LETTER TO THE DEPARTMENT OF LABOR
(also see their response)
I am absolutely fed up and disgusted with the manner in which the assets of our union have been mishandled and our contracts negotiated. I do not believe for a moment that these are isolated incidents of mismanaged assets. I believe this is part of a larger problem that is so deeply ingrained in the system that it is in fact an ongoing self-perpetuating problem. Further, I believe that unless something is radically changed the union membership will continue to be plagued by financial oversights. We must endeavor to put in place a system of checks and balances that will immediately call attention to any irregularities. Finally, we must back up that system with an automatic default that will prevent any reoccurrence of similar problems.
Initially however, I believe we need to clean house. I’m not talking about dusting around the edges to take of the surface irregularities, I’m saying we need to make a major overhaul of the infrastructure. Right now we have a leader that is capable, willing and motivated enough to take this organization in a new direction (no pun intended). There are still many major obstacles that are hell bent on deterring those efforts, its up to all of us to help remove those barriers. We should never forget that almost every leader that has been put into office has been elevated to that position in one way or another by a group of his/her peers. Obviously there is a general feeling of trust and confidence in the new leader that is being installed. More often than not this is usually well deserved. What happens then to change these leaders once they have taken office? Almost always these variations occur as a result of pressures from above, and or reciprocal obligations stemming from peer group support. Lets at least help to remove the pressures from above. If they can’t lead, and they won’t follow---LET’S GET THEM THE HELL OUT OF THE WAY!
My letter to the Department of Labor is my first step in that direction, I can use all the help I can get.
Ed Kehoe
This letter I sent to the department of labor indicates my intention to have charges brought against all those who would have had any responsibility in bringing the membership of local 100 to its present financial condition. Not the greatest letter in the world, but it sure beats the hell out of doing nothing. I am going to ask the executive board to assist me in pushing for our legal staff to follow up on this.
It contains the following:
A statement of facts
Allegations I have made regarding the manner in which fiduciary responsibilities were abdicated.
My charges, specifically.
A copy of a letter from Sonny Hall to me in which he states "Clearly, the local is in deep administrative trouble"
A copy of my letter sent to both the District Attorney and The Department of Labor with my request for an investigation into the credit card fiasco (their response was awsome).
A copy of:
ARTICLE 20-A
LABOR AND MANAGEMENT IMPROPER PRACTICES ACT
A Remedy Sought
The Letter to the department of Labor
Edward Kehoe
314 West 231st. Suite#111,
Bronx, New York 10463
To: The Department of Labor
Re: Request for investigation
March 5, 2001,
Dear Ms Hoyt,
I am asking your organization to assist me and 35,000 members of the TWU, Local 100 to recover monies and health benefits that were illegally taken from us. The following pages will not outline the complete extent of the damages we have suffered, nevertheless, it should supply enough information to elicit an investigation by your department. The result of which I hope will lead to the eventual recovery of our membership's assets, and the prosecution of those responsible for our loss.
Edward Kehoe,
TWU Local 100 Executive board member, Line Equipment/Signals
Statement of facts:
The funding of the Local 100 Staff pension is and has been grossly under-funded and therefore poorly managed. The building which houses, and which is the property of Local 100 was mortgaged at an interest rate of 14% at a time when the going rate for mortgage agreements was 9%. Local 100 is at the present time indebted to the TWU International, a parent organization with fiduciary responsibilities over the Local Unions administrative and financial procedures, in the amount of approximately $3,000,000. The local union officers so mismanaged the assets of the building that the locals rental spaces will be locked into rental agreements at far below the going market rate. Further, the local officers deemed it financially prudent to compensate the agents who negotiated these outrageous contracts at fees that were approximately three times the going rate. In one particular instance, not only are we locked into a totally unacceptable rental rate, we are locked into it for a period of 20 years, with options to renew locked in for another 20years. Local 100 is at the present time in danger of losing its health benefit funding due to what can only be referred to as a last minute change in a contract negotiation at a time when the Local was under what many consider to be an illegally imposed Temporary restraining Order during an otherwise peaceful and Legal labor contract negotiation.
Allegations:
The International Union had a responsibility to carry out the duties and responsibilities in article(s) V, VI and IX (attached) as defined in the excerpts from the constitution. The inexcusable mismanagement of the Locals finances as outlined above were a direct result of the abdication of those responsibilities. Further, the inaction on their part to carry out these responsibilities, coupled with a close political alliance with the Local Officers, actually served to encourage, condone and exacerbate the furtherance of these improprieties. The members of the local executive boards minority group were continuously frustrated as they were outvoted time and time again on issues intended to obtain responsible financial oversight.
The international Union is, and has been a tenant in the building and has had, during the last local 100’s administration, an ongoing almost inseparable relationship with the local 100 officers and membership. The three highest ranking officers in our union, largeley, if not completely responsible for the unions finances are all Executive Council Vice Presidents in the TWU International. It would have been virtually impossible for them not to know that there was something not in line with their financial requirements. Yet and still they did nothing, they allowed the union to sink further and further in this financial abyss.
Further, the MTA NYCT has been an active participant in the undermining of the integrity of our union representation. The enormous resources of legal and financial information regarding our medical, personal and financial information, coupled with political connections with the chief administrative officers of our city and State Governments have completely decimated and destroyed the concept of "good faith bargaining". Couple this with an illegally obtained injunction issued by a pool of judges dependent on city and state administrators for retention of their office and you have all the ingredients required for the onset of "TYRANNY".
Charges:
I charge the TWU International union, the President and vice presidents of TWU Local 100 that were in office prior to the recent election and the MTA New York City Transit Authority with numerous and consistent violations of New York State Labor Law.
Specifically:
Article-20 A
Sections: 722. Fiduciary obligations of officers and agents.
Sections: 724. Obligation of employers and others.
Additionally, Articles in article(s) V, VI and IX of the TWU International Constitution.
Remedy Sought:
I demand that the TWU International, The MTA, NYCTA, and the officers involved in perpetrating this loathsome, harmful and totally unjustifiable act on the 35,00o members of the TWU Local 100 and their families be held to full accountability for their actions. Further, that the Governor and the Mayor of New York be held as accomplices in these outrageous crimes against the membership. Finally, that a court of competent jurisdiction exacts whatever monetary restitution it might take in order to make the Local 100 membership whole again.
Finally, I realize that as a union member I have a responsibility to exhaust all available remedies through the union before going to an outside agency for a remedy at law. Needless to say, given the fact that the TWU would ultimately be involved in the decision making process, even to the extent that they have a right to overturn any decision that may be made at a lower level, this would be an exercise in futility.
In a letter sent to me by Sonny Hall in response to my letter to your organization requesting an investigation into credit card abuse he not only reprimanded me for going to an out side agency, he also admitted that the local was in "deep administrative trouble" (copy attached