[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[House]
[Pages H10341-H10343]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          ON THE ACHIEVEMENTS OF THE LABORERS' REFORM EFFORTS

  The SPEAKER pro tempore (Mr. Snowbarger). Under the Speaker's 
announced policy of January 7, 1997, the gentleman from Missouri (Mr. 
Clay) is recognized for 10 minutes as the designee of the minority 
leader.
  Mr. CLAY. Mr. Speaker, Clarence Darrow said, ``With all their faults, 
trade unions have done more for humanity than any other organization of 
men that ever existed. They have done more for decency, for honesty, 
for education, for the betterment of the race, for the developing of 
character in men than any other association of men.''
  The labor movement has played a vital role in making this country 
what it is today. Only 65 years ago the basic right to retire was 
beyond the means of most workers. One worked until one was physically 
unable to work anymore. Workers even when they were employed could 
barely support their families on a day-to-day basis. The prospect of 
being able to save enough money to retire, or buy a home or send a 
child to college was for most workers nonexistent. The fact that this 
is no longer the case is in large part a measure of the success of the 
labor movement.
  The successes achieved by the labor movement did not come easily. 
Most worker rights were bitterly opposed by employers and their 
political allies. Moreover, labor's opponents have never been satisfied 
with merely opposing policies pursued on behalf of workers. More 
typically labor's opponents attack the very fabric of trade unionism. 
In doing so, they directly attack the well-being of working families.
  Today, Mr. Speaker, I want to talk about another attack that has been 
launched against the labor movement. In the American Spectator, in the 
Weekly Standard and on the editorial pages of the Wall Street Journal, 
charge after charge has been leveled against the Laborers' 
International Union. The reform efforts that the Laborers' have 
undertaken and the consent decree under which the union is operating 
have been assaulted.
  Mr. Speaker, these articles regularly sling stupefying charges of 
continued mob control of the union by a recognized crime family without 
providing a shred of evidence or on-the-record attribution for 
allegations made. The common feature of these articles is that they 
make absolutely no mention of the real progress that has been made to 
ensure that the Laborers' is a democratic union controlled by and 
operated for the benefit of rank-and-file members.
  Today there is an effort under way at the Laborers' Union that 
represents one of the most innovative, cost-effective programs ever 
undertaken to rid a union of mob influence. The reform effort is still 
a work in progress. It is premature to render judgment regarding its 
ultimate success. However, Mr. Speaker, the progress that has been made 
is truly impressive. To ignore, misrepresent or dismiss it is not just 
disingenuous but may deny workers and the government a model for the 
future that does a better job of promoting and protecting union 
democracy than other means that we have tried in the past.
  Corruption in the Laborers' Union was investigated for decades, with 
little to show for the effort. Finally, the U.S. Justice Department 
informed the union that it would take legal action to take control of 
the union just as it had done with the Teamsters Union.
  The union and its leaders facing this critical decision and knowing 
how serious the problem was could have chosen

[[Page H10342]]

to spend years fighting the government's suit or could be part of the 
solution. The union's executive board chose to be part of that 
solution. On February 13, 1995 the Laborers' entered into an historic 
oversight agreement with the Department of Justice to rid the union of 
mob influence. The union agreed that, with the help of independent 
investigators and prosecutors, it would clean its own house.
  Since that time, a remarkable story has been taking place. The union 
adopted a new ethics and disciplinary code and it adopted an 
independent process to enforce that code. The union has hired a team of 
former top-ranking FBI officials and Justice Department prosecutors to 
enforce the code and to discipline those who violate it.
  So far, Mr. Speaker, the reform effort within the union has, one, 
removed 189 union officials; has filed charges against 132 union 
officials and staff; has caused 47 union officials to resign after 
bringing or threatening to bring charges; has referred 25 criminal 
matters to Federal or local law enforcement authorities; and has 
imposed 19 trusteeships over local unions and district councils in 
which all local officials and officers were removed.
  Mr. Speaker, trusteeships have been imposed on the Chicago District 
Council and on Local 210 in Buffalo, New York, both regarded as 
longtime bastions of organized crime.
  Members of the Mason Tenders District Council of Greater New York 
recently conducted their first officers' election since the imposition 
of a trusteeship in 1994. While under trusteeship, the union recovered 
$12 million of the $15 million in assets lost by wrongdoing by former 
officers.
  In 1996, the union conducted its first direct rank-and-file election 
for general president and will soon implement the first ever direct 
membership vote for all union offices.
  Mr. Speaker, the union is embarking upon hiring hall reforms and is 
educating its Members so that they are able to freely and fully 
participate in the union affairs and governance. The union has also 
implemented a toll-free 800 telephone number directly to the internal, 
independent Inspector General's office so that members may more easily 
raise complaints or express their concerns.
  No one has been immune from the reform process. Charges have even 
been brought against the union's general president. An independent 
inquiry is now being made to determine whether to remove that 
individual from office or not.
  Mr. Speaker, all of this is being accomplished by the union itself. 
It is all being paid for with union money and not government funds. The 
reform process is promoting private initiative and accountability. The 
union is under the democratic control of its members, not the mob and 
not the government.
  In 3\1/2\ years, the Laborers' internal reform effort has done more 
to clean up the union than decades of efforts by law enforcement 
agencies. And the reform effort has accomplished this in a manner that 
has made the union a more effective advocate on behalf of its members 
rather than a weaker one.
  The reform efforts are not yet complete, but much has been 
accomplished. Nevertheless the accomplishments of the Laborers' 
internal reform effort are truly significant. They deserve the 
attention of the public, and they deserve fair and accurate reporting 
by the media.
  Mr. Speaker, I include for the Record a document entitled ``Report to 
Members of Congress, Laborers' International Union of North America's 
Ethics and Disciplinary Program: 41 Months of Progress.''

Report to Members of Congress--LIUNA's Ethics and Disciplinary Program: 
                         41 Months of Progress


                           a bold experiment

       One of the most under reported stories in today's labor 
     movement concerns a union, with a proud past that was sadly 
     tarnished by corruption, that has taken matters into its own 
     hands, ridding itself of wrongdoers and eradicating criminal 
     influences.
       Uner an historic Oversight Agreement signed on February 13, 
     1995, the Laborers' International Union of North America 
     (LIUNA) continues to work with the U.S. Department of Justice 
     to initiate widespread internal reforms. Over the past three 
     years, our union has implemented model ethics, disciplinary 
     and democracy programs that stand second to none in 
     safeguarding the rights of every union member. We have 
     succeeded in moving our union into a new era.
       The Laborers' International also successfully conducted the 
     first rank-and-file election for General President in 
     December 1996, under the supervision of an Independent 
     Election Officer. In our next election, we will implement 
     direct membership votes for all union officers.
       LIUNA's reform programs have been cited as a model for 
     future reform efforts, and in a March 24, 1998 letter to the 
     National Legal and Policy Center, the Department of Justice 
     stated that it believed that our internal reform process has 
     ``resulted in considerable success.''
       This is not to imply that the Justice Department believes 
     our programs are perfect, nor do we. But as we learn, we 
     continue to progress. Indeed, our success thus far--and the 
     fact that work remains to be done--is why we and the Justice 
     Department extended our unique Oversight Agreement for 
     another year. Under this agreement, the Justice Department 
     retains the unilateral power to take control of our union if 
     it feels we are making insufficient progress in rooting out 
     corruption and safeguarding our members' rights. We view the 
     extension of the Oversight Agreement as a clear vote of 
     confidence in our reform efforts.


                        the political atmosphere

       The innovative nature of the Laborers' self-reform 
     movement--and the facts about its genesis and achievements--
     should merit both bipartisan and nonpartisan support. 
     Unfortunately, this has not been the case.
       Over the course of the Agreement, our reform programs and 
     our union have been the subject of relentless attacks by 
     anti-labor opponents and right-wing extremists. Those who 
     have the most to fear and the most to lose from reform have 
     tried to sabotage this process and undo LIUNA's progress. And 
     some in Congress and in the media have given these people an 
     uncritical hearing and platform.
       Media outlets, such as The Wall Street Journal and The 
     American Spectator, continue to publish articles, editorials 
     and guest columns that repeat--like a broken record--
     misconceptions, falsehoods and unsupported allegations about 
     our union, our officers and our reform efforts. They do not, 
     however, have the journalistic integrity to publish the 
     evidence of our progress or to take an unbiased look at how 
     our union is changing for the better.


                             a new approach

       LIUNA's Cooperative Agreement is a model for the kind of 
     reform the Justice Department and FBI have been working 
     toward in private industry--requiring private organizations 
     to assume principal responsibility for policing themselves. 
     Among its many benefits, the Agreement has: Saved taxpayer 
     dollars by having LIUNA--not the government--responsible for 
     cleaning its own house; promoted private initiative and 
     accountability, rather than relying on the government to fix 
     what is, in essence, an internal matter; and kept LIUNA under 
     the democratic control of its members, averting a government 
     takeover of a private organization.
       LIUNA's General Executive Board (GEB) is firmly committed 
     to the success of the Ethics and Disciplinary Program. Our 
     experience has only added to our commitment for this unique 
     experiment in self-policing, and it has deepened our resolve 
     to permanently change this union for the better. LIUNA is 
     unequivocally committed to advancing internal reforms and to 
     making this the most democratic union for our members.
       Another priority continues to be implementation of hiring 
     hall reforms. LIUNA's General Executive Board adopted a new 
     set of job referral rules and hiring hall practices to 
     protect all LIUNA members' rights and eliminate any 
     possibility of violations. In 1996, we also established a Job 
     Referral Committee which works with the independent GEB 
     Attorney on an ongoing basis to deal with complex local 
     issues and to improve policies governing these matters. LIUNA 
     officials and members are receiving the necessary 
     education and instruction to put these reforms in place.
       A third priority is educating members on our election 
     reform rules so that all members can be confident of their 
     right to participate fully in fair and open elections, and in 
     union affairs and governance.


                    Highlights of the Reform Process

       The Laborers' Ethics and Disciplinary Code and internal 
     reform program work because they are now an established part 
     of our union's Constitution and because they are enforced by 
     a team of fully independent officers. These officers do no 
     answer to the General President, General Executive Board or 
     the General Counsel of the Laborers' Union; they answer only 
     to our members and the U.S. Department of Justice.
       When the Inspector General's investigators discover conduct 
     that might constitute grounds for discipline, they bring the 
     matter to the attention of the GEB Attorney, and he commences 
     prosecution, if warranted. Such cases have succeeded in 
     eliminating some of the most significant sources of 
     corruption within the union.
       Officials at all levels of LIUNA have resigned their 
     positions when confronted with disciplinary charges or the 
     prospect of being required to give sworn testimony in 
     connection with investigations. The resignations eliminate 
     sources of corruption swiftly and effectively, and allow the 
     Inspector General and GEB Attorney to focus efforts on other 
     high priorities. The ease of these victories in no way 
     detracts from their value.

[[Page H10343]]

       The following actions, compiled by the Inspector General's 
     Office as of August 1998, are testament to the ongoing 
     success of LIUNA's innovative reform process:
       Removed 189 individuals for criminal or ethical violations, 
     or ties to criminal elements, through convictions, 
     terminations or suspensions.
       Filed charges and complaints against 132 individuals for 
     alleged wrongdoing. Some focus on individual members or 
     officers. Others are aimed at broader patterns of misconduct 
     committed by LIUNA District Councils or Local Unions.
       Prompted the resignations of 47 individuals who were 
     targets of investigations.
       Suspended eight individuals pending resolution of criminal 
     charges.
       Referred 25 criminal matters to federal or local law 
     enforcement authorities.
       In addition to these activities, we should note that the 
     Laborers' have succeeded in using trusteeships and 
     suspensions to rid our most problem district councils and 
     local unions of all vestiges of corruption.
       For example, the Mason Tenders District Council of Greater 
     New York this year concluded its first officers' election 
     since a trusteeship was imposed in 1994. The trusteeship has 
     recovered $12 million of the $15 million in assets lost by 
     the membership because of malfeasance.
       The Mason Tenders Investigations Officer, Michael Chertoff, 
     who also served as Majority Counsel to the Senate Whitewater 
     Committee, has expressed his confidence in our aggressive 
     efforts to prevent organized crime from ever regaining 
     influence there.
       Our Independent Officers have also imposed trusteeships 
     over Local 210 in Buffalo and the Chicago District Council, 
     which had historically been controlled by organized crime. 
     Law enforcement authorities pursued both locals for many 
     years with minimal success, but our internal reform process 
     got results expeditiously and fairly.
       In all, 19 trusteeships have been imposed, 17 in the U.S. 
     and two in Canada, where all officers were removed and 10 
     supervisions have been established where the majority of 
     officers were removed.


                      liuna's anti-corruption team

       Our Inspector General, W. Douglas Gow, is the former 
     Associate Deputy Director for Investigations at the FBI. He 
     is charged with investigating and resolving disciplinary 
     matters arising under LIUNA's Constitution or Ethical 
     Practices Code, and supervising the union's compliance 
     program that is designed to prevent and detect wrongdoing. He 
     has assembled a first-class team of high-ranking, former FBI 
     agents and law enforcement officers. This team is charged 
     with pursuing every credible lead of possible wrongdoing.
       We have taken extra steps to make it easier for union 
     members to raise their complaints, questions or concerns 
     through a toll-free 800 telephone number that goes directly 
     into the Inspector General's Office. All calls are treated in 
     the strictest of confidence.
       Our General Executive Board Attorney, Robert Luskin, is the 
     former Special Counsel for the Justice Department's Organized 
     Crime and Racketeering Section. He serves, in effect, as the 
     union's chief disciplinary official.
       All internal hearings are held before the Independent 
     Hearing Officer, Peter F. Vaira, a former director of the 
     President's Commission on Organized Crime and a former U.S. 
     Attorney for the Eastern District of Pennsylvania. W. Neil 
     Eggleston, a former Chief Appellate Attorney for the U.S. 
     Attorney's Office for the Southern District of New York, 
     serves as the Independent Appeals Officer.


                              a final note

       As we stated earlier, our reform process is not perfect, 
     but it has made more progress in the last 41 months in 
     ferreting out corruption and identifying wrongdoings than any 
     other union. We are proud of what we have accomplished, and 
     we will continue to work hard to make our union the 
     strongest, cleanest and most democratic for our members.

                          ____________________