28, 2002, Vice President and Regional Manager Raymond M. Pocino wrote to General President O’Sullivan outlining the problems within Local 734 and proposing supervision. See GC Ex. 1 (Memorandum from Vice President and Regional Manager Raymond M. Pocino to General President Terence M. O’Sullivan of 8/28/02).
4. On October 22, 2002, LIUNA’s General Counsel informed the GEB Attorney that Regional Manager Pocino had recommended a voluntary supervision and sought the approval of the GEB Attorney to arrange for the execution of a Voluntary Supervision Agreement. See GC Ex. 2 (Letter from Stephanie McCarthy, Associate General Counsel to Robert D. Luskin of 10/22/02). The GEB Attorney concurred with the Regional Manager’s recommendation and agreed that the International Union should arrange an agreement. See GC Ex. 3 (Letter from Robert D. Luskin to Stephanie McCarthy of 10/28/02).
5. At the October 28, 2002 Executive Board meeting, the Voluntary Supervision Agreement was read to the members of the Executive Board, and discussion was held regarding the organizing and raiding problems as well as the procedure and effect of supervision. See GC Ex. 4 (Local 734 Executive Board Meeting Minutes of October 28, 2002). Counsel for Local 734 was present at the Executive Board meeting and explained the differences between supervision and trusteeship under the Constitution. GC Ex. 4. After discussion, the Executive Board members voted in favor of the Supervision Agreement and executed the agreement. Id.; see also GC Ex. 5 (Voluntary Supervision Agreement).
6. On November 2, 2002, General President O’Sullivan wrote to Pocino appointing him Supervisor and instructing him to post the Voluntary Supervision and Notice of Imposition of Supervision and Hearing at the Local 734 offices. See GC Ex. 6 (Letter from General President Terence M. O’Sullivan to Vice President and Regional Manager Raymond Pocino of 11/8/02); GC Ex. 7 (Letter Notice from General President Terence M. O’Sullivan to Local 734 Officers and Members of 11/8/02).
7. Business Manager Michael Rosado testified at the hearing that he and the other members of the Executive Board had signed the Supervision Agreement voluntarily and that it was still their intention as of the date of the hearing to enter into voluntary supervision. Deputy Supervisor Byrne also testified that Local 734 was experiencing problems and that the Executive Board had made the decision to seek supervision.
8. Members of Local 734 present at the hearing were given the opportunity to make a statement before the IHO, but none chose to do so.
9. The IHO finds that Local 734 has been experiencing trouble with loss of decertification elections, raiding of members from by an independent local union, and dissatisfaction by members such that supervision is necessary to protect the organization as an institution and assure the performance of collective bargaining agreements.
10. The IHO finds that the Executive Board had a full discussion on the supervision proposal and signed the agreement with full understanding of the implications of supervision.
CONCLUSIONS
1. There is evidence supporting the need for supervision of Local 734 to enable LIUNA to protect the organization as an institution and to assure the performance of collective bargaining agreements.
2. The Local 734 Executive Board members have voluntarily entered into a Supervision Agreement with the LIUNA General President and GEB Attorney.
DECISION
The evidence presented at the hearing demonstrates the need for a supervision of Local 734. The Supervision Agreement was voluntary and shall continue pursuant to Article IX, Section 7 of the International Constitution.
PETER F. VAIRA
INDEPENDENT
HEARING OFFICER