The General Executive Board ("GEB") Attorney of the Laborers' International Union of
North America (" LIUNA") and Local Union No. 2 ("Local 2"), by and through its Executive
Board (hereinafter, the Parties), enter into this agreement the 1st day of May, 2002,
in order to resolve certain matters under investigation by the Inspector General ("IG")
and the GEB Attorney's Office with respect to the internal affairs of Local 2.
WHEREAS, the IG and the GEB Attorney have become aware of allegations of (1) the
improper exclusion of a Local 2 member from participation in a membership meeting;
(2) failure to observe prudent financial procedures, including but not limited to,
unauthorized loans, paycheck advances, and use of the Local's credit cards; failure
to control and document cost of renovations to the Local's Hall; failure to control
travel expenses for the 2001 Convention in Las Vegas, Nevada; and (3) use of the
Local's mailing lists for a mailing for a foot doctor without prior approval from
the General President.
WHEREAS, the Parties agree that supervision over the affairs of Local 2 is
appropriate for the following purposes among others: resolving the issues under
investigation by the IG and the GEB Attorney's Office; assuring that the Local
is operated in a democratic manner; although no funds have been determined to be
missing, insuring prudent financial practices are followed, and advancing the
objectives of the International and Local Union Constitutions in a manner that
serves the best interests of the membership of Local 2.
THEREFORE, the Parties agree as follows:
1 Pursuant To Article IX, Section 7 of the Constitution of the Laborers'
International Union of North America, Local 2 consents to the appointment of a
Supervisor who shall be authorized to exercise all of the powers and responsibilities
set forth in that Section. The Supervisor shall be authorized to take full charge of
the affairs of Local 2 during the period of Supervision and to take any and all
action that, in the Supervisor's judgment, is necessary to preserve or manage the
Local and to protect its interests consistent with this agreement and
LIUNA's governing law. Such authority shall include, but will not be limited to, the
power (a) to appoint or replace any union trustee of any trusts or funds established
by or associated with Local 2; (b) to appoint, terminate or replace any employees or
officers, consistent with paragraph four (4) of this Agreement; (c) to appoint,
terminate, replace and/or supervise any stewards; (d) to retain or replace lawyers,
accountants, other professionals, and service providers on behalf of local 2 after
consultation with the Executive board; and (c) to retain persons to assist the
Supervisor in the exercise of these responsibilities.
2. The Supervisor shall have full and sole authority to manage, conduct, and
oversee the financial affairs of the Local, including signature authority over checks,
orders and accounts of Local 2. The Supervisor shall have the authority to delegate
these powers in his or her discretion.
3. The GEB Attorney shall have complete authority to select the Supervisor and,
if necessary, to replace the Supervisor during the period of Supervision.
4. The Supervisor, in his or her sole discretion, shall have the authority to
remove and to replace an officer upon concluding that such action is consistent
with the purposes and provisions of the LIUNA Constitution, the Ethical practices
Code, and/or The Ethics and Disciplinary Procedure. Members of the Executive Board
may exercise only such authority as shall
be delegated to them by the Supervisor, who shall
have discretion to exercise the powers
granted in paragraph one, above
5. The Supervisor or designee shall preside over all meetings of Local 2,
unless in the Supervisor's discretion, the Supervisor authorizes the appropriate
officials of Local 2 to conduct the proceedings.
6. The costs of the Supervision, including the salaries or fees of the Supervisor,
any deputy Supervisor, or assistants shall be borne by Local 2.
7. The GEB Attorney reserves all rights to seek to impose a trusteeship over
Local 2 in accordance with the LIUNA Constitution or to initiate disciplinary
actions against any member, officer or employee of Local 2. Deliberate violations
of this Agreement by Local 2, its officers, members or employees will constitute
obstruction and may be grounds for a trusteeship or disciplinary action under
the Ethics and Disciplinary Procedure.
8. The anticipated term of this Supervision shall be for a period of eighteen
(18) months; however, following consultation with the Supervisor of Local 2 and
LIUNA's Regional Manager, the GEB Attorney, in his solo discretion may limit
the period of the Supervision to less than eighteen (18) months or extend
the Supervision beyond the eighteen (18) month period.
9. The Supervision shall commence May 8, 2002.
10. Any dispute arising hereunder shall be adjudicated before the Independent
Hearing Officer in accordance with such rules as he shall devise.
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