Amendments, Rules and Policies

Revised 4/96



TABLE OF CONTENTS

Summmary................................................2

Ethical Practices Code.................................15

LIUNA Ethics and Disciplinary Procedure................21

Rules for Hearing Procedure............................37

Rules for Appeals......................................44

Summary of LIUNA Agreement.............................50

Agreement..............................................55

Consent Decree.........................................58

Job Referral Rules.....................................93

General Executive Board Policies.......................99

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SUMMARY

On January 18, 1995, the General Executive Board of the Laborers' International Union of North America (LIUNA) amended its three Constitutions (the International Union Constitution, the Uniform District Council Constitution, and the Uniform Local Constitution) to implement a new Ethic and Disciplinary Procdure. It has two parts, an Ethical Practices Code, which defines basic standards of conduct applicable to all members and employees of LIUNA, and the Ethics and Disciplinary Procedure, which defines a new structure to ensure that potential violations are investigated and tried by neutral and independent officers. Together, these amendments to the Constitutions will promote honesty, integrity and fairness at every level of the Union.

As part of this reform process, the two new judicial officers, the Independent Hearing Officer and the Appellate Officer, have promulgated rules governing proceedings before them. To assist in carrying out the reform process, the General Executive Board has adopted five new policies, copies of which are also included. Four of these policies require review by the LIUNA Inspector General of the appointment of trustees or other representatives to trust funds, certain contracts or expenditures of subordinate bodies, the imposition of trusteeships, and the gift or donation of union property. The fifth policy requires the reporting of arrests or indictments for felony violations or for violations of any laws relating to labor organizations. Finally, to ensure that each member has fair and equal access to job referrals, the General Executive Board has adopted Uniform Job

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Referral Procedures that establish basic standards for referrals and ensure access to job referral information.

Since their adoption by the General Executive Board, the Ethics and Disciplinary Procedure and the Ethical Practices Code have been considered by two separate Federal courts, which both held unequivocally that the GEB acted properly and in the interests of LIUNA members in adopting these reforms. Together, these amendments, rules, and policies lay a solid foundation for continued reform.

Part One:

The Ethical Practices Code

The Ethical Practices Code deals with five areas of activity:

1. Democratic Practices.

The Code recognizes every member's right to participate fully in Union affairs. It reaffirms their democratic rights to freedom of speech and participation in the election process. It also cautions that every LIUNA member must respect the rights of every other member, and that no member has the right to undermine the Union or subvert its essential policies. Among its provisions: regular meetings must be conducted in an atmosphere of fairness; Union rules must be applied uniformly without favoritism or discrimination; and corruption of any kind is banned.

2. Financial Practices.

These will be the same as other well-run institutions and will utilize competitive bidding for major contracts. There will be no contracts or investments that

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result in financial advantage to any officer or representative of the Union, and no Union subsidiary shall make loans to officers, representatives or employees or their families for private purposes.

3. Health, Welfare and Retirement Funds.

The responsibilities and obligations of Union officials who are also benefit fund trustees have been defined to prohibit the payment of any salaries or for serving as a trustee (other than reimbursement of expenses), as well as any financial connection between a benefit fund and any vendor or service provider who does business with a benefit fund. The code also requires quires union trustees who request or, if necessary, demand regular audits of their funds, and to file these audit reports with the International Union and make them available to the fund's beneficiaries at least once a year.

4. Business and Financial Activities of Union Officials.

The Code prohibits actual and potential conflicts of interest. The restriction includes keeping confidential all mailing lists of union members; prohibiting any personal financial interest that conflicts with Union duties; and prohibiting any financial interest by a union official in any business with which the Union bargains collectively. Any compensation to a union official, whether in the form of a kickback, valuable gift, lavish entertainment or anything of substantial value, made by an employer with which the Union bargains, or by a vendor or service provider with which the Union does business, is prohibited.

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5. Barred Conduct.

Four types of conduct are clearly prohibited:

(a) committing any act of racketeering, which includes crimes such as bribery, extortion, fraud, accepting kickbacks, bookmaking and other felonies [a complete list of these crimes appears in Appendix A to the Ethics and Disciplinary Procedure];

(b) knowingly associating with any member or associates an organized crime family or syndicate.

"Knowingly associate" means that the individual knows that the other person is a member or associate of organized crime; that the association relates directly or indirecetly to Union affairs; and that the association is more then a casual relationship. [There are also certain exceptions to the definition "knowingly associate" that are, described in Appendix B to the Ethics and Disciplinary Procedure. For example, it is not considered a violation of the Disciplinary Procedure if an individual is merely related by blood or marriage to a person considered a member or associate of organized crime as long as the family relationship does not affect the Union];

(c) knowingly allowing any organized crime member or associate to influence an officer of the Union; and

(d) interfering in anyway with the operation of the Disciplinary Procedure and the persons responsible for its administration.

Part Two:

The Ethics and Disciplinary Procedure

Violations of the Ethical Practices Code are subject to the full disciplinary process set forth in the Ethics and

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Disciplinary Procedure.

The Ethics and Disciplinary Procedure calls for the creation of four new independent, supervisory positions:

1. General Executive Board Attorney.

The GEB Attorney's function is to investigate and prosecute violations of the Ethics Code. The GEB Attorney will also review the imposition of trusteeships. recommend discipline and present cases to the Independent Hearings Officer. The GEB Attorney may bring charges against any union officer, representative or member for any illegal or unethical conduct, regardless of when the conduct occurred, but only if the conduct has a present effect on the person's membership or current service to the Union.

Anyone, including a Union officer, representative, member, contractor or vendor or law enforcement organization may refer a complaint against a Union official or member by filing it with the GEB Attorney. The GEB Attorney or the Inspector General will investigate it and decide whether charges should be brought. The GEB Attorney has the right to take sworn statement from Union personnel and impose discipline if anyone refuses to appear and allow his/her testimony to be taken, or refuses to testify on the grounds of self-incrimination.

Finally, the GEB Attorney will undertake an "Opertions Study" to assist the General Executive Board in implementing further policies that will continue to prevent corruption. This study will include, among other areas, reviewing the provisions of the three constitutions, internal operating policies and field procedures. The GEB Attorney is an attorney in private prac-

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tice who serves for a five-year term. At the end of his term, his functions will be by the Inspector General.

2. Inspector General.

This position is an in-house, full-time permanent employee of the International Union, whose office is located at Headquarters. The Inspector General's function is primarily to investigate disciplinary violations, and also to handle disciplinary prosecutions that are delegated by the GEB Attorney, including defending the imposition of certain trusteeships or presenting cases that do not involve what has been described above as "barred conduct."

3. Independent Hearing Officer.

This position is a permanent part-time position to be filled by an outside person who is either a former judge, labor department official or otherwise highly qualified individual. The Independent Hearing Officer will act as a neutral judge or arbitrator in all disciplinary hearings, trusteeships, election protests, and other matters referred for hearing by the GEB Attorney.

4. Appellate Officer.

This position's function is to hear appeals from decisions of the Independent Hearing Officer as well as appeals from Local Union and District Council Trial Boards. Like the Independent Hearing Officer, the Appelate Officer will be a permanent, part-time position filled by an outside person who is either a former judge, labor department official, or otherwise a highly qualified individual.

The Disicplinary Procedure also describes the basic

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rules for the conduct of hearings, requiring them to be fair and efficient. These rules are supplemented by the Hearing Procedures described Part Three.

Finally, the Disciplinary Procedure confers two other important powers on the General President and the General Executive Board. The first is that if the General President believes that there is an emergency that threatens the welfare or preservation of the Union, he may suspend, without pay, any union official, appointed or elected, at any level of the organization. If the General President takes this action, the GEB Attorney is required to bring formal charges against the official within ten days of the suspension, and the official is then entitled to hearing according to the Disciplinary Procedure.

The second provision requires that whenever the General Executive Board or the General President receives notice that any officer, agent, representative or employee of any Union entity has been indicted for a felony or charged with any crime relating to the affairs of a labor organization or employee benefit plan, the General Executive Board or the General President must place the accused person on a temporary leave of absence with pay. The GEB Attorney must then institute a disciplinary hearing before the Independent Hearing Officer based on the indictment or criminal charges.

Rules for Hearings before the Independent Hearing Officer

All hearings procedures begin with the filing of specific written charges, and the person charged is notified in writing of the accusations. The accused has at least

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thirty days to prepare a defense, and is entitled to be represented by in attorney or other person at the hearing. If the accused does not believe that the charges are specific enough, he or she may file a motion for more specific charges and may request discovery of evidence to be used in the hearing.

The procedures for those hearings will be similar to those that apply in labor arbitrations proceedings, including the use of hearsay or affidavit evidence-but only if the Independent Hearing Officer finds it reliable. All testimony will be under oath, and all witnesses will be kept out of the hearing room, except when they are called to testify. If a non-LIUNA member is willing to provide relevant testimony but unable to attend the hearing, the person can provide a deposition in place of live, in-person testimony.

In order to maintain confidentiality, all papers in any disciplinary case, including the charges, motions or other pleadings, documents used as evidence, and the decision of the hearing officer, will be filed only with the Independent Hearing Officer and the parties or their lawyers or other representatives. When a written decision is issued by the Independent Hearing Officer, the entire case file will he transmitted to LIUNA Headquarters where it will be received and entered into a formal record called a docket.

If there is an appeal from the decision of the Independent Hearing Officer, the file will immediately be sent to the Appelatte Officer and not returned to Headquarters until a final decision by the Appellate Officer is made. In any case where there is a final decision impos-

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ing discipline, the file will be open to inspection by any member of the Union. In any case where the final decision does not impose discipline, the file will be returned to the Independent Hearing Officer and not be available for inspection by anyone.

In all hearings, the burden of proof will be on the GEB Attorney to convince the Independent Hearing Office that there is just cause to impose discipline.

Finally, any hearing will be conducted at a location chosen by the Independent Hearing Officer with an effort to make the place convenient to all parties.

Rules of Procedure for Appeals to

the Appellate Officer

All decisions concerning disciplinary matters by the Independent Hearing Officer are subject to review by the Appellate Officer. An appeal may be commenced within 10 days of any final decision by the IHO by filing a notice of appeal with the Appellate Officer. The Appellate Officer will thereafter set a briefing schedule outlining when any briefs are due and the page limits applicable to each party's briefs.

Each party to an appeal has the opportunity to state whether or not oral argument is requested. The Appellate Officer may also decide to hold oral argument on his own motion and will decide requests for oral argument by the parties. The Appellate Office will make an effort to hold oral arguments at a location convenient to the parties. If the Appellate Officer concludes that additional fact-finding is required, he may remand any matter to the IHO for further investigation.

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General Executive Board Policies

Pursuant to its constitutional authority, and in order to accomplish the purposes of the Ethics and Disciplinary Procedure, the GEB has adopted five additional policies designed to guarantee the success of the reform process. These include:

GEB Policy on Appointment of Officers, Trustees and Benefit Fund Representatives. This policy requires that the names of all persons selected by LIUNA or any local or district council to hold the positions of Regional Manager, Assistant Regional Manager, International Representative, Special International Representative, Trustee or Supervisor over any subordinate body, or labor trustees of any pension plan, welfare plan or other trust fund must be submitted to the Inspector General for his review. If the IG concludes that the appointment is inconsistent with the objectives and purposes of the Ethical Practices Code or the Ethics and Disciplinary Procedure, he may disapprove the appointment.

GEB Policy on Contract Procedures. This policy requires contracts in excess of $150,000 to be entered into by LIUNA or any of its subordinate bodies must be submitted to the Inspector General for his review. If he concludes that entry into the contact is inconsistent with the objectives and purposes of the Ethical Practices Code or the Ethics and Disciplinary Procedure he may disapprove the contract.

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GEB Policy on Gifts or Donations of Union Assets or Property. This policy requires that any gift or donation of union property of more than $5,000 or any gifts or donations in any twelve month period totaling more than $10,000 must be reported to the Inspector General. He may disapprove any such gifts if he concludes that such a gift or donation is inconsistent with the objectives and purposes of the Ethical Practices Code or the Ethics and Disciplinary Procedure.

GEB Policy on Actions Affecting Subordinate Bodies. All actions by the GEB or the General President to suspend or revoke charter or the consolidate or amalgamate subordinate bodies must be submitted to the Inspector General. He may disapprove any such action if he concludes that it is inconsistent with the objectives and purposes of the Ethical Practices Code or the Ethics and Disciplinary Procedure.

GEB Policy on Reporting Felony Arrests and Indictments. Any member of the GEB, any officer of subordinate body, and all members serving as trustees of any employee benefit plan, fund, or trust must notify the Inspector General in writing within five days whenever they learn that any member, employee, officer, labor trustee is arrested, indicted, or otherwise charged with any felony or with any law relating to the affairs of a labor organization or benefit plan.

Job referral Rules. In April, 1995, the General Executive Board adopted Job Referral Rules that are designed to ensure that every member of the Union is

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treated fairly in job referrals. The rules require fair and equal treatment in making job referrals and ensure that complete and accurate information about job referrals is available to every union member. At this time, the rules apply only to those locals that operate an exclusive hiring hall. The Rules also do not apply if a term of the rules conflict with an express provision of a collective bargaining agreement, or, in Canada, if a term of the Rules conflicts with a requirement of provincial law. In all other cases, locals must follow the Rules in registering applicants on an out-of-work list, referring applicants to jobs, maintaining records, and making those records available for inspection.

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February 15, 1995

To All Members, Officers, Representatives, Employees and Affiliates of the Laborers' International Union of North America, and Trustees and Employees of LIUNA Benefit Funds:

On January 18, 1995, the General executive Board of the Laborers' International Union of North America adopted the LIUNA Ethics and Disciplinary Procedure.

The Disciplinary Procedure provided for the drafting and implementation of an Ethical Practices Code modeled after that adopted by the United Auto Workers in 1992.

The General Executive Board delegated to me the responsibility of drafting the Ethical Practices Code for LIUNA, and that effort has now been completed.

Pursuant to the authorization delegated to me under Paragraph (1) of the LIUNA ETHICS AND DISCIPLINARY PROCEDURE, adopted by the General Executive Board January 18, 1995, I hereby promulgate the attached Ethical Practices Code, which becomes a part of the LIUNA Ethics and Disciplinary Procedure.

Fraternally,

ARTHUR A. COIA

General President

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ETHICAL PRACTICES CODE

The following Ethical Practices shall apply to the International Union, all District Councils, every Local Union, all subordinate bodies, and to every employee, member and officer thereof, and to every union trustee and employee of any benefit fund or political action committee.

Democratic Practices

LIUNA's traditions, its Constitution, and federal law all protect the democratic rights of LIUNA's members to participate fully, without fear, abuse, or intimidation in all Union affairs. To that end, the following principles shall be respected.

Financial Practices

Union funds are held in trust for the benefit of the membership. The membership is entitled to assurance that Union funds are not dissipated and are spent for proper purposes. The membership is also entitled to be reasonably informed as to how Union funds are invested or used.

Health, Welfare and Retirement Funds

Business and Financial Activities of Union Officials

Any person who represents LIUNA and its members, whether elected or appointed, has a sacred trust to serve the best interests of the members and their families. Therefore, every officer and representative must avoid any outside transaction which creates an actual or potential conflict of interest. The special fiduciary nature of Union office requires the highest loyalty to the duties of the office.

Barred Conduct

No Union officer, representative or employee, and no union trustee of any benefit fund, shall engage in "barred conduct."

"Barred conduct" is defined to include:

a) an individual knew that the person with whom he or she was associating was a member or associate of the LCN;
b) the association related directly or indirectly to the affairs of the Union; and
c) the association was more than fleeting or casual.

The definition of "knowingly associate" in this Code also provides for, and incorporates by reference, certain additional exceptions as they appear and are defined in the Consent Decree entered in the case of United States v. District Council of New York and Vicinity of the United Brotherhood of Carpenters and Joiners of America, 90 Civ. 5722 [set forth in Appendix B to the LIUNA Ethics and Disciplinary Procedure].

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WHEREAS, by the imposition of certain trusteeships, internal union discipline, and other techniques, the General Executive Board and the General President have reduced corruption from certain entities within the Union, but have not eliminated all corruption from every entity within the Union; and


WHEREAS, it is in the best interests of this organization to adopt an Ethics Code and a new system of disciplinary procedures designed to rid this Union of any corrupting influences


NOW THEREFORE, the General Executive Board hereby adopts the following disciplinary procedure:


1. Ethical Practices Code

General President and General Executive Board are preparing an Ethical Practices Code for the Union, modeled after the Code adopted by the United Automobile Aerospace and Agricultural Implement Workers of America (hereinafter, the "UAW") at the UAW's Thirtieth Constitutional Convention in June 1992, which imposes or codifies standards of conduct for all financial practices relating to the handling of union, benefit and pension funds, the award and administration of contracts, conflicts of interest and similar issues. The General President is hereby authorized to draft and implement an Ethical Practices Code consistent herewith.

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In addition to the Ethical Practices Code to be adopted by LIUNA, this Disciplinary Procedure also prohibits all current and future officers, agents, representatives, employees, and members of the Union from engaging in "barred conduct." "Barred conduct" is defined to include: a) committing any act of racketeering, as defined in 18 U.S.C. 1961(1); b) knowingly associating with any member or associate of the organized crime syndicate known as La Cosa Nostra (LCN); c) knowingly permitting any member or associate of the LCN to exercise control or influence in the conduct of the affairs of the Union; or d) obstructing or interfering with the LIUNA Inspector General, the GEB Attorney, or the Independent Hearing Officer, as those parties are discussed below. For purposes of this Disciplinary Procedure and the Ethical Practices Code, the term "knowingly associate" shall mean that: a) an individual knew that the person with whom he or she was associating was a member or associate of the LCN, b) the association related directly or indirectly to the affairs of the Union; and c) the association was more than fleeting or casual. The definition of "knowingly associate" in the Ethical Practices Code also provides for, and incorporates by reference, certain additional exceptions as they appear and are defined in the Consent Decree entered in the case of United States v. District Council of New York City and Vicinity of The United Brotherhood of Carpenters and Joiners of America, 90 Civ. 5722.

The General Executive Board, pursuant to the powers provided for in Article VIII, Section 2(b) of the Constitution of the Laborers' International Union of North America (hereinafter "the LIUNA Constitu-

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tion) amends the LIUNA Constitution to incorporate fully the Ethical Practices Code


2. New Positions

The General Executive Board hereby creates the following positions: the GEB Attorney, the LIUNA Inspector General, and the Independent Hearing Officer. LIUNA shall purchase a policy of insurance and/or bonds, in an appropriate amount, to protect each person holding one of these new positions, and any persons hired by or acting on his behalf, from personal liability for any of the actions under this Disciplinary Procedure. If such insurance is not available, or if the General Executive Board so elects, LIUNA shall indemnify these persons, 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 under this Disciplinary Procedure


3. The GEB Attorney

LIUNA shall engage the services of an outside attorney, highly regarded for his or her integrity, intellect, and diligence, to serve as the GEB Attorney.

For the purpose of fulfilling the mandate of the GEB and General President, all of the investigative and disciplinary powers described in the LIUNA Constitution, the Uniform Local Union Constitution, and the Uniform District Council Constitution (hereinafter the three constitutions are referred to together as "The Constitution") are delegated to the GEB Attorney.

The GEB Attorney shall have the authority and duty to investigate and prosecute charges (or otherwise im-

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pose discipline, as provided for by The Constitution) against any officer, agent, representative, employee, or member of the Union for engaging in barred conduct. The GEB Attorney also shall have the authority to investigate and prosecute charges (or otherwise impose discipline, as provided for by The Constitution) against any officer, agent, representative, employee, or member of the Union for committing a felony violation under federal or state law; for violating any federal or state law relating to the conduct of the affairs of a labor organization or employee benefit or pension plan; or, for violating The Constitution, the Ethical Practices Code, or any other disciplinary rule, regulation, practice or procedure adopted by the General Executive Board.

The GEB Attorney shall have the same authority, including the right to impose and review the imposition of trusteeships, over any district council, local, or other entity within the Union. All such disciplinary actions initiated by the GEB Attorney shall be heard by the Independent Hearing Officer, in accordance with the terms of Paragraph 5 below.

The GEB Attorney may recommend discipline, including, but not limited to, suspension, removal from Union office, permanent expulsion from the Union, imposition of a trusteeship over a district council, local union, or other entity of the Union, or the revocation of the charter of a district council, local union, or other entity of the Union.

As long as the offending conduct at issue is deemed to be relevant to an accused's current membership in, or service to, the Union, the GEB Attorney may bring charges, regardless of when the conduct at issue occurred.

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Any officer or member of this International Union, or any person or entity having a business or contractual relationship with this International Union, or any Trustee of any of the International Union's Taft-Hartley Benefit Funds, or the United States Departments of Labor and/or Justice may refer any individual or entity to the GEB Attorney for investigation and possible discipline. In making such referral, the referring party (to the extent lawful and appropriate) shall provide the GEB Attorney with information relating to misconduct by the individual or entity at issue. The GEB Attorney shall, thereafter, investigate the matter and, within the time period agreed to by the referring party and the GEB Attorney, file charges, or issue a report that no disciplinary action is warranted, or refer the matter to the LIUNA Inspector General for further action.

LIUNA will provide the GEB Attorney with sufficient staff, funding, and office space 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 any individual or entity.

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 the Union. If any person refuses to testify or to provide evidence before 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.

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The GEB Attorney shall prepare and submit a report on the progress of his or her efforts to remove the influence of criminal elements from the Union to the General Executive Board on or before the fifteenth day of each month. The report shall discuss the status of all investigative and disciplinary proceedings and trusteeships, as well as contemplated future action, including the enforcement of any other lawfully adopted policies of the General Executive Board.

The GEB Attorney also shall prepare reports concerning his or her activities, and the progress he or she is making towards achieving the objectives and purposes of this Disciplinary Procedure, to be published on a bimonthly basis in The Laborer.

The GEB Attorney also shall report each instance in which he brings charges or declines to bring charges against any officer, agent, representative, employee, or member of the Union, or any entity within the Union, accompanied by a statement of the reasons, to the General Executive Board within five days after such action is taken.

The GEB Attorney, in conjunction with the LIUNA Inspector General, shall study the operations of the Union and recommend changes to the GEB to improve those operations in order to eliminate all corruption and racketeering activity, referred to hereinafter as the "Operations Study." The operations that the GEB Attorney and LIUNA Inspector General shall study include, but are not limited to, the following:

a. the procedures used by the Union to investigate and discipline misconduct by the officers, agents, representatives, employees, and members;

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b. the procedures used to fill vacancies in Union positions;

c. the procedures used to select service providers;

d. the procedures used to acquire and staff training sites;

e. the employment procedures; and

f. the practices relating to the imposition of trusteeships and other sanctions against subordinate organizations.



Within twelve months from the date of adoption of this Disciplinary Procedure, the GEB Attorney and the LIUNA Inspector General will submit a report, making recommendations to the GEB, based upon this study.

The GEB Attorney shall serve for a term of five years from the date of adoption of this Disciplinary Procedure, unless the GEB decides to terminate such services at a different date

4. The LIUNA Inspector General

LIUNA shall hire an individual, highly regarded for his or her integrity and experience, to serve as a full time Inspector General on the staff of LIUNA. During the term of the GEB Attorney, the LIUNA Inspector General shall have the authority to resolve all disciplinary matters arising under the Constitution or Ethical Practices Code, and to investigate and prosecute all charges 1) not involving barred conduct, and 2) as to which the GEB Attorney has not exercised authority.

Thereafter, the LIUNA Inspector General shall also acquire the disciplinary authority delegated hereunder to the GEB Attorney. As to any matter within the jurisdiction of the LIUNA Inspector General, the Inspec-

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tor General may refer such matter to the appropriate constitutional authority for further proceedings. The LIUNA Inspector General also shall have the right to impose and defend any trusteeship, unless responsibility for the matter is assumed by the GEB Attorney.

The LIUNA Inspector General also shall revise and supervise LIUNA's compliance and ethics training program, and LIUNA's audit program. The LIUNA Inspector General also shall supervise the implementation and operation of all other lawfully adopted procedures and policies of this International Union. Upon determining that there has been a violation of any such practice or policy, and unless the GEB Attorney has assumed jurisdiction of the matter, the LIUNA Inspector General may issue any direction to any officer, agent, representative, employee, or member of the Union, as may be appropriate to remedy the violation

LIUNA will provide the LIUNA Inspector General with sufficient staff, funding, and office space, to fulfill his mandate. The LIUNA Inspector General shall have complete and unfettered access to, and right to make copies of, all books, records, accounts, correspondence, files, and other documents of any individual or entity.

The LIUNA Inspector General shall have the right to take and require the sworn statement, or sworn oral deposition, of any officer, agent, representative, employee, or member of the Union. If any person refuses to testify, or to provide evidence, before the LIUNA Inspector General 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

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Ethics of the American Federation of Labor-Congress of Industrial Organizations, as adopted by LIUNA in 1958.

The LIUNA Inspector General also will assist the GEB Attorney in undertaking and reporting on the Operations Study, as delineated above. During the term of the GEB Attorney, the LIUNA Inspector General shall provide (at least) quarterly reports to the GEB and the GEB Attorney concerning his activities during the Previous quarter. Following the completion of such terms, the LIUNA Inspector General shall provide such quarterly reports to the GEB

5. The Independent Hearing and Appellate Officers

Two former judges, hearing examiners, or attorneys of similar integrity, judgement, and experience shall be hired, with one to serve as an Independent Hearing Officer under this Disciplinary Procedure, and the other as the Appellate Officer. For a period of five years following the adoption of this Disciplinary Procedure, the General Executive Board, with the advice and consultation of the GEB Attorney and the LIUNA Inspector General, shall select (and, if necessary, replace) the Independent and Hearing and Appellate Officers.Thereafter, the GEB shall select future Independent Hearing and Appellate Officers, with the approval of the LIUNA Inspector General.

The Independent Hearing Officer shall preside over and provide rulings in a) all cases brought by the GEB Attorney, pursuant to this Disciplinary Procedure; and b) all trusteeships; and c) all election protests brought by

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any member, officer, or candidate for office within the Union. Following the termination of the role of the GEB Attorney, the Independent Hearing Officer shall preside over and rule in all disciplinary cases brought by the LIUNA Inspector General alleging the commission of barred conduct or reviewing the imposition of a trusteeship

The Appellate Officer shall hear all appeals in all matters brought under The Constitution by the LIUNA Inspector General and, in the discretion of the LIUNA Inspector General, appeals from local union or district council trial boards. Such appeals shall be decided under appropriate appellate standards of review. To the extent any provisions relating to the Independent Hearing and Appellate Officers are inconsistent with the LIUNA Constitution, the General Executive Board, pursuant to Article VIII, Section 2, of the International Union Constitution, hereby amends said Constitution to incorporate the provisions herein.

At any hearing conducted before the Independent Hearing Officer by the GEB Attorney (or, following the termination of the role of the GEB Attorney, by the LIUNA Inspector General), the following procedures shall apply:

a. Hearings 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 an Independent Hearing Officer.

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e. The hearing shall be conducted under the rules and procedures generally applicable in labor arbitration proceedings, and decisions shall be made based on a "just cause" standard.

f. The Independent Hearing Officer may require any officer, agent, representative, member, or employee of, or entity within, the Union to produce any book, paper, document, record or other tangible object, for use in any hearing. Any failure to comply with the request of the Independent Hearing Officer shall be considered by the Independent Hearing Officer in assessing whether such individual or entity should be subject to the imposition of discipline.

g. All testimony and other evidence shall be received by the Independent Hearing Officer under oath.

h. If any person refuses to testify or to provide evidence before the Independent Hearing Officer on the basis of his privilege against self-incrimination, or for any other reason not supported by a valid claim of privilege, discipline may be imposed by the Independent Hearing Officer 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.

i. Any discipline imposed by the Independent Hearing Officer, or other final decision of the Independent Hearing Officer, shall be subject to appeal by the party disciplined to the Appellate Officer.

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Notwithstanding the above procedures, whenever the General President determines that an emergency situation exists in which the welfare or preservation of the Union is at stake, he may suspend without pay any officer or elected union official, at any level of the organization, including without limitation all officers and/or Executive Board members of any local union, any district council, or the International Union, including members of the General Executive Board, pending the filing of formal charges in or within ten days of the date of suspension, and a hearing thereon pursuant to the provisions of sections (a) through (i) of this paragraph.

6. Suspension of Indicted Officers

Upon receipt of notice that any officer, agent, representative, or employee of any entity within the Union has been indicted for any felony violation of any federal or state law, or for violating any federal or state law, relating to the conduct of the affairs of a labor organization or employee benefit or pension plan, the GEB and/ or General President shall place the accused individual on a temporary leave of absence with pay. The GEB Attorney shall promptly institute a disciplinary hearing before the Independent Hearing Officer, who shall determine the appropriate discipline, if any (including whether and for how long to continue the suspension), pursuant to the procedures delineated herein.

Upon the adoption of this Disciplinary Procedure, written notices, informing the Union membership of the signing and scope hereof will be sent to every local union, and will be printed in the first issue of The Laborer which is published after the date hereof.

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Date Adopted: January 18th, 1995

The General Executive Board of The Laborers' International Union of North America, AFL-CIO

Arthur A. Coia
General President

Rollin P. Vinall
General Secretary-Treasurer

Mason M. Warren
First Vice-President

John Serpico* Did not sign
Second Vice-President

Vere 0. Haynes
Third Vice-President

Samuel J. Caivano *Did not sign
Fourth Vice-President

Enrico Mancinelli
Fifth Vice-President

Chuck Barnes
Sixth Vice-President

Jack Wilkinson
Seventh Vice-President

George R. Gudger
Eighth Vice-President

Mike Quevedo, Jr
Ninth Vice-President

Armand E. Sabitoni
Tenth Vice-President

Page 33

Appendix A

"Racketeering activity" means (A) any act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in narcotic or other dangerous drugs, which is chargeable under State law and punishable by imprisonment for more than one year, (B) any act which is indictable under any of the following provisions of title 18, United States Code; Section 201 (relating to bribery), section 224 (relating to sports bribery), sections 471, 472, and 473 (relating to counterfeiting), section 659 (relating to theft from interstate shipment) if the act indictable under section 659 is felonious, section 664 (relating to embezzlement from pension and welfare funds), sections 891-894 (relating to extortionate credit transactions), section 1029 (relating to fraud and related activity in connection with access devices), section 1084 (relating to the transmission of gambling information), section 1341 (relating to mail fraud), section 1343 (relating to wire fraud), section 1344 (relating to financial institution fraud) sections 1461-1465 (relating to obscene matter), section 1503 (relating to obstruction of justice), section 1510 (relating to obstruction of criminal investigations), section 1511 (relating to the obstruction of State or local law enforcement), section 1512 (relating to tampering with a witness, victim, or an informant), section 1513 (relating to retaliating against a witness, victim, or an informant), section 1951(relating to interference with commerce, robbery, or extortion), section 1952 (relating to racketeering), section 1953 (relating to interstate transportation of wagering paraphernalia), section 1954 (relating to unlawful welfare fund payments), section 1955 (relating to the prohibition of illegal gambling businesses), section 1956 (relating to the laundering of monetary instruments), section 1957 (relating to engaging in monetary transactions in property derived from specified unlawful activity), section 1958 (relating to use of interstate commerce facilities in the commission of murder-for-hire),

Page 34

sections 2312 and 2313 (relating to interstate transportation of stolen motor vehicles), sections 2314 and 2315 (relating to interstate transportation of stolen property), section 2321 (relating to trafficking in certain motor vehicles or motor vehicle parts), sections 2341-2346 (relating to trafficking in contraband cigarettes), sections 2421-24 (relating to white slave traffic), (C) any act which is indictable under title 29, United States Code, section 186 (dealing with restrictions on payments and loans to labor organizations) or section 501 (c) (relating to embezzlement from union funds). (D) any offense involving fraud connected with a case under title 11, fraud in the sale of securities, or the felonious manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in narcotic or other dangerous drugs, punishable under any law of the United States, or (E) any act which is indictable under the Currency and Foreign Transactions Reporting Act

Page 35

Appendix B

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. _"Knowingly associating" does not include (a) a Union member, representative or official 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 Union member, representative or official represents, or seeks to represent or would admit to membership the employees of that employer; (b) a Union member, representative or official meeting or communicating with a "barred person" who is a representative of a labor organization to discuss Union matters; (c) a Union member, representative or official meeting or communicating with an officer, employee or member of LIUNA and its affiliated entities, and (d) a Union member, representative or official meeting or communicating with a relative by blood or marriage solely for social purposes. As used in this paragraph, the term "relative" shall mean a lineal descendent, stepchild, ancestor, sibling or spouse or child of a lineal descendent, stepchild, ancestor, or sibling.

Page 36




RULES OF PROCEDURE FOR ARBITRATIONS INVOLVING
DISCIPLINARY MATTERS FOR
INDIVIDUALS BEFORE THE LIUNA INDEPENDENT HEARING OFFICER

Pursuant to the LIUNA Ethics and Disciplinary Procedure adopted on January 18, 1995, the following procedural rules are hereby adopted.

  1. Pleadings

    All pleadings regarding disciplinary matters before the Independent Hearing Officer (IHO) including the list of charges, motions and briefs shall be filed with the Independent Hearing Officer consisting of an original and one copy. The IHO should be served at Vaira Backstrom & Riley, 1600 Market, Suite 2650, Philadelphia, PA.19103. A separate copy must be served on the opposing party. The IHO will hold the pleadings confidential and permit no one except the parties and their authorized representatives to examine them during the pre-hearing and hearing stages of the proceedings. A person other than those authorized by this order who wishes to examine the pleadings at the pre-hearing and hearing stages of the proceedings must file a motion with the IHO which demonstrates a particularized need to examine the documents. The need to examine the pleadings cannot prejudice the right of all parties to a fair hearing.

    Upon a final decision by the IHO which concludes an arbitration, the original record containing the pleadings and other documents will be forwarded to

    Page 37

    General Secretary-Treasurer of the LIUNA who will enter it on formal docket as described below.

  2. Formal Docket
  3. a. The General Secretary-Treasurer of the LIUNA shall establish a formal docket at a secure location within the General Headquarters of the union.
    b. The security of the docket will be the responsibility of the General Secretary-Treasurer.
    c. The docket will contain all charges, pleadings, and other papers filed with the IHO, as well as all opinions and orders of the IHO, arbitration transcripts,and other documents ordered by the IHO to be docketed.
    d. A separate file will be maintained for each matter, with a separate number. The details of this numbering system will be formulated at a future date. The General Secretary-Treasurer shall maintain a separate docket summary sheet, similar to those maintained by federal courts, which indicates the matter number, the date the document is entered on the docket, and a brief description of the document.
    e. The original documents placed on the docket shall not be removed except upon order by the IHO or the Appellate Officer.
    f. The documents on the docket and the docket entry sheet may be examined by members of the LIUNA or their representatives upon request made to the General Secretary-Treasurer, but may not be removed from the premises of the General Headquarters except upon a written order by the IHO or the Appellate Officer. It is the responsibility of the General Secretary -Treasurer to insure that no one examining the docketed materials destroys or damages the records.

    Page 38

    g. Copies of the documents on the docket may be made at any time upon request of those persons who are authorized to examine the material.
    h. Persons, other than those authorized to examine the docket by these rules, who wish to examine the docket must request permission from the General Secretary-Treasurer.
  • Discovery

    As a general rule, labor arbitration proceedings do not maintain the formal discovery procedure of common law courts of the United States, nor of many proceedings before administrative law judges in various state and federal agencies. Notwithstanding the informality, due process standards must met, in the context of the types of hearings and their purposes.

    In disciplinary hearings the following discovery procedures will be followed:

    1. a. Motion for Full Disclosure. Title 29 U.S.C.Sec. 411 (a)(5) requires fair notice of the charges in sufficient time to enable the member to defend himself/herself. The charges should be specific enough to inform the member of the offense(s) of which he/she has been charged, but need not be as specific as a criminal indictment. The standards of particularity of Title29 U.S.C. Sec. 411 (a)(5), as construed by the courts, will be followed. A member who believes that a charge filed against him/her is not specific enough to enable him/her to defend against it may file for full disclosure(in the nature of a bill of particulars). A motion for a full disclosure must be filed with the IHO within ten business days of the receipt of the charge(s) by the member. A copy of the motion shall be served upon

      Page 39

      the GEB attorney. The GEB attorney shall respond within seven business days by formal reply to the IHO with a copy served on the opposing party. The IHO will rule upon the contested portions of the motion.
      b. Documents. Within fifteen business days of the filing of charges the GEB attorney shall identify to the member served with charges the documents which the GEB attorney intends to offer into evidence at the hearing. Upon request of the member, the GEB attorney shall make the documents available to the member by providing copies, or in the event the documents are too voluminous, the GEB attorney shall make the documents available for inspection by the member. This provision is not intended to limit the GEB attorney from obtaining and utilizing additional documents other than those specified within the time limits set out above. In the event the GEB attorney determines that additional documents may be offered in evidence, the GEB attorney will promptly notify the opposing party of their identity to permit examination and inspection.
      c. Witness List. No later than seven business days prior to the scheduled date of the hearing, the GEB attorney shall provide the member with a list of The names of the witnesses the GEB attorney intends to call at the hearing. In theevent that other witnesses become available the GEB attorney shall promptly notify the opposing party of their identity.

  • Motions.
  • All motions must be filed with the IHO pursuant to paragraph (1) of these rules. Opposition to a motion shall be filed within seven business days. Upon

    Page 40

    petition the IHO may grant additional time to answer a motion.

  • Hearing Procedure:

    (a) The member charged is entitled to be represented by a lawyer or other non-lawyer representative of his/her choice, at all stages of the proceedings.

    (b) The hearings will be conducted in a courtroom like manner, although strict evidentiary rules which are ordinarily followed by common law courts will not be applied. Hearsay will be admitted provided there is a demonstration of reliability in the custom and practice of labor arbitrations. Documents admitted in evidence will be properly marked and made part of the record. All witnesses will be sworn and testimony will be transcribed by an accredited court reporter. A transcript will be filed with the IHO for inclusion in the record. Testimony of witnesses will consist of direct examination, cross-examination, redirect and recross. A witness once excused may be recalled with permission of the IHO. Objections and motions during the hearing shall be made according to normal courtroom procedure. Unless otherwise directed by the IHO, witnesses will be sequestered from the hearing room except during their testimony.

    (c) Evidence by Affidavit. The IHO may receive and consider evidence of witnesses by affidavit in accordance with the custom and practice of labor arbitrations.

    (d) The hearings will be conducted at a location designated by the IHO. An attempt will be made to hold the hearings at locations convenient to all parties. Attendance at the hearings will be limited to the parties, their attorneys or representatives.

    Page 41

    (e) The burden of proof is upon the GEB attorney to convince the IHO that just cause exists to discipline the member.

    (f) Subpoenas. Either party may request the IHO to issue a subpoena duces tecum (for documents) or ad testificandum (for testimony) to a member or officer of the LIUNA pursuant to section 5(f) of the amended disciplinary rules. If the IHO is convinced that the documents or testimony sought are probative and admissible, a subpoena will be issued. Failure to comply with the subpoena will be dealt with in the manner set forth in section 5(f) of the LIUNA Ethics and Disciplinary Procedure pertaining to such refusals. This section in no ways limits the subpoena power granted independently to the GEB Attorney by the LIUNA Ethics and Disciplinary Procedure.

    (g) Depositions. In the event that a non-LIUNA member is willing to offer testimony, but is unavailable to appear at the hearing, either party may petition the IHO for permission to take the deposition of the person. If the moving party convinces the IHO that the testimony of the witness is probative and admissible a deposition may be taken for evidentiary purposes, following as closely as possible the Federal Rules of Civil Procedure. The transcript of the deposition may be offered in evidence as part of the hearing.

    (h) The IHO may request briefs and arguments on questions that arise during the hearing and may request proposed findings and conclusions.

    (i)The parties may make summary arguments and submit summary briefs in conclusion.

    Page 42

    (j) The IHO will render a decision in writing. The IHO need not await the transcription of the record to render a final decision.

    (k) Following the IHO's written decision, the IHO will transmit the original record to the General Secretary-Treasurer for inclusion on the docket.


    s/Peter F. Vaira

    Peter F. Vaira

    Independent Hearing Officer

    Dated: February 15,1995

    Page 43




    OFFICE OF THE APPELLATE OFFICER LABORERS' INTERNATIONAL UNION OF NORTH AMERICA

    Rules of Procedure for Appeals to the Appellate Officer

    Rule 1. Scope of Rules
    Pursuant to the LIUNA Ethics and Disciplinary Procedure adopted on January 18, 1995, the following rules are hereby adopted. The rules shall take effect on May 10, 1995 and shall apply to all appeals to the Appellate Officer from decisions rendered after May 10, 1995 by the independent Hearing Officer ("IHO").

    Rule 2. Pleadings
    All pleadings referred to in these rules, including notices of appeals, motions, briefs, and appendices, shall be filed with the Appellate Officer in care of the following: W. Neil Eggleston, Appellate Officer, Howrey & Simon, 1299 Pennsylvania Avenue, N.W., Washington, D.C. 20004. The original and one copy of each pleading shall be filed. A separate copy must be served on the opposing party. Filing of pleadings may be accomplished by mail or courier addressed to the Appellate Officer. Pleadings will be treated as filed on the day of mailing or transmittal. The Appellate Officer will hold the pleadings confidential and permit no one except the parties and their authorized representatives to examine them during the pendency of the proceedings.

    Page 44

    Rule 3. Notice of Appeal
    A party wishing to appeal from a final decision of the IHO must file, within 10 days of the filing of a final decision by the IHO, a notice of appeal with the Appellate Officer.. The notice shall indicate the party or parties taking the appeal; the date of the decision below; and the names of counsel for or other authorized, representative of each party.

    Rule 4. Briefing Schedule
    Upon filing of the notice of appeal, the Appellate Officer will serve upon each party a briefing schedule indicating when each party's briefs are due to be filed. The briefing schedule will also set forth the page limits applicable to each party's briefs. In appropriate cases, the Appellate Of ricer, upon the motion of any party or on his own motion, may order expedited briefing and argument.

    Rule 5. Briefs
    (a) Principal Brief
    The principal briefs of the appellant and appellee shall contain the following: (1) A statement of the issues presented for review. (2) A statement of the facts relevant to the issues presented for review. All facts stated shall be supported by reference to the page or pages of the record or appendix (see Rule 6, below) where that fact appears.: (3)An argument. (4) A short conclusion stating the relief sought.

    Page 45

    (b) Reply Brief
    The appellant may file a brief in reply to the brief of the appellee.

    Rule 6. Appendix to the Briefs
    (a) Contents
    The appellant shall submit, bound separately from the principal brief, one copy of an appendix containing any opinion, memorandum of decision report or findings of facts and conclusions of law issued by the IHO in support of his decision. The appendix shall also contain copies of any other opinions, orders, excerpts from transcripts and other documents relevant to the issues raised on appeal. The appellee may also submit with its brief one copy of an appendix containing any materials not contained in the appellant's appendix. (b) Hearing of Appeals on the Original Record Without the Necessity of an Appendix The Appellate Officer may, upon motion of any party or on his own moron, dispense with the requirement of an appendix and permit appeals to be heard on the original record.

    Rule 7. Computation and Extensions of Time
    (a) Computation of Time
    In computing any period of time prescribed by these rules or a briefing schedule, only business days shall be included. The day of the act or event from which the designated period of time begins to run shall not be included. In all instances in which a responsive pleading or brief is required, the time period shall commence running from the date the brief or pleading requiring a response was mailed or otherwise transmitted.

    Page 46

    (b)Enlargement of Time
    The Appellate Officer may enlarge the time prescribed by these rules on request of any party. Such requests shall be set forth in a letter submitted to the Appellate Officer stating the reasons for the request, and a copy of such letter shall be served on all other parties.

    Rule 8. Oral Argument
    The principal briefs of the appellant and appellee shall state whether oral argument is requested. The Appellate Officer or may request oral argument on his own motion in the absence of a request for oral argument by either party. If oral argument is ordered, the Appellate Officer will notify each party within a reasonable time after the filing of ad briefs. Arguments will be heard at a time and place designated by the Appellate Officer. An attempt will be made to hold oral argument at a location convenient to all parties. Attendance at the argument will be limited to the parties and their attorneys or representatives.

    Rule 9. Petition for Rehearing
    A petition for rehearing may be filed within 10 days after the Appellate Officer renders a decision. The petition shall state the points of law or fact which in the opinion of me petitioner the Appellate Officer has overlooked. There will be no oral argument in support of a petition. No answer to a petition will be received unless requested by the Appellate Officer. If a petition for rehearing is granted, the Appellate Officer may make a final disposition of the case without re-argument.

    Page 47

    Rule 10. Motions
    Unless otherwise provided under these rules, an application an order or other relief shall be made by filing a motion with service on all parties. Unless the time for filing a response is modified by the Appellate Officer, any party may file a response in opposition to a motion within 7 days after the motion is mailed or otherwise transmitted. No oral argument will be heard on motions unless otherwise ordered by the Appellate Officer.

    Rule 11. Permissive Appeals
    An appeal from a ruling other than a final disposition by the IHO may be sought by filing a petition for leave to appear with the Appellate Officer. Allowance of such an appeal is disfavored, and is within the discretion of the Appellate Officer. The petition shall be filed within 15 days of the ruling from which appeal is sought. A notice of appeal need not be filed. The petition for leave to appeal shall contain a statement of the facts necessary to an understanding of the issues to be presented' by the appeal; a statement of those issues and of the relief sought; a statement of the reasons why in the opinion of the petitioner the appeal shall be allowed; and a copy of the ruling complained of and any opinion or memorandum relating thereto. No answer to a petition will be received unless requested by the Appellate Officer.

    Rule 12. Remand for Further Investigation
    The Appellate Officer reserves the right to remand any matter to the IHO for further investigation or fact-finding.

    Page 48

    Rule 13. Substantial Compliance
    The Appellate Officer, within his discretion, may consider pleadings that are untimely or otherwise not in technical compliance with these rules.

    Rule 14. Transmission of Record
    Following the issuance of the Appellate Officer's final written decision and the expiration of time for the filing of any petition for rehearing, the Appellate Officer will transmit the original record to the General Secretary Treasurer for inclusion in the docket in accordance with the procedure outlined in Rule 2 of the IHO's Rules of Procedure For Arbitrations involving Disciplinary Matters For Individuals Before the LIUNA independent Hearing Officer.   W. NEIL EGGLESTON Appellate Officer DATE: May 10, 1995    

    Page 49




    SUMMARY OF LIUNA-GOVERNMENT AGREEMENT

    February 13, 1995 was an historic day for the Laborers' International Union of North America (LIUNA). After years of controversy and months of negotiation, the General Executive Board entered into an unprecedented agreement with the United States government that will enable the organization - once and for all - to shed the label "mob Union," and with it the damaging effects it has had on organizing efforts and labor-management relations.

    This agreement is a first-of-its-kind in the history of union-government partnering, and represents a further example of what LIUNA has done to advance cooperation at a national level. It is completely different form the International Brotherhood of Teamsters situation, which was an example of government take-over and control of a union.

    Our negotiations with the Government resulted in a two-part agreement. The first part, officially entitled Agreement, is referred to in this summary as the "Operating Agreement"; the second part, entitled Consent Decree, is referred to here as the "Contingency Plan."

    The Operating Agreement essentially provides that LIUNA, with certain assistance from the government in the form of information and evidence, will undertake internal reforms focused on implementing and enforcing disciplinary procedures and conducting internal investigations into possible wrongdoing, especially concerning associations with individuals involved in organized crime. LIUNA's day-to-day operations will not

    Page 50

    be affected in any way by this process, and no government personnel will be involved in the administration of Union activity. This process will be allowed to continue for a period of ninety (90) days. At that time, the government will review our progress, and talk to our attorneys and our Inspector General about the steps we have taken and how successful we have been. They will also discuss what remains to be done. If everyone agrees that we are making a successful effort on our own, the internal program will continue. Our efforts will be reviewed periodically by the Government, and could go on as long three years. If the government does not activate the Consent Decree during this three-year period, the "Operating Agreement" expires and the Consent Decree can never be put into effect.

    At any time after the first ninety (90) days, if the government believes that we have not done enough, or that we do not have the right tools, it will have the option to trigger the Consent Decree, or "Contingency Plan," as we call it. The Contingency Plan is exactly that - a secondary agreement that comes into play only if the first one fails. AT THE PRESENT TIME, THERE IS NO LAWSUIT BETWEEN LIUNA AND THE UNITED STATES GOVERNMENT.

    The Contingency Plan provides that LIUNA and the government have agreed to the filing of a lawsuit that gives the Court the legal basis to impose the Consent Decree. This means that no one has to spend time, money and manpower in Court. The Consent Decree is simple and says that both LIUNA and the government recognize that over the years, organized crime has had some influence on the Union; that both the gov-

    Page 51

    ernment and LIUNA agree that there should be no such criminal influence; and that both the government and LIUNA, in their own ways, have tried to eliminate the problem, but have not been completely successful in doing so.

    The Decree then provides some additional tools to make the process of eliminating corruption and ensuring democracy easier to accomplish. These tools are the appointment of an Independent Monitor, who would be the Court's supervisor of the process of removing criminal elements from the Union, and would also perform functions similar to those of our Independent Hearing Officer; and Investigations Officer, who would be the government's version of our own Inspector General and GEB Attorney; and an Elections Officer whose job would be to implement and supervise rank-and-file elections of International Officers. All these positions would be filled by individuals selected jointly by both LIUNA and the government. The Monitor and Investigations Officer would serve for terms of three (3) years, unless the Court shortens or lengthens their terms; the Elections Officer would serve until the Court feels it is no longer necessary. LIUNA would continue to have the right, under the Consent Decree to discipline its own members and subordinate bodies, and the roles of our GEB Attorney and Inspector General would be preserved.

    __________________

    Two other changes would be made by the Consent Decree, if it ever became operational. First, certain job referral rules and procedure would be implemented in every local union whose collective bargaining agreements provide for hiring halls. A copy of these rules and procedures follows the Consent Decree in the booklet. These rules are similar to the practices that Local Unions are already expected to follow.

    Page 52

    Second, International Officers, that is the General President, General Secretary-Treasurer, and General Executive Board members, would be nominated at the Convention and then elected by a rank-and-file mail ballot. This new election procedure would involve two other elements besides the mail balloting by the rank-and-file. The first is that the Executive Board would be expanded to include an Eleventh Vice President, then six of the Vice Presidents on the General Executive Board would be elected on a regional basis; that is, they would be nominated only by delegates from the Regions in which they are located and elected only by members from those regions. The remaining five Vice Presidents, along with the General President and the General Secretary-Treasure, would be nominated by all the delegates and elected by all the rank-and-file. The second element is that in order for any qualified candidate to be nominated for International Office, he or she would have to obtain at least five (5%) percent of the delegates from that Region to be nominated.

    Other provisions of the Consent Decree permit the Independent Monitor to review appointments to Union positions on Boards of Trustees of national benefit funds, International Staff appointments, selections of persons to act as Trustees of Local Unions or District Councils that are placed in trusteeship, contracts for services in excess of one hundred fifty thousand ($150,000) dollars. The Monitor could reverse a decision by the Union only if it would permit influence

    Page 53

    by organized crime. The Monitor would not have the power to second guess the decision of your elected officials on how to manage the day-to-day affairs of LIUNA. Any decisions made by the Monitor could be appealed to the Court.

    AGAIN, THE PROVISIONS OF THE CONSENT DECREE ARE NOT IN EFFECT AT THIS TIME, AND THEY MAY NEVER BE PUT INTO EFFECT. AS LONG AS WE CONTINUE TO MAKE PROGRESS TOWARD OUR GOALS, WE WILL E ABLE TO FUNCTION INDEPENDENTLY OF BOTH THE GOVERNMENT AND ANY CORRUPTIVE INFLUENCES.

    Page 54






    AGREEMENT

    This Agreement is entered into, this 13th day of February 1995, between the Laborers' International Union of North America (hereinafter referred to as "LIUNA") and the United States of America, by and through the Assistant Attorney General Jo Ann Harris and the United States Attorney for the Northern District of Illinois,James B. Burns.

    WHEREAS,, LIUNA and the United States have been pursuing various courses of action designed to ensure that all locals and other entities within LIUNA are rid of any corrupting influence of any member of organized crime;

    WHEREAS,, both LIUNA and the United States seek the complete elimination of any such corrupting influence on any entity within LIUNA;

    NOW, THEREFORE,, LIUNA and the United States agree as follows:

    1. LIUNA shall be allowed to undertake a period of internal reform, lasting at least ninety (90) days, aimed at further investigating and disciplining individuals within any entity of LIUNA for wrongful association with, or corruption by, members of organized crime, as well as instituting other reforms. During this period, the United States may provide any assistance allowed by law to LIUNA

    2. If, after this period of at least ninety (90) days from the date hereof (but prior to the expiration of this Letter Agreement), the Assistant Attorney General for the Criminal Division determines, in her sole discretion, that the imposition of a consent decree is neces-

    Page 55

    sary or desirable, after having given LIUNA an opportunity to have a meeting to be heard, the parties agree to the filing of the attached complaint and entry and implementation of the attached consent decree.

    3. This Agreement shall expire on February 11, 1998.

    CONSENTED AND AGREED TO:

    DATE: February 13, 1995

    THE GENERAL EXECUTIVE BOARD OF
    THE LABORERS' INTERNATIONAL
    UNION OF NORTH AMERICA, AFL-CIO

    signature/Arthur A. Coia
    Arthur A. Coia
    General President

    s/Did Not Sign
    John Serpico
    Second Vice-President

    signature/Rollin P. "Bud" Vinall
    Rollin P. "Bud" Vinall
    General Secretary-Treasurer

    signature/Vere O Haynes
    Vere O.Haynes
    Third Vice-President

    signature/Mason M. Warren
    Mason M. "Max" Warren
    First Vice-President

    signature/Did Not sign
    Samuel J. Caivano
    Fourth Vice-President

    Page 56

    signature/Enrico Mancinelli
    Enrico Mancinelli
    Fifth Vice-President

    signature/Michael Quevedo, Jr.
    Michael Quevedo, Jr.
    Ninth Vice-President

    signature/Chuck Barnes
    Chuck Barnes
    Sixth Vice-President

    signature/Armand Sabitoni
    Armand Sabitoni
    Tenth Vice-President

    signature/Jack Wilkinson
    Jack Wilkinson
    Seventh Vice-President

    signature/Robert D. Luskin
    Robert D. Luskin
    Attorney to the General
    Executive Board of LIUNA

    signature/George R. Gudger
    George R. Gudger
    Eighth Vice-President

    signature/Brendan V. Sullivan, Jr.
    Brendan V Sullivan, Jr
    Attorney for Arthur A. Coia


    THE UNITED STATES OF AMERICA

    signature/Jo Ann Harris
    Jo Ann Harris
    Assistant Attorney General

    signature/Paul E. Coffey
    Paul E. Coffey, Chief
    Racketeering Section
    Criminal Division
    U.S. Department of Justice

    signature/James B. Burns
    James B. Burns
    United States Attorney Northern District of Illinois

    Page 57






    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 entices within LIUNA;

    Page 58

    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.

    Page 59

    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

      Page 60

      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 ref-

      Page 61

      erence 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 this 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 De-

      Page 62

      cree 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

      Page 63

      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 of ricers, 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. ß 1961(1);

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

      (c) from 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 offic-

      Page 64

      er, 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. 11401-531 (hereinafter referred

      Page 65

      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. A 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.

      Page 66

    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

      Page 67

      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;

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      (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 disciplinaryprocedure 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

      Page 69

      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

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      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

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      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. ß 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

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      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

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      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. ß1965( 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.

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      (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 consid-

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      er, 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

      Page 76

      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

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      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

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      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

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      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.

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    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 Of ricer 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

      Page 81

      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.

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      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.

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      (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 au

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      thority 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.

      Page 85

    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


      Page 86

      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

      Page 87


      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

      Page 88

      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 ofthe 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

      Page 89

      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 Il-

      Page 90

      linois. 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 ad 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:

        THE GENERAL EXECUTIVE BOARD OF THE

        LABORERS' INTERNATIONAL UNION OF NORTH

        AMERICA, AFL-CIO

        s/Arthur A. Coia
        Arthur A. Coia
        General President

        s/Rollin P. Vinall
        Rollin P. "Bud" Vinall
        General Secretary- Treasurer

        s/ Mason M Warren
        Mason M. "Max" Warren
        First Vice-President

        no signature/John Serpico
        John Serpico
        Second Vice-Presidert

        Page 91

        s/Vere O. Haynes
        Vere O. Haynes
        Third Vice-President

        no signature/Samuel J. Caivano
        Samuel J. Caivano
        Fourth Vice-President

        s/Enrico Mancinelli
        Enrico Mancinelli
        Fifth Vice-President

        s/Chuck Barnes
        Chuck Barnes
        Sixth Vice-President

        s/Jack Wilkinson
        Jack Wilkinson
        Seventh Vice-President

        s/George R. Grudger
        George R. Grudger
        Eighth Vice-President

        s/Michael Quevedo. Jr.
        Michael Quevedo, Jr
        Ninth Vice-President

        s/Armand E. Sabitoni
        Armand E. Sabitoni
        Tenth Vice-Preident

        THE UNITED STATES OF AMERICA

        s/James B. Burns
        James B. Burns
        United States Attorney
        Northern District of Illinois

        s/Paul E. Coffey
        Paul E. Coffey,
        Chief, Organized Crime and Racketeering Section,
        Criminal Division
        U.S. Department of Justice

        Page 92




        AMENDED JOB REFERRAL RULES

        In order for the Laborers' International Union of North America (LIUNA) and its subordinate local unions to maintain and administer a processing system for referral of applicants to employment in a fair and equitable manner, and to establish records and procedures which will be adequate to disclose fully the basis on which each referral is made, the following amended rules have been promulgated and shall be adopted and implemented by each LIUNA Local Union.

        1.Non-Discrimination in Job Referrals

        Referrals to jobs shall be on a non-discriminatory basis and shall not be based on, or in any way affected by, race, gender, national origin, sexual orientation, disability, religion, or lawful union-related activity.

        2.Effect on Hiring Hall Rules

        All referrals by a Local Union to jobs within its jurisdiction shall be made in accordance with these rules except to the extent that any rule contained herein conflicts with either provincial law or with a term of collective bargaining agreement or in accordance with a variance granted under § 8 below. Any Local Union that concludes that these rules conflict with provincial law or the term of a collective bargaining agreement shall apply to the GEB Attorney, furnishing such information as he shall determine.

        The GEB Attorney shall advise the Local Union in writing whether such a conflict exists. In cases where a term of a collective bargaining agreement conflicts with these rules, the Local Union or District Council shall use its best efforts to modify that term in any successor agreement in order to fully conform to these rules. All newly negotiated agreements should include these rules and, where applicable, the Local Union or District Council shall use its best efforts to include an exclusive hiring hall provision in all successor or newly negotiated collective bargaining agreements.

        Page 93

        3.Registration of Availability for Referral

        A. An applicant seeking referral to a job must file with the Local Union a signed and dated referral form providing name, telephone number and social security number, and stating any skills the applicant possesses and the jobs the applicant is able to perform, including any relevant licenses or certifications. Blank referral forms will be available at the Local Union. The Local Union will compile an out-of-work list, consisting of the applicants who have registered their availability for referral. The Local Union may confirm any prior employment, licenses, or certifications listed by an applicant. The Local Union has five business days from the time a member places his name on the out-of-work list to challenge an applicant's representations concerning his prior employment, licenses, or certifications. If the Local Union makes a timely challenge, it must promptly notify the applicant in writing, who shall have five business days from the receipt of this notice in which to respond and to submit any relevant information. Any applicant who remains aggrieved by a final decision of the Local Union may file a protest with the Independent Hearing Officer, who shall finally resolve all such disputes in accordance with procedures that he shall establish.

        B. Apprentices shall be referred under a separate out-of-work list, and shall be listed according to their apprenticeship year.

        C. Only applicants who are not currently employed at the trade may register their availability for referral. Applicants who, after registering their availability for referral, on their own, obtain one or more jobs at the trade in the aggregate lasting eleven (1l) working days or more of employment, must advise the Local Union immediately. Those applicants will then be removed from the out-of-work list. Failure to advise the Local Union of such employment as required herein will result in the applicant being removed from the out-of-work list.

        D. Applicants shall be removed from the out-of-work list upon receiving a job referral, subject to the provisions at § 4(C) on short-term referrals. An applicant who is laid off or discharged from a job must again register his or her availability in order to be included on the out-of-work list.

        E. Once an applicant has registered his or her availability for referral, by filing a signed referral form with the Local Union, the applicant may afterward register his or her availability by telephone to the Local Union.

        Page 94

        F. An applicant's registration of availability for referral shall be in effect for ninety (90) days. An applicant must against register his or her availability before the expiration of that period in order to retain his or her position on the out-of-work list.

        4. Referral Procedure

        A. Subject to any exceptions or variances approved by the GEB Attorney pursuant to § 2 above or § 8 below. Applicants on the out-of-work list shall be referred to jobs in the order in which they have registered their availability for referral, with the first registered applicant referred first, provided that the applicant has the qualifications requested by the employer.

        B. Requests by an employer for specific applicants employed by the employer within the previous six months shall be fulfilled as required by applicable collective bargaining agreements.

        C. An applicant who is referred to a job which, lasts ten (l0) working days or less either because (l) the job is terminated or (2) the applicant is laid off or discharged will return to his or her position on the out-of-work list prior to receiving the referral. However, after receiving a job referral immediately following such a short-term referral, regardless of its length, that individual must again register in order to be included on the out-of-work list. The short term referral provisions herein are inapplicable and the applicant will be removed from the out of-work list, if the applicant takes any action within the first ten (l0) days of employment designed to manipulate this provision of the Amended Job Rules, such as voluntarily quitting or requesting to be laid off or discharged from a job to which he or she is referred.

        D.To notify an applicant of a job referral, the Local Union shall call the applicant at the telephone number on the file. The Local Union shall record the date and time of the call, the person making the call, the name of the employer, the location of the job, the start date of the job, and the results of the call, including whether the call was answered, by whom and what response, if any, was made.

        E.Any applicant who refuses or is unavailable for two consecutive referrals shall be moved to the bot-


        Page 95

        tom of the out-of- work list. An applicant must be unavailable on two separate days before he/she can be moved to the bottom of the out - of-work list. An applicant will be considered unavailable if he or she cannot be reached after three calls have been placed to the telephone number provided by the applicant, unless the applicant has given the Local Union notice in writing of unavailability for a period not to exceed thirty, (30) days. The three calls must be separated by intervals of no less than thirty (30) minutes.

        F. When the Local Union determines that the applicant who is first on the out-of-work list cannot be referred because of refusal, unavailability, or lack of required skills, the Local Union shall then refer the next applicant on the out-of-work list who is willing, available, and has the required skills

        G. An applicant shall not be referred to an employer if the applicant was previously discharged for cause by the same employer. Applicants who are twice lawfully rejected by an employer for lack of skills, after referral by the Local Union, shall not be eligible far referral to a job requiring the same skills without first providing the Local Union with references from two previous employers, showing the applicant has demonstrated the skills required


        5 Disssemination of the Job Referral Rules

        These rules shall be (a) conspicuously posted at the offices of each Local Union; and (b) published in The Laborer. Additional copies of these rules shall be made available to members upon request, subject to the payment of reasonable copying costs. New members shall receive a copy of the job referral rules upon admission to membership.

        Page 96

        6. Job Referral Information

        A Local Union shall maintain accurate and current records of all job referrals. The records shall be preserved for a period of three (3) years from the making of each record. The records shall include the following information:

        A. All registration by applicants of their availability for referral, including the date of each applicant's registration;

        B. A current out-of-work list, including all applicants whose registration of availability for referral are then in effect, and the date of each applicant's registration;

        C. All requests from employers for workers, including the date of each request, the location of the job site, the length of the job, if known, and any request by the employer for applicants with special skills, licenses, or certifications, or an applicant employed by the employee pursuant to 4(D), above.

        D. All instances where a job referral is not made because an applicant (1) refuses the referral, (2) is unavailable, or (3) lacks the required skills, including (where applicable) the date and time of the call(s), the person making the call(s), the name of the employer, the location of the job site, the start date of the job, the basis for not making the referral, the results of the call, including whether the call was answered and by whom, and what response, if any, was made, and

        E. All job referrals made, including the applicant referred, the date on which the applicant registered his or her availability for employment, the date of the referral, the employer, the location of the job site, the date the applicant was hired, and the date any employment terminated.


        Page 97

        7. Access to Job Referral Information

        A. Any applicant can inspect or copy any record containing the job referral information described in § 6. An appointment for inspection shall be scheduled for within five (5) days of request. Copies of 500 pages or less shall be provided within ten (10) days of request. Copies of more than 500 pages shall be provided within (30) days of a request. A Local Union may charge $.50 per page to copy the first twenty (20) pages, and $.25 per page thereafter.

        B. Lists containing the information described in § 6(B) and (E) shall be conspicuously posted, or otherwise immediately available for inspection, at the offices of a Local Union on a weekly basis, so that the previous week is posted or immediately available by the close of business on the following Monday. The information shall remain posted or immediately available for a least two weeks.


        8. Application for a variance from a provision(s) of these Uniform Job Referral Rules may be made in writing to the General Executive Board Attorney. The General Executive Board Attorney may grant such an application provided he determines that the variance is consistent with the LIUNA Ethical Practices Code, with applicable law, and is intended to further a legitimate purpose. Any such variance shall be effective for a period of one year and shall be subject to further application to the General Executive Board Attorney in order to continue beyond one year. Further, a variance shall be subject to any other condition imposed by the General Executive Board Attorney.

        9. Any complaints or concerns regarding alleged violations of the Code of Ethics and/or Uniform Job Referral Rules to discriminate, punish, retaliate or reward members for their Union political or election activity should be promptly addressed to Inspector General W. Douglas Gow, (202) 942-2360.




        MEMORANDUM

        DATE:

        TO: All Referral Applicants at Local Union ______

        FROM:_________________ Business Manager

        In accordance with the policy of the International Union regarding the adoption of uniform referral procedures as published in The Laborer magazine our Local Union will from this time forward utilize those procedures when we are requested by a signatory contractor to provide job referrals

        A copy of those uniform procedures is posted at the Local Union and may be obtained upon request. Any wishing to register for referral may do so by signing the registration list. A copy of the current out-of-work list and a list of all job referrals made will be posted and available for inspection at the Local Union. Ordinarily, referrals will be made in order of registration provided that such applicant possesses the required qualifications for the position. The reason for any out-of-order referrals will be available upon request. Examples of reasons for an out-of-older referral include inability to contact the next applicant, lack of skills or qualifications as required by the employer, or the recall of a former employee as provided for in the referral rules.

        Page 98





        GENERAL EXECUTIVE BOARD'S POLICY ON APPOINTMENT OF OFFICERS, TRUSTEES AND BENEFIT FUND REPRESENTATIVES

        Pursuant to its authority under Article VII, 2(c) and (n) of the Constitution of the Laborers' International Union of North America, and in order to accomplish more fully the purposes of the LIUNA Ethical Practices Code ("Code"), and the Ethics and Disciplinary Procedure ("EDP") and to ensure compliance with Section 411 of the Employee Retirement Income Security Act of 1974, it is hereby declared to be the policy of the General Executive Board that the names of all persons selected by the International Union or any of its affiliated or subordinate bodies to hold the position of Regional Manager, Assistant Regional Manager, International Representative, Special International Representative, Trustee or Supervisor to oversee the affairs of a labor organization pursuant to 29 U.S.C. 162, or labor trustees on any pension benefit plan or welfare benefit plan or other trust fund associated with LIUNA or its affiliated or subordinate bodies, including but not limited to PACs, LECET funds, and training funds shall be submitted to the Inspector General for review. If the Inspector General determines that such appointment is inconsistent with the objectives and purposes of the Code or the EDP, then in the case of an entity other than pension benefit plan or welfare benefit plan or other trust fund associated with LIUNA or its affiliated or subordinate bodies, including but not limited to PACs, LECET funds, and training funds, the

        Page 99

        appointment shall be rescinded; and, in the case of a pension benefit or welfare benefit plan or other trust fund associated with LIUNA or its affiliated or subordinate bodies, including but not limited to PACs, LECET funds, and training funds, the Inspector General shall so advise the fiduciaries of such fund. This policy shall apply as well to the appointment of all persons selected to fill any vacancy on the General Executive Board between the times of regular elections for such positions and to fill any vacancy in any of the positions named above.

        Page 100






        GENERAL EXECUTIVE BOARD'S POLICY ON CONTRACT PROCEDURES

        Pursuant to its authority under Article VIII, 2(c) and (n) of the Constitution of the Laborers' International Union of North America and in order to accomplish more fully the purposes of the LIUNA Ethical Practices ("Code") and the Ethics and Disciplinary Procedure ("EDP"), it is hereby declared to be the policy of the General Executive Board that all proposed contracts in excess of one-hundred fifty thousand ($150,000) dollars to be entered into by LIUNA or any of its affiliated or subordinate bodies shall be submitted to the Inspector General. If the Inspector General determines that entry into such contract is inconsistent with the objectives and purposes of the Code or the EDP, LIUNA or its affiliated or subordinate body may not enter into such contract. No proposed contract shall be subdivided or apportioned in order to avoid the intent and purposes of this policy. The Inspector General should be provided with such advance notice of the proposed contract as may be reasonable in the circumstances to allow him to form an informed judgment.

        Page 101






        GENERAL EXECUTIVE BOARD'S POLICY ON GIFTS OR DONATIONS OF UNION ASSETS OR PROPERTY

        Pursuant to its authority under Article VIII, (c) & (n) of the Constitution of the Laborers' International Union of North America and in order to accomplish more fully the purposes of the LIUNA Ethical Practices ("Code") and the Ethics and Disciplinary Procedure ("EDP"), it is hereby declared to be the policy of the General Executive Board that any proposed gift or donation of Union Property or assets to be made by LIUNA or any of its affiliated or subordinate bodies, where such gift or donation exceeds the fair market value of five thousand ($5,000) dollars or where the cumulative total of such gifts or donations made to all recipients over the course of any consecutive twelve (12) month period exceeds the fair market value of ten thousand ($10,000) dollars, shall be reported to the Inspector General. The Inspector General may disapprove thereof upon his determination that such gift or donation is inconsistent with the objectives and purposes of the code or the EDP. It shall further be the policy of the General Executive Board that any member who serves as trustee of any pension benefit plan or welfare affiliated or subordinate bodies, including but not limited to LECET funds and training funds shall recommend to the trustees of such fund that any gift or donation meeting one or more of the thresholds set forth above shall be reported to the Inspector General. If the Inspector General determines that such gift or donation

        Page 102

        is inconsistent with the objectives and the purposes of the Code or EDP, he shall so advise the fiduciaries.

        Page 103






        GENERAL EXECUTIVE BOARD'S POLICY ON REPORTING FELONY ARRESTS AND INDICTMENTS

        Pursuant to its authority under Article VII, (c) and (n) of the Constitution of the Laborers' International Union of North America and in order to accomplish more fully the purposes of the LIUNA Ethical Practices ("Code") and the Ethics and Disciplinary Procedure ("EDP"), and to ensure compliance with Section 411 of the Employee Retirement Income Security Act of 1974, it is hereby declared to be the policy of the General Executive Board that any member of the GEB, any officer of any affiliated or subordinate body, and all members serving as trustees on any employee benefit plan, fund, or trust shall notify the Inspector General in writing whenever it shall come to their attention that any member, employee, officer or labor trustee is arrested, indicted or other otherwise charged with any felony under the laws of Canada or the Unites States or any province or state thereof or with any offense relating to the conduct of the affairs of a labor organization or employee benefit plan, such written notice to be provided within five (5) calendar days of receiving notice of such arrest, indictment, or charge, whichever may occur soonest.

        Page 104






        GENERAL EXECUTIVE BOARD POLICY ON ACTIONS AFFECTING SUBORDINATE BODIES

        Pursuant to its authority under Article VIII, (c) and (n) of the Constitution of the Laborers' International Union of North America and in order to accomplish more fully the purposes of the LIUNA Ethical Practices ("Code") and the Ethics and Disciplinary Procedure ("EDP"), it is hereby declared to be the policy of the General Executive Board that all actions by the General Executive Board or the General President to suspend or revoke charters or consolidate or amalgamate subordinate bodies pursuant to Article II, 3 of the Uniform Local Union Constitution shall be submitted to the Inspector General. If the Inspector General determines that such action is inconsistent with the objectives and purposes of the Code or the EDP, the General President or the General Executive Board shall not take such action.

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