OFFICE OF THE INDEPENDENT HEARING OFFICER
IN THE MATTER OF |
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DOCKET NO. |
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LOCAL UNION 205 RAPID CITY, SOUTH DAKOTA |
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99-22T |
ORDER AND
MEMORANDUM
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This Order and Memorandum addresses the Trusteeship imposed over Laborers’ International Union of North America (“LIUNA”) Local Union 205 in Rapid City, South Dakota (“Local 205”).
A hearing was held before the Independent Hearing Officer (“IHO”) on April 28, 1999, via telephone.
For the reasons set out below, I find that the International Union has proved that there is a substantial need for trusteeship over Local 205.
FINDINGS OF FACT
1. Local 205 is located in Rapid City, South Dakota.
2. In Fall 1998, International Representative David Hayes (“Hayes”) reported to the Midwest Regional Manager, Ed Smith (“Smith”), that Local 205 was not operating in compliance with the Constitution. Specifically, the Local was not holding regular meetings, was not participating in District Council meetings, had not held a timely election of officers, did not submit timely per capita payments to the international union, and did not effectively police its jurisdiction. See International Union Exhibit (“IU Ex.”) 1.
3. On January 7, 1999, upon the recommendation of the Midwest Regional Office and the GEB Attorney that a supervision over the affairs of Local 205 was necessary, International Representative David Hayes (“Hayes”) submitted a draft voluntary supervision agreement to the Local 205 Executive Board for its consideration. See IU Ex. 2, 3, 4.
4. Following agreed upon revisions to the draft agreement, communications between the parties broke down.
5. On February 26, 1999, the Business Manager of Local 205, Clayton Wright Jr., sent Regional Manager Ed Smith a letter indicting that he would resigned as Business Manager and chief steward effective March 10, 1999. See IU Ex. 5.
6. On March 18, 1999, Hayes reported to the Vice President and Regional Manager Ed Smith that all of the members of the Local 205 Executive Board, with the exception of the President, had either resigned from office or could not be located. See IU Ex. 6.
7. Despite the abdication of the entire Executive Board, the President of Local 205, Jo Ann Grooms (“Grooms”), has continued to ensure that the finances of Local 205 were secure. To Grooms’s credit, she ensured that Local 205 bills were paid (with the exception of the per capita tax) and she deposited union monies. Grooms also contacted the Local’s bookkeeper about completing Local 205’s LM-3 form. See IU Ex. 6.
8. Grooms, the only remaining member of the Executive Board, signed the voluntary supervision agreement. See IU Ex. 6.
9. As Local 205 was without leadership, on April 13, 1999, the General President, upon the recommendation of Vice President and Midwest Regional Manager Smith and the GEB Attorney, imposed an emergency trusteeship over the affairs of Local 205. See IU Ex. 7, 9, 10.
10. The grounds for placing Local 205 under trusteeship are: an absence of a governing body, to assure the performance of collective bargaining agreements, achieve sound financial management, restore democratic procedures, provide and effective means of self-governance, and meet the International and Local Constitutional objectives in serving the best interests of the membership.
11. The General President appointed Smith as trustee and Hayes as Deputy Trustee. See IU Ex. 10.
12. A hearing was properly noticed and held on April 28, 1999, via telephone. See IU Ex. 11.
13. Hayes testified at the hearing. Hayes stated that from his initial assignment to the region, Local 205 has failed to timely make per capita payments, the last payment having been made in October 1998. Hayes also stated that Local 205 was not responsive to requests regarding assistance for organizing and the collective bargaining process. Hayes stated that he had previously requested the Business Manager and Secretary-Treasurer to assist him with negotiations but no one from Local 205 participated. After the Secretary Treasurer resigned, the President was the sole signatory for Local 205 checks. After the Business Manager’s resignation, there was no one to oversee the running of the local, and with the resignation of the Executive Board there was no one to appoint a successor.
14. Several members voiced their opinions to the IHO at the hearing including concerns of a lack of communication between Local 205 and its members.
15. By oral order on April 28, 1999,the IHO found that the trusteeship was necessary, and should continue.
CONCLUSION
1. There is substantial evidence that a trusteeship is necessary to restore democratic procedures, gain financial stability, restore regular meetings, promote the general welfare of Local 205, provide effective leadership, and save Local 205 as an institution.
DECISION
The Trusteeship of Local 205 is necessary and should be continued pursuant to Article IX, Section 7 of the LIUNA Constitution.
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s/Peter F. Vaira
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PETER F. VAIRA |
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INDEPENDENT HEARING OFFICER |
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Date: May 19, 1999 |
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Stephanie McCarthy, Esquire Local Union 205 Edward M. Smith |
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