MWA Arbitration Update: Electronic Emergency Vote

In an unprecedented move, the Bilello administration sent an email to the Delegate Body on Monday July 16, at 6:05 pm calling for an immediate "emergency vote" to "hire outside attorneys to assist the District Council in resisting the recent arbitration award involving the MWA’s most favored nations provision."

"Please respond immediately to this email with your agreement or disagreement of this recommendation."

Never before in the history of the UBC has a District Council voted in this manner.

We reported that on May 3, 2012 the Manufacturing Woodworking Association (MWA) won in arbitration a lawsuit it brought against the District Council, having to do with a sweetheart deal made in 2009 by Dennis Sheils, (former disgraced Vice President of the corrupt Forde administration).

Just days before the August 5, 2009 arrest of District Council EST Michael Forde and nine others - including two mob associates - and charged with taking $1 million in bribes to let contractors cheat workers of wages and benefits, Sheil signed a new contract agreement on behalf of the District Council with a company called Gilbert Displays, Inc,  (an out-of-association contractor) that sets the wage and benefit package for journeymen employees at a rate lower than that in the July 1, 2007 - June 30, 2012 agreement with the MWA.

The MWA claims that under the "most favored nations provision" it is entitled to a refund of tens of millions of dollars paid to the Benefit Funds and last month cut the benefit rate paid on all employees to the $10.94 per hour Gilbert benefit rate.

In Monday's email, District Council Executive Officers, EST Michael Bilello, President Bill Lebo, and Vice-President Michael Cavanaugh recommend that outside attorneys Steve Cohen and Paul Shechtman of the firm Zuckerman Spaeder, LLP and Irwin Rochman of the firm Tesser, Ryan and Rochman LLP be retained immediately.

"Due to timing set by federal laws we need you to vote by this emergency process which has been approved by the Review Officer."

The attorneys have agreed to undertake this legal representation for a total flat fee of $150,000.00, including any and all appeals.

An informed source inside the council said we are still receiving votes but so far "everyone that has voted has voted yes with the exception of one."

Local 57 Delegate Greg Kelty, in response to the "emergency vote," wrote among other things, "Absolutely not! We have a set of By-laws that need to be followed. You, the Executive Officers of this District Council have had more than enough time to bring this issue to the delegate body."

"Where in the by-laws does it give you or Dennis Walsh the authority to circumvent the NYCDCC by-laws?"

"WHERE IS THE TRANSPARENCY THAT WAS PROMISED BY THIS ADMINISTRATION?"

"Why has this become an emergency? You have had several months and many meetings since this arbitrators decision to act yet you wait until the last minute?"

The District Council By-laws among other things requires the delegate body to debate, review and approve or reject, in advance all expenditures of the Council.

If the delegates agree and approved to hire these attorneys, it is expected that they will appear at the schedule arbitration hearing Thursday July 19, at 10:00 am.

The attorneys will "dispute the arbitrators decision" and present questions which will involve the calculation of the "damages" caused to MWA employers by the Gilbert agreement an informed source said.

We also reported that the Benefit Funds has sued the MWA seeking an injunction which would restore the benefits in place before the Gilbert/MWA arbitration ruling.

In response to an email Review Officer, Dennis Walsh said, "If the damage calculation would materially harm the Union and impede the goals of the Consent Decree and the Stipulation and Order, I would seek an order from Judge Berman asking for him to intervene."

Rank and file carpenters are planning a demonstration in front of the American Arbitration Association, 1633 Broadway (Btw. 50th & 51st Streets) at 9am.

Also yesterday I sent the following email to the District Council Executive Officers:

While I agree with the hiring of outside counsel to assist the District Council in resisting the recent MWA arbitration award, I do not agree with the process of this emergency vote.

I have many questions and would appreciate an answer to the following:

1. Why was there no discussion about this at Wednesday's delegate meeting or the June meeting? I waited three hours for this subject to be brought up and President Lebo abruptly adjourns the meeting without taking questions for the good of the order.

2. Explain what federal laws you are talking about. "Due to timing set by federal laws we need you to vote by this emergency process."

3. Why has there been a virtual news blackout on the MWA topic and when will you inform the membership about this topic, is this what you mean by transparency?

4. Why the last minute hiring of outside council, the arbitration award was on May 3, is yesterday the first time you realized you need outside help, when was the decision made to hire outside help?

5. Where in the by-laws does it give you the authority to circumvent the NYCDCC by-laws with this emergency vote. Its only an emergency because you made it so by waiting untill the last minute to realize you need outside help, please explain because I am confused.

John Musumeci
Local 157 Delegate