Association for Union Democracy
500 State Street
Brooklyn NY 11217
phone: 718 855-6650
fax: 718 855-6799
aud@igc.org
www.uniondemocracy.com
The Association for Union Democracy is a national pro-union non-profit that promotes the principles and practices of internal union democracy in the North American labor movement.
Re: Laborers Union
From: Herman Benson, Editor
Union Democracy Review
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To help you in replying, try
to answer these questions:
Does the contract require employers
to hire any workers at all out of the a union hiring hall?
If not, has your local ever
tried to win union hiring rights in its collective bargaining
contracts?
Even if employers are not required
to hire out of the hall, does your
local refer any members out
to jobs? (That would be a referral hall.)
If you, yourself, must look
for work without union help, does the union send others out to
work upon employers' request.
Are you familiar with the hiring
hall rules adopted by LIUNA, rules which locals are required to
enforce? Have you ever seen a copy of these rules?
Are the rules posted in your
union hall? Have you ever actually received a copy for yourself?
Does your union maintain a list
of workers looking for job referrals?
Is that list and any referrals
made from that list open to you for public inspection? Do your
union officers make job referrals by phone out of their homes?
In general, what has been your
own experience in looking for work through the union? Does it
operate a job referral system in an fair and impartial manner
without favoritism or discrimination?
Have you ever made a complaint
about unfair hiring to any of the LIUNA monitors? Was your complaint
acknowledged? How was it finally settled? Were you satisfied?
Name and address (Helpful but
not required)
_____________________________________
_____________________________________
City___________________________
State ______Zip __________________
Local No. (Helpful but not required)------------------------------
Mail to:
Association for Union Democracy
published by the Association for Union Democracy
According to the Bureau of National Affairs,
Laborers' President Arthur Coia, threatened with an indictment
by the Department of Justice, would resign and avoid any future
relations with the union. In return, he would plead guilty to
a felony but avoid a prison sentence. But Coia denies the report.
However, whether Coia goes or stays, the plot has thickened; there
is now a problem or two.
The latest threat to Coia stems from a complex
transaction: his purchase and resale of a Ferrari in 1991 for
$450,000. At internal union hearings in 1998, it was charged that
although he bought and owned the car, the certificate of ownership
was registered in the name of the Viking Leasing Company allowing
him to avoid, or evade, the payment of $77,750 in luxury and sales
taxes. Additional advantage: in selling the car, it would bring
a better price as a first resale transaction, not from a private
person but a dealer.
A nice deal, especially since only the government
would lose money; and who among us doesn't yearn to avoid,even
evade,taxes. The complexity was that the owner of Viking was an
old friend of Coia's; and for years the company enjoyed a lucrative
car-leasing contract with the union, thanks to Coia. Now and then,
a competing leasing firm would submit a lower bid, sometimes substantially
lower; Coia would inform Viking which would simply reduce its
own bid and keep the contract.
After extended hearings, Peter Vaira, the
LIUNA independent hearing officer, found Coia guilty of violating
the union's ethical practices codes. The penalty: a $100,000 fine,
but Coia was allowed to remain in office. (Ironically, in the
end, Coia lost money on the deal. He sold the vehicle for $380,000,
a $70,000 loss.)
Years before, in 1995, the Department of
Justice had threatened to sue the union under the Racketeer Influenced
and Corrupt Organizations Act; but it held back after the union
agreed to a self-policing program to root out corruption. The
hearings of the Viking charges against Coia, and other charges,
proceeded in accordance with that consent agreement. If the government
is not satisfied with progress under that agreement, it can impose
a stricter monitorship, even a federal trusteeship over the union.
When Vaira's decision came down in March,
he dismissed charges that Coia had failed to act aggressively
against organized crime in LIUNA. Although he found Coia guilty
on the Viking count, the Department of Justice announced that
it was "disappointed"; it obviously felt the penalty
was too lenient. Now whether Coia does or does not resign, the
BNA report makes clearer how "disappointed" the DOJ
really is. Obviously it wants Coia out. If he does resign, who
will replace him and how? Under "normal" conditions,
a replacement would be selected by the union's general executive
board [GEB]. Under Coia, for whatever reason, the union yielded
to government pressure and tolerated certain reforms, some substantial.
Would a successor chosen by the GEB be more
likely or less to go along? No one really knows.
If he refuses to resign,and even if he does,it
has already become clear that the DOJ has become so deeply dissatisfied
with the results of the self-policing process that it must, if
it is serious, propose something new, something it feels is more
effective.
And so the government faces some tricky problems.
Meanwhile, from the standpoint of long-term union reform, the
need is the emergence of a new decent leadership, especially in
the locals, which requires time. At this point it is not clear
whether Coia's leaving or remaining will make any difference.
In a roundabout way this leads back to the
critical issue in this union, as in all construction trades. The
key to democracy and reform is a fair job referral system, an
end to fear and favoritism. When independent-minded critics can
be starved out, democracy withers.
Under government pressure, the union adopted
model hiring hall rules. But there is no evidence that they are
enforced in practice. It is obvious that hundreds of complaints
of unfair referral practices have been filed with the LIUNA monitors.
In all these years, now close to five years of the consent agreement,
there has not been even a report on the disposition of these complaints.
Go Coia or come Coia, that issue remains,
sharp as ever.
I am writing to correct the
destructive and misleading misstatements in your article "If
Coia goes, what comes next?" published in Union Democracy
Review of November 30,1999, which speculates about what will happen
to the internal reforms that the Laborers' Union has adopted if
Mr. Coia were to resign.
While you are certainly free
to speculate about the effect of a change in leadership the basis
for your speculation is fundamentally misplaced. Mr. Coia deserves
substantial credit for the support he lent to the adoption of
the internal reforms, but the process of reform is institutional
not personal.
The Ethics and Disciplinary
Procedure and the Ethical Practices Code were adopted by the LIUNA
General Executive Board and the independent officers - selected
with the approval of the Department of Justice - derive their
authority from these constitutional provisions, not from the GEB,
the General President or any individual. Just as important, every
current member of the General Executive Board has expressed his
continuing support for the process of ridding LIUNA of organized
crime influence.
The fact is that since the
agreement between United States and LIUNA was adopted in February
1995, every one of the principal government officials responsible
for approving and overseeing the agreement - the Assistant Attorney
General for the Criminal Division, the Chief of the Organized
Crime and Racketeering Section and the United States Attorney
for the Northern District of Illinois - has been replaced. But
that dramatic change in leadership on the government side has
not in any way undermined the commitment of the Department of
Justice to support LIUNA's reform efforts. A change in leadership
at LIUNA is equally unlikely to influence the progress the union
has made under government scrutiny.
More specifically, I take issue
with two statements in your article which are simply false. First,
in describing the relationship between LIUNA and the DOJ, you
observe that "it has already become clear that the DOJ has
become so deeply dissatisfied with the results of the self-policing
process that it must, if it is serious, propose something new...."
While this fact is apparently
"clear," it is not at all "clear" what the
basis is. While the DOJ did criticize the decision of the Independent
Hearing Officer in the Coia case, it has consistently supported
the reform process as a whole and publicly applauded its successes
in attacking organized crime corruption across the country. The
principal Assistant United States Attorney responsible for reviewing
LIUNA's efforts was quoted in another BNA article-that you do
not cite-characterizing the work of the GEB attorney as "independent,
honorable, and aggressive."
The government has also voted
with its feet in supporting LIUNA's self-reform efforts. Most
recently, in Chicago, for the first time, the government joined
with a union as a co-plaintiff in a RICO action attacking organized
crime corruption of a labor union. That suit, brought jointly
by LIUNA and the Department of Justice against Laborers' Chicago
district Council -which the reform process successfully placed
under monitorship in 1998 - was immediately settled thorough a
consent decree that expressly incorporated the standards and procedures
of LIUNA's internal reform process and contemplated the appointment
of the GEB Attorney and Inspector General as court officers.
Quite simply, the government
has expressed no signs of dissatisfaction, must less deep dissatisfaction,
with LIUNA's reform efforts and, by word and deed, has endorsed
its evident successes. As well it should. By any objective measure,
the LIUNA internal reform process has been a success in ridding
the union of organized crime influence and laying the foundation
for democracy. It has worked at lest as well and just as quickly
as more costly and intrusive forms of government intervention.
Of the individuals who were
identified by the government in 1994 in its draft RICO complaint
as members of associates of organized crime, not one now holds
a position of responsibility or trust at any level of the union
or any fund affiliated with LIUNA.Dozens of other individuals
have been removed from office, expelled from the union or forced
to resign under pressure. More than two dozen LIUNA affiliates,
representing more than 68,000 members, including mob dominated
locals and district councils in New York, Buffalo, Chicago, and
New Jersey, have been placed under supervision or trusteeship,
their affairs conducted by officials selected with the approval
of the DOJ.
Second, you also declare that
"there is no evidence [LIUNA's hiring hall rules] are enforced
in practice....In all these years, now close to five years of
the consent agreement there has no been even a report on the disposition
of these complaints." In fact, we share with AUD an understanding
of the importance of fair, objective, and honestly applied hiring
hall rules to the growth of democracy within LIUNA.
In the last year, the GEB attorney
has overseen on site reviews of every LIUNA local operating a
hiring hall to evaluate their compliance with the amended rules.
In those locals where deficiencies were identified, regular in-person
follow up visits have been conducted to assure that the locals
adopted the necessary changes. We have not hesitated to use the
disciplinary process to enforce compliance. In the last three
months alone, five officials were removed from positions of responsibility
because of a persistent disregard for their duty to implement
the model rules.
Significantly, every aspect
of this process-including the basis for and disposition of every
individual disciplinary case-has been fully reported in the Laborer
magazine, which is sent to every union member. Every individual
who raises a complaint of hiring hall irregularities receives
a written response to his or her complaint, regardless of whether
the complaint results in disciplinary action. Your statement that
there has been no action in response to hiring hall complaints
and no report of the results is just plain false.
AUD serves as an important
source of information for union members on issues of critical
importance to the good of union reform. The LIUNA reform process,
in particular, raises legitimate issues worthy of your attention
and of public discussion. But you owe your readers the facts,
and, in this instance you have fallen short.
Yours sincerely, Robert D.
Luskin
Have you been able to get a
copy of your collective bargaining contract? (Send us a copy,
if you can.)
500 State Street
Brooklyn, NY 11217
November 30, 1999
No. 127
If Coia goes, what comes
next?