Delegate Meeting Report

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Delegate April

‘Labor’ pains at Carroll Gardens job site

By Gary Buiso

A controversial Carroll Gardens development continues to be a flashpoint for protests, with union officials this week blasting a contractor on the site for exploiting his non-union workers.

On Tuesday morning, about 40 members of the carpenter’s union picketed the project, located at Second Place and Smith Street, where a 48-unit, seven-story residential building has topped out above the Carroll Street station.

“This contractor is undercutting the area standard wages and benefits,” said Andres Puerta, a representative for the District Council of Carpenters union, which claims that R&B Drywall, a subcontractor on the project, pays workers $10-$18 an hour, without benefits.

The union rate for the same work is $42 an hour, plus benefits, Puerta said.

R&B Drywall owner Howard Schneidler said he had no intention on changing the practices of his 25-year-old business — which pays $20-$25 per hour, he said.

“We’re a non-union shop, and they think that because everyone doesn’t pay union wages, everyone is underpaid,” he said. “The owner can’t pay the union’s exorbitant prices.”

Moreover, Schneidler said, he’s under no legal obligation to pay union scale.

Puerta said more protests are planned, but it is unclear what impact, if any, they will have on hiring practices. He insisted the issue is not about union versus non-union labor.

“The goal here is to demonstrate what we feel are exploitative working conditions — whether the owners or contractors change their mind, that’s up to them,” he said.

The building at the corner of Smith Street and Second Place has been controversial from the get-go.
In 2007, residents protested the proposed building’s size, claiming it overwhelms the low-rise neighborhood. In the wake of those protests, Carroll Gardens was rezoned in 2008, but a city panel determined that enough of the 70-foot building’s foundation had been poured to allow work to continue — even though the zoning change now caps buildings at 55 feet.

McCarron Letter - Local Union 247

Carpenters Letter

New York City District Council of Carpenters helps carpenters earn college degrees

BY Jonathan Balthaser

Alex Johnson doesn't crumble working under often brutal conditions, erecting walls, joining girders and welding steel as a carpenter.

But his first day of college terrified him.

"I was scared as hell," said the 33-year-old Bronx resident. "I didn't think I could do it."

Johnson enrolled last September in a special two-year-old program organized through the New York City District Council of Carpenters that helps members earn associate's and bachelor's degrees.

Students take classes in Tribeca at the State University of New York 's Harry Van Arsdale Jr. Center for Labor Studies, a program that focuses on educating trade workers.

Carpenters always have been able to attend the school. But now apprenticeship classes taken at the Council of Carpenters Labor Technical College count for as much as 32 college credits, so most students matriculate with half of their degree already completed.

"The incentive of the 32 credits was huge," said Johnson, a carpenter for the past 11 years. "In my eyes, it would be stupid for me not to do it. If I'm giving it to you on a silver platter and you don't take it, that's dumb."

Mike Merrill, the dean of the Van Arsdale Center, said it was high time that technical colleges received college accreditation.

"Wage earners are disadvantaged in that their apprenticeship programs don't usually count for college credit," said Merrill. "Dancers and painters, for instance, their work is recognized. I don't see the difference, except in ideology."

The carpenters union is getting each of its apprenticeship programs evaluated for college credit by the National Program on Noncollegiate Sponsored Instruction, a state-run group that accredits educational programs conducted by noncollegiate organizations.

The millwrighting, cabinetmaking, and building and construction carpentry programs have been approved. College credit will soon be considered for dockbuilders, piledrivers, and timbermen.
The carpenters union is making a concentrated push to educate more of its members.

"The union movement needs college-educated leaders at all levels, including the rank-and-file. It cannot effectively represent or be advocates for the interest of working people and their families without confident, articulate, well-educated leaders who know who they are, what they believe in, and what they have to do to secure their fair share," union promotional material states.

So far, 30 students have enrolled in the program, and the first is set to graduate with a bachelor's degree in June.

At the Van Arsdale campus, carpenters take a range of general education courses, including several that focus specifically on the history of the labor movement.

"You go to college not to leave the union, but to lead it," Merrill said.

Like all other college students, one of the greatest burdens for carpenters is financial.

Classes at SUNY cost $207 per credit, so tuition will set back students at least $6,600. The carpenters union currently does not offer scholarships.

Johnson made it through his first day of school, and now says the associate's degree he's pursuing is just the first step of his college education. After he graduates, he is interested in construction management or becoming a union organizer.

"When I'm done, I'm going to continue to go to school," he said. "I'm going to go all the way. Maybe Ph.D. Go for it. Why the hell not?

"My biggest mistake was putting a limit on myself."

District Council Accounting Progress Report

In an effort to make our District Council more fiscally responsible, the United Brotherhood of Carpenters hired Certified Public Accountant Terence Mooney to audit the accounts and records of the Council during the time period between July 1, 2006 and August 9, 2009.

During the October hearings at the Javits Center, Mr. Mooney presented a report with recommendations for the District Council to achieve this goal. The following is an update on how we have addressed each item noted by Mr. Mooney.

(John's note: It was because of former President Pete Thomassen's leadership, policies and recommendations that our Council did not preform the necessary standard of care established by the UBC and Department of Labor. Internal controls were lacking and the affairs of the Council were conducted in a manner detrimental to the welfare and best interest of the Council and its members, yet the UBC in their infinite wisdom chose not to hold Thomassen responsible and instead name him assistant supervisor.) 
acct

EST Pat Morin CNBC Charlie Gasparino & Forbes’ Neil Weinberg Discuss Unions Exposed to Madoff

The financial carnage coming out of the Bernard Madoff investment scandal is now spreading from charities and wealthy individuals to labor union pension funds.

In recent days, several have fessed up to their members their significant exposure to Madoffs investment scheme, which will result in massive losses to their members. CNBC has learned that one union, the Carpenters local in Syracuse, NY, has lost the majority of the $100 million to $150 million it had in pension money because of its dealings with Madoff, people close to the matter said.

The unions money manager, JP Jeanneret Associates of Syracuse, didn't return a telephone call for comment.

The Syracuse carpenters local isn't alone. Pat Morin, business manager of Empire State Carpenters Union, is sifting through the wreckage in his own portfolio, which at the end of June had around $800 million in assets under management.

Morin says his fund has exposure to Madoff as well, largely the result of consolidation in union pension funds where locals like Syracuse had transferred money to his oversight.

Syracuse consolidated in June, but that doesn't mean that the Syracuse fund will now be covered by money in the larger pool. Morin says pension assets remain segregated at least for a period of time, meaning that Syracuse may have to shoulder the entire Madoff hit on its own, which one person close to the matter said was nearly all the money it had under management. Morin declined to comment on the Syracuse exposure.

Empire State Regional Council--SUPERVISION HEARINGS SUMMARY

The United Brotherhood of Carpenters and Joiners of America is looking into allegations that a union representing carpenters across the state disproportionately burdened upstate members with millions of dollars in investment losses stemming from Madoff’s fraud.

The UBC has scheduled hearings in Albany on actions taken by the Empire State Regional Council of Carpenters, which is based in Westchester County. Below is commentary and testimony by UBC brother Richard Dorrough.

ROBBED AND FLEECED UBC MEMBERS CONDUCTED THEMSELVES IN A STELLAR MANNER

I attended the first day of hearings on March 30, but due to an emergency missed the second. My testimony was read into the record by brother John Newell. The turn out was much larger than they expected. They had to open a second room to accommodate members and the first day was still wall to wall standing room only.

The member presence was mostly a mix of downstate and central New York members with a rather small but committed turnout of Albany members.

Local 370 members were there none the less. At all times the membership conducted themselves in a manner befitting UBC members. There were no outbursts or disruptions despite the volatile nature of the hearings.

Upon entering the hotel members were directed to a basement floor meeting room in the Crowne Plaza.

Members were required to show ID and checked against the list. Security was present and members were forced to be scanned before entering the room.

Perhaps the Empire Council and the UBC did understand the severity of stealing member’s futures and robbing their accounts. I arrived at 8am and already the room was full. I signed for testimony and was number 38.

The hearing was called to order by Chairman Draper at 8:30 am. The first two called to testify were Frank Spencer and Jack Simmons.

It was clear from the start that Morin’s future is cooked. Both Spencer and Simmons accused Morin and Simmons quite aggressively, threw Morin under the bus.

It was rather amusing to hear the man who put us in these funds and has lined his pockets with member’s monies berate Morin.

If anyone besides Morin is to be held accountable it should be Simmons and Fuchs. What a poor choice by the UBC as a character assassin against Morin.

Go back and check the 5500s, 990, LM2s and LM30s to see how much Simmons has raked out of the members. The records show that much of this devastation Simmons orchestrated before he bailed. Check to see if he and Hicks emptied their accounts when they left. Morin was offered the chance to testify early but choose to wait.

Many officers, ex officers and delegates testified. A rather testy exchanged occurred later in the day between Dave Davies and Patrick Morin. It appeared Morin does not like members having meeting minutes for evidence.

All the testimony, with the exception of two members who made vain attempts to make "I Love Morin" speeches, were negative against Morin and the Empire Council.

Many disturbing allegations were made. The atmosphere of harassment and intimidation alleged in the Empire Council clearly exists based on the testimony given.

Morin choose to testify in the second session and it was clear from the start that the "Pit Bull" Chairman Draper was nobody's fool and was not going to accept lies.

He and Morin shared many heated exchanges.
Morin set the stage in his opening statement when he accused the UBC International of bias in its decision to hold these hearings and question his actions.

Morin stated "Other pension funds reduced their accrual rates such as the Adirondack Pension Fund and the International did nothing. Where were you then??" The tone had been set and Chairman Draper responded with vigor.

Mr. Draper was primed and ready as he questioned Morin. He was not accepting the answers and excuses Morin gave and told him so.

He told Morin to the effect he "was not born yesterday."

At one point he basically called Morin a liar. "You can lie here to me today Pat but you will not lie to the next people you are going to appear before.

You are under oath here today. Thy will read what you testified to today and we will see if you change you testimony to them."

Draper grilled Morin over and over on many issues and parts of his testimony.

Morin was backed into a corner and the exchange became quite terse many times. Draper was nobodies fool and had the tenacity of a pit bull. Morin was finally allowed to slink away.

Before the break Chairman Draper called out to the seated and standing members for Empire Council President David Haines.

Haines was standing against the side wall and identified himself to the chairman.

Chairman Draper asked Haines if he was scheduled to testify. He responded he was not. Chairman Draper asked him to testify since he was mentioned many times in what seemed to be situations that implicated Morin.

Mr. Haines REFUSED to testify.

Chairman Draper made him aware that he felt his testimony was very important and that while he could not make him testify he was asked to reconsider and testify.

Haines never testified. It was obvious he was not going to bury Morin.

The day was an interesting experience and, one although we could hope would never be necessary, was a day not to be missed by any UBC member.

It was a fine example of UBC justice at work. It was the example all disenchanted members needed to see.

It was proof that if you stand up and fight back you can bring these arrogant and pompous little men to justice.

For whatever motive the UBC was present and called these hearings they were in fact there.
These self proclaim untouchables were put on the carpet and if common sense prevails will be gone and prosecuted by the proper authorities.

We can only hope the UBC International will send a clear message to the membership and the signatory contractors that enough is enough.

Let us hope they do not replace these corrupt elements with more of the same.

Testimony of Richard Dorrough

Carpenters await report on losses

By Matt Glynn

The United Brotherhood of Carpenters is awaiting a report and recommendations following hearings into how a statewide Carpenters organization allocated losses from Bernard Madoff’s fraud.

A committee appointed by the Washington, D. C.-based UBC held two days of closed-door hearings in Albany this week. It was responding to allegations that the Empire State Regional Council disproportionately burdened upstate unionized carpenters with losses stemming from investment losses tied to Madoff. The estimated $160 million in losses impacted the members’ pension, annuity and health funds.

The UBC said more than 45 members and union leaders presented testimony but did not release details of the testimony.

The Empire State Regional Council’s territory covers New York State, excluding New York City. Its affiliated unions include Local 289, based in Cheektowaga. A report prepared by the hearing committee will be presented to the UBC’s General Executive Board for consideration and possible action, the UBC said. Monte Byers, chief of staff for the UBC, said he did not know when the report might be presented.

“Those who do not learn from history are doomed to repeat it”

Back to the Future

An Open Letter To Supervisor, Frank Spencer

(original posted 9/11/2009)

I am writing to you in response to your letter to the membership dated August 25, 2009. You wrote, as supervisor of the “emergency supervision” your “first and only concern is the membership”, and you have “every confidence in the members of the district council”.

Forgive me for some skepticism here, given your prior performance as supervisor of the 2007 Local 157 “emergency supervision”, where among other things you refused to answer membership questions (see video) which were emailed and posted on local157.blogspot.com, a blog I started to keep the membership informed.

Specifically I am troubled by your highly questionable action of naming Peter Thomassen as your assistant supervisor of the district council and naming Martin Deveraux, business manager of Local 608.

As supervisor you could have used your authority and named an individual from outside the district council and/or local union untouched by scandal and corruption. Maybe some other business manager or business agent could have brought a fresh perspective and new direction to both council and local operations. Instead by naming Mr. Thomassen who has become embroiled in so many disgraceful scandals that he has proved himself entirely unworthy of membership trust or authority you have signaled to the membership you are not serious in cleaning up the District Council and its “business as usual”.

In June of 1996, the first supervision of the district council, UBC General President Douglas McCarron appointed Vice President Douglas Banes, as supervisor.

In contrast to your predecessor, (with no arrest or indictment of any council officer) Banes removed the entire elected administration from office, including the president, first vice president, second vice president, secretary-treasurer, and trustees to the benefit funds.

At the time GP McCarron stated, that the administration among other things “had mismanaged the district council's funds, hired unnecessary employees to administer the council, leased luxury cars and run up excessive legal bills”.

In December 1999 as the council emerged from UBC supervision, Mike Forde campaigning for EST promised the membership that this would be “the most ethical and corruption free administration ever”. He picked Thomassen as his right hand man for the most important and powerful intersection between the membership and the district council, president and chairman of the delegate body.

Contrast the actions of 1996, with your actions of only removing Forde as EST, after being arrested and charged with a 29-count indictment on August 5, 2009 for corruption, racketeering, bribery and perjury, in a conspiracy that stretches over a decade, involving six contractors, business agents, business manager, benefit fund trustees, shop stewards, associates, council employees and testing positive for cocaine use, is startling to say the least.

A poll on local157.blogspot.com shows 83% do not trust you to supervise the district council’s affairs honestly and support the federal government being brought in to jointly administer the supervision.

Peter Thomassen along with Dennis Sheil was part of Mike Forde's “Unity Team”. Both were and are his biggest supporters, defenders and enablers of the “culture of corruption” that exist at the district council.

As a delegate to the district council from 1999 to 2008 and a candidate for district council vice president in 2008 I can state conclusively that Mr.Thomassen never once informed the delegate body about the corruption the Independent Investigator, Walter Mack, discovered and reported in numerous reports (Boom, Tri-Built, Special Request, among others) taking place at the district council.

From 2003 thru 2005 Mr. Mack uncovered nests of job site corruption, where shop stewards routinely falsified reports and accepted bribes to allow certain contractors to routinely operate large “cash jobs” on major construction sites without detection from the district council.

Mack’s detailed reports show not only that corruption continues to infiltrate the union, but also that District Council officers and business agents have done an “inadequate job of weeding it out and have been either complicit in corruption or, at a minimum, not doing their jobs”.

On June 3, 2005 Mack filed a report on Tri-Built Construction, a corrupt drywall contractor that operated in New York City and Long Island. In the report, among other things, Mack wrote “unfortunately, I have been stymied in my attempts to explore how and with whose assistance a corrupt employee would be able to remove shop steward reports from the District Council’s offices. At the current stage of the investigation, it is impossible to know how many other contractors were able to cheat the District Council and the Benefit Funds with this crude but effective methodology, but I am certain that others exist”.

It is well documented that the district council knew of Tri-Built’s corruption as early as April 2004, most likely even earlier, and did nothing to stop it. No job shut downs, no audits, no business agents informed, no shop stewards removed, nothing.

In November of 2004 Thomassen obstructed Mack's investigation of Tri-built and hired Kroll to take over the investigation from Mack. Thomassen never informed or reported to the delegate body Mack's detailed reports, investigations of corruption, the blocking of Mack's investigation and the hiring of Kroll. To date the findings of the Kroll investigation are unknown.

Time and time again what was Thomassen response to Mack’s revelations about corruption, ignore it and attack the messenger.

In December 2004 the District Council, led by Thomassen, gave notice to Mack by letter, of its intent to fire him; the termination letter cites no reason or cause for terminating Mack.

Thomassen informed the delegates of this action, after the fact on May 11, 2005 at a regular schedule delegate body meeting. Thomassen said the council was unhappy with the “run away cost and the abuse” from Mack. “You don’t know what we went through; It’s been a rough two years of abuse to our members and business agents.” Thomassen also chastised the frivolous anonymous callers to the Hotline Mack operated saying, “if a member has corruption to report he should leave his name”. In the two years that Walter Mack has been investigating Thomassen said, Mack “did not find one business agent doing anything wrong".

Supporters of Mack believe he was fired because of the corruption he was uncovering (which Forde and others have been indicted) and the lack of will by the District Council Officers to combat it.

Mack also reported that the Districts Councils “anti-corruption program” lacked any truly independent investigator responsible for looking into allegations of corruption and found that the District Council was guilty of “at the very least negligence” and has been compromised and questioned the council’s commitment to combat corruption.

It should be noted that while Forde was distracted with his prior indictments and alleged drug use, twice he would be tried, the first he would be convicted and acquitted on appeal; the second he would be acquitted at trial, Thomassen was running the day-to-day council operations (Forde said as much during the 2008 elections).

In June 2001, in violation of the UBC constitution, 1994 Consent Decree and more importantly the trust of the membership, Thomassen along with Forde secretly bargained away the job referral rules, without notifying or seeking the approval of the 15-member negotiating team, the 88-member elected delegate body, the rank-and-file and the federal government who has oversight supervision.

On November 5, 2004 Mack filed a report on the 50/50 Rule and Request System. Mack concluded that bargaining away the job referral rules and the “current request system reduces the out-of-work-list into a paperwork dance with little value to anyone but the contractors who can select the Carpenters they want to work for them.” All the while, the district council encouraged out-of-work carpenters to use the out-of-work list as their source of employment.

Once again Thomassen never informed the delegates about Mack’s report or the devastating effects of the “request system”.

According to Thomassen's sworn testimony on April 12, 2005, the council negotiated the 2001 contract change with Joe Olivieri, (also indicted with Forde) a benefit fund trustee and director of the Association of Wall and Ceiling and Carpentry. According to Thomassen in exchange for “the best contract we have ever negotiated”, he “sold” the job referral rules to the association, and gave them what they wanted, the ability to request and hire 100% of the carpenter work force.

That contract change which Forde and/or Thomassen never reported to the delegates or membership, eviscerated the job referral rules, effectively rendered the 50/50 rule a nullity, left carpenters vulnerable to corruption, reduce the out-of-work list into a meaningless “paperwork dance”, violated the 1994 Consent Decree, led to a guilty of contempt charge on February 20, 2007 by the United States Court of Appeals, cost millions of dollars in litigation, left carpenters to languish on a phony out-of-work list without knowledge that their was little hope of getting a job, deprived the union of having at the job site carpenters whose primary loyalty is to the union rather than the contractor and led us to where we are today!

Thomassen deceived everyone, from the delegate body, to the membership to the federal government. For that act alone Pete Thomassen should be brought up on charges for defrauding the union and egregious breach of fiduciary responsibility.

Mr. Thomassen has never acknowledged any wrong doing on his part and has stated, everything he did “was with the knowledge of the delegate body”. Minutes of the delegate body meeting and current indictment however do not support that claim.

Thomassen also has never ever presented to the delegate body (which he has a duty to do so) a detailed budget of the district council for approval by the delegates. Since the “Unity Teams” election in 1999 District Council spending has skyrocketed from $19 million to over $50 million in 2008!

In June of 2003, Thomassen and the benefit fund trustees created a new benefit fund know as the “Supplemental Pension Fund”. Thomassen at the time told the delegates “our welfare fund was doing so well that the trustees have decided beginning July 1, 2003 to reduced the hourly contributions in the welfare fund by $1 per hour and reallocate the $1 per hour into this new fund”.

Thomassen also stated “this reallocation of $1 per hour from the welfare fund to the “supplemental pension fund” is seamless to the membership and only a temporary measure as a way to infuse some extra money into the pension fund to help build up the pension fund assets” and "the trustees will monitor the funds closely and move the $1 per hour back to the welfare fund should it become necessary."

Fast forward present day: this $1 dollar per hour “Supplemental Pension Fund” has now grown to over 100 million dollars where members see no pension benefit credit. Members have had a portion of their yearly hourly raises directed into the welfare fund and yet this “temporary supplemental pension fund”, which we never had before, still exists! It begs the question, why?

In all these action’s, Mr. Thomassen has failed to inform and has deceived the delegate body and the membership of this union that pays his salary. Time and time again Mr. Thomassen has mislead and lied to the membership and delegate body.

As president, Thomassen not only has demonstrated his moral failings, but his unwillingness to detect corruption and/or drug use taking place foot steps from his office. Instead he has enabled it, protected it, covered it up and watched it flourish on his watch.

Your appointment of Thomassen does not surprise me; this is not the first time you appointed an individual who finds himself at the center of corruption.

In the 2007 “emergency supervision” of Local 157 you appointed Lawrence D'Errico, business manager. D'Errico one of the five local 157 business agents and a benefit fund trustee appointed by Forde, at the very least had knowledge and witnessed daily corruption (which he has a fiduciary duty and obligation by law to report) detailed in the November 13, 2007 report by Independent Investigator, William Callahan. You also appointed Mike Forde assistant supervisor.

Your letter also states, “We will conduct a thorough internal investigation of all council operations and conduct a financial audit of council and trust funds”.

Who is “we”? The same individuals who have betrayed the carpenters and who have been running this criminal enterprise known as the district council? Anything less than a fully independent review and audit of the council and trust funds will show that your actions are phony, an attempt to cover-up and defender of the “status quo”.

If this were a real supervision you would have brought in a fully independent team from the outside to assist you in your efforts of rooting out corruption.

If this were a real supervision you would have used your granted authority and remove all Forde appointed trustees to our benefit funds and all individuals in council leadership position.

If this were a real supervision you would have immediately began drug testing all district council employees.

If this were a real supervision you would have visited each local and answered member’s questions directly and keep the membership updated on your progress, if this were a real supervision...

I look forward to you reporting back to the membership the findings of your through investigation.

John Musumeci


(originally posted 10/2009)
Rebellion 

Carpenters Union Big Brian Hayes Named In Bar Scam

BY Kerry Burke and Alison Gendar

A union official is accused of selling out his own members - getting a corrupt contractor to build his Manhattan bar by letting him hire nonunion workers on other jobs.

Brian Hayes, a business agent for Local 608 of the carpenters union, allegedly took thousands in cash, free labor and materials to build McGarry's on Ninth Ave. in Manhattan, prosecutors and union sources said.

In exchange, Hayes let the contractor pay employees at his work sites below minimum wage and off the books, and run a Bronx job without a union shop steward, officials charged.

"He's a hardworking guy who's been unjustly accused," said Hayes' lawyer James Froccaro, who declined to elaborate.

A state liquor license lists Hayes as the vice president of a bar at the address of McGarry's. Workers at the popular Irish pub declined to comment.

Hayes is one of nine union big shots, including carpenters union boss Michael Forde, indicted last summer on bribery and racketeering charges.

Forde was convicted in 2004 of taking bribes from a man linked to the DeCavalcante crime family, the mobsters that inspired "The Sopranos."

The verdict was tossed when a judge discovered that some jurors had read news accounts of the case, and Forde was acquitted on retrial.

Statewide Carpenters Union Eyed In Probe

Hearing on allocation of losses tied to Madoff

By Matt Glynn
Bernard L. Madoff is in prison, but unionized carpenters in New York State are still coping with the financial fallout from his fraudulent scheme.

The United Brotherhood of Carpenters and Joiners of America is looking into allegations that a union representing carpenters across the state disproportionately burdened upstate members with millions of dollars in investment losses stemming from Madoff’s fraud.

The UBC has scheduled a hearing today and Wednesday in Albany on actions taken by the Empire State Regional Council of Carpenters, which is based in Westchester County.

Douglas J. McCarron, general president of the Washington, D. C.-based UBC, laid out the allegations in a letter this month to Patrick B. Morin, the council’s executive secretary-treasurer. Copies of the letter were sent to members of affiliated local unions, including Cheektowaga-based Carpenters Local 289.

The 10-page letter offers a look into the financial ripple effect of Madoff’s $65 billion Ponzi scheme on some of its victims. In the case of the Empire State Regional Council, the impact hit individuals in the form of diminished pension, annuity and health funds for unionized workers at affiliated locals. The council says it has 15,000 members in a territory that excludes New York City.

Morin did not return a call to comment.

McCarron wrote to Morin that the UBC had received “numerous complaints” from local unions affiliated with the council over how the Madoffrelated losses had been allocated.

The total losses to the council’s pension, annuity and health funds were estimated at more than $160 million. The largest share of those losses, $97 million, was to the pension fund, McCarron wrote.

Madoff was arrested in late 2008 and later admitted to the Ponzi scheme. He is serving a 150-year prison sentence in North Carolina.

Buffalo-area victims of the scheme included Laborers Local 210, Bricklayers and Allied Craftworkers Local 3, and developer Howard Zemsky. Carpenters union workers had been identified in previous media reports as victims, but McCarron’s letter provides a more detailed account of the impact.

The letter refers to Syracusebased investment adviser J. P. Jeanneret Associates, a firm that placed money with Madoff on behalf of many unions in the state. Questions were raised at a meeting of the Empire funds’ board of trustees over whether Jeanneret was diversified enough in its investment products, the letter says.

“This appears to suggest that Jeanneret investments may not have been adequately diversified and raises questions regarding whether the Empire funds should have taken action to further diversify their assets to reduce the likelihood of large losses,” McCarron wrote.

McCarron also wrote that the UBC received information about possible financial irregularities within the Empire State Regional Council’s pension, annuity and health funds “and that these financial irregularities threaten the welfare of members within the council.”

The letter says it appears the Madoff losses were “disproportionately” allocated to former participants of the Upstate New York Carpenters annuity, pension and health funds, which were merged with the Empire State Regional Council’s funds before the Madoff fraud was uncovered.

McCarron said it appears the Empire Annuity Fund’s board of trustees approved allocating 75 percent of the fund’s Madoff-related losses to former participants in the Upstate fund —even though the Empire fund had assumed control of the former Upstate fund assets 2z years before the fraud was exposed.

The letter also says it appears that an investment of about $6.4 million in a Madoffrelated investment in December 2008 by the Empire Welfare Fund was allocated entirely to former Upstate Health Fund members, despite the Upstate fund having been dissolved and merged in early 2007.

“In addition to resulting in an inequitable allocation of losses, attributing such investment to the Upstate area appears to be fraudulent,” McCarron wrote.

Upstate members took a hit on an individual level, as their health reimbursement accounts and annuity accounts were sharply cut, the letter said. It recounts the story of one Upstate member who had to pay a monthly health insurance premium of $1,060 to avoid the termination of his health insurance.

Thomas Burke, president of Carpenters Local 289 in Cheektowaga, said he expects some of his local’s 1,400 members will probably testify at the hearing, but he couldn’t predict what the outcome of the process might be.

“We’re all going to have to wait and see what happens at the hearings,” Burke said.
Burke said however much an individual union member lost as a result of the Madoff fraud, the loss is significant.

“Any time you take a hit on a fraudulent scheme, it’s not coming back,” he said.

Local 747 in Syracuse said on its Web site it will provide buses for members who want to travel to Albany to testify at today’s hearing.

McCarron in his letter said the hearings will determine if supervision by the UBC over the Empire State Regional Council should be imposed.

Monte Byers, chief of staff for the UBC, said the hearings will not be open to the public. “This is a chance for the members to express their legitimate concerns,” he said.

Byers said he expects the UBC will release a statement following the hearings.

The UBC’s General Executive Board will make a final determination about the next step after the UBC’s Hearing Committee submits a report and recommendations, Byers said.

Crane Falls Against Financial District Building

by Sarah Wheaton

A crane tipped and fell against a commercial building in Lower Manhattan on Saturday evening. There were no injuries, the police said, but four buildings and part of a fifth were evacuated and traffic was rerouted.

No one was operating the crane when it fell about 7:30, the police said, and some cement fell off the building, at 80 Maiden Lane. The Fire Department sent numerous trucks to the scene, and firefighters were working to secure and remove the crane.

“We tried building up the pressure in the crane to no avail,” said Deputy Assistant Chief Robert Boyle, of the Fire Department. “We’re now at a standstill.”

Officials closed Maiden Lane from Water Street to Broadway and Pearl Street from Fletcher Street to Wall Street, and four buildings were evacuated, including 100 Maiden Lane, a residential building, as well as 2 Gold Street from the 25th floor down.

The base of the crane was in Louise Nevelson Plaza, a triangular slice of a sculpture garden across the street from 80 Maiden Lane.

“The crane had authorization to move mechanical equipment on to the top of 80 Maiden Lane,” Robert LiMandri, the buildings commissioner, said at a news conference. About 7:30, he said, “the boom drifted.”

“There’s minor damage to the parapet wall of the topmost facade of the building,” he said.
David Robertson, who lives nearby at 10 Liberty Street, said he was alerted to the crane’s fall by a noise that sounded like metal on metal. “You could’ve heard it half a mile away,” he said.

Mr. LiMandri said it was too early to tell if there was any negligence or wrongdoing. “We are certainly going to pull this crane out of service and we’re gong to do a full investigation,” he said.

Dave Lawrence, 26, who lives at 2 Gold Street, said he and his companion watched the crane being installed. “As it went up it was tilting, skewed,” he said. “As the crane got higher it was bad. We figured, they’re engineers, they must have it figured out.”

The couple left for the day, then returned to hear sirens. “We said, ‘I bet that’s that crane,’ ” Mr. Lawrence said.

The crane, which is owned by Bay Crane, looked precarious as it leaned on the corner of the building. Curious neighbors came out to watch — one woman even brought a bowl of pretzels.

Susan Stevens, who lives at 100 John Street, said she was listening to the radio when she heard sirens. “I’d be nervous now if there was a crane near my building,” she said.

Mohammed Bacchus, a security guard at 80 Maiden Lane, said he saw the crane begin to lean, then gradually fall toward the building. “It took about half an hour,” he said. “Then it just gently grazed the building.”

While the latest episode appeared to have caused minimal damage, it jarred a city that experienced two fatal crane collapses over a two-month period, the first of which occurred almost exactly two years ago. In mid-March 2008, seven people were killed when a crane slammed into residential buildings on East 51st Street, destroying a town house. And two construction workers were killed in May 2008, when a crane fell at a construction site on East 91st Street.

On March 8, James F. Lomma, the owner of the New York Crane and Equipment Corporation, pleaded not guilty to manslaughter charges stemming from the latter collapse.

Mr. LiMandri said the crane that fell Saturday was a mobile one used for relatively small jobs, and it had been used during the day, lifting mechanical equipment and building supplies.

As for the effort to remove the crane, he said, “We’re going to work all night.”

Update From Spencer

Fspencer Letter(2)

What Obama’s New Health Care Bill Means For Us

Unless you have been living under a rock lately, you are well aware that our country is about to see some major changes to health care. Health care reform was a top priority of President Obama and it has been very apparent as he has been very determined to sign his reform bill into law.

To be frank, I haven’t been following the whole thing as closely as I would like. I feel like I still need to do some homework to get caught up on the details, but below I have pasted in a great article that explains what the Obama’s health care bill will mean for us – this year, next year, and in the years to come.

If you are unsure of the details, I recommend reading it. There really are a lot of changes that will likely be affecting every American. It isn’t one of those obscure bills that only affects a small handful of people.

So, as the details continue to unfold – which I am sure this whole health care reform thing is just beginning, I will continue to post helpful info about it. Enjoy!

On March 23, 2010 President Obama signed the health care reform bill into law. While there are still differences that need to be reconciled between the various versions of the healthcare bill here is the timeline for the health care reform changes and how Obama’s health plan (”ObamaCare”) and health care reform affects you and your health insurance:

New Health Care Bill: Changes Happening in 2010

• Children age 26 and younger will be able to remain covered under their parents health insurance plans (this is increased from past age limits which were anywhere from age 22-25).
• Medicare recipients will receive a $250 rebate to help in closing the “doughnut hole” (with the goal being to close the doughnut hole completely by 2020).
• Health insurance companies will be banned from excluding coverage for pre-existing conditions for children.
• Adults with pre-existing conditions will be eligible for coverage into high risk health insurance pools until future health care exchanges are up and running.
• Health insurance companies will be prohibited from levying annual limits and lifetime limits on coverage.
• All new health insurance plans must provide coverage for preventative services with no out of pocket cost (all health plans will be forced to comply by 2018).
• Those companies that offer health benefits for early retirees ages 55 to 64 will receive assistance from a temporary reinsurance program.
• All new health insurance plans will have to comply with new regulations that lay out an appeals process for when health insurance claims are denied.
• Small businesses that employ less than 50 people are eligible for a tax credit equal to 35% of their health insurance premiums (this increases to 50% by 2014).

New Health Care Bill: Changes Happening in 2011

• Medicare will offer wellness visits for free one a year and personalized prevention plans. All new Medicare plans will offer preventative services with no out of pocket cost.
• Seniors enrolled in Medicare Advantage or the Prescription Drug Plan will receive a 50% discount on brand name drugs immediately with additional prescription drug discounts to follow.
• The current penalty tax of 10% on all distributions from a Health Savings Account before the age of 65 on nonqualified medical expenses will increase to 20%.
• A small business alternative to a cafeteria plan will be presented so that small businesses can offer tax free benefits without having to deal with the administrative costs of a cafeteria plan.
• Everyone earning more than $200,000 as an individual or $250,000 for those who file married filing jointly will have their Medicare payroll tax increased from the current 1.45% to 2.35%.

Health Care Bill: Changes Happening in 2013

• A $2,500 annual cap will be placed on all contributions to flexible spending accounts (amount indexed for inflation each subsequent year).
• The current tax deduction that employers receive for subsidizing the prescription drug costs of their employees who are eligible for Medicare Part D will be done away with.
• A 2.9% excise tax on the sale of medical devices will be put into place. Certain common items like glasses, hearing aids, etc. are exempted from this tax.
• The hospital insurance tax will increase .09% for those who earn more than $200,000 ($250,000 for those married filing jointly).
• Additional requirements on health insurance companies to implement uniform standards for exchanging health care information, electronic communication, and other measures to reduce insurance company administrative costs.
• The minimum threshold for being able to claim an itemized deduction for health care expenses increased from 7.5% to 10% of AGI although those over the age of 65 can stay at the 7.5% threshold through 2016.

Health Care Reform: Changes Happening in 2014

• All US citizens will be forced to have health insurance coverage considered acceptable by the US Government or else pay a fine of $95 in 2014, $325 in 2015, $695 in 2016 (capped at 2.5% of AGI). All of the fines are per person per year except for families have a cap on the total fine of $2,250 and the fine amount for children is half of the adult fine.
• Eligibility standards are implemented for newly formed health care exchanges.
• Businesses with 50 or more employees will face a fine of either $2,000 or $3,000 per employee for not offering health insurance coverage.
• Group health insurance plans have a maximum waiting period of 90 days.
• Health insurance companies are prohibited from using an individual’s health status to issue a policy or renew a policy. All pre-existing conditions must be covered and higher health insurance rates cannot be levied because of health, gender, etc.
• The eligibility standards for Medicaid will be changed to 133% of poverty for those who are not considered elderly.
• New annual fees will be levied on all health insurance providers based on an insurance companies market share and whose total premiums exceed $25 million.

Health Care Reform Bill: Changes Happening in 2018

• The “Cadillac” health insurance plan tax will kick in. An excise tax will be levied on all employer provided health insurance plans costing more than $27,500 for families and $10,200 for individuals (with increased limits for those considered to be in “high risk” professions).

Thoughts?
What do you think about Obama’s health care reform? Is it good for you? Good for the country?

This Will Not Stand

No one should be confused about the outcome of Sunday's vote in the House on the healthcare bill.

This is not the end of the fight. It is the beginning.

The fight will continue in the Senate where Democrats will now try to pass a reconciliation bill filled with "fixes" to the healthcare bill passed Sunday. Republicans are committed to holding the Democrats accountable for their vote and making sure they do not abuse the reconciliation process.

The fight will continue in the states where 38 of them have filed or are planning to file legislation that rebukes Obamacare's "individual mandate" that requires you to purchase insurance even if you would rather pay directly for medical care. In addition, Attorneys General from several states plan to file lawsuits challenging the constitutionality of the healthcare bill's individual mandate.

And most importantly, the fight will continue at the ballot box for the millions of Americans who refuse to be ignored. In the end, it is only by repudiating those politicians who voted for the health bill in free and fair elections that we can repeal this bill and start over on common sense, market-oriented, patient-centered health reform.

Defying the Will of the American People

The American people spoke decisively against a big government, high-tax, Washington knows best, pro trial lawyer, centralized bureaucratic health system.

In every recent poll, the vast majority of Americans opposed this monstrosity.

Sixty-six percent of Americans think the bill will make things worse or make no difference for themselves and their families (Gallup).

Forty eight percent of Americans think the plan is a "bad idea." Only 36 percent think it is a "good idea" (NBC/Wall Street Journal).

Only 17 percent of Americans think the bill will cause healthcare costs to go down. Nearly double that think their costs would go up (Pew).

House Speaker Nancy Pelosi knew the country was against the bill. That is why she kept her members trapped in Washington and forced a vote on Sunday.

She knew if she let the members go home their constituents would convince them to vote no.

Look at what happened with House Democrats Scott Murphy (N.Y.), John Boccieri (Ohio), and Brad Ellsworth (Ind.). The Center for Health Transformation commissioned surveys late last week specifically polling their constituents. We found deep and overwhelming opposition. In Rep. Boccieri's district, his constituents opposed the bill by a 61-33 margin. For Rep. Ellsworth, it was even worse: 63 to 30 opposed.

But all three congressmen ignored their constituents. All three chose Speaker Pelosi over their constituents.

What we saw Sunday night was a pressured, bought, intimidated vote worthy of Hugo Chavez but unworthy of the United States of America.

The Machine

The Obama-Pelosi-Reid machine has combined the radicalism of Saul Alinsky, the corruption of Springfield, Ill., and the machine power politics of Chicago.

It is hard to imagine how much pressure they brought to bear on Congressman Bart Stupak to get him to accept a cynical, phony and possibly unconstitutional executive order on abortion. The ruthlessness and inhumanity of the Obama-Pelosi-Reid machine was most clearly on display in their public humiliation of Stupak when he was forced to speak out against a Republican effort to add the very language Stupak authored preventing taxpayer funding of abortion.

Democratic Congressman Alcee Hastings (who, while serving as a federal judge, was impeached and removed from the bench before being elected to the House) articulated the principles of this machine mentality on Sunday when he said, "There ain't no rules here, we're trying to accomplish something. . . .All this talk about rules. . . .When the deal goes down . . . we make 'em up as we go along."

It is hard for the American people to believe their leaders on the Left are this bad.

They are.

The American People Will Not Allow a Corrupt Machine to Dictate Their Future

On the floor Sunday night, Congressman John Boehner aptly summarized the consequences of voting for this bill:

"If we pass this bill, there will be no turning back. It will be the last straw for the American people. And in a democracy, you can only ignore the will of the people for so long and get away with it. And if we defy the will of our fellow citizens and pass this bill, we are going to be held to account by those who have placed us in their trust."

2010 and 2012 will be among the most important elections in American history.

These elections will allow us to save America from a leftwing machine of unparalleled corruption, arrogance, and cynicism.

The American people will not allow a corrupt machine to dictate their future.

Together we will pledge to repeal this bill and start over on meaningful, effective, healthcare reform.

Together we will prove that this will not stand.

Your friend,

Newt Gingrich

Former Chief Crane Inspector Admits Taking Bribes for Lies

By John Eligon

A former chief crane inspector for New York City’s Department of Buildings pleaded guilty on Tuesday to taking bribes from a company in exchange for falsely certifying cranes that had not been inspected and issuing crane operator’s licenses to people who had not completed examinations.

The inspector, James Delayo, is to be sentenced on May 4 to two to six years in prison as part of the deal under which he pleaded guilty to one count of second-degree bribe receiving, the most serious charge he faced. The charge carries a maximum prison sentence of 15 years. Mr. Delayo also agreed to file amended local, state and federal income tax returns for 2000 through 2008.

Cyrus R. Vance Jr., the Manhattan district attorney, said in a statement, “The defendant’s willful disregard for the safety of this equipment and the skill of crane operators endangered the lives of Manhattan’s residents, visitors and construction workers.”

“This is another case where responsibility and safety were trumped by greed,” Mr. Vance added. “These crimes threaten the industry that built our great city, and this fraud hurts the honest business owners and employees who every day put safety above profit.”

Sitting before Justice Thomas A. Farber of State Supreme Court in Manhattan, Mr. Delayo, 61, a 26-year veteran of the Department of Buildings, read a statement saying he had accepted more than $10,000 in bribes from Michael Sackaris, the owner of Nu-Way Crane Service.

Mr. Delayo said he had accepted the bribes “to complete and file false inspection reports” with the Buildings Department “indicating cranes owned by Nu-Way had passed inspections when, in fact, the cranes had not been inspected, or I had only conducted perfunctory inspections of those cranes.”

On at least six occasions, Mr. Delayo said, he accepted Mr. Sackaris’s bribes to certify in documents filed with the department “that Nu-Way employees seeking crane operator licenses had passed their practical examinations.”

Mr. Delayo declined to comment after the hearing. But outside the courthouse, his lawyer, David M. Oddo, said his client was sorry for what he had done.

“By taking this plea, Mr. Delayo has taken responsibility for some of the unfortunate decisions he made as chief inspector,” Mr. Oddo said.

Mr. Delayo did not believe that his actions put people in danger, Mr. Oddo said, in part because he did visual inspections on some cranes and thought, based on his experience, that it was enough to tell that the cranes were in good shape. Some cranes that he did not properly inspect later passed inspections, Mr. Oddo said. He also noted that the bribes did not involve tower cranes, the type used for high-rise construction that was involved in fatal collapses in recent years.

But the charges against Mr. Delayo surfaced in the wake of two crane collapses that left nine people dead and opened a window onto what the authorities said was a lackadaisical and occasionally corrupt manner in which cranes and their operators were approved for work in the city.

Mr. Sackaris and Michael Pascalli, an operator at Nu-Way accused of receiving a license but not having taken the test, are also under indictment. Both appeared before Justice Farber on Tuesday, and their cases were put off until April 9 for disposition, indicating they, too, were probably working on plea agreements.

Delegate Meeting Summary Report

Del Rep 031010

Local 157 & Local 608 Representatives Relocated to the District Council

From nycdistrictcouncil.com... Starting in March, Local 157 and Local 608 representatives will be working together on a daily basis out of the NYC District Council offices to cohesively build our market share and protect the area standards that are set.  All shop stewards working in Local 157 and Local 608 jurisdictions will report to the Labor Technical College 2nd floor common room on Wednesday and Thursday mornings between 6 am and 8 am to drop off their shop steward reports.

Working together, these representatives will be rotated throughout Manhattan and the Bronx to protect our work.  Normal union business, including dues collection will continue to be carried out in Local Union offices.

Probe Set On Carpenter Union Losses

Brotherhood of carpenters investigation will examine Madoff scheme ramifications

By ERIC ANDERSON 

ALBANY -- The $160 million that unionized carpenters in New York state lost to Bernard Madoff, and the way those losses were -- or weren't -- shared among the union's members, are the focus of hearings to be held at the end of the month in Albany.

The United Brotherhood of Carpenters and Joiners of America has scheduled hearings March 30 and 31 at the Crowne Plaza Hotel in downtown Albany to look into the management of union pension, annuity and health funds by the Empire State Regional Council.

Upstate union members may have been "discriminated against" in allocating losses from the Madoff investments, wrote Douglas J. McCarron, general president of the UBC, in a 10-page letter to Patrick B. Morin, executive secretary-treasurer of the Empire State Regional Council.

Copies of the letter were sent to various union officials and all union members affiliated with the Empire Council. (see below)

In one case, the loss of a $6.4 million investment with Madoff made by the Empire Welfare Fund was allocated entirely to the former participants in the Upstate Health Fund, even though it had been folded into the Empire Fund and dissolved two years earlier, McCarron wrote.

Upstate members saw their fund accounts dwindle; in one case, a member's health account was wiped out, and he had to pay a monthly premium of $1,060 to keep his health insurance, McCarron wrote.

A trustee from the former upstate funds may have been illegally barred from board meetings when Madoff issues were being discussed. Madoff had admitted operating a massive Ponzi scheme that cost investors billions of dollars and is now in prison.

And while the Empire Council had agreed to provide information about the allocation of Madoff losses, McCarron wrote, much of it hadn't yet been provided.

Morin didn't return a call for comment.

Monte Byers, chief of staff for the United Brotherhood of Carpenters, confirmed that the hearings are scheduled but declined to comment specifically about the allegations.

Union members' concerns about the health of their retirement and other funds were first described in a story Feb. 15, 2009, in the Times Union.

At that time, several members, including Charles Lezette and Rich Dorrough, said that Empire Council officials weren't sharing much information about the Madoff losses. They told them that their annuity fund was "temporarily on hold and we can't touch it," Dorrough recalled at the time.

Carpenters Local 370 in Albany has about 900 members in the Capital Region. Officials there declined to comment Friday afternoon and referred questions to Morin.

Scan Packet 02

Final Hearing Committee Report

In an effort to hear our members concerns, the UBC conducted hearings in October 2009 at the Javits Center regarding the affairs and operation of the New York City District Council of Carpenters.

Recently, the UBC submitted the attached report which contains the findings of the Hearing Committee.
Hearing Committee Report