TERENCE M. O'SULLIVAN
General President

CARL E. BOOKER
General Secretary-Treasurer

Vice Presidents:

MASON M. WARREN
VERE 0. HAYNES
CHUCK BARNES
GEORGE R. GUDGER
MIKE QUEVEDO,JR.
ARMAND F. SABIJONI
Assistant to the
General President
TERRENCE M. HEALY
RAYMOND M. POCINO
EDWARD M. SMITH
JAMES C. HALE
JOSEPH S. MANCINELLI
STEVE HAMMOND
JOSEPH J. LICASTRO
WILLIAM H. QUINN

MICHAEL S. BEARSE
General Counsel

HEADQUARTERS:

905-16th Street, NW
Washington, D.C. 20006-1765
(202) 737-8320
Fax: (202) 737-2754

Mr. Alex Corns
Hod Carriers Local 36
6229-A Mission Street
Daly City, CA 94014

Dear Sir and Brother:

As you know, your communication of February 4, 2000, to General Secretary-Treasurer Booker regarding the emeritus status of Arthur A. Coia has been forwarded to me for reply.

Briefly, the Board's action in awarding emeritus status to General President Coia is intended to recognize his many contributions to LIUNA and our members, including but not limited to his leadership in encouraging training and apprenticeship programs, organizing, labor-management cooperation, workers' health and safety programs, and more recently, in leading our unique internal reform programs instituted in 1995 and recognized by the Department of Justice as successful and effective. Indeed, the U.S. Attorney's office in Boston as a matter of record has acknowledged former President Coia's essential role in the establishment and support for these programs. Prior to the Board's action to grant emeritus status, both the Department of Justice and the General Executive Board Attorney were so advised, and the Department of Justice expressly approved his award of "emeritus" status as part of his recent Plea Agreement. Further, the General Executive Board has been informed of the particulars of that Plea Agreement.

Further, while it may be your opinion that "Coia is a crook who abused his power and trust as a union leader and lawyer for personal gain," the record is otherwise. Indeed, as you certainly know, Mr. Coia was fully and completely exonerated on all charges that he had improper associations with organized crime figures. Moreover, it was expressly found by the Independent Hearings Officer that while his actions in purchasing the Ferrari F40 constituted a conflict of interest warranting a significant fine, there was no financial loss or detriment to LIUNA or our members. The subsequent plea agreement in Boston likewise did not involve conduct resulting in any economic detriment to the Union.

As for Mr. Coia's unique contributions in developing LIUNA's successful internal reform programs, let me quote from a letter of January 19, from U.S. Attorney Donald Stern confirming that Mr. Coia had provided substantial assistance to the United States, as follows:

Mr. Alex Corns
March 2, 2000

Page 2

Mr. Coia has been supportive of the reform process from the beginning, both overall and in specific areas. The General Executive Board Attorney of LIUNA, who has been responsible for developing cases and bringing charges in the reform process, has determined that. Coia's assistance in establishing the process, encouraging support for the process within the Union, and assisting in specific cases has been instrumental and substantive.

In the past, the General Executive Board has granted emeritus status to officers who, over the years, made especially significant contributions to the Union. The authority for such action is expressly provided in Article VIII 2(h) of the International Union Constitution, which states that:

It [the General Executive Board] may for good cause, illness or disability, make such financial provision for an officer or employee of the International Union as it deems is warranted by the length and character of the service rendered to the International Union by the individual.

Mr. Coia's "emeritus" status does not cost the Union $250,000, as you state. Rather, as in these prior cases, the cost is limited to the difference between Mr. Coia's $250,000 salary as General President and his earned pension. That difference will total approximately $84,000 per year in this case.

For your information, your letter is being forwarded to the General Executive Board Attorney for such further response or consideration as he may deem warranted.

Very truly yours,

MICHAEL S. BEARSE
General Counsel

MSB/am

cc:

Terence M. O'Sullivan, General President
Carl E. Booker, General Secretary-Treasurer
General Executive Board
Robert Luskin, Esq.
W. Douglas Gow, Inspector General