UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

UNITED STATES OF AMERICA,
         Plaintiff,
v.
LABORERS' INTERNATIONAL 
      UNION OF NORTH AMERICA, 
      AFL-CIO,
         Defendant.

CONSENT DECREE

This matter coming before the Court by agreement of the parties, the United States of America (hereinafter "the United States"), plaintiff, and the defendant, Laborers' hereinafter "LIUNA"), acting through and by decision of the General Executive Board, (hereinafter "the GEB"), and the Court being fully informed in the premises, FINDS as follows:

A.     The organized crime syndicate known as La Cosa Nostra (hereinafter "the LCN") has at various times had a corrupting influence on the affairs of various locals and other entities within LIUNA;

B.     By bringing certain criminal prosecutions and related proceedings, the United States has had success in reducing the extent of LCN corruption in various entities within LIUNA, but has not eliminated all of the corrupting influence in entities within LIUNA;

C.     By the imposition of certain trusteeships, internal union discipline, the adoption of an Ethics Code and a new system of disciplinary procedures, and other techniques, the current GEB has taken steps to reduce the LCN corruption in certain entities within LIUNA, but has not eliminated all of such corrupting influence in entities within LIUNA;

D.     The United States and LIUNA agree that there should be no corruption by the LCN of any entity anywhere within LIUNA, and thus, that further cooperative efforts, subject to judicial supervision and with judicial assistance, are necessary and appropriate.

E.     The parties thus have agreed to the filing of a complaint, seeking equitable relief pursuant to the civil remedies provisions of the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. 1964, and to the contemporaneous filing of this Consent Decree;

F.     The United States and LIUNA agree that one of the purposes of this Consent Decree is to ensure that the affairs of LIUNA should be maintained and conducted in a democratic fashion, with integrity, for the sole benefit of its members and without unlawful outside influence;

G.     This Consent Decree has been entered into on. behalf of the rank-and-file members of LIUNA; and,

H.     The United States and LIUNA, by and through its GEB, have consented to the entry of this order.

    Accordingly, it is hereby ORDERED, ADJUDGED AND DECREED as follows:

Purpose and Summary

1.     The findings set forth in paragraphs A through H above are incorporated by reference in this paragraph and are agreed to by the undersigned parties. Both the United States and LIUNA are strongly committed to eradicating organized crime and criminal elements from all levels of the union. To fulfill its commitment to eradicate organized crime and criminal elements from all levels of the union, LIUNA has adopted a variety of procedural, structural, and substantive reforms designed to accomplish that goal and agrees to the adoption of additional reforms. These include constitutional, election and work referral reforms.

2.     In addition, the GEB has retained an attorney it, (hereinafter "the GEB attorney"), who has the GEB's mandate to take whatever action is necessary to accomplish the removal of organized crime and all other criminal elements from all levels of the union.

3.     To achieve the mandate of the Consent Decree, this decree also establishes: (i) an Independent Monitor, who, among other things, is to supervise the removal of organized crime and all other criminal elements from all levels of the union; (ii) an investigations Officer, who shall have independent authority to initiate and pursue investigations under this Consent Decree; and (iii) an Elections Officer who is to supervise the conduct of direct rank-and-file elections for officers of the International Union. Nothing in this paragraph shall be construed to limit the power and authority of the LIUNA officers from taking appropriate action not inconsistent with the purposes and objectives of this decree.

Court Jurisdiction

4.     LIUNA, by and through the GEB, acknowledges that this Court has jurisdiction over the subject matter of the action and personal jurisdiction over the parties to this Consent Decree. This Consent Decree is a valid exercise of the Court's jurisdiction and remedial authority.

5.     This Court shall retain exclusive jurisdiction over the subject matter of this action and over the parties to this Consent Decree to supervise implementation of this Consent Decree and shall have exclusive jurisdiction to decide any and all issues arising under the Consent Decree, and any and all disputes growing out of the interpretation or application of this Consent Decree until further order of this Court. The independent Monitor, the Investigations Officer, the Elections Officer or any party to this Consent Decree may apply to the Court for any order necessary or appropriate to implement this Consent Decree, including orders preventing non-parties from interfering with the implementation of the Consent Decree. The GEB, the Independent Monitor, and the United States shall have the right to intervene in the event of any and all disputes growing out of the interpretation or application of this Consent Decree.

Definitions

6.     Any reference in this Consent Decree to the term' "Independent Monitor" shall be construed to be a reference to the Independent Monitor whose powers and duties are defined in paragraphs 26 to 35 below.

7.     Any reference in this Consent Decree to the term to the Investigations Officer whose powers and duties are defined in paragraphs 36 to 43 below.

8.     Any reference in this Consent Decree to the term "Elections Officer" shall be construed to be a reference to the Elections Officer whose powers and duties are defined in paragraphs 44 to 47 below.

9.     Any reference in dais Consent Decree to the term "employee pension benefit plan," shall be construed to be a reference to any "employee pension benefit plan," and includes, but is not limited to, such plans as are defined in 29 U.S.C. ß 1002(2) and any pension plans covering governmental employees.

10.     Any reference in this Consent Decree to the term "employee welfare benefit plan" or "welfare plan" shall be construed to be a reference to any employee welfare benefit plan, including, but not limited to, such plans as are defined in 29 U.S.C. ß1002(1) or any welfare plan covering governmental employees.

11.     The term "attorneys for the United States" as used in this Consent Decree means the United States Attorney for the Northern District of Illinois or any assigned Assistant United States Attorney for the Northern District of Illinois and the Chief of the Organized Crime and Racketeering Section, Criminal Division, United States Department of Justice, (hereinafter OCRS ') or any assigned Trial Attorney of that office, or any other attorney assigned by the United States Attorney General. Any requirement in this Consent Decree to submit reports or other documents to the attorneys for the United States shall be construed to require submission of such reports and documents to the United States Attorney for the Northern District of Illinois and the Chief of OCRS.

12.     Any reference to the term "LIUNA and its affiliated entities" in this Consent Decree shall be a reference to the International Union and its Regional Offices, District Councils, Local Unions and other subordinate entities and its affiliated employee pension benefit plans, employee welfare benefit plans, and its other affiliated funds, including but not limited to, political action committees (hereinafter referred to as "PACs") and Laborers-Employers Cooperative Education Trust funds (hereinafter referred to as "LECET funds").

13.     As used in this Consent Decree, the term "knowingly associating" shall mean that: (a) an enjoined party knew or should have known that the person with whom he or she was associating is a barred person; and (b) the association was more than fleeting or casual. A "barred person" is (1) any member or associate of any La Cosa Nostra crime family or any other criminal group, or (2) any person prohibited from participating in union affairs. Nothing in this paragraph shall preclude: (i) an enjoined party from meeting or communicating with a barred person who is an employer to discuss the negotiation, execution or management of a collective bargaining agreement, or a labor dispute, when the enjoined party represents, seeks to represent, or would admit to membership the employees of that employer; (ii) an enjoined party from meeting or communicating with a barred person who is a representative of a labor organization to discuss union matters; (iii) an enjoined party from meeting or communicating with an officer, employee or member of LIUNA and its affiliated entities; and (iv) an enjoined party from meeting or communicating with a relative by blood or marriage solely for social purposes. As used in this paragraph, the term "relative" shall mean lineal descendent, stepchild, ancestor, sibling or spouse or child of a lineal descendent, stepchild, ancestor, or sibling.

Union Action

14.     Permanent Injunctions: LIUNA agrees that all current and future officers, agents, representatives, employees and members of LIUNA and its affiliated entities are permanently enjoined: 

(a)     from committing any act of racketeering as defined in 18 U.S.C. § 1961(1); 

(b)     from knowingly associating with any member or associate of the LCN or other criminal group or with any barred person;

  (c)     f rom knowingly permitting any member or associate of the LCN or other criminal group or barred person to exercise any control or influence, directly or indirectly, in any way or degree, in the conduct of the affairs of LIUNA and its affiliated entices. Nothing in this paragraph shall limit an enjoined person's ability to associate or transact union business with employers, LIUNA members, and labor representatives as provided for in paragraph 13 (i)-(iii) above; 

(d)     from obstructing or otherwise interfering, directly or indirectly, in any way or degree, with the work of anyone who is appointed by the terms of this decree or from interfering with the efforts of any officer, attorney, or employee of LIUNA and its affiliated entities in effectuating the terms of this decree, or in attempting to prevent the LCN or other criminal element from exercising influence on the conduct of the affairs of LIUNA and its affiliated entities.

15.     Job Referral Rules: LIUNA believes that its members should be treated fairly in the distribution of work and that members should not be intimidated from exercising their democratic rights through manipulation of the hiring hall process. Therefore, LIUNA agrees that within thirty days after the entry of this Consent Decree, LIUNA and all of its subordinate entities shall adopt the job referral rules and procedures attached hereto as Exhibit A and incorporated herein (hereinafter referred to as "the Job Referral Rules"). These entities shall comply with the Job Referral Rules in all respects.

16.     The GEB Attorney and the Independent Monitor shall supervise the implementation and operation of the Job Referral Rules. Upon determining that there has been a violation of those rules, the GEB Attorney or the independent Monitor may issue any direction to any officer, agent representative, employee or member of LIUNA or any of its subordinate entities, as may be appropriate to remedy the violation. The Job Referral Rules may be amended or modified by agreement of the GEB Attorney and the independent Monitor.

17.     Other Internal Reforms: LIUNA recognizes that members must be free from intimidation in order to exercise their rights under the provisions of the Labor Management Reporting and Disclosure Act of 1959, as amended, 29 U.S.C. §§401-531 (hereinafter referred to as 'the LMRDA"). The free exercise of these rights is important in eliminating the influence of organized crime. Therefore, LIUNA agrees to the election reforms set forth in paragraphs 45 to 48 below, and the constitutions enumerated in paragraphs 49 through 50 below.

18.     GEB Attorney: The GEB Attorney has given the power by the GEB to initiate and conduct investigations to remove organized crime and all other criminal elements as a source of influence in the affairs of LIUNA. All of the investigative powers described in the LIUNA International Union Constitution, Uniform Local Union Constitution and Uniform District Council Constitution (hereinafter referred to collectively as "the LIUNA constitutions") are delegated to the GEB Attorney for the purposes of complying with this Consent Decree. The GEB Attorney may initiate charges and present evidence at hearing before the Independent Monitor as detailed in paragraph 30 below. The GEB Attorney may bring charges against any officer, agent, representative, employee or member of LIUNA and its affiliated entices, including the General President, the General Secretary-Treasurer, and the members of the General Executive Board, for any matter constituting a felony violation of the laws of the United States; or any violation of any state or federal law relating to the conduct of the affairs of a labor organization or employee benefit plan. Charges may also be brought for a violation of the injunctions adopted in paragraph 14 of this Consent Decree, any provision of the LIUNA constitutions, or working rules, including the Job Referral Rules.

19.     LIUNA will provide the GEB attorney with sufficient staff and funding by LIUNA to fulfill his mandate. The GEB Attorney shall have complete and unfettered access to, and the right to make copies of, all books, records, accounts, correspondence, files, and other documents of LIUNA and its affiliated entities or of any officer, agent, representative, member or employee of LIUNA and its affiliated entities. If the GEB Attorney needs subpoena power to obtain necessary documents and testimony from outside parties, he shall seek such power from the Court by requesting it through the investigations Officer, who shall not unreasonably deny the request. The GEB Attorney may request the Investigations Officer to assume jurisdiction over any matter at any time.

20.     The GEB Attorney shall have the right to take and require the sworn statement or sworn oral deposition of any officer, agent, representative, employee or member of LIUNA and its affiliated entities. If any person who is the subject of an inquiry under this decree refuses to testify or to provide evidence to the GEB Attorney on the basis of his privilege against self-incrimination, discipline may be imposed on such person for that reason alone, consistent with the Code of Ethics of the American Federation of Labor-Congress of Industrial Organizations, as adopted by LIUNA in 1958. Also, failure to testify or provide evidence in the absence of a valid claim of attorney-client privilege may be the basis for discipline. Any person so declining to testify or provide evidence to the GEB Attorney may be subpoenaed to testify before the independent Monitor and he may be subject to punishment for contempt of court upon application to the Court by the independent Monitor.

21.     Reporting Requirements: On a quarterly basis, the GEB Attorney shall file a written status report with the independent Monitor regarding the actions he has taken toward achieving the objectives and purposes of this Consent Decree. Copies of this report shall be provided to the GEB, the attorneys for the United States and to the Investigations Officer. The report shall also include an assessment of the progress of the adoption, implementation, and operation of the Job Referral Rules.

22.     LIUNA shall publish reports by the GEB Attorney concerning his activities and the progress he is making towards achieving the objectives and purposes of this decree. These reports will be made on a bimonthly basis and will be >published in LIUNA's organ, The Laborer, or other similar publication.

23.     Review Authority: The GEB Attorney, in conjunction with the Investigations Officer, will study the operations of LIUNA and its affiliated entices and recommend changes to the GEB to improve those operations in order to eliminate corruption and racketeering activity. The operations that the GEB Attorney and Investigations Officer shall study include, but are not limited to, the following: 

a)     the procedures used by LIUNA to investigate and discipline alleged misconduct by the officers, agents, representatives, employees, and members of LIUNA and its affiliated entities; 

(b)     the procedures used by LIUNA and its affiliated entities to fill vacancies in union positions; 

(c)     the procedures used by LIUNA and its affiliated entities to select service providers;

(d)     the procedures used by LIUNA and its affiliated entities to acquire and staff training sites; 

(e)     the employment procedures used by LIUNA and its affiliated entities; and 

(f)     the practices of LIUNA relating to the imposition of trusteeships against subordinate organizations.

24.     Within twelve months after entry of this decree, the GEB Attorney and the investigations Officer are to make specific recommendations to the GEB based upon their study of the issues listed in paragraph 23 above, which the GEB shall consider in good faith. As to any such recommendation that is directly related to those disciplinary procedures or those trusteeship procedures necessary to eliminate corruption by the LCN or other criminal group, if the GEB fails to adopt the recommendations within 30 days, the Court may order LIUNA to adopt and implement such recommendations upon application of either the GEB Attorney or the Investigations Officer, if the Court finds that such additional disciplinary procedure or trusteeship procedure recommendations are necessary to eliminate corruption by the LCN or other criminal group. Copies of the recommendations by the GEB Attorney and the Investigations Officer to the GEB shall be concurrently sent to the Court, the independent Monitor and the attorneys for the United States.

25.     The GEB Attorney and the investigations Officer also shall study the procedures used by LIUNA for the chartering and defining of Jurisdiction of Local Unions, District Councils, and other subordinate bodies, and the discipline of these entities, for the purpose of assuring that these procedures will not be abused so as to encourage corruption following the expiration of this Consent Decree. When the Court determines to terminate this Consent Decree, the GEB Attorney and the Investigations Officer shall thereafter have six months in which to make specific recommendations to the GEB based upon their study of these matters. If the GEB fails to adopt the recommendations within thirty (30) days, the Court may order LIUNA to adopt and implement the recommended procedures following the termination of this decree upon application of either the GEB Attorney or the Investigations Officer, if the Court finds that such adoption as such procedures is necessary to eliminate corruption by the LCN or other criminal group and does not impose an unreasonable burden upon the operations or self-governance of the Union. Necessary is defined as meaning that other procedures in the Consent Decree have been tried and have failed or reasonably appear to be unlikely to succeed if tried. Copies of the recommendations by the GEB Attorney and the Investigations Officer to the GEB shall be concurrently sent to the Court, the Independent Monitor and the attorneys for the United States.

26.     Waiver of Attorney-Client Privilege: The actions taken and decisions made by the GEB Attorney in the performance of his duties under this Consent Decree are not covered by the attorney-client or work-product privilege, and if so covered, those privileges are deemed to have been waived by LIUNA and its affiliated entities.

The Independent Monitor

27.     The parties shall jointly select an independent Monitor to be appointed by the Court. If the parties fail to reach agreement on selection of an individual to serve as the Independent Monitor, the parties shall follow the procedures set forth in paragraph 58 below. The independent Monitor will supervise the removal of organized crime and all other criminal elements as a source of influence in the affairs of LIUNA. In achieving this mandate independent Monitor shall have the following powers, rights and responsibilities:

28.     Disciplinary Powers: The independent Monitor shall have the same rights and powers as the LIUNA General President and GEB and any other officer, agent, employee or representative of LIUNA, as well as full authority derived from any and all provisions of law, to discharge those duties which relate to disciplining officers, agents, representatives, employees, and members of LIUNA and its affiliated entities for the purposes of complying with this Consent Decree and fulfilling its mandate. The Independent Monitor shall have the authority to impose discipline for all matters within the jurisdiction and authority of the GEB Attorney and the Investigations Officer. The Independent Monitor shall preside at hearings on charges brought by the GEB Attorney and the investigations Officer.

29.     Review of the GEB Attorney: if the Independent Monitor reasonably determines that the GEB Attorney is not making sufficient progress toward the achievement of the purposes of this Consent Decree, the independent Monitor may remove any or all of the investigative authority delegated to the GEB Attorney under this Consent Decree. In such event, those powers shall be exclusively delegated to the Investigations Officer. In such event, the Independent Monitor shall give notice to the Court and to the parties with a statement of the reasons for such action.

30.     Policy Review: The Independent Monitor shall have the authority to review the policies and appointments of LIUNA and its affiliated entities as set forth below: 

(a)     The GEB shall submit to the independent Monitor the names and identifying data of all persons selected to fill vacancies on the GEB between the times of regular elections for such positions, and any other appointed office of LIUNA, including, but not limited to, regional managers, international representatives, special international representatives and trustees to oversee the affairs of LIUNA district councils, local unions, and other subordinate entities during a trusteeship imposed pursuant to the provisions of 29 U.S.C. § 462. Unless the Independent Monitor disapproves the appointment within 15 days of receiving the submission, based on a determination that such selection would be inconsistent with the objectives and purposes of this Consent Decree, the appointment shall be final. The Independent Monitor may submit such names to the attorneys for the United States who may submit the names and identifying data to any governmental agency for the purpose of determining if the selection would be inconsistent with the objectives and purposes of this Consent Decree. 

(b)     The GEB shall submit to the independent Monitor the names and identifying data of all persons selected by LIUNA or any of its affiliated entices to fill the position of union trustee, or any other union-appointed position, on any international pension benefit plan or welfare plan or other fund affiliated with LIUNA, including, but not limited to, PACs and LECET funds. Unless the independent Monitor disapproves the appointment within 15 days of receiving the submission, based on a determination that such selection would be inconsistent with the objectives and purposes of this Consent Decree, the appointment shall be final. The independent Monitor may provide such names to the attorneys for the United States who may submit the names and identifying data to any governmental agency for the purposes of determining if the selection would be inconsistent with the objectives and purposes of this Consent Decree. 

(c)     The GEB shall submit all proposed contracts of over $150,000 to be entered into by LIUNA or any of its affiliated entities to the Independent Monitor. Unless the Independent Monitor disapproves the contract within 15 days of receiving the submission, based on a determination that entry into such contract would be inconsistent with the objectives and purposes of this Consent Decree, the GEB or LIUNA may enter into such contact. In making his determination, the Independent Monitor may request the assistance of the Investigations Officer or the attorneys for the United States. 

(d)     The independent Monitor shall have the authority to review all expenditures or gifts of union property by the GEB or any other entity of the International Union, including its regional offices. Within 15 days of receipt of notice of any expenditure, the independent Monitor may seek to rescind any expenditure that is not duly authorized or, if authorized, would be inconsistent with the objectives and purposes of this Consent Decree. The Independent Monitor shall report the results of this review to the Court and to the attorneys for the United States who may use such information for whatever purposes they deem appropriate. 

(e)     The GEB shall give the independent Monitor a written agenda for every meeting of the GEB, and the Independent Monitor or his designee shall have the right to attend every such meeting.

31.     Hearing Procedures: At any hearing conducted by the Independent Monitor, the following procedures shall apply: 

(a)     Hearings before the independent Monitor shall be initiated by the filing of a written specific charge which shall be served upon the charged party. 

(b)     The charged party shall have at least thirty days prior to the hearing to prepare a defense. 

(c)     The party charged may be represented by counsel at the hearing. 

(d)     A fair and impartial hearing shall be conducted before the independent Monitor. 

(e)     The hearing shall be conducted under the rules and procedures generally applicable in labor arbitration proceedings and decisions shall be made using a 'just cause" standard. 

(f )     The independent Monitor shall have the authority pursuant to 18 U.S.C. §1965( b), to issue subpoenas to all parties including LIUNA or any of its affiliated entities and to non-parties for the purpose of compelling testimony and requiring the production of books, papers, records or other tangible objects at hearings conducted by the independent Monitor. 

(g)     The Independent Monitor may require any component of LIUNA, or its affiliated entries, or any officer, agent, representative, member or employee of LIUNA or any of its affiliated entities to produce any book, paper, document, record, or other tangible object for use in any hearing conducted by the independent Monitor. Any failure by LIUNA or its affiliated entities to comply with any such request may be used by the Independent Monitor to determine whether such entity should be subject to the imposition of discipline. 

(h)     All testimony and other evidence shall be received by the Independent Monitor under oath and shall be subject to the penalties of perjury to the same extent as if such evidence was submitted directly to the Court. 

(i)     if any person who is the subject of an application for imposition of discipline, refuses to testify or to provide evidence before the independent Monitor on the basis of his privilege against self-incrimination, discipline may be imposed by the Independent Monitor on such person for that reason alone, consistent with the Code of Ethics of the American Federation of Labor-Congress of industrial Organizations, as adopted by LIUNA in 1958. Also, failure to testify or provide evidence in the absence of a valid claim of attorney-client privilege may be the basis for discipline. Any person so refusing to testify or provide evidence before the Independent Monitor may be subject to punishment for contempt of court upon application to the Court by the Independent Monitor. 

(j)     At any hearing before the Independent Monitor, the Independent Monitor may receive and consider, along with any other evidence, the sworn testimony of any law enforcement officer regarding information given to a law enforcement agency by a reliable confidential source of information. In no instance shall such officer be required to reveal the identity of the confidential source of information, but the Independent Monitor can choose what weight, if any, to give such testimony. 

(k)     Any discipline imposed by the Independent Monitor, or other decision of the Independent Monitor, shall be final and binding on the parties to the hearing subject to review by the Court.

32.     Appeals of Monitor's Decisions: Any discipline imposed by, or decision of the Independent Monitor shah be fine and binding, subject to review by this Court. For a period of up to fourteen (14) calendar days after service of the independent Monitor's decision, the person, party, or entity aggrieved by the decision shad have the right to seek review in this Court. In reviewing decisions of the Monitor, the Court shall apply the same standard of review applicable to review of final agency action under the Administrative Procedure Act, that is, that such decision shall be sustained if supported by substantial evidence on the record and if it is not an abuse of discretion.

33.     Reporting Requirements: On a quarterly basis, the Independent Monitor shall file a written status report with the GEB and the Court regarding the activities of the GEB Attorney, the Investigations Officer, and the independent Monitor toward achieving the objectives and purposes of this Consent Decree. Copies of this report shall be provided to the attorneys for the United States, to the GEB Attorney and to the Investigations Officer. The Independent Monitor may distribute written reports to the membership of LIUNA entities describing the activities of the Independent Monitor and/or any events occurring as part of the implementation of this Consent Decree. The Independent Monitor shall also make quarterly assessments of the progress being made to fulfill the mandate of this decree and these reports will also be published at union expense in The Laborer or other similar publication.

34.     Court Enforcement: The Independent Monitor, the Investigations Officer, the GEB, or the parties, may apply to the Court for any orders necessary or appropriate to implement this Consent Decree. 

(a)     The Independent Monitor may request that the United States assist him in any manner to carry out his responsibilities and mandate under this decree, including asking the United States to represent him in any proceeding before the Court or to provide any legal assistance or advice. 

(b)     The Independent Monitor may apply to the Court for appropriate sanctions against any person who (i) has failed to comply with any of the Independent Monitor's decisions or orders, or (ii) has obstructed or interfered with him or anyone else in the exercise of their duties under this Consent Decree.

35.     Staff: The Independent Monitor shall have the authority to employ such personnel as are reasonably necessary to assist in the proper discharge of the duties imposed by this Consent Decree. To the extent that authority under this Consent Decree is granted to the Independent Monitor, that authority is also delegated to personnel hired or retained by the Independent Monitor to carry out his mandate under this Consent Decree.

36.     Term of Officer: The term of the Independent Monitor shall presumptively be for three years. Any party may petition the Court to extend the period beyond three years, upon a finding that the presence of an Independent Monitor is necessary for a longer period to achieve the purposes of this decree. Any party may petition the Court to shorten the period with the agreement of the parties.

The Investigations Officer

37.     The parties shall jointly select an Investigations Officer to be appointed by the Court. If the parties fail to reach agreement on selection of an individual to serve as the Investigations Officer, the parties shall follow the procedures set forth in paragraph 58 below. The mandate of the Investigations Officer is to initiate and conduct investigations to remove organized crime and all other criminal elements as a source of influence in the affairs of LIUNA. To achieve this mandate, the Investigations Officer shall have the following powers, rights and responsibilities:

38.     Disciplinary Hearings: The Investigations Officer shall have independent authority to investigate the operations of LIUNA or any of its affiliated entities and to initiate disciplinary charges against any officer, agent, representative, employee or member of LIUNA or any of its affiliated entities. The Investigations Officer has the same authority to initiate and conduct investigations as does the GEB Attorney or any other officer, agent, employee or representative of LIUNA under this Consent Decree. The Investigations Officer may initiate charges and present evidence at hearings before the Independent Monitor as detailed in paragraph 30 above. The Investigations Officer may bring charges against any officer, agent, representative, employee or member of LIUNA and its affiliated entities for any matter constituting a felony violation of the laws of the United States; or any violation of any state or federal law relating to the conduct of the affairs of a labor organization or employee benefit plan. Charges may also be brought for a violation of the injunctions adopted in paragraph 14 of this Consent Decree, any provision of the LIUNA constitutions, or working rules including the Job Referral Rules.

39.     Investigative Powers: The Investigations Officer shall have the authority to take such reasonable steps as are lawful and necessary to be fully informed about the activities of LIUNA or any of its subordinate regional offices, district councils, local unions or other subordinate entity. To carry out his responsibilities under this Consent Decree, the Investigations Officer shall have the same rights and powers to initiate investigations and prefer charges as the GEB Attorney as set forth in paragraph 18 above. 

(a)     The Investigations Officer shall have the discretion to refer allegations of misconduct by any officer, agent, representative, employee, or member of LIUNA or its affiliated entities to the GEB Attorney. 

(b)     The Investigations Officer shall have the discretion to assume jurisdiction over any matter referred by the GEB Attorney.

40.     Access to Information: The Investigations Officer shall have the unfettered right to attend all executive board or general membership meetings of any LIUNA district council, local union or other subordinate entity and to examine and copy all books, records, and all other documents of LIUNA or its affiliated entities, and of any officer, agent, representative, employee, or member of LIUNA or its affiliated entities.

41.     Review Authority: The Investigations Officer shall have the authority to review the matters set forth in this subparagraph: 

(a)     The Investigations Officer, in conjunction with the Attorney for the GEB, will study the operations of LIUNA and its affiliated entities in the manner detailed in paragraph 23 of this Consent Decree and shall recommend changes to the GEB to improve those operations in order to eliminate corruption and racketeering activity. 

(b)     Within twelve months after entry of this decree, the GEB Attorney and the Investigations Officer are to make specific recommendations to the GEB based upon their study of the issues listed in paragraphs 23 and 25 above, which shall be considered in accordance with paragraphs 24 and 25 above. Copies of the recommendations by the GEB Attorney and the Investigations Officer to the GEB shall be concurrently sent to the Court, the Independent Monitor and the attorneys for the United States.

42.     Reporting Requirements: On a quarterly basis, the Investigations Officer shall file a written status report with the Independent Monitor regarding the activities of the Investigations Officer toward achieving the objectives and purposes of this Consent Decree. Copies of this report shall be provided to the attorneys for the United States and to the GEB Attorney.

43.     Staff: The Investigations Officer shall have the authority to employ such personnel as are reasonably necessary to assist in the proper discharge of the duties imposed by the Consent Decree. To the extent that authority under this Consent Decree is granted to the Investigations Officer, that authority is also delegated to personnel hired or retained by the Investigations Officer to carry out his mandate under this decree.

44.     Term: The term of the Investigations Officer shall presumptively be for three years. Any party may petition the Court to extend the period beyond three years upon a finding that the presence of an Investigations Officer is necessary for a longer period to achieve the purposes of this decree. Any party may petition the Court to shorten the period with the agreement of the parties.

Elections Officer

45.     The parties shall jointly select an Elections Officer to be appointed by the Court. If the parties fail to reach agreement on selection of an individual to serve as the Elections Officer, the parties shall follow the procedures set forth in paragraph 58 below. The Elections Officer shall supervise direct elections by the rank-and file membership of LIUNA of persons to serve as members of the General Executive Board of LIUNA, that is, the positions of General President, General Secretary-Treasurer, and the positions of eleven International Vice-Presidents.

46.     It shall be the mandate of the Elections Officer to ensure that free and fair, direct, referendum elections based on the principle of one member, one vote are held for positions on the General Executive Board of LIUNA. In achieving this mandate, the Elections Officer shall adhere to the guidelines set forth below and shall have the following powers, rights and responsibilities: 

(a)     The delegates to the 1996 LIUNA International Convention, and successive conventions, shall be chosen by direct rank- and-file secret balloting which shall be conducted no more than four (4) months, nor less than two (2) months, before the date on which the convention is to be held, with each delegate to be elected individually. 

(b)     All duly nominated candidates for the position of International Vice President shall stand for election on the same ballot and at the same time as the election of General President and General Secretary-Treasurer, as provided herein. 

(c)     At the International Convention, after the voting for nominees for the position of International Vice President, all delegates shall then vote for nominees for the offices of LIUNA General President and General Secretary-Treasurer. 

(d)     Any delegate may place in nomination the name of any LIUNA member in good standing for the positions of General President, General Secretary-Treasurer, or International Vice President otherwise meeting the qualifications for the office specified in Article VI, Section 4 of the LIUNA Constitution. 

(e)     To qualify for the ballot for direct rank-and-file voting, candidates for LIUNA General President, General Secretary-Treasurer, or International Vice President at-large must receive at least five percent (5%) of the delegate votes at the International Convention. Regionally selected International Vice Presidents must receive at least five percent (5%) of the delegate votes from delegates of the region the candidates seek to represent. 

(f)     No person may appear on the ballot in the same election for more than one position on the GEB. 

(g)     No less than two (2) and no more than three (3) months after the International Convention at which candidates were nominated, the LIUNA General President, General Secretary- Treasurer, and International Vice Presidents shall be elected by direct rank-and-file voting by secret ballot in union-wide, one-member, one-vote elections for each position. 

(h)     Six of the International Vice Presidents shall be chosen on a regional geographical basis pursuant to terms agreed upon by the GEB Attorney and the Elections Officer, such that each geographical region shall include substantially the same number of members. The candidates for these six International Vice President positions shall be nominated on a geographical basis. All duly nominated candidates for the position of International Vice President shall stand for election conducted at Local Unions within each region on the same ballot and at the same time as the election of General President and General Secretary-Treasurer. Five of the International Vice Presidents shall be chosen on an at-large basis. The candidates for these five International Vice President positions shall be nominated at the same time and in the same manner as the nominations for General President and General Secretary-Treasurer. No more than two International Vice Presidents may be from any one region. 

(i)     All direct rank-and-file voting by secret ballot described above shall be by mailed ballots, in accordance with procedures developed by the Elections Officer. 

( j)     To the extent that the Constitution of LIUNA is inconsistent with the procedures for election of members of the GEB as set forth above, such Constitution is hereby amended to read as provided in sub-paragraphs (a) through (i) of this paragraph. 

(k)     The Elections Officer shall conduct a study of procedure for filling interim vacancies on the GEB and to the extent that the procedure currently provided by the Constitution of LIUNA is inconsistent with the achievement of the objectives and purposes of this Consent Decree, shall recommend changes in such to the procedure to the GEB, which shall consider them in good faith. 

(l)     The Elections Officer shall have the right to distribute materials about the election to the LIUNA membership through The Laborer or other similar publication. 

(m)     The Elections Officer may supervise the delegate selection process at any LIUNA local union or district council in any manner he sees fit. 

(n)     The Elections Officer shall supervise the balloting process and certify to the Court the results of the elections as promptly as possible after the balloting. 

(o)     The Elections Officer shall have the authority to resolve those disputes pertaining to the integrity of the 1996 international election for the purposes of securing a free, fair and honest election. Thereafter, the Elections Officer may have such dispute resolution authority only upon the Court's determination that such authority is required to achieve the purposes of this Consent Decree. The burden of persuasion shall be upon the party seeking to continue such dispute resolution authority of the Elections Officer.

47.     Staff: The Elections Officer shall have the authority to employ such personnel as are reasonably necessary to assist in the proper discharge of the dunes imposed by this Consent Decree. To the extent that authority under this Consent Decree is granted to the E actions Of ricer, that authority is also delegated to personnel hired or retained by the Elections Officer to carry out his mandate under this decree.

48.     Term: The term of the Elections Officer shall continue until the Court determines that the presence of an Elections Officer is no longer necessary to achieve the purposes of this decree. In any event, the term of the Elections Officer shall be no less than three years from entry of this consent decree. The burden of persuasion shall be on the party seeking to discontinue the term of the Elections Officer.

Amendments to the LIUNA Constitutions

49.     The constitutions of LIUNA and its affiliated entities, shall be deemed, and hereby are, amended to incorporate and conform with all of the terms set forth in this Consent Decree. By no later than the conclusion of the LIUNA convention to be held in 1996 LIUNA shall have formally amended the LIUNA constitutions to incorporate and conform with all of the terms, including the grounds set forth for the imposition of discipline, set forth in this Consent Decree by presenting such terms to the delegates for a vote.

50.     In addition to the amendments to the LIUNA constitutions deemed necessary by this decree, the parties have agreed that each of the three LIUNA constitutions shall be amended to provide that any officer, agent, representative or employee of LIUNA or any of its subordinate regional offices, district councils, local unions or other subordinate entities who is named as a defendant in an indictment or other charging document accusing him of a felony violation of the laws of the United States, or any violation of any state or federal law relating to the conduct of the affairs of a labor organization or employee benefit plan, shall be placed on temporary leave of absence during the pendency of the matter and an investigation shall be undertaken to determine if discipline should be imposed.

The United States

51.     The United States has the right to intervene in any matter or to appeal any decision arising out of this Consent Decree The United States, in its discretion, may choose to assist the GEB Attorney, and the court authorized officers in the performance of their duties. The United States may appeal decisions of the GEB Attorney, the investigations Officer, or the Elections Officer to the Independent Monitor. The United States may appeal decisions of the Independent Monitor to the Court. The United States may, if requested, also agree to represent any party or entity before this Court concerning any matter arising out of the subject of this decree.

Miscellaneous Provisions

52.     Compensation and Expenses: The compensation and expenses of the GEB Attorney, independent Monitor, Investigations Officer, and the Elections Officer, and of all persons hired under their authority, shall be paid by LIUNA. All costs associated with the activities of these officials, and of all persons hired under their authority, shall be paid by LIUNA. To effectuate this provision, LIUNA shall deposit $150,000.00 with the Independent Monitor within five days after the entry of this Consent Decree and shall maintain that amount on deposit as necessary thereafter. The Court shall review the amount of the deposit within 90 days of the entry of this Consent Decree. The independent Monitor will thereafter be responsible for allocating payments to all persons entitled to compensation and expenses under this provision. On a quarterly basis, the Independent Monitor and the Elections Officer shall file with the Court, and serve on the United States and on counsel for the GEB, an accounting, including an itemized bill with supporting material, for all such expenditures. LIUNA shall have he right to challenge to the Court any fees or expenses that are unreasonable. If the Court determines that a pattern of unreasonable challenges to expenses has developed, the Court may limit LIUNA's right to challenge the expenditures.

53.     Costs and Fees: The United States shall not seek costs or attorneys' fees from any other party hereto, nor shall LIUNA seek costs or attorneys' fees from the United States.

54.     Indemnification: LIUNA shall purchase a policy of insurance and/or bonds in an appropriate amount to protect the GEB Attorney, the court authorized officers, and any persons hired by or acting on their behalf from personal liability for any of their actions on behalf of LIUNA, or pursuant to this Consent Decree. If such insurance is not available, or if the LIUNA GEB so elects, LIUNA shad Indemnify the court authorized officers, and any persons hired by or acting on their behalf from personal liability (and costs incurred to defend against any claim of liability) for any of their actions on behalf of LIUNA, or the court authorized officers taken pursuant to this Consent Decree. In addition, the court authorized officers, and any persons hired by or acting on their behalf, shall enjoy whatever immunity from personal liability may exist under the law for court officers.

55.     Future Practices: The parties intend the provisions set forth herein to govern the practices of LIUNA and its GEB in the areas affected by this Consent Decree, now and in the future. If the GEB wishes to make any constitutional change or change in the structure of the union, or the disciplinary or electoral practices of the union or the Job Referral Rules, the GEB shall give prior written notice to the Investigations Officer, the attorneys for the United States and to the Independent Monitor.

56.     Future Actions: Nothing in this Consent Decree shall preclude the Government, or any of its departments or agencies, from taking any appropriate action in regard to the defendant or any other person who is a signatory hereto in reliance on any federal law, including any criminal investigation or prosecution or civil action.

57.     Scope of Decree: This Consent Decree determines the rights of the parties hereto and concerns the affairs of LIUNA, its officers, employees, and members. Nothing, except as is specifically in this decree, shall be construed as creating any right, title or interest accruing to any third party, except the court authorized officers and any persons retained by any such officers to assist them in fulfilling their duties as described in this Consent Decree.

58.     Selection of Officers: The parties shall jointly select the individuals to be appointed by the Court to the position of the Independent Monitor, the Investigative Officer, and the Elections Officer. If the parties fail to reach agreement on selection of any one of these offices, the following procedure may be used to make the selection(s): 

(a)     Either party may nominate one candidate for each unfilled position; 

(b)     Within one week of either party nominating a candidate for an unfilled position, the other party may nominate a candidate for that position; 

(c)     Within Two weeks of a party having nominated a candidate for an unfilled position, an individual previously chosen by the parties shall make a selection between the two candidates nominated by the parties who shall be appointed by the court; and 

(d)     In the event that a selection has not been made within the time permitted by subparagraph (c), then the district court shall make the selection between the two candidates.

59.     Guarantee of Rights: Nothing herein shall be construed to diminish the right of every member in good standing, as guaranteed by the LMRDA, to be a candidate for union office, to be informed about financial and electoral matters, to express opinions on union affairs, to vote for candidates of choice, and otherwise participate in a democratic manner in the operations of LIUNA and its affiliated entities. Trusteeships of subordinate labor organizations shad be established and administered for the purposes specified in the LMRDA or this Consent Decree. If there is any provision of the LIUNA Constitution inconsistent with any provision of this Consent Decree, the terms of this Consent Decree shall govern and LIUNA waives any inconsistent provisions of the LIUNA Constitutions. With respect to any remedies or procedures set forth herein concerning disciplinary sanctions against individuals, supervision of subordinate labor organizations through trusteeships, or the conduct of any officer elections, the parties intend the remedies and procedures set forth herein to govern, notwithstanding any contrary provision of the LIUNA Constitutions or any statute.

60.     Non-Admission Clause: Nothing herein shah be construed as an admission by the defendant or any signatory hereto of any wrongdoing, or of the truth or validity of any of the claims or allegations contained in the complaint, or any other papers filed or submitted by the United States in this action.

61.     Notice of Decree: Upon the entry of this decree, written notices informing the union membership of the entry and scope of this decree will be sent to every local union and will be printed in first issue of The Laborer which is published after the date of the entry of this Consent Decree, or other similar publication. These notices will be issued by the GEB Attorney and by the United States Attorney for the Northern District of Illinois. These notices are to be posted in local union offices for a period of six months from the date of entry of this decree.

62.     Merger: This consent Decree constitutes a final written expression of all terms of this Decree and is complete and exclusive statement of those terms.

63.     Acknowledgment of Consultation with Counsel: The members of the GEB have read this Consent Decree and have consulted with their respective counsel before consenting to and signing this Consent Decree. 

Note: Exhibits are not included here.

United States District Judge

Dated:

CONSENTED AND AGREED TO:
DATE:

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