3-20-13 letter to rmb document 1280

8/23/2019 3-20-13 Letter to RMB Document 1280

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ffi1 ~ , . ~ ~ ~ 2 ~ 3 ~ ~OCUMENTi EL!"CTRONICALLYFILEDIi DOC#:\ DATE FILED: ()3i')..o/l'b n ' I ' \ ~ H A M B E R S OFOM.BERMANe(elt-' -Ie ().c.Lt

Demian D. Schroeder14 Meadow StreetBrooklyn, NY -11206March 20, 2013BY HANDThe Honorable Richard M. BermanUnited States District Judge : : R ~ p ~ 7 1 1 !?..J,..,J ".'i?....AIaniel Patrick MoynihanUnited States Courthouse500 Pearl Street Richard M. Berman, U.S.D.J.New York, NY 10007-1312

.S.O.J.

Re: United States ofAmerica v. District Council of New York City and Vicinity of the UnitedBrotherhood of Carpenters and Joiners ofAmerica, et al., Case 1:90-cv-05722-RMB-THKDear Judge Berman:In regard to the execution of the District Council/Wall-Ceiling contract (CBA) dated March 12, 2013as set forth by the Court's March 13, 2013 Order [Document 1255] I submit for Your Honorsubsequent observations relevant to the Case:During the District Council Delegate Body meeting of March 12,2013 Delegate John Musumeci ofLocal Union 157 brought to the attention of EST Michael Bilello two discrepancies within the WallCeiling Agreement.1) Delegate Musumeci's identified the non-existent "stamp plan" (referred to by side-letterenclosure of District Council attorney Murphy in submission [Document 1272J to YourHonorable Court on March 15, 2013.) Said language needs to be stricken from the CBA.2) Delegate Musumeci then presented a second discrepancy to EST Bilello within the WallCeiling Agreement regarding an hourly-allocation of $2.12 to the Welfare Fund. Though notvested by the August 5, 2011 District Council Bylaws with authority to do so, and in absenceof approval from the Delegate Body under its inherent and controlling plenary power andauthority, EST Michael Bilello entered into an illegal agreement on behalf of the DistrictCouncil with the WC&C and increased the Welfare Fund contribution by $2.12 per from

$11.25 to $13.37.EST Bilello was questioned directly by Delegate Musumeci why he would execute a contractallocating wage rates and fringe benefit contributions without debate or vote by the Delegate Body.The EST has no authority either express or implied which allows him to subvert and hold untohimself a power not reserved to him, thus his illegal actions require a veto by the Review Officer.

Case 1:90-cv-05722-RMB-THK Document 1280 Filed 03/20/13 Page 1 of 12


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Page 2EST Bilello refused to answer questions directly, and was conspicuously silent to the extent ofDelegate Musumeci's remaining allotted time. Though District Counsel attorney James Murphy andthe Review Officer Dennis Walsh were present, neither of them approached the dais to provide anexplanation for assembled Delegates, and attending rank-and-file Membership in the back gallery.Contrary to the false claims stand the alleged wage & benefit increases "guaranteed throughout theterm of this agreement,"as it is immediately destroyed by Executive Secretary-Treasurer's (EST)fraudulent use of the illegal reallocation clause.There remains an urgent need to investigate the legitimacy of the entire process within the DistrictCouncil administration with specific regard to the District Council EST, Officers, and Benefit FundTrustees failure to acknowledge or abide by the by the August 5, 2011 by-laws approved by thisHonorable Court.The lack of oversight provided by the United States Attorney's Office and the Court appointedReview Officer for vetting contract language, or enforcing by-laws which they ostensibly authored isalarming. The second discrepancy Delegate Musumeci found is particularly disturbing as it involvesthe illegal transfer of approximately $38,340,000 dollars of rank and file member pay raises to theWelfare Fund for one year. Over the proposed life of the contract expiring June 30, 2017 this wouldamount to an illegal reallocation of $166,012,000 dollars (4.33 years x $38.34M) to the Welfare Fundbefore the ink is dry on a ruling from this Court.The District Council's program of illegal exactions and extortion of members Vacation Wages (BlueCard See Attachment No.1 to 7) are prime examples which present the issue of an ongoing patternof continued fraud and racketeering, none of which should be sanctioned by the U.S.A.O. or the R.O.- yet, in absence of your intervention, correction and a proper Order from this Honorable Court, itshall continue unabated.The August 5, 2011 By-Laws, Section 4(B) state:

(B) The full plenary power and authority of the District Council is hereby vested.without limitation. in the Delegates to the Council that shall collectively form theCouncil Delegate Body. In accordance with Section 7 of these Bylaws, the Council DelegateBody shall be elected by the rank and file members of the United Brotherhood of eachaffiliated Local Union. There shall be a total of One Hundred (100) Delegates to the DistrictCouncil from the Local Unions, such Delegates to comprise the Council Delegate Body. EachLocal Union shall have at least one Delegate to the District Council, with the remainingDelegates allocated proportionally amongst the Local Unions based upon the totalmembership of each Local Union as a percentage of the aggregate membership of all LocalUnions of the District Council. The Council Delegate Body shall exercise the authoritygranted to it in Section 5 of these Bylaws by majority vote and each Delegate shall be electedfor a term of three (3) years. In the event of a tie vote, the President shall cast the tie-breakingvote.



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The contract proposal presented in Court on February 27, 2013 and as executed March 12, 2013 states:WALL-CEILING CBA - ARTICLE XII, Section 8. Wages & Benefits - Wage and Benefitincreases are not tied to any benchmarks such as total hours worked and are guaranteedthroughout the term of this agreement. Wage rates and fringe benefit contributions withinthe bargaining unit shall be determined and/or reallocated by [the] Union at its solediscretion.

In direct contravention to NYCDCC By-Law Sec. 4(B) stands the continued fraudulent attempt bythe District Council EST, its Officers and Executive Committee members, and the Wall-Ceiling &Carpentry Industries of New York, Inc. and their joint desire to extinguish via collective bargainingagreement (CBA) the Council Delegate Body's vested rights stated above, and thus negate its plenarypower and authority which are without limitation.Given the United States Attorney and the Review Officer are well aware of these continued abusesof power and have failed to act, the only prospective remedy going forward is an Order from thisHonorable Court directing the District Council and the Wall-Ceiling & Carpentry Industries of NewYork, Inc. to expunge Article XII, Section 8 in its entirety from this CBA and to apply this Order toany/all successor agreements and/or Memorandums of Understanding (MOU) which the DistrictCouncil attempts to execute both now or in the future.The thirty-eight million, three hundred & forty thousand dollar pay raise, totaling $166M over the4.33 year life ofthe contract, belongs in the rank & file member paychecks. The NYCDC andcontractor association cannot appropriate it to another use without proper motion, discussion, debateand the binding vote of the Council Delegate Body as vested and held unto them under By-lawSection 4(B).To allow this to occur would in essence mandate Court approval of the conversion/misappropriationand sanction a plan of out and out extortion both of rights granted and of monies/raises duly owedand guaranteed throughout the term of this agreement.We pray the Honorable Court remedy this situation once and for all times, less the Court loses itsinherent authority.Respectfully,

/ 3 ~ ~ P M l / l f } - { ~Demian D. Schroeder3-- 2..0 - Is

Enclosure



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cc: BY E-MAILBenjamin H. TorranceAssistant United States AttorneyCivil DivisionOffice of the United States Attorneyfor the Southern District ofNew York86 Chambers StreetNew York, NY 10007Dennis M. Walsh, Esq. Review Officer The Law Office of Dennis M. Walsh 415 Madison Avenue, 11th Floor New York, NY 10017 Bridget M. Rhode, Esq. Counsel to the Review Officer Mintz, Levitz, Cohn, Ferris, Glovsky & Popeo. P.c. 666 Third Avenue New York, NY 10017 New York City & Vicinity District Council of Carpenters Executive Secretary-Treasurer Michael Bilello 395 Hudson Street New York, NY 10014 James M. Murphy Counsel for the New York City & Vicinity District Council ofCarpenters Spivak- Lipton, LLP 1700 Broadway New York, NY 10019 John DeLollis Executive Director Association ofWall-Ceiling & Carpentry Industries ofNew York, Inc. 125 Jericho Turnpike, Suite 30 [ Jericho, NY 11753-1022 Mark A. Rosen, Esq. Counsel for the Association of WaH- Ceiling & Carpentry Industries of New York, Inc. McElroy, Deutsch, Mulvaney, & Carpenter, LLP 1300 Mount Kemble Avenue Morristown, NJ 07962-2075



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ADDITIONAL SERVICE via E-Mail:Robert F. Makowski,Sterling Dadone,Norman Saul,Raynier Gamboa,Veronica Session



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NE\V YORK O ( S T R I ( ~ l r " e t : f t T N C [ L OF CARPENTERS UN10N MANM:EMI'.:--ITBENEFIT FUNDS T1UlSTEfS 'rlt(JSTI'ESStuart R. GraBois K,'vin l ) ' ( .dl.l,w,iI.HlM icll.ld J. Fnrde Executive Dirct:tor ('., (hairll!.1llt:hairnun ,\il1""d (i . (i\,,,,,.\I\:r


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[ATTACHMENT]JlNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA.r

NEW YORK CITY DISTRlCT COUNCIL OF CARPENTERS

MICHAEl J FURDEExecu(llre Secrerary TreasurerPETER THOM .... 395 HUDSON STREETPresident NEW YORK, N.Y. 10014

PHONE: (212) 366-7500Vice PreSldenr INSTITUTED AUGUST 11TH. 11381 FAX: (212) 675-3118DENIS SHEIL 1lI

October 20, 2008Dear Brothers and Sisters:

We have been receiving questions from many of you about t\1


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[ATTACHMENT]

violations. However we often find ourselve!i in the incredible position of sending the verysame workers who conspired with these companies to cheat the Funds, vacation checksfrom the money we have collected. Can you imagine that? This is just wrong. Forexample. we collected unpaid benefits for almost one hundred cash hounds from Tri-Built(the fonner owners of which have been ordered by the federal courts to pay $1.3 millionmore). Additionally we stand to collect millions for cash paid out by On Par to over ahundred workers. There is no way we should ever send those workers a cash reward in theform ofa vacation cheekYor their misdeeds.

We collected unpaid benefits for almost one hundred cash hounds from Tri-Built (and the former owners have been ordered by the federal courts to pay $1.3 million more). We stand to collect millions for cash paid out by On Par to over a hundred workers. But there is no way we should ever send those workers a cash reward in the form of a vacation check for their misdeeds. To prevent this injustice, in March of th is year we encouraged the Fund Trustees toadopt a rule disqualifying anyone found guilty of defrauding the Funds by working forcash or supporting a scheme to pay workers in cash from receiving health benefits in

retirement. We also resolved that the fines imposed for these violations should berecoverable from the vacation benefit distributions. So the Blue Cards have been re-wordedto authorize the deduction of these fines from the vacation benefit distribution. If theseviolators don't have vacation monies to seize, we will collect their fines through other legalaction.How can you argue with that? The 99% ofour membership that is honest and hardworking will never be affected by thi.'f change. Monies recovered from the dishonestcheaters will help go to reduce overhead costs of your Union, including your anti-corruptionprogram.2. Union Member Privacv. The second reason new Blue Cards are beingcollected is to advance the conversion from social security numbers to UBC#'s. A space hasbeen added to record your UBC# in addition to your social security number. As time goeson, to protect your privacy, all of the Union's and Funds' record keeping will be maintainedby your UBC# instead of social security numbersYour Union's leadership wants you to know that they are committed to protectingyour wages and benefits from anyone who would try to take them away.Enclosed with this letter is another Blue Card and a se lf addressed postage paid returnenvelope for you to use. If you have not already done so, please sign your new Blue Cardand return it to the Benefit Funds office as soon as possible. [fyou have already done so, wethank you for supporting our efforts in protecting you and your family's future. [fyou haveany questions about this or any other matter regarding your Union, do not hesitate to contact

your Business Representative or the District Council offices.Fraternally,NYC District CouncilExecutive Committee

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b1:.ifENT1VACATION FUND AUTHORIZATION CARD

!'I!'EW YORKa n DISTRlcr COUNaL CARPThlERS \:KATION FUNDVAC-A (5M) 8106 395 Hudsoo Street New York. l ',y 10014-9889Fund Administrator (212)366-7300New York District Council 't!r 0ttUrS sooner.1. NAl\IE 6. LU#2. ADD 7. SS#3. CITY & STATE 8. D.O.B.4. ZIP MEMBER'S SIGNATIJRE DATE5. TEL

NEW VACATION FUND AUTHORIZATION CARD

NEW YORK CITY DISTRICT COUNClL OF CARPENTERS WELFARE l ) - VACATION BENEFIT395 Hudson Street New York, NY 10014-9889(212) 366-7300Fund AdministratorNew York District Council of CarpentersWelfare Fund - Vacation BenefitDear Fund Administrator.You are hereby authorized and directed to deduct from my ,,,,cation pay when distributed to me. such amounts as designat 0< as hereafter designated,by the Deltrie! Council of Carpenten; and my Local Union. if it is affiliated with the New Yorl< Dimict Council of Ca:rpente and remit such sums to IbeDistrict Coundl of Carpenters andlor my Local Union. The said amount so deducted represent' a working assessment:andlor fines or penalties which Jhereby direct to be paid to said District Councilor Local Union. as the case may be.ln !:he exlent permiSSible under applicable law, . . " ' .

This authorization shall be irrevocable except during a petiod of ten (IO) days prior to: (I ) one year from the date of the authorization (2) anyanniversary of its effective date and/or (3) termination of the applicable CoU""tive Agreement, whicheveroccurs sooner.1. NAME 6.W#2. ADDRESS 7. SS #3. CITY AN D STATE. 8. D.O.B.4. ZIP CODE 9.UBC# 5.PHOt-.'t

MEMBER'S SIGNATURE DATE

Being used toprevent ID theft.

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NO POSTAGE NECESSARY IFMAlLED [NV-5A (5M) 7/06 . . . . . 442 filII IN THEUNrrED STATES

BUSINESS REPLY MAILFIRSTCLASS MAil PERMIT NO. 4237 NEW YORK. N. Y.POSTAGE WILL BE PAID BY ADDRESSEE

NEW YORK DISTRICT COUNCIL OF CARPENTERSBENEFIT FUNDS395 HUDSON STREETNEW YORK, N.Y. 10014-9889

11," 1111 '"11111111111,,1,,1.1'11,1.1111111,1 STT: VACATION DEPT.(J1 .

NEW YORK CITY DISTRICT COUNCIL OF CARPENTERS WELFARE FUND - VACATION BENEFIT 39511udsol1 Street New York, NY 100149889 (212)366.7300 Fund Administratot . ~ ' "New YorkDistrkt Council of Carpenters' Welfare FundVacation Benefit Dear Fond Administrator. . . . . . ..'You are hereby authdrized and directed to deduct from my vacation ~ l i W b e n d j s t r i b u t e d to me, such amounts as.designated, or as hereafter designated,by the District Council of Carpenters and my Local Union, if It is a f f i l i a t e d . ~ i t h the NewYork District CcrullcilofCarpenters,and remit such sums to theDistrict Council of Carpenters and/or my. Local Union. The said amount so deducted representS' a working assessment and/or fines or penalties which Ihereby ~ i r c c t to ';e p'aid to said D i ~ l t i c t Council r L o c a ~ Uniol1. the' caSe may, be to extent permissible under lipplicable law. .'.ThIS authonzatlOn shall be irrevocable exc ept dunng. a pennd of ten. (10) dayspnor to: (1) one .year from the date of the authorization (2) anyanniversary of its effective date andlor (3) terttlinationof the applicable Collective Agreement,. whichever occurs sooner.

1. NAME 6.W #.2. ADDRi:SS 1.S9#3. CITY AND STATE 8:0.0.8.'4. ZIP CODE g.bBe#5. PHONE MEMBER'S SIGNATURE DATE



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- - - - - - - - - - - - - - -

[ATT;..QHMENTJNEW YORK DISTRICT LtOUNCIL OF CARPENTERSUNIONTRUSTEESMichael J. FordeChairmanPerer ThornasoenDenis SheilLawrence D'ErricoJohn E, GreaneyCharles Harkin

BENEFIT FUNDSStuart R. GraBoisExecutive Director395 Hudson Street

New York, N.Y. 10014 Telephone: (212) 366-7300 Fa.x: (212) 366-7444

February 19,2009

MANAGEMENTTRUSTEESKevin O'CaliaghanCo-Chairmanl\lfred G. GerosaGeorge GrecoDavid T. MebergPaul O'BrienJoseph Olivieri

"

Our records indicate that we do not have an updated signed Vacation Assessment Authorizationcard pertaining to working assessment and/or fines or penalties on file for you. In order toprocess your vacation check, authorization must be on file for all members.Please fill out the missing information and sign at the bottom this authorization and return it to usas soon as possible in order to receive your March vacation check which is approximately$1,544.75. This figure is based on hours that are currently in our system. A self-addressed,postage-paid envelope is provided for your convenience.Dear Vacation Benefit Administrator:You are hereby authorized and directed to deduct from my vacation pay when distributed to me,such amounts as designated, or as hereafter designated, by the District Council of Carpenters andmy Local Union, if it is affiliated with the New York District Council of Carpenters, and remitsuch sums to the District Council ofCarpenters and/or my Local Union. The said amount sodeducted represents a working assessment and/or fines or penalties which I hereby direct to bepaid to said District Council or Local Union, as the case may be to the extent permissible underapplicable law.This authorization shall be irrevocable except during a period of ten (10) days prior to: (1) oneyear from the date ofthe authorization (2) any anniversary of its effective date and/or (3)termination of the applicable Collective Agreement, whichever occurs sooner.

Members Signature________________ Date________Date of Local Union

Phone

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http:///reader/full/1,544.75http:///reader/full/1,544.75


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[ A T T A ~ E N T lNE\vYORK DISTRICT \....OUNCIL OF CARPENTERSUNION BENEFIT FUNDS MANAGEMENTTRUSTEES

~ 1 i c h a e l J. FordeChairman

Stuart R. GraBoisExecutive Director

TRUSTEESKevin O'CallaghanCo-Chairman

PeterThomassen Alfred G. GerosaDenis Sheil 395 Hudson Street George GrecoLawrence D'Erri

3-20-13 letter to rmb document 1280

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