2013 IUOE International RICO Filing

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SECOND AMENDED CLASS ACTI ON COMPLAI NT

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Ira Spiro, State Bar No. 67641
ira@spiromoore.com
H. Scott Leviant, State Bar No. 200834
scott@spiromoore.com
SPI RO MOORE LLP
11377 W. Olympic Blvd., 5
th
Floor
Los Angeles, California 90064-1683
Telephone: (310) 235-2468
Facsimile: (310) 235-2456

Attorneys for Plaintiffs

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

FINN PETTE, individually, and on
behalf of all others similarly situated;
J AMES MCLAUGHLIN, individually,
and on behalf of all others similarly
situated;
DANIEL HIMMELBERG,
individually, and on behalf of all
others similarly situated;
GLENN SZALAY, individually, and
on behalf of all others similarly
situated;
J AY BROPHY, individually, and on
ANNE BROPHY, individually, and on
CHERYL CULBREATH,
ROBERT FOX, individually, and on
J OHN CROOKS, individually, and on
NYE NELSON, individually, and on
LINDA PETTE, individually, and on
J UDY MCLAUGHLIN, individually,
and on behalf of all others similarly
situated;
CHRISTINE HIMMELBERG,

Case No.: CV12-09324 DDP (VBKx)

CLASS ACTION

SECOND AMENDED CLASS
ACTI ON COMPLAI NT (FI LED
PURSUANT TO ORDER I SSUED
MARCH 19, 2013, DOCKET NO.
64) FOR:

1. Violations Of Racketeer Influenced
And Corrupt Organizations Act
[18 U.S.C. 1962(c)]
[18 U.S.C. 1962(d)]
[18 U.S.C. 1962(b)]
[18 U.S.C. 1962(d)]
5. Violations of Labor Management
Disclosure Act
[29 U.S.C. 501]
6. Breaches of Fiduciary Duties
[ERISA]
7. Aiding and Abetting
8. Violation of Bus. & Prov. Code
17200

DEMAND FOR J URY TRI AL

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ERIK B. SMITH, individually, and on
CHRISTOPHER MENOR,
PATRICK ADAMS, individually, and
on behalf of all others similarly
situated;

Plaintiffs,

vs.

INTERNATIONAL UNION OF
OPERATING ENGINEERS, a trade
union;
J AMES T. CALLAHAN, an
individual;
BRIAN E. HICKEY, an individual;
WILLIAM C. WAGGONER, an
individual;
PATRICK L. SINK, an individual;
J ERRY KALMAR, an individual;
RUSSELL E. BURNS, an individual;
RODGER KAMINSKA, an individual;
J AMES M. SWEENEY, an individual;
ROBERT T. HEENAN, an individual;
DANIEL J . MCGRAW, an individual;
DAREN KONOPASKI, an individual;
MICHAEL GALLAGHER, an
individual;
GREG LALEVEE, an individual;
TERRANCE E. MCGOWAN, an
individual;
LOUIS G. RASETTA, an individual;
VINCE GIBLIN, an individual;
J AMES VAN DYKE, an individual;
RICHARD GRIFFIN, an individual;
CHRIS BROWN, an individual;
LEWIS LEVY, an individual;
RANDY HENNINGFIELD, an
individual;
PAUL BENSI, an individual;
SANDRA ACOSTA, an individual:
CORNELL SNEEKES, an individual;
J IM SCRANTON, an individual;
DENNIS LUNDY, an individual;
CYNTHIA ESCANUELAS, an
individual;
ABLE ENGINEERING SERVICES, a
business entity of unknown type;
ABM ENGINEERING SERVICES; a
business entity of unknown type;

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ENRIQUE ALCALA, an individual;
ED CURLY, an individual;
MICHAEL RUSSELL, an individual;
J OHN T. AHERN, an individual;
J OHN M. HOLLIDAY, an individual;
KUBA J . BROWN, an individual;
BRUCE MOFFATT, an individual;
J AMES T. KUNZ, J R. , an individual;
J AMES ZAZZALI, an individual;
MICHAEL R. FANNING, an
individual;
CVS CAREMARK CORPORATION,
a Delaware corporation;
TRIVANTAGE PHARMACY
STRATEGIES, LLC, a business entity
of unknown citizenship;
TRUVEN HEALTH ANALYTICS,
INC., a Delaware corporation;
and, DOES 1 through 10, inclusive,

Defendants.

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TABLE OF CONTENTS

TABLE OF CONTENTS ....................................................................................... i
I. INTRODUCTION .......................................................................................... 1
II. J URISDICTION AND VENUE...................................................................... 2
III. THE PARTIES TO EACH CAUSE OF ACTION .......................................... 3
A. Plaintiffs ..................................................................................................... 3
B. Defendants .................................................................................................. 5
IV. DEFENDANTS MISCONDUCT ................................................................ 12
A. About the IUOE ........................................................................................ 12
B. IUOE Forced Plaintiffs Serving As Officers or Employees of Local
501 and Others to Contribute to the Presidents Club/EPEC, a Political
Action Fund .............................................................................................. 13
C. Plaintiffs Discovered Many Examples of Embezzlement and Asset
Diversion from Local 501 and IUOE Accounts Created for the Benefit
of Union Members ................................................................................... 16
1. Dennis Lundy Embezzled from the Apprenticeship Trust Account,
but IUOE President Giblin Protected Lundy .................................... 16
2. Lundy Helped Operate a Sham BOMA and EPA 608 Certification
Testing System ................................................................................. 41
3. Lundy Absconded with Re-Election Campaign Funds .................... 44
4. Plaintiffs Discovered Evidence That ABM and Able Conspired
with the IUOE to Divert or Withhold Millions of Dollars from
Numerous Member Benefits Funds .................................................. 45
5. ABM and Able Conspired with IUOE to Operate Double-
Breasted and Deprive Local 501 of Members and Revenues ........ 49

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6. IUOE Conspired With ABM and Able to Allow Them to
Circumvent Their Contract With Local 501 and Use Retired
Employees to Avoid Benefit Fund Obligations ............................... 52
7. Decertification Election Tampering by Giblin and IUOE at UCLA
Cost Local 501 Roughly 600 Members and Was Used as One
Pretext for Terminating McLaughlin ............................................... 53
8. IUOE and Curly, Acting Under IUOE Orders, Embezzled Monies
From Local 501 Members Related to the Members Efforts to
Protect Mr. Pette and Mr. Himmelberg ............................................ 54
9. Able and ABM Management Employees Are Improperly
Participating in the Central Pension Fund ........................................ 56
D. IUOEs Leadership Used Threats of Physical and Economic Violence,
and Suborned Perjury, to Suppress Investigations and Usurp Control
Over Local 501 ......................................................................................... 57
E. Caremark Defrauded IUOE Members Nationwide and IUOE
Conspired with Caremark to Make This Possible .................................... 66
1. Defendants Diverted Caremark Reimbursements from Local 501s
Health & Welfare Fund to IUOE and Imposed Caremark on IUOE
Despite the Excessive Costs ............................................................. 66
2. IUOE Conspired with Caremark to Force Caremark on Members,
Going so Far as to Rig Bids When Caremark Was Not the Winning
Bidder ............................................................................................... 67
F. Defendants and Their Agents Destroyed or Removed Records That
Should Have Been Retained by Local 501 for 5 Years ........................... 73
G. Professionals Under IUOEs Control Acted at the Direction of IUOE to
Harm Local 501 ........................................................................................ 74
H. Consigliore Griffin Created Policies to Protect the Hand-Selected
Leadership Placed in Control of Locals by IUOE ................................... 75

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I. Giblin and IUOE Selected Zazzali to Fabricate the Appearance of
Ethical Conduct by IUOE, While Actually Using Zazzali as Another
Tool for the Oppression of Members Challenging IUOEs Widespread
Corruption ................................................................................................ 76
J. Able and ABM Are Targeting Local 501 Employees Sympathetic to
the Resistance and This Lawsuit .............................................................. 80
K. Fiduciaries to Local 501 Caused Harm to Local 501 in Order to Further
IUOEs Plan to Secure Complete Control Over Local 501 ..................... 80
L. IUOE and IUOEs Hand-Picked Operatives Will Not Permit Local 501
Members to Nominate and Elect Delegates of Their Choosing to
Attend the IUOE General Convention in April 2013 .............................. 81
V. CLASS ACTION ALLEGATIONS .............................................................. 85
VI. CLAIMS FOR RELIEF ................................................................................ 90
FIRST CLAIM FOR RELIEF .............................................................................. 90
SECOND CLAIM FOR RELIEF ......................................................................... 96
THIRD CLAIM FOR RELIEF ............................................................................. 98
FOURTH CLAIM FOR RELIEF ....................................................................... 104
FIFTH CLAIM FOR RELIEF ............................................................................ 107
SIXTH CLAIM FOR RELIEF ........................................................................... 109
SEVENTH CLAIM FOR RELIEF ..................................................................... 111
EIGHTH CLAIM FOR RELIEF ........................................................................ 112
PRAYER FOR RELIEF ..................................................................................... 115

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I. I NTRODUCTI ON
1. This action arises from years of illegal activity by the International
Union of Operating Engineers and its controlling officers and co-conspirators.
Local 501, a local trade union, and its members, were victimized by those many
years of illegal activity. The unlawful abuses suffered by Local 501 and its
members takes three predominant forms. First, millions upon millions of dollars
were withheld and/or embezzled from Local 501 and its membership. Second,
Local 501 was prevented from expanding its membership; the employers violating
their contracts with Local 501 were protected by Defendants, who were receiving
kickbacks for their protection. And, third, the membership of Local 501 was
denied the right to freely select its own officers and General Convention delegates,
through fair and honest elections.
2. The conduct of Defendants harkens back to the days of unrepentant
racketeering by organized crime, which makes some sense here. The International
Union of Operating Engineers conducts its affairs with the same disregard for
others rights as the mob. Not surprisingly, the International Union of Operating
Engineers has a long history of ties to organized crime families in New York, New
J ersey and Las Vegas, and they have apparently learned their techniques from the
very best of those crime syndicates.
3. In a manner much like the East Coast mafia approach to business,
which is to create the illusion of operating legitimate businesses, the International
Union of Operating Engineers, in cooperation with its crime syndicate partners
from the East, works to create the appearance of legitimacy in its operations. In its
West Coast operations, the International Union of Operating Engineers has made
inroads into banking, healthcare, and investment industries, where it can profit
from illegal side transactions, while creating the appearance of arms-length
contracts with service providers. Many of these side transactions are little more
than money laundering operations used to siphon dollars from Local union

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members and deliver them to the racketeers running the International Union of
Operating Engineers and its favored co-conspirators.

II. J URI SDI CTI ON AND VENUE
4. The action is brought, among other bases, under the Interstate
Commerce Clause of the United States Constitution, and the Racketeering, Mail
Fraud, Wire Fraud and Money Laundering laws of the United States. In addition,
this action is brought pursuant to Article 1, Section 1 of the Constitution of the
State of California and other statutes and laws of the State of California.
5. J urisdiction is specifically conferred on this Court by various federal
statutes including, but not limited to, the following: Section 1964 of the Racketeer
Influenced and Corrupt Organizations Act of the Organized Crime Control Act of
1970 as amended, 18 U.S.C. 1964, based upon a pattern of racketeering activity
in which Defendants have been engaged in connection with their operation of the
International Union of Operating Engineers, consisting of violations of (a) 18
U.S.C. 1341, relating to mail fraud, (b) 18 U.S.C. 1343, relating to wire fraud,
(c) 18 U.S.C. 1957, relating to monetary transactions of unlawfully obtained
proceeds from specified crimes, including mail fraud, 18 U.S.C. 1341, and wire
fraud, 18 U.S.C. 1343, (d) 18 U.S.C. 1951, relating to travel and use of
interstate commerce in furtherance of certain unlawful activities, including
unlawful monetary transactions, 18 U.S.C. 1957.
6. Original jurisdiction lies with this Court as to the Federal questions
raised herein, pursuant to 28 U.S.C. 1331.
7. J urisdiction over any California State causes of action contained in this
Complaint arises under the doctrine of supplemental jurisdiction, 28 U.S.C.
1367(a).
8. Venue as to each Defendant is proper in this District pursuant to 18
U.S.C. 1965, because each of the Defendants resides, is found, has an agent,

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controls and/or transacts or transacted affairs in this District. In addition, the
Defendants are engaged in interstate and foreign commerce, and a substantial part
of the events giving rise to the claims for violations of Federal law occurred in this
District, all in the course of interstate and foreign commerce.

III. THE PARTI ES TO EACH CAUSE OF ACTI ON
A. Plaintiffs
9. Plaintiff Finn Pette is, and at all relevant time was, a member of Local
501. Mr. Pette was financial secretary of Local 501. Plaintiff Pette limits his
claims in this action to those events occurring on or after May 1, 2012.
10. Plaintiff J ames McLaughlin is, and an at all relevant time was, a
member of Local 501. Mr. McLaughlin served as a Business Manager of Local
501. Mr. McLaughlin was the chairman of Local 501s Health & Welfare Trust,
and the Apprenticeship Trusts of Southern California and Southern Nevada. Mr.
McLaughlin was also the Vice President of the Western Conference of Operating
Engineers. From April 1998 to J une 30, 2009, Mr. McLaughlin served as a Vice-
President of the IUOE General Executive Board. He was re-elected by the general
members of the IUOE every 5 years to serve as a Vice-President of the IUOE.
On J une 30, 2009, there were 14 Vice-Presidents that served on the General
Executive Board. At the time he was forced to resign as Vice-President, he was the
second most senior Vice-President of the IUOE. Plaintiff McLaughlin limits his
claims in this action to those events occurring on or after May 1, 2012.
11. Plaintiff Daniel Himmelberg is, and at all relevant time was, a member
of Local 501. Mr. Himmelberg was Chairman of the J AC, a Taft Hartley trust fund
at local 501, and also served local 501 as its Assistant Business Manager. Plaintiff
Himmelberg limits his claims in this action to those events occurring on or after
May 1, 2012.

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12. Plaintiff Glenn Szalay is, and at all relevant time was, a member of
Local 501.
13. Plaintiff J ay Brophy is, and at all relevant time was, a member of
Local 501.
14. Plaintiff Anne Brophy is, and at all relevant time was, a member of
Local 501.
15. Plaintiff Cheryl Culbreath is, and at all relevant time was, a member of
Local 501.
16. Plaintiff Robert Fox is, and at all relevant time was, a member of Local
501. Robert Fox is a former Business Manager of Local 501 and former Vice
President of the IUOE. Mr. Fox retired as Business Manager of IUOE Local 501
and IUOE Vice President in 1992.
17. Plaintiff J ohn Crooks is, and at all relevant time was, a member of
Local 501 assigned to the Las Vegas division of Local 501.
18. Plaintiff Nye Nelson is, and at all relevant time was, a member of
Local 501 and retired from the position of Business Agent in Los Angeles.
19. Plaintiff Linda Pette is, and at all relevant times, was:
(a) the spouse of Local 501 member Finn Pette; and,
(b) a beneficiary of member Finn Pettes pension and healthcare
benefits, provided by the General Pension and the Health &
Welfare Fund, respectively.
20. Plaintiff J udy McLaughlin is, and at all relevant times, was:
(a) the spouse of Local 501 member J ames McLaughlin; and,
(b) a beneficiary of member J ames McLaughlins pension and
healthcare benefits, provided by the General Pension and the
Health & Welfare Fund, respectively.
21. Plaintiff Christine Himmelberg is, and at all relevant times, was:
(a) the spouse of Local 501 member Dan Himmelberg; and,

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(b) a beneficiary of member Dan Himmelbergs pension and
healthcare benefits, provided by the General Pension and the
Health & Welfare Fund, respectively.
22. Plaintiff Erik B. Smith is, and at all relevant time was, a member of
Local 501.
23. Plaintiff Christopher Menor is, and at all relevant time was, a member
of Local 501.
24. Plaintiff Patrick Adams is, and at all relevant time was, a member of
Local 501. Plaintiff Patrick Adams last served in the position of SuperChief before
being terminated by Defendant Able Engineering Servicesfor cooperating with
Local 501 members actively resisting IUOEs efforts to control Local 501 and
oppress its members.
25. Plaintiffs reserve the right to seek leave to amend this complaint to add
new plaintiffs, if necessary, in order to establish suitable representative(s) of the
Class proposed herein and/or any necessary sub-Class.

B. Defendants
26. Defendant International Union of Operating Engineers is a trade union
that primarily represents operating engineers, who work as heavy equipment
operators, mechanics, and surveyors in the construction industry, and stationary
engineers, who work in operations and maintenance in building and industrial
complexes, and in the service industries. IUOE also represents nurses and other
health industry workers, a significant number of public employees engaged in a
wide variety of occupations, as well as a number of job classifications in the
petrochemical industry. Local 501 is a stationary local.
27. Defendant J ames T. Callahan is the General President (GP) of
IUOE, allegedly selected in November 2011. Callahans ascension to the position
of GP was nothing than an appointment by outgoing GP Giblin, as all officers of

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GEB swear allegiance to the GP and to his named successor. There has never been
a contested election in the history of the IUOE for the position of General
President. Defendant Callahan served as the IUOE General Secretary-Treasurer and
was chosen as IUOE Vice President in 2008. Defendant Callahan is also a Trustee
of the IUOE General Pension Fund.
28. Defendant Brian E. Hickey is General Secretary-Treasurer of IUOE,
chosen in November 2011. Mr. Hickey has served as an IUOE Vice President
since 2001. Defendant Hickey is also a Trustee of the IUOE Central Pension Fund
and also Business Manager of Local 399, located in Chicago, Illinois. Local 399 is
also a stationary local. Defendant Hickey is the Treasurer of IUOEs EPEC
Political Action Fund.
29. Defendant William C. Waggoner is the First Vice President of IUOE.
Mr. Waggoner was first chosen as an IUOE Vice President in 1980. Mr. Waggoner
is also the Western States Director and Business Manager of Local 12
headquartered in Pasadena, California. Local 12 is a hoisting and portables local
which principally engages in the construction industry.
30. Defendant Patrick L. Sink is the Third Vice President of IUOE. Mr.
Sink was first chosen as an IUOE Vice President in 2004. Mr. Sink is Business
Manager of IUOE Local 18 headquartered in Cleveland, Ohio. Local 18 is a mixed
local in that it has both a hoisting and portables division and a stationary division
(18s).
31. Defendant J erry Kalmar is the Fourth Vice President of IUOE. Mr.
Kalmar was first chosen as an IUOE Vice President in 2005. Mr. Kalmar is the
Business Manager of IUOE Local 39. Local 39 is a stationary local headquartered
in San Francisco, California.
32. Defendant Russell E. Burns is the Fifth Vice President of IUOE. Mr.
Burns was first chosen as an IUOE Vice President in October 2006. Mr. Burns is
the Business Manager for IUOE Local 3 headquartered in Alameda, California.

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33. Defendant Rodger Kaminska is the Sixth Vice President of IUOE. Mr.
Kaminska was first chosen as an IUOE Vice President in 2008. Mr. Kaminska is
the Business Manager for IUOE local 101 headquartered in Kansas City, Missouri.
34. Defendant J ames M. Sweeney is the Seventh Vice President of IUOE.
Mr. Sweeney was first chosen as an IUOE Vice President in 2009. Mr. Sweeney is
Business Manager for IUOE Local 150 headquartered in Countryside, Illinois.
35. Defendant Robert T. Heenan is the Eighth Vice President of IUOE.
Mr. Heenan was first chosen as an IUOE Vice President in 2009. Mr. Heenan is the
Business Manager of IUOE Local 542 headquartered in Fort Washington,
Pennsylvania.
36. Defendant Daniel J . McGraw is the Ninth Vice President of IUOE.
Mr. McGraw was first chosen as an IUOE Vice President in 2011. Mr. McGraw
also has served as the Northeast Regional Director for the IUOE and is
headquartered in Albany, New York. He is also the Business Manager for IUOE
Local 158 headquartered in Albany, New York. IUOE locals in Albany, Rochester,
Binghamton and Syracuse were merged to form Local 158. The merger was
completed in J anuary 2012.
37. Defendant Daren Konopaski is the Tenth Vice President of IUOE. Mr.
Konopaski was first chosen as an IUOE Vice President in 2011. Mr. Konopaski is
the Business Manager of IUOE Local 302 headquartered in Bothell, Washington.
38. Defendant Michael Gallagher is the Eleventh Vice President of IUOE.
Mr. Gallagher was first chosen as an IUOE Vice President in 2011. Mr. Gallagher
is the Business Manager of IUOE Local 793 headquartered in Oakville, Ontario,
Canada.
39. Defendant Greg Lalevee is the Twelfth Vice President of IUOE. Mr.
Lalevee was first chosen as an IUOE Vice President in 2011. Mr. Lalevee is the
Business Manager for IUOE Local 825 headquartered in Springfield, New J ersey.

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40. Defendant Terrance E. McGowan is the Thirteenth Vice President of
IUOE. Mr. McGowan was first chosen as an IUOE Vice President in 2011. Mr.
McGowan is also a Trustee of the IUOE General Pension Fund. He is the Business
Manager of IUOE Local 139 headquartered in Pewaukee, Wisconsin.
41. Defendant Louis G. Rasetta is the Fourteenth Vice President of IUOE.
Mr. Rasetta was first chosen as an IUOE Vice President in 2012. Mr. Rasetta also
serves as the Chairman of the Board of the IUOE General Pension Fund. He is
Business Manager of IUOE Local 4 which is headquartered in Medway,
Massachusetts.
42. Defendant Vincent (Vince) Giblin was General President of IUOE
from about 2005 until his retirement in November 2011.
43. Defendant J ames Van Dyke was the Chief of Staff for IUOE, but he is
now retired.
44. Defendant Richard Griffin was General Counsel for IUOE and has
since left that position.
45. Defendant Chris Brown was the former Business Manager of Local
501, having been appointed by GP Giblin to fill the vacancy created when Giblin
forced Mr. McLaughlin to resign as the duly elected Business Manager of Local
501. Mr. Brown was later removed from that position by Callahan after Mr. Brown
disclosed Callahans instruction to Mr. Brown to provide false testimony at a
deposition. Mr. Brown also served as a Trustee for the Health & Welfare Trust
Fund.
46. Defendant Louis Levy was an attorney that represented the Board of
Local 501 and membership of Local 501. Mr. Levy previously worked for IUOE
three years earlier, performing legal services.
47. Defendant Randy Henningfield was a Certified Public Accountant
hired to audit Trusts for Local 501, including the Apprentice Training Fund (J AC).
Henningfield was married to Cynthia Escanuelas.

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48. Defendant Paul Bensi is the CEO of Able Engineering Services and a
Trustee of the Central Pension Fund for the IUOE. Mr. Bensi, at all times relevant,
served as an employer/management Trustee on the Local 501 J AC board. Mr.
Bensi served as a Trustee for the Health & Welfare Trust Fund through at least
2012. Mr. Bensi is one of only two Employer Trustees for the Local 39 Pension
Plan. Mr. Bensi is also one of only two Employer Trustees on the Local 39
Annuity Trust Fund. Mr. Bensi also serves on the J oint Apprenticeship Committee
for Local 39.
49. Defendant Sandra Acosta was, at all relevant times, an employee of
IUOE Local 501. Mrs. Acosta served as a business representative.
50. Defendant Cornell Sneekes was, at some relevant times, an employee
of ABM. Mr. Sneekes served as an employer/management Trustee on the Local
501 J AC board. ABM had under-contributed to the J AC Trust Fund during many
of the years that Mr. Sneekes served as a Trustee.
51. Defendant J im Scranton was, at relevant times, the President of ABM
Engineering Services. Mr. Scranton served as an employer/management Trustee on
the Local 501 J AC board. ABM had under-contributed to the J AC Trust Fund
during many of the years that Mr. Scranton served as a Trustee. Mr. Scranton
served as a Trustee for the Health & Welfare Trust Fund through at least 2009.
ABM had under-contributed to the Health & Welfare Trust Fund during many of
the years that Mr. Scranton served as a Trustee.
52. Defendant Dennis Lundy was, at relevant times, the Director of J AC.
Dennis Lundy also serves on the J oint Apprenticeship Committee, California Unit
#12, for Local 39. Dennis Lundy now serves as Western Regional Director of
IUOE.
53. Defendant Cynthia Escanuelas was, at relevant times, the office
manager for J AC.

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54. Defendant Able Engineering Services is a business entity wholly
owned by Able Services.
55. Defendant ABM Engineering Services is a business entity owned by
ABM Industries, Inc.
56. Defendant Enrique (Rick) Alcala is a member of Local 501. He was
at one time an instructor for the J AC.
57. Defendant Ed Curly is the current Business Manager of Local 501.
Defendant Ed Curly was appointed by IUOEs GP to this position after Chris
Brown was terminated by Callahan following Mr. Browns appointment by former
GP Giblin. Defendant Ed Curly is currently operating Local 501 under the
supervision of the current President, J ames Callahan. Mr. Curly served as a
Trustee for the Health & Welfare Trust Fund.
58. Defendant Mike Russell is a former President of Local 501 and former
Executive Board member.
59. Defendant J ohn (J ack) T. Ahern is the current Business Manager of
Local 30, located in Richmond Hill, New York. Mr. Ahern served as a General
Executive Board Member for IUOE and is currently serving on the General
Executive Board as one of five trustees for IUOE.
60. Defendant J ohn M. Holliday is the current Business Manager of Local
917, located in Chattanooga, Tennessee. Mr. Holliday is currently serving on the
General Executive Board as one of five trustees for IUOE.
61. Defendant Kuba J . Brown is the current Business Manager of Local
94, located in New York City, New York. Mr. Brown is currently serving on the
62. Defendant Bruce Moffatt is the current Business Manager of Local
955, located in Edmonton, Alberta, Canada. Mr. Moffatt is currently serving on the

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63. Defendant J ames T. Kunz, J r. is the current Business Manager of Local
66, located in Pittsburgh, Pennsylvania. Mr. Kunz is currently serving on the
64. Defendant J ames Zazzali is a retired New J ersey Supreme Court
J ustice. Mr. Zazzali is currently associated with the law firm Zazzali, Fagella,
Nowak, Kleinbaum, and Friedman, located in Newark, New J ersey. He was
appointed by former IOUE General President to the position of Ethics Officer in
2007. His hiring was ratified at the General Convention in 2008.
65. Defendant Michael R. Fanning is the Chief Executive Officer for the
General and Central Pension Funds.
66. Defendant CVS Caremark Corporation is a Delaware corporation
CVS Caremark Corporation (Caremark) was formed following the 2007 merger
of CVS Corporation and Caremark Rx, Inc. Defendant Caremark is not currently
qualified to conduct business in California, according to the California Secretary of
States website.
67. Defendant Trivantage Pharmacy Strategies, LLC is a business entity
organized in a state not currently known to Plaintiffs. In 2009, Trivantage
Pharmacy Strategies, LLC was acquired by Thomson Reuters. In 2012, Thomson
Reuters agreed to sell Thomson Healthcare, including Trivantage Pharmacy
Strategies, LLC, to Veritas Capital. The new company that was created out of this
sale is Truven Health Analytics.
68. Defendant Truven Health Analytics, Inc. is a Delaware corporation
and the successor-in-interest to the obligations of Defendant Trivantage Pharmacy
Strategies, LLC a business entity acquired by Thomson Reuters in 2009. On
information and belief, Defendant Truven Health Analytics is financially
responsible for the misconduct of Defendant Trivantage Pharmacy Strategies, LLC,
though it is not alleged that Defendant Truven Health Analytics participated in any

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manner in the misconduct perpetrated by Defendant Trivantage Pharmacy
Strategies, LLC.
69. Plaintiffs do not know the true names or capacities of the persons or
entities sued herein as DOES 1-10, inclusive, and therefore sue said Defendants by
such fictitious names. Each of the DOE Defendants was in some manner legally
responsible for the violations alleged herein. Plaintiffs will amend this complaint
to set forth the true names and capacities of these Defendants when they have been
ascertained, together with appropriate charging allegations, as may be necessary.
70. At all times mentioned herein, the Defendants named as DOES 1-10,
inclusive, and each of them, were residents of, doing business in, availed
themselves of the jurisdiction of, and/or injured Plaintiffs and aggrieved employees
in the State of California, among other locations.
71. At all times mentioned herein, each Defendant was the agent, servant,
or employee of the other Defendants and in acting and omitting to act as alleged
herein did so within the course and scope of that agency or employment.
72. The term Defendants as used herein includes DOES 1-10.

IV. DEFENDANTS MI SCONDUCT
A. About the I UOE
73. The International Union of Operating Engineers (IUOE) is a trade
union that primarily represents operating engineers, who work as heavy equipment
operators, mechanics, and surveyors in the construction industry, and stationary
engineers, who work in operations and maintenance in building and industrial
complexes, and in the service industries. IUOE also represents nurses and other
health industry workers, a significant number of public employees engaged in a
wide variety of occupations, as well as a number of job classifications in the
petrochemical industry.

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74. Founded in 1896, IUOE today has approximately 400,000 members in
approximately 123 local unions throughout the United States and Canada. IUOE is
the 10th largest union in the AFL-CIO.

B. I UOE Forced Plaintiffs Serving As Officers or Employees of Local
501 and Others to Contribute to the Presidents Club/EPEC, a
Political Action Fund
75. Vince Giblin, as General President of IUOE, dramatically increased
contributions to IUOEs Political Action Fund, the Presidents Club/EPEC,
previously and sometimes still known just as EPEC. However, he did so by
engaging in illegal conduct. Giblin required any officer, organizer, instructor,
coordinator, business agent or district representative of a local union or its affiliate
operation, such as a training trust to contribute to the Presidents Club. Officers
were told that if they wanted to serve as an officer, organizer, instructor,
coordinator, business agent or district representative, they had no choice but to
contribute to the Presidents Club, in amounts ranging from hundreds to thousands
of dollars a year. On information and belief, the obligation to contribute extended
beyond the local level to IUOE employees and affiliates of IUOE.
76. All other Local unions were similarly required to contribute, on a
mandatory basis, to the Presidents Club Political Action Fund. The annual
contribution to the Presidents Club Fund from the employees and officers of all
Local unions is estimated to exceed $2.5 million per year and is in the range of $2
million to $3 million per year. In 2012, the total contributions to the fund were
$3,023,901.12. A small portion of those contributions were additional
contributions from other members, but the vast portion consists of mandatory
contributions from officers and employees of Locals around the country. The FEC
Committee ID for the Fund is C00029504.

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77. The mandatory nature of the contributions was part of IUOEs and
Giblins desire to elevate the stature of IUOE as a political force through aggressive
donations to political candidates. These contributions are used, in part, to shield
IUOE from the full intensity of regulatory scrutiny. IUOEs average expenditures
doubled in 2006 and reached an unprecedented level in 2012:

78. Rather than soliciting contributions from members, IUOE, in
violation of the Federal Election Campaign Act and Federal Election Commission
rules, mandated that officers and employees contribute to the Presidents
Club/EPEC, in the amount of 1% of compensation, up to 1% of $80,000.
Contribution forms are included as part of the new-hire paperwork. Individuals are
first encouraged to complete the authorization paperwork. When mere
encouragement fails, hardball tactics are applied, and the resisting individual is told
that they must contribute if they want to keep their job.
79. In California, at least $10,000 of EPEC funds were used to defeat
Proposition 226, the so-called Paycheck Protection initiative, which would have

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required unions to obtain written permission annually before they could use their
members dues for political activity. Choice is anathema to IUOE.
80. In 2008, after already pressing for increased contributions from
officers and employees, Giblin and International implemented a plan to circumvent
union member consent and collect a five-cent per hour political contribution
directly from employers, through collective bargaining agreements. The local
unions were directed to negotiate this provision and then supply employers with
check-off lists of union members from whom the contributions would be
automatically deducted from their paychecks, even though the union members were
often unaware that this was occurring and had not consented to it. At the 2008
IOUE General Convention, IUOE resolved, in Resolution 12, that:
NOW THEREFORE. BE IT RESOLVED that each IUOE local union
make it a top priority to negotiate at least a five-cents per hour check-
off in all collective bargaining agreements for the purpose or raising
volun1ary political contributions;
BE IT FURTHER RESOLVED that it is mandatory that the
International negotiate at least a five-cents per hour check-off in all
national collective bargaining agreements for the purpose or raising
voluntary political contributions;
However, this practice was already underway in IUOE, and the IUOE Board
merely ratified this illegal practice that Giblin had already instituted after assuming
the General Presidency in and around 2005, between the conventions that occur
once every five years. The end result was that members around the county were
forced into political contribution schemes without voluntarily consenting to
participation. The results of this illegal behavior speak for themselves, as IUOEs
political collections and expenditures skyrocketed under Giblins control. In the
37
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Convention Program, Giblin boasted about the results of his unlawful political
contribution collection schemes when he wrote:
Also, the IUOE today ranks near the top of national lists as one of the
most active union political players in terms of influence and voluntary
contributions. Considering that three years ago we couldnt be found

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on anyones political list, this is a very noteworthy accomplishment
and one we have every intention of continuing to improve on as we
move forward.
What is implausible about this claim is the characterization of contributions as
voluntary. At that same convention, contributions from members were mandated
to be included in collective bargaining agreements, and officers and employees of
locals around the country experienced extortive pressure to contribute upon threat
of job loss, eliminating any pretense of choice. Financial threats of economic harm
and retaliation, in violation of the Hobbs Act, among other laws, were used, at the
direction of IUOE and Giblin, to obtain the dramatically increased contribution
levels about which Giblin boasted.

C. Plaintiffs Discovered Many Examples of Embezzlement and Asset
Diversion from Local 501 and I UOE Accounts Created for the
Benefit of Union Members
1. Dennis Lundy Embezzled from the Apprenticeship Trust
Account, but I UOE President Giblin Protected Lundy
81. In 2007, Dennis Lundy was in charge of the Local 501 Apprenticeship
Trust.
82. Mr. McLaughlin questioned the expenditures by Mr. Lundy, which
were found to be excessive. A spending limit was imposed on Mr. Lundy,
requiring a second signature on checks, at least above a pre-determined limit, if not
on all check. Lundy bypassed Mr. McLaughlin and Don Mear and sought out J AC
Trustee Cornel Sneekes, his personal friend, to sign checks and permit Lundy to
continue his excessive spending and embezzlement from the J AC Fund. Sneekes
was aware that the expenditures were excessive and unlawful. By signing the
checks, Sneekes helped to conceal Lundys illegal conduct. In his position as
Trustee of the Local 501 Apprenticeship Fund, Lundy also forged Mr.

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McLaughlin's signature on checks from that fund. Mr. Lundy also charged many
thousands of dollars in lunches to the fund, though the lunches were not for any
Fund business purposes. Instead, Mr. Lundy was cavorting with Cynthia
Escanuelas, an employee of Local 501 with whom he was having an affair. Mr.
Lundy also charged substantial amounts of liquor or other alcoholic beverages and
even pornographic video to the Fund. The pornographic video was charged to a
hotel room charge during Lundy's visit to New York City to attend an award
ceremony from an Irish-American group to J ohn T. Ahern. The room was rented in
the name of J ohn T. Ahern, Business Manager of IUOE, Local 30 and an
International Trustee. Local 501 Bylaws prohibit alcohol charges. Moreover, there
were no room charges to Local 501 for any Local 501 employee that attended the
award ceremony. Local 501 was advised that J ohn T. Ahern would take care of all
of the charges. The hotel itself would have been within Local 30s jurisdiction and
used operating engineers.
83. Mr. Giblin created Regional Director positions and promoted Mr.
Lundy to the position of Western Regional Director. Mr. Lundy is a personal friend
of Defendant Giblin from their time together in New J ersey. Following Mr.
Giblin's appointment of Dennis Lundy to the position of Western Regional
Director, Mr. Lundy hired Cynthia Escanuelas, his mistress as his new assistant.
Thus, she became an employee of the International.
84. In fact, Lundy is so fully protected by Giblin, that he, Giblin, and,
later, Van Dyke, are the only individuals allowed to work full time for the IUOE
and draw their full pensions from the General Pension Fund simultaneously along
with their work as union members While this arrangement is a violation of the
General Pension Fund rules, as applied by previous General Presidents and General
Executive Board members, Giblin exerted such control over IUOE and its Trustees
and General Executive Board other officers that it was allowed without challenge.
The Fund's rules were never changed to prevent this double-dipping.

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85. After Mr. Lundy started his new job, Mr. McLaughlin reviewed the
Apprenticeship Trust financial records and found a number of improper, personal
charges related to food, beverage, and travel purchases. Mr. McLaughlin
immediate1y began an investigation and brought in Finn Pette, a Business
Representative and elected officer of Local 501, and Daniel Himmelberg, the
Assistant Business Manager, to assist in the investigation.
86. Mssrs. Himmelberg and Pette investigated the embezzlement charges.
They hired an accounting firm and retained a separate lawyer, who was not
affiliated with Local 501. They also notified the Department of Labor and filed
revised reports for the trust account. Mssrs. Himmelberg and Pette received a report
from the accounting firm and sent Mr. Lundy a demand for repayment of roughly
$4,000.00. The auditors could not examine charges prior to December 2006,
though they noted that the card existed since J uly 2003. Amazingly, Business
Manager J im McLaughlin had no idea that Lundy had obtained a Visa for the J AC
Trust. Lundy lacked the authority to apply for the Visa for the J AC without the
Trustees authorization or the authorization of the Business Manager. No such
authorization was given.
87. An outside auditor concluded that of $56,670.51 charged to the
Apprenticeship Trust Fund by Lundy from J anuary 2007 to J uly 2007, $13,087.19
constituted meals and entertainment, $13,223.70 constituted travel and lodging, and
$16,810.45 constituted books and equipment. Many of Lundy's charges were for
nothing more than expensive lunches with his mistress, Cynthia Escanuelas. Over
20% of the charges to the fund had no supporting receipt. The unsupported charges
amounted to $19,401.23. At least $4,970.19 of Lundy's meal charges appeared to
have no business purpose.
88. The outside auditor also examined charges to Amex and Visa cards
issued for the Trust, for the billing period of J anuary 2006 to December 2006.
During that time, of $84,352.58 charged, $20,634.05 constituted meals and

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entertainment, $24,397.52 constituted travel and lodging, and $30,380.11
constituted books and equipment. Over 20% of the charges had no receipts. 62
meal transactions, totalling $7,944.78, were undocumented. Total unsupported
charges amounted to $28,981.54. It is believed that some of the unsupported
charges were false submissions used to embezzle funds for a cosmetic breast
augmentation procedure Lundy obtained for Cynthia Escanuelas. The auditors
findings are attached hereto as Exhibit 1.
89. Messrs. Himmelberg and Pette also brought the results of their
investigation to the attention of the Department of Labor (DOL). The first
interaction with DOL EBSA was in November of 2007. Agent J ulie Lowrie
showed up at the Los Angeles office of Local 501 to inform them she was
investigating a "criminal investigation" of fund money abuses of Mr. Dennis
Lundy, formerly the Director of the Los Angeles J AC. After interviewing J im
McLaughlin, Dan Himmelberg and Finn Pette she left and said she would "be in
touch". She wasn't.
90. In Late April or early May of 2008, Robert H. Fox J r., former Business
manager of Local 501 and Finn Pette both made a visit to the Pasadena office of the
EBSA to check in with Ms. Lowrie. At that time, they were interviewed for four to
five hours. In addition to providing all the documentation that encompassed the
internal investigation, they provided her with a complete description of how, and
why the Trustees "covered up" the excess charges and told her details regarding the
undue influence of General President Vincent Giblin, and the threats and
intimidation techniques he used. Ms. Lowrie assured Mr. Pette and Mr. Fox that
she would "get back" to them. She never did.
91. Several months elapsed and again Mr. Fox and Mr. Pette scheduled an
appointment at the Pasadena office of EBSA. Upon their arrival, they were told that
Ms. Lowrie has retired, and in fact the day of their last interview was her last day at
the office. They met a young man who seemed to know nothing of the

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investigation. He asked them again to go through all the details again. They spent
another four to five hours telling the exact same story they had already told, and
advised him that all the documentation had already been handed over to Ms.
Lowrie, but they could provide another copy if so requested. He said he would
reach out to them to get the copy of documentation if he couldn't locate it in the
files.
92. Again, several months went by and Mr. Fox and Mr. Pette made
another appointment at the Pasadena office. When they arrived they were told that
the gentleman they had met the last time had transferred to another office and they
were introduced to yet another DOL-ESBA agent and again went through the
whole story. They said there was an "on-going" investigation and they could not
disclose what was happening, but, again, said they would "be in touch". They never
were.
93. The harms resulting from DOLs inaction and/or inexcusably lethargic
action are discussed in greater detail below.
94. At the last International Convention, several officers of Local 501
approached Richard Griffin, who was, at that time, the general counsel for IUOE,
and provided him with a package containing audit data that they had collected at
that time. Attorney Griffin was advised that Lundy had engaged in crimes
involving embezzlement of Trust account funds and Local 501 member monies.
The 501 officers asked for help from Attorney Griffin. Attorney Griffin took the
package and promised to "get back to them" soon. Instead of providing assistance,
Attorney Griffin did nothing other than deliver information to Giblin and IUOE, as
evidenced by Giblin's sudden involvement to suppress the investigation. Attorney
Griffin failed to report crimes occurring in Local 501 to the appropriate authorities.
Attorney Griffin's silence and complicity was so egregious that he failed to even
attempt to prevent Vincent Giblin and the International from committing further
crimes or fraud against the officers of local 501 and the 501 membership. The

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result of Attorney Griffin's actions or inaction was reasonably certain to result in
substantial injury to the financial interests or property of another individual,
members, or to an IUOE affiliate organization.
95. What the Local 501 officers did not fully understand at the time was
that Griffin had a several-decade-long history of overseeing the IUOE organized
crime syndicate to help it evade detection by law enforcement. For example, since
at least the 1990s, IUOE claimed to provide hazardous materials handling trainings
through grants from governmental agencies, including the Department of Labor,
Department of Energy and the Environmental Protection Agency, at the United
States Department of Labor National Mine Health and Safety Academy near
Beckley, West Virginia. However, IOUE used these federal grant monies to,
among other things, instruct IOUE members in union organizing techniques and,
later, computer hacking techniques intended to be used on employers unwilling to
negotiate a collective bargaining agreement. Griffin, as head of the legal
department for IUOE, as well as other attorneys subordinate to him, such as Mike
Fanning, attended the Academy while these organizing classes were conducted,
thought J eff Fiedler was doing a phenomenal job, and encouraged his organizing
and espionage classes. Griffin (and Fanning) was aware of the misuse of these
federal grant monies, but took no action to stop the illegal conduct or report the
illegal conduct. Instead, Mr. Griffin (and Fanning) facilitated it by allowing
instruction from individuals including J effrey Fieldler, who taught hacking classes.
Mr. Fiedlers activities were charged against federal grant monies. This same Mr.
Fiedler, the director of Special Projects for IUOE, has been called upon by IOUE to
essentially run the Las Vegas operations of Local 501 and pave the way for the
merger or dismemberment of Local 501. Mr. Fiedler is also in Las Vegas to
spearhead an effort by IUOE to prevent Macau business interests from capitalizing
on the Las Vegas market without IUOE having any ability to control the degree of
infiltration.

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96. Mr. Lundy's friend, Sandra Acosta, called Mr. McLaughlin and told
him Mr. Lundy wasn't going to pay the money back to the trust and that Mr.
McLaughlin had "better back off" on insisting Mr. Lundy pay the money back to
the trust because Mr. Lundy had "friends." Mrs. Acosta was undoubtedly informed
and sincere in her warning, given that she vacationed annually with William
Waggoner and his wife, Patty Waggoner. Mr. McLaughlin received an angry call
from the then IUOE General President Vince Giblin around the early part of 2008.
Mr. Giblin demanded Mr. McLaughlin "drop" the investigation. Mr. Giblin told
Mr. McLaughlin that he "owed" Mr. Giblin because Mr. Giblin knew Mr. Lundy
was going to run for Business Manager and told Mr. McLaughlin that he had
"[taken] Dennis off [his/McLaughlin's] hands."
97. Mr. McLaughlin told Mr. Giblin that he couldn't stop the investigation.
From early 2008, until J une 2009, Mr. Giblin harassed and threatened Mssrs.
McLaughlin, Himmelberg, and Pette. Mr. McLaughlin was the 2nd Vice-President
of the IUOE Executive Board and was a trustee on the Central Pension Trust. Mr.
Giblin displayed contempt for Mr. McLaughlin at Board and Pension Trust
meetings, and when Mr. Giblin found out that Mssrs. Himmelberg and Pette had
accompanied Mr. McLaughlin to an IUOE meeting in Chicago, Mr. Giblin told Mr.
McLaughlin if he saw either Mr. Himmelberg or Mr. Pette he would fire them "on
the spot," notwithstanding that, at all times relevant, Himmelberg and Pette were
employees and elected officers of Local 501. Mr. Giblin also told Mr. McLaughlin
that he was going to "punch their ticket," referring to Mssrs. McLaughlin,
Himmelberg, and Pette.
98. In an unprecedented move and based solely upon the receipt of
anonymous letters, Mr. Giblin directed the IUOE ethics officer former New J ersey
Supreme Court J udge J ames R. Zazzali to investigate Mr. McLaughlin. It is now
known, Michael Russell, a local 501 employee based in Las Vegas, and personal
friend of Dennis Lundy wrote the anonymous letters at the request and

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encouragement of Dennis Lundy. Mr. Russells testimony setting forth this
admission is attached hereto as Exhibit 2. However, no charges were brought
against Mr. McLaughlin because Mr. McLaughlin provided documents and
responses that supported Mr. McLaughlins position that he had done nothing
wrong. To the knowledge of all class representatives in this action, ethics officer
Zazzali failed to finalize a report detailing his findings in connection with local
501. After ethics officer Zazzali agreed to consider and begin an investigation
based upon Mike Russells anonymous letters to him regarding local 501, a flood of
anonymous letters regarding local 501 began to flow in to the ethics officer.
Rather than investigating the merits of these other anonymous letters as he did with
respect to Mr. McLaughlin, and realizing he had created a serious problem, ethics
officer Zazzali caused an article to be published in the IUOE publication
concerning anonymous letters. A copy of that article is attached hereto as Exhibit
3.
99. Meanwhile, J AC Trustees under Giblins control worked on their end
to also shield Lundy from accountability. J im Scranton moved to suspend the
investigation into Lundy. Scranton separately moved to exonerate Lundy from all
charges related to his excessive expenditures related to alcohol and almost daily
lunches with his secretary-mistress Cynthia Escanuelas because, Mr. Scranton
observed, there were no specific rules saying that the purchase of large quantities of
alcohol or daily lunches with ones mistress were specifically prohibited under the
J AC bylaws or employee conduct regulations. But Scrantons motion was
inconsistent with 30 years of past practice, wherein it was not permitted to spend
J AC monies in manner that Lundy did. Mr. Fox has advised Lundy in 2008 that
were he still the Business Manager, he would have prosecuted Lundy to the fullest
extent possible, despite having hired Lundy many years ago. See Exhibit 29. In
short, Scranton sought to conceal what a founding member of Local 501 would
have prosecuted.

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100. On or about J une 9, 2009 Robert Fox, the previous Business Manager
of Local 501 and former International Vice President received a call from
Defendant Vincent Giblin, IUOE General President. Mr. Giblin was extremely
upset with J ames McLaughlin, the Business Manager of Local 501 at that time.
Mr. Giblin said to Mr. Fox, "I told that fat fuck [J ames McLaughlin] to make that
Lundy thing disappear and he never did. That lazy fat fuck has to go!" Mr. Fox
was a trusted confident of Mr. McLaughlin and knew about the Lundy reference,
having already heard from Mr. McLaughlin that Mr. Lundy had embezzled funds
from the Apprenticeship Trust at Local 501.
101. On or about the morning of J une 11, 2009, Mr. Giblin called Mr.
McLaughlin and ordered Mr. McLaughlin to resign as Business Manager and Vice-
President of the Executive Board. Mr. Giblin also removed Mr. McLaughlin as a
Trustee of the IUOE Central Pension Trust. Initially, Mr. McLaughlin refused to
submit his resignation, stating that he had done nothing wrong. Mr. Giblin
threatened to separate the Las Vegas membership from Local 501 if Mr.
McLaughlin didn't resign. Mr. Giblin told Mr. McLaughlin that if he didn't resign,
he would be "the Business Manager of nothing!" Mr. Giblin ended the conversation
by telling Mr. McLaughlin that he had to direct all communications to the IUOE's
general counsel at that time, Richard Griffin. Mr. Giblin then abruptly hung up the
phone.
102. Local 501 originated the Central Pension Fund. Local 501 deposits
started that fund. Because of this, Local 501 does not have its own local pension
like many other Locals do. When Giblin forced out Mr. McLaughlin, a sitting VP
of the IUOE, the Business Manager of Local 501, and a Trustee of the Central
Pension Fund, this left Local 501 with no elected official capable of attempting to
protect Local 501 memberships' interest in the Central Pension Fund, which is
Local 501's only pension fund.

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103. J ames McLaughlin faced multiple obnoxious and often threatening
telephone calls weekly from Vincent Giblin. It was clear to McLaughlin and the
other union officers that the tone and posture of Vincent Giblin was increasing in
intensity. Although McLaughlin received the calls directly, Giblins screaming
into the phone at McLaughlin was heard by other officers and employees alike
working in the Local 501 office. These threatening calls continued from 2007 until
the day McLaughlin resigned.
104. In an effort to quiet Vincent Giblin, J ames McLaughlin reached out to
Attorney Michael R. Fanning, the Chief Executive Officer for the General and
Central Pension Funds, over the issue of J ackie Foley, a retired local 501 employee.
Prior to reaching out to Attorney Fanning, McLaughlin had received numerous
calls from Vincent Giblin accusing him of having allowed J ackie Foley to work in
excess of 35 hours in any given month. Although McLaughlin had advised Vincent
Giblin that this never happened, as did J ackie Foley, Vincent Giblin was relentless
in his pursuit of the false Foley allegations with J ames McLaughlin as a pretext for
finding a reason to force the resignation of McLaughlin. At all times relevant,
J ames McLaughlin, a trustee on the Pension Trust Board, understood and abided by
the rules governing the employment of retirees, including J ackie Foley. The
perverse irony of this false accusation was that Giblin had required the Trustees of
the General Pension Fund to create an exception for him and Dennis Lundy,
allowing them to work fulltime and also collect their General Pension Fund
benefits, in violation of the Funds administration rules. The IUOE Constitution
requires the GP position to be a fulltime position. At the same time, Giblin was
receiving a salary from Horizon Blue Cross/Blue Shield as the Chairman of the
Board. Despite both these handsome salaries, Giblin forced the Trustees to violate
the General Pension Fund rules and provide yet another source of revenue.
105. Contrary to both J ames McLaughlins and J ackie Foleys statements to
Attorney Fanning, Attorney Fanning took the position and advised McLaughlin to

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admit he had permitted Foley to work in excess of 35 hours in a month.
McLaughlin protested that this was not true, but Attorney Fanning stated to
McLaughlin that Vincent Giblin was not going to drop this issue or leave
McLaughlin alone until the Fund could put this issue to rest. Attorney Fanning
advised McLaughlin that Giblin would drop the issue and everything could go back
to normal if he admitted the false allegation that Foley worked in excess of 35
hours. McLaughlin finally agreed to allow Attorney Fanning to take an admission
back to Vincent Giblin concerning the false Foley allegation, while continuing to
protest that it was untrue. Attorney Fanning, an officer of the Court, not only
advised a trustee of the Fund to lie, but indicated that unless McLaughlin did lie as
directed, Vincent Giblin would continue to target local 501 and McLaughlin with
continuing harassing calls, threatening calls, and action adverse to local 501, its
officers, and its membership. Shortly thereafter, while in route to Washington to
attend a meeting of the trustees, McLaughlin received a telephone call from
Vincent Giblin demanding his immediate resignation from his position as Fund
trustee.
106. Mr. McLaughlin called a meeting with Mr. Pette and Mr. Himmelberg
in his office. They decided to contact Local 501's attorney to find out what could be
done. Mr. McLaughlin called attorney Adam Stern and attorney Stern agreed to
come to the Local 501 office later that morning. At about the same time, Mr. Fox
came into Mr. McLaughlin's office. Mr. Fox told Mssrs. McLaughlin, Himmelberg,
and Pette about the conversation he had with Mr. Giblin the prior evening and Mr.
McLaughlin told Mr. Fox about the conversation that he had with Mr. Giblin earlier
that morning, including Mr. Giblin's death threats directed at Mssrs. McLaughlin,
Himmelberg, and Pette. Mr. Fox agreed to stay and tell attorney Stern about his
conversation with Mr. Giblin.
107. Mr. Stern arrived on or about the morning of J une 11, 2009 with one of
his law partners, attorney Lewis Levy. Mr. Fox told Mssrs. Stern and Levy about

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his previous phone conversation with Mr. Giblin and Mssrs. McLaughlin,
Himmelberg, and Pette reminded attorneys Stern and Levy about the Lundy matter
and Mr. Giblin's retaliatory acts. Mr. McLaughlin then asked Mr. Stern to call the
IUOE and speak to the general counsel to the IUOE, Attorney Griffin, to "get the
IUOE off my back." Mr. Stern told everyone present that the IUOE had no basis to
place Local 501 into trusteeship and specifically called Mr. Giblin's actions
"bullshit." Mr. Levy then told Mr. McLaughlin that Mr. Stern was "too emotional"
and that he would speak to Attorney Griffin. But Levy, Stern & Ford did not
disclose the substantial and unwaivable conflict of interest they faced when asked
by Mr. McLaughlin to call the IUOE and speak to Attorney Griffin to get the IUOE
off his back:
(a) The firm of Levy, Stern & Ford has represented Local 501 for
almost 15 years. Between 2007 through J une 2009, Mr.
McLaughlin and others kept Levy, Stern & Ford and Adam
Stern updated on Mr. Giblins actions against Mssrs.
McLaughlin, Himmelberg, and Pette.
(b) Sandra Acosta, a Business Agent and employee of Local 501,
filed a sexual harassment lawsuit ("Acosta Action") against
Local 501 and Mssrs. McLaughlin and Pette in early 2009. The
Acosta Action was active in J une 2009 and Levy, Stern & Ford,
specifically, Adam Stern and Lewis Levy, represented Local 501
in the Acosta Action and represented Mssrs. McLaughlin and
Pette, as individuals, in the lawsuit. (Levy, Stern & Ford did
obtain conflict waivers from Mssrs. McLaughlin and Pette in
order to represent them in the Acosta Action.)
(c) Levy, Stern & Ford also personally represented Mr. McLaughlin
in a separate matter. Mr. Levy individually and Levy, Stern &
Ford, represented Mr. McLaughlin in a workers compensation

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matter related to an injury Mr. McLaughlin suffered while
working at Local 501.
(d) In or around late 2009, plaintiffs counsel in the Acosta Action
served a deposition subpoena on Mr. Giblin. Mr. Giblin told Mr.
Levy that he didn't want his deposition taken and to make the
Acosta thing go away. Mr. Giblin also learned that Sandra
Acosta had audio-taped a conversation she had had with Giblin,
when Giblin called her. Shortly thereafter, Mr. Levy negotiated
a settlement with Ms. Acosta and the case was dismissed, with a
settlement paid by local 501 believed to be in excess of
$239,000. The settlement included Acostas ability to return to
the staff of Local 501 in a manner comparable to the proposed
Blair Brim settlement agreed to in March 2013. At all times
relevant, information on the settlement was withheld from the
membership of local 501. Although the local 501 insurance
carrier paid this settlement, the settlement resulted in a change
of status for purposes of insurance ratings, and costs associated
with insurance coverage. The initial ramification of this
settlement was an increase in the deductible associated with the
coverage. Later, this settlement played a role in local 501 being
dropped by the carrier forcing local 501 to seek new, higher
cost, insurance due to the loss rating. Levy, Stern & Ford
refused to release this information to the local 501 membership.
Information about the amount of the settlement appears on the
2010 LM-2 filing by Local 501 with the U.S. Department of
Labor:

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SCHEDULE14OTHERRECEIPTS2010IUOE501LM2 FILENUMBER:012442

Name and Address
(A)
Purpose
(C)
Date
(D)
Amount
(E)
Total Itemized Transactions $230,450
ZURICH INSURANCE
66944

CHICAGO
IL
60666
Total Non-Itemized Transactions $0
Type or Classification
(B)
Total of All Transactions $230,450
INSURANCE PROVIDER LAWSUIT SETTLEMENT 02/18/2010 $230,450

(e) At all times relevant, the International and Vince Giblin had no
vested financial interest in the outcome of the Acosta litigation.
The membership of local 501 were the only parties of interest
and they were deprived of actual knowledge to prevent future
losses to local 501 by the International, Vincent Giblin and
Levy, Stern & Ford, working in concert each with the other.
(f) By virtue of the representation provided above Levy, Stern &
Ford received substantial financial benefits from both Local 501
and the International IUOE. Mr. McLaughlin and Local 501
paid Levy, Stern & Ford a monthly retainer of$12,500.00 per
month to represent Local 501. Additionally, Attorney Griffin of
the IUOE and William Waggoner, First Vice-President of the
IUOE and Business Manager of IUOE Local 12 in Pasadena,
California retained the service of Levy, Stern & Ford. Despite
the conflict faced by Levy, Stern & Ford, the firm did not
disclose the substantial and unwaivable conflict of interest when
Attorney Levy agreed to call the IUOE and speak to Attorney
Griffin to get the IUOE off Mr. McLaughlins back.

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108. Mssrs. Levy and Stern left Mr. McLaughlin's office and went to a
private room in the offices of Local 501 to call Attorney Griffin. Mssrs. Levy and
Stern returned and Mr. Levy stated to everyone that Attorney Griffin said Mr.
Giblin was demanding Mr. McLaughlin resign. Attorney Stern insisted that they
fight Mr. Giblin and the IUOE. Mssrs. McLaughlin, Himmelberg, Pette, and Fox
agreed with Attorney Stern.
109. However, Attorney Levy told Mr. McLaughlin that he must negotiate a
resignation with the IUOE because Attorney Griffin told him Mr. Giblin was
threatening to either separate Las Vegas from the Local or place Local 501 under
trusteeship. Attorney Levy told Mr. McLaughlin that Mr. Giblin was prepared to
take action immediately.
110. Mr. McLaughlin told Attorney Levy he didn't want to resign as
Business Manager of Local 501 but he also did not want Local 501 to be broken
apart or placed under trusteeship. Attorney Levy told him his only option was to
resign. At this point, Mr. Pette left the meeting to attend another meeting where he
was leading the negotiations on a new union contract for Local 501 members.
111. After Mr. Pette left, Mr. McLaughlin asked Attorney Stern and
Attorney Levy for their advice. Mr. Levy told Mr. McLaughlin that he had to
negotiate with Attorney Griffin that he should propose his own terms. Mr.
McLaughlin told Attorney Levy that he would agree to resign; however, he wanted
his pensions from his position as Business Manager as well as 2nd Vice-President
of the IUOE. Additionally, Mr. McLaughlin wanted his medical benefits. Attorney
Levy agreed to pass that on to Attorney Griffin. Mssrs. Levy and Stern left the
room to call Attorney Griffin.
112. Mssrs. Levy and Stern returned to Mr. McLaughlin's office about 20
minutes later. Attorney Levy stated that as part of the deal to "leave Local 501
alone," Mr. McLaughlin not only had to resign, but before he resigned, Mr.
McLaughlin also had to fire Finn Pette as Business Representative. Mr. Pette was

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the originator of various audits into employer contribution shortfalls concerning
both the J AC Fund, and the local 501 Health & Welfare Fund. Mr. Pette was also
investigating massive double-breasting issues involving defendants Able and ABM.
113. Mr. McLaughlin told Attorney Levy that Mr. Pette was "not part of the
deal." Mr. McLaughlin had been grooming Mr. Pette to potentially succeed him as
Business Manager when Mr. McLaughlin retired. Mr. McLaughlin was a mentor to
Mr. Pette and assigned Mr. Pette to high profile negotiations. Mr. McLaughlin
took Mr. Pette to IUOE working meetings throughout the country. Upon being
forced to resign, it was Mr. McLaughlin's goal to have Mr. Pette succeed him as
Business Manager and to keep Mr. Himmelberg as Assistant Business Manager to
assist Mr. Pette in performing his job duties.
114. Mr. McLaughlin told Attorney Levy that he would not fire Mr. Pette.
Mssrs. Levy and Stern left the room to call Attorney Griffin. In the meantime, Mr.
McLaughlin tried to call Mr. Pette but did not reach him.
115. Mssrs. Levy and Stern returned to Mr. McLaughlin's office a few
moments later. Attorney Levy told Mr. McLaughlin that if Mr. McLaughlin didn't
agree to fire Mr. Pette, or get Mr. Pette to resign, that "Dan is next." Mssrs. Fox,
McLaughlin, and Himmelberg understood this to mean that Attorney Griffin and
the IUOE would demand that Mr. Himmelberg's employment be terminated if Mr.
McLaughlin didn't fire Mr. Pette.
116. Attorney Levy asked Mr. McLaughlin why Mr. Giblin wanted Mr.
Pette removed as Business Representative. Mr. McLaughlin reminded Attorney
Levy and Attorney Stern that Mr. Giblin had a vendetta against Mr. Pette and Mr.
Himmelberg because they were both involved in the investigation of Dennis Lundy,
who was under Giblin's protection, and audits of the various Local 501 Funds. Mr.
McLaughlin asked attorneys Stern and Levy if the IUOE's acts were a violation of
Taft-Hartly or the LMRDA. Attorney Levy merely responded that Mr. McLaughlin
"shouldn't pick a fight with [Mr.] Giblin or the International."

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117. Mr. McLaughlin told Mr. Levy that he couldn't risk Mr. Himmelberg's
job because Mr. Himmelberg had Parkinson's disease and Mr. Himmelberg
wouldn't be able to get a job as an engineer. Mr. McLaughlin told Attorney Levy
that Mr. Giblin knew Mr. Himmelberg had Parkinson's disease because Mr.
McLaughlin told Attorney Giblin at an IUOE meeting when Attorney Griffin asked
why Mr. Himmelberg's hand was shaking. Attorney Levy then suggested Mr.
McLaughlin make a counterproposal. Mr. McLaughlin decided to propose that Mr.
Pette would resign in late spring of 2010. Mr. McLaughlin proposed this date
because this would give Mr. Pette time to finish some major negotiations which
would be publicized. Mr. Pette could then use this positive publicity to increase his
chances of winning the Business Manager position in the elections the following
year.
118. Although Mr. Pette was not present, Mr. McLaughlin told Attorney
Levy that he would agree to convince Mr. Pette to resign in the late spring of 2010.
Attorney Levy told Mr. McLaughlin that this appeared "fair" and he would speak to
Attorney Griffin. Mssrs. Levy and Stern left the room and returned shortly. Upon
returning to the room, Attorney Levy told Mr. McLaughlin that Mr. Giblin was
demanding that if Mr. Pette was going to resign, he had to resign by October 31,
2009. Mr. Levy told Mr. McLaughlin that he had to make a decision at that moment
and to not bother with a counter-offer because Attorney Griffin told him that Mr.
McLaughlin had to "take it or leave it" and if Mr. McLaughlin didn't "take it,"
Attorney Griffin would next demand Mr. Himmelberg's resignation or termination.
119. Mr. Levy told Mr. McLaughlin that this was a "good deal," and that
Mr. McLaughlin should accept Attorney Griffin's demand. Mr. McLaughlin relied
on the advice and counsel of Mr. Levy and agreed to the term. Mr. Levy then
notified Attorney Griffin that the term requiring Mr. Pette's resignation by October
31, 2009 was "accepted." Mr. Levy left to call Attorney Griffin and then returned
about 30 minutes later. Mr. Levy told Mr. McLaughlin that he had to propose a

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person to replace him as Business Manager. Mr. Levy told Mr. McLaughlin that
Mr. McLaughlin couldn't propose "that guy with the hat [Mr. Pette] or
Himmelberg, or that broad [Sandra Acosta]." Mr. McLaughlin told Mr. Levy that
he wanted to Mr. Pette to take over as Business Manager. Mr. Levy responded that
it was not a good idea to propose Mr. Pette's name. Mr. McLaughlin then proposed
Ronald Frease. Mr. Levy left to call Attorney Griffin and returned a few moments
later and said that Mr. Frease was "unacceptable" to the IUOE. Mr. McLaughlin
then proposed Edward Curly. Attorney Griffin told Mr. Levy that Mr. Curly was
also "unacceptable" to the IUOE. Finally, the IUOE agreed to allow Chris Brown to
replace Mr. McLaughlin as Business Manager of Local 501.
120. Mr. Pette returned to the Local 501 office about 3 hours later. Upon
Mr. Pette's return, Mr. Levy and Mr. McLaughlin told Mr. Pette that he would have
to resign his position as Business Representative and Financial Secretary. Mr.
McLaughlin told Mr. Pette that did not want to fire Mr. Pette nor did he want Mr.
Pette to resign. Mr. McLaughlin told Mr. Pette that he didn't have a choice because
Mr. Levy told him that he didn't have a choice. Mr. Pette asked if he had say in the
decision. Mr. Levy then told Mr. Pette "What they said was, we better accept these
terms because they could have taken Himmelberg out too."
121. Mr. Pette asked Mr. Levy "What does that mean?" Mr. Levy replied,
"Either you're fired, or everyone is fired. Take it or leave it." Mr. Pette asked Mr.
Levy "Do you want me to sign something?" Mr. Levy replied "That won't be
necessary." Mr. Pette immediately told Mr. Levy, "Like hell it won't! I want this in
writing!" Mr. Levy told Mr. Pette, "Okay, Finn, I'll take care of it."
122. Mr. Pette then asked "so I have to resign when J im does?" To which
Mr. Levy responded "I got you a reprieve until October 31st." The meeting then
ended and Mr. Levy prepared a letter with the terms of the J une 11, 2009
negotiations and distributed it to Mssrs. Griffin, McLaughlin, Himmelberg, and

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Pette. Attorney Levys contemporaneous notes of the meeting are attached hereto
as Exhibit 4.
123. Notwithstanding the above "agreement" "negotiated" between IUOE
General Counsel Griffin and attorneys Stern and Levy, the IUOE did not live up to
its end of the bargain. From this point forward, Local 501 was fully at the mercy of
IUOE, Giblin and Griffin. Local 501's new Business Manager Christopher Brown
received instruction from J ames Van Dyke, Chief of Staff for General President
Vincent Giblin, who instructed Mr. Brown to fire Mr. Pette two weeks earlier than
October 31, 2009.
124. Although Levy documented the "agreement" that was "negotiated"
with IUOE, Levy later prepared a falsified version of his correspondence in
subsequent litigation and provided the falsified version to the Court in an attempt to
conceal the conspiracy to oust Mr. Pette and undermine his insurgent candidacy
potential. That falsified letter omitted the "cc" notation indicating that it had been
sent to Mr. McLaughlin and omitted key provisions of the "agreement," such as it
was. A copy of the original confirmatory letter is attached hereto as Exhibit 5. The
falsified letter later prepared by Levy to conceal his conspiracy with Attorney
Griffin to force out Mr. Pette is attached hereto as Exhibit 6.
125. In August of 2009, while IUOE Chief of Staff, J im Van Dyke, was
performing an internal audit of Local 501, two DOL agents showed up at the Los
Angeles offices of Local 501. Mr. Van Dyke ushered them into a private meeting
and they were sequestered there for over an hour. When they left, Mr. Pette
approached the agents and asked who they were. Mr. Pette was introduced to
Michael Blas and a fellow investigator from the DOL Office of the Inspector
General. Mr. Pette asked what they were doing there and they said they had
received a call from a "member" that something was going on at Local 501.
Mr.Pette confirmed that there most certainly was something going on, and Mr. Blas
asked Mr. Pette to contact him at his office in West Covina.

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126. Several days passed until Mr. Pette could schedule an appointment to
meet with Mr. Blas at his office. When he arrived, he was escorted to an
interrogation room where Mr. Blas and his fellow agent asked him what was
happening at Local 501. Mr. Pette was very upset, having not obtained any help
from the offices at EBSA, and so he raised his voice and started yelling at them for
not doing their job. At that time Mr. Blas pulled his gun and smashed it on the table
and said, "Well you're not dealing with ESBA anymore! We're the guys who carry
the guns and get things done!"
127. Mr. Pette proceeded to tell him of the investigation into the
misappropriated funds at the Apprenticeship, and how General President Vincent
Giblin had intimidated and halted a legal and necessary investigation of abuses of a
Taft-Hartley Fund. Mr. Pette also described how he had caused the termination of
elected officials (J im McLaughlin and Mr. Pette) and that this appeared to be a
clear example of labor racketeering.
128. Mr. Blas asked Mr. Pette to return with copies of the internal records
from the J AC and to spend some time telling him the entire story of what had
transpired at Local 501. They scheduled an appointment approximately a week
later.
129. When Mr. Pette returned with all the J AC documentation, it was given
to Agent Blas. Mr. Pette proceeded to tell him that Vincent Giblin had ordered the
halt of the internal investigation, that he had threatened J im McLaughlin, and that
he had disrupted the order of the membership. Mr. Giblin had ordered terminations
and retaliated for the investigation into Dennis Lundy. This meeting lasted from
approximately 9 a.m. until well after 3 p.m. At the end Agent Blas asked, "Do you
think the IUOE runs like the mafia?" Mr. Pette replied, "Do you guys even talk to
the folks that run your east coast offices? Not only do we run like the mafia, we're
controlled by it!"

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130. Agent Blas said he would keep in touch with Mr. Pette via e-mail as
the situation progressed. He also asked Mr. Pette to inform him of various issues as
time went on via e-mail, which Mr. Pette did. Various emails between Mr. Pette
and Mr. Blas are attached hereto as Exhibit 23.
131. Approximately one month later, Agent Blas asked Mr. Pette to meet
him again at his West Covina office. He had looked through the J AC files and
come across the "forged checks" that Dennis Lundy had filled out in J im
McLaughlin's name. He said that if they had the originals (they currently held
copies) they could send them to the FBI for handwriting analysis. Agent Blas
continually hinted around the fact that if they had the original checks they could do
something with the case. Mr. Petter finally asked Agent Blas, Do you want the
fucking checks? Agent Blas indicated to Mr. Petter that he did. On that basis, Mr.
Petter obtained the original checks for Agent Blas.
132. A few days later, Mr. Pette arrived for another appointment with Mr.
Blas. When Mr. Pette showed him the checks he immediately left the room and
returned wearing rubber gloves and carrying an "evidence" bag. He confiscated the
checks and placed them in the clear "evidence" bag and sealed it. Mr. Pette told
him he would need them back, and Mr. Blas replied, "They are in evidence of the
DOL now." He told Mr. Pette that he would return them prior to Mr. Pettes
scheduled termination date of October 31.
133. Eventually Mr. Pette received a letter from the Washington D.C. DOL
Office of the Inspector General saying that they were no longer investigating the
case. A true and correct copy of that letter is attached as Exhibit 24. Agent Blas
quit returning Mr. Pettes e-mails. Several requests were made to have the forged
checks returned, but to date they remain in possession of the Department of Labor,
to the best of Plaintiffs knowledge.
134. Much later, when Mr. Pette was cooperating with the 14 month long
investigation by the Department of Labor, Office of Labor Management Standards,

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into the election misconduct at Local 501, Mr. Pette spoke with Agent Ed Oquendo
about the issues he had with the DOL-ESBA. Mr. Oquendo told Mr. Pette that his
supervisor has worked at the Pasadena office for years and Mr. Pette should talk to
him.
135. District Director Alan Weiss gave Mr. Pette the number of the "head"
of the Pasadena office of ESBA. He placed a call to this individual. She told Mr.
Pette that the case against Dennis Lundy was closed. Mr. Pette asked her under
what condition it was "closed" and she got very hostile. Mr. Pette said, "If the case
is closed, it should be a matter of public record. Can I set a time to come by the
office and look over the file?" At this point the woman actually started to yell at
Mr. Pette, screaming, "IF YOU WANT ANY FURTHER INFORMATION ON
THE DENNIS LUNDY MATTER YOU CAN FILE A FREEDOM OF
INFORMATION ACT REQUEST TO OUR D.C. OFFICE!" She hung up the
phone.
136. Mr. Pette was concerned at this juncture that someone within the DOL
very high up, perhaps even Hilda Solis herself, was derailing the investigations into
all issues surrounding the Operating Engineers. It is well known within the
Operating Engineers that Hilda Solis' election campaign was heavily funded by the
Operating Engineers, and Mr. Pette learned that she was flown to Washington D.C.
for her swearing in on Local 12's Private J et. William Waggoner, the Business
Manager of Local 12, bragged to J im McLaughlin that he was flying Hilda Solis
back to DC to be sworn in. Mr. Pette was so concerned that he actually e-mailed
Alan Weiss and asked him what her involvement would be with the election case.
137. The harm to Local 501s members resulting from the inaction or
lethargic action of DOL is substantial. For example:
(a) IUOE placed Brown in control of Local 501 without complying
with IUOEs constitution or Title IV of the LMRDA. DOL

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failed to take action against this unlawful usurpation of union
autonomy and election procedure;
(b) Brown was instructed by IUOE to terminate Blair Brim;
(c) Brown was subsequently prevented by IUOE from defending the
suit brought by Brim when Brown, acting outside the scope of
his fiduciary duties to Local 501, terminated Brim;
(d) When Mr. Pette attempted to provide information and evidence
to use in defense of Brims suit, he was told that it would not
utilized by Local 501;
(e) Brim obtained a judgment in excess of $6 million dollars against
Local 501 as a direct result of IUOEs illegal racketeering and
DOLs failure to intercede in the ongoing abuse of Local 501 by
IUOE;
(f) In 2011, Brim offered to compromise his judgment in the
amount of approximately $1.5-1.7 million (depending upon
whether certain benefits were included), but Brown was
instructed by IUOE to reject that offer. Again, had DOL
intervened in the illegal activities occurring at Local 501,
democratically elected leadership could have resolved Mr.
Brims judgment without ever having to file for bankruptcy
protection;
(g) Brims attorney, Lee Feldman, was contacted by IOUE, through
Callahan and Van Dyke. Callahan and Van Dyke threatened to
place Local 501 in bankruptcy if Brim did not accept pennies on
the dollar for his judgment;
(h) In anticipation for the bankruptcy filing, IUOE caused Local 501
to withhold a small amount of per capita payments from IUOE

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so that IUOE would be an unpaid creditor with additional rights
and powers over Local 501 in the bankruptcy;
(i) Local 501 filed for bankruptcy protection at IUOEs instruction;
(j) IUOE then placed Curly in charge of Local 501 in part because
Brown admitted during discovery in Brims suit that he was
following orders from IUOE, and Brown failed to get amnesia
as instructed by Callahan. IUOE appointed Curly without
complying with IUOEs constitution or Title IV of the LMRDA,
but DOL did nothing to correct this unlawful conduct, despite
being fully apprised of it on an ongoing basis;
(k) In November 2012, Local 501 refused to hold elections for
delegates to the General Convention of the International Union
of Operating Engineers. IUOE used the per capita
underpayment as a pretext for denying Local 501 members their
constitutional right to participate in the General Convention.
Had DOL intervened, it could have prevented this violation of
Title I rights held by members of Local 501;
(l) At the end of 2012, Brim filed suit against IUOE in Los Angeles
Superior Court, seeking a declaration that IUOE was the alter
ego of Local 501 as a result of its systemic control imposed on
Local 501;
(m) In early 2013, Brim offered to settle his claim for $2.5 million,
or almost $1 million more than had been rejected in 2011. Curly
was instructed by IUOE to advise the Board that Brims offer
had to be rejected because IUOE was not released from Brims
suit against IUOE;
(n) In March 2013, Brim demanded an addition $500,000 in total
settlement compensation to include IUOE as a released party.

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Curly, on orders from IUOE, instructed the board to accept that
higher settlement demand, though several board members
objected to the increased cost of the settlement to Local 501 to
provide IUOE with a release.
(o) In March 2013, the unlawfully appointed leadership of Local
501 advised retiree members of Local 501 that they would no
longer receive health care benefits unless they paid the entire
cost themselves, at an increased cost of roughly $1,000 per
month, varying by marital status. Members of 35 years, who
rely on this benefit, may no longer have the means to pay for it
as a result of the catastrophic failures by IUOEs appointed
figureheads running Local 501;
(p) DOLs inaction allowed the environment of corruption to
persist, which manifested itself in, among other ways, the
millions of dollars of increased costs imposed on Local 501 as a
result of an unnecessary bankruptcy filing, more than a half
million in attorneys fees to counsel in connection with the
bankruptcy, and $1.5 million in additional settlement costs.
(q) This pattern of inaction in the face of documented illegal
activity, including racketeering activity, over a period of years
rendered futile any efforts by Local 501 members to exhaust
administrative remedies through the Department of Labor or
Local 501 or IUOE. Any exhaustion obligations should be
excused in the face of this complete failure by the DOL to
discharge its mandate.
138. On or about October 17, 2009, Mr. Brown fired Mr. Pette as Business
Representative as well as from the positions of Trustee on both the Apprenticeship
and Health and Welfare funds.

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139. Contrary to the IUOE Constitution, Article 24, Subdivision 7, Section
E, Mr. Pette was charged by the IUOE with allegations that would have mandated
his removal from the office of Financial Secretary. Mr. Pette served his entire term
as Financial Secretary of Local 501. If, in fact, General President Giblin and Ethics
Officer Zazzali believed the charges filed against Mr. Pette had merit, Ethics
Officer Zazzali had a duty to recommend the removal of Mr. Pette to Mr. Giblin,
and Mr. Giblin, as General President, had the authority and fiduciary obligation to
remove Mr. Pette from elected office, and thereby protect the membership of local
501. Neither believed that the charges were legitimate.
140. Further, in an additional breach of the "agreement," in and around
November 2009, Mr. Van Dyke ordered Mr. Brown to fire Mr. Himmelberg as
Assistant Business Manager, even though Mr. Brown told Mr. Van Dyke that he
needed Mr. Himmelberg's experience and knowledge and wanted to keep him as
Assistant Business Manager. Mr. Van Dyke told Mr. Brown that Mr. Giblin was
ordering Mr. Brown to fire Mr. Himmelberg. Reluctantly, Mr. Brown obeyed Mr.
Giblin and terminated Mr. Himmelberg's employment.

2. Lundy Helped Operate a Sham BOMA and EPA 608
Certification Testing System
141. The Building Owner Managers Association (BOMA) created a
certification intended to ensure that stationary engineers certified by BOMA were
properly educated about certain safe operating. This certification gave building
owners the assurance that their engineers were capable of safely operating in their
buildings. In return, certified engineers received $5 per hour more in pay. This
increase in pay also created a benefit for the locals, which were compensated by
employers based on hourly pay rates in effect for their members.
142. Local 501 was designated as the central testing center for BOMA and
EPA 608 certification. Locals around the United States were to send their test fee

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to Local 501, where it would be graded and returned, including Locals 30, 68, 94,
and 399. Unfortunately, under Lundy, the system was corrupted.
143. Cynthia Escanuelas would often take tests sheets and grade them
herself at the request of Dennis Lundy because the applicant was a friend of his or
of some particular Chief Engineer for ABLE or ABM. When tests were walked
through in this manner, those certification applicants always passed.
144. The test questions and answers were made available to many members
at other local unions. Members at other local unions paid $50 for their test grading,
and Local 501 received 100 or more tests from other locals each month, but there is
no record of any test payment being deposited in the Apprenticeship Fund at Local
501. It appears that Lundy embezzled all of the test payments from other locals,
depositing only the payments from Local 501 members.
145. The propagation of sham certifications affects both public and private
employers, since governmental entities also hire union stationary engineers to
operate and maintain government buildings.
146. When Himmelberg and others audited the J AC for 2007 and 2006,
they were unable to locate any checks from any of the Locals paying for test
grading and certification issuance.
147. The new J AC Director following Lundy, and other Local 501 members
that investigated, were never able to locate a single check deposited in an account
or a single certification application following Lundys departure.
148. When Lundy left, the entire program stopped because Locals no longer
submitted tests for grading or requested certifications. Lundy may have embezzled
$60,000 or more while he operated the BOMA and EPA-608 certification program
involving the other IUOE locals scattered across the country. All of those
individuals who received certifications through the Lundy certification operation at
the J AC today carry certification cards noting they received their certifications

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from Local 501. They now work as certified engineers, at least in the states of New
J ersey, New York, and Illinois.
149. Enrique Acala was an instructor at J AC. Mr. Acala sold the entire
BOMA test question set through a website. Mr. Pette filed a grievance about this
issue. Ed Curly, the Business Manager at the time, found no merit to the grievance
in order to stifle the claim. The refusal to control this practice jeopardizes J AC. It
also jeopardizes the public in general in that it means that employees in positions
requiring these safety certifications may not be qualified for those positions.
Attached as Exhibit 25 is a true and correct copy of Mr. Alcalas website, where
he offered test questions for sale. Mr. Alcalas website could only be accessed via
wire communication, and the method for contacting Mr. Alcala to purchase test
questions was limited to e-mail, also requiring a wire communication. Attached as
Exhibit 26 are true and correct copies of correspondence and memos expressing
concern about Mr. Alcalas practices (wherein he is erroneously referred to as
Rick Ocala), including correspondence involving Cornel Sneekes and Eric
Sorensen, who were aware of these allegations but did nothing to ascertain the
scope of the problem other than recommend temporary suspension of testing. As
members of the J AC Board, Cornel Sneekes and Eric Sorensen had a fiduciary
obligation to determine the extent of past testing fraud and correct it.
150. From a financial standpoint, each certified engineer receives $5.00
additional per hour for each hour worked dating to the date of their certification. If
the certification is fraudulent, then each week the fraud is renewed by the $200
additional wages the falsely certified worker receives. In essence, there may be
thousands of IUOE members with fraudulently obtained certifications working in
positions in at least the states of New J ersey, New York and Illinois.
151. The potential damages to the Local 501 J AC program by virtue of
Lundy's actions far exceed the $5.00 per hour additional compensation received by
the certified stationary engineers. IUOE Local 501 Apprenticeship and Training

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Programs could lose their certification from the DOL, State & Federal, for
fraudulent practices. All apprenticeship and training programs that qualify for
certification from the DOL are then tax exempt and the contributing employers get
the benefit of the tax exemption. This is a very important benefit to all contributing
employers.
152. The 501 apprenticeship program might have to be dismantled and
obtaining recertification from the DOL State and Federal would take years, if it
were ever possible. The membership of IUOE Local 501 will no longer be
recognized by owners and employers as a source of well-trained apprentices and
journeymen. The legitimate employers and owners will seek help outside of the
Union. Any certified journeyman who passed the BOMA Test will be suspect as to
how he/she got qualified and the employers could legitimately demand that the
$5.00 per hour increase be returned, retroactively. The misconduct in the testing
program harms the reputations of all IUOE members and will expose them to
financial risk arising from doubts related to the integrity of the BOMA Test.

3. Lundy Absconded with Re-Election Campaign Funds
153. In addition to embezzling from the J AC, Lundy left 501 with more
than $10,000 in campaign re-election funds. Those funds were collected from
Local 501 members who had voluntarily donated money to the fund for use by the
current elected officers when running for re-election. Retired Business Manager
Bob Fox called upon Lundy to correct his misconduct and remember the Local that
provided for him for so many years. His entreaties fell on deaf ears. A true and
correct copy of Mr. Foxs September 19, 2008 correspondence is attached as
Exhibit 29.

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4. Plaintiffs Discovered Evidence That ABM and Able
Conspired with the I UOE to Divert or Withhold Millions of
Dollars from Numerous Member Benefits Funds
154. Able, a signatory to contracts with IUOE local unions, controls
roughly 25% of all stationary engineering positions in the state of California.
155. ABM, a signatory to contracts with IUOE local unions, control roughly
70% of all stationary engineering positions in the state of California.
156. When Mr. Pette became the Financial Secretary of Local 501 in J une
2007, he was asked by Mr. McLaughlin to investigate Lundys possible
embezzlement of funds from the Apprenticeship Fund. In addition to discovering
that Lundy had, in fact, embezzled tens of thousands of dollars by submitting
personal expenses, such as lunches with his mistress, for reimbursement, Mr. Pette
also observed that contributions to the Apprenticeship Fund seemed insufficient
and requested an audit. After an audit, it was determined that, in 2009, ABM had
shorted the Apprenticeship Fund approximately $180,000 and Able had shorted the
Apprenticeship Fund approximately $280,000. The shortfall should have been easy
to detect and correct, were it not for the invidious usurpation of control of Local
501 by Defendants.
157. Under the BOMA contracts that were in effect for the 5-year period
spanning 2007-2011, the Apprenticeship Fund received $179 per member per year
from a signatory employer employing a member. Because membership numbers
are relatively stable, the contributions to the Apprenticeship Fund should also be
stable. However, an examination of IRS form 990 shows that this was not the case.
Year Employer Contributions
2004 $484,739.00
2005 $438,760.00
2006 $613,517.00

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2007 $719,827.00
2008 $590,124.00
2009 $1,079,473.00
2010 $1,273,390.00

The 2009 and 2010 figures represent the payments after Able and ABM were
forced to address the shortfalls in their contributions.
158. Paul Bensi of Able, and J im Scranton and Cornell Sneekes of ABM sat
as Employers Trustees of the Apprenticeship Fund, including in 2009. In that
capacity, they helped conceal for years the underpayments by Able and ABM to the
Apprenticeship Fund. They also used their influence to prevent audits of years
prior to 2009.
159. Able and ABM were also shorting their contributions to the Health &
Welfare Fund at Local 501, established to purchase benefits, like healthcare plans,
for members. The shorting scheme was fairly simple. Members were required to
work a specific number of hours to be eligible for benefits through the Health &
Welfare Fund. Once an employer reported that an employee worked the necessary
number of hours, the employer was obligated to contribute money for each hour
worked by the employee. After a certain number of hours were worked the
employee-member would have fully funded that years benefits.
160. For fulltime employees, Able and ABM reported the number of hours
needed to entitle the employee-member to full benefits, but then Able and ABM
stopped reporting all hours worked to eliminate their obligation to keep
contributing to the Health & Welfare Fund beyond the minimum necessary to fund
benefits. While this would facially seem to cause no harm to Local 501 members,
it was, in fact, highly prejudicial to the interests of members. When a member
received additional Health & Welfare Fund contributions beyond the minimum
necessary, those additional contributions would have, had they been paid, provided

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for payment of benefits in future years, including upon retirement. By
underfunding the Health & Welfare Fund, Able and ABM deprived Local 501
members of this supplemental benefit cushion, causing great financial harm to
them. It is believed that Able and ABM may have jointly underfunded the Health
& Welfare Fund by millions of dollars over the Class period.
161. Paul Bensi, J im Scranton and Cornel Sneekes used their influence on
the Health & Welfare Fund to ensure that the results of a promised audit of
contributions of Able and ABM to the Health & Welfare Fund were never
completed or presented.
162. The underreporting of hours resulted in a staggering cascade of other
harm to Local 501 and its members. First, the underreporting of hours deprived
Local 501 of much needed administrative operating contributions that would have
been much higher had the correct number of hours been reported. This harmed
Local 501s ability to operate. Second, Able and ABM were underfunding their
contributions to the General Pension Fund, which contributions also depend on the
number of hours worked.
163. Despite this patent disregard of contractual obligations intended to
benefit Local 501 members (and other locals members around the country), Able
and ABM were richly rewarded by other Defendants, including, but certainly not
limited to, Vince Giblin. In return, Able and ABM richly rewarded the other
Defendants. For one example, Dennis Giblin, son of Vince Giblin, was employed
by International Union of Operating Engineers, Local 68. Dennis Giblin served as
the Administrator of the Local 68 Education fund, a fund governed by ERISA. As
Administrator to the Education Fund, Dennis Giblin was a fiduciary and required
under ERISA to act solely in the interests of the participants of the Education Fund;
to avoid acting in his own personal self-interest; and to avoid acting on behalf of
any party whose interests were adverse to the interests of the fund. In or about
November 2004, Dennis Giblin, on behalf of the Education Fund, hired an audio-

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visual company to design and install electronic audio and visual systems at
Education Funds premises. For its services, Dennis Giblin caused the Education
Fund to pay the audio-visual company in excess of $315,000. Dennis Giblin also
received free and discounted audio-visual materials and components in August
2005. These items were installed in his J ersey City condominium by the audio-
visual company free of charge because of the work the company had received from
the Education Fund in the past. In total, Dennis Giblin received an improper
gratuity in excess of $10,000 in free and discounted items, and free labor. These
illegal gratuities resulted in criminal charges being brought against Dennis Giblin
in New J ersey (IUOE Local 68).
164. On one occasion, believed to be in and around May 2010, while Lundy
was working for IUOE in support of the Senate re-election campaign of Harry
Reid, he received a call from Vincent Giblin. Lundy used a speakerphone on the
call. Vincent Giblin advised Lundy that he had completed a deal with Able to
employ Dennis Giblin following Denniss criminal charges in Local 68. Vincent
Giblin also said that he made all audits in 501 go away. The audits referred not
only to the audits directed at Lundy, but the audits targeting Able and ABM as
well, and likely to uncover the extent of underpayments to J AC, the Health &
Welfare Fund, and the Central Pension Fund.
165. Under federal law, it is a crime for an employee of an ERISA-covered
fund to receive or solicit any fee, kickback, commission, gift, loan, money, or thing
of value because of any of the individuals actions, decisions, or other duties
relating to such fund. Dennis Giblin was arrested in J anuary 2009. In 2010,
Dennis Giblin pleaded guilty in Newark federal court to receiving kickbacks and
embezzling in connection with a business transaction during his tenure as head of
the West Caldwell, N.J .-based union's job training and education program. The
guilty plea was entered relatively quickly by Dennis Giblin to discourage deeper

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investigation into Local 68, which would have uncovered wider-ranging kickback
schemes with Able and ABM.
166. Due to his conviction, Giblin was ineligible to work for IUOE or Local
68 under the LMRDA. So Vince Giblin approached Paul Bensi at Able and sought
a kickback for Ables continued ability to operate double-breasted and underfund a
number of Trusts created for the benefit of rank and file union members, including
members of Local 501. Defendant Bensi created a high-paying position at Able for
Dennis Giblin, who was immediately hired by Able as consideration to Vince
Giblin. Dennis Giblin was then placed in charge of negotiating government
contracts at a salary believed to be commensurate with his former salary from
IUOE Local 68.
167. And Lauren Lundy, the daughter of Dennis Lundy, was given a job by
Bensi and Able in its Chicago, Illinois division, despite the fact that Dennis Lundy
left Local 501 after looting the Apprenticeship Fund.

5. ABM and Able Conspired with I UOE to Operate Double-
Breasted and Deprive Local 501 of Members and Revenues
168. Union contracts with ABM and Able require, at minimum, that any
building that is unionized through Local 501 must remain unionized in subsequent
labor contracts and new buildings added must be opened to Local 501 for
organization of the labor force in those new buildings. Among other things, ABM
and Able are obligated to provide the names and contact information for all
employees in non-unionized buildings added subsequent to the entry of the most
recent labor contract. ABM and Able, with the cooperation of IUOE following the
payment of kickbacks to IUOE leadership, did not comply with their labor
contracts.
169. Instead, ABM and Able blatantly operate double breasted. In labor
parlance, double breasted refers to the side-by-side operation of unionized and

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non-unionized workforces, though it is a term that is also, and more commonly,
used to describe a business owner creating a second company to circumvent a
collective bargaining agreement. For example, in a J anuary 28, 2011 email, Maira
Rodriquez circulated job opportunities at ABM and requested feedback on any
necessary changes. The job opportunities listed both union and non-union
stationary engineer positions:

Date: Position Available Details Job No.
12/30/2010 Union Journeyman
Engineer
Multiple Locations - Los
Angeles/ Orange County. M-F
days. Starting ASAP. Pay Rate
Union scale. Deadline until
filled.

16092923RWS
1/27/2011 Building Engineers
(Chief, Assistant Chief,
Utility Engineer, and
Building Engineer)

San Diego, Day shift, starting
ASAP, $18-$35/hr, Operations
and maintenance engineer
must be experienced [sic] in
HVAC boilers, chillers, and
energy management systems,
as well as electrical and
plumbing. Deadline until filled.

1677TE
1/14/2011 Journeyman Building
Engineer
600 W. 7th Street. Los
Angeles, Swing shift M-F,
starting ASAP, Data Center,
pay rate Union scale, strong
electrical background, deadline
until filled.

16043160RD
Engineer

Century Plaza Towers, Century
City, Mon-Fri swing shift,
Starting ASAP, Class A High
Rise, Union Scale, Experience
needed, Deadline until filled.

16054042RWS

And, in a December 30, 2010 email, Maira Rodriquez circulated job
opportunities at ABM and requested feedback on any necessary changes. The job
opportunities listed both union and non-union stationary engineer positions,
including the sample listed below:

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Date: Position Available Details Job No.
4/15/2010 Certified/ Non Certified
OMP
Newport! Irvine, M-F days,
starting ASAP, Class "A"
Complex, Union BOMA Contract
payscale, 5-8 years OMP
experience, deadline until filled.

1652CVB
6/10/2010 Union Cert One Person
Plant

West LA, M-F Days, Starting
ASAP, Union Scale, 5-8 years or
higher of OPP experience.
Deadline until filled.

1602CVB
11/23/2010 Central Plant Operator 900 Corporate Pointe, Culver
City, Days M-F, January 1st,
central plant campus, $38-$40/hr.
deadline until filled.

16042877RD
8/3/2010 NU Engineer - Bldg.
Engineer
Beverly Hills, day shift M-F,
starting date to be determined,
Mid- rise, $30-$35, Strong HVAC
and strong electrical, EPA cert in
refrigeration, deadline until filled.

1607KS
8/3/2010 NU Engineer - Bldg.
Engineer
Beverly Hills, day shift M-F,
starting date to be determined,
Mid- rise, $30-$35, Strong HVAC
and strong electrical, EPA cert in
refrigeration, deadline until filled.

1604RD
Engineer

Miracle Mile, Los Angeles, M-F
days (8-4), Starting ASAP, Class
A High Rise, Union Scale,
Experience needed. Deadline
until filled.

16042014RWS
Engineer

Century Plaza Towers, Century
City, Mon-Fri swing shift, Starting
ASAP, Class A High Rise, Union
Scale, Experience needed,
Deadline until filled

16054042RWS
3/24/2010 Non-Union Engineer
(Part-Time)

Los Angeles,Part Time, 2-3 days
per week, Starting ASAP, $35/hr,
Strong HVAC and strong
electrical, EPA Cert in
refrigeration, Deadline until filled.

16093080KS

N/U or NU are non-union job opportunities.
170. ABM also failed to disclose to Local 501 its contract to provide
stationary engineers to the entire California Courts system.

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171. Plaintiffs also investigated Ables activities and discovered evidence
of widespread double-breasted operations. In one such case, referred to as the
J amison contract, Plaintiffs found a thorough listing of properties owned by the
most notorious double-breasted building owner in Southern California, Dr. David
Lee (through J amison Services, Inc.). Dr. Lee contracts extensively or exclusively
with Able Engineering for staffing engineers in his buildings. By comparing the
complete listing of all Able Engineering properties under the Local 501 CBA with
that list of David Lee properties obtained from his company's website, Plaintiffs
were able to identify numerous buildings not disclosed to Local 501 for
organization. Well over 100 properties are missing from the Local 501 contract.

6. I UOE Conspired With ABM and Able to Allow Them to
Circumvent Their Contract With Local 501 and Use Retired
Employees to Avoid Benefit Fund Obligations
172. Stationary Engineers are sometimes difficult to temporarily replace
when they are unavailable for work for any reason. A policy was put in place to
allow retired employees to work up to 40 hours a month in temporary coverage
positions while still retaining their Central Pension Fund benefits. The purpose was
to allow retired employees to cover spot vacancies for permanent employee
members, when, for example, the permanent employee took a two week vacation or
needed to take sick leave. Able and ABM misused the provision, bringing in
retired employees for longer periods. Able and ABM then paid them by 1099 to
hide them from detection during simple audits. Normally, Able and ABM would
have been required to pay a portion of Health & Welfare benefits for those retired
employees and pay into the Central Pension Fund for these retired employees
working in excess of 40 hours a month in any given month. Able and ABM never
paid their share of the Health & Welfare benefits and never paid into the Central
Pension Fund for the time worked by those retired members.

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173. The use of 1099 payments hid this practice from Local 501. Mr. Pette,
Mr. Himmelberg and Mr. McLaughlin were removed by Mr. Giblin to prevent them
from detecting the full scope of this activity. This practice harmed Local 501
membership but benefitted Bensi, who received enhanced bonuses based on
lowered labor costs, and benefitted Able and ABM, which avoided payments they
should have made if they reported honestly.
174. Because they were also Health & Welfare Fund Trustees, Mr. Bensi,
for Able, and Mr. Scranton, for ABM, knew that Mr. Pette and Mr. Himmelberg
were initiating audits into Ables and ABMs practices causing underpayments to
J AC, Health & Welfare and the Central Pension Fund. Vincent Giblin, whose son
was employed by Able following his criminal ventures at Local 68, could not allow
anything to upset his relationship with Able. Vincent Giblin immediately began his
campaign to remove Mr. Pette, Mr. Himmelberg and Mr. McLaughlin from any
position of authority in Local 501.
175. The actions of Able and ABM were harmful to Local 501. An active
member, next on deck, who should have been employed, was denied work due to
the use of retired workers in the 1099 scheme. This harmed Local 501 and the
active member denied employment, as well as the various funds that did not receive
contributions for hours worked.

7. Decertification Election Tampering by Giblin and I UOE at
UCLA Cost Local 501 Roughly 600 Members and Was Used
as One Pretext for Terminating McLaughlin
176. Roughly 600 active members of Local 501 were employed at UCLA.
A decertification vote was scheduled to be held at UCLA. IUOE, through Giblin,
ordered Lundy to stuff ballots at a decertification vote at UCLA. As a result of
overzealous ballot stuffing, duplicate ballots were discovered by state officials
overseeing the election. Local 501 was given the option of facing charges or

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walking away and allowing decertification. Giblin ordered Local 501 to walk away
to avoid any investigation into his orders. Giblin told Chris Brown, "Dennis and I
stuffed the ballots and you can't even hold onto something when I hand it to you."
As a result of the decertification, Local 501 lost roughly 600 active members. The
decertification was later used as one pretext for demanding the resignation of
McLaughlin at Local 501 and terminating him from positions at IUOE.
177. In a lawsuit later brought against Levy, Attorney Griffin provided a
false declaration. In it, Attorney Griffin claimed that Levy would not have
succeeded if IUOEs monitorship declaration was challenged. A true and correct
copy of Attorney Griffins Declaration is attached hereto as Exhibit 7. Attorney
Griffin swore under oath that the decertification was a reason for removing
McLaughlin, but that was false. Attorney Griffin knew that Giblin had directed the
ballot stuffing effort in the UCLA decertification vote. And Attorney Griffin also
knew that the other pretextual reasons the false Foley employment allegations
offered for McLaughlins removal were unlikely to support the imposition of a
Trusteeship in Local 501.

8. I UOE and Curly, Acting Under I UOE Orders, Embezzled
Monies From Local 501 Members Related to the Members
Efforts to Protect Mr. Pette and Mr. Himmelberg
178. When false charges for allegedly improper expense account use were
levied at Mr. Pette and Mr. Himmelberg to scuttle their efforts to lead an insurgent
slate of candidates into office at Local 501, members supporting their efforts to root
out corruption collected monies and paid IUOE all of the money that Mr. Pette and
Mr. Himmelberg were falsely accused of taking. Giblin took the members money
and then declared that it would not resolve the issue because Mr. Pette and Mr.
Himmelberg didnt pay it themselves.

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179. After Mr. Pette and Mr. Himmelberg were cleared of the bogus
charges, the members expected that their payments would be returned to them.
J ack Pena, Erik Smith, Christopher Menor and J ay Brophy, among others,
contributed to the fund created to reimburse all monies used as the pretext for
creating fabricated charges against Mr. Pette and Mr. Himmelberg.
180. On November 20, 2012, Ed Curly, the Business Manager installed at
Local 501 after Chris Brown was removed by IUOE, refused to reimburse members
for the monies they contributed in their effort to respond to the fabricated charges
against Mr. Pette and Mr. Himmelberg. At that time, Mr. Curly admitted that he
was operating under the direction of IUOE and would not reimburse their
payments. However, Mr. Pettes payment that he made for the bogus fines were
refunded to him:

181. In addition to withholding thousands of dollars paid by Local 501
members on behalf of Mr. Pette and Mr. Himmelberg, IUOE has yet to issue the
promised letter to the members of Local 501, indicating that all charges against Mr.
Pette, Mr. Himmelberg and Mr. McLaughlin were either withdrawn or invalid.

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9. Able and ABM Management Employees Are I mproperly
Participating in the Central Pension Fund
182. At least 27 management employees of Able and ABM have been
identified as improperly participating in the Central Pension Fund (erroneously
labelled the general pension fund in the First Amended Complaint). Bob Fox
called the Central Pension Fund and spoke with Mike Fanning in an attempt to
identify the individuals improperly participating in that Fund. Mike Fanning said
that the information would not be provided to him, could only be provided at the
request of the local business manager, who has thus far, refused to make such a
request.
183. Eric Sorenson, a Vice President with ABM, is a member of the Central
Pension Fund, though he should not be a participant in that Fund. Mr. Sorenson
attended the December 2012 semi-annual meeting of Local 501. At that meeting,
he took pictures of all individuals wearing the Man in Black shirt that is a sign of
support for the resistance to IUOEs ongoing, unlawful dominion over Local 501.
184. Other participants include the following:

PAGAC, BRIANV 1,039.98 42,897.96 $6,239.88 $135,000.44 04/84 YES 06/12 22.00 $3,520.89
MCTAGUE, LOU 1,039.98 63,816.67 $6,239.88 $199,110.83 07/82 YES 06/12 26.00 $5,676.63
MIRZAYAN, GEORGE 1,039.98 20,320.30 $6,239.88 $63,272.38 10/89 YES 06/12 10.50 $1,445.37
PAXTON, WILLIAM 1,039.98 41,223.71 $6,239.88 $66,476.36 11/78 YES 06/12 20.00 $2,014.69
SITZMAN, KURT 1,039.98 62,723.39 $6,239.88 $196,262.29 03/83 YES 06/12 30.00 $5,636.54
SESTO, ROMEOM 1,039.98 46,176.83 $6,239.88 $157,320.25 01/88 YES 06/12 23.00 $4,355.20
TURKICH, JOHN 1,039.98 20,089.29 $6,239.88 $101,044.93 02/03 YES 06/12 9.70 $2,240.22
WONG, STEVEN 1,039.98 58,118.59 $6,239.88 $196,316.66 01/86 YES 06/12 27.00 $5,591.95
MANNING, BRUCEC 1,140.00 58,600.60 $6,840.00 $170,680.05 10/78 YES 06/12 27.10 $4,555.00
SNEEKES, CORNEL 0.00 21,447.17 $0.00 $55,102.74 08/82 YES 12/06 10.90 $1,814.08
SORENSEN, E 0.00 32,479.89 $0.00 $99,038.77 05/88 YES 02/10 16.00 $3,006.87
LUTES, ROBERT MICHAEL 0.00 36,719.42 $0.00 $117,964.82 01/91 YES 10/07 17.00 $3,933.11

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185. Ables ability to access the Central Pension fund and include Ables
non-union personnel in the IUOE Central Pension Fund could not be approved on a
local union level and had to be approved by the International General President, at
that time, Vincent Giblin. Able grew rapidly as a result of assistance from IUOE
that included permission to offer participation in the IUOE central pension fund
(restricted to IUOE members) to managerial employees of building owner/operators
as an enticement to leave ABM and hire Able to provide stationary engineering
services. IUOE encouraged Ables growth through these unlawful means so that
ABMs position in the industry would weaken and IUOE could play ABM and
Able off against each other.
186. J im Scranton is currently receiving distributions from the Central
Pension Fund.

D. I UOEs Leadership Used Threats of Physical and Economic
Violence, and Suborned Perjury, to Suppress I nvestigations and
Usurp Control Over Local 501
187. On or about March 10, 2010, Robert Fox received a call from Vince
Giblin, then General President of IUOE. Mr. Fox had been a friend to the family of
General President Giblin for more than 30 years dating back to Vincent Giblins
father. The tone of this conversation was threatening to Mr. Fox. Mr. Giblin did not
communicate in the respectful manner typical of their prior conversations. When
Mr. Fox advised Mr. Giblin that he did not want Giblin to take action against J im
McLaughlin, Dan Himmelberg and Finn Pette, the conversation became even more
confrontational and Mr. Giblin stated that he would kill or have these three union
officers killed.
188. Mr. Fox believed the threats from Mr. Giblin to be genuine. Mr. Fox
believed that Vince Giblin had the ability to order the deaths of Mr. Mclaughlin,
Mr. Himmelberg, and Mr. Pette because of Mr. Giblins connection to organized

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crime in New J ersey, Vince Giblins home territory. Mr. Fox, a founding member
of Local 501 and its longest serving Business Manager, was responsible for the Las
Vegas territory and negotiated the first collective bargaining agreement with the
Flamingo Hotel in Las Vegas, controlled at that time by Bugsy Siegel, an
individual known to be a ruthless and feared gangster in his day. Mr. Fox was
aware of the real dangers posed by organized crime families, including those close
to Mr. Giblin.
189. In direct response to the death threat made by Giblin against three of
the Union Officers of Local 501, Mr. Fox contacted these three individuals and
strongly suggested they purchase guns to protect themselves. Mr. Fox refused to
discuss anything over the phone because he knew Giblin had a penchant for
wiretapping and eavesdropping on calls and Mr. Fox feared his own phone was
tapped by Giblin. Moreover, he refused to meet the subjects of the death threats at
his home for his safety, his wife's and the safety of the Union Officers.
190. In fact, for the past several years, IUOE has exercised total control
over Local 501, all for the purpose of preventing any discovery or disruption of the
many kickback schemes in place that divert tens of millions of dollars from Local
501 and its members to leaders of IUOE, including past IUOE General President
Vince Giblin, the current General President, Callahan, high ranking IUOE
employees of headquarters and the past and current Vice Presidents that do the
bidding of the IUOE General President. For example, after Giblin used threats of
violence and termination to obtain Mclaughlins resignation as Business Manager
and the appointment of Chris Brown as the replacement Business Manager, Mr.
Brown has stated publicly in many District 1 union meetings that he had no choice
in Local 501 matters and that Mr. Giblin was directing his actions. Similarly, Mr.
Curly and other current officers have frequently stated that IUOE was deciding how
various matters would be handled, including the decision to file bankruptcy and the
terms of the settlement with Blair Brim. In a complete breach of his fiduciary

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duties, Mr. Curly frequently acted contrary to the best interests of Local 501 and its
members and for the benefit of IUOE, his true principal, which directed his actions.
191. On November 19, 2009, Giblin wrote to Bob Fox, telling him that
Local 501 would soon be placed under monitorship. As part of his warning to
Mr. Fox, Giblin said:
As part of the monitorship, I am instructing the local to conduct
its Executive Board meetings in executive session. The board will call
into its meetings any member, agent, employee, consultant or
professional that adds to its deliberations. Meeting in executive session
will allow the board to maximize its attention and energy on the road
ahead and not the road already traveled. All deliberations of the
executive board will be reported at the next regular membership
meetings.
This executive session requirement by definition excludes from
participation all non-board members, including retired officers, agents
and others who have previously served the local union. Thank you for
your attention in this matter.
This new requirement, imposed by IUOE and Giblin, eliminated the risk that any
members not under the control of IUOE could easily learn about and object to the
decisions imposed on Local 501s members by Giblin and IUOE prior to their
implementation. A copy of Giblins letter is attached as Exhibit 8.
192. Immediately before seizing control of Local 501, Giblin reached into
501 through Ron Frease, then the duly-elected President of Local 501. Giblin
ordered Mr. Frease to cancel a scheduled executive board meeting, before Local
501 was placed under monitorship. The purpose of the order was to prevent
Local 501 from leading itself. No protections exist for the monitorship condition
under the IUOE constitution which, in fact, does not even expressly authorize
monitorship of a Local by the International.

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193. When officer elections were scheduled to occur at Local 501 in 2010,
some Local 501 members attempted to assemble a slate of candidates to restore
control of Local 501 to Local 501 members. Once IUOE learned of this it became
clear that IUOEs General President and Vice-Presidents management, along with
and through the direction of Mr. Brown, were going to prevent the resistance slate
from running in the election. In particular, the Election Committee was rigged.
Executive board members were supposed to offer up names of members and a vote
should have taken place until all the positions were filled. Mr. Brown instead had a
pre-selected list of members for the Election Committee, and he forced it through
the vote of the Executive Board. Mr. Murphy was elected to head up the Election
Committee and it became rather apparent that he would do whatever he could to
prevent the election of any resistance slate members.
194. In order to bolster its sham case and seize control of Local 501 from its
duly elected leadership, IUOE hired an Ethics Officer, J ames Zazzali, to
investigate anonymous reports of violations. This Ethics Officer position does
not exist in the IUOE Constitution. Nevertheless, Zazzali was paid $30,000 per
month to investigate anonymous ethics complaints, as set forth in LM-2 available
from the Department of Labor. Not coincidentally, as soon as Mr. McLaughlin was
forced to resign from Local 501 following extortionate threats, Giblin announced
that the IUOE would no longer investigate anonymous ethics complaint letters.
Giblins announcement that anonymous ethics complaint letters would no longer
be investigated coincided with the submission of anonymous ethics complaint
letters to the IUOE that discussed Lundys unethical behavior while still employed
by Local 501. The IUOE shut down the ethics investigations to protect Lundy, but
only after they had seized control of Local 501 and forced out members interested
in auditing activities at Local 501.
195. At this juncture, on or about December 2009, the IUOE brought
trumped up charges against Mr. Pette and Mr. Himmelberg for the purpose of

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preventing them from running for office. In furtherance of the scheme, the Election
Committee disallowed both Mssrs. Pette and Himmelberg from running for office
based on the false charges discussed above, though they were later found to be
innocent of the trumped up charges. Furthermore, the resistance slate was denied a
slate position on the ballot. The remainders of the resistance members running for
office were then listed on the ballot as individuals. The Election Committee then
imposed arbitrary rules regarding the collection of signatures in violation of the
LMRDA, with the Election Committee changing the arbitrary rules several times in
an effort to prevent resistance members from qualifying for the ballot. Although
Local 501 members requested that the Election Committee members appear at
monthly district meetings, they refused to appear and be held answerable for
blatantly changing the rules with no explanations offered.
196. It was evident to union members who attended the District meetings
that the entire operation of Local 501 was being run by IUOE and that Mr. Brown
was simply a mouthpiece for IUOE. Mr. Brown frequently admitted he effectively
had no autonomy in that when he would be questioned by members he replied that
he would "have to check with the International". The cellular telephone billings for
the phone assigned to Mr. Brown conclusively establish the domination and control
the international had over all union activity at IUOE Local 501. As the cellphone
bills establish, often multiple calls on a daily basis were made to the International
IUOE to Defendants Giblin, Griffin, Van Dyke and to other employees holding
positions at the IUOE International Headquarters. Following the retirement of Mr.
Giblin and the appointment of Defendant Callahan, cellular phone calls were
logged with calls to Defendant Callahan.
197. While Plaintiffs Pette and Himmelberg were running for elected office,
an anonymous email chain was circulating amongst union members from The Man
In Black, informing them about IUOEs efforts to control Local 501 and prevent
Pette and Himmelberg from running for office. It was discovered around that time

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that ABM representatives were advising Local 501 members working there that Mr.
Pette had no chance of winning the election. Moreover, those Local 501 members
with email addresses from Able were suddenly unable to receive the Man In
Black email newsletters through their Able email addresses. In other words, ABM
and Able were working in concert with the IUOE to impede fair elections in Local
501, Able by blocking insurgency email communications and ABM by spreading
anti-insurgency predictions.
198. After Dan Himmelberg was terminated without cause, Mr.
Himmelberg sued for wrongful termination. On February 24, 2012, during that
litigation, Chris Brown, the Local 501 Business Manager that delivered the
termination message to Mr. Himmelberg, was deposed by attorney Lee Feldman.
During the deposition, Mr. Feldman asked Mr. Brown why Daniel Himmelberg
was terminated as the Assistant Business Manager of Local 501 in November 2010.
Mr. Brown asked to take a break and one was provided. Mr. Brown left the room
where the deposition was being conducted.
199. Mr. Brown returned a few moments later and asked if he could speak
off the record before going back on the record. Mr. Feldman agreed. Mr. Brown
told Mr. Feldman that J ames Callahan, the General President of IUOE, told him to
get amnesia about the true facts related to Mr. Himmelbergs termination and to
say he made the decision himself. Mr. Brown also told Mr. Feldman that General
President Callahan instructed Mr. Brown to testify that Mr. Brown alone made the
decision to terminate Mr. Himmelbergs employment as Assistant Business
Manager of Local 501. The Declaration of Attorney Lee Feldman, confirming the
admission of Chris Brown, is attached hereto as Exhibit 9.
200. During a deposition in another lawsuit against the IUOE and Mr.
Brown brought by Blair Brim, Mr. Brown testified to the IUOEs instructions
regarding the removal of McLaughlin and Pette:
Q. Finn Pette, did you make the decision to fire him?

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A. No, I didn't.
Q. Okay. The international [IUOE] directed you to do it?
A. Yes, that was part of the deal for McLaughlin to have to leave, that
Pette had to go, as well.
Q. But it wasn't your decision?
A. No.

(March 7, 2011 Deposition of Brown, at 149:14-23.)
201. After IUOE had successfully seized control of Local 501 and
prevented the resistance candidates from mounting a successful challenge, Vince
Giblin instructed Defendant Bensi not to employ Mr. Pette. Defendant Bensi
instructed all of the Chief Engineers employed by Able that they were not to
employ Finn Pette. Finn Pette was blackballed coast-to-coast.
202. Bob Fox was also threatened by Callahan. In J anuary 2012, Callahan
flew across the United States and went out of his way to mention individuals
known by Bob Fox to be connected with East Coast mafia. At the J anuary 17, 2012
District 1 meeting for Local 501, J ames Callahan rose to speak:
Thank you Chris.
Aah, I would just like to say hello. Ill be brief here. I want to
introduce myself. Im a 33 year member of the operating engineers
hoisting and portable out of New York City. I was asked to take this
job on as General President and aah Ill try to do my best. Umm its an
honor to come out here, umm under the turmoil that aah you guys have
gone through and there is one announcement that we that we discussed
today and what Im going to do aah aah and one of my first duties is to
assign the General Secretary Treasurer aah Brian Hickey to assemble a
small committee to release you from monitorship. I expect that report
to be done and in front of the General Executive Board by April and
umm I dont fore see any issues.

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Aaah aah youve youve gone through turmoil, aah for anyone
that doesnt know my histories I took over my aah in some aah some
uncertain times and aah the best thing I aah advice I could give you is
solidarity because there are a lot of wolves at the door that are looking
at to take us apart. And no matter what are differences are they should
stay in this room. Because they are just waiting to take us apart and
they love to see us all at each others throats and whatever our
differences are should be settled here. They should be settled
democratically, so everyone gets their fair share.
So with that like I said you you aah my first duties as General
President will be to release you from monitorship. And I wish you all
luck if there is anything I can ever do to you, Mr. Fox it is an honor to
see you again, thank you aah, I dont know if you remember me from a
long time ago with Tom Maguire aah junior and Senior.
Bob Fox responded, Sure do. Callahan continued:
And aah a friend of yours from New York, a fellow by the name
of Dan Murphy, knew I was coming out here and he said if I saw you
to send you his regards aah you know good health.
Bob Fox responded, Thank you.
203. For more than 25 years Tommy Maguire served as the Business
Manager of IUOE Local 15, New York City. However, in 2005, shortly before his
69th birthday, Maguire, alongside three other union officers, admitted to taking
bribes from contractors in a scheme that had helped to vastly inflate the cost of
construction. Going back to 1989, he acknowledged in court, he had accepted
payoffs, sometimes in the form of Christmas gifts, from at least two contractors.
Until his resignation, he was the leader of the 6,000 engineers who run New York
city's cranes, backhoes, bulldozers, and hoists. He headed Local 15s powerful
statewide organization, and ran its wealthy political action fund, which gave

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hundreds of thousands of dollars annually to favored politicians. Most of the bribe-
passing was done through two former business agents, including Maguire's son-in-
law, Thomas McNamara, and Daniel Murphy, both of whom pled guilty alongside
Maguire. Attached hereto as Exhibit 10 is the indictment filed against McGuire,
McNamara, Murphy and Anthony Quaranta.
204. Callahan, the current Business Manager of Local 15 and General
President of IUOE (a violation of the IOUE Constitution in that the President
position is a full time position), knew that Bob Fox would be aware of the names of
these convicted racketeers who had just finished serving their federal prison terms.
Bob Fox knew that Callahans references to Tom Maguire and Dan Murphy were a
warning and thinly veiled threat directed at him. Moreover, the threat was
delivered in a way that would not have been obvious to many of the Local 501
members without Bob Foxs history with the IUOE, and unfamiliar with East Cost
organized crime-related IUOE activity.
205. At that same J anuary 17, 2012 meeting, Callahan pulled Mr. Pette to
the back of the room to have a conversation. He asked, "What do you want?" Mr.
Pette had made a motion that the Local Union begin accepting Dan Himmelbergs
dues because they refused to accept them while he hadn't paid his sham fine. Mr.
Pette began to explain the situation regarding Mr. Himmelbergs dues assuming
that was what Callahan was referring to with his question. He immediately stopped
Mr. Pette, and said, "I don't give a shit about Dans dues! What do YOU want?"
Startled, Mr. Pette asked, "What do you mean?" Callanhan said, "What do you
think I mean? What do you want to make all of this go away?" Mr. Pette asked,
"Are you talking about the lawsuits?" Mr. Callahan asked, "What do you think I'm
talking about?" Mr. Pette asked him to give him a little time, but Callahan said he
wanted to handle it immediately. Mr. Pette told Callahan that he wasn't prepared for
Callahans question and said, "It's a little hard to swallow. I've been at war with the
International for three years and you walk up and say what do I want? I mean, its

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hard when the most powerful guy in the International talks to you when nobody
would return a phone call for three years you know?" He responded, "Let's get
something straight, YOU are the most powerful man in the IUOE, J OHNNY! And I
don't need anything we talk about showing up on the fucking internet tomorrow,
got it?" Mr. Pette knew that Callahan was referring to the "Man In Black" e-mails
that had become so prevalent in the past several years as a source of information to
members of the Operating Engineers union.
206. Mr. Pette asked to confer with Dan Himmelberg and agreed to meet
the following morning at the Bonaventure Hotel in downtown Los Angeles with a
list of what they wanted. The following morning, they presented a settlement
demand on behalf of themselves and Mr. McLaughlin that included a demand for
an admission by IUOE that they were falsely accused. Callahan said they would
never receive a penny from IUOE because they weren't responsible. Mr. Pette and
Mr. Himmelberg discussed the actions of Vincent Giblin, Dennis Lundy, J im Van
Dyke and Callahan said, "Look, I can't undo what happened before me. I can't spit
on Vincent, he gave me the job." They repeated their settlement proposal and told
Callahan that the proposal was what they wanted. Callahan promised to take their
requests to the General Executive Board.

E. Caremark Defrauded I UOE Members Nationwide and I UOE
Conspired with Caremark to Make This Possible
1. Defendants Diverted Caremark Reimbursements from Local
501s Health & Welfare Fund to I UOE and I mposed
Caremark on I UOE Despite the Excessive Costs
207. Vince Giblin was Chairman of the Board for Horizon Blue Cross at the
same time he became General President of the IUOE. Because of his dual roles,
Giblin was able to require use of Blue Cross as the healthcare benefits provider to
local unions, including Local 501. Blue Cross utilizes Caremark as its Prescription

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Benefits Manage (PBM). Because of the number of members utilizing the Blue
Cross/Caremark benefit, members are entitled to receive a rebate from Caremark,
reflecting the members substantial buying power. The Caremark rebates should
have been paid out to each local union. Instead, they were paid to IUOE. IUOE, in
turn, failed to account to Local 501 (and other local unions) for the rebates they
should have received.
208. When Caremark does provide a rebate, and a Local requests
justification for the amount of rebates and charges, Caremark will not provide the
documentation to support the charges and rebates.

2. I UOE Conspired with Caremark to Force Caremark on
Members, Going so Far as to Rig Bids When Caremark Was
Not the Winning Bidder
209. In 2006, International Union of Operating Engineers (IUOE)
reported that it had engaged Trivantage Solutions to solicit bids for PBM services
for all of IUOE. PBM refers alternatively to prescription benefits manager or
pharmacy benefits manager, both describing the same benefit.
210. In late 2007, Giblin, then General President of the IUOE, and also
Chairman of the Board of Directors for Horizon Blue Cross/Blue Shield of New
J ersey, sought to finalize an agreement between the IUOE, all of the IUOE locals,
and Caremark as the PBM. As Chairman of the Board of Directors for Horizon
Blue Cross Blue Shield of New J ersey, Giblin declared substantial compensation in
connection with this position.
211. In April of 2008, the 37
th
International General Convention for IUOE
was held in Las Vegas. During the course of this Convention, General President
Vincent Giblin met with the General Executive Board (GEB) and key business
managers for the larger IUOE Locals to gain support for the new PBM, Caremark.

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212. The inclusion of the Locals that had the largest membership numbers
was critical to the General Presidents plans with Caremark. These included, at a
minimum, locals 3, 12, 18, 68, 94,150, and local 501. The total membership in the
IUOE is roughly 400,000, according to IUOEs own website. Local 3 claims to
have 42,000 members. Local 12 had roughly 21,000 members. Local 18 claims to
have 15,000 members. Local 68 claims to have 5,863 (all stationary) members.
Local 94 claims to have 5,835 members (all stationary). Local 150 claims to have
22,425 members. Local 501 has roughly 10,000 members. Although some other
locals had larger memberships than 94 and 68, both of these locals are all stationary
engineers. Local 399 with its 9,227 members, local 324 with its 15,530 members
and Local 39 with its 16,762 members (all with loyal GEB members at the helm,
were equally important to the Caremark contracts). Totaling the membership from
the IUOE locals that Giblin knew he could count on to support his Caremark deal,
he had at least a total of 62,354 members (Locals 18, 39, 68, 94, 399) providing
support for his Caremark plan. However, this was less than 20% of the total IUOE
membership. In order for Giblins plan to succeed, he needed locals 3, 12, 150 and
501 to sign on as well to his plan. In total, these locals held just shy of 100,000
members.
213. Several of the larger locals investigated other PBM Servicers prior to
agreeing under duress to accept Caremark as its PBM service provider.
214. Trivantage received five cents from every prescription filled under the
Caremark agreement. Truven Health Analytics, Inc. acquired Trivantage as part of
the acquisition of the healthcare consulting business sold by Thomson Reuters. On
information and belief, Truven is responsible for the obligations of Trivantage.
215. The contract with Caremark is held by IUOE, not Local 501. Terms
were negotiated by Trivantage, an entity retained by IUOE, not the Health &
Welfare Trust Fund at Local 501. Fees were charged to Local 501s Health &
Welfare Trust Fund to pay Trivantage, even though Trivantage is not under

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contract with Local 501. Truven Health Analytics, Inc., is the successor-in-interest
to Trivantage, having purchased it from Thomson Reuters in 2012.
216. Efforts to obtain less expensive PMB services were and are futile so
long as IUOE imposes its dominion and control over Local 501s affairs. In
October 2009, J ohn St. J ohn, an attorney at St. J ohn, Wallace, Brennan & Folan
LLP, warned the Trustees of the Health & Welfare Trust Fund that efforts to
replace Caremark as the PBM had political overtones. For example, in an October
20, 2009 e-mail, Mr. St. J ohn wrote:
I think some complaint should be made to the IUOE about
Trivantages non response. However, this might have political
overtones, so I'll leave it up to you to decide whether such a complaint
should be made, and if so whether it should come from you (or
someone else at Local 501) or from me. Let me know.
As explained above, Trivantage was employed by IUOE to negotiate the terms of
PBM services with Caremark and disregarded the representatives of the Local 501
Health & Welfare Trust Fund.
217. In 2009, Caremark reached a settlement in New England Carpenters as
a result of allegations of overcharging third party payors, such as Local 501s
Health & Welfare Fund. In response to being forced by this settlement to
reimburse third party payors for overcharges, Caremark asserted a right to
unilaterally increase rates charged to Local 501s Health & Welfare Fund for PBM
services. On this behavior, counsel to Local 501s Health & Welfare Fund said:
I have said before that, as fiduciaries, you should not consent to
the modification unless the Fund receives something in exchange. If in
fact (i) Caremark would not offer the new contract (or any new
contract) to the Fund unless you consented to the modification, and (ii)
the Fund could not obtain a contract from another PBM that was at

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least as good as Caremark's proposal, then it would be legally
appropriate to give your consent to the modification.
Of course, "consent" appears to be moot here, since Caremark
has already unilaterally implemented the pricing change. I doubt that
my recent letter to Caremark's counsel will prompt Caremark to unring
the bell and reinstate the pre-September pricing method. This means
that recovery of the excess charges under the modification would
require some action by you, meaning litigation. So "consent" would
mean a decision not to take any action against Caremark.
A couple of points here. First, as fiduciaries you are not
compelled to take legal action on behalf of the Fund if the anticipated
costs and risks of litigation outweigh the anticipated benefits. As I said
earlier, it looks to me that the pricing modification implemented by
Caremark will cost the Fund about $30,000 (although this is a very
rough estimate). There is no provision for attorneys' fees in the
contract, so even if you won in any suit the Fund would have to bear
its own legal fees.
So, in simpler terms, Caremark got away with one because (a) the trustees believed
that the cost of litigation was an impediment to making them do the right thing, and
(b) IUOE was making sure that no such litigation occurred to protect the sweetheart
deal arranged by Giblin.
218. The rate increase imposed on Local 501 was not isolated. In fact,
Caremark unilaterally claimed a right to increase rates on Locals around the
Country because it had been caught overcharging other third party payors.
Caremark passed on a portion of the settlement of its illegal charges to other
payors, essentially leaving IUOE Locals responsible for a portion of Caremarks
illegal behaviors.

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219. McLaughlin, after threats from Giblin, advised other Local 501 Health
& Welfare Fund Trustees that Local 501 had to accept Caremark and Giblin had
threatened retaliation if they refused. The Trustees stopped soliciting bids from
other PMB providers, regardless of the price bids, even though they already had
lower-priced bids in hand. The Trustees of Local 501s Health & Welfare Trust
Fund acquiesced, under duress, to this extortionate pricing by Caremark, the PBM
imposed on them by Giblin and IUOE.
220. Caremarks rates for PBM services are significantly higher than the
rates charged by comparable competitors. For example, Local 3, another IUOE
Local in California, put out the PBM package for competitive bid. Denver
Management handled the bidding process for Local 3. Caremarks bid was fourth
by price. Caremarks bid was roughly $4 million higher than the winner of the
bidding process. Giblin was told that Medco had won the bid process, so Giblin
was aware that Caremarks rates were significantly higher than other options, and
continued insistence on the use of Caremark was detrimental to members and
contrary to fiduciary obligations of Fund trustees and Union leadership to their
members.
221. The Business Manager of Local 49, Glen D. J ohnson, was dissatisfied
with Caremarks service and lack of transparency. The Trustees of their Health &
Welfare Trust Fund put out the PBM contract for competitive bid to replace
Caremark. Vince Giblin told J ohnson to put Caremark back in. J ohnson declined,
saying that Local 49 was ready with a new PBM provider and Mr. J ohnson had no
vote on the Board of Trustees of their Health & Welfare Trust Fund. Mike
Treanor, Interim Director of Research & Education, was dispatched by IUOE and
Giblin to Minnesota to demand a second round of bids for PBM services and
attempt to stack the deck for Caremark. Even with that interference, Caremarks
bid was not the low bid. Counsel advised the Trustees that they would be violating
fiduciary duties if they didnt move forward with new contract. Glen J ohnson, a

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Member of the IUOE General Executive Board, was told by Giblin to resign from
the Executive Board as a Trustee. Mr. J ohnson was next told by J ohn Hamilton,
Second Vice President of IUOE at the time, to resign as Vice President of the North
Central States Conference. Hamilton was the President of the North Central States
Conference at that time. The effect of these actions is to leave J ohnson isolated at
Local 49.
222. Immediately prior to the award of the PBM service contract to
Caremark, officer from one substantial Local that had not yet accepted Caremark
received an angry call from General President Giblin. With all of the officers in the
room, Giblin screamed for some time at them by telephone, demanding that they
sign on to the Caremark deal he proposed. During the course of this call, Giblin
threatened to put the Local under trusteeship if the Officers of the Local failed to
deliver the Local into the Caremark deal.
223. At one IUOE Local, a meeting was held to discuss Caremark.
Representatives from the Local, from Trivantage, and IUOE were all present. The
IUOE representative demanded access to bids for PBM services obtained by the
Local. The Local acquiesced to the demand, and, not surprisingly, Caremarks
revised bid was suddenly less than the lowest bid that the Local had obtained and
then delivered to IUOEs representative. This illegal bid rigging allowed Giblin to
secure the critical mass of acceptance of Caremark that he needed to force
Caremark on all of IUOE. While this Local was being extorted and threatened,
another Local, helmed by a loyal GEB Vice-President, was given permission to
negotiate its own deal with Caremark. The only demand placed on this Vice-
President was that he keep it a secret that the deal his Local negotiated was better
than the deal obtained by IUOE for every other Local in IUOE. This deal was
conducted without the assistance of Trivantage.
224. In mid-2012, auditors at one Local completed a review of Caremarks
PBM services. They discovered that, in one aspect of the service only, Caremark

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had illegally overcharged the Locals health & welfare fund in excess of $6.5
million for the relatively short period covered by the audit review. This same
illegal practice was in place throughout the nation, and Caremark is under
investigation by states around the Country for this fraudulent practice. The affected
beneficiaries around the country may have been harmed in excess of $200 million
by this one illegal scheme operated by Caremark. Caremark has received a demand
from the Local to refund these overcharges. Caremark refused, but did not deny
that the illegal practice occurred. Caremark only challenged the amount of the
alleged damage.
225. Representatives of IUOE and Trivantage conspired within the state of
California to engage in unlawful conduct designed to ensure that Caremark was
selected as the PBM for all Locals in IUOE. This conspiracy included fraud
directed at Locals and their members, bid-rigging, extortion, and other anti-
competitive conduct that actually injured beneficiaries throughout the State of
California and the United States. After conspiring to take certain actions in
furtherance of that goal, the plan was implemented and Caremark did, in fact,
secure business from the vast majority of Locals in IUOE nationwide.
226. Because Caremark was aware that its contract was with IUOE, and
IUOE was forcing Locals to accept the Caremark arrangement, Caremark had no
incentive to deal honestly and fairly with Locals seeking to negotiate terms that
were in their best interest. Lacking a direct, arms-length relationship with Locals,
Caremark took maximum advantage of the captured Locals that were forced to deal
with it.

F. Defendants and Their Agents Destroyed or Removed Records That
Should Have Been Retained by Local 501 for 5 Years
227. While Chris Brown worked as the Business Manager of Local 501, he
was observed downloading approximately ten flash drives full of emails and other

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electronic records. In addition, the contents of an entire room filled with file boxes
belonging to Local 501 were shredded at the behest of IUOE to limit the ability of
auditors to investigate underpayments and other wrongdoing by Able and ABM.
228. Sandra Acosta, who operated the Bakersfield office for Local 501,
removed or destroyed files maintained in that office and relating to employees
working in positions in and around Bakersfield.
229. Sandra Acosta also operated her own business out of the Bakersfield
office of Local 501. Her business, On The Greene LLC, was formed J uly 8,
2003 according to records on file with the California Secretary of State. On The
Greene LLC sells custom golf markers and other promotional gift items. On The
Greene LLC sold golfing promotional items across country to various local union
chapters. In particular, On The Greene LLC sold its merchandise to IUOE Locals
138, 30, 68 and 12. J im McLaughlin learned of the business when Bill Duffy
called 501 about an order.
230. Thus, it is also possible that documents Acosta destroyed in
Bakersfield were records related to other businesses that Acosta owned or invested
in, including On The Greene LLC and Foothill Resources, Inc.
231. Van Dyke has removed current records of Local 501 and delivered
them to IUOE. The removal of those records from California is a violation of the
LMRDA 5-year record retention requirement.

G. Professionals Under I UOEs Control Acted at the Direction of
I UOE to Harm Local 501
232. To further its scheme to seize control of Local 501 and protect its long-
standing kickback arrangements with Able and ABM, the IUOE utilized a number
of professionals to operate as its agents supporting its unlawful agenda.
233. For example, as described above, Defendant Levy conspired with
IUOE to convince Mr. McLaughlin to resign, thereby allowing IUOE to seize

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control of Local 501 and remove other Plaintiffs from positions where they might
continue challenging Defendants conduct, conduct audits, and expose the many
kickback operations in place.
234. Defendant Randy Henningfield, charged with auditing Local 501
funds, including the Apprenticeship Fund, instead conspired to conceal evidence of
malfeasance by Lundy and his Henningfields wife, Escanuelas, to the detriment of
Local 501. For his misconduct, Randy Henningfield was rewarded with additional
assignments by Local 501 and IUOE.

H. Consigliore Griffin Created Policies to Protect the Hand-Selected
Leadership Placed in Control of Locals by I UOE
235. In 2007, Mike Quigley, a member of IUOE Local 150, which covers
much of Indiana, Illinois, and Iowa, took action to try and stop the corruption that
pervaded his local. Mr. Quigley teamed up with an insurgent candidate to unseat
Bill Dugan, Local 150s longtime president and Business Manager. Mr. Quigley
created a rudimentary website to document the malfeasance of the locals
leadership under Dugan.
236. But IUOE headquarters stepped in, passing a rule that forced all
candidates to password-protect their campaign websites, allowing access only to
union members and barring the general public. The rule made it difficult for
insurgent candidates to spread the word to other members, thereby protecting the
incumbent. Pushing the rule that contributed to the failure of Mr. Quigleys
challenge was Attorney Griffin, then the IUOEs general counsel, who was later
appointed by President Obama to the National Labor Relations Board (NLRB).
Three years later, Dugan was indicted for violations of federal labor law and
sentenced to three years of probation. Attorney Griffin routinely acted on behalf of
IUOE to prevent reforms of IUOE Locals, reforms that would have reduced
IUOEs control over the supposedly autonomous Locals, such as Local 501.

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I. Giblin and I UOE Selected Zazzali to Fabricate the Appearance of
Ethical Conduct by I UOE, While Actually Using Zazzali as
Another Tool for the Oppression of Members Challenging I UOEs
Widespread Corruption
237. While Ethics Officer Zazzali was ostensibly appointed to ensure
ethical behavior throughout the IUOE by investigating ethical violations and
reporting to the IUOE Board, the truth of Zazzalis purpose was far different. The
ethics rules were not applied to the IUOE leadership or their made men. For
example, Vince Giblin received as much as $199,625 from the Blue Cross Board
while simultaneously serving as GP of IUOE. Despite this conflict of interest
demonstrated in the most severe manner when Giblin forced Locals to use over-
priced Caremark PBM services in direct violation of fiduciary duties to Health &
Welfare Fund participants and beneficiaries at Locals, including Local 501, Giblin
suffered absolutely no adverse action through Ethics Officer Zazzali for this
unethical conduct. Attached hereto as Exhibit 11 are copies of Vince Giblins LM-
30 filings, confirming the conflicting employment. Shockingly, Attorney Griffin
caused several of those LM-30 filings to be hand delivered to the U.S. Department
of Labor, but, in true consigliore fashion, he evidently never counseled boss Giblin
against pursuing this very real conflict that manifested itself in Giblins Caremark
scam. The IUOE Constitution, attached hereto as Exhibit 22, explicitly prohibits
self-dealing in connection with any member welfare plans. Constitution, Article
XVI, Section 7.
238. Callahan has also escaped the scrutiny of Ethics Officer Zazzali.
Callahan serves both as General President of IUOE, acting as the Chairman of the
Executive Board, and as Business Manager to Local 15. A Press Release by IUOE
identifies Callahans dual roles and is attached as Exhibit 21. This dual service is
prohibited by the IUOE Constitution, which states that the General President shall

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devote his full time to the duties of his office. Constitution, Article VI, Section 5.
The IUOE Constitution is attached hereto as Exhibit 22.
239. Similar to Giblin, J ohn M. Hamilton, the Business Manager at Local
324 and former Second Vice President of IUOE also served on the Board of Blue
Cross Blue Shield of Michigan. Blue Cross Blue Shield of Michigan provides
Health Benefit Claims Administration for the Trust at Local 324. But Zazzali has
yet to report that Hamilton is operating in a position of perilous ethical impairment.
Certain of Mr. Hamiltons LM-30 filings from 2004 to 2011 are attached as Exhibit
19.
240. In addition to the conflict posed by Mr. Hamiltons work for the Board
of Blue Cross Blue Shield of Michigan, he engaged in very public dealings with a
convicted investment fund embezzler. As a quid pro quo for promising to invest
over $60 million of union pension funds with J ohn Orecchio of AA Capital
Partners, Mr. Orecchio is alleged to have arranged for the purchase of Mr.
Hamiltons home at a significantly inflated price. Mr. Hamilton exercised his Fifth
Amendment privilege when asked to testify by the SEC. Ethics Officer Zazzali
apparently found nothing irregular with this conduct either. Orrechios indictment
is attached as Exhibit 12. A Detroit news article provides additional background
and is attached as Exhibit 20.
241. Terrence Terry McGowan was accused in a NLRB complaint of a
series of threats of violence and economic retribution directed against any member
of Local 139 that filed any charges against the union with the NLRB. McGowan
settled the complaint and, at about that same time, was appointed to the General
Executive Board as a Vice President, suggesting that conduct such as McGowans
was rewarded by IUEO, not punished. As with misconduct by other IUOE
leadership, Ethics Officer Zazzali saw nothing here worth investigating. The
settlement agreement is attached as Exhibit 13.

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242. IUOE Board Trustee J ohn J ack Ahern has also escaped scrutiny by
ethics officer Zazzali (though he would likely demur that he has no obligation to
investigate anyone where no complaint is filed and anonymous ethics complaints
are no longer accepted now that Zazzalis business with J im McLaughlin and Local
501 is concluded of course, no member interested in their own safety and
livelihood would file a complaint against any IUOE Board Member if they had to
subscribe their name to it). In J une 2007, Dennis Lundy stayed at the Millenium
Hilton, in Richmond Hill, New York. But Mr. Lundy didnt pay for that room; it
was provided to him by J ohn Ahern (though Mr. Lundy did charge his incidental
alcohol and pornography to the American Express card he routinely abused while
working for the Training Trust at Local 501). J ohn Ahern didnt pay for that room
either. It was comped to him by Millenium Hilton. Millenium Hilton is a
signatory to a collective bargaining agreement with IUOE. As an employer of
union members, Millenium Hilton is prohibited from giving, and all IUOE
members and employees are prohibited from receiving, any gifts from Millenium
Hilton. The room received by Ahern and given to Lundy constitutes an employer
kickback to IUOE members. Mr. Lundys American Express bill page reflecting
his incidental charges is attached as Exhibit 14. The room bill in Mr. Aherns name
is attached as Exhibit 15. The departure payment receipt by Mr. Lundy is attached
as Exhibit 16. Once again, Ethics Officer Zazzali is nowhere to be seen, which is
consistent with his purpose: create the illusion of a Code of Ethics and then enforce
it without due process against any members that would dare to challenge the IUOE
aristocracy.
243. Regarding Dennis Giblin, the son of Vince Giblin, Zazzali was
required to respond to a complaint contenting that Dennis Giblin, who plead guilty
to embezzlement charges filed by the government, should be expelled from IUOE.
Zazzali concluded that because Dennis Giblin, currently on withdrawal from IUOE
Local 68, he need not be expelled. This ruling by Zazzali paves the way for Dennis

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Giblins eventual return to IUOE after he hides for enough years at Able, collecting
the large management-level salary that he qualifies for as a convicted felon.
Zazzalis Report on Dennis Giblin is attached hereto as Exhibit 17.
244. In Section III, entitled Financial Practices, the IUOE Code of Ethics
says:
C. The Union shall not permit any of its funds to be invested in a
manner that results in the personal profit or advantage of any Union
officer, employee or representative.
Mr. Giblin was permitted to obtain personal advantage as a result of this
relationship with Blue Cross, in violation of the IUOE Code of Ethics. Ethics
Officer Zazzali, who acts to serve the interests of the IUOE leadership that selected
him, had done nothing. By contrast, Ethics Officer Zazzali seemed very concerned
of the potential conflict of interest that could occur if a Chief Engineer at Local 501
served as a District Representative because of the tension between serving the
interests of members and the interests of the employer. A true and correct copy of
March 19, 2009 correspondence from Ethics Officer Zazzali is attached hereto as
Exhibit 18.
245. Mr. Pette wrote letters to Ethics Officer Zazzali, outlining the
embezzlement of apprenticeship funds by Dennis Lundy and stating that it was his
belief that Ethics Officer Zazzali was being used as a weapon against J im
McLaughlin in retaliation for that investigation. Ethics Officer Zazzali never
responded to Mr. Pettes letters about Lundy and McLaughlin.
246. Although Article 8 of the IUOE Constitution requires written
determinations by Ethics Officer Zazzali, in all cases involving Local 501, as far as
any member of Local 501 knows, Ethics Officer Zazzali failed to prepare any
written Reports for submission to the General Executive Board of IUOE.

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J. Able and ABM Are Targeting Local 501 Employees Sympathetic
to the Resistance and This Lawsuit
247. Individuals known or believed to be sympathetic to or cooperative with
the resistance in Local 501 are now being targeted in retaliation by Able and ABM.
Pat Adams, a Super Chief and Erik Smith were terminated from Able because it
was believed that they were sympathetic or cooperative with the resistance in 501.
Able personnel were at union meetings and observed Mr. Smith and others wearing
clothing or pins indicating their support for the resistance at Local 501. Able
personnel observed resist buttons on Mr. Smith and others at their job site.
248. Eric Sorenson, an ABM vice-president, attended the December 2012
semi-annual meeting of Local 501. At that meeting, he took pictures of all
individuals wearing the Man in Black shirt that is a sign of support for the
resistance to IUOEs ongoing, unlawful dominion over Local 501.
249. Able and ABM also conspired with IUOE to influence the outcome of
the last election at Local 501. For example, in the last election, ABM blocked
electioneering emails to union members from resistance candidates, while
permitting through their mail servers the electioneering emails sent on behalf of
candidates approved by IUOE.

K. Fiduciaries to Local 501 Caused Harm to Local 501 in Order to
Further I UOEs Plan to Secure Complete Control Over Local 501
250. At the behest of Callahan and IUOE, Local 501 was precluded from
fully defending itself against the wrongful termination suit filed by Blair Brim and
described above. As a result, Mr. Brim obtained a judgment of roughly $6 million
against Local 501. Mr. Callahan threatened Lee Feldman, counsel for Mr. Brim,
telling him that he would, acting through the monitorship the International had
imposed upon Local 501, force Local 501 into bankruptcy if Feldman didnt accept
the offered settlement for the Blair Brim judgment. Mr. Feldman refused to

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succumb to the threats of Mr. Callahan, and Mr. Callahan caused Local 501 to file
for bankruptcy protection.
251. Similarly, the suit filed by Ms. Acosta was settled at a higher than
necessary amount because Mr. Giblin refused to testify at a deposition, knowing
that Ms. Acosta could have exposed substantial unlawful conduct by Mr. Giblin.
252. After the filing of this action, IUOE, through Callahan, advised Local
501 that by virtue of the bankruptcy that he and IUOE forced on Local 501, Local
501 could not nominate or seat delegates to the IUOE national convention being
held later this year. This prevents Local 501 from voting on changes to the IUOE
constitution and voting on officers. It was also done to prevent Local 501
representatives from co-mingling with members of other Locals that might be
motivated to challenge IOUEs illegal conduct through their Locals. The
convention is held once every five years. This interference with the rights of Local
501s members is profoundly injurious.

L. I UOE and I UOEs Hand-Picked Operatives Will Not Permit Local
501 Members to Nominate and Elect Delegates of Their Choosing
to Attend the I UOE General Convention in April 2013
253. Once every five years, every member of IUOE is entitled to participate
in the IUOE General Convention through democratically nominated and elected
delegates. In the case of Local 501, the membership of Local 501 has paid many
millions of dollars in per capita contributions to IUOE (approximately $100,000 per
month) which conferred the right to participate in the General Convention on Local
501s members.
254. On Tuesday, J anuary 15, 2013, IUOE Local 501 held the District 1
meeting at 2405 W. 3rd Street, Los Angeles CA 90057. Over 20 members were in
attendance. At the beginning of the meeting President Ken Capehart advised the
members that there would be No Special Order of Business. At that time,

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Member Patrick Adams raised his hand and asked if the nominations for the
General Convention Election were supposed to take place that evening, following a
motion made at the December 2012 Semi-Annual General Membership Meeting of
Local 501. President Capehart informed the membership that the motion was ruled
out of order by the Executive Board, and further stated that the Executive Board
had voted to cancel the election due to budgetary concerns.
255. At that time, Plaintiff Finn Pette, also in attendance, raised his hand
and informed President Capehart that he could not cancel the election, stating that it
was a protected act under the National Labor Relations Act. President Capehart
disagreed, claiming that he could cancel the election and asserting that the decision
was authorized in the By-Laws and Constitution. Mr. Pette had with him the
Department of Labors Election of Officers of Labor Organizations booklet,
discussing 29 CFR Chapter IV, Subchapter A, Part 452. Mr. Pette proceeded to
read Section 452.22, entitled Delegates To A Convention:
Under certain circumstances, delegates to a convention of a national
or international labor organization, or an intermediate body, must be
elected by secret ballot among the members in good standing of the
labor organization they represent even though the delegates are not
officers of the organization. Such election is required by the Act.
Again, President Capehart said, I disagree.
256. A heated discussion then occurred. Mr. Pette again read from the
Department of Labors booklet, at Subpart G, entitled Campaign Safeguards.
Mr. Pette read aloud from Section 452.66, entitled Statutory provisions:
The opportunity for members to have a free, fair, and informed
expression of their choices among candidates seeking union office is a
prime objective of title IV of the Act. Voters can best be assured
opportunity for an informed choice if certain campaign rights are
guaranteed to candidates and their supporters. To this end, the statute

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provides that adequate safeguards to insure a fair election shall be
provided, and states certain specific safeguards. These safeguards
apply not only to candidates for officer positions as defined in the Act
but also to candidates for delegate posts, if the delegates are to
nominate or elect officers.
257. Mr. Pette followed this section with a reading from Section 452.99,
entitled Notice of Election:
Elections required by title IV to be held by secret ballot must be
preceded by a notice of election mailed to each member at his last
known home address not less than fifteen days prior to the election.
The members then challenged President Capehart with the question of sending out
notification, to which he responded, The By-Laws give the Executive Board the
power to overturn the election. We decided it would cost too much. Again, a
heated debate followed. Mr. Pette asked Mr. Capehart to provide a copy of the By-
Laws and Constitution and he refused. Member Patrick Adams had a Constitution
and copy of the Local By-Laws with him and Mr. Pette asked to see them.
258. Upon finding the relevant passages, Mr. Pette again addressed
President Capehart. Mr. Pette asked if he would acknowledge that the Constitution
Mr. Pette held was the governing document of rules for the Union. Mr. Capehart
stated that it was the correct Constitution. Mr. Pette proceeded to read sections of
Article III section 3, entitled Composition of Convention, at paragraph 2:
The election of delegates shall be conducted by secret ballot. In order
to be eligible to be a candidate for delegate, a member must, at the
time of nomination, be in good standing with respect to payment of
dues and meet the requirements contained in the second paragraph of
Article XXIV, Subdivision 1, section (b). In addition, Local Unions
may impose in their bylaws a requirement that candidates for delegate
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not more than two-hundred (200) members or two percent (2%) of the
entire membership, whichever is less. Adequate safeguards to insure a
fair election shall be provided by the Local Union in accordance with
International Constitution, applicable law, and such rules and
regulations as may be promulgated by the General executive Board.
After reading this passage from the IUOE Constitution out loud to President
Capehart, Mr. Petter again asked, Where does that say you have the right to stop
the election? Mr. Capehart again said, I disagree.
259. At that time a very heated discussion took place. The membership was
extremely angry and were told that if they didnt like it to file a complaint. Mr.
Pette pointed out that the complaint process of the IUOE Constitution would take
so long that the election would be a moot point. President Capehart simply smiled
at Mr. Pette in response.
260. In violation of members LMRDA Title 1 rights, Local 501 made no
effort to request permission from the bankruptcy court, to seek permission to spend
money on the ordinary business activity of sending delegates to the General
Convention. The failure to make this request was likely a direct instruction of
IUOE, which appears to be setting the stage for the merger of Local 501 into
another local union to diminish the ability of Local 501 members to seek redress.
This decision was appealed by Mr. Pette, and the Department of Labor was made
aware of this serious breach of the rights of union members to equal protection.
Attached as Exhibits 27 and 28 are Mr. Pettes communications challenging
this decision and IUOE response. Once again, the Department of Labor failed to
protect Local 501s members.
261. Local 501 members paid for five years to obtain the Title 1 privilege of
selecting their representation at the 38
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Annual General Convention. The IUOE
has maintained control of Local 501 during most of the last five years, and is now
using that control to prevent Local 501 members from selecting the delegates that

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will represent their interests in decisions that will remain in place for the next five
year. For the last five years, IUOE took a percentage of the dues paid by members
to secure this very right. Every dollar IUOE collected from Local 501 members for
the past five years should be restored to Local 501 members as ill-gotten gains of a
scheme to seize control of Local 501 through racketeering activity. The Court
should impose a constructive trust on IUOE, sequestering those per-capita
contributions from 2009 through 2013. Since there are no adequate measures
available to restore members rights prior to the 38
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Local 501 members should be excused from all per-capita contribution obligations
until such time as control of Local 501 is restored to its members and a meaningful
democratic processes is put in place both at Local 501 and IUOE. Any actions
directed at Local 501 from the 38
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directed at members generally, should be abrogated as a result of IUOEs years of
misconduct and the absence of equal protection rights for Local 501 members.

V. CLASS ACTI ON ALLEGATI ONS
262. Plaintiffs bring this action individually, as well as on behalf of each
and all other persons similarly situated in a concerted effort to improve wages and
working conditions for other, similarly situated employees, and thus, seek class
certification under Fed. R. Civ. Proc. 23.
263. The proposed Local 501 Class consists of and is defined as:
All individuals that are or have been members of the International
Union of Operating Engineers Local 501 at any time within the five
years prior to the filing of this action. Excluded from the Class are all
Defendants in this action; Class Counsel and their employees and
members; all persons within the third degree of relationship to any of
the excluded individuals and any judge who hears or decides any
matter in this litigation.
264. The proposed Caremark Class consists of and is defined as:
All individuals that are or have been members of any Local that is part
of International Union of Operating Engineers at any time within the
five years prior to the filing of this action, or the beneficiary of any

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such member, who received pharmacy benefit management services
through any Local health & welfare benefit fund from CVS Caremark
Corporation or its subsidiaries. Excluded from the Class are all
Defendants in this action; Class Counsel and their employees and
members; all persons within the third degree of relationship to any of
the excluded individuals and any judge who hears or decides any
matter in this litigation.
265. The proposed Local 501Benefit Class consists of and is defined as:
All individuals that are or have been beneficiaries of benefit plans
provided through the International Union of Operating Engineers
Local 501 at any time within the five years prior to the filing of this
action. Excluded from the Class are all Defendants in this action;
Class Counsel and their employees and members; all persons within
the third degree of relationship to any of the excluded individuals and
any judge who hears or decides any matter in this litigation.
266. The proposed EPEC PAC Class consists of and is defined as:
All officers and employees of any Local union in the International
Union of Operating Engineers that contributed at any time during the
five years prior to the filing of this action to the International Union of
Operating Engineers EPEC Fund, FEC Committee ID: C00029504.
Excluded from the Class are all Defendants in this action; Class
Counsel and their employees and members; all persons within the third
degree of relationship to any of the excluded individuals and any judge
who hears or decides any matter in this litigation.

267. Plaintiffs reserve the right to establish sub-classes, or modify any Class
or sub-Class definition, as appropriate.
268. At all material times, Plaintiffs were or are members of the Class.
269. There is a well-defined community of interest in the litigation and the
class is readily ascertainable:
(a) Numerosity: The members of the class (and each subclass, if
any) are so numerous that joinder of all members would be
unfeasible and impractical. The membership of the entire class
is unknown to Plaintiffs at this time, however, the smallest of
the defined classes is estimated to be greater than 5,000
individuals and the identity of such membership is readily
ascertainable by inspection of Defendants records.
(b) Typicality: Plaintiffs are qualified to, and will, fairly and

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adequately protect the interests of each class member with
whom there is a shared, well-defined community of interest.
Plaintiffs claims are typical of all class members claims. For
example, Plaintiffs were members of Local 501 within the class
period, like all other Class members, and Plaintiffs were injured
by manipulation of Local 501 through racketeering activity as all
other Class members were.
(c) Adequacy: Plaintiffs are qualified to, and will, fairly and
adequately protect the interests of each class member with
whom there is a shared, well-defined community of interest and
typicality of claims, as demonstrated herein. Plaintiffs
acknowledge that Plaintiffs have an obligation to make known to
the Court any relationship, conflicts or differences with any
class member. Plaintiffs attorneys, the proposed class counsel,
are versed in the rules governing class action discovery,
certification, and settlement.
(d) Superiority: A Class Action is superior to other available
methods for the fair and efficient adjudication of the
controversy, including consideration of:
1) The interests of the members of the class in individually
controlling the prosecution or defense of separate actions;
2) The extent and nature of any litigation concerning the
controversy already commenced by or against members of
the class;
3) The desirability or undesirability of concentrating the
litigation of the claims in the particular forum; and
4) The difficulties likely to be encountered in the
management of a class action.

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(e) Public Policy Considerations: Labor organizations are intended
to protect employees from the potential for employer abuse of
power, but when the parent union conspires with employers, a
local union is powerless to protect itself from abuses originating
from multiple directions. Current union members are often
afraid to assert their rights out of fear of direct or indirect
retaliation. Former union members know the reputation of large
labor organizations as violent and dangerous when challenged.
Class actions provide the class members who are not named in
the complaint with a type of anonymity that allows for the
vindication of their rights at the same time as their privacy and
safety is protected.
270. There are common questions of law and fact as to the class (and each
subclass, if any) that predominate over questions affecting only individual
members, including but not limited to:
(a) Whether Defendants engaged in racketeering;
(b) Whether Defendants violated the LMRDA;
(c) Whether Defendants unlawfully conspired to engage in
racketeering;
(d) Whether Defendants breached fiduciary obligations to the Class;
and,
(e) The appropriate amount of damages, restitution, or monetary
penalties resulting from Defendants violations of law.
271. This Court should permit this action to be maintained as a class action
pursuant to Fed. R. Civ. P. 23 because:
(a) The questions of law and fact common to the class predominate
over any question affecting only individual members;
(b) A class action is superior to any other available method for the

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fair and efficient adjudication of the claims of the members of
the class;
(c) The members of the class are so numerous that it is impractical
to bring all members of the class before the Court;
(d) Plaintiff, and the other members of the class, will not be able to
obtain effective and economic legal redress unless the action is
maintained as a class action;
(e) There is a community of interest in obtaining appropriate legal
and equitable relief for the statutory violations, and in obtaining
adequate compensation for the damages and injuries for which
Defendants are responsible in an amount sufficient to adequately
compensate the members of the class for the injuries sustained;
(f) Without class certification, the prosecution of separate actions
by individual members of the class would create a risk of:
1) Inconsistent or varying adjudications with respect to
individual members of the class which would establish
incompatible standards of conduct for Defendants; and/or
2) Adjudications with respect to the individual members
which would, as a practical matter, be dispositive of the
interests of other members not parties to the adjudications,
or would substantially impair or impede their ability to
protect their interests, including but not limited to the
potential for exhausting the funds available from those
parties who are, or may be, responsible Defendants; and,
(g) Defendants have acted or refused to act on grounds generally
applicable to the class, thereby making final injunctive relief
appropriate with respect to the class as a whole.
272. Plaintiffs contemplate the eventual issuance of notice to the proposed

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members of the class that would set forth the subject and nature of the instant
action. The Defendants own business records may be utilized for assistance in the
preparation and issuance of the contemplated notices. To the extent that any
further notices may be required, Plaintiff would contemplate the use of additional
mailings.

VI. CLAI MS FOR RELI EF

FI RST CLAI M FOR RELI EF
(Violation of 18 U.S.C. 1962(c) of the Racketeer I nfluenced and Corrupt
Organizations Act [18 U.S.C. 1961-68])
By Plaintiffs against All Defendants
273. Plaintiffs re-allege, and incorporate by reference, each and every
paragraph herein.
274. Defendants are each a person as that term is defined by 18 U.S.C.
section 1961(3).
275. Local 501 constitutes an enterprise as that term is defined by 18 U.S.C.
1961(4) (hereinafter known as the Local 501 ENTERPRISE).
276. The LOCAL 501 ENTERPRISE is engaged in, and its activities affect,
interstate and foreign commerce.
277. The DEFENDANTS are, and at all relevant times were, associated
with the LOCAL 501 ENTERPRISE.
278. As described herein, the DEFENDANTS, beginning at least as early as
2005, and continuing to the present, knowingly and willfully set into motion an
over-arching scheme to defraud the LOCAL 501 ENTERPRISE out of revenues,
cost savings, and membership. The primary goal in all instances was the unlawful
enrichment of the DEFENDANTS through activities of the LOCAL 501
ENTERPRISE. Numerous kickback schemes enabled employers to avoid

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contractual obligations while providing bribes to Defendants. To accomplish the
over-arching goal of fraudulent and unlawful enrichment, the DEFENDANTS
engaged in and/or authorized a variety of unlawful activities, including the use of
threats of economic harm and violence to seize control of Local 501 and prevent
discovery of the many asset diversion and kickback schemes enriching the
leadership of the IUOE.
279. Rights guaranteed under the LMRDA are protectable property interests
held by Plaintiffs and other Class members. Plaintiffs and Class members rights
under the LMRDA are extortable in violation of the Hobbs Act.
280. Assets intended to benefit Plaintiffs and Class members when
deposited into trust account, including the Health & Welfare Fund and others,
represent tangible assets subject to conversion in violation of the Hobbs Act.
281. Plaintiff and Class members were and are aware of ties between the
leadership of IUOE and organized crime syndicates in New York and New J ersey.
As a result of that awareness, threats of economic and physical harm directed at the
Plaintiffs and other Class members were viewed as highly credible and elicited
substantial fear and concern amongst Plaintiffs and other Class members.
282. Beginning at least as early as 2005 and continuing to the present, the
DEFENDANTS, in furtherance of and for the purpose of executing the schemes
and artifices to defraud and divert Local 501 resources described herein, on
numerous occasions engaged in the extortion of rights guaranteed to Plaintiffs and
other Class members under the LMRDA and other laws. Each such extortionate
activity in connection with the described schemes and artifices to defraud and
divert Local 501 resources constitutes a distinct violation of the Hobbs Act, 18
U.S.C. 1951, and further constitutes racketeering activity as that term is defined
in 18 U.S.C. 1961(1)(b). The unlawful extortion of property and rights secured
under the LMRDA and other laws include, but is not limited to, the following acts
whereby the DEFENDANTS:

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(a) Obtained the voting rights of Plaintiffs and other Class members
by utilizing threats of economic and physical harm to control the
winners of elections at Local 501;
(b) Obtained assets belonging rightfully to Plaintiffs and other Class
members by utilizing threats of economic and physical harm to
control Local 501s ability to investigate asset diversions.
and artifices to defraud described herein, on numerous occasions used and caused
to be used the United States Mails and other commercial interstate carriers by both
placing and causing to be placed letters and other mailable matter in the authorized
depositories of such carriers and receiving and causing to be received letters and
other matter from such carriers. Each such use of the United States mails and other
carriers in connection with the described schemes and artifices to defraud
constitutes a separate and distinct violation of 18 U.S.C. 1341, relating to mail
fraud, and further constitutes racketeering activity as that term is defined in 18
U.S.C. 1961(1)(b). The unlawful use of the mails includes, but is not limited to,
the following:
(a) Fraudulent mailing from IUOE indicating that Local 501 had
been placed under monitorship, by the International when no
such status existed under the IUOE Constitution;
(b) Fraudulent charges of malfeasance targeted at Finn Pette and
Dan Himmelberg for the purpose of interfering with their ability
to run for officer positions at Local 501.
284. By issuing threats of murder, as described above, Defendants engaged
in racketeering activity as defined by 18 U.S.C. 1961(1)(A).

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and artifices to defraud described herein, on numerous occasions used and caused
to be used wire communications in interstate and foreign commerce by both
making and causing to be made wire communications. Each such use of a wire
communication in connection with the described schemes and artifices to defraud
constitutes a separate and distinct violation of 18 U.S.C. 1343, relating to wire
fraud, and further constitutes racketeering activity as that term is defined in 18
U.S.C. 1961(1)(B). The unlawful use of wire communications includes, but is
not limited to, the following:
(a) Calls from Giblin to Bob Fox, threatening the life of
McLaughlin, Pette and Himmelberg, in violation of 18 U.S.C.
1961(1)(A), if they did not stop investigating Lundy;
(b) Calls from Giblin to McLaughlin, demanding his resignation;
(c) Threats, communicated from Giblin through IUOE counsel to
McLaughlin and Local 501 counsel, stating the Himmelberg,
who had Parkinsons disease, would be fired if Pette was not
terminated;
(d) Acceptance via wire, on occasions too numerous to identify
herein, and at times known exclusively by Defendants, of
fraudulently obtained kickback payments from ABM and Abel.
and artifices to defraud described herein, on numerous occasions knowingly
engaged in and caused to occur monetary transactions in criminally derived
property with value in excess of $10,000. The transactions were accomplished by
depositing, withdrawing or transferring funds by, through, or to a financial
institution, as such an institution is defined by 18 U.S.C. 1956. Funds used in
such transactions were derived from offenses listed in 18 U.S.C. 1961(1),
including, but not limited to, funds derived from mail fraud, in violation 18 U.S.C.

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1341, and wire fraud, in violation of 18 U.S.C. 1343. Each such monetary
transaction in connection with the described schemes and artifices to defraud
constitutes a separate and distinct violation of 18 U.S.C. 1957, relating to
unlawful monetary transactions and money laundering, and further constitutes
racketeering activity as that term is defined in 18 U.S.C. 1961(1)(b). The
unlawful monetary transactions include, but are not limited to, the following:
(a) Acceptance of payments by Giblin and his co-conspirators at
IUOE from ABM, at times known exclusively to Defendants;
(b) Acceptance of payments by Giblin and his co-conspirators at
IUOE from Able, at times known exclusively to Defendants;
(c) Deposits by Lundy, at times known exclusively to him, of
monies embezzled from the J AC fund, including monies
obtained via the issuance of sham BOMA credentials to
members at other local unions.
287. Beginning as least as early as 2005, and continuing to the present, the
and artifices to defraud described herein, on numerous occasions knowingly
traveled in interstate commerce and used facilities of interstate commerce
(including, but not limited to, the mails) with the intent to promote, manage,
establish, carry on, or facilitate the promotion, management, establishment or
carrying on of unlawful activities (including violations of 18 U.S.C. 1957), and
thereafter performed or attempted to perform such violations. Each such
interaction with facilities of interstate commerce in connection with the described
schemes and artifices to defraud constitutes a separate and distinct violation of 18
U.S.C. section 1952 (the Travel Act), relating to travel in interstate commerce
with intent to facilitate certain unlawful activities, and further constitutes
racketeering activity as that term is defined in 18 U.S.C. 1961(1)(B). These
violations included habitual interstate travel by the DEFENDANTS to and from

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Local 501 for the purpose of delivering threats to ensure that schemes for
fraudulent profiteering could continue unabated.
288. The DEFENDANTS repeated violations of 18 U.S.C. 1341, 1343,
1951, 1952 and 1957 extended over a period of years and involved distinct and
independent criminal acts. Those criminal acts were neither isolated or sporadic
events, but involved the regular and repeated violation as a way of doing business
and to accomplish the DEFENDANTS desired ends in the course of the continuing
business of the LOCAL 501 ENTERPRISE. These predicate acts were related to
each other by virtue of (a) common participants, (b) similarly situated victims, (c)
common methods of commission through the habitual dissemination of fraudulent
and misleading information, and (d) the common purpose and common result
defrauding and looting the LOCAL 501 ENTERPRISE, all while enriching the
DEFENDANTS. As such, this conduct constitutes a pattern of racketeering
activity within the meaning of 18 U.S.C. 1961(5).
289. The fraudulent, unlawful and improper activities of the
DEFENDANTS threatens to continue. Based upon the past pattern of activity,
other Local Unions either have or will likely be defrauded by the DEFENDANTS.
Based upon the past pattern of activity, the DEFENDANTS will likely continue to
defraud Local Unions like Local 501. Furthermore, the DEFENDANTS are able,
based upon their managerial and controlling positions, to replace management in
Local Unions, which could thereafter be defrauded and looted without consequence
in a manner similar to the schemes and artifices outlined herein.
290. The DEFENDANTS all violated or aided violation of 18 U.S.C.
1962(c) by directly or indirectly conducting or participating in the conduct of the
affairs of the LOCAL 501 ENTERPRISE through a pattern of racketeering activity.
291. The DEFENDANTS violation of 18 U.S.C. 1962(c) caused the
Plaintiffs and the Class to suffer direct injury in amounts as may be shown
according to proof at time of trial.

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SECOND CLAI M FOR RELI EF
(Violation of 18 U.S.C. 1962(d) of the Racketeer I nfluenced and Corrupt
paragraph herein.
293. Defendants are each a person as that term is defined by 18 U.S.C.
section 1961(3).
295. The LOCAL 501 ENTERPRISE is engaged in, and its activities affect,
296. From at least 1994 and continuing through to the present, Defendants,
being persons employed by or associated with the LOCAL 501 ENTERPRISE at
all relevant times herein, unlawfully and willfully combined, conspired,
confederated and agreed each with the other to violate 18 U.S.C. 1962(c), that is,
to conduct and participate, directly and indirectly, in the conduct of the affairs of
the LOCAL 501 ENTERPRISE through a pattern of racketeering activity, all in
violation of 18 U.S.C. 1962(d). The times and locations and forms of such
agreements constitute information uniquely within the control of the
DEFENDANTS.
297. As part of this conspiracy, the DEFENDANTS each personally plotted,
conspired and agreed to commit two or more fraudulent and illegal racketeering
acts and thereby conducted and agreed to conduct the affairs of the LOCAL 501
ENTERPRISE through the pattern of racketeering activity in violation of 18 U.S.C.
1962(c) described generally herein and specifically in the First Claim for Relief.

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298. In furtherance of the conspiracy and to effect the objects thereof, the
DEFENDANTS committed and caused to be committed a series of overt acts,
including, but not limited to, the following:
(a) Habitual interstate travels by the Defendants to and from Local
501, for the purpose of delivering threats to Plaintiffs and
ensuring that Defendants asset diversion and kickback schemes
continued unabated and unchallenged;
(b) Obtained the voting rights of Plaintiffs and other Class members
(c) Obtained assets belonging rightfully to Plaintiffs and other Class
control Local 501s ability to investigate asset diversions;
(d) Fraudulent mailing from the IUOE indicating that Local 501 had
been placed under monitorship, when no such status existed
under the IUOE Constitution;
(e) Fraudulent charges of malfeasance targeted at Finn Pette and
(f) Calls from Giblin to Bob Fox, threatening the lives of Mssrs.
McLaughlin, Pette and Himmelberg if they did not stop
investigating Lundy;
(g) Calls from Giblin to McLaughlin, threatening economic harm if
investigation into Lundy did not cease and failing this, calling
and demanding his resignation;
(h) Threats, communicated from Giblin through IUOE general
counsel Griffin to McLaughlin and Local 501 counsel, stating

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the Himmelberg, who had Parkinsons disease, would be fired if
Pette was not terminated;
(i) Acceptance via wire, on occasions too numerous to identify
(j) Numerous other fraudulent monetary transactions on amounts
exceeding $10,000 to accounts and at times known exclusively
to Defendants, but believed by Plaintiffs to consist of a
widespread and regular pattern of unlawful financial transactions
conducted, in part, to weaken Local 501 so as to facilitate
Defendants takeover scheme;
(k) Calls to McLaughlin demanding Pette cease all efforts to
investigate double breasting issues involving Able and ABM
and failing this, eventually demanding termination of Pette; and,
(l) Upon information and belief, similar violations constituting
predicate acts were perpetrated upon other local union chapters
around the country.
299. The Defendants violation of 18 U.S.C. 1962(d) caused the Plaintiffs
and the Class to suffer direct injury in amounts as may be shown according to proof
at time of trial.

THI RD CLAI M FOR RELI EF
(Violations of 18 U.S.C. 1962(b) of the Racketeer I nfluenced and Corrupt
paragraph herein.

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301. Each and every Defendant named herein is a person as that term is
defined by 18 U.S.C. section 1961(3).
303. The Local 501 ENTERPRISE is engaged in, and its activities affect,
304. Rights guaranteed under the LMRDA are protectable property interests
held by Plaintiffs and other Class members. Plaintiffs and Class members rights
under the LMRDA are extortable in violation of the Hobbs Act.
305. Assets intended to benefit Plaintiffs and Class members when
deposited into trust account, including the Health & Welfare Fund and others,
represent tangible assets subject to conversion in violation of the Hobbs Act.
306. Plaintiff and Class members were and are aware of ties between
leadership of IUOE and organized crime syndicates in New York and New J ersey.
As a result of that awareness, threats of economic and physical harm directed at
Plaintiffs and other Class members were viewed as highly credible and elicited
substantial fear and concern amongst Plaintiffs and other Class members.
and artifices to defraud and divert Local 501 resources described herein, on
numerous occasions engaged in the extortion of rights guaranteed to Plaintiffs and
other Class members under the LMRDA and other laws. Each such extortionate
activity in connection with the described schemes and artifices to defraud and
divert Local 501 resources constitutes a distinct violation of the Hobbs Act, 18
U.S.C. 1951, and further constitutes racketeering activity as that term is defined
in 18 U.S.C. 1961(1)(b). The unlawful extortion of property and rights secured
under the LMRDA and other laws include, but is not limited to, the following acts
by the DEFENDANTS:

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(a) Obtained the voting rights of Plaintiffs and other Class members
(b) Obtained assets belonging rightfully to Plaintiffs and other Class
(c) Obstructed internal investigations into the local 501 various
funds including the joint apprenticeship training program to the
financial detriment of local 501 and to the financial benefit of
Able and ABM.
308. Beginning at least as early as 2007, and continuing to the present, the
Defendants, in furtherance of and for the purpose of executing the schemes and
artifices to defraud and seize control of Local Unions, including the Local 501
ENTERPRISE, on numerous occasions used and caused to be used mail
depositories of the United States Mails and other commercial interstate carriers by
both placing and causing to be placed letters and other mailable matter in the
authorized depositories of such carriers and receiving and causing to be received
letters and other matter from such carriers. Each such use of the United States
Mails and other carriers in connection with the described schemes and artifices to
defraud constitutes a separate and distinct violation of 18 U.S.C. 1341, relating to
mail fraud, and further constitutes racketeering activity as that term is defined in 18
U.S.C. 1961(1)(b). The unlawful use of the mails includes, but is not limited to,
the following:
(a) Fraudulent mailing from IUOE indicating that Local 501 had

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(b) Fraudulent charges of malfeasance targeted at Finn Pette and
309. Beginning at least as early as 2007, and continuing to the present, the
ENTERPRISE, on numerous occasions used and caused to be used wire
communications in interstate and foreign commerce by both making and causing to
be made wire communications. Each such use of a wire communication in
connection with the described schemes and artifices to defraud constitutes a
separate and distinct violation of 18 U.S.C. 1343, relating to wire fraud, and
further constitutes racketeering activity as that term is defined in 18 U.S.C.
1961(1)(b). The unlawful use of wire communications includes, but is not limited
to, the following:
(a) Calls from Giblin to Bob Fox, threatening the life of
McLaughlin, Pette and Himmelberg, in violation of 18 U.S.C.
1961(1)(A), if they did not stop investigating Lundy;
(b) Calls from Giblin to McLaughlin, demanding his resignation;
(c) Threats, communicated from Giblin through IUOE counsel to
terminated;
(d) Acceptance via wire, on occasions too numerous to identify

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ENTERPRISE, on numerous occasions knowingly engaged in and caused to occur
monetary transactions in criminally derived property with value in excess of
$10,000. The transactions were accomplished by depositing, withdrawing or
transferring funds by, through, or to a financial institution, as such an institution is
defined by 18 U.S.C. 1956. Funds used in such transactions were derived from
offenses listed in 18 U.S.C. 1961(1), including, but not limited to, funds derived
from mail fraud, in violation 18 U.S.C. 1341, and wire fraud, in violation of 18
U.S.C. 1343. Each such monetary transaction in connection with the described
schemes and artifices to defraud constitutes a separate and distinct violation of 18
U.S.C. 1957, relating to unlawful monetary transactions and money laundering,
and further constitutes racketeering activity as that term is defined in 18 U.S.C.
1961(1)(b). The unlawful monetary transactions include, but are not limited to, the
following:
(a) Acceptance of payments by Giblin and his co-conspirators at
IUOE from ABM, at times known exclusively to Defendants;
(b) Acceptance of payments by Giblin and his co-conspirators at
IUOE from Able, at times known exclusively to Defendants;
(c) Deposits by Lundy, at times known exclusively to him, of
monies embezzled from the J AC fund, including monies
obtained via the issuance of sham BOMA credentials to
members at other local unions.
311. Beginning as least as early as 1997, and continuing to the present, the
ENTERPRISE, on numerous occasions knowingly traveled in interstate commerce
and used facilities of interstate commerce (including, but not limited to, the mails)
with the intent to promote, manage, establish, carry on, or facilitate the promotion,
management, establishment or carrying on of unlawful activities (including

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violations of 18 U.S.C. 1957), and thereafter performed or attempted to perform
such violations. Each such interaction with facilities of interstate commerce in
connection with the described schemes and artifices to defraud constitutes a
separate and distinct violation of 18 U.S.C. 1952 (the Travel Act), relating to
travel in interstate commerce with intent to facilitate certain unlawful activities, and
further constitutes racketeering activity as that term is defined in 18 U.S.C.
1961(1)(b). These violations included habitual interstate travels by the Defendants
to and from Local 501, for the purpose of delivering threats to Plaintiffs and
ensuring that Defendants asset diversion and kickback schemes continued unabated
and unchallenged
312. The DEFENDANTS repeated violations of 18 U.S.C. 1341, 1343,
1951, 1952 and 1957 extended over a period of at least one year and involved
distinct and independent criminal acts. Those criminal acts were neither isolated or
sporadic events, but involved the regular and repeated violation as a way of doing
business and to accomplish the Defendants desired ends in the course of pursuing
their unlawful scheme to seize control of Local Unions, including the Local 501
ENTERPRISE. These predicate acts were related to each other by virtue of (a)
common participants, (b) similarly situated victims, (c) common methods of
commission through the habitual dissemination of fraudulent and misleading
information and the dissemination of threats of physical and economic harm to
Plaintiffs and other Class members, and (d) the common purpose and common
result of unlawfully maintaining control over Local 501, all while enriching the
Defendants at the expense of Local 501 members. As such, this conduct constitutes
a pattern of racketeering activity within the meaning of 18 U.S.C. 1961(5).
313. The fraudulent, unlawful and improper activities of the Defendants
threaten to continue. Based upon the past pattern of activity, other existing Local
Unions either have or will likely be seized on false pretexts by the Defendants.
Based upon the past pattern of activity, the Defendants will likely continue to

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defraud and deprive members of their membership rights and assets. Furthermore,
the Defendants are able to implement the same unlawful schemes in other local
unions if not stopped here and now.
314. The Defendants all violated or aided in violation of 18 U.S.C.
1962(b) by acquiring, directly or indirectly, control of the Local 501 ENTERPRISE
through a pattern of racketeering activity.
315. Furthermore, Plaintiffs have learned of DEFENDANTS plans to
merge Local 501 into another California Local Union (IUOE Local 39) as a
culmination of a long series of predicate acts all constituting RICO violations on
the part of Defendants. The Defendants hope that through this transaction, they
will cement their control over Local 501 and, through obfuscation and changed
leadership, shield themselves from liability for the wide ranging fraudulent and
illegal activities undertaken by Defendants, as set forth herein.
316. The Defendants violation of 18 U.S.C. 1962(b) caused the Plaintiffs
at time of trial.

FOURTH CLAI M FOR RELI EF
(Violations of 18 U.S.C. 1962(d) of the Racketeer I nfluenced and Corrupt
paragraph herein.
318. Each and every Defendant named herein is a person as that term is
defined by 18 U.S.C. 1961(3).

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320. The Local 501 ENTERPRISE is engaged in, and its activities affect,
321. From at least 1994 and continuing through to the present, Defendants
unlawfully and willfully combined, conspired, confederated and agreed each with
the other to violate 18 U.S.C. 1962(b), that is, to acquire, directly or indirectly,
control of the Local 501 ENTERPRISE through a pattern of racketeering activity,
all in violation of 18 U.S.C. 1962(d). The times and locations and forms of such
agreements constitute information uniquely within the control of the Defendants.
322. As part of this conspiracy, the Defendants each personally plotted,
conspired and agreed to commit two or more fraudulent and illegal racketeering
acts and thereby acquired and agreed to acquire, directly or indirectly, control of
the Local 501 ENTERPRISE through a pattern of racketeering activity in violation
of 18 U.S.C. 1962(b) described generally herein and specifically in the Third
Claim for Relief.
323. In furtherance of the conspiracy and to effect the objects thereof, the
Defendants committed and caused to be committed a series of overt acts, including,
but not limited to, the following:
(a) Habitual interstate travels by the Defendants to and from Local
501, for the purpose of delivering threats to Plaintiffs and
ensuring that Defendants asset diversion and kickback schemes
continued unabated and unchallenged;
(b) Obtained the voting rights of Plaintiffs and other Class members
(c) Obtained assets belonging rightfully to Plaintiffs and other Class

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(d) Fraudulent mailing from IUOE indicating that Local 501 had
(e) Fraudulent charges of malfeasance targeted at Finn Pette and
(f) Calls from Giblin to Bob Fox, threatening the life of
McLaughlin, Pette and Himmelberg if they did not stop
investigating Lundy;
(g) Calls from Giblin to McLaughlin, demanding his resignation;
(h) Threats, communicated from Giblin through IUOE counsel to
terminated;
(i) Acceptance via wire, on occasions too numerous to identify
(j) Numerous other fraudulent monetary transactions on amounts
exceeding $10,000 to accounts and at times known exclusively
to Defendants, but believed by Plaintiffs to consist of a
widespread and regular pattern of unlawful financial transactions
conducted, in part, to weaken Local 501 so as to facilitate
Defendants takeover scheme; and,
(k) Upon information and belief, similar violations constituting
predicate acts were perpetrated upon other local union chapters
around the country.

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324. The Defendants violation of 18 U.S.C. 1962(d) caused the Plaintiffs
at time of trial.

FI FTH CLAI M FOR RELI EF
(Violation of Bill of Rights Secured by Labor Management Disclosure Act, 29
U.S.C. 501)
By Plaintiffs against Specific Defendants
paragraph herein.
326. This Claim for Relief is asserted against all Defendants holding any
position as a Board Member of IUOE, a Trustee of IOUE, or any other union
official, including any officers, named herein as a Defendant.
327. J urisdiction is conferred on this Court pursuant to 29 U.S.C. 412.
328. Violations of the Labor Management Disclosure Act, Title I (Bill of
Rights), occurred within the Central District of California where Local 501 is
headquartered. As such, venue is proper in this District pursuant to 29 U.S.C.
412.
329. Violations of the Labor Management Disclosure Act, Title IV
(Elections), occurred within the Central District of California where Local 501 is
headquartered. As such, venue is proper in this District pursuant to 29 U.S.C.
412. However, Plaintiffs do not assert Title IV violations, referring instead to the
related action filed by the Department of Labor.
330. Plaintiffs are members of the International Union of Operating
Engineers, in the Local 501 Chapter of that labor union.
331. Defendant IUOE is a labor organization as defined in 29 U.S.C.
402(i).

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332. Defendants, described above, are officials of IUOE or agents of IUOE
or both.
333. Section 411 of the LMRDA, 29 U.S.C. 411, provides in part:
(a)(1) Equal rights
Every member of a labor organization shall have equal rights and
privileges within such organization to nominate candidates, to vote in
elections or referendums of the labor organization, to attend
membership meetings, and to participate in the deliberations and
voting upon the business of such meetings, subject to reasonable rules
and regulations in such organization's constitution and bylaws.
(2) Freedom of speech and assembly
Every member of any labor organization shall have the right to meet
and assemble freely with other members; and to express any views,
arguments, or opinions; and to express at meetings of the labor
organization his views, upon candidates in an election of the labor
organization or upon any business properly before the meeting, subject
to the organization's established and reasonable rules pertaining to the
conduct of meetings: Provided, That nothing herein shall be construed
to impair the right of a labor organization to adopt and enforce
reasonable rules as to the responsibility of every member toward the
organization as an institution and to his refraining from conduct that
would interfere with its performance of its legal or contractual
obligations.
29 U.S.C. 411(a)(1) and (2). Defendants, through their schemes to usurp control
of Local 501 described above, deprived Plaintiffs of their right to honest, open, fair
and free elections to determine the leadership of Local 501.
334. Defendants denied union members in good standing, including
Plaintiffs and the Class, the right to be candidates for and to hold union office, by
imposing unreasonable meeting attendance qualifications, in violation of section
401(e) of the Act, 29 U.S.C.A. 481(e).
335. Defendants denied union members in good standing, including
Plaintiffs and the Class, a reasonable opportunity to nominate candidates by
imposing unreasonable qualifications on candidacy, in violation of section 401(e)
of the Act, 29 U.S.C.A. 481(e).
336. As a result of threats of physical and economic violence, demonstrated
as credible through the forced terminations of Local 501 employee-members and

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the forced resignations of duly-elected Local 501 officers (described more fully
above), Plaintiffs reasonably concluded that internal procedures were futile and that
IUOE and its leadership would not permit a democratic process to proceed in order
to protect their vested interests in receiving tens of millions of dollars in unlawful
kickback payments and other personal favors from ABM and Able.
337. The Department of Labor has determined that Local 501s last election
process violated members rights under the LMRDA.
338. The violations of the LMRDA by the identified Defendants are current
and ongoing in nature.
339. Plaintiffs are suing exclusively under Title 1 of the LMRDA, which
provides for a private right of action.
340. Plaintiffs seek equitable orders restraining: (1) IUOE and its leadership
from interfering in the operation of Local 501; (2) precluding IUOE from merging
Local 501 into any other local union chapter to eliminate members recourse
against IUOE and Local 501, and; (3) requiring the immediate institution of a valid
leadership election. Plaintiffs also seek a judgment directing the conduct of a new
election under the supervision of the Secretary of Labor. Plaintiffs also request
punitive damages for Defendants malicious violations of their LMRDA rights.

SI XTH CLAI M FOR RELI EF
BREACHES OF FI DUCI ARY DUTI ES ARI SI NG UNDER ERI SA OR
COMMON LAW
By Plaintiffs Against Specific Defendants
paragraph herein.
342. ERISA 502(a)(2), 29 U.S.C.A. 1132(a)(2), authorizes a plan
participant or beneficiary to bring a civil action for appropriate relief under ERISA
409, 29 U.S.C.A. 1109. Section 409 requires any person who is a fiduciary

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who breaches any of the duties imposed upon fiduciaries to make good to
such plan any losses to the plan Section 409 also authorizes such other
equitable or remedial relief as the court may deem appropriate
343. Plaintiffs and Class Members are or were at relevant times participants
and/or beneficiaries in the ERISA-governed plans alleged herein and associated
with Local 12, including, but not limited to, the General Pension Fund, the Health
& Welfare Fund, and the Operating Engineers Training Trusts, among others.
344. Defendants identified herein as Administrators and/or Trustees and/or
IUOE Executives and/or Local Executives have assumed fiduciary obligations to
Plaintiffs and Class Members.
345. According to the terms of the plans identified, participants such as the
Plaintiffs have a right to periodically direct the plans, by and through the plans
delegated administrators and trustees, as to how the participants want his or her
monies directed.
346. Plaintiffs are not requires to exhaust administrative remedies
pertaining to breaches of fiduciary duty claims arising under ERISA.
347. As a direct result of the activities alleged herein, the plans have lost
monies, or engaged in activities that a prudent investor would not engage in and
suffered losses as a result, in amounts not presently known with precision but
exceeding $25 million.
348. Plaintiffs request equitable and declaratory relief, including order
requiring Defendants or their bonding agents or insurers to make whole the
ERISA-governed plans misused by Defendants.

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SEVENTH CLAI M FOR RELI EF
AI DI NG AND ABETTI NG
By Plaintiffs Against All Defendants
paragraph herein.
350. As described above, Defendants engaged in a pattern of oppression
intended to restrict Local 501s ability to discover or contest numerous asset
diversion schemes put in place by Defendants to enrich themselves at the expense
of Local 501 and its members, including Plaintiffs.
351. As described above, Defendants knew that other Defendants were
engaged in unlawful conduct intended to restrict Local 501s ability to discover or
contest numerous asset diversion schemes put in place by various Defendants for
self-enrichment at the expense of Local 501 and its members, including Plaintiffs.
352. As described above, Defendants knew that threats of violence were
issued against Plaintiffs and others.
353. As described above, Defendants knew that assets were diverted from
or denied to Local 501.
354. As described above, Defendants knew that threats of physical and
economic harm directed at Plaintiffs and others were likely to deprive Local 501 of
democratically elected leadership. Despite this knowledge, Defendants persisted in
their conduct, resulting in the removal of democratically elected officers of Local
501 and the imposition of officers completely controlled by IUOE.
355. As described above, all Defendants cooperated with the unlawful
activities described herein or failed to warn appropriate persons and governmental
officials of the unlawful conduct used to divert assets and obtain total control of
Local 501.
356. 217. As a direct and proximate result of Defendants aiding and
abetting one another, the Plaintiffs and the Class members have been damaged in

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an amount to be proven at trial. Plaintiffs and the Class Members are also entitled
to recover punitive damages in an amount sufficient to punish Defendants and to
deter future conduct of this type.

EI GHTH CLAI M FOR RELI EF
VI OLATI ON OF CALI FORNI A BUSI NESS AND PROFESSI ONS CODE
17200, ET SEA.
By Plaintiffs Against Defendants CVS CAREMARK CORPORATI ON,
TRI VANTAGE PHARMACY STRATEGI ES, LLC, and TRUVEN HEALTH
ANALYTI CS, I NC.
paragraph herein.
358. Defendants, and each of them, are persons as defined under Business
& Professions Code 17201.
359. Defendants conduct, as alleged herein, has been, and continues to be,
unfair, unlawful, and harmful to Plaintiffs, other Class members, and to the general
public. Plaintiffs seeks to enforce important rights affecting the public interest
within the meaning of Code of Civil Procedure 1021.5.
360. Defendants activities, as alleged herein, are violations of California
law, and constitute unlawful business acts and practices in violation of California
Business & Professions Code 17200, et seq.
361. A violation of California Business & Professions Code 17200, et seq.
may be predicated on the violation of any state or federal law. All of the acts
described herein as violations of, among other things, the California Labor Code,
are unlawful and in violation of public policy; and in addition are immoral,
unethical, oppressive, fraudulent and unscrupulous, and thereby constitute unfair,
unlawful and/or fraudulent business practices in violation of California Business
and Professions Code 17200, et seq.

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362. Defendants Caremark, Truven and Trivantage engaged in false, unfair,
and misleading business practices, or received ill-gotten gains therefrom, as a result
of acts and omissions that include, but are not limited to:
(a) Failing to disclose that illegal bid rigging was used to secure the
Caremark PBM contract;
(b) Falsely asserting a unilateral right to change contractual billing
rates;
(c) Collecting payments from health & welfare funds for
unauthorized prescription charges; and,
(d) Collecting commissions derived from unlawful and
unauthorized charges.
363. By and through their unfair, unlawful and/or fraudulent business
practices described herein, the Defendants, have obtained valuable property, money
and services from Plaintiffs, and all persons similarly situated, and have deprived
Plaintiffs, and all persons similarly situated, of valuable rights and benefits
guaranteed by law, all to their detriment.
364. Plaintiffs and the other Class members suffered monetary injury as a
direct result of Defendants wrongful conduct.
365. The Plaintiffs, individually, and on behalf of members of the putative
Class, are entitled to, and do, seek such relief as may be necessary to disgorge
money and/or property which the Defendants have wrongfully acquired, or of
which Plaintiffs have been deprived, by means of the above-described unfair,
unlawful and/or fraudulent business practices. Plaintiffs, and the members of the
putative Class, are not obligated to establish individual knowledge of the wrongful
practices of Defendants in order to recover restitution.
class, are further entitled to and do seek a declaration that the above described
business practices are unfair, unlawful and/or fraudulent, and injunctive relief

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restraining the Defendants, and each of them, from engaging in any of the above-
described unfair, unlawful and/or fraudulent business practices in the future.
class, have no plain, speedy, and/or adequate remedy at law to redress the injuries
which they have suffered as a consequence of the Defendants unfair, unlawful
and/or fraudulent business practices. As a result of the unfair, unlawful and/or
fraudulent business practices described above, the Plaintiffs, individually, and on
behalf of members of the putative Class, have suffered and will continue to suffer
irreparable harm unless the Defendants, and each of them, are restrained from
continuing to engage in said unfair, unlawful and/or fraudulent business practices.
368. The Plaintiffs also allege that if Defendants are not enjoined from the
conduct set forth herein above, they will continue to avoid paying the appropriate
taxes, insurance and other withholdings.
369. Pursuant to California Business & Professions Code 17200, et seq.,
Plaintiffs and putative Class members are entitled to restitution of the wages
withheld and retained by Defendants during a period that commences four years
prior to the filing of this complaint; a permanent injunction requiring Defendants to
pay all outstanding wages due to Plaintiffs and Class members; an award of
attorneys fees pursuant to California Code of Civil Procedure 1021.5 and other
applicable laws; and an award of costs.

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PRAYER FOR RELI EF
Plaintiffs, individually, and on behalf of all others similarly situated, pray for
relief and judgment against Defendants, jointly and severally, as follows:

Class Certification
1. That this action be certified as a class action;
2. That Plaintiffs be appointed as the representative of the Class; and
3. That counsel for Plaintiffs be appointed as Class Counsel.

As to the First Claim for Relief
4. For compensatory and general damages, as shown according to proof;
5. For treble damages;
6. For the appointment of a Receiver to operate Defendant IUOE in a
lawful manner, to assure the cessation of its illegal acts and to assure the proper
handling of income and payments;
7. For an accounting;
8. For temporary and permanent injunctive relief;
9. For disgorgement of monies improperly obtained;
10. For prejudgment interest according to law;
11. For attorney's fees;
12. For costs of suit; and,
13. For such other and further relief as this Court may deem proper.

As to the Second Claim for Relief

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As to the Third Claim for Relief

As to the Fourth Claim for Relief

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As to the Fifth Claim for Relief

As to the Sixth Claim for Relief
49. For declaratory relief;
50. For appropriate make whole equitable relief authorized pursuant to
ERISA;
51. For attorneys fees and costs pursuant to ERISA;

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As to the Seventh Claim for Relief
54. For exemplary damages;

As to the Eighth Claim for Relief
63. That the Court declare, adjudge and decree that Defendants violated
California Business and Professions Code 17200, et seq. by failing to disclose
fraund and deceit, by falsely asserting unilateral contractual rights, by receiving
commissions derived from unlawful transactions, and by failing to reimburse Class
Members;
64. For restitution to Plaintiffs and all class members and prejudgment
interest from the day such amounts were due and payable;
65. For the appointment of a receiver to receive, manage and distribute any
and all funds disgorged from Defendants and determined to have been wrongfully
acquired by Defendants as a result of violations of California Business &
Professions Code 17200 et seq.;
66. For reasonable attorneys fees and costs of suit incurred herein
pursuant to California Code of Civil Procedure 1021.5;

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67. For injunctive relief to ensure compliance with this section, pursuant to
California Business & Professions Code 17200, et seq.; and,
68. For such other and further relief as the Court may deem equitable and
appropriate.

Dated: March 29, 2013 Respectfully submitted,

SPIRO MOORE LLP

By:
H. Scott Leviant


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DEMAND FOR J URY TRI AL
Plaintiffs demand a trial by jury.
Dated: March 29, 2013 Respectfully submitted,

SPIRO MOORE LLP

By:
H. Scott Leviant


EXHI BI T 1

EXHI BI T 2

EXHI BI T 3

INTERNATIONAL OPERATING ENGINEER 4
Ethics Ofcer deals with anonymous complaints
(When IUOE Ethics Ocer James R.
Zazzali appeared before the General Ex-
ecutive Board Feb. 10, 2009, the Board
authorized him to formulate procedures
to deal with the submission of anonymous
submissions re ethics matters. Following is
the complete text of Zazzalis June 9, 2009
letter to the GEB outlining the problem
and the course of action he is adopting to
deal with the matter.)
RE: Code of Ethics
Anonymous Complaints
Gentlemen:
In my capacity as the Ethics Ocer for
the IUOE, I write to you to set forth the
problems that we have encountered with
anonymous complaints led by some mem-
bers with the Ethics Ocer pursuant to the
Code of Ethics.
By way of background, the General Pres-
ident and the General Executive Board in-
dicated, when it adopted the Code of Ethics
last year, that it wished to assure members
that they can le complaints and ask ques-
tions under the Code with condence in the
integrity, independence, and condentiality
of the ethics process. Accordingly, although
we prefer signed complaints, we also have ac-
cepted anonymous complaints because there
may be valid reasons why a member seeks to
keep his name condential.
However, in this rst year of experience,
we have discovered that problems occur when
a member les a complaint anonymously.
First, when a member makes allegations
without signing the complaint, there is a sig-
nicant risk of encouraging baseless claims,
precisely because the person believes that he
or she cannot be identied. Indeed, some in-
ternational unions will not accept anonymous
complaints. Second, and more important, an-
onymity impedes both the investigation and
the ultimate recommendation by the Ethics
Ocer because he is unable to speak with the
complainant in order to obtain facts, reasons,
proofs, and answers to questions. Anonym-
ity thus works against the complainants ob-
jectives because we are unable to gather the
background and other data which might sup-
port that claim. We cannot turn to the origi-
nal source - - the member - - to obtain more
information. Tis is particularly troublesome
when there is a credibility dispute - - when
the invisible complainant makes a claim and
the union ocer denies that claim. Te union
ocer is then forced to prove a negative. It
is dicult to credit or discredit either party
if we cannot speak with the complainant. In
fact, and this is the irony, at the conclusion
of the inquiry the Ethics Ocer cannot even
inform the complainant about the results of
the investigation.
Another complication is that in some
cases it is necessary to hire an investigator
to assist in our review, particularly when the
matter is complex. Because neither the in-
vestigator nor the Ethics Ocer is able to
communicate with an anonymous complain-
ant to obtain further facts and details, the
investigator must perform additional work.
Often the investigator and I will be perform-
ing functions that the complainant should
have performed. Although the expense may
not be that signicant in a particular case, in
more complex investigations the costs could
be quite substantial. Tat is unfair to other
dues-paying members, not to mention the
union ocer.
We have to make a choice. We can de-
cide that we will not accept anonymous com-
plaints. Even though that is the practice with
some unions, as noted, I would recommend
against that approach. Rather, we should
continue to accept anonymous complaints
under certain circumstances and subject to
the following conditions.
Eective immediately, as a general 1.
rule, the member should sign the
complaint and provide contact infor-
mation.
If the member does not wish to sign 2.
the complaint, the member should
say so, giving the reasons why he or
she will not sign.
However, when the member does not 3.
sign, the complainant should identify
some means or method whereby the
Ethics Ocer can communicate with
the complainant. If the member de-
clines to state his name and address,
he at least must identify a post oce
box, other address, telephone num-
ber, and/or some third party such as
an attorney or relative, with whom
the Ethics Ocer can communicate.
In any event, the Ethics Ocer re- 4.
tains the discretion to decide what
to do with anonymous complaints
on a case-by-case basis. Te Ethics
Ocer has the right to accept or re-
ject the complaint. If he accepts the
anonymous complaint, he may give it
limited weight.
I reiterate that we discourage anonymous
complaints for the reasons discussed above,
particularly the fact that anonymous com-
plaints undercut the members claim because
they limit our ability to conduct a proper in-
quiry. However, subject to the above require-
ments, we will accept anonymous complaints
in particular circumstances.
Very truly yours,
James R. Zazzali
Ethics Ofcer
Contact info
Those wishing to con-
tact IUOE Ethics Ofcer
James R. Zazzali can do
so at the following ad-
dress and/or toll-free
phone number:
James R. Zazzali
IUOE Ethics Ofcer
One Riverfront Plaza
Box No. 782
Newark, NJ 07102
866-380-3495
EXHI BI T 4

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EXHI BI T 5

EXHI BI T 6

EXHI BI T 7

EXHI BI T 8

VINCENT J. GIBLIN
GENERAi. f'JIESTDENT
CHRISTO[>HER HANLEY

GENERAL VICI:: /f/F.SJDJ:'Nn
WILLIAM: c. WAGGO:-IER
BRIAN E. HtCKEY
GARY KROEKER
JOHN M. HAMILTON
PATRICK L. SINK
JERRY KALMAR
RUSSELL E. BURNS
}AMES T. CALLAHAN
RODGER KAMINSKA
MARK HOLLIDAY
]AMES M. SWEE:-IEY
ROBERT T. HEENAN
Fl<ilSTf:.r::S
JOHN M. HOLLIDAY III

}OHNTAHERN
MICHAEL
KUBAJ. BROWN
GLEN D. }OH:SSON
er; U.7\'SEJ.
R.iCH/>.RD GRIFFIN

Mr. Robert H. Fox
506 S. Roosevelt Ave.
Fullerton, CA 92832
Dear Sir and Brother:
7148711166
p.1
November 19, 2009
In the very near future, I will be announcing to the members of Local 501 a
number of recommendations that the local will have to undertake in how it
conducts business. The local also is being placed under monitorship by
the International for a minimum of six months to ensure the
recommendations are implemented. These moves are a result of the
audit and investigation of the local that was undertaken following receipt of
numerous complaints from Local 501 members.
As part of the moni1orship, I am instructing the local to conduct its
Executive Board meetings in executive session. The board will call into its
meetings any member, agent, employee, consultant or professional that
adds to its deliberations. Meeting in executive session will allow the board
to maximize its attention and energy on the road ahead and not the road
already traveled. All deliberations of the executive board wm be reported
at the next regular membership meetings.
This executive session requirement by definition excludes from
participation all non-board members, including retired officers, agents and
others Who have previously served the local union. Thank you for your
attention in this matter.
Fraternally,

Giblin
/Gener resident
VJG/nwp
C: Christopher Brown, Business Manager, IUOE Local 501
1125 SEVrnHENTH STREET, NW WASHINGTON, DC 200364707 2024299100 WWW.IUOE.ORG
EXHI BI T 9

EXHI BI T 10

DRA:BMR:JL
F#2002R00891
DEROSS.SUP3.IND
EASTERN DISTRICT OF NEW YORK
- - - - - - - - - - - - - - - - X
S U P E R S E D I N G
UNITED STATES OF AMERICA I N D I C T M E N T
- against - Cr. No. 03-191 (S-6) (SJ)
(T. 18, U.S.C., 371, 1341,
THOMAS P. MCGUIRE, 1962(c), 1962(d), 1963, 2,
also known as Thomas Maguire, 981(a)(1)(C) and 3551 et
THOMAS G. MCNAMARA, seq.; T. 21, U.S.C., 853;
also known as Tommy Mac, T. 26, U.S.C., 7206(1);
DANIEL J. MURPHY and T. 28, U.S.C., 2461(c);
ANTHONY QUARANTA, T. 29, U.S.C., 186(a)(1),
186(b)(1) and 186(d)(2))
Defendants.
- - - - - - - - - - - - - - - - X
THE GRAND JURY CHARGES:
At all times relevant to this superseding indictment,
unless otherwise indicated:
The International Union of Operating Engineers
1. The International Union of Operating Engineers
(the Union), with headquarters in Washington, D.C., had
approximately 400,000 members in 170 local unions throughout the
United States and Canada. The Union, which was affiliated with
the AFL-CIO, represented, among others, operating engineers who
worked as heavy equipment operators, mechanics and surveyors in
the construction industry.
2. Local Union 14-14B of the Union (Local 14") and
Locals 15, 15A, 15B, 15C, 15D of the Union (Local 15") were
constituent locals of the Union. Local 14 and Local 15
2
represented operating engineers in Manhattan, Bronx, Brooklyn,
Queens and Staten Island, New York, who performed work at various
construction sites in the New York City area (Job Sites).
3. Locals 14 and 15 each had benefit trust funds for
its members. The Local 14 funds included the Operating Engineers
Local 14 and 14B Annuity Fund, the Operating Engineers Local 14
and 14B Pension Fund and the Operating Engineers Local 14 and 14B
Welfare Fund (the Local 14 Plans). The Local 15 funds included
the Annuity Fund of the International Union of Operating
Engineers, Local Unions 15, 15A, 15B, 15C, 15D, AFL-CIO; the
Pension Fund of the International Union of Operating Engineers,
Local Unions 15, 15A, 15B, 15C, 15D, AFL-CIO; the Welfare Fund of
the International Union of Operating Engineers, Local Unions 15,
15A, 15B, 15C, 15D, AFL-CIO; and the Vacation Fund of the
International Union of Operating Engineers, Local Unions 15, 15A,
15B, 15C, 15D, AFL-CIO (the Vacation Fund of Local 15")
(collectively, the Local 15 Plans).
Local 15
4. Local 15 members elected certain officers,
including a Business Manager. Local 15 members were also
represented by Business Agents, who were appointed by the
Business Manager. Each Business Agent had responsibility for
overseeing Local 15's business in separate geographic areas of
greater New York City. Among other duties, the Business Agents
ensured contractors compliance with collective bargaining
3
agreements. Local 15 employed and paid a salary to each person
employed as a Business Manager or Business Agent.
5. Local 15 designated Maintenance Foremen to
oversee certain Job Sites as they affected Local 15 members. In
that capacity, Maintenance Foremen acted as representatives of
Local 15's members.
The Local 15 Enterprise
6. Local 15 constituted an enterprise as defined by
Title 18, United States Code, Section 1961(4) (the Local 15
Enterprise). The Local 15 Enterprise operated in the Eastern
District of New York and elsewhere.
The Defendants
7. At various times relevant to this superseding
indictment, the defendant THOMAS P. MCGUIRE, also known as
Thomas Maguire, was the Business Manager of Local 15. In that
capacity, he acted as a representative of Local 15's members.
indictment, the defendants THOMAS G. MCNAMARA, also known as
Tommy Mac, and DANIEL J. MURPHY were Business Agents, or
delegates, of Local 15. In that capacity, MCNAMARA and MURPHY
acted as representatives of Local 15's members.
indictment, the defendant ANTHONY QUARANTA was a member of Local
15. At certain Job Sites, QUARANTA was a Maintenance Foreman.
In that capacity, he acted as a representative of Local 15's
4
members.
10. The defendants participated in the operation and
management of the Local 15 Enterprise in order to, among other
things, make money illicitly through the commission of crimes,
including unlawful labor payments and mail fraud.
COUNT ONE
(Racketeering)
11. The allegations in paragraphs 1 through 10 are
realleged and incorporated as if fully set forth in this
paragraph.
12. In or about and between December 1989 and November
2002, both dates being approximate and inclusive, within the
Eastern District of New York and elsewhere, the defendants THOMAS
P. MCGUIRE, also known as Thomas Maguire, THOMAS G. MCNAMARA,
also known as Tommy Mac, and DANIEL J. MURPHY, together with
others, being persons employed by and associated with the Local
15 Enterprise, an enterprise that engaged in, and the activities
of which affected, interstate commerce, knowingly and
intentionally conducted and participated, directly and
indirectly, in the conduct of the affairs of that enterprise
through a pattern of racketeering activity, as defined in Title
18, United States Code, Sections 1961(1) and 1961(5), consisting
of the racketeering acts set forth below.
5
RACKETEERING ACT ONE
(Mail Fraud Local 15 Jobs)
13. The defendant named below committed the following
acts, any one of which alone constitutes racketeering act one.
14. In or about and between November 1998 and November
Eastern District of New York and elsewhere, the defendant DANIEL
J. MURPHY, together with others, knowingly and intentionally
devised a scheme and artifice to defraud contractors, real estate
holders and developers, and to obtain money and property, to wit:
money paid as wages and contributions to benefit plans, from them
by means of materially false and fraudulent pretenses,
representations and promises.
15. It was part of the scheme and artifice that the
defendant DANIEL J. MURPHY, together with others, would and did
submit and cause to be submitted false information regarding
hours worked to contractors, claiming that certain hours had been
worked by a member of Local 15 who had, in fact, not worked those
hours, in order fraudulently to obtain wages and contributions to
the Local 15 Plans in the name of that member.
16. For the purpose of executing the scheme and
artifice, the defendant DANIEL J. MURPHY, together with others,
did place and caused to be placed in authorized depositories for
mail matter to be delivered by the United States Postal Service
the following items of mail matter, among others, in violation of
6
Title 18, United States Code, Sections 1341 and 2:
Racketeering
Act
Approximate Date
of Mailing
Description Sender
1A May 13, 1999 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1B August 5, 1999 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1C December 30, 1999 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1D April 28, 2000 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1E September 14, 2000 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1F January 11, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1G July 6, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1H December 21, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1I April 25, 2002 Coconspirators
Vacation Check
Vacation Fund of
Local 15
1J August 7, 2002 Coconspirators
Vacation Check
Vacation Fund of
Local 15
RACKETEERING ACT TWO
(Oceana Condos Job Site)
acts, either one of which alone constitutes racketeering act two.
A. Unlawful Labor Payments
18. In or about and between April 2000 and November
Eastern District of New York, the defendant THOMAS G. MCNAMARA,
together with others, knowingly and willfully requested,
demanded, received and accepted and agreed to receive and accept
7
payments and deliveries of money and other things of value in an
amount in excess of $1,000 to representatives of employees who
were members of Local 14 and Local 15 and were then employed in
an industry affecting commerce, from employers at the Oceana
Condos Job Site and from persons who acted in the interest of
said employers of the employees, in violation of Title 29, United
States Code, Sections 186(a)(1), 186(b)(1) and 186(d)(2) and
Title 18, United States Code, Section 2.
B. Mail Fraud
Eastern District of New York and elsewhere, the defendant THOMAS
G. MCNAMARA, together with others, knowingly and intentionally
defendant THOMAS G. MCNAMARA, together with others, would and did
hours worked to a contractor, to wit: Muss Development, Inc., in
connection with the Oceana Condos Job Site, claiming that certain
hours had been worked by certain Local 14 and Local 15 members
who had, in fact, not worked those hours, in order fraudulently
8
to obtain wages and contributions to the Local 14 Plans and the
Local 15 Plans in the names of those members.
artifice, the defendant THOMAS G. MCNAMARA, together with others,
an item of mail matter, to wit: a vacation check for a
coconspirator from the Vacation Fund of Local 15, mailed on or
about November 21, 2001, in violation of Title 18, United States
Code, Sections 1341 and 2.
RACKETEERING ACT THREE
(Brooklyn General Post Office Job Site)
acts, either one of which alone constitutes racketeering act
three.
23. In or about and between July 2000 and August 2002,
both dates being approximate and inclusive, within the Eastern
District of New York, the defendant THOMAS G. MCNAMARA, together
with others, knowingly and willfully requested, demanded,
received and accepted and agreed to receive and accept payments
and deliveries of money and other things of value in an amount in
excess of $1,000 to representatives of employees who were members
of Local 14 and Local 15 and were then employed in an industry
affecting commerce, from employers at the Brooklyn General Post
9
Office Job Site and from persons who acted in the interest of
said employers of the employees, in violation of Title 29, United
B. Mail Fraud
District of New York, the defendant THOMAS G. MCNAMARA, together
with others, knowingly and intentionally devised a scheme and
artifice to defraud contractors, real estate holders and
developers, and to obtain money and property, to wit: money paid
as wages and contributions to benefit plans, from them by means
of materially false and fraudulent pretenses, representations and
promises.
hours worked to a contractor, to wit: J.A. Jones GMO LLC, in
connection with the Brooklyn General Post Office Job Site,
claiming that certain hours had been worked by certain Local 14
and Local 15 members who had, in fact, not worked those hours, in
order fraudulently to obtain wages and contributions to the Local
14 Plans and the Local 15 Plans in the names of those members.
10
Racketeering
Act
Approximate Date of
Mailing
Description Sender
3B-1 December 12, 2001 Coconspirators
Vacation Check
Vacation Fund
of Local 15
3B-2 April 3, 2002 Coconspirators
Vacation Check
Vacation Fund
of Local 15
RACKETEERING ACT FOUR
(Staten Island Yankee Stadium Job Site)
four.
28. In or about and between March 2000 and December
G. MCNAMARA, together with others, knowingly and willfully
requested, demanded, received and accepted and agreed to receive
and accept payments and deliveries of money and other things of
value in an amount in excess of $1,000 to representatives of
employees who were members of Local 14 and Local 15 and were then
employed in an industry affecting commerce, from employers at the
Staten Island Yankee Stadium Job Site and from persons who acted
in the interest of said employers of the employees, in violation
11
of Title 29, United States Code, Sections 186(a)(1), 186(b)(1)
and 186(d)(2) and Title 18, United States Code, Section 2.
B. Mail Fraud
hours worked to contractors, to wit: Interstate Industrial and
D. Gangi Contracting Corporation, in connection with the Staten
Island Yankee Stadium Job Site, claiming that certain hours had
been worked by certain Local 14 and Local 15 members who had, in
fact, not worked those hours, in order fraudulently to obtain
wages and contributions to the Local 14 Plans and the Local 15
Plans in the names of those members.
12
Racketeering
Act
Approximate Date
of Mailing
Description Sender
Vacation Check
Vacation Fund
of Local 15
4B-2 January 10, 2001 Coconspirators
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund
of Local 15
4B-4 August 7, 2001 Coconspirators
Vacation Check
Vacation Fund
of Local 15
RACKETEERING ACT FIVE
(P.S. 58 Staten Island Job Site)
five.
33. On or about and between December 4, 2000 and April
3, 2002, both dates being approximate and inclusive, within the
an industry affecting commerce, from employers at the P.S. 58
13
Staten Island Job Site and from persons who acted in the interest
of said employers of the employees, in violation of Title 29,
United States Code, Sections 186(a)(1), 186(b)(1) and 186(d)(2)
and Title 18, United States Code, Section 2.
B. Mail Fraud
hours worked to contractors, to wit: New York Concrete Corp. and
DeMatteis Construction Corp., in connection with the P.S. 58
Staten Island Job Site, claiming that certain hours had been
worked by certain Local 14 and Local 15 members who had, in fact,
not worked those hours, in order fraudulently to obtain wages and
contributions to the Local 14 Plans and Local 15 Plans in the
names of those members.
14
Racketeering
Act
Approx. Date
of Mailing
Description Sender
5B-1 January 31, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
5B-2 March 1, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund of
Local 15
5B-5 May 29, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
5B-6 July 11, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
5B-7 July 16, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund
of Local 15
RACKETEERING ACT SIX
(Unlawful Labor Payments: Company 1)
acts, either one of which alone constitutes racketeering act six.
15
38. In or about and between Spring 2001 and November
Eastern District of New York, the defendant DANIEL J. MURPHY,
being a representative of employees, who were members of Local 15
and were then employed in an industry affecting commerce,
knowingly and willfully requested, demanded, received and
accepted and agreed to receive and accept payments and deliveries
of money and other things of value in excess of $1,000 from an
employer, to wit: Company 1, the identity of which is known to
the grand jury, and from a person who acted in the interest of
said employer of the employees, in violation of Title 29, United
B. Receipt of Labor Bribes
being a labor official, knowingly and intentionally accepted
benefits from another person upon an agreement and understanding
that such benefits would influence him in respect to his acts,
decisions and duties as a labor official, in violation of New
York Penal Law Section 180.25.
16
RACKETEERING ACT SEVEN
(Unlawful Labor Payments: E.G. Clemente Contracting Corp.)
40. The defendants named below committed the following
seven.
41. In or about and between December 1989 and December
Eastern District of New York, the defendants THOMAS P. MCGUIRE,
THOMAS G. MCNAMARA and DANIEL J. MURPHY, being representatives of
employees, who were members of Local 15 and were then employed in
an industry affecting commerce, knowingly and willfully
value in excess of $1,000 from an employer, to wit: E.G.
Clemente Contracting Corp., and from a person who acted in the
interest of said employer of the employees, in violation of Title
29, United States Code, Sections 186(a)(1), 186(b)(1) and
186(d)(2) and Title 18, United States Code, Section 2.
THOMAS G. MCNAMARA and DANIEL J. MURPHY, being labor officials,
knowingly and intentionally accepted benefits from another person
17
upon an agreement and understanding that such benefits would
influence them in respect to their acts, decisions and duties as
labor officials, in violation of New York Penal Law Section
180.25.
RACKETEERING ACT EIGHT
43. The defendants named below committed the following
eight.
44. In or about and between June 1993 and December
THOMAS G. MCNAMARA and DANIEL J. MURPHY, being representatives of
value in excess of $1,000 from an employer, to wit: Company 2,
the identity of which is known to the grand jury, and from a
person who acted in the interest of said employer of the
employees, in violation of Title 29, United States Code, Sections
186(a)(1), 186(b)(1) and 186(d)(2) and Title 18, United States
Code, Section 2.
18
THOMAS G. MCNAMARA and DANIEL J. MURPHY, being labor officials,
knowingly and intentionally accepted benefits from another person
upon an agreement and understanding that such benefits would
influence them in respect to their acts, decisions and duties as
labor officials, in violation of New York Penal Law Section
180.25.
RACKETEERING ACT NINE
nine.
employer, to wit: Company 3, the identity of which is known to
19
the grand jury, and from a person who acted in the interest of
said employer of the employees, in violation of Title 29, United
being a labor official, knowingly and intentionally accepted
benefits from another person upon an agreement and understanding
that such benefits would influence him in respect to his acts,
decisions and duties as a labor official, in violation of New
York Penal Law Section 180.25.
(Title 18, United States Code, Sections 1962(c), 1963
and 3551 et seq.)
COUNT TWO
(Racketeering Conspiracy)
paragraph.
50. In or about and between December 1989 and November
Eastern District of New York and elsewhere, the defendants THOMAS
P. MCGUIRE, also known as Thomas Maguire, THOMAS G. MCNAMARA
and DANIEL J. MURPHY, together with others, being persons
20
employed by and associated with the Local 15 Enterprise, an
enterprise that engaged in, and the activities of which affected,
interstate commerce, knowingly and intentionally conspired to
violate Title 18, United States Code, Section 1962(c), that is,
to conduct and participate, directly and indirectly, in the
conduct of the affairs of that enterprise through a pattern of
racketeering activity, as defined in Title 18, United States
Code, Sections 1961(1) and 1961(5).
51. The pattern of racketeering activity through which
the above-named defendants agreed to conduct the affairs of the
enterprise consisted of acts set forth in paragraphs 13 through
48 of Count One, as Racketeering Acts 1 through 9, which are
paragraph. Each defendant agreed that a conspirator would commit
at least two of these racketeering acts in the conduct of the
affairs of the enterprise.
(Title 18, United States Code, Sections 1962(d), 1963
and 3551 et seq.)
COUNT THREE
(Mail Fraud Conspiracy Local 15 Jobs)
paragraph.
21
conspired to devise a scheme and artifice to defraud contractors,
real estate holders and developers, and to obtain money and
property, to wit: money paid as wages and contributions to
benefit plans, from them by means of materially false and
fraudulent pretenses, representations and promises, and, for the
purpose of executing such scheme and artifice, to cause mail
matter to be delivered by the United States Postal Service, in
violation of Title 18, United States Code, Section 1341.
54. It was part of the conspiracy that the defendant
DANIEL J. MURPHY, together with others, would and did submit and
cause to be submitted false information regarding hours worked to
contractors, claiming that certain hours had been worked by a
member of Local 15 who had, in fact, not worked those hours, in
15 Plans in the name of that member.
55. In furtherance of the conspiracy and to effect the
objectives thereof, within the Eastern District of New York and
elsewhere, the defendant DANIEL J. MURPHY, together with others,
committed and caused to be committed, among others, the
following:
OVERT ACTS
a. On or about May 13, 1999, the Vacation Fund of
Local 15 in New York, New York mailed a vacation check to a Local
22
15 member.
b. On or about August 5, 1999, the Vacation Fund
of Local 15 in New York, New York mailed a vacation check to a
Local 15 member.
c. On or about December 30, 1999, the Vacation
Fund of Local 15 in New York, New York mailed a vacation check to
a Local 15 member.
d. On or about April 28, 2000, the Vacation Fund
Local 15 member.
e. On or about September 14, 2000, the Vacation
a Local 15 member.
f. On or about January 11, 2001, the Vacation
a Local 15 member.
g. On or about July 6, 2001, the Vacation Fund of
Local 15 in New York, New York mailed a vacation check to a Local
15 member.
h. On or about July 12, 2001, the defendant DANIEL
J. MURPHY caused a facsimile containing information about a Local
15 member to be sent from the Union office in Flushing, New York.
i. On or about December 21, 2001, the Vacation
a Local 15 member.
23
j. On or about April 25, 2002, the Vacation Fund
Local 15 member.
k. On or about August 7, 2002, the Vacation Fund
Local 15 member.
(Title 18, United States Code, Sections 371 and 3551 et
seq.)
COUNTS FOUR THROUGH THIRTEEN
(Mail Fraud: Local 15 Member)
paragraph.
defendant DANIEL J. MURPHY, together with others, would and did
24
hours worked to contractors, claiming that certain hours had been
worked by a member of Local 15 who had, in fact, not worked those
hours, in order fraudulently to obtain wages and contributions to
the Local 15 Plans in the name of that member.
artifice, the defendant DANIEL J. MURPHY, together with others,
the following items of mail matter:
Count Approximate Date
of Mailing
Description Sender
4 May 13, 1999 Coconspirators
Vacation Check
Vacation Fund of
Local 15
5 August 5, 1999 Coconspirators
Vacation Check
Vacation Fund of
Local 15
6 December 30, 1999 Coconspirators
Vacation Check
Vacation Fund of
Local 15
7 April 28, 2000 Coconspirators
Vacation Check
Vacation Fund of
Local 15
8 September 14, 2000 Coconspirators
Vacation Check
Vacation Fund of
Local 15
9 January 11, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
10 July 6, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
Vacation Check
Vacation Fund of
Local 15
Vacation Check
Vacation Fund of
Local 15
Vacation Check
Vacation Fund of
Local 15
(Title 18, United States Code, Sections 1341, 2 and
3551 et
seq.)
25
COUNT FOURTEEN
(Unlawful Labor Payments: Oceana Condos Job Site)
paragraph.
also known as Tommy Mac, together with others, knowingly and
willfully requested, demanded, received and accepted and agreed
to receive and accept payments and deliveries of money and other
things of value in an amount in excess of $1,000 to
representatives of employees who were members of Local 14 and
Local 15 and were then employed in an industry affecting
commerce, from employers at the Oceana Condos Job Site and from
persons who acted in the interest of said employers of the
employees.
(Title 29, United States Code, Sections 186(a)(1),
186(b)(1) and 186(d)(2); Title 18, United States Code, Sections 2
and 3551 et seq.)
COUNT FIFTEEN
(Mail Fraud: Oceana Condos Job Site)
paragraph.
26
G. MCNAMARA, also known as Tommy Mac, together with others,
knowingly and intentionally devised a scheme and artifice to
defraud contractors, real estate holders and developers, and to
obtain money and property, to wit: money paid as wages and
contributions to benefit plans, from them by means of materially
false and fraudulent pretenses, representations and promises.
defendant THOMAS G. MCNAMARA, also known as Tommy Mac, together
with others, would and did submit and cause to be submitted false
information regarding hours worked to contractors, to wit: Muss
Development, Inc., in connection with the Oceana Condos Job Site,
artifice, the defendant THOMAS G. MCNAMARA, also known as Tommy
Mac, together with others, did place and caused to be placed in
authorized depositories for mail matter to be delivered by the
United States Postal Service an item of mail matter, to wit: a
coconspirators vacation check from the Vacation Fund of Local
15, on or about November 21, 2001.
27
3551 et seq.)
COUNT SIXTEEN
(Unlawful Labor Payments: Brooklyn General Post Office Job Site)
paragraph.
District of New York, the defendant THOMAS G. MCNAMARA, also
known as Tommy Mac, together with others, knowingly and
commerce, from employers at the Brooklyn General Post Office Job
Site and from persons who acted in the interest of said employers
of the employees.
and 3551 et seq.)
COUNTS SEVENTEEN AND EIGHTEEN
(Mail Fraud: Brooklyn General Post Office Job Site)
28
paragraph.
District of New York, the defendant THOMAS G. MCNAMARA, also
known as Tommy Mac, together with others, knowingly and
intentionally devised a scheme and artifice to defraud
contractors, real estate holders and developers, and to obtain
money and property, to wit: money paid as wages and
information regarding hours worked to a contractor, to wit: J.A.
Jones GMO LLC, in connection with the Brooklyn General Post
Office Job Site, claiming that certain hours had been worked by
certain Local 14 and Local 15 members who had, in fact, not
worked those hours, in order fraudulently to obtain wages and
contributions to the Local 14 Plans and the Local 15 Plans in the
names of those members.
United States Postal Service the following items of mail matter,
29
among others, in violation of Title 18, United States Code,
Sections 1341 and 2:
Count Approximate Date of
Mailing
Description Sender
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund
of Local 15
3551 et seq.)
COUNT NINETEEN
(Unlawful Labor Payments: Staten Island Yankee Stadium Job Site)
paragraph.
of money and other things of value in an amount in excess of
$1,000 to representatives of employees who were members of Local
14 and Local 15 and were then employed in an industry affecting
commerce, from employers at the Staten Island Yankee Stadium Job
Site and from persons who acted in the interest of said employers
of the employees.
30
and 3551 et seq.)
COUNTS TWENTY THROUGH TWENTY-THREE
(Mail Fraud: Staten Island Yankee Stadium Job Site)
paragraph.
information regarding hours worked to contractors, to wit:
Interstate Industrial and D. Gangi Contracting Corporation, in
connection with the Staten Island Yankee Stadium Job Site,
31
United States Postal Service the following items of mail matter,
among others:
Count Approximate Date
of Mailing
Description Sender
Vacation Check
Vacation Fund
of Local 15
21 January 10, 2001 Coconspirators
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund
of Local 15
3551 et seq.)
COUNT TWENTY-FOUR
(Unlawful Labor Payments: Coney Island Mets Stadium Job Site)
paragraph.
79. On or about and between August 1, 2000 and March
Eastern District of New York, the defendant ANTHONY QUARANTA,
32
an industry affecting commerce, from employers at the Coney
Island Mets Stadium Job Site and from persons who acted in the
interest of said employers of the employees.
and 3551 et seq.)
COUNT TWENTY-FIVE
(Mail Fraud: Coney Island Mets Stadium Job Site)
paragraph.
81. On or about and between August 1, 2000 and March
Eastern District of New York, the defendant ANTHONY QUARANTA,
together with others, knowingly and intentionally devised a
scheme and artifice to defraud contractors, real estate holders
and developers, and to obtain money and property, to wit: money
paid as wages and contributions to benefit plans, from them by
means of materially false and fraudulent pretenses,
33
defendant ANTHONY QUARANTA, together with others, would and did
hours worked to a contractor, to wit: Turner Construction Co.,
in connection with the Coney Island Mets Stadium Job Site,
14 Plans and Local 15 Plans in the names of those members.
artifice, the defendant ANTHONY QUARANTA, together with others,
items of mail matter, to wit: receipts for a coconspirator from
the Local 14 Fund Office, mailed on or about March 9, 2001.
3551 et seq.)
COUNT TWENTY-SIX
(Unlawful Labor Payments: P.S. 58 Staten Island Job Site)
paragraph.
34
commerce, from employers at the P.S. 58 Staten Island Job Site
and from persons who acted in the interest of said employers of
the employees.
and 3551 et seq.)
COUNTS TWENTY-SEVEN THROUGH THIRTY-FIVE
(Mail Fraud: P.S. 58 Staten Island Job Site)
paragraph.
35
information regarding hours worked to contractors, to wit: New
York Concrete Corp. and DeMatteis Construction Corp., in
connection with the P.S. 58 Staten Island Job Site, claiming that
certain hours had been worked by certain Local 14 and 15 members
who had, in fact, not worked those hours, in order fraudulently
to obtain wages and contributions to the Local 14 Plans and Local
15 Plans in the names of those members.
the following items of mail matter, among others:
Count Approx. Date
of Mailing
Description Sender
27 January 31, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
28 March 1, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund of
Local 15
31 May 29, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
32 July 11, 2001 Daily Sign Out Log
Mail Certification
DeMatteis Constr.
Corp.
36
Count Approx. Date
of Mailing
Description Sender
33 July 16, 2001 Coconspirators
Vacation Check
Vacation Fund of
Local 15
Vacation Check
Vacation Fund
of Local 15
Vacation Check
Vacation Fund
of Local 15
3551 et seq.)
COUNT THIRTY-SIX
paragraph.
employer, to wit: Company 1, and from a person who acted in the
interest of said employer of the employees.
and 3551 et seq.)
37
COUNT THIRTY-SEVEN
(Unlawful Labor Payments: E.G. Clemente Contracting Corp.)
paragraph.
also known as Thomas Maguire, THOMAS G. MCNAMARA, also known as
Tommy Mac, and DANIEL J. MURPHY, being representatives of
value in excess of $1,000 from an employer, to wit: E.G.
Clemente Contracting Corp., and from a person who acted in the
interest of said employer of the employees.
and 3551 et seq.)
COUNT THIRTY-EIGHT
paragraph.
38
also known as Thomas Maguire, THOMAS G. MCNAMARA, also known as
Tommy Mac, and DANIEL J. MURPHY, being representatives of
value in excess of $1,000 from an employer, to wit: Company 2,
and from a person who acted in the interest of said employer of
the employees.
and 3551 et seq.)
COUNT THIRTY-NINE
paragraph.
also known as Tommy Mac, being a representative of employees,
who were members of Local 15 and were then employed in an
39
industry affecting commerce, knowingly and willfully requested,
payments and deliveries of money and other things of value in
excess of $1,000 from an employer, to wit: Company 3, the
identity of which is known to the grand jury, and from a person
who acted in the interest of said employer of the employees.
and 3551 et seq.)
COUNT FORTY
(Conspiracy to Defraud the United States)
98. In or about and between January 2000 and April 15,
knowingly and intentionally conspired to defraud the United
States by impeding, impairing, obstructing and defeating the
lawful functions of the Internal Revenue Service of the Treasury
Department, an agency and department of the United States, in the
ascertainment, computation, assessment and collection of revenue,
to wit: income taxes, from the defendant MCNAMARA.
99. It was a part of the conspiracy that the defendant
THOMAS G. MCNAMARA, also known as Tommy Mac, together with
others, would and did submit and cause to be submitted false
information regarding hours worked to contractors at various Job
40
Sites, claiming that certain hours had been worked by Union
members who had, in fact, not worked those hours, in order
fraudulently to obtain wages and contributions to benefit plans.
100. It was a further part of the conspiracy that
Union members received wages which they had not earned and shared
those wages with the defendant MCNAMARA.
101. It was a further part of the conspiracy that the
defendant MCNAMARA did not declare on his United States personal
income tax returns his share of wages received from Union
members.
102. In furtherance of the conspiracy and to effect
the objectives thereof, within the Eastern District of New York
and elsewhere, the defendant MCNAMARA, together with others,
committed and caused to be committed, among others, the
following:
OVERT ACTS
a. On or about January 23, 2001, coconspirators
had a conversation.
b. On or about January 31, 2001, the defendant
THOMAS G. MCNAMARA and a coconspirator had a conversation.
c. On or about March 15, 2001, the defendant
THOMAS G. MCNAMARA filed a United States personal income tax
return for the year 2000.
d. On or about June 4, 2001, coconspirators had a
conversation.
41
e. On or about March 31, 2002, the defendant
THOMAS G. MCNAMARA filed a United States personal income tax
return for the year 2001.
(Title 18, United States Code, Sections 371 and 3551 et
seq.)
COUNT FORTY-ONE
(Making a False Return: THOMAS G. MCNAMARA 2000)
103. On or about March 15, 2001, within the Eastern
District of New York and elsewhere, the defendant THOMAS G.
MCNAMARA, also known as Tommy Mac, knowingly and willfully made
and subscribed a United States income tax return, Form 1040, for
the year 2000, which was verified by a written declaration that
it was made under penalties of perjury and was filed with the
Internal Revenue Service, which said income tax return he did not
believe to be true and correct as to every material matter in
that he reported that his total income was $173,061, whereas, as
he well knew and believed, his total income was substantially
greater than $173,061.
(Title 26, United States Code, Section 7206(1); Title
18, United States Code, Sections 3551 et seq.)
COUNT FORTY-TWO
(Making a False Return: THOMAS G. MCNAMARA 2001)
104. On or about March 31, 2002, within the Eastern
District of New York and elsewhere, the defendant THOMAS G.
MCNAMARA, also known as Tommy Mac, knowingly and willfully made
and subscribed a United States income tax return, Form 1040, for
42
the year 2001, which was verified by a written declaration that
it was made under penalties of perjury and was filed with the
Internal Revenue Service, which said income tax return he did not
believe to be true and correct as to every material matter in
that he reported that his total income was $179,204, whereas, as
he well knew and believed, his total income was substantially
greater than $179,204.
(Title 26, United States Code, Section 7206(1); Title
18, United States Code, Sections 3551 et seq.)
ADDITIONAL ALLEGATIONS AS TO COUNT ONE, RACKETEERING ACT 1, COUNT
TWO AND COUNTS THREE THROUGH THIRTEEN
(Mail Fraud Conspiracy and Mail Fraud: Local 15 Jobs)
105. The allegations contained in Count One,
Racketeering Act 1, Count Two and Counts Three through Thirteen
are hereby realleged and incorporated as if fully set forth in
this paragraph, and the additional allegations below are
incorporated by reference into Count One, Racketeering Act 1,
Count Two and Counts Three through Thirteen.
106. Based on (a) acts and omissions committed,
aided, abetted, counseled, commanded, induced, procured, and
willfully caused by the defendant DANIEL J. MURPHY, and (b) all
reasonably foreseeable acts and omissions of others in
furtherance of a criminal plan, scheme, endeavor, and enterprise
undertaken by the defendant in concert with others; all of which
occurred during the commission of the offense of conviction, in
preparation for that offense, and in the course of attempting to
43
avoid detection and responsibility for that offense, the
following conduct occurred (U.S.S.G. 1B1.3(a)(1)):
a. The loss was more than $400,000 (U.S.S.G.
2B1.1(b)(1)(H)).
b. The offense involved 10 or more victims
(U.S.S.G. 2B1.1(b)(2)(A)(i)).
107. The defendant DANIEL J. MURPHY abused his
position of private trust as a business agent of Local 15 in a
manner that significantly facilitated the commission of the
offense (U.S.S.G. 3B1.3).
ADDITIONAL ALLEGATIONS AS TO COUNT ONE, RACKETEERING ACTS 2A, 3A,
4A and 5A, AND COUNTS TWO, FOURTEEN,
SIXTEEN, NINETEEN AND TWENTY-SIX
(Unlawful Labor Payments: Oceana Condos, Brooklyn General Post
Office, Staten Island Yankee Stadium and
P.S. 58 Staten Island Job Sites)
Racketeering Acts 2A, 3A, 4A and 5A, and Counts Two, Fourteen,
Sixteen, Nineteen and Twenty-six are hereby realleged and
incorporated as if fully set forth in this paragraph, and the
additional allegations below are incorporated by reference into
Count One, Racketeering Acts 2A, 3A, 4A and 5A, and Counts Two,
Fourteen, Sixteen, Nineteen and Twenty-six.
willfully caused by the defendant THOMAS G. MCNAMARA, and (b) all
44
a. The defendant THOMAS G. MCNAMARA was a
fiduciary of a labor organization (U.S.S.G. 2E5.1(b)(1)).
b. The value of the prohibited payments with
respect to the defendant THOMAS G. MCNAMARA was more than
$1,000,000 (U.S.S.G. 2E5.1(b)(2), 2B1.1(b)(1)(I)).
ADDITIONAL ALLEGATIONS AS TO COUNT TWENTY-FOUR
(Unlawful Labor Payments: Coney Island Mets Stadium Job Site)
110. The allegations contained in Count Twenty-four
incorporated by reference into Count Twenty-four.
willfully caused by the defendant ANTHONY QUARANTA, and (b) all
45
a. The defendant ANTHONY QUARANTA was a fiduciary
of a labor organization (U.S.S.G. 2E5.1(b)(1)).
b. The value of the prohibited payments was more
than $120,000 (U.S.S.G. 2E5.1(b)(2), 2B1.1(b)(1)(F)).
ADDITIONAL ALLEGATIONS AS TO COUNT ONE, RACKETEERING ACTS 2B, 3B,
4B and 5B, AND COUNTS TWO, FIFTEEN, SEVENTEEN, EIGHTEEN, TWENTY
THROUGH TWENTY-THREE AND TWENTY-SEVEN THROUGH THIRTY-FIVE
(Mail Fraud: Oceana Condos, Brooklyn General Post Office, Staten
Island Yankee Stadium and P.S. 58 Staten Island Job Sites)
Racketeering Acts 2B, 3B, 4B and 5B, and Counts Two, Fifteen,
Seventeen, Eighteen, Twenty through Twenty-three and Twenty-seven
through Thirty-five are hereby realleged and incorporated as if
fully set forth in this paragraph, and the additional allegations
below are incorporated by reference into Count One, Racketeering
Acts 2B, 3B, 4B and 5B, and Counts Two, Fifteen, Seventeen,
Eighteen, Twenty through Twenty-three and Twenty-seven through
Thirty-five.
46
a. The loss with respect to the defendant THOMAS
G. MCNAMARA was more than $1,000,000 (U.S.S.G. 2B1.1(b)(1)(I)).
b. The offense involved 10 or more victims
(U.S.S.G. 2B1.1(b)(2)(A)(i)).
114. The defendant THOMAS G. MCNAMARA was a manager
and supervisor of criminal activity that involved five or more
participants and was otherwise extensive (U.S.S.G. 3B1.1(b)).
115. The defendant THOMAS G. MCNAMARA abused his
position of private trust as a business agent of Local 15 in a
manner that significantly facilitated the commission of the
ADDITIONAL ALLEGATIONS AS TO COUNT TWENTY-FIVE
(Mail Fraud: Coney Island Mets Stadium Job Site)
116. The allegations contained in Count Twenty-five
incorporated by reference into Count Twenty-five.
willfully caused by the defendant ANTHONY QUARANTA, and (b) all
47
a. The loss was more than $120,000 (U.S.S.G.
2B1.1(b)(1)(F)).
118. The defendant ANTHONY QUARANTA abused his
position of private trust as a Maintenance Foreman for Local 15
in a manner that significantly facilitated the commission of the
ADDITIONAL ALLEGATIONS AS TO COUNT ONE, RACKETEERING ACT 6, AND
COUNTS TWO AND THIRTY-SIX
Racketeering Act 6, and Counts Two and Thirty-six are hereby
paragraph, and the additional allegations below are incorporated
by reference into Count One, Racketeering Act 6, and Counts Two
and Thirty-six.
willfully caused by the defendant DANIEL J. MURPHY and (b) all
48
a. The defendant DANIEL J. MURPHY was a
than $10,000 (U.S.S.G. 2E5.1(b)(2), 2B1.1(b)(1)(C)).
COUNTS TWO AND THIRTY-SEVEN
(Unlawful Labor Payments: E.G. Clemente Corp.)
Racketeering Act 7, and Counts Two and Thirty-seven are hereby
and Thirty-seven.
willfully caused by the defendants THOMAS P. MCGUIRE, DANIEL J.
MURPHY and THOMAS G. MCNAMARA and (b) all reasonably foreseeable
acts and omissions of others in furtherance of a criminal plan,
scheme, endeavor, and enterprise undertaken by the defendants in
concert with others; all of which occurred during the commission
of the offense of conviction, in preparation for that offense,
49
and in the course of attempting to avoid detection and
responsibility for that offense, the following conduct occurred
(U.S.S.G. 1B1.3(a)(1)):
a. The defendants THOMAS P. MCGUIRE, DANIEL J.
MURPHY and THOMAS G. MCNAMARA were fiduciaries of a labor
organization (U.S.S.G. 2E5.1(b)(1)).
b. The value of the prohibited payments with
respect to the defendants THOMAS P. MCGUIRE and DANIEL J. MURPHY
was more than $10,000 (U.S.S.G. 2E5.1(b)(2), 2B1.1(b)(1)(C)).
c. The value of the prohibited payments with
respect to the defendant THOMAS G. MCNAMARA was more than $5,000
(U.S.S.G. 2E5.1(b)(2), 2B1.1(b)(1)(B)).
COUNTS TWO AND THIRTY-EIGHT
Racketeering Act 8, and Counts Two and Thirty-eight are hereby
and Thirty-eight.
willfully caused by the defendants THOMAS P. MCGUIRE, DANIEL J.
MURPHY and THOMAS G. MCNAMARA, and (b) all reasonably foreseeable
acts and omissions of others in furtherance of a criminal plan,
50
scheme, endeavor, and enterprise undertaken by the defendants in
concert with others; all of which occurred during the commission
of the offense of conviction, in preparation for that offense,
and in the course of attempting to avoid detection and
responsibility for that offense, the following conduct occurred
(U.S.S.G. 1B1.3(a)(1)):
a. The defendants THOMAS P. MCGUIRE, DANIEL J.
MURPHY and THOMAS G. MCNAMARA were fiduciaries of a labor
organization (U.S.S.G. 2E5.1(b)(1)).
than $30,000 (U.S.S.G. 2E5.1(b)(2), 2B1.1(b)(1)(D)).
COUNTS TWO AND THIRTY-NINE
Racketeering Act 9, and Counts Two and Thirty-nine are hereby
and Thirty-nine.
51
a. The defendant THOMAS G. MCNAMARA was a
ADDITIONAL ALLEGATIONS AS TO COUNT FORTY
(Conspiracy to Defraud the United States)
127. The allegations contained in Count Forty are
hereby realleged and incorporated as if fully set forth in this
by reference into Count Forty.
a. The tax loss was more than $30,000 (U.S.S.G.
2T1.9(a)(1), 2T4.1(E)).
52
ADDITIONAL ALLEGATIONS AS TO COUNTS FORTY-ONE AND FORTY-TWO
(Making False Returns)
129. The allegations contained in Counts Forty-one
and Forty-two are hereby realleged and incorporated as if fully
set forth in this paragraph, and the additional allegations below
are incorporated by reference into Counts Forty-one and Forty-
two.
a. The tax loss was more than $5,000 (U.S.S.G.
2T1.1(a)(1), 2T4.1(C)).
CRIMINAL FORFEITURE ALLEGATIONS
A. Criminal Forfeiture Allegation for Counts One and Two
131. The United States hereby gives notice to the
defendants charged in Counts One and Two that, upon conviction of
either such offense, the government will seek forfeiture in
accordance with Title 18, United States Code, Section 1963, which
53
requires any person convicted of such offenses to forfeit any
property such defendants:
a. have acquired an interest in and maintained in
violation of Title 18, United States Code, Section 1962, which
interests are subject to forfeiture to the United States pursuant
to Title 18, United States Code, Section 1963(a)(1);
b. have an interest in, security of, claims against,
and property and contractual rights which afford a source of
influence over the enterprise named and described herein that the
defendants established, operated, controlled, conducted, and
participated in the conduct of, in violation of Title 18, United
States Code, Section 1962, which interests, securities, claims,
and rights are subject to forfeiture to the United States
pursuant to Title 18, United States Code, Section 1963(a)(2); and
c. derived from proceeds obtained, directly and
indirectly, from racketeering activity, in violation of Title 18,
United States Code, Section 1962, which property is subject to
forfeiture to the United States pursuant to Title 18, United
States Code, Section 1963(a)(3).
132. The interests of the defendants subject to
forfeiture to the United States pursuant to Title 18, United
States Code, Section 1963(a)(1), (a)(2), and (a)(3), include, but
are not limited to:
a. the sum of at least Two Million Seventy-eight
Thousand One Hundred Forty-one Dollars ($2,078,141.00).
54
b. the International Union of Operating Engineers
membership positions of each and every defendant named in
paragraphs 16, 17 and 18, which said defendants operated,
controlled, conducted, and participated in, in violation of Title
18, United States Code, Section 1962.
133. The defendants named in Count One, and each of
them, are jointly and severally liable for the forfeiture
obligations as alleged above, as are the defendants named in
Count Two.
134. If any of the above-described forfeitable
property, as a result of any act or omission of the defendants --
a. Cannot be located upon the exercise of due
diligence;
b. Has been transferred or sold to, or deposited
with, a third party;
c. Has been placed beyond the jurisdiction of
the Court;
d. Has been substantially diminished in value; or
e. Has been commingled with other property which
cannot be divided without difficulty;
it is the intent of the United States, pursuant to Title 18,
United States Code, Section 1963(m), to seek forfeiture of any
other property of such defendants up to the value of the
forfeitable property described in this forfeiture allegation.
(Title 18, United States Code, Section 1963)
55
B. Criminal Forfeiture Allegation for Counts
Three Through Thirty-Nine
135. The United States hereby gives notice to the
defendants charged in Counts Three through Thirty-nine that, upon
conviction of any such offenses the government will seek
forfeiture in accordance with Title 18, United States Code,
Section 981(a)(1)(C) and Title 28, United States Code, Section
2461(c), which require any person convicted of such offenses to
forfeit any property constituting or derived from proceeds
traceable to such offenses.
136. If any of the above-described forfeitable
property, as a result of any act or omission of the defendants:
a. Cannot be located upon the exercise of due
diligence;
b. Has been transferred or sold to, or deposited
with, a third party;
c. Has been placed beyond the jurisdiction of the
Court;
d. Has been substantially diminished in value; or
e. Has been commingled with other property which
cannot be divided without difficulty,
it is the intent of the United States, pursuant to Title 21,
United States Code, Section 853(p), as incorporated by Title 28,
United States Code, Section 2461(c), to seek forfeiture of any
56
other property of such defendants up to the value of the
forfeitable property described in this forfeiture allegation.
(Title 18, United States Code, Section 981(a)(1)(C);
Title 21, United States Code, Section 853; Title 28, United
States Code, Section 2461(c))
A TRUE BILL

FOREPERSON

ROSLYNN R. MAUSKOPF
UNITED STATES ATTORNEY
EASTERN DISTRICT OF NEW YORK
EXHI BI T 11

EXHI BI T 12

NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES OF AMERICA )
) No.
v. )
) Violations: Title 18, United States
JOHN A. ORECCHIO ) Code, Sections 664 and 1343
COUNT ONE
The UNITED STATES ATTORNEY charges:
1. At times material to this information:
a. AA Capital Partners, located at 10 S. LaSalle Street, Chicago,
Illinois, was incorporated by defendant JOHN A. ORECCHIO as a Delaware
corporation in approximately February 2002. AA Capital was registered with the
SEC as an investment adviser under the Investment Advisers Act of 1940.
ORECCHIO was the co-owner, director, president, and secretary of AA Capital. As
the president of AA Capital, ORECCHIO exercised day-to-day management and
control of the affairs of AA Capital.
b. AA Capital was the investment manager for five union pension
funds, each of which was an employee benefit plan as defined in 3(2) of the
Employee Retirement Income Security Act of 1974 (ERISA), as further described
below:
i. Carpenters' Pension Trust Fund Detroit & Vicinity (the
Carpenters' Fund), which placed approximately $75 million for investment under
its Investment Management Agreement with AA Capital;
ii. Operating Engineers Local No. 324 Pension Fund (the
Operators' Fund), which placed approximately $60 million for investment under
its Investment Management Agreement with AA Capital;
iii. Michigan Teamsters Joint Council No. 43 Pension Fund
(the Teamsters' Fund), which placed approximately $100,000 for investment
under its Investment Management Agreement with AA Capital;
iv. Millwrights' Local No. 1102 Supplemental Pension Fund
(the Millwrights' Fund), which placed approximately $13 million for investment
under its Investment Management Agreement with AA Capital;
v. Michigan Regional Council of Carpenters Annuity Fund
(the MRCC Fund), which placed approximately $21 million for investment under
its Investment Management Agreement with AA Capital; and
vi. Arkansas/Oklahoma Regional Council of Carpenters (the
AR/OK Fund), which placed approximately $529,000 for investment under its
Investment Management Agreement with AA Capital.
(referred to hereinafter as the ERISA Plan Investors).
c. The Investment Management Agreements that AA Capital
entered into with each of the ERISA Plan Investors delegated to AA Capital full
discretion over the investment and re-investment of funds provided by the ERISA
Plan Investors to AA Capital. When each of the investors became a client of AA
Capital, it deposited the total amount of its investment commitment with AA
Capital, and delegated to AA Capital full discretion over the investment and
re-investment of all money provided to AA Capital. AA Capital established and
maintained bank trust accounts (the Investor Trust Accounts) for each ERISA
Plan Investor to hold the funds until such time as when AA Capital was supposed to
use the money to make investments on behalf of the Investor.
d. Rather than making direct investments of investors money into
securities and debt instruments of non-affiliated parties, AA Capital and its
principals created a series of separate funds, each formed as a limited partnership
(the Funds), in which AA Capital placed the ERISA Plan Investors as limited
partners and into which AA Capital invested the monies of the ERISA Plan
Investors. Each of the Funds in turn used the money to purchase direct
investments in non-affiliated parties. Under the governing documents of each of
the Funds, a Fund could call capital from the Investor Trust Accounts for three
primary purposes: (i) investments by the Funds; (ii) management fees of the Funds;
or (iii) overhead expenses attributable to the Funds. AA Capital had complete
control over the Investor money held in the Investor Trust Accounts.
e. The structure of each of the Funds was essentially the same.
The general partner of each Fund (which was in each case a limited liability
company composed of senior employees of AA Capital) received a one percent
economic interest in the Fund, for which it made no payment, and the balance of
ownership interests in the Funds were held by one or more of the ERISA Plan
Investors (as limited partners in the Funds). Defendant JOHN A. ORECCHIO, on
behalf of AA Capital, managed the investment assets of each Fund (which consisted
of private equity investments, loans to real estate developers, and investments in
other large, non-affiliated funds) under a written Management Agreement (Fund
Management Agreements) in which (i) AA Capital acknowledged that it was a
fiduciary within the meaning of ERISA with respect to the assets of the Fund and
(ii) AA Capital was granted full discretion over the investments and, if applicable,
re-investments of the Fund's assets.
f. AA Capital's services under the Investment Management
Agreements included ensuring that the money of each Fund's limited partners was
properly maintained, monitored, segregated, and accounted for, was not
commingled into the accounts of AA Capital or other funds under AA Capital
management, and was used only for authorized purposes, which purposes were
limited to funding the investments in each such Fund and paying legitimate
expenses and management fees of each such Fund. As such, AA Capital and
defendant JOHN A. ORECCHIO were fiduciaries within the meaning of ERISA.
2. Between approximately 2002 and continuing until approximately
September 13, 2006, in the Northern District of Illinois, Eastern Division, and
elsewhere,
JOHN A. ORECCHIO,
defendant herein, devised and participated in a scheme to defraud the ERISA Plan
Investors and AA Capital, and to obtain money by means of materially false and
fraudulent pretenses, representations, and promises, which scheme is further
described below.
3. It was part of the scheme that defendant JOHN A. ORECCHIO
misappropriated and misapplied approximately $24,000,000 of funds owned by the
ERISA Plan Investors.
4. It was further part of the scheme that defendant JOHN A. ORECCHIO
falsely and fraudulently caused AA Capital to make capital calls on the Investor
Trust Accounts, knowing the funds that he was causing to be withdrawn were not
going to be directed toward (i) investments by the Funds; (ii) legitimate
management fees of the Funds; or (iii) overhead expenses attributable to the Funds.
Rather, defendant ORECCHIO caused the capital calls to occur in order to obtain
funds that he could convert for his own use and benefit.
falsely and fraudulently caused funds owned by the ERISA Plan Investors to be
used to pay his own personal expenses, or expenses of AA Capital that were not
appropriately allocated to management of the Funds.
6. It was further part of the scheme that at various times between
approximately August 31, 2005, and July 31, 2006, defendant JOHN A. ORECCHIO
directed AA Capital to make seven capital calls from one of the Funds in amounts
totaling approximately $8,700,000, purportedly to fund investment in AART
Development LLC, a real estate development in Michigan. Defendant ORECCHIO
misappropriated approximately $6,930,000 of these funds for his own personal use
and benefit, principally to pay for personal business and real estate interests with
no connection to the ERISA Plan Investors.
7. It was further part of the scheme that at various times in 2004 and
2005, defendant JOHN A. ORECCHIO directed that AA Capital withdraw by
capital calls approximately $5,721,000 from the Investor Trust Accounts for
personal "tax payments" which ORECCHIO purported represented payment for a
personal tax liability that accrued to ORECCHIO personally while acting as the
manager of AA Capital. No such tax liability in fact existed. Rather, ORECCHIO
misappropriated the funds characterized as "tax payments" for his own personal
use and benefit.
8. It was further part of the scheme that at various times between 2003
and 2006, defendant JOHN A. ORECCHIO directed that AA Capital pay, with
funds withdrawn from the Investor Trust Accounts, approximately $4,387,000 to
J&R Ventures, an entity whose bank account ORECCHIO controlled. ORECCHIO
then converted the substantial majority of these funds for his own personal use and
benefit.
9. It was further part of the scheme that between approximately 2003
and September 2006, defendant JOHN A. ORECCHIO submitted to AA Capital
false and fraudulent requests for reimbursement and payment of "business
expenses" totaling approximately $7,167,000 that purportedly were incurred by
defendant ORECCHIO. In truth, as defendant ORECCHIO well knew, these
expenditures of funds were not legitimate business expenses related to his
management of the Funds or of AA Capital.
concealed, misrepresented, and hid and caused to be concealed, misrepresented, and
hidden, the existence and purpose of the scheme and the acts done in furtherance of
the scheme.
11. On or about April 20, 2005, in the Northern District of Illinois, Eastern
Division, and elsewhere,
JOHN A. ORECCHIO,
defendant herein, for the purpose of executing the scheme to defraud, knowingly
caused to be transmitted in interstate commerce certain writings, signs, signals,
and sounds, namely a wire transfer of approximately $2,295,000 from an account
(no. xxxxxx0578) at Standard Federal Bank maintained in the name of AA Capital
Equity Fund LP, to an account (no. xxx-xxx0254) at Wells Fargo Bank maintained
in the name of J and R Ventures LLC, in Las Vegas, Nevada.
In violation of Title 18, United States Code, Sections 1343.

COUNT TWO
The UNITED STATES ATTORNEY further charges:
1. The allegations in paragraph 1 of Count One of this information are
realleged and incorporated by reference as if fully set forth herein.
2. On or about November 7, 2005, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,
JOHN A. ORECCHIO,
defendant herein, did embezzle, steal and willfully abstract or convert to his own
use, and to the use of others, moneys, credits, property, and other assets of an
employee welfare benefit plan or employee pension benefit plan, subject to Title I of
ERISA, and of a fund connected therewith, namely $5,000,000 belonging to the
MRCC Fund.
In violation of Title 18, United States Code, Section 664.
UNITED STATES ATTORNEY
EXHI BI T 13

FORM NLRB-4775 UNITED STATES GOVERNMENT
(1-11) NATIONAL LABOR RELATIONS BOARD
SETTLEMENT AGREEMENT
IN THE MATTER OF
INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 139

Case 30-CB-5569
The undersigned Charged Party and the undersigned Charging Party, in settlement of the above matter, and subject to the approval of the
Regional Director for the National Labor Relations Board, HEREBY AGREE AS FOLLOWS:
POSTING OF NOTICE Upon approval of this Agreement and receipt of the Notices from the Region, which may include Notices in
more than one language as deemed appropriate by the Regional Director, the Charged Party will post immediately in conspicuous places
in and around all of its offices and halls, including all places where notices to employees/members are customarily posted, and maintain
for 60 consecutive days from the date of posting, copies of the attached Notice (and versions in other languages as deemed appropriate
by the Regional Director) made a part hereof, said Notices to be signed by a responsible official of the Charged Party and the date of
actual posting to be shown thereon. The Union will also submit forthwith signed copies of said Notice to the Regional Director who will
forward them to the employer whose employees are involved herein, for posting, the employer willing, in conspicuous places in and about
the employer's jobsite where they shall be maintained for 60 consecutive days from the date of posting. Further, in the event that the
charged union maintains such bulletin boards at the facility of the employer where the alleged unfair labor practices occurred, the union
shall also post Notices on each such bulletin board during the posting period.
In addition to physical posting of paper notices, the Notice shall also be posted in a conspicuous place on the Charged Partys website
and shall remain posted for 60 consecutive days from the date it was originally posted. The Charged Party will e-mail the Regions
Compliance Officer at Richard.Neuman@nlrb.gov with a link to the electronic posting location on the same day as the posting.
In addition, the Notice shall be read aloud by a responsible official of the Charged Party at May 11, 2011 Union meeting in Pewaukee,
Wisconsin. A Board Agent will be present when the responsible official reads the Notice to members.
COMPLIANCE WITH NOTICE The Charged Party will comply with all the terms and provisions of said Notice.
By entering into this Settlement Agreement the Charged Party does not admit to having committed any violation of the National Labor
Relations Act.
By entering into this Settlement Agreement the Charged Party waives all rights it may have under the Equal Access to Justice Act, Public
Law 96-481, 94 Stat. 2325.
SCOPE OF THE AGREEMENT This Agreement settles only the following allegations in the above-captioned case(s), and does not
constitute a settlement of any other case(s) or matters:
On or about May 7, 2010, Charged Party, by Chip Milner, at the Oak Creek jobsite, threatened an employee with termination
because he filed charges against the Union with the National Labor Relations Board.
On or about May 7, 2010, Charged Party, by Chip Milner, at the Oak Creek jobsite, threatened an employee with expulsion
from the Union because he filed charges against the Union with the National Labor Relations Board.
On or about May 12, 2010, Charged Party, by Terry McGowan, at the Pewaukee Union hall, threatened Union-represented
members and employees with the loss of their raises because other members filed charges against the Union with the
National Labor Relations Board.
On or about May 12, 2010, Charged Party, by Terry McGowan, at the Pewaukee Union hall, coerced members by informing
them that it was against the Unions by-laws to file a charge against the Union with the National Labor Relations Board
before first exhausting internal remedies.
On or about May 12, 2010, Charged Party, by Terry McGowan, at the Pewaukee Union hall, threatened to file internal
charges against members because they filed charges against the Union with the National Labor Relations Board.
On or about May 12, 2010, Charged Party, by Terry McGowan, at the Pewaukee Union hall, urged members to file internal
charges against members because they filed charges against the Union with the National Labor Relations Board.
On or about May 12, 2010, Charged Party, by Terry McGowan, at the Pewaukee Union hall, threatened to fine members
because they filed charges against the Union with the National Labor Relations Board.
On or about May 12, 2010, Charged Party, at the Pewaukee Union hall, condoned threats of violence made by members
against other members because they filed charges against the Union with the National Labor Relations Board.
No remedies in addition to the above-cited Posting of Notice provision are required in this matter.
It does not preclude persons from filing charges, the General Counsel from prosecuting complaints, or the Board and the courts from
finding violations with respect to matters which precede the date of the approval of this Agreement regardless of whether such matters are
known to the General Counsel or are readily discoverable. The General Counsel reserves the right to use the evidence obtained in the
investigation and prosecution of the above-captioned case(s) for any relevant purpose in the litigation of this or any other case(s), and a
judge, the Board and the courts may make findings of fact and/or conclusions of law with respect to said evidence.

REFUSAL TO ISSUE COMPLAINT In the event the Charging Party fails or refuses to become a party to this Agreement, and if in
the Regional Director's discretion it will effectuate the policies of the National Labor Relations Act, the Regional Director shall decline to
issue a Complaint herein (or a new Complaint if one has been withdrawn pursuant to the terms of this Agreement), and this Agreement
shall be between the Charged Party and the undersigned Regional Director. A review of such action may be obtained pursuant to Section
102.19 of the Rules and Regulations of the Board if a request for same is filed within 14 days thereof. This Agreement shall be null and
void if the General Counsel does not sustain the Regional Director's action in the event of a review. Approval of this Agreement by the
Regional Director shall constitute withdrawal of any Complaint(s) and Notice of Hearing heretofore issued in the above captioned case(s),
as well as any answer(s) filed in response.
AUTHORIZATION TO PROVIDE COMPLIANCE INFORMATION AND NOTICES DIRECTLY TO CHARGED PARTY.
Counsel for the Charged Party authorizes the Regional Office to forward the cover letter describing the general expectations
and instructions to achieve compliance, a conformed settlement, original notices and a certification of posting directly to t he
Charged Party. If such authorization is granted, Counsel will be simultaneously served with a courtesy copy of these
documents.
Yes __________ No_________
Initials Initials

PERFORMANCE Performance by the Charged Party with the terms and provisions of this Agreement shall commence immediately
after the Agreement is approved by the Regional Director, or if the Charging Party does not enter into this Agreement, performance shall
commence immediately upon receipt by the Charged Party of notice that no review has been requested or that the General Counsel has
sustained the Regional Director.

The Charged Party agrees that in case of non-compliance with any of the terms of this Settlement Agreement by the Charged Party, and
after 14 days notice from the Regional Director of the National Labor Relations Board of such non-compliance without remedy by the
Charged Party, the Regional Director will issue the complaint on the allegations spelled out above in the Scope of Agreement section.
Thereafter, the General Counsel may file a motion for summary judgment with the Board on the allegations of the complaint. The Charged
Party understands and agrees that all of the allegations of the aforementioned complaint will be deemed admitted and it will have waived
its right to file an Answer to such complaint. The only issue that may be raised before the Board is whether the Charged Party defaulted
on the terms of this Settlement Agreement. The Board may then, without necessity of trial or any other proceeding, find all allegations of
the complaint to be true and make findings of fact and conclusions of law consistent with those allegations adverse to the Charged Party,
on all issues raised by the pleadings. The Board may then issue an order providing a full remedy for the violations found as is customary
to remedy such violations. The parties further agree that the U.S. Court of Appeals Judgment may be entered enforcing the Board order
ex parte.

NOTIFICATION OF COMPLIANCE The undersigned parties to this Agreement will each notify the Regional Director in writing what
steps the Charged Party has taken to comply herewith. Such notification shall be given within 5 days, and again after 60 days, from the
date of the approval of this Agreement. In the event the Charging Party does not enter into this Agreement, initial notice shall be given
within 5 days after notification from the Regional Director that no review has been requested or that the General Counsel has sustained
the Regional Director. Contingent upon compliance with the terms and provisions hereof, no further action shall be taken in the above
captioned case(s).

Charged Party
INTERNATIONAL UNION OF OPERATING
ENGINEERS, LOCAL 139

Charging Party
TIMOTHY A. PARE

By: Name and Title
/s/ Brian C. Hlavin

Date
2/25/11

By Name and Title
/s/ Timothy A. Pare

Date
3-2-11

Recommended By:
/s/ Jessica M. Gibson
Board Agent
Date
3/4/11

Approved By:
/s/ Irving E. Gottschalk
Regional Director
Date
3/15/11

H:\R30COM\30 C Cases\30-CB-005569\Regional Determination\SET.30-CB-005569 Informal Settlement.doc
EXHI BI T 14

EXHI BI T 15

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EXHI BI T 17

EXHI BI T 18

M A R 2 1 2 0 0 9
J ames R. Zazzali, Esq.
Ethics Officer
IUOE, AFL-CIO
One Riverfront Plaza
Box No. 782
Newark, NJ 07102
Toll Free Number
(866) 380-3495
March 19,2009
Mr. J ames McLaughlin
Business Manager
IUOE Local 501
2405 West Third Street
Los Angeles, CA 90057
Re: lOVE Local 501
Dear Mr. McLaughlin:
As you know, I serve as the Ethics Officer for the International Union of
Operating Engineers.
We received a complaint from a member of Local 501 alleging that the District
Representative is also a Chief Engineer. This member believes that, because the District
Representative "is both management for company as wellas management for the Union,
he has a conflict of interest". He also maintains that the bylaws prohibit such an
arrangement and, further, that the District Representative may have "influenced a recent
decision" .
Those are the only facts that have been provided to me. I amattempting to obtain
more details and, if I do, I will inform you.
In the meantime, I would appreciate your response to the above allegations. My
inquiry to you does not suggest that I believe or disbelieve those claims. It is, quite
simply, and as you know, my responsibility to investigate such allegations.
Thank you for your attention and cooperation.
J RZ/ac
CC: Richard Griffin, Esq.
69480 doc
EXHI BI T 19

EXHI BI T 20

10/27/09 4:49 PM www.detnews.com | Printer-friendly article page
Page 1 of 2 http://detnews.com/article/20091027/METRO01/910270349&template=printart
October 27, 2009 http://detnews.com/article/20091027/METRO01/910270349
Suspect in corruption inquiry says union official
got favors
PAUL EGAN
The Detroit News
An Illinois businessman told the FBI he arranged for an inflated price to be paid for the home of a
Detroit-area union official in return for the union investing $65 million of its pension funds with his
company.
John Orecchio of AA Capital Partners told federal investigators there was "a quid pro quo" between
the Operating Engineers Pension Fund investing the money with his firm in December 2003 and
Orecchio arranging for an inflated price to be paid for the home of John M. Hamilton, business
manager and general vice president of Local 324 of the International Union of Operating Engineers,
according to documents obtained by The Detroit News.
In July, Orecchio, a partner in the Chicago-based investment firm, was charged in federal court in
Illinois with fraud and embezzlement. He is accused of misappropriating $24 million of the funds
invested with his company by the Operating Engineers and other clients. He has had conversations
with the FBI since at least 2006, and the charges are pending.
Hamilton did not respond to telephone and e-mail messages Monday seeking comment.
The News reported Saturday that Orecchio told the FBI he wrote a $10,000 check in 2005 to the
Kilpatrick Civic Fund, a nonprofit corporation controlled by the former mayor, to get an audience with
Kilpatrick to "pitch" a $20 million city pension fund investment in AA Capital.
Kilpatrick later appeared with Orecchio before the board of the Detroit Police and Fire Retirement
System in support of the proposed investment of public pension funds, meeting minutes show. The
board approved the investment, though the deal later fell through before the money changed hands.
Orecchio told investigators from the FBI and the Office of Inspector General of the U.S. Department of
Labor that he spent a lot of money "wining and dining" Hamilton before and after the union made its
$65 million pension fund investment with AA Capital.
But he did not tell investigators he dealt directly with Hamilton on the alleged inflated purchase of
Hamilton's home, the records show.
Orecchio said it was Joseph. P. Caretti, an owner of Independent Investment Management LLC, and
a second man, a banking official who told him he needed to arrange for the purchase of Hamilton's
home in St. Clair County's Cottrellville Township.
"Hamilton needed more cash and wanted to sell his house at a premium, but he was having trouble
finding a buyer at the price he wanted," Orecchio told the FBI in 2006. Orecchio said he was told that
buying Hamilton's home "is what we owe him for the $65 million commitment."
10/27/09 4:49 PM www.detnews.com | Printer-friendly article page
Page 2 of 2 http://detnews.com/article/20091027/METRO01/910270349&template=printart
Caretti, who told The Detroit News in September 2008 he was surprised to hear the FBI was asking
questions about him, did not return a phone call Monday.
Orecchio told investigators he was "on the hook" for the purchase of Hamilton's home but he
arranged for the purchase to be made by Dan Griffin, a friend of Hamilton's who worked in real
estate, the reports say.
St. Clair County records show Daniel S. Griffin purchased Hamilton's property for $650,000 in
February 2004. Griffin resold the property a little over a year later, in September 2005, for $500,000,
records show.
Griffin could not be reached for comment.
Orecchio told investigators he provided other favors to Hamilton.
A trip to Las Vegas in September 2003 for the Oscar De La Hoya-Shane Mosley boxing bout
included Hamilton and others, with AA Capital paying for the flight, rooms and meals at the Treasure
Island Hotel, Orecchio told investigators.
He said Hamilton also asked him to get ring-side seats for Kilpatrick, who was not part of the trip.
Orecchio said he got four ring-side seats for Kilpatrick at a cost of $10,000 each.
But on the night of the bout, Orecchio said he saw Kilpatrick and his father, Bernard N. Kilpatrick,
seated elsewhere at the boxing match.
He said unnamed "henchmen" of Kilpatrick's were in the seats he purchased.
pegan@detnews.com">pegan@detnews.com (313) 222-2069
Copyright 2009 The Detroit News. All rights reserved.
EXHI BI T 21

For Immedi ate Rel ease Contact
January 4, 2011 Jay Lederer
(202) 778-2626
jlederer@iuoe.org
Jamie Horwitz
(202) 549-4921
jhdcpr@starpower.net

Statement by
I nternational Union of Operating Engineers General President
J ames T. Callahan
on
Todays Appointment of I UOE General Counsel
Richard Griffin to the National Labor Relations Board

Todays recess appointment of Richard Griffin to the National Labor Relations Board is the
right decision at the right time to keep this critical agency on the job, providing stability
and balance to American workers and employers. Richard is highly respected by lawyers
on both the labor and business side of labor law. His fair-minded approach to legal
questions is exactly what the NLRB needs. As IUOEs General Counsel and as a former
counsel to the NLRB Board members, he has substantial experience in employment law; as
a former trustee of the IUOEs central pension fund, he played a key role in safeguarding
the interests of employers and employees alike.

Some Republican members of the Senate have made a determined effort to cripple the
NLRB and other government agencies by refusing to act on President Obamas nominees,
no matter how qualified. Leaving the NLRB without a quorum would penalize both labor
and employers.

Their position is comparable to ejecting the referee if you dont like the score of the game.
Thats just plain wrong. Richard Griffin and the Presidents other pick Sharon Block are
distinguished attorneys who will bring an even-handed approach to labor and management
issues. They deserve to be seated and workers and employers deserve a functioning
National Labor Relations Board.

--more--

IUOE General President James T. Call ahan Statement on Richard Griffin / Page 2

The I nternational Union of Operating Engineers (I UOE) represents more than 400,000
members in 123 local unions across the U.S. and Canada, including operating engineers, who work
as heavy equipment operators, mechanics, surveyors in the construction industry; stationary
engineers in building and industrial maintenance; nurses and other health care workers; and public
employees. IUOE, which operates over 100 state-of-the-art apprentice programs, is an affiliate of
the AFL-CIO.

General President J ames T. Callahan was elected to office in November of 2011 and
assumed his duties as General President on J anuary 1, 2012. He previously served as IUOE General
Secretary-Treasurer and was elected an International Vice President in 2008. He has served as
President and Business Manager of Local 15 in New York City since 2003. A 32-year member, he
was one of the many operating engineers who responded immediately to the September 11 tragedy
and worked the entire recovery effort at Ground Zero. Callahan also serves on the Executive Board
of the New York City Building and Construction Trades Council, the New York City Central Labor
Council, and the New York State AFL-CIO. He is a member of the Board of Governors of the New
York Building Foundation and sits on the Metropolitan Transit Authoritys Blue Ribbon
Commission. Callahan is also a Trustee of the IUOE General Pension Fund.

-30-
EXHI BI T 22

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THE
CONSTI TUTI ON
GOVERNING
THE I NTERNATI ONAL UNI ON OF
OPERATI NG ENGI NEERS
AND
ALL SUBDIVISIONS, BODIES, LOCAL UNIONS
AND MEMBERS THEREOF
THE INTERNATIONAL UNION OF OPERATING ENGINEERS
ORGANIZED DECEMBER 7, 1896
AFFILIATED WITH AFL-CIO
Compiled by the Constitution Convention Sept. 30, 1938,
and adopted by Referendum Vote of Entire Membership
Dec. 31, 1938.
Amended by 21st Int. Convention April 1940
Amended by 22nd Int. Convention April 1944
Amended by Referendum September 1, 1947
Amended by 23rd Int. Convention April 1948
Amended by Referendum August 1, 1951
Amended by 24th Int. Convention April 1952
Amended by Referendum September 28, 1977
Amended by 31st Int. Convention April 1980
Amended by 32nd Int. Convention April 1984
Amended by 33rd Int. Convention April 1988
1
CONTENTS
Preface Suggested Order of Business . . . . . . 4
Art. I. Name, Purposes, Government
and Ritual . . . . . . . . . . . . . . . . . . . . . 5
Art. II. Emblem . . . . . . . . . . . . . . . . . . . . . . 7
Art. III. General Conventions, Powers,
Delegates, Etc. . . . . . . . . . . . . . . . . . 8
Art. IV. General OIfcers, Election, Etc. . . . . 15
Art. V. General Executive Board . . . . . . . . . 19
Art. VI. General President . . . . . . . . . . . . . . . 22
Art. VII. General Vice Presidents . . . . . . . . . . 26
Art. VIII. General Secretary-Treasurer . . . . . . 26
Art. IX. Board of Trustees . . . . . . . . . . . . . . . 29
Art. X. Membership . . . . . . . . . . . . . . . . . . . 30
Art. XI. Income of International Union . . . . 31
Art. XII. Territorial J urisdiction . . . . . . . . . . . 34
Art. XIII. Craft J urisdiction . . . . . . . . . . . . . . . 35
Art. XIV. Charters . . . . . . . . . . . . . . . . . . . . . . 39
Art. XV. Transfer, Clearance, Service
Dues, Withdrawal Cards and
General OIfce Membership . . . . . . 45
2
Art. XVI. Discipline and Expulsion . . . . . . . . . 57
Art. XVII. Appeals . . . . . . . . . . . . . . . . . . . . . . . 59
Art. XVIII. Amending and Revising Constitution,
Initiative, and Recall . . . . . . . . . . . . 62
Art. XIX. Defense Fund, Lockouts, Strikes . . . 64
Art. XX. Death Benefts . . . . . . . . . . . . . . . . . 65
Art. XXI. J oint Executive Boards . . . . . . . . . . . 71
Art. XXII. District Councils . . . . . . . . . . . . . . . 72
Art. XXIII. State, Interstate and
Provincial Organizations . . . . . . . . . 73
Art. XXIV. Government of Local Unions . . . . . 75
Art. XXV. Apprenticeship . . . . . . . . . . . . . . . . . 106
Art. XXVI. District Administration Form
of Local Union Government . . . . . . 107
Art. XXVII. The General Pension Fund Plan . . . . 110
Art. XXVIII. Honorary Positions Created . . . . . . . 110
Art. XXIX. Savings Clause . . . . . . . . . . . . . . . . . 110
Index . . . . . . . . . . . . . . . . . . . . . . . . . 112
3
PREFACE
SUGGESTED ORDER OF BUSINESS FOR LOCAL UNIONS
1. Meeting called to order per Ritual.
2. Examination of dues books and/or cards by Conductor
3. Roll call oI oIfcers.
4. (a) Minutes of the previous meeting.
(b) Minutes of the Local Executive Board.
5. Presentation of applications for membership.
6. Reports of committee on applications.
7. Reading of communications by the Recording-
Corresponding Secretary.
8. Reading of receipts for the per capita tax and other
monies sent to the General Secretary-Treasurer.
9. Election and installation oI oIfcers.
10. Reports of sickness, accident and death of members.
11. (a) Reports pertaining to apprentices.
(b) Reports pertaining to Branch Locals.
12. Unfnished business.
13. New business.
14. Reports oI (a) OIfcers
(b) Delegates
(c) Committees:
(i) Safety and health
(ii) Legislation and political action
(iii) Other
(d) Business Representatives
(e) Trustees
(f) Auditors
(g) Treasurer.
15. Subjects for the good and welfare.
16. Appropriations for monies from the treasury
(drawing orders signed by the President and the
Recording-Corresponding Secretary authorizing the
payment of bills and other expenses).
17. Motion or order for adjournment.
4
THE CONSTI TUTI ON
OF
ARTI CLE I
NAME, PURPOSES, GOVERNMENT
AND RI TUAL
Name
This organization shall be known as the In-
ternational Union of Operating Engineers
and it shall be the policy oI this organization to be aIfli-
ated with the AFL-CIO and such of its departments as this
organization may deem expedient.
Purposes
The objects and purposes of this organiza-
tion are to elevate the trade of operating en-
gineers (by which trade the membership thereof earn a live-
lihood for themselves and their dependents) to its proper
position in all industrial activity and the ranks of organized
workers; to encourage a higher standard of skill among
its members; to cultivate feelings of friendship among the
men of the craft and those who may employ its members;
to organize all persons working in the jurisdiction of this
International Union without regard to race, creed, color,
sex, religion, age or national origin; to promote the health,
welfare and safety of its members and their families; to
promote, foster and develop apprentice programs, train-
ing programs and other means to advance the skills, ef-
fciency and working knowledge oI its members; to assist
its members in securing and stabilizing employment; to
assist employers in obtaining skilled craftsmen; to secure
improved wages, hours, and working conditions through
assisting aIfliated Local Unions in negotiating collective
Art. I.
Section 1.
Art. I.
Section 2.
5
bargaining agreements and through legislative action and
other appropriate means; to further, directly and indirectly,
the joint interest of the members of the International Union
in the betterment of general economic and social condi-
tions in the world, by engaging in legislative, political,
educational, civic welfare, and other appropriate activities;
while preserving the integrity and autonomy of this Inter-
national Union, to work within the AFL-CIO and to coop-
erate with other International Unions for the advancement
of the entire labor movement, and to assist and cooperate
with free and democratic labor organizations throughout
the world; to provide aid and assistance for, and to bring
about cooperation and coordination oI eIIort among aIfli-
ated Local Unions; to insure the better protection of life
and property by securing the enactment of state, provincial
and city Engineers License Laws and by other appropriate
means; and to protect and strengthen our democratic insti-
tutions and to vigorously oppose the efforts of those who
advocate the overthrow of the established order, either of
government or of this organization, by force or violence or
subversive tactics.
Government
The International Union of Operating
Engineers shall be governed by the fol-
lowing bodies:
1. General Convention
2. General Executive Board
3. OIfcers
4. Board of Trustees
5. State and Provincial Organizations
6. J oint Executive Boards
7. District Councils
8. Parent Local Unions
and each of such bodies shall constitute a distinct entity
each with its own separate identity but functioning in con-
formity to the Constitution and Ritual. No Local Union
Art. I.
Section 3.
6
or its oIfcers, employees or members, shall have power
or authority to act, nor be deemed to act, on behalf of or
agent for, or legally bind any other Local Union or mem-
ber thereof, the General Convention, the General Execu-
tive Board, any oI the General OIfcers, or the International
Union of Operating Engineers, unless such authority is ex-
pressly granted by the provisions of this Constitution or
by the General Executive Board. No Local Union, oIfcer
or member thereof, Supervisor or Representative, shall be
authorized or permitted to accept service of summons, sub-
poena, or make entry of appearance, for or on behalf of
the International Union, any General OIfcer, the General
Executive Board, the Board of Trustees, or any other Local
Union or other subdivision of the International Union of
Operating Engineers.
Ritual
The Ritual and Obligation shall form a part
of this Constitution and shall be adminis-
tered in such form, and from time to time revised in such
manner as the General President, with the approval of the
General Executive Board, may direct.
ARTI CLE I I
EMBLEM
Description
The oIfcial emblem oI the International
Union of Operating Engineers, duly regis-
tered as a trademark, is as follows:

Art. I.
Section 4.
Art. II.
Section 1.
7
Use of Emblem
This emblem shall be generally used on all
printed matter, including charters, supplies
and stationery of the organization and its various subdivi-
sions, and in forms to be worn by members.
Seals and Facsimiles
The oIfcial seal oI the organization shall
bear this emblem. The seal of each General
OIfcer and subdivision oI the organization shall likewise
bear this emblem together with the title oI such oIfcer or
the name of such subdivision using the same. No seal shall
be held or used by any General OIfcer or subdivision oI
the organization, nor shall the use or holding of any seal
confer authority unless such seal shall have been furnished
by the General Secretary-Treasurer. All seals shall be the
property of the International Union of Operating Engi-
neers. No facsimile of the emblem shall be used except
such as are supplied by the General Secretary-Treasurer.
ARTI CLE I I I
GENERAL CONVENTI ONS
Powers
All the sovereign power, including the leg-
islative, executive, administrative and ju-
dicial, of the International Union of Operating Engineers
shall be vested in its General Convention when in session.
Specifcally, but not in limitation oI the power thus vested,
the General Convention may grant and issue charters for
Local Unions and subdivisions thereof and local, State and
Provincial organizations and such other subdivisions of the
International Union as from time to time may be deemed
advisable; set the cost for said charters and necessary sup-
plies issued with said charters; suspend and revoke any of
said charters; adopt and issue a seal for the International
Art. II.
Section 2.
Art. II.
Section 3.
Art. III.
Section 1.
8
Union, its General OIfcers, its Local Unions, local, State
and Provincial organizations and any other subdivisions;
adopt, print and issue dues books and/or cards for the use
of the membership; print and issue per capita tax dues
stamps and collect for same; print, issue and mail an of-
fcial journal; print and issue such books, stationery, sup-
plies and paraphernalia and sell the same to aIfliated Local
Unions, local, State and Provincial organizations and any
other subdivisions for the proper keeping of their records
and affairs; invest the funds of the International Union;
buy and sell real estate (improved or otherwise) and bonds
and other securities; establish, impose and collect per
capita tax; establish, impose and collect assessments upon
members, charter applicants, Local Unions, local, State
and Provincial organizations and any other subdivisions
as hereinafter provided; impose an initiation fee and an
initiation fee tax; establish a Defense Fund and pay strike
benefts; establish, revise, amend and Irom time to time
change the Death Beneft Fund and pay regulated benefts
therefrom; supervise the operation of Local Unions, local,
State and Provincial organizations and any other subdivi-
sions and appoint supervisors and receivers when neces-
sary; prefer charges against Local Unions, local, State and
Provincial organizations and any other subdivisions and
oIfcers (individually or collectively) or their members (in-
dividually or collectively) and order trials with authority
to discipline those affected; prefer charges and order tri-
als with authority to discipline any General OIfcer or any
member of the Board of Trustees; register, copyright and
trademark the name oI its oIfcial journal, its emblem and
any document of the organization; establish and maintain a
general headquarters in Washington, D.C.; employ clerical
and other help; employ organizers and deputies; confscate
and sue for the possession of all real and personal property,
paraphernalia, books, charters, records, card indexes, seals
and funds of a Local Union, local, State or Provincial orga-
nization and any other subdivision; establish a General Ex-
9
ecutive Board with full powers of the Convention between
Conventions; include and adopt as part of the Constitution
a procedure for the government and regulation of Local
Unions, subdivisions thereof, local, State and Provincial
organizations and any other subdivisions; establish, defne,
segregate, assign and amend craft jurisdiction and territo-
rial jurisdiction to which Local Unions, their subdivisions,
local, State and Provincial organizations and any other
subdivisions already established or hereinafter chartered
shall confne their activities; establish, enter into, amend or
abrogate understandings or written agreements with other
craIt unions aIfliated with the AFL-CIO; amalgamate
competitive craft unions with the International Union of
Operating Engineers and by such amalgamation compel all
individual oIfcers and members oI the amalgamated union
to be subservient to the Constitution, amendments thereto
and decisions and orders of the General Executive Board
and the General President of the International Union; re-
view and decide appeals Irom decisions properly fled with
it; provide for the general welfare of the organization and
its members; take all steps necessary to protect the inter-
ests of the organization; make all disbursements necessary
or appropriate in the exercise of the above powers or in the
Iulfllment oI the objects and purposes oI the International
Union; together with all other rights, powers, privileges
and immunities not herein specifcally denied.
Method of Holding Conventions
A General Convention of the International
Union of Operating Engineers shall be held
during the month oI April 1988 and every fve (5) years
thereafter during the month of April, or if the logistics of
arranging the Convention so require, during any period
between March 20 and May 10, at such place as the pre-
ceding Convention may determine, unless referred to the
General Executive Board by the Convention for selection.
Art. III.
Section 2.
10
Composition of Convention
The General Convention shall be composed
oI legally elected General OIfcers, members
of the General Executive Board and the Board of Trustees and
the duly elected representative delegates from Local Unions,
and none but these shall be entitled to vote. Local Unions may
choose to elect alternate delegates not to exceed one alternate
Ior every fve delegates nor more than a total oI three alter-
nates. The election of delegates and alternates shall be held at
an election in the said Local Unions in February prior to the
Convention, unless under the provisions of the Local Union
bylaws they are elected prior thereto but in no event more
than one (1) year prior to the frst day oI the Convention, ex-
cept that Local Unions may by their bylaws designate as del-
egates to the Convention not more than six oI their oIfcers,
elected subsequent to the adoption of such bylaws.
The election of delegates shall be conducted by secret
ballot. In order to be eligible to be a candidate for del-
egate, a member must, at the time of nomination, be in
good standing with respect to payment of dues and meet
the requirements contained in the second paragraph of Ar-
ticle XXIV, Subdivision 1, Section (b). In addition, Local
Unions may also impose in their bylaws a requirement that
candidates Ior delegate must fle nominating petitions in
support of their candidacies signed by not more than two-
hundred (200) members or two percent (2%) of the entire
membership, whichever is less. Adequate safeguards to
insure a fair election shall be provided by the Local Union
in accordance with the International Constitution, applica-
ble law, and such rules and regulations as may be promul-
gated by the General Executive Board. The ballots and all
other records pertaining to the election of delegates shall
be preserved Ior one (1) year by the appropriate oIfcial or
oIfcials designated by the Local Union.
Where there are no more candidates nominated for dele-
gates and alternates than are authorized by said local union
signifying no opposition, the secret ballot election may be
Art. III.
Section 3.
11
dispensed with and, in such event, the Recording-Corre-
sponding Secretary shall be directed to cast one ballot for
all the unopposed candidates for delegates and alternates,
who shall then be declared duly elected.
2IFHUVRIWKH*HQHUDO&RQYHQWLRQ
The duly elected General OIfcers oI the
International Union of Operating Engineers
shall be the oIfcers oI the General Convention.
Basis of Representation
The basis of delegate representation shall be
as follows:
Local Union Membership
12
Minimum Maximum #of Delegates
UNDER 251 1
251 500 2
501 900 3
901 1,300 4
1,301 1,700 5
1,701 2,100 6
2,101 2,500 7
2,501 3,000 8
3,001 3,700 9
3,701 4,400 10
4,401 5,100 11
5,101 5,900 12
5,901 6,700 13
6,701 7,500 14
7,501 8,400 15
Art. III.
Section 4.
Art. III.
Section 5.
13
8,401 9,300 16
9,301 10,200 17
10,201 11,200 18
11,201 12,200 19
12,201 13,200 20
13,201 14,200 21
14,201 15,200 22
15,201 16,200 23
16,201 17,200 24
17,201 18,200 25
18,201 19,200 26
19,201 20,200 27
20,201 21,200 28
21,201 22,200 29
22,201 23,200 30
23,201 24,200 31
24,201 25,200 32
25,201 26,200 33
26,201 27,200 34
27,201 28,200 35
28,201 29,200 36
29,201 30,200 37
30,201 31,200 38
31,201 32,200 39
32,201 33,200 40
33,201 34,200 41
34,201 35,200 42
OVER 35,201 One additional delegate per 5,000 members
Each delegate seated and present at the Convention shall
have one vote regardless of the number of members on
which the Local Union has paid per capita tax. The number
of delegates to which a Local Union may be entitled shall
be based on the average number of members on which the
Local Union has paid per capita tax through the month
of September of the calendar year prior to the date of the
Convention. No delegate shall be permitted to represent
more than one Local Union.
Credentials of Delegates
Delegates to the Convention must present
credentials on blanks furnished by the Gen-
eral Secretary-Treasurer, properly attested under the seal
of the Local Union of which they are members in good
standing. To be entitled to have its delegate or delegates
seated and have a vote in a General Convention, both the
delegates and their alternates, as well as the Local Union
represented by them, must not be in arrears in the pay-
ment of the per capita tax or any other indebtedness to
the International Union due on or prior to the 31st day
of December next preceding the Convention. The right of
delegates to be seated in a General Convention shall be
upon report and approval of the Credentials Committee.
An appeal from a decision of the Credentials Committee
may be made to the Convention, and delegates affected
thereby shall not be seated until said appeal shall have
been voted thereon by the Convention.
Expenses of Delegates
The mileage and expenses for the attendance
of delegates to the Convention shall be de-
frayed by the Local Union they represent. In cases of hard-
ship, and upon good cause shown, the Local Union may ap-
peal to the General Executive Board Ior fnancial assistance
in securing representation of a delegate at a Convention.
Art. III.
Section 6.
Art. III.
Section 7.
14
Quorum
A quorum for the transaction of business
shall consist of a majority of the delegates
seated at the Convention.
Appointment of Committees
Upon the opening of the Convention the
General President shall appoint his commit-
tees, except that the Committees on Law, OIfcers` Reports,
Credentials and Resolutions shall be appointed by him pri-
or to the Convention, and report at the call of the General
President. The General Secretary-Treasurer shall furnish the
General President a list of delegates whose Local Unions are
in good standing as required by the Constitution. After the
report of the Committee on Credentials has been acted upon,
the General President shall appoint such other committees
as may be necessary. The members of the committees so
appointed shall receive remuneration for the services they
render in an amount determined by the General President.
$WWHQGDQFHRI*HQHUDO2IFHUV
The General OIfcers, Members oI the
General Executive Board and the Board of
Trustees shall be required to attend all Conventions and
their expenses shall be paid out of the funds of the Inter-
national Union of Operating Engineers. By virtue of his
oIfce each shall be a delegate at large, having one vote,
unless elected as a regular delegate by the Local Union in
which he holds membership.
ARTI CLE I V
GENERAL OFFI CERS
7LWOHVDQG7HUPVRI2IFH
The oIfcers oI the International Union oI
Operating Engineers shall consist of a Gen-
Art. III.
Section 8.
Art. III.
Section 9.
Art. III.
Section 10.
Art. IV.
Section 1.
15
eral President, General Secretary-Treasurer, First General
Vice President, Second General Vice President, Third
General Vice President, Fourth General Vice President,
Fifth General Vice President, Sixth General Vice Presi-
dent, Seventh General Vice President, Eighth General Vice
President, Ninth General Vice President, Tenth General
Vice President, Eleventh General Vice President, Twelfth
General Vice President, Thirteenth General Vice President,
Fourteenth General Vice President, and fve Trustees. Each
OIfcer shall hold oIfce Ior a term oI fve years or until his
successor shall be elected and qualifed, and each shall be
nominated, elected, installed and take oIfce only in the
manner and only at the time hereinaIter specifed.
Nominations
Candidates for the positions of General Of-
fcers shall be nominated at the Convention
on the morning oI the frst day oI the Convention and any
member of the organization who meets the eligibility re-
quirements for Business Manager in his Local Union shall
be eligible Ior oIfce. Beginning with the election conducted
at the General Convention to be held in 2008, the nomina-
tions oI candidates Ior the oIfces oI General President and
General Secretary-Treasurer must be supported by the writ-
ten petition of at least six Local Union delegations, which
shall be submitted to the Chair. Nominations must be made
by delegates from Local Unions seated at the Convention.
(OHFWLRQRI*HQHUDO2IFHUV
The election oI General OIfcers shall take
place at the Convention as the frst order oI
business on the aIternoon oI the frst day oI the Convention.
OIfcers shall be elected by plurality vote, except that the fve
candidates receiving the highest number oI votes Ior the oIfce
of Trustee shall be elected. Elections shall be by roll call vote
where there is more than one candidate Ior any oIfce except
Art. IV.
Section 2.
Art. IV.
Section 3.
16
that oI Trustee, and where there are more than fve candidates
Ior the OIfce oI Trustee. II there is only one candidate Ior any
oIfce other than that oI Trustee and there are no more than
fve candidates Ior the OIfce oI Trustee, there shall be no roll
call vote and such candidate or candidates shall be declared
elected. Each delegate shall be entitled to cast the number of
votes prescribed by Article III, Section 5. However, one del-
egate, unless objection is voiced at the time the Local Unions
number is called by a delegate from such Local Union, may
cast the vote of the entire delegation of such Local Union.
On a roll call vote, the presiding oIfcer shall appoint
three (3) tellers to record, certify and report the results of
the voting Ior each oIfce. The election shall be by written
ballot and conducted in such fashion that until the comple-
tion of the voting, no delegate shall be able to ascertain
the number of votes cast for any candidate. However, the
foregoing requirement shall not prevent delegates from the
same Local Union designating one or more of their number
to perform the physical function of casting the votes of the
delegates from that Local Union.
No candidate (including a prospective can-
didate) Ior General OIfce, and no supporter
oI a candidate Ior General OIfce, may solicit or accept any
direct or indirect fnancial support Irom any non-member
of the International Union of Operating Engineers or from
any foundation, corporation or other entity whose funds
are derived in whole or in part from any person not a mem-
ber of this International Union.
The General Secretary-Treasurer shall pre-
serve for one (1) year the credentials of the
delegates and all minutes and other records of the Conven-
tion pertaining to the election oI oIfcers.
The newly elected General OIfcers shall be
installed immediately upon the conclusion
Art. IV.
Section 4.
Art. IV.
Section 5.
Art. IV.
Section 6.
17
oI the election oI oIfcers at the Convention, and shall as-
sume their oIfcial duties immediately upon installation.
Bonding
Every oIfcer, employee or other represen-
tative of the International Union who han-
dles funds or other property thereof shall be bonded for
the faithful discharge of his duties in such amount and as
otherwise required by applicable law. The expense of such
bond shall be paid by the International Union.
3URWHVWWR(OHFWLRQRI*HQHUDO2IFHUV
Beginning with the election oI oIfcers con-
ducted at the General Convention to be held
in 2008, any protest relating to the nomination and election
oI General OIfcers shall be fled with the chair beIore the
adjournment of the convention. The protest shall set forth
in writing the specifc reasons Ior such protest. The pro-
test shall be referred to the General Executive Board for its
review and determination, including a hearing if necessary.
The General Executive Board shall issue a decision on the
protest within ninety days, and such decision shall be fnal.

Compensation
The salaries of the General Vice Presidents
and International Trustees shall be set at
the General Convention, with their expenses and benefts
to be set by the General President with the concurrence
of the General Executive Board. For the Convention to
be held in 2008, the salaries oI these oIfcers are set as
the salaries they are receiving on the date the Convention
commences. Between Conventions, these oIfcers shall
receive an annual percentage salary increase effective
J uly 1 each year. The annual increase shall be equal to the
percentage of increase in the National Consumer Price In-
dex published by the Department of Labor for the twelve
Art. IV.
Section 7.
Art. IV.
Section 8.
Art. IV.
Section 9.
18
month period ending in the month of May preceding the
J uly increase effective date.
ARTI CLE V
POWERS AND DUTI ES OF THE
GENERAL EXECUTI VE BOARD
The General Executive Board shall consist
of the General President, General Secretary-
Treasurer, First General Vice President, Second General
Vice President, Third General Vice President, Fourth Gen-
eral Vice President, Fifth General Vice President, Sixth
General Vice President, Seventh General Vice President,
Eighth General Vice President, Ninth General Vice Presi-
dent, Tenth General Vice President, Eleventh General Vice
President, Twelfth General Vice President, Thirteenth
General Vice President, and Fourteenth General Vice Pres-
ident, and each member of the Board shall be provided
with an oIfcial seal.
Powers
All the powers of the General Convention
when in session shall, when the same is
not in session, pass to and vest in the General Executive
Board, with the exception of such powers as may herein be
specifcally delegated to the various oIfcers and subdivi-
sions oI the International Union. Specifcally, but not in
limitation of its power, it may initiate amendments to the
Constitution and conduct referendums thereon, and it may
formulate and establish pensions for such of the General
OIfcers oI the International Union oI Operating Engineers
and the employees of the said International Union as the
General Executive Board shall deem worthy, and it may
order that payments be made thereon for the terms allotted,
in such manner as to vest irrevocably the benefts thereoI;
provided, however, that any and all pension applications so
adopted shall be reasonable and nondiscriminatory.
Art. V.
Section 1.
Art. V.
Section 2.
19
9DFDQF\LQ2IFH
In case of death, resignation or removal of
the General President, the General Secre-
tary-Treasurer shall call a meeting of the General Executive
Board within fIteen (15) days, and said Board shall elect
from among its members a General President, who shall
take oIfce immediately Iollowing his election by the Board.
The General Executive Board shall and is hereby ordered to
fll any vacancy occurring in the General Executive Board
or the Board of Trustees. All charges against General Of-
fcers shall be heard and decided by the General Executive
Board. Any member flling a vacancy in the General Execu-
tive Board or Board of Trustees pursuant to the foregoing
sentence must meet the eligibility requirements for nomina-
tion contained in the frst sentence oI Article IV, Section 2.
Meetings
The General Executive Board shall hold
sessions at such places and at such times as
it may decide. It shall meet at the call of the General Presi-
dent, or at the request of three members of the General
Executive Board. In addition to the salary paid to a Gen-
eral OIfcer, the International Union shall compensate and
pay the expenses of the members of the General Executive
Board, as authorized by the General President, in connec-
tion with their participation in General Executive Board
meetings and other authorized work performed by them.
Quorum
A quorum for the transaction of any business
by the General Executive Board shall con-
sist of a majority of the members thereof.
Transacting Business
The General Executive Board may trans-
act any business before it without holding
Art. V.
Section 3.
Art. V.
Section 4.
Art. V.
Section 5.
Art. V.
Section 6.
20
a session and record the votes of the members by mail,
telegram, telephone, facsimile copy, teleconferencing, or
any other technology that allows for communication by the
Board members.
Hearings
The General Executive Board may hold hear-
ings and conduct trials and decide appeals
in connection with any matter, complaint, business or case
coming before it and the decision of the General Executive
Board thereon, and its fndings oI Iacts, shall be fnal, con-
clusive and binding. It shall have full power to determine the
method of procedure and the times and place for the holding
of hearings, trials and appeals, including the power to ap-
point a panel of one or more persons to conduct a full and
fair hearing on any matter on behalf of the Board. Upon the
conclusion of such hearing, the panel shall make a complete
report to the General Executive Board, and the fnal decision
shall be made by the Board. The General Executive Board
shall also be empowered to interpret the provisions of this
Constitution and decide questions of law arising thereunder.
Defense of Litigation
The International Union is authorized, upon
aIfrmative vote oI the General Executive
Board, to pay all expenses for investigation services, em-
ployment of counsel and other necessary expenditures in
any cause, matter, case or cases where an International
oIfcer, representative, employee, agent or one alleged to
have acted on behalf of the International is charged with
any violation of any law or is sued in any civil action with
respect to any matter arising out of his duties, except if
such oIfcer, representative, employee or agent is charged
with a breach oI his trust to the International or any aIfli-
ate or member thereof, in which event he may be indemni-
fed only iI the action is terminated Iavorably to him.
Art. V.
Section 7.
Art. V.
Section 8.
21
ARTI CLE VI
GENERAL PRESI DENT
$V3UHVLGLQJ2IFHURI&RQYHQWLRQ
It shall be the duty of the General President
to preside at all meetings of the General
Convention. At least thirty (30) days prior to the holding
of a General Convention he shall publish all decisions ren-
dered by him during his term oI oIfce and shall mail cop-
ies oI same to each Local Union in suIfcient numbers to
allow a copy for each delegate to the Convention.
To Review Cases and I nterpret Laws, Etc.
He shall review all cases, complaints and
charges fled with the General Executive
Board or the General Secretary-Treasurer. He shall be em-
powered to render decisions on the merits of such cases,
complaints and charges and his fndings on the Iacts shall
be fnal and conclusive. He shall also be empowered to in-
terpret the provisions of the Constitution and decide ques-
tions of law arising thereunder. He shall be vested with all
the administrative powers of the organization.
To I nvoke and Administer I nternational
Supervision and Other Peremptory Powers
The General President shall have the power
to require Local Unions, Local OIfcers
and any other subdivision of the International Union and
members to comply with this Constitution and any law-
ful rulings or orders of the International Union. For the
purpose oI correcting corruption or fnancial malpractice,
assuring the performance of collective bargaining agree-
ments or other duties of a bargaining representative, restor-
ing democratic procedures, or otherwise carrying out the
legitimate objects of the International Union, including the
Art. VI.
Section 1.
Art. VI.
Section 2.
Art. VI.
Section 3.
22
observance of the Ritual, Obligation, law, rules or deci-
sions of the organization or its duly constituted authorities,
he shall have full power to suspend or remove such Local
oIfcers, suspend or revoke charters oI such Local Unions
or place such Local Unions and their oIfcers and members
under International Supervision. He shall have power to
designate and appoint persons to fll the places oI those Lo-
cal oIfcers oI Local Unions suspended, removed or placed
under International Supervision, which appointees shall
conduct the affairs over which they have been appointed
for such time and in such manner as he may direct. All of
the business, fnances, aIIairs and government oI any Lo-
cal Union whose charter shall have been suspended by the
General President or shall have been placed under Interna-
tional Supervision by him, shall be fully and completely
conducted and administered by the General President or
his deputy thereunto appointed with full power of control
therein and thereover. During such suspension or Interna-
tional Supervision all rights and powers of the Local Union
to conduct its own affairs shall be suspended. He or his
deputy shall countersign all vouchers and checks for pay-
ment of monies or for withdrawing funds from the bank.
He shall have power to appoint Local oIfcers pro tem and
all committees not otherwise provided for, to deputize any
member in good standing to perform any of the powers and
duties oI his oIfce.
Whenever the General President exercises his power
under this Section to suspend or remove Local oIfcers,
suspend or revoke charters of Local Unions, or place such
Local Unions and their oIfcers and members under Inter-
national Supervision, a hearing shall be held before him or
his authorized representative, to determine the necessity
for taking such action, with the General President making
the ultimate decision. Reasonable notice of such hearing
shall be aIIorded the oIfcers and members oI the subordi-
nate union involved. If the General President determines
that an emergency exists requiring immediate action to be
23
taken prior to a hearing, he may take such action, but the
hearing shall be held within a reasonable time thereafter. In
all other cases the action will not be taken until a hearing
has been held.
Failure of the General President to exercise the author-
ity vested in him under this Section shall not in itself be
considered as authorization Ior, or ratifcation or condona-
tion of, any act or any failure to act on the part of any Local
Union or other subdivision of the International Union, or
their oIfcers, employees, members or agents.
To I ssue Charters, Require Mergers, and
Appoint Representatives, and Negotiate and
Enter I nto Agreements
He shall be vested with full discretionary
power to issue charters. Subject to the ap-
proval of the General Executive Board, he shall have the
power, on such terms as he determines to be appropriate,
to require the merger of Local Unions and to merge other
labor organizations into the International Union. He shall
have power to appoint Representatives of the International
Union in such localities as shall appear to him to be for the
best interest of the organization, as well as International
Monitors of the administration of Local Unions. He shall
have the authority to negotiate and enter into collective
bargaining agreements binding on the Local Unions.
As Chairman of General Executive Board, Etc.
He shall preside as chairman of the General
Executive Board and shall make a full report
oI the work in his oIfce at each Board meeting. He shall
devote his Iull time to the duties oI his oIfce. He shall have
power to call upon any and all subdivisions, oIfcers and
members for assistance and advice when occasion demands
or requires it. He shall be strictly accountable and respon-
sible for the faithful performance of his duties and shall ad-
Art. VI.
Section 4.
Art. VI.
Section 5.
24
minister and enforce every law, rule, regulation and require-
ment of the Constitution, Ritual and Obligation. He shall
be vested with unlimited discretion in the application and
administration of his powers and duties. He shall be vested
with such other powers and duties as the General Executive
Board may Irom time to time specifcally delegate to him.
Hearings for Members
Any and all members, Local oIfcers and
Local Unions affected or aggrieved by an
act or decision of the General President, may demand a
hearing thereon before the General Executive Board, with
appeal to the General Convention in the manner hereinaf-
ter prescribed.
Compensation
The salary of the General President shall
be set at the General Convention, with his
expenses and benefts to be set by the General Executive
Board. For the Convention to be held in 2008, the salary
of the General President is set as the salary he is receiving
on the date the Convention commences. Between Conven-
tions, the General President shall receive an annual percent-
age salary increase effective J uly 1 each year. The annual
increase shall be equal to the percentage of increase in the
National Consumer Price Index published by the Depart-
ment of Labor for the twelve month period ending in the
month of May preceding the J uly increase effective date.
The General President shall, by virtue oI his oIfce, be one
of the delegates representing this Organization at the Conven-
tions of the AFL-CIO or sessions of any of its departments.
To Make Visitations
Should any Local Union be involved in
trouble or submit grievances to the Gen-
eral President or the General Executive Board, the Gen-
Art. VI.
Section 6.
Art. VI.
Section 7.
Art. VI.
Section 8.
25
eral President shall visit such Local Union in person or
send a deputy.
Vested With All Powers of
General Executive Board in I nterim, Etc.
All powers heretofore vested in the Gen-
eral Executive Board when in session shall,
when the same is not in session, pass to and vest in the
General President. All of the acts and decisions of the Gen-
eral President shall be reviewable by the General Execu-
tive Board and shall continue in full force and effect until
revoked by action of the General Executive Board.
ARTI CLE VI I
POWERS AND DUTI ES OF
VI CE PRESI DENTS
The General Vice Presidents of the Interna-
tional Union of Operating Engineers shall be
members of the General Executive Board. They shall assist
the General President in the discharge oI his oIfcial duties
in such manner as he may direct and shall have such other
powers and duties as Irom time to time may be specifcally
delegated to them by the General Executive Board.
ARTI CLE VI I I
GENERAL SECRETARY-TREASURER
To Keep Record of Minutes
The General Secretary-Treasurer shall keep
a correct record of the minutes and proceed-
ings of the General Convention and of the General Execu-
tive Board. On the frst day oI January preceding a General
Convention he shall notify all Local Unions of the holding
thereof, which notices shall set forth the provision of the
Constitution relating to the basis of representation of del-
egates to the General Convention.
Art. VI.
Section 9.
Art. VII.
Section 1.
Art. VIII.
Section 1.
26
To Collect and Pay Monies
He shall collect and receive all monies and
funds due from all Local Unions, subdivi-
sions, oIfcers, members or other persons to the General
OIfce and deposit the same in such bank or banks as may
be designated by the General Executive Board. He shall
have custody oI the OIfcial Seal. He shall issue all draIts
and checks in payment of general expenses, salaries and
other bills in the manner and form provided by the General
Executive Board and shall take receipts therefor. He shall
maintain a General OIfce Membership and perIorm the
duties incident thereto.
Furnish Bond and Make I nvestments
He shall give bond for the faithful perfor-
mance of his duties. Such bond shall be in
such amount and with such bonding companies as required
by applicable law. He shall, when authorized by the Gen-
eral Executive Board, invest the funds of the International
Union in the manner and form directed.
Membership Records and Monthly Reports
He shall keep a correct record of the mem-
bership of each Local Union and subdivi-
sion and issue quarterly to each Local Union a report as to
his receipts and disbursements. He shall make a monthly
report to the General President and the General Executive
Board and the Board of Trustees. He shall transmit to the
Financial Secretaries of Local Unions per capita tax dues
stamps or other appropriate record of payment, as provided
for in this Constitution and shall keep a record thereof.
Compensation
The salary of the General Secretary-Trea-
surer shall be set at the General Convention,
Art. VIII.
Section 2.
Art. VIII.
Section 3.
Art. VIII.
Section 4.
Art. VIII.
Section 5.
27
with his expenses and benefts to be set by the General Ex-
ecutive Board. For the Convention to be held in 2008, the
salary of the General Secretary-Treasurer is set as the sal-
ary he is receiving on the date the Convention commences.
Between Conventions, the General Secretary-Treasurer
shall receive an annual percentage salary increase effec-
tive J uly 1 each year. The annual increase shall be equal to
the percentage of increase in the National Consumer Price
Index published by the Department of Labor for the twelve
month period ending in the month of May preceding the
J uly increase effective date.
Editor of the J ournal
He shall edit and distribute the oIfcial jour-
nal subject to recommendations of the Gen-
eral Executive Board and the General President and shall
promptly publish therein a record of the amendments to the
International Constitution adopted by a General Convention
and allow reasonable space for the inclusion of articles sub-
mitted by Local Unions upon any measure submitted to vote
of the membership. He shall distribute to each Convention
delegate a copy of the record of the proceedings and mea-
sures adopted by a General Convention promptly thereafter.
Reports to General Convention
He shall, each month, pay all per capita tax-
es due from this organization to the AFL-
CIO or other bodies with which this organization may be
aIfliated. He shall make a Iull report oI all matters relating
to his oIfce, his oIfcial acts and work, the amount oI mon-
ies received and disbursed by him, the balance on hand and
where deposited, to each General Convention.
Accounting for Stewardship
He shall at the end oI his term oI oIfce
deliver to the Board of Trustees all books,
Art. VIII.
Section 6.
Art. VIII.
Section 7.
Art. VIII.
Section 8.
28
monies, property and other belongings of the Interna-
tional Union in his keeping. His books, records, transac-
tions and affairs shall always be open for inspection by
the General OIfcers.
Delegate to AFL-CI O, Etc.
He shall, by virtue oI his oIfce, be one oI
the delegates to represent the International
Union at the convention of the AFL-CIO or its depart-
ments. He shall devote his full time to the duties of his
oIfce and shall have such other and Iurther duties as may
from time to time be delegated or assigned to him by the
General Executive Board.
ARTI CLE I X
BOARD OF TRUSTEES
Composition of Board
There shall be a Board of Trustees consist-
ing oI fve members elected in the manner
hereinbefore stated. One of the members of the Board
shall be elected by the Board to serve as Chairman there-
oI during the term oI his oIfce as a Trustee.
Meetings of the Board
Meetings of the Board of Trustees shall
be held from time to time as the members
thereof may designate or upon call of the General Ex-
ecutive Board.
Quorum
A quorum for the transaction of business
by the Board of Trustees shall consist of a
majority of the members thereof.
Art. VIII.
Section 9.
Art. IX.
Section 1.
Art. IX.
Section 2.
Art. IX.
Section 3.
29
Powers and Duties of the Board of Trustees
The Board of Trustees shall be the auditors
of both the General Executive Board and
the General OIfcers oI the International Union oI Operat-
ing Engineers. They shall audit the books of the General
Secretary-Treasurer at least once every six months and
report thereon to the General Executive Board. They shall
render a report of their duties to the General Convention.
They shall take an annual inventory of the property belong-
ing to the International Union of Operating Engineers and
shall see that the fnances oI the International Union are
safeguarded by proper bonds. They shall audit and examine
all bills, expenditures and expense accounts and all receipts
oI the General OIfce. They shall recommend to and advise
the General Executive Board and the General OIfcers upon
bookkeeping methods and accounting systems. They shall
be the custodians oI all bonds oI General OIfcers. Upon
the termination oI oIfce oI any General OIfcer or upon a
vacancy occurring among the General OIfcers, they shall
receive and hold the funds, books, papers, documents and
other property in the possession oI the said oIfcer or oIf-
cers and turn the same over to the General OIfcer succeed-
ing to said position upon being given proper receipt. They
shall perform such other duties as from time to time may be
delegated and assigned to them by the General Convention,
the General Executive Board or the General President.
ARTI CLE X
MEMBERSHI P
4XDOLFDWLRQV
Any engineer engaged in the craft over which
this organization exercises craft jurisdiction,
or other person who may qualify to become a junior engineer,
assistant engineer, or registered apprentice engineer therein,
and any other engineer engaged as an inspector of boilers or
other machinery or as an examiner of engineers, or any other
Art. IX.
Section 4.
Art. X.
Section 1.
30
person, may upon application, acceptance and initiation in
the manner and form required in this Constitution, become a
member of the International Union of Operating Engineers.
No person who is otherwise eligible under the qualifcations
fxed herein, but who is opposed to organized labor, shall be
admitted to membership. No person shall be denied mem-
bership on the basis of race, creed, color, sex, religion, age
or national origin. No applicant for membership shall apply
to or be accepted by any Local Union other than the one
within the jurisdiction in which he is employed unless such
Local Union shall consent to his aIfliation therewith.
Minimum and Maximum I nitiation Fees and Dues
The minimum initiation fee in all Local
Unions shall be not less than Five Dollars
($5.00) per applicant. The minimum monthly dues in all
Local Unions that do not charge administrative, supple-
mental or working dues, shall not be less than $15.75 per
month per active member effective J uly 1, 2008, $16.25
per month per active member effective J uly 1, 2009,
$16.75 per month per active member effective J uly 1,
2010, $17.25 per month per active member effective J uly
1, 2011, and $17.75 per month per active member effective
J uly 1, 2012. Maximum initiation fees and maximum dues
charged by Local Unions to their applicants or members
may, Irom time to time, be fxed by the General President.
No proposed increase in initiation fees may be voted upon
by a Local Union unless and until the proposed increase is
approved by the General President.
ARTI CLE XI
I NCOME OF I NTERNATI ONAL UNI ON
Per Capita Tax
Each Local Union must pay the General
Secretary-Treasurer a per capita tax of
$8.75 per month effective J uly 1, 2008, $9.25 per month
Art. X.
Section 2.
Art. XI.
Section 1.
31
effective J uly 1, 2009, $9.75 per month effective J uly 1,
2010, $10.25 per month effective J uly 1, 2011, and $10.75
per month on and after J uly 1, 2012 for each member of the
Local Union and its Subdivisions who has not been report-
ed to the General Secretary-Treasurer as suspended, with-
drawn, transferred or expelled, and in addition an amount
equal to the per capita tax must be paid for each person
making payments to the Local Union in lieu of dues under
agency shop or similar provisions. The per capita tax re-
port signed by the Financial Secretary must be transmitted
to the General Secretary-Treasurer on or before the last day
of the month following that for which the per capita tax is
due. Locals shall fle their per capita tax reports electroni-
cally in a form compatible with the International Unions
system, starting no later than the report due for the month
of J anuary 2011. The International will provide assistance
to Locals for the transition to electronic reporting.
A payment computed on the closing membership for the
month ($8.75 per month effective J uly 1, 2008, $9.25 per
month effective J uly 1, 2009, $9.75 per month effective
J uly 1, 2010, $10.25 per month effective J uly 1, 2011, and
$10.75 per month on and after J uly 1, 2012) and the ini-
tiation fee tax (25% of the current initiation fee) on each
member initiated for the month, must be submitted with
the per capita tax report. Thereafter, the General Secretary-
Treasurer shall transmit to the Financial Secretary a receipt
for the initial amount remitted with a statement covering
the remaining amounts due for the month for which the per
capita tax was fled, Ior assessments and back per capita
tax on suspended members reinstated, expelled members
reinstated, members admitted on withdrawal cards, per
capita tax for members deducted deceased and members
deducted on withdrawal cards and differences of initiation
fee tax. The per capita tax due shall immediately be re-
mitted to the General Secretary-Treasurer by the Financial
Secretary. The General Secretary-Treasurer shall return a
receipt covering payment of balances due. Upon the com-
32
mencement oI electronic fling oI per capita tax reports,
the General Executive Board shall modify the procedure
herein to be compatible with electronic reporting, and shall
include in any such procedure a provision for the charging
of 5% simple interest upon any per capita tax that is more
than one month overdue.
Distribution of Per Capita Tax
The General Executive Board shall main-
tain a General Fund, a Death Beneft Fund,
a Defense Fund, a General Pension Fund, and such other
Funds as it may determine. The per capita tax received for
each member and other income of the International Union
shall be allocated among these Funds as the General Ex-
ecutive Board shall determine.
Charter Fees and Assessments
Before the issuance of any charter to a Local
Union, the Financial Secretaries in the cases
of existing Local Unions and the applicants for charters in
all other instances shall forward to the General Secretary-
Treasurer the following:
(a) Charter Fee Twenty-fve ($25.00) Dollars.
(b) Assessment for each signatory to application
One ($1.00) Dollar.
The same charter fee shall be paid in the case of the
issuance of a charter to any other subdivision of the Inter-
national Union, except that in the case of subdivisions of
Local Unions the charter fee paid by Local Unions shall
be Ten ($10.00) Dollars except for an 0 branch charter
which shall be issued without fee.
I nitiation Fee Taxes and I nternational I nitiation Fees
The Financial Secretaries of Local Unions
shall forward to the General Secretary-
Treasurer with the report required by this Article for the
Art. XI.
Section 2.
Art. XI.
Section 3.
Art. XI.
Section 4.
33
month in which new members have been initiated into
membership in the Local Union or any subdivision thereof
the following for each newly initiated member:
Initiation Fee Tax Twenty-fve (25) percent upon the
initiation fee established as of the date of reporting the new
member. The initiation fee shall be deemed to include all
fees, assessments and other charges required to be paid
upon admission to membership howsoever identifed,
but shall not be deemed to include any assessment for the
maintenance oI a Local Union death beneft Iund.
Reinstatement Assessments
The Financial Secretaries of Local Unions
shall forward to the General Secretary-
Treasurer with the report required for the month in which
members are reinstated the following:
(a) Five ($5.00) Dollars for each member reinstated to
membership who has held a withdrawal card as provid-
ed in Article XV.
(b) Five ($5.00) Dollars for each member reinstated to
membership after suspension or expulsion, plus capita
tax for each month required, and such other charges as
may be provided for in Article XXIV.
Other Fees, Taxes and Assessments
Subject to applicable laws, other fees, taxes,
assessments and other charges for obtaining
income for the International Union for any purpose may be
increased, decreased, changed or added from time to time by
the General Convention or the General Executive Board.
ARTI CLE XI I
TERRI TORI AL J URI SDI CTI ON
The territorial jurisdiction of any Local
Union heretofore or hereafter established
shall be such as described on the face of the charter issued
Art. XI.
Section 5.
Art. XI.
Section 6.
Art. XII.
Section 1.
34
to such Local Union, together with any limitations, exten-
sions and restrictions regarding such territorial jurisdiction
as may be added thereto. No charter to a Local Union shall
hereafter be granted unless the same shall distinctly state
upon its surface a description of the territorial jurisdiction
conIerred, qualifed by a statement that such territorial ju-
risdiction so conferred may be amended, restricted, or en-
larged by the International Union of Operating Engineers.
ARTI CLE XI I I
CRAFT J URI SDI CTI ON
Division of J urisdiction
J urisdiction of the International Union of
Operating Engineers shall include but not
be limited to persons engaged in the following crafts:
(a) Stationary Engineers Craft J urisdiction:
All persons engaged in supervising, controlling, operat-
ing or assisting in operating, maintaining or assisting in
maintaining (including apprentices to the craft) all boilers,
nuclear reactors (fssion or Iusion types), solar or geother-
mal equipment or other devices (irrespective of pressure or
heat source and including hot water and/or other hot liquid
or gas systems); pressure vessels, engines (both internal
and external combustion types), turbines (hydro, steam and
gas types), motors, pumps, air compressors, generators, al-
ternators, refrigeration and/or air conditioning machines,
units, plants and systems (including cryogenic equipment
and systems), fans and ventilating systems, siphons, heat-
ing systems and all components thereof, bridges (including
turntable, jack-knife and span-lift types), and any and all
instrumentation and controls (including remote instrumen-
tation and controls) used on or in the above equipment,
devices or systems including all equipment, controls and
instrumentation used in the handling, preparing and deliv-
ery of fuel (irrespective of type) from and/or to storage
bins, yards, tanks or reservoirs up to and into the equip-
Art. XIII.
Section 1.
35
ment using, consuming or converting the fuel (irrespective
of the motive power); (all instrumentation, controls and
appurtenances utilizing energy Irom nuclear fssion or Iu-
sion and its products, such as radioactive isotopes, includ-
ing materials and processing); the supervision, operation
and maintenance of all of the above when connected with
and/or used in power and plant operation in all govern-
mental, commercial and industrial activity including but
not limited to railroads, utilities (public and private), hy-
droelectric plants, water fltration and purifcation plants,
pump stations, reservoirs, control centers, garbage dispos-
al plants and incinerators, waste water purifcation plants
and systems (both active and passive types), fuel conver-
sion plants or processes, breweries, distilleries, canneries,
reduction plants, legitimate and motion picture theaters,
ice and cold storage plants, coal yards, dairies, creamer-
ies, and other dairy products plants, oIfce and municipal
buildings, schools, hotels, apartment hotels, apartment
houses and condominiums, hospitals, department stores,
laundries, metal and other junk yards and junk segregating
plants, oil drilling, refning and producing plants (includ-
ing control of pressure and temperature of gases, liquids
and otherwise), chemical and petro-chemical plants, and
pipe line pumping and boosting stations; the operation of
valves, gates, locks and all machinery on dams or spill-
ways; and bakeries, paper and pulp mills, newsprint plants,
shipbuilding and ship repair yards; and all other persons
engaged in capacities other than supervising, operating or
maintaining capacities in the aforementioned plants, sys-
tems, industries, services and/or institutions.
(b) Hoisting & Portable Engineers Craft J urisdiction:
All persons engaged in supervising, controlling, erect-
ing, dismantling and repairing, operating or assisting in
operating, erecting, dismantling, or the repairing of, all
hoisting and portable machines, all refrigerating machines
or units and engines used on open and heavy construction
work; all hoisting and portable machines and engines used
36
in or upon wrecking, digging, boring, soil testing, building
and erecting foundations, buildings, tunnels and subways,
dams, reservoirs, disposal plants, bridges, railroads, streets
(paving and repair), road building construction (including
grading, repair and surveying), sewers, water, gas and oil
lines, allotment development construction, harbor and river
dredging, the construction and repair of all docks, wharves,
piers, shipyards, and seawalls, all sand, gravel and stone
pits; quarries and material yards (permanent and temporary,
sand, rock and gravel screening machines; motor genera-
tors (when used for welding and cutting or for converting
or transforming electric currents, irrespective of their mo-
tive power); all machines used to sweep, clean and remove
debris and snow from streets and roads; all mine hoists,
telphers, grab buckets, pumps, siphons, pulsometers, gen-
erators, concrete mixers (irrespective of capacity), concrete
pumps of all sizes and capacities, stone crushers, air com-
pressors, all water-test and blast-hole drilling machines; all
sandblasting and other machines and boilers used in the
cleaning and washing of buildings; all boilers (irrespec-
tive of size) used for furnishing temporary heat on build-
ings under construction, or for the heating of materials, or
heating water, or furnishing steam for the operation of all
machines, engines and other appurtenances herein speci-
fed; all locomotive, tractor and truck type cranes; all der-
ricks, boom hoists (of all descriptions and capacities), and
automatic hoists; house and all elevator (permanent and
temporary) used for hoisting building material or lowering
debris or carrying workmen Irom foor to foor in buildings
under construction and repair; all street rollers, steam and
other motive power shovels; all Le Tourneu and other types
of scoops, pull shovels, mucking machines, draglines and
cableways; all clam-shell and orange peel buckets when
used in connection with any machine or with derrick or
boom hoist for excavating, handling, storing, loading or
unloading materials; all land and foating pile drivers, foat-
ing derrick barges and boats, foating and selI-propelled
37
dredges and rock drilling plants; all dinkey and standard
locomotives, derrick cars, tractors and all tractor-propelled
machinery; all power and elevator graders, scarifers, bull-
dozers, Barber Green loaders, all trenching and ditching
machines, all mechanical hoe-type machines, back fllers
and conveyors; all cranes, derricks, machines, engines and
boilers used in asphalt and concrete mixing plants and all
other engines and machines (irrespective of motive power)
used on building and construction work, or in the loading,
unloading or storage of commodities at or in terminals; all
persons engaged in supervising, controlling, operating or
assisting in operating, maintaining and assisting in main-
taining all facilities, including all instrumentation and ap-
purtenances utilizing energy Irom nuclear fssion or Iusion,
and its products, such as radioactive isotopes, all electroni-
cally controlled construction equipment, all nuclear pow-
ered equipment including all drilling for nuclear operations
and methods, all equipment used in oil drilling, all Laser
beams, all emulsion distributing machines, and all remote
control machinery used in operating equipment; all persons
engaged in or assisting in surveying; all operation and ser-
vicing of helicopters used in construction.
The General Executive Board may from
time to time as it deems proper for the pro-
tection of the jurisdiction of the International Union of
Operating Engineers exercise and maintain jurisdiction
over persons engaged in work other than described in this
Article, including but not limited to public employees, and
such jurisdiction over such persons shall have the same
Constitutional Iorce and eIIect as though Iully defned and
set forth in this Article.
&RQLFWRI-XULVGLFWLRQ
In cases where there shall be confict be-
tween the craft jurisdiction of the Stationary
Engineers Branch and the craft jurisdiction of the Hoist-
Art. XIII.
Section 2.
Art. XIII.
Section 3.
38
ing and Portable Engineers Branch of this organization
and one of said branches has already assumed certain craft
jurisdiction of the other branch and has organized the same
and entered into contractual relations with third parties in-
volving such craft jurisdiction, such status may remain as
now in effect.
ARTI CLE XI V
CHARTERS
&ODVVLFDWLRQRI&KDUWHUV
Charters of the International Union of Op-
erating Engineers may be granted to Local
Unions, District Councils, Local J oint Executive Boards,
Local, State and Provincial Organizations, to Local Unions
for J unior and Assistant Engineers Subdivisions, Regis-
tered Apprentice Engineers Subdivisions, and Branch En-
gineers Subdivisions, and to such other subdivisions as
may from time to time be authorized and established.
Application for Charters
An application for a charter of a Local
Union shall be upon the form prescribed by
the International Union of Operating Engineers and shall
be signed by not less than fIteen (15) applicants, none oI
whom shall be members of the International Union, which
requirements may be changed by the International Union.
The requirements for all other applications for charters
shall be established by the General Executive Board.
4XDOLFDWLRQRI$SSOLFDQWV
Upon receipt of an application for a charter,
the General President shall proceed to sat-
isIy himselI that the applicants are qualifed, and iI Iound
to be so he shall direct the General Secretary-Treasurer to
issue the charter. In the formation of new Local Unions
the members thereof shall be charged such charter fees,
Art. XIV.
Section 1.
Art. XIV.
Section 2.
Art. XIV.
Section 3.
39
entrance fees and organization fees as the International
Union shall establish.
J unior and Assistant Subdivisions, Registered
Apprentice Subdivisions and Branch Subdivisions
Local Unions as such may make application
for sub-charters covering junior and assis-
tant engineers, registered apprentice engineers and branch
engineers in such manner and form as prescribed by the
International Union and the said sub-charters shall confer
no greater craft jurisdiction than that held by the parent
Local Union making such application.
Government of J unior and Assistant Engineers
Subdivisions, Registered Apprentice Subdivisions
and Branch Engineers Subdivisions
Any J unior and Assistant Engineers Sub-
division, Registered Apprentice Engineers
Subdivision or Branch Engineers Subdivision heretofore
or hereafter created by the sub-charters referred to in this
Article, shall function under the direction and control of
the parent Local Union to which the same belongs. They
shall be accountable to and function under their parent
Local Union and they shall respond to, be under the con-
trol of and be governed by the said parent Local Union;
provided, however, that the members of the said J unior
and Assistant Engineers Subdivision, Registered Appren-
tice Engineers Subdivision and the Branch Engineers
Subdivision, if in good standing as required by the Inter-
national Union and credited with their per capita tax paid
to and remitted by the parent Local Union, may vote upon
such referendums as shall be submitted to the parent Local
Union for them by the International Union. They shall be
entitled to such participation in the Death Beneft Fund as
may be provided for them by the International Union. Ex-
cept as otherwise provided in this Constitution, they may
Art. XIV.
Section 4.
Art. XIV.
Section 5.
40
not hold oIfce in their parent Local Union. There shall be
no oIfcers in the subdivisions.
Branch engineers and junior and assistant engineers
shall have equal rights to nominate, vote for and be del-
egates to General Conventions and to State, Interstate and
Provincial Organizations. They shall have equal rights to
nominate candidates and to vote in elections and referen-
dums of the parent Local Union, to attend its membership
meetings, and to participate in the deliberations and busi-
ness of such meetings. Members of Registered Apprentice
Engineers Subdivisions shall have equal rights to vote for
delegates to General Conventions and to State, Interstate
and Provincial Organizations, to vote in elections and
referendums of the parent Local Union, and to attend its
membership meetings.
A Local Union may provide in its bylaws that any per-
son applying for membership in a J unior and Assistant
Engineers Subdivision or a Branch Engineers Subdi-
vision shall, as a condition of acceptance and continua-
tion of membership in such subdivisions, agree to pay in
three yearly installments any differential in the initiation
fee charged for membership in such Subdivision and that
charged for membership in the parent Local Union. Upon
the expiration of the three year period and upon payment
in full of the differential in the initiation fee, if any, such
member shall be transferred into the parent Local Union
and shall, iI otherwise qualifed, be eligible Ior nomina-
tion and election to oIfce in the parent Local Union.
Any member initiated into a J unior and Assistant En-
gineers Subdivision or a Branch Engineers Subdivision
whose membership therein continues for two consecu-
tive years immediately prior to election shall be eligible,
whether or not he has transferred into the parent Local
Union, Ior nomination and election to oIfce in the parent
Local Union iI he is otherwise qualifed under the provi-
sions of the International Constitution.
41
'HQLWLRQRI-XQLRUDQG$VVLVWDQW(QJLQHHUV
Junior and assistant engineers are defned as
including all persons who work at the craft
over which this organization exercises craft jurisdiction
and who begin as oilers, fremen, or helpers under such
tutelage and guidance as a parent Local Union may direct.
'HQLWLRQRI5HJLVWHUHG$SSUHQWLFH(QJLQHHUV
Registered apprentice engineers are defned
as including all persons who aspire through
training, effort and application to become masters of the
craft over which this organization exercises craft jurisdic-
tion and who are indentured as registered apprentice en-
gineers under such tutelage and guidance as a parent Lo-
cal Union may arrange. Registered apprentice engineers
shall be admitted to the Registered Apprentice Engineers
Subdivision under the following conditions: (a) successful
completion of a probationary period as an indentured ap-
prentice, not to exceed six months; (b) tender of the regu-
lar, uniform initiation fee established for the Registered
Apprentice Engineers Subdivision. Registered apprentice
engineers shall be entitled to transfer to the parent Local
Union or to the appropriate branch of their Local Union
upon application and Iulfllment oI the Iollowing require-
ments: (a) successful completion of a uniform period of
apprenticeship within a Local Union as a member of a Reg-
istered Apprentice Engineers Subdivision; (b) successful
demonstration of capacity to meet reasonable and uniform
qualifcations as journeymen engineers as prescribed by
the parent Local Union; and (c) tender of any differential in
the initiation Iee and dues fxed Ior membership in the par-
ent Local Union or the appropriate branch, as the case may
be. Cancellation of an apprentices agreement, for a just
cause, aIter written and specifc notice and a Iull and Iair
hearing by the apprenticeship committee, shall automati-
cally cancel his membership in the International Union of
Art. XIV.
Section 6 (a).
Art. XIV.
Section 6 (b).
42
Operating Engineers and in the Local Union.
The apprenticeship committee shall notify the Financial
Secretary of the Local Union of all such cancellations.
Other provisions of this Constitution notwithstanding,
there shall be no appeal to the International Union by a reg-
istered apprentice engineer, for cancellation of his member-
ship through action of the apprenticeship committee.
'HQLWLRQRI%UDQFK(QJLQHHUV
Branch Engineers are defned as those
persons who, qualifed by craIt to be-
come members of the International Union of Operating
Engineers, may desire to be constituted a Subdivision
thereof through the application of a parent Local Union
and who are employed in any class of employment ex-
istent within the territorial jurisdiction of a parent Local
Union which class of employment shall not have be-
come organized nor be engaged in employing members
of said parent Local Union.
Property of Local Unions
Membership books and/or cards, the charter,
seal and all books and other paraphernalia
shall be the property of the International Union and shall
be delivered to the General President of the International
Union upon demand by the General Executive Board, or
by order of the General Convention.
If at any time a Local Union or other sub-
division shall withdraw, lapse, dissolve, be
suspended, placed under supervision or expelled from the
International Union, or shall have its charter revoked, all of
its real and personal property, paraphernalia, books, char-
ter, seal, records, card indexes and funds shall immediately
revert to the International Union and the General President
shall at once, in person or by deputy, take possession of
Art. XIV.
Section 7.
Art. XIV.
Section 8 (a).
Art. XIV.
Section 8 (b).
43
such property, paraphernalia, books, charter, seal, records,
card indexes and funds of said Local Union or other sub-
division, all of which he or his deputy shall receipt for,
and he or his deputy shall forward the same to the General
OIfce or hold as directed.
The oIfcers and members oI said Local
Union or other subdivision, individually
and collectively, shall be held strictly responsible for all
such property, paraphernalia, books, charter, seal, records,
card indexes and funds until they are turned over to the
General President or his authorized representative and re-
ceipted for.
They shall be individually and collectively
accountable therefor to the International
Union, and suit may be instituted through the General
President to recover the real and personal property, para-
phernalia, books, charter, seal, records, card indexes and
funds, or for money damages if any of them have been
concealed or destroyed.
All supplies necessary for the proper func-
tioning of Local Unions shall be uniform,
and all Local Unions must secure such supplies from the
General Secretary-Treasurer, application to be made there-
Ior on the oIfcial order blank, accompanied by the neces-
sary monies to cover the cost of the same, and no Local
Union, under penalty of expulsion, shall furnish any other
Local Union with any of such supplies, nor use any such
supplies unless furnished by the International Union.
Form of Charter
No charter to a Local Union shall hereafter
be granted unless the same shall distinct-
ly state upon its face a description of the territorial and
craIt jurisdiction conIerred, qualifed by a statement that
Art. XIV.
Section 8 (c).
Art. XIV.
Section 8 (d).
Art. XIV.
Section 8 (e).
Art. XIV.
Section 9.
44
such territorial and craft jurisdiction so conferred may be
amended, restricted or enlarged by the International Union.
Charters issued in accordance with this Article shall be in
such form as the General Executive Board shall prescribe,
consistent with the Constitution and laws of the Interna-
tional Union of Operating Engineers.
ARTI CLE XV
TRANSFER AND CLEARANCE CARDS,
SERVI CE DUES, WI THDRAWAL CARDS
AND GENERAL OFFI CE MEMBERSHI P
Transfer Cards
When a Local Union has been dissolved,
suspended, or when its charter has been re-
voked or surrendered or otherwise becomes inoperative,
any member in good standing of such Local Union may,
through the General Secretary-Treasurer, upon application
to and by consent of a majority of the General Executive
Board, be given a transfer card which will entitle him to
make application for admission to the nearest Local Union
in his vicinity.
Clearance Cards
Any member desiring a clearance card for
the purpose of transferring his membership
to another Local Union shall apply to the Financial Sec-
retary of his Local Union, and if such member is in good
standing in his Local Union, and no charges are pending
against him, the Financial Secretary shall grant a clearance
card upon the payment by the member of any unpaid dues,
or other obligations, plus One ($1.00) Dollar for the clear-
ance card.
If an applicant for a clearance card has been
a member of the International Union for
less than six months, then upon the granting of a clearance
Art. XV.
Section 1.
Art. XV.
Section 2 (a).
Art. XV.
Section 2 (b).
45
card he shall pay to said Local Union the sum of Fifteen
($15.00) Dollars as a fee therefor.
Thereafter a member obtaining a clearance
card must present the same to the Local Union
into which he desires to transfer, for acceptance by it, and the
matter shall be referred to a committee of such Local Union
as provided for in Article XXIV, Subdivision 6, which will ac-
cept or reject said clearance card, such acceptance or rejection
to be entirely within the discretion of the Local Union.
No member desiring to transfer into another
Local Union shall negotiate for, accept or
commence work until his clearance card has been accepted
or a service dues receipt shall have been issued to him as
hereinafter provided. Enforcement of this provision shall be
wholly a matter of internal discipline. A violation of this pro-
vision shall not be used as a basis for any action adversely
affecting employment rights, except in accordance with the
terms of a valid union security agreement. If and when his
clearance card is accepted, he shall be governed by the wage
scale, rules and bylaws of said Local Union and if the Local
Union into which such member enters has a higher initiation
fee and the bylaws of such Local Union require it, he may be
required to pay the amount of the difference to the receiving
Local Union, in which event, the initiation fee tax on such
difference shall be charged and collected by the General Sec-
retary-Treasurer. In the event the said bylaws waive the pay-
ment of this difference, then there shall be no initiation fee
tax charged or collected by the General Secretary-Treasurer.
Local Unions shall purchase clearance
cards from the General Secretary-Treasurer
and said cards shall be drawn up by the General Secre-
tary-Treasurer in duplicate and designated Coupon No.
1 and Coupon No. 2. Upon entering the Local Union
into which he may transfer, the member shall sign both
Art. XV.
Section 2 (c).
Art. XV.
Section 2 (d).
Art. XV.
Section 2 (e).
46
coupons, Coupon No. 1 being retained by the Financial
Secretary of the Local Union into which he transfers and
Coupon No. 2 being transmitted by the Financial Secretary
of the Local Union into which he has transferred to the
Financial Secretary of the Local Union which issued the
card no later than the last day of the month in which the
member was accepted. Thereafter the Financial Secretary
of the Local Union into which the member has transferred,
shall, on the next monthly report, set forth the name and
membership number of the member so admitted.
Travel Service Dues
Members of one Local Union shall not seek
employment, be employed, or remain at work
at the craft within the territorial jurisdiction of another Local
Union without the consent of such other Local Union, which
consent may be evidenced by its acceptance of the clearance
card presented to it by the member involved, as provided in
the Constitution, or by the issuance of the service dues re-
ceipt hereinafter described. If the member involved does not
present a clearance card to such other Local Union, or the
Local Union to which the clearance card is presented fails to
act thereon, or the Local Union to which the clearance card is
presented acts thereon and reIuses to aIfliate such member,
and the Business Representative of such other Local Union,
in such cases, shall thereupon consent to the issuance of the
service dues receipt (described herein), then the member
involved shall be entitled to receive and required to secure
successively, during the period within which said consent be
granted and his work continue, such number of weekly ser-
vice dues receipts if he is a hoisting and portable engineer, or
monthly service dues receipts if he is a stationary engineer,
as shall be issued to him by the said Business Representative
under the regulations established by the General Executive
Board. Such service dues receipts shall, for the period issued,
allow the holder thereof to seek, accept, and hold employ-
ment within the territorial jurisdiction of such other Local
Art. XV.
Section 3 (a).
47
Union out of which said service dues receipts shall be issued,
but subject always to such regulations as shall be imposed
thereon by the General Executive Board.
Provided, however, that there will be a limited key em-
ployee exception to the above requirement that members
obtain clearance. Under this exception, Local Unions
must clear in a limited number of key employees if the
following requirements are met: 1) the employer signs or
is signatory to the Local Unions master agreement for the
area in which the job in question is located; 2) the employ-
er has a pre-job to identify the key employees and address
any other issues before each job on which key employees
are used; 3) the employer agrees, upon presentation of ap-
propriate authorization, to collect from key employees the
local working dues and/or administrative dues and remit
such to the Local Union in whose jurisdiction the work is
being performed; and 4) the employer agrees that the wage
rate paid key employees will be at least the rate paid under
the agreement of the Local Union in whose jurisdiction the
work is perIormed, and the Iringe beneft rate paid will be
the higher of the rates of the key employees home Local
or the Local where the work is being performed.
If the above requirements are met, the employer shall be
allowed to bring in key employees as the third, sixth, ninth
and twelfth person hired; where the job requires fewer than
twelve employees, key employees will be allowed accord-
ing to this Iormula until the job`s staIfng requirements are
met. Under no circumstances will a key employee be al-
lowed to serve as a master mechanic or foreman unless such
is agreed to at the pre-job. In order to be a key employee
the individual in question must be an operating engineer
employee who: 1) regularly and customarily works for the
employer whenever it has work or has been employed by
the employer within the past six months; and 2) because of
his or her knowledge, training, special skills and/or experi-
ence is critical to the success of a particular job.
The principle of money follows the employee shall
48
govern pension, annuity, and health and welfare contribu-
tions for all traveling employees, and a copy of the trust
fund remittance reports will be provided to the Local
Union in whose jurisdiction the work is being performed.
Contributions to all other funds will be remitted to the rel-
evant funds of the Local Union in whose jurisdiction the
work is being performed.
Failure to abide by the terms of the pre-job shall serve
to revoke the clearance of the key employees. Nothing
in the above three paragraphs shall limit a Local Unions
ability, in exercising its discretion to clear in members of
other Local Unions, to mutually agree with an employer to
a different key employee arrangement.
Travel service dues collected pursuant to this Section
shall have as their primary purpose the defraying of the
additional administrative and collective bargaining cost
incurred by a Local Union in providing services for travel-
ing members from sister Local Unions who are working
within its jurisdiction, and the International Unions cost of
recording members movements in the labor market. Pay-
ment of travel service dues is an obligation arising as an
incident of membership in the International Union. Fail-
ure of a traveling member to comply with this requirement
shall subject him to an appropriate penalty as provided by
the International Constitution for the violation of an obli-
gation under the Constitution. Failure of a traveling mem-
ber to pay travel service dues shall not be used as a basis
for any action adversely affecting employment rights, ex-
cept in accordance with the terms of a valid union security
agreement. Enforcement of the collection of travel service
dues shall be wholly a matter of internal Union discipline.
Prior Payments of Current Dues Required
The consent referred to in this Article shall not
be granted by the said other Local Union or
its Business Representative, nor shall travel service dues be
collected from or service dues receipts be issued to, any said
Art. XV.
Section 3 (b).
49
member who shall not, at the time when requesting a service
dues receipt, have had his current monthly dues paid into the
Local Union to which he belongs. Upon the issuance to him
of the said service dues receipt the same shall always be avail-
able Ior inspection and certifcation as to its authenticity.
Applicants Service Dues
In each Local Union where applicants for
membership engage at the craft upon work
within the jurisdiction of said Local Union, the Local Union
shall charge to and collect from each such applicant, appli-
cants service dues. Such dues shall be charged only so long
as the applicant has not tendered full initiation fees and has
not complied with the same requirements for admission gen-
erally applicable to other members. In no case, however, may
applicants service dues be charged for more than twelve
(12) months after an individual has become an applicant for
membership. Each Local Union retains the right to determine
whether it will establish the procedure of accepting the pay-
ment of applicants service dues as a temporary alternative to
the payment of full initiation fees and regular periodic dues.
Failure by an applicant for membership to pay service
dues shall not be used by the Union as a basis for an action
adversely affecting the employment rights of the applicant,
except in accordance with the terms of a valid union secu-
rity agreement. Under no circumstances shall payment of
service dues be made a condition precedent to an appli-
cant`s obtaining employment in the frst instance.
Local Unions with Registered Apprentice Engineers
Subdivisions retain the right to determine if the provisions
of this Section shall apply to Registered Apprentice Engi-
neers during the probationary period prior to their initiation
into the Registered Apprentice Engineers Subdivision.
Amount of Applicant Service Dues
Each Local Union shall charge to and col-
Art. XV.
Section 3 (c).
Art. XV.
Section 3 (d).
50
lect from all those persons within its territorial jurisdiction
to whom this Article applies, applicant service dues in a
minimum amount of two dollars ($2.00) per week, and, in
addition, any amount paid by members of the Local Union
as administrative, supplemental or working dues, or the
monthly equivalent of said sum. The maximum amount
oI service dues to be charged and collected shall be fve
dollars ($5.00) per week or the monthly equivalent of said
sum and, in addition, any amount paid by members of the
Local Union as administrative, supplemental or working
dues. In lieu of said amount, a Local Union may elect to
charge and collect applicant service dues in an amount not
to exceed the weekly equivalent of the amount of regular
dues paid by members of the Local Union. Upon payment
of the proper dues, there shall be issued an applicant ser-
vice dues receipt for each applicant for membership.
Amount of Travel Service Dues
Each Local Union shall charge to and collect
from all persons within its territorial jurisdic-
tion to whom this Article applies, travel service dues in the
amount oI fve dollars ($5.00) per week, and, in addition, any
amount paid by members of the Local Union as administra-
tive, supplemental or working dues, or the monthly equiva-
lent of said sum. In lieu of said amount, a Local Union may
elect to charge and collect travel service dues in an amount
not to exceed the weekly equivalent of the amount of dues,
including regular dues and administrative, supplemental or
working dues, paid by members of the Local Union. Upon
payment of the proper dues, there shall be issued a travel
service dues receipt for each traveling member.
Form of Service Dues Receipt & Distribution of Copies
The form of the service dues receipt issued
to traveling members and to applicants shall
be substantially as follows:
Art. XV.
Section 3 (e).
Art. XV.
Section 3 (f).
51
(Seal)
Date 20
Received from
Reg. No. Member of Local No.
City of State
SERVICE DUES for
Week ending through
Months of
Service dues paid in Local No.
City of State
Dues paid for month of
Initiation Fee being paid
If more than one week is paid for, then additional service dues
receipts to cover must be attached hereto and serial numbers
noted hereon.
No.
The total number of weeks paid for shall be checked below
and the serial numbers of all service dues receipts attached
shall be entered hereon.
Weeks Number
One Serial No.
Two Serial No.
Three Serial No.
Four Serial No.
Five Serial No.
Six Serial No.
Seven Serial No.
Eight Serial No.
Nine Serial No.
Ten Serial No.
Amount Paid
Representative
52
In case of applicants for membership the information
required above with reference to register number and Lo-
cal Union data shall be omitted.
Each service dues receipt shall be printed in duplicate
labeled Original and Duplicate. The original shall be
issued to the member, the duplicate shall remain bound in
the Service Dues Book.
Printing and Distribution of Service Dues Book
The General Secretary-Treasurer shall cause
the service dues receipts described herein,
for those Local Unions that do not utilize electronic data
processing for processing service dues payments, to be
printed and made available to Local Unions.
The General Executive Board is authorized
and empowered to establish, amend, alter
and administer the terms, conditions, and rates under which
the service dues receipts herein provided shall be issued
and enforced. No service dues receipt as described in this
Article shall be issued to or used by any person who is not,
at the time, either a member of the International Union of
Operating Engineers or an applicant for membership there-
in, and the attempted issuance of such a service dues receipt
above reIerred to by any oIfcer or employee oI the organi-
zation to any other person than those described herein shall
be unauthorized, null and void. Registration fees, if charged
by a Local Union, must bear a reasonable relationship to the
service provided to the registrant by the Local Union and
shall not be in excess oI the fxed monthly dues.
Data Processing Service Dues
Local Unions that employ electronic data
processing equipment may systematize the
processing of service dues, including computer-generated
service dues receipts.
Art. XV.
Section 3 (g).
Art. XV.
Section 3 (h).
Art. XV.
Section 3 (i).
53
Withdrawal Cards
Any member of the International Union who
ceases to perform the work of an engineer
may request and, at the option of his Local Union, be given
a withdrawal card; but no withdrawal card shall be issued
to any member of the International Union who is employed
as an engineer. This section, however, shall not apply to
any members of the International Union who are serving
or acting in any capacity for a Local Union or the Interna-
tional Union, whose duties prevent them from working at
the trade, or engineers who hold positions as inspectors of
boilers or other machinery, or examiners of engineers.
A fee of not to exceed Five ($5.00) Dollars
may be charged for each withdrawal card.
Local Unions shall purchase withdrawal
cards from the General Secretary-Treasurer.
When a holder of such card desires to reinstate himself in
full good standing membership, he shall present this card
and it shall be acted upon in the same manner as hereinbe-
fore provided in the case of clearance cards.
Any member entering a Local Union on a
withdrawal card shall pay the difference in
initiation fee as hereinbefore provided in the case of clear-
ance cards. If he shall enter said Local Union within a pe-
riod of time less than thirteen (13) months dated from the
month in which the withdrawal card was issued, he shall
be required to pay all dues and assessments accruing in
such period of time in the Local Union which issued the
same, and said dues and assessments shall be paid to the
Local Union admitting the member and shall be forwarded
to the Local Union which issued the withdrawal card. At
the same time he shall pay an assessment of Ten ($10.00)
Dollars or such amount as shall be fxed by the General
Executive Board, Fifty (50) per cent of which assessment
Art. XV.
Section 4 (a).
Art. XV.
Section 4 (b).
Art. XV.
Section 4 (c).
Art. XV.
Section 4 (d).
54
shall be forwarded by the Local Union to the General
Secretary-Treasurer. Members who enter said Local Union
during the thirteenth (13th) month following the month in
which the withdrawal card was issued shall be considered
as having been on withdrawal for exactly one (1) year.
If the member shall enter said Local Union after more than
thirteen (13) months since the issuance of the withdrawal
card, he shall pay an assessment of Ten ($10.00) Dollars
or such amount as shall be fxed by the General Executive
Board, and a similar amount for each successive year or part
thereof. Fifty (50) percent of which assessment shall be for-
warded by the Local Union to the General Secretary-Trea-
surer. Provided, however, the total payment so required shall
not exceed the amount of the regular current initiation fee in
the Local Union to which the application is made.
All members of the International Union who have been
granted withdrawal cards by their Local Unions and were
then in good standing in the Death Beneft Fund may contin-
ue their good standing therein by paying on or before June
1 of each year, in advance and directly to the General Secre-
tary-Treasurer, the sum of Nine ($9.00) Dollars per annum;
but they shall not be in good standing in any other respect.
Provided, however, members initiated on or after July 1,
1973, shall not participate in the Death Beneft Fund.
However, members holding withdrawal
cards and desiring to continue in good stand-
ing in the Death Beneft Fund must make application to the
General Secretary-Treasurer within thirty (30) days from
the date the withdrawal card was issued and he must be
paid up to and including the month of his death, or his death
must have occurred within thirty (30) days after his dues
and obligations shall have become due and payable, in or-
der that his benefciary may be entitled to the death benefts.
In the event any member granted a withdrawal card violates
any of the Articles of this Constitution, any Local Union or
the General Executive Board shall cancel said withdrawal
Art. XV.
Section 4 (e).
55
card, and he and his benefciaries automatically lose his and
their rights under the Death Beneft Fund.
*HQHUDO2IFH0HPEHUVKLS
When a Local Union has lapsed, been dis-
solved, suspended or had its charter revoked,
or has otherwise become inoperative, any member thereof
who was in good standing at the time of such dissolution,
suspension or revocation shall become a member of the
General OIfce Membership, provided that within thirty
(30) days from the date of such dissolution, suspension or
revocation he pays to the General Secretary-Treasurer any
unpaid dues or other obligation due to said Local Union
from him, or due to the International Union from said Lo-
cal Union in his behalf, including per capita tax, together
with a fee of Five ($5.00) Dollars, or such other fee as may
be fxed by the General Executive Board, and at the same
time makes application to the General Secretary-Treasurer
for a transfer card to another Local Union as provided
for in Section 1 of this Article; and he shall remain in the
General OIfce Membership only until his transIer card is
accepted by another Local Union, and while a member of
the General OIfce Membership he shall pay dues to the
General OIfce, monthly in advance, in the amount oI Five
($5.00) Dollars per month or such other amount as may be
fxed by the General Executive Board. The General Sec-
retary-Treasurer may suspend or expel any such member
Ior non-payment oI dues to the General OIfce or Ior any
violation of the Constitution.
J unior and Assistant Engineers
Subdivision Clearance Cards
Any member of a Junior and Assistant Engi-
neers Subdivision desiring a Junior and As-
sistant Engineers Subdivision clearance card for the purpose
of transferring his membership to another Junior and Assis-
Art. XV.
Section 5.
Art. XV.
Section 6.
56
tant Engineers Subdivision of another Local Union, shall
do so in the same manner as prescribed in Section 2 of this
Article, provided the Local Union in which he is a member
of the Junior and Assistant Engineers Subdivision shall, by a
majority vote, consent to the issuance of said clearance card.
ARTI CLE XVI
DI SCI PLI NE AND EXPULSI ON I N GENERAL
Penalty for I ssuing Defamatory Literature
In addition to the provisions of this Consti-
tution setting forth the causes and the man-
ner and Iorm in which Local Unions, oIfcers and members
thereof may be disciplined and penalties may be invoked,
any Local Union, subdivision or member thereof publish-
ing or circulating literature of a defamatory nature in viola-
tion of their responsibility toward the International Union
or any of its subordinate bodies as an institution, or engag-
ing in conduct that would interfere with the performance
by the International Union or any of its subordinate bodies
of their legal or contractual obligations, may be tried by
the General Executive Board upon charges fled with it,
and upon conviction, may be disciplined or expelled as the
General Executive Board may determine.
Penalty for False Applications
Any person making a misrepresentation or
misstatement in his application for member-
ship, or who shall belong to more than one Local Union of this
organization, shall, on trial therefor and conviction thereof, be
expelled from the International Union of Operating Engineers.
General Executive Board May Prosecute
Any violation of the Constitution, Laws, Ob-
ligation and Ritual, or the rules, regulations
and edicts issued by any oIfcer or subdivision hereunto
authorized by any member, subdivision or oIfcer, may, iI
Art. XVI.
Section 1.
Art. XVI.
Section 2.
Art. XVI.
Section 3.
57
not prosecuted by the subdivision thereunto authorized,
or if no provision has been made therefor, be prosecuted,
heard and penalized by the General Executive Board.
Penalty for Radicalism, Etc.
Any member who is found guilty after trial
of advocating or otherwise supporting the
overthrow of the established order, either of the Govern-
ment or of this organization, by force or violence or sub-
versive tactics, shall forthwith be expelled from member-
ship or otherwise disciplined as the circumstances may
require, which action may be taken and penalty imposed
by either the Local Union of which the guilty party is a
member or by the General President.
&KDUJHVE\*HQHUDO2IFHUV
Any General OIfcer may fle charges in any
Local Union against any member thereof.
*RRG6WDQGLQJ5HTXLUHGRI2IFHUV
No person shall become or remain President,
Vice President, Secretary, Treasurer, Busi-
ness Manager, Business Agent or other oIfcer or represen-
tative of any Local Union unless he is a member thereof
in good standing. In the event such person shall cease to
be a member in good standing or holds a withdrawal card,
he shall be disqualifed Irom Iurther serving in such oIf-
cial capacity and the exercise by him of all rights, powers,
privileges, authority and duties connected with his oIfce
shall automatically be revoked and cease.
Violations of Welfare Plans Administration
Where a salaried union oIfcial serves as
employee representative or trustee in the
administration of a health, welfare, retirement, training or
Art. XVI.
Section 4.
Art. XVI.
Section 5.
Art. XVI.
Section 6.
Art. XVI.
Section 7.
58
death beneft program, or any other Iund oI a similar na-
ture, such service should be regarded as one of the functions
expected to be perIormed by a union oIfcial in the normal
course of his duties and not as an extra function requiring
further compensation, over and above his salary, from the
Iunds oI such programs. ThereIore, oIfcials who already re-
ceive full time pay from their union shall not receive fees or
salaries from the funds of such programs. However, the pro-
visions of this Section shall not bar the receipt of per diem
and other reasonable expense allowances for such positions.
Union oIfcials, employees, or any other persons acting as
agent, representative or oIfcer oI the union who exercise
responsibility or infuence in the administration oI health,
welIare, retirement, training or death beneft programs or
any other fund of a similar nature, or the placement of insur-
ance contracts must be entirely free of any compromising
personal ties, direct or indirect, with outside agencies such
as insurance carriers, brokers, consultants and others doing
business with the welIare and death beneft plans. Such ties
cannot be reconciled with their duty to be guided solely by
the best interests of the membership in any transactions with
such agencies. Any union oIfcial Iound to be involved in
such ties to his own personal advantage, or to have accepted
inducements, benefts or Iavors oI any kind Irom such out-
side agencies, or who induces or directs associates or sub-
ordinates to accept fnancial participation and remuneration
Irom health, welIare, retirement, training or death beneft
programs or any other fund of a similar nature shall be de-
prived oI privilege to hold oIfce in Local Unions and the
International Union.
ARTI CLE XVI I
APPEALS
Appeals to General Executive Board
Any General OIfcer who shall have fled
in a Local Union charges against a member
thereoI, and any oIfcer or member oI a Local Union, may
Art. XVII.
Section 1 (a).
59
appeal to the General Executive Board from the adoption
of an action by said Local Union, or from a decision ren-
dered by the General President, where such action or de-
cision is not committed to the exclusive discretion of the
Local Union or a particular oIfcer. Any Local Union or
member thereof which belongs to a Local, State or Provin-
cial Organization, J oint Executive Board or District Coun-
cil may appeal to the General Executive Board from an act
or decision of said Local, State or Provincial Organization,
J oint Executive Board or District Council. Notice of such
appeal must be in writing and received by the General Sec-
retary-Treasurer within thirty (30) days from the date of
the adoption of said action or the rendition of said decision
by the General President.
Requests to modify, continue, amend, withdraw or in-
voke International Supervision, together with oIfcial ac-
tions or inaction thereon shall constitute appealable matters
and be processed in the manner and form regulating appeals
under the Constitution. Any such request, when signed by
not less than twenty-fve (25) percent oI the members in
good standing of a Local Union, shall cause a referendum
on the subject to be submitted to the membership by the
General President, who shall be guided by the results there-
of in his decision on the question involved therein.
The party making such appeal must fle with
the notice of appeal a written statement cov-
ering the decision of the General President complained of,
together with suIfcient Iacts to permit the General Execu-
tive Boards consideration of the same, or a complete state-
ment of the evidence, exhibits and decision in the case of
an appeal from the act of a Local Union or subdivision
herein reIerred to, and at the same time fle a copy oI said
evidence, exhibits and decision with the said Local Union
or subdivision affected. The General Secretary-Treasurer
shall thereupon notify the party against whom the appeal
is taken, which party shall be allowed thirty (30) days
Art. XVII.
Section 1 (b).
60
Irom such notice within which to fle an answer or de-
Iense. When both parties have properly fled the matters
hereinbefore required, or upon the expiration of the period
allowed Ior such fling, the General Executive Board shall
proceed to hear the appeal, either upon the record or upon
retrial, or both, and render its decision thereon.
All interpretations and decisions by the
General Executive Board involving the or-
ganic law of the International Union of Operating Engi-
neers shall be subject to review only by the General Con-
vention, and all fndings oI Iacts by the General Executive
Board shall be fnal, conclusive and binding.
Appeals to General Convention
Any subdivision within the International
Union of Operating Engineers, and any of-
fcer or member thereoI, and any General OIfcer may ap-
peal from the decision of the General Executive Board to
the General Convention. Notice of such appeal, together
with a complete statement oI the record, fndings and ex-
hibits in the case must be fled within thirty (30) days Irom
the rendition of a decision by the General Executive Board
by delivery of said documents and notice of appeal to the
General Secretary-Treasurer.
Pendency of Appeals
Except as otherwise provided in this Con-
stitution, pending the termination of any ap-
peal, the action or decision appealed from shall remain in
full force and effect.
All Court Actions Superseded
To the extent not limited by law, no suit
or other action at law or equity shall be
brought in any court and no proceeding shall be initi-
Art. XVII.
Section 1 (c).
Art. XVII.
Section 2.
Art. XVII.
Section 3.
Art. XVII.
Section 4.
61
ated before any administrative agency by any member,
oIfcer or subdivision oI the International Union oI Op-
erating Engineers until and unless all rights, remedies
and reasonable provisions for hearing, trial and appeal
within the Organization shall have been properly fol-
lowed and exhausted by the member, oIfcer or subdi-
vision complaining. This provision shall only require
resort to internal remedies for a period not exceeding
four (4) months.
ARTI CLE XVI I I
METHODS OF AMENDI NG AND
REVI SI NG CONSTI TUTI ON AND
I NVOKI NG I NI TI ATI VE AND RECALL
Amending Constitution at General Convention
The Constitution may be amended or re-
vised at a General Convention provided
the proposal to amend or revise be made in writing and
be fled with the General Secretary-Treasurer not less than
seventy-fve (75) days prior to the date oI the calling oI
said Convention. Such proposal to amend or revise the
Constitution shall emanate from a Local Union in good
standing or a General OIfcer oI the Organization and must
bear the seal oI the Local Union or General OIfcer pro-
posing the same. The General Secretary-Treasurer shall
submit all such proposals properly fled with him to the
General Executive Board and to all Local Unions in good
standing not less than thirty (30) days prior to the date of
the General Convention.
I nitiative and Recall
Whenever forty (40) percent of all Local
Unions in good standing and representing
at least forty (40) percent of the entire membership of the
International Union in good standing, by a majority vote of
the entire membership oI each, shall fle with the General
Art. XVIII.
Section 1.
Art. XVIII.
Section 2.
62
Secretary-Treasurer a petition requesting the recall from
OIfce oI any General OIfcer, the General Secretary-Trea-
surer shall thereupon submit the same to the membership
and a vote shall be taken thereon. Upon receipt of such
petition the General Secretary-Treasurer shall set the time
within which the Local Unions shall vote. No recall pe-
tition shall prevail unless there shall be cast thereon the
votes oI not less than fIty-fve (55) percent oI the entire
membership of the International Union in good stand-
ing and a majority vote of the entire membership in good
standing cast in favor thereof.
Method of Voting
The voting upon any proposition arising
under this Article shall be conducted by
the General Secretary-Treasurer upon tally sheets and
ballots transmitted by the General Secretary-Treasurer
to the Local Unions. Ballots shall be transmitted by the
Local Unions to all members in good standing. The ref-
erendum shall be conducted by mailed secret ballot. Ad-
equate safeguards to insure a fair vote shall be provided
by the Local Union in accordance with the International
Constitution, applicable law and such rules and regula-
tions as may be promulgated by the General Executive
Board. The General Executive Board shall appoint three
(3) tellers and retain a Certifed Public Accountant to
certify and announce the results of the voting on the
basis of the tally sheets transmitted to them by the Local
Unions. After the vote shall have been taken by the Lo-
cal Unions in the manner herein prescribed, the report
of said vote upon the tally sheets shall be transmitted
by the Local Unions to the tellers and a Certifed Public
Accountant appointed by the General Executive Board,
and the tellers and Certifed Public Accountant shall
report the result of said vote to the General Secretary-
Treasurer, who shall cause it to be published in the next
issue of the J ournal.
Art. XVIII.
Section 3.
63
ARTI CLE XI X
DEFENSE FUND, LOCKOUTS AND STRI KES
Defense Fund
There shall be a Defense Fund which shall be
drawn upon for the purpose of defending the
International Union and its members in efforts to prevent
lockouts and strikes, by assisting in sustaining the members
in cases of lockouts and authorized strikes, in protecting
and defending the International Union and its members in
any legal proceedings brought against it or its members,
to employ counsel, and for any other purpose which the
General President, subject to the approval of the General
Executive Board, shall deem necessary for the further pro-
tection of the International Union and its members.
Lockouts and Strikes
Where a Local Union is engaged in a strike,
or reports a lockout, including lockouts
caused by strike action oI an aIfliated union, and in ei-
ther event the Local desires strike benefts Irom the Inter-
national Union, it shall make application to the General
President`s oIfce. Upon the General President`s approval
oI the request Ior strike benefts Ior good cause shown, he
shall instruct the General Secretary-Treasurer to remit to
the Financial Secretary of the Local Union involved, strike
benefts in the amount oI not less than $150 per week per
member affected, for the purpose of assisting in sustaining
such Local Union during the pendency of the lockout or
strike. Payment oI strike benefts shall not indicate ratif-
cation by the International Union of the Locals strike or
strike conduct or the conduct of any individual participat-
ing in the strike. The continuance of such payments shall
be until further order of the General President, subject to
a review by him in the event the strike or lockout exceeds
thirty (30) days.
Art. XIX.
Section 1.
Art. XIX.
Section 2.
64
6WULNH%HQHWV
No fnancial assistance shall be given to
any Local Union or Unions until a period
of one (1) week has elapsed from the time a lockout or
strike began; but thereafter it shall continue for such period
of time as in the judgment of the General President may
be necessary. Those members entitled to strike benefts
shall be reported to the General President by the Financial
Secretary of the Local Union or Unions involved in such
lockouts or strikes on forms provided for such purpose by
the General Secretary-Treasurer. No strike benefts shall be
paid to any member who is not actually a striker or a victim
oI a lockout, and such beneft shall cease when the member
involved secures employment.
ARTI CLE XX
DEATH BENEFI TS
All death benefts or claims shall be paid
Irom the Death Beneft Fund in conIormity
with the provisions of this Article only, and no other funds
or property of the International Union shall be liable for
the payment thereof, nor shall the International Union
be liable beyond the amount at any time available in the
Death Beneft Fund.
Effective August 1, 1968, the amount of
death benefts payable to the benefciary or
benefciaries oI a member who has been granted a with-
drawal card prior to that date shall be computed on the
basis of the number of years such member has been in
good standing as of August 1, 1968, and shall not thereaf-
ter be increased during the period such member remains
on withdrawal card. The amount oI the death benefts
payable to the benefciary or benefciaries oI a member
who is granted a withdrawal card on or after August 1,
1968, shall be computed on the basis of the number of
Art. XIX.
Section 3.
Art. XX.
Section 1.
Art. XX.
Section 2.
65
years such member has been in good standing as of the
date on which the withdrawal card is granted, and shall
not be increased thereafter during the period such mem-
ber remains on withdrawal card.
Death benefts are payable only upon the death oI a
member in good standing who was initiated prior to J uly
1, 1973.
All death benefts which have been accumulated by
members in good standing on or before J uly 1, 1973 are
Irozen as oI that date and no Iurther benefts accrue.
Death benefts shall be paid to benefciaries as Iollows
and not otherwise:
Class I . Benefciaries oI members who on July 1, 1973
have been in good standing for a period of one (1) year
to fve (5) years shall receive One Hundred ($100.00)
Dollars and this amount shall not thereafter increase.
Class I I . Benefciaries oI members who on July 1, 1973
have been in good standing Ior a period oI fve (5) years
to ten (10) years shall receive Two Hundred ($200.00)
Dollars and this amount shall not thereafter increase.
Class I I I . Benefciaries oI members who on July 1,
1973 have been in good standing for a period of ten (10)
years to fIteen (15) years shall receive Four Hundred
($400.00) Dollars and this amount shall not thereafter
increase.
Class I V. Benefciaries oI members who on July 1, 1973
have been in good standing Ior a period oI fIteen (15)
years to twenty (20) years shall receive Five Hundred
increase.
Class V. Benefciaries oI members who on July 1,
1973 have been in good standing for a period of twenty
(20) years or more shall receive Seven Hundred Fifty
increase.
66
For the purpose of establishing and main-
taining a right to benefts under this Article,
a member in good standing is a member who is not sus-
pended by the operation of any section of this Article or
of any other Article of this Constitution, and who also has
paid his dues and all other obligations to the date of his
death, or whose death has occurred within thirty (30) days
after said dues and obligations shall have become due and
payable.
The benefciaries oI members who transIer
from one Local Union to another, and who
remain in continuous good standing, shall receive benefts
the same as though the member had continuously remained
a member of the same Local Union.
Any member who was suspended or ex-
pelled from a Local Union or by the General
Executive Board, for any reason whatsoever, and later be-
came reinstated, must have been a member in good stand-
ing Ior one year aIter his reinstatement beIore his benefcia-
ries are entitled to death benefts, and then his benefciaries
shall be entitled to the amount only in his class according
to the length of time that he was a member in good stand-
ing after such reinstatement. Provided, however, members
reinstated on or after J uly 1, 1973, shall not participate in
the Death Beneft Fund.
The benefciaries oI any member who be-
comes suspended or expelled by his Lo-
cal Union or the General Executive Board, for any cause
whatsoever, lose their right to death benefts unless said
member has complied with Section 5 of this Article.
The Financial Secretary of each Local Union
shall keep the General Secretary-Treasurer
advised in his monthly report to the General OIfce oI all
Art. XX.
Section 3.
Art. XX.
Section 4.
Art. XX.
Section 5.
Art. XX.
Section 6.
Art. XX.
Section 7.
67
additions to their membership, and all deductions, and
such additional members shall be entitled to benefts as
mentioned in this Article.
The members of any Local Union two (2)
months in arrears with its per capita tax to
the International Union shall be suspended from all ben-
efts accrued in the Death Beneft Fund under this Article,
until such times as the Local Union pays its arrearages of
per capita tax, and has complied with all other obligations
provided in the Constitution, and has been reinstated; and
from the date of reinstatement the members of such Local
Union shall be entitled to again begin to accrue benefts,
and in case of death of any such member occurring not less
than one (1) year aIter such reinstatement, his benefciaries
shall be entitled to the payment oI benefts designated ac-
cording to the class that the deceased member had estab-
lished at the time of his death and from the date of such
reinstatement of his Local Union.
A member of a Local Union which has withdrawn,
lapsed, dissolved, been suspended or expelled, or whose
charter has been revoked, if such member is in good stand-
ing in his Local Union on the date of such withdrawal,
lapse, dissolution, suspension, expulsion or revocation of
charter, shall not IorIeit or waive any oI his accrued benefts
earned in such Local Union, but such accrued benefts shall
be continuous with that earned after transfer to another Lo-
cal Union; provided, such member shall within thirty (30)
days cause to be invoked and have made use of the privilege
accorded such member to transfer to another Local Union
in accordance with Article XV of this Constitution.
:KR6KDOO%H%HQHFLDULHV
A member may change his designation of
benefciary as oIten as desired by written
request fled with the Recording-Corresponding Secretary
of his Local Union, or in the case of a member holding a
Art. XX.
Section 8.
Art. XX.
Section 9.
68
withdrawal card and who has qualifed under the provi-
sions of Article XV, Section 4(e) of this Constitution, with
the General Secretary-Treasurer. Such designation, and/or
change, will take effect as of the date of the execution of
such request, whether or not the member be living at the
time oI such fling, but without prejudice to the Interna-
tional Union on account of any payment made by it before
receipt of such request.
Except as may otherwise be specifcally provided by the
member:
(1) iI more than one benefciary is designated, the desig-
nated benefciaries will share equally;
(2) iI any designated benefciary predeceases the member,
the share which such benefciary would have received iI
living will be payable equally to the remaining designated
benefciaries, iI any, who survive the member; and
(3) iI no designated benefciary survives the mem-
ber, payment will be made to the members widow or
widower if surviving the member; if not surviving the
member, in equal shares to the members children who
survive the member; if none survives the member, to the
members parents, equally or to the survivor; if neither
survives the member, in equal shares to the members
brothers and sisters who survive the member; or if none
survives the member to the members executors or
administrators. When a member designates his or her
spouse as benefciary and thereaIter the marriage to that
designee is terminated by divorce, it shall be presumed,
in the absence of evidence to the contrary, that the desig-
nation oI the spouse as benefciary is revoked.
All claims shall be made for said death ben-
eft within a period oI sixty (60) days Irom
the date oI death. The benefciary shall present, within the
sixty-day (60) period, to the Secretary of the Local Union a
death certifcate signed by the proper authority authorized
Art. XX.
Section 10.
69
to issue death certifcates, iI there be one, together with an
aIfdavit oI the claimant showing the relationship oI the
deceased to the benefciary, and stating who is entitled to
said payment, and identifying the person named in accom-
panying death certifcate as the same person named in said
death certifcate.
The Financial Secretary of said Local Union shall there-
upon promptly forward said documents to the General
Secretary-Treasurer. The General Secretary-Treasurer shall
then check said claim with the list of members in good
standing as otherwise herein provided, and shall remit
within a reasonable time, upon reasonable proof of death,
to the benefciary, through the Local Union oI which he was
a member, the amount oI the beneft due said benefciary.
Immediately upon the death of a member,
the Financial Secretary of the Local Union
shall notify the General Secretary-Treasurer by mail, and
on the established Iorm oI certifcate oI death Iurnished by
him, giving the name, address, register number, the date of
the last payment of dues to the Local Union and the month
paid for by the deceased, his age, date of death and date of
initiation, and any other information required, including the
name or names, addresses and relationship oI his benefcia-
ries, all to be properly certifed to by the President and Fi-
nancial Secretary oI the Local Union with its seal aIfxed.
No suit shall be brought against a Local
Union or member and no Local Union or
member thereoI shall be liable Ior the death beneft herein
provided for. The General Secretary-Treasurer shall have
the authority to investigate the legality of any claim, and the
President and Financial Secretary of any Local Union out
of which a disputed claim originates shall, upon demand by
the General Secretary-Treasurer, furnish a sworn statement
concerning said claim. Any Financial Secretary of any Local
Union altering the dues book and/or card of any member or
Art. XX.
Section 11.
Art. XX.
Section 12.
70
deliberately reporting him suspended when he should not
have been, or fraudulently recording any payment of dues
for a deceased member after his death, shall be expelled and
forever barred from membership in the International Union,
and the Local Union shall be fned the amount due the ben-
efciary oI such deceased member, subject only to the right
of appeal to the General Executive Board and from their de-
cision to the Convention of the International Union.
The General Secretary-Treasurer shall cause
to be published in each issue of the journal
the names and Local Union of those who have died, the
cause of death of the member, and the amount paid and to
whom paid. After this plan is adopted, it is understood that
members who allow themselves to become suspended or
expelled from the International Union lose all rights what-
soever that they may enjoy under this plan.
The provisions of this Article shall prevail
over any other Article of this Constitution
which may confict with this Article. In the event it becomes
expedient for the General Executive Board to amend the
rules governing the operation of this Article, they shall do
so, as may to them seem necessary, and the changes shall
be binding upon the members. All of the provisions of this
Article are to be construed together.
ARTI CLE XXI
J OI NT EXECUTI VE BOARDS
Formation
A J oint Executive Board may be formed
in any city or town where two or more Lo-
cal Unions exist. Such Boards shall be composed of three
delegates from each Local Union, elected by the Local
Unions at the regular election oI oIfcers, and shall hold
oIfce Ior not less than one nor more than Iour years or
Art. XX.
Section 13.
Art. XX.
Section 14.
Art. XXI.
Section 1.
71
until their successors, as determined by the Local Union,
shall be elected and qualifed.
2IFHUV
The oIfcers oI Joint Executive Boards shall
consist of a Chairman, Vice Chairman and
Secretary-Treasurer, each of whom shall be elected by said
Board, and shall hold oIfce Ior one year, or until their suc-
cessors are elected and qualifed.
Quorum
A quorum for the transaction of business be-
fore a J oint Executive Board shall consist of
a majority of the members thereof.
Powers
A Local J oint Executive Board shall have
power to adjudicate grievances arising be-
tween Local Unions within the jurisdiction; to summon
and examine any member of any such Local Unions; to
adopt bylaws and trade rules with the consent of the Gen-
eral President, and not in confict with this Constitution
and approved by a majority vote oI all Local Unions aIfli-
ated with the said Board.
Minutes
Copies of all minutes and proceedings of any
meeting of the J oint Executive Board shall
immediately thereafter be sent to the General President by
the Secretary-Treasurer of the J oint Executive Board.
ARTI CLE XXI I
DI STRI CT COUNCI LS
The General President, subject to the approval of the Gen-
eral Executive Board, shall have the authority to issue
Art. XXI.
Section 2.
Art. XXI.
Section 3.
Art. XXI.
Section 4.
Art. XXI.
Section 5.
72
rules governing the affairs, conduct, activities, property
and fnances oI District Councils and governing the sus-
pension, expulsion and termination of such Councils. Such
rules shall defne the power oI the General President, or his
designee, with respect to disciplinary action against such
Councils or their oIfcers and shall provide Ior appeals to
the General Executive Board and to the Convention from
disciplinary action taken. However, such rules shall pro-
vide that actions and decisions appealed from shall remain
in full force and effect pending any appeal.
ARTI CLE XXI I I
STATE, I NTERSTATE AND
PROVI NCI AL ORGANI ZATI ONS
Formation
State, Interstate and Provincial Organiza-
tions may, with the consent of the General
President, be formed in any State or Province having three
or more Local Unions, or in combinations of States or
Provinces, provided that the organizer thereoI has notifed
all Local Unions in said State or Province at least thirty
(30) days prior to the fling oI a petition thereIore with the
General Secretary-Treasurer.
2IFHUV
The oIfcers oI a State, Interstate, or Provincial
Organization shall consist of a President, Vice
President, Secretary-Treasurer, and three (3) Trustees. Their
term oI oIfce shall begin at the convention oI the State, Inter-
state or Provincial Organization to which they shall have been
elected and continue for one (1) year, or until their successors
are elected and qualifed, but in no event shall be Ior more than
Iour (4) years. Not more than two (2) oI the oIfcers described
herein shall hold membership in any one (1) Local Union af-
fliated with a State, Interstate or Provincial Organization.
Art. XXIII.
Section 1.
Art. XXIII.
Section 2.
73
Executive Boards
tions may provide for the creation of State,
Interstate or Provincial Executive Boards consisting of
the President, Vice President, Secretary-Treasurer, and
the three (3) Trustees. All the powers of State, Interstate
or Provincial Organizations when in session shall, when
the same is not in session, pass to and vest in the State,
Interstate or Provincial Executive Board.
Voting
Local Unions belonging to State, Interstate
or Provincial Organizations shall be entitled
to one (1) delegate for three hundred (300) members or
less, together with one (1) delegate or one (1) vote for each
succeeding three hundred (300) members or majority frac-
tion thereof. No delegate shall be permitted to represent
more than one (1) Local Union. In no case shall a Local
Union be entitled to more than six (6) votes.
Powers
tions shall have power to adopt, with the
consent of the General President and not in contravention
of this Constitution, such laws as will assist them in orga-
nizing, protecting and strengthening the Local Unions be-
longing thereto, and their oIfcers shall be held responsible
for compliance with all requirements of the Constitution,
Obligation and Ritual of the International Union.
Meetings
tions shall meet in general convention annu-
ally upon a date set by the preceding convention or by the
State, Interstate or Provincial Executive Board or, in the
Art. XXIII.
Section 3.
Art. XXIII.
Section 4.
Art. XXIII.
Section 5.
Art. XXIII.
Section 6.
74
event a date has not been so fxed, by a vote by the majority
oI the Local Unions aIfliated with said State, Interstate or
Provincial Organization.
Minutes
Copies of the minutes of each General Con-
vention and of each meeting of the State, In-
terstate or Provincial Executive Board shall be transmitted
to the General President by the Secretary-Treasurer of the
State, Interstate or Provincial Organization immediately
following the holding of any meeting thereof. The word
Provincial as used in this article shall include Inter-
Provincial Organizations.
Bonding
Every oIfcer, employee or other representa-
tive of a State, Interstate or Provincial Orga-
nization who handles funds or other property thereof shall
be bonded for the faithful discharge of his duties in such
amount and as otherwise required by applicable law. The
expenses of such bond shall be paid by the State, Interstate
or Provincial Organization.
ARTI CLE XXI V
GOVERNMENT OF LOCAL UNI ONS
The laws, rules and procedures by which Local Unions
shall conduct their affairs shall be as follows:
ART. XXI V SUBDI VI SI ON 1
OFFI CERS
Titles
The oIfcers oI a Local Union shall be the
President, Vice President, Recording-Cor-
responding Secretary, Financial Secretary,
and Treasurer. There shall also be three (3) Trustees, who
Art. XXIII.
Section 7.
Art. XXIII.
Section 8.
Art. XXIV.
Subdiv. 1.
Section (a).
75
shall not be automatically designated members of the Lo-
cal Unions Executive Board by virtue of their position,
but may be included on the Executive Board if the Local
Union so provides in its bylaws.
A Local Union may provide in its bylaws for a Business
Manager, in which case he shall be elected and be an of-
fcer. Where a Local Union has a business representative,
an agent, an assistant, or more than any one of these, then
such Local Union must elect a Business Manager. He shall
appoint all committees of the Local Union unless other-
wise provided for in the Local Unions bylaws.
The Business Manager shall be the chief executive of-
fcer oI a Local Union. He shall appoint any and all repre-
sentatives, agents, and assistants, whose wages and allow-
ances shall be determined as provided in the Local Unions
bylaws. They shall work directly under his supervision. He
may terminate them at any time. Should the Business Man-
ager discharge any such employee, then said employee
shall not be reemployed or paid by the Local Union in any
capacity during the term oI oIfce oI such Business Man-
ager, unless his prior approval has been given.
Because of the special burdens and heavy responsibili-
ties imposed on the Business Manager of a Local Union,
no member shall be eligible for election to, be elected to,
nor hold the oIfce oI Business Manager, unless he shall
have been continuously in good standing in the Local
Union electing him for a period of two (2) years preced-
ing the month oI nominations, in addition to Iulflling the
qualifcations Ior other Local oIfce.
OIfcers oI a Local Union may not seek, be elected to
or hold more than two (2) oIfces in the Local Union and
any two (2) oIfces may be combined and be held by one
person, except that the oIfces oI Financial Secretary and
Treasurer shall not be combined or be held by the same
person. In addition to the constitutional oIfcers enumer-
ated above, a Local Union shall elect three (3) auditors,
a conductor, and a guard, and may also elect or appoint
76
such committees and delegates, other than delegates to the
General Convention and to State, Interstate or Provincial
Organizations, as it deems advisable, consistent with ap-
plicable law.
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The terms oI all Local Union oIfcers shall
be three (3) years, except that when and if
permitted by applicable law, the terms of
Local Union oIfce may be Iour (4) years. No member shall
be eligible Ior election, be elected, nor hold oIfce unless he
shall have been a member continuously in good standing in
the Local Union electing him for one (1) year preceding the
month of nominations; and provided that no member shall
be eligible Ior election, be elected, nor hold oIfce unless
he shall also have been a member of the organization for
two (2) years immediately prior to election. The Recording-
Corresponding Secretary of the Local Union must notify
each candidate oI his nomination to Local Union oIfce, and
the candidate must return an acceptance of nomination to
the Recording-Corresponding Secretary, which acceptance
must be received by the Recording-Corresponding Secre-
tary within 10 days oI the date the candidate was notifed oI
the nomination and, in addition, shall have been in regular
attendance at all regularly scheduled Local Union member-
ship meetings and home district membership meetings held
after nomination and before elections, subject, however, to
a reasonable excuse based upon good cause such as physi-
cal incapacity or death in family. Local Unions may also
impose in their bylaws a requirement that candidates for
oIfce must fle nominating petitions in support oI their
candidacies signed by not more than two-hundred (200)
members or two percent (2%) of the entire membership,
whichever is less. Within fve (5) days aIter the nomina-
tions have been concluded the Recording-Corresponding
Secretary shall mail to each member nominated, at his last
known home address, notice of his nomination and of the
Art. XXIV.
Subdiv. 1.
Section (b).
77
oIfce to which he has been nominated, and shall read or
cause to be read the name of each nominee and identify the
oIfce to which such nominee seeks election at each regu-
larly scheduled Local Union membership and district mem-
bership meeting held after receipt of the nominees written
acceptance of nomination. Any Local Union which has not
been in existence for a period of one (1) year may elect
oIfcers Ior the period between the date oI its organization
and the next annual meeting, from among its members in
good standing.
No member shall be eligible for election, be elected nor
hold oIfce who has not during the year, and in the case oI
one seeking the oIfce oI Business Manager two (2) years,
immediately prior to the month of nominations, been con-
tinuously employed at the trade, or who has not actively
sought continuous employment at the trade. This restric-
tion, however, shall not apply to any member employed by
or working for a Local Union or the International Union,
or who has been assigned by his Local Union or the In-
ternational Union to perform work in furtherance of the
interests oI organized labor, in either case in a suIfciently
time-consuming capacity so as to preclude meeting the re-
quirement of continuous employment at the trade or active
seeking of continuous employment at the trade.
II no member Iulflls the Ioregoing conditions oI eligi-
bility Ior a particular oIfce, any member currently in good
standing in the Local Union, and otherwise eligible, shall,
upon being nominated, be eligible to be elected to, and to
hold, that oIfce.
Notwithstanding any other provision of this Constitu-
tion, no member retired from work at the trade shall be
eligible Ior election, be elected nor hold oIfce in any Local
Union. This restriction, however, shall not be applicable
to any member so retired who, at least one (1) year, and,
in the case oI one seeking the oIfce oI Business Manager
at least two (2) years, immediately prior to the month of
nominations, has ceased to accept retirement benefts and
78
returned, or actively and continuously sought to return, to
full time work at the trade. This restriction does not pro-
hibit or preclude the Local Union Irom naming any oIfcer
as Emeritus or from using the peculiar talents of a given
retired individual for the best interests and advancement of
the Local Union. No member owner/operator of an entity
that employs operating engineers shall be eligible for elec-
tion, be elected nor hold oIfce in any Local Union, nor
nominate candidates in any Local Union election. In those
Local Unions operating under the District Administration
Form of Government which provide for some Executive
Board members to be elected from particular districts, the
Local Union in its bylaws may impose a requirement that,
in order to be eligible to run Ior oIfce Irom a particular
district, candidates must have resided within that particular
district for a period up to one year preceding the month of
nominations.
In the event of the death, between nomination and the
time of the last meeting preceding the election, of any
constitutional oIfcer who has been nominated to oIfce in
the forthcoming election, any member of the Local Union,
who is otherwise eligible, shall be eligible to be nominated
and, upon his fling with the Recording-Corresponding
Secretary of his acceptance of such nomination, shall be
eligible to be elected to, and iI elected, to hold the oIfce
to which the deceased oIfcer had been nominated. II the
death occurs after the last meeting preceding the election,
nomination shall be eIIected by fling a statement oI candi-
dacy with the Recording-Corresponding Secretary prior to
the election, but in no event more than fve (5) days aIter
the deceased oIfcer`s death.
Executive Board
The Executive Board of a Local Union shall
be composed of the President, Vice Presi-
dent, Recording-Corresponding Secretary,
Financial Secretary and Treasurer, and the Business Man-
Art. XXIV.
Subdiv. 1.
Section (c).
79
ager where the Local Union has such a position, together
with such other members of the Local Union as may be
elected thereto by the membership of the Local Union.
Powers of the Executive Board
The Executive Board shall be the policy-
making and administrative tribunal of the
Local Union. It shall have such power as
may from time to time be delegated to it by action of the
Local Union, or conferred by the Constitution. All acts
of the Executive Board shall be reviewable by the Local
Union but shall be maintained in full force and effect, sub-
ject to revocation by action of the membership of the Local
Union if taken at the next subsequent membership meet-
ing following the adoption of the act in question. Local
Unions are authorized, upon aIfrmative vote oI the Execu-
tive Board, to pay all expenses for investigation services,
employment of counsel, and other necessary expenditures
in any cause, matter, case or cases where a Local Union
oIfcer, representative, employee, agent or one alleged to
have acted on behalf of the Local Union is charged with
any violation of any law or is sued in any civil action with
respect to any matter arising out oI his oIfcial duties, ex-
cept iI such oIfcer, representative, employee or agent is
charged with a breach of his trust to the Local Union or any
member thereoI, in which event he may be indemnifed
only if the action is terminated favorably to him.
(OHFWLRQRI2IFHUV
Except in Local Unions operating under Dis-
trict Administration Form of Government,
the election oI oIfcers oI a Local Union
shall be held in the month of August, and the nominations
shall be made at a regular meeting prior to the election,
but in no event earlier than the May meeting preceding
Art. XXIV.
Subdiv. 1.
Section (d).
Art. XXIV.
Subdiv. 1.
Section (e).
80
the election. The installation oI newly elected oIfcers shall
take place at the frst regular meeting in September, unless
an earlier installation is directed by the General President.
The Local Union may adopt the Australian ballot system,
in which event the polls shall be kept open for a period
of twelve (12) consecutive hours between the hours of 6
a.m. and 10 p.m. on the date of the election, or may hold
the election through referendum conducted by mail. The
election shall be conducted by secret ballot. OIfcers shall
be elected by a plurality of votes cast, except that the three
(3) candidates receiving the highest number of votes for
the oIfce oI Trustee and the position oI Auditor shall be
elected. Adequate safeguards to insure a fair election shall
be provided by the Local Union, in accordance with the
International Constitution, applicable law, and such rules
and regulations as may be promulgated by the General Ex-
ecutive Board.
No candidate (including a prospective candidate) for
Local Union oIfce, and no supporter oI a candidate Ior
Local Union oIfce, may solicit or accept any direct or in-
direct fnancial support Irom any non-member oI the Inter-
national Union of Operating Engineers or from any foun-
dation, corporation or other entity whose funds are derived
in whole or in part from any person not a member of this
International Union.
Where all candidates duly nominated to Local Union
elective oIfce are unopposed Ior election, a Local Union
may dispense with a secret ballot vote and, in such event,
the Local Union may direct the Recording-Corresponding
Secretary to cast one ballot for the nominees, who shall
then be declared duly elected to their oIfce. Where any
single candidate is duly nominated to Local Union elec-
tive oIfce, and he is unopposed Ior election to that oIfce,
a Local Union may dispense with a secret ballot vote for
that oIfce and, in such event, the Local Union need not
place on the ballot the name of such candidate or the of-
fce to which he has been nominated, and may direct the
81
Recording-Corresponding Secretary to cast one ballot for
the nominee who shall then be declared duly elected to
such oIfce.
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A vacancy in any oIfce shall be flled by
appointment for the unexpired term thereof,
upon vote of a majority of the following
oIfcers, viz: President, Vice President, Recording-Cor-
responding Secretary, Financial Secretary, Treasurer, and
the Business Manager where the Local Union has such a
position. In the event the said oIfcers shall Iail to fll said
vacancy within thirty (30) days after the same shall occur,
then said position shall be flled by secret ballot vote oI
the majority of the membership in good standing present
at the next regular meeting of the Local Union following
the expiration oI the said thirty (30) days. In order to fll
a vacancy under this section, a member must, at the time
of election, be in good standing with respect to payment
of dues and meet the requirements contained in the sec-
ond and fourth paragraphs of Article XXIV, Subdivision
1, Section (b). The oIfce oI any oIfcer who shall Iail to
discharge the duties oI his oIfce Ior Iour (4) successive
meetings may be declared vacant by a majority vote of the
membership in good standing. Any oIfcer or representa-
tive of a Local Union may be removed after due trial, for
causes provided in this Article, upon an aIfrmative vote oI
three-fourths of the membership in good standing in the
same manner and form provided in the trial of members
in this Article.
Protests and Appeals
Any protest relating to the nominations and
elections oI oIfcers, and any protest relat-
ing to the nominations and elections of dele-
gates, must be made to the Local Union by registered mail
Art. XXIV.
Subdiv. 1.
Section (f).
Art. XXIV.
Subdiv. 1.
Section (g).
82
within thirty (30) days after the election, setting forth in
writing the specifc reasons Ior such protest. Any member
making a timely protest may appeal the decision of the Lo-
cal Union thereon to the General Executive Board and the
General Convention in accordance with Article XVII of
this Constitution. Notwithstanding the above, any protest
relating to the nominations and elections of delegates con-
ducted in J anuary or February prior to a General Conven-
tion must be fled with the oIfce oI the General Secretary-
Treasurer within fIteen (15) days aIter the election, setting
Iorth in writing the specifc reasons Ior such protest. All
such protests timely fled shall be reIerred by the General
Secretary-Treasurer to the Credentials Committee of the
General Convention for consideration. An appeal from a
decision of the Credentials Committee may be made to
the Convention, and delegates affected thereby shall not
be seated until said appeal shall have been voted thereon
by the Convention.
POWERS AND DUTI ES OF OFFI CERS
President
It shall be the duty of the President to pre-
side at all meetings, enforce the Constitu-
tion, Laws, Rules, Ritual and customs of the
organization; to decide all questions of order subject to an
appeal to the Local Union; to cast the deciding vote in case
of a tie; to sign all orders on the Treasurer for the disposi-
tion of funds authorized by the Local Union; to be custo-
dian of the quarterly password and examine the credentials
of any member before bestowing the same; to furnish the
General President full and complete information on any
subject within his control or knowledge when requested;
and to perIorm such other duties as appertain to his oIfce or
which may from time to time be delegated to him by action
of the Local Union or other authorities in the organization.
Art. XXIV.
Subdiv. 2.
Section (a).
83
Vice President
The Vice President shall assist the President
in the discharge oI his oIfce, fll his place
in his absence and have such other duties as
are customarily incident to his oIfce.
Recording-Corresponding Secretary
It shall be the duty of the Recording-Corre-
sponding Secretary to keep the minutes of
each meeting; to read all correspondence
and documents; to issue notices for the calling of meet-
ings; to sign all orders on the Treasurer for the disposition
of funds authorized by the Local Union; to notify the Gen-
eral Secretary-Treasurer oI all newly elected oIfcers; to
keep a record of all applications for membership; to have
charge oI the seal and aIfx the same to all oIfcial docu-
ments; to maintain a correct list of the membership and
their addresses; to include a copy of the Financial Secre-
tarys monthly report to the General Secretary-Treasurer
in the minutes; to furnish the General President full and
complete information on any subject within his control or
knowledge when requested, and such other duties as are
customarily incident to his oIfce or which may Irom time
to time be delegated to him by the Local Union or oth-
ers in authority. The Recording-Corresponding Secretary
shall within fIteen (15) days aIter election oI delegates
and alternates to a General Convention report to the Gen-
eral Secretary-Treasurer the names and addresses thereof,
and upon Iailure to do so he shall be subjected to a fne
of Five ($5.00) Dollars. Upon failure of the Recording-
Corresponding Secretary to include in the minutes a copy
of the Financial Secretarys monthly report to the General
Secretary-Treasurer he shall be subjected to a fne oI Five
($5.00) Dollars in each instance. In the absence of both the
President and Vice President from a meeting the Record-
Art. XXIV.
Subdiv. 2.
Section (b).
Art. XXIV.
Subdiv. 2.
Section (c).
84
ing-Corresponding Secretary shall call the same to order
and a President pro tem shall be elected who shall serve as
presiding oIfcer Ior said meeting.
Financial Secretary
It shall be the duty of the Financial Sec-
retary to receive all monies and all funds
paid to the Local Union; to pay all funds
received by him to the Treasurer upon receiving Treasur-
er`s receipt thereIor; to keep a correct fnancial account oI
each member together with the name and address of each;
to announce before the adjournment of each meeting the
amount of funds collected thereat by him; to report at the
end of each month to the Local Union the number of mem-
bers in good standing; to make a monthly written report to
the General Secretary-Treasurer of all admissions, deaths,
resignations, expulsions and suspensions, keep a record
thereof and furnish the Recording-Corresponding Secre-
tary a copy thereof; to keep a record of the dues stamps
received and disbursed. He shall furnish the General Presi-
dent full and complete information on any subject within
his control or knowledge when requested and perform
such other duties as are customarily incident to his oIfce
or which from time to time may be delegated to him by the
Local Union or other authorities.
Treasurer
It shall be the duty of the Treasurer to re-
ceive and hold all Funds collected by the
Financial Secretary and delivered to him;
to give receipt for monies delivered to him; to make no
disbursements without approval of the Local Union and
only upon written order of the President and Recording-
Corresponding Secretary; to make an itemized statement
and report to the Local Union at the end of each quarter
on the condition of his accounts and the transactions of his
Art. XXIV.
Subdiv. 2.
Section (d).
Art. XXIV.
Subdiv. 2.
Section (e).
85
oIfce; to submit his books and accounts Ior inspection by
the Trustees when called upon by them; to furnish the Gen-
eral President full and complete information on any sub-
ject within his control or knowledge when requested and
to perform such other duties as are customarily incident to
his oIfce or which Irom time to time may be delegated to
him by the Local Union or other authorities.
Conductor
It shall be the duty of the Conductor to ex-
amine all present at meetings; to ascertain
that the dues book and/or card of each is
paid up to date; to receive the quarterly current password;
to report to the President all who are without the password;
to conduct all candidates through the initiatory ceremony,
and see that the Ritual is properly administered; to see
that all candidates comply with the Ritual; to see that no
one remains at the meeting or initiation save such as are
members in good standing and who know the password; to
furnish the General President full and complete informa-
tion on any subject within his control or knowledge when
requested and perform such other duties as are customarily
incident to his oIfce or which may Irom time to time be
delegated to him by the Local Union or other authorities.
Guard
It shall be the duty of the Guard to take
charge of the doors at meetings to see that
none but members in good standing and with
the quarterly password enter; to allow no member to retire
without the consent of the President; to announce the names
of all those without the password desiring admission and
to admit such as the President shall designate; to furnish
the General President full and complete information on any
subject within his control or knowledge when requested
and to perform such other duties as are customarily incident
Art. XXIV.
Subdiv. 2.
Section (f).
Art. XXIV.
Subdiv. 2.
Section (g).
86
to his oIfce or which Irom time to time may be delegated to
him by the Local Union or other authorities.
Trustees
It shall be the duty of the Trustees to have
supervision over all funds and property of
the Local Union under such instructions as
they shall from time to time receive from the Local Union;
to see that the funds of the Local Union are deposited by
the proper oIfcers in such banks and accounts therein as
the Local Union shall designate; to examine the bank books
and records oI the Treasurer and any other oIfcer holding
funds of the Local Union and see that the same are cor-
rect; to be custodians of the bonds covering the Financial
Secretary and Treasurer and such other oIfcers as the Local
Union may require to be bonded; to furnish the General
President full and complete information on any subject
within his control or knowledge when requested. They shall
have such other duties as are customarily incident to their
oIfce or which shall Irom time to time be delegated to them
by other authorities. In those instances in which the Local
Union is audited not less than annually by an independent
public accountant, the Trustees shall certify on the basis of
the audit of such independent public accountant. In carry-
ing out the duties imposed upon them by this Section, the
Trustees shall act as a Board of Trustees and no Trustee
shall separately act in his individual capacity as a Trustee.
Auditors
It shall be the duty of the Auditors to audit
the books and accounts of the Recording-
Corresponding Secretary, Financial Sec-
retary, Treasurer, and any other oIfcer or representative
holding Iunds oI the Local Union, at the end oI the oIfcial
quarter each year; and to report thereon at the frst meeting
of the Local Union in the months of J anuary, April, J uly
Art. XXIV.
Subdiv. 2.
Section (h).
Art. XXIV.
Subdiv. 2.
Section (i).
87
and October. However in those instances in which the Lo-
cal Union is audited not less than annually by an indepen-
dent public accountant, the Auditors shall not separately
audit the books and accounts, and shall report on the basis
of such audit. The Auditors shall have power to summon
any oIfcer or member to explain the condition oI his re-
cords or any discrepancy that may appear therein, and any
oIfcer so summoned shall be required to turn over to the
Auditors all papers, records, books, and property belonging
to the Local Union demanded by them; however, the Audi-
tors shall take care not to exercise this power in a manner
so as to interfere with the ongoing duties of the indepen-
dent public accountant where a Local Union engages such.
They and any independent accountant performing an audit
of the Local Union shall furnish the General President full
and complete data on any subject within their control or
knowledge when requested. In carrying out the duties and
powers enumerated in this Section, the Auditors shall act
as a Board of Auditors and no Auditor shall separately act
in his individual capacity as an Auditor.
Bonding
Every oIfcer, employee or other representa-
tive of a Local Union who handles funds or
other property thereof shall be bonded for
the faithful discharge of his duties in such amount and as
otherwise required by applicable law. The expense of such
bond shall be paid by the Local Union.
,QFDSDFLW\RI2IFHUV
In the event a Local Union oIfcer whose
signature is required by any provision of
this Constitution or law is physically or
mentally incapacitated and unable to act or refuses to per-
form his constitutional duties, the Local Union Executive
Board may appoint any constitutional oIfcer properly
Art. XXIV.
Subdiv. 2.
Section (j).
Art. XXIV.
Subdiv. 2.
Section (k).
88
bonded to act in his place and stead and such act shall be
that oI the person acting and the oIfcer who is unable to
act shall not be responsible therefor. In cases where the
Local Union Executive Board fails or refuses to act, the
General President may take whatever action he deems
necessary.
DUTI ES OF MEMBERS
Members of Local Unions shall conform
to and abide by the Constitution, Laws,
Rules, Obligation and Ritual, and the deci-
sions, rulings, orders and directions of any authority of
the International Union empowered by this Constitution
to make them. Each member shall keep the Recording-
Corresponding Secretary properly and promptly notifed
of his residence and any change thereof. Consistent with
applicable law, each member shall do all in his power
to advance the cause of organized labor through the
encouragement of the use of union goods and services.
Members may, upon proper credentials being produced,
obtain admission to meetings of other Local Unions of
the organization.
The admission to membership in confor-
mity to the Constitution, Obligation and
Ritual constitutes a contract between the
member, his Local Union, the International Union and
every other member therein, whereby, in consideration of
the benefts bestowed by such membership, he agrees that
he will not violate the Constitution, Laws, Rules, Obli-
gation and Ritual, and the decisions, rulings, orders and
directions of the International Union or its subordinate
branches, nor the trade rules of the locality in which he
works, and that he will not enter into the employment of
any person conditioned on severing his membership with
this organization.
Art. XXIV.
Subdiv. 3.
Section (a).
Art. XXIV.
Subdiv. 3.
Section (b).
89
LOCAL OFFI CE
Local Unions may establish and maintain a local oIfce or
headquarters and employ any oI their elected oIfcers or
such business representatives and clerks as may be deemed
necessary in the management thereof and, where lawful
and appropriate, may prescribe the delegation of duties of
the several duly elected oIfcers to such business represen-
tatives and clerks, together with such other duties as from
time to time may be deemed advisable; provided, however,
that no one person shall perform the duties of both Finan-
cial Secretary and Treasurer.
STANDI NG COMMI TTEES
Each Local Union shall establish a standing committee on
Safety and Health and a standing committee on Legislation
and Political Action, unless circumstances within a Local
Union render such establishment impracticable, as well as
such committees as it may desire and delegate specifc du-
ties to them. All committees shall render reports promptly
to the Local Union and deliver all funds collected or held
by them to the Financial Secretary, and perform such other
acts and in such manner as the Local Union may from time
to time direct.
PROCEDURE ON APPLI CATI ONS
Applicants for membership shall be referred to a commit-
tee which may consist of the Local Executive Board in the
Local Union, which committee shall investigate the char-
acter and qualifcations oI the applicants, and shall make a
determination as to the qualifcations oI the applicant Ior
membership in the Local Union. This determination shall
be made on the basis of uniform standards, and shall not
be discriminatory in any manner and shall be in accor-
90
dance with all applicable law. The applicant, if approved
by the committee, shall be so notifed and his name and
address shall be placed on the records, and he shall be
furnished a copy of the Constitution and his book and/or
card of membership. If an applicant is rejected, his initia-
tion fee shall be returned to him. A rejected applicant may
reapply for membership after a lapse of ninety (90) days
following his rejection.
DUES, REMI TTANCES, ARREARAGES,
CHARGES, REI NSTATEMENT AND TRI ALS
How Dues Fixed
The dues required to be paid by the mem-
bers to their Local Union shall be fxed by
a majority vote of the members in good
standing, voting by secret ballot at a membership meeting,
after reasonable notice of the intention to vote upon such
question, or by a majority vote of the members in good
standing voting in a membership referendum conducted by
secret ballot, but shall not be less than the minimum dues
provided under the Constitution. When the per capita tax
payable to the International Union is increased pursuant to
the provisions of Article XI, Section 1, the dues charged
by a Local Union shall be increased in a corresponding
amount in order to ensure the fnancial health oI the Inter-
national Union and its Local Unions; provided, however,
that upon application of a Local Union, such increase may
be waived by the General President if he determines that
such waiver is necessary to protect and preserve the best
interests of the Local Union.
Fixing Current Due Dates
Such dues may be fxed and charged on a
monthly, quarterly, semi-annual or yearly
basis and shall become due and payable on
Art. XXIV.
Subdiv. 7.
Section (a).
Art. XXIV.
Subdiv. 7.
Section (b).
91
the frst day oI the terms so fxed. Dues Ior any one oI such
terms shall be known as current dues for that term.
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No member shall be in good standing un-
less he has paid all current dues to the Lo-
cal Union within thirty (30) days after they
shall have become due and payable. No member whose
dues have been withheld by his employer for payment to
the Local Union, pursuant to his voluntary authorization
provided for in a collective bargaining agreement, shall be
declared ineligible to vote or be a candidate Ior oIfce in
the Local Union solely by reason of alleged delay or de-
fault in the payment of dues.
Penalties for Members in Arrears to Local Union
Members who have not tendered their cur-
rent dues on or before the day such dues
shall have become due and payable may be
removed from employment where valid collective bargain-
ing agreements or applicable law permits. Members who
have not paid their current dues or assessments within thir-
ty (30) days after they shall have become due and payable
may upon vote of the Local Union be denied voice and
vote therein, be barred from meetings or removed from
committees or both, or suspended from membership.
OIfcers who have not paid their current dues or assess-
ments within ninety (90) days after they shall have become
due and payable may upon vote of the Local Union be re-
moved Irom oIfce.
Members who have not paid their current dues or as-
sessments within six (6) months after they shall have be-
come due and payable may, upon report thereof by the Fi-
nancial Secretary at a regular meeting of a Local Union, be
expelled by a majority vote of the members present.
The Local Executive Board is likewise authorized
Art. XXIV.
Subdiv. 7.
Section (c).
Art. XXIV.
Subdiv. 7.
Section (d).
92
and empowered to take the same action provided herein-
above and to enforce the foregoing penalties for arrear-
ages against members, whenever, upon fndings by it said
arrearages are found to exist, and the same authority and
power is conferred upon Supervisors in charge of Local
Unions under International Supervision.
No member oI any Local Union shall seek to aIfliate
with another Local Union save in the manner and form re-
quired by the Constitution. Such member shall be required
to make full disclosure to such other Local Union of his
previous memberships including all Iacts as to any fne,
penalty or other disability imposed within the organiza-
tion, and existing and unsatisfed against him, and in addi-
tion such member shall strictly conform to and discharge
any and all constitutional requirements governing the lift-
ing oI the said fne, penalty or disability.
In addition to the penalties hereinabove provided, Lo-
cal Unions may also impose the penalties provided for the
causes herein set forth. Except for failure to tender dues,
no member shall be subjected to any of the penalties above
enumerated unless the trial procedures set forth in Subdivi-
sion 7, Section (l)-(s) of this Article have been followed.
Other Causes for Fines, Suspensions or Expulsion
Any oIfcer or member oI a Local Union
who becomes an habitual drunkard; who
wrongs a fellow member or defrauds him;
who commits an offense discreditable to the International
Union or its subdivisions; who seeks to dissolve any Local
Union or separate it from the general organization; who
willfully engages in slander or libel where such slander
or libel is contrary to the responsibility of every member
toward the Organization as an institution or specifcally
interferes with the Organizations performance of its le-
gal or contractual obligations; who violates the trade rules
of the locality in which he is working; who fraudulently
receives, misapplies, converts or embezzles the funds of
Art. XXIV.
Subdiv. 7.
Section (e).
93
any subdivision of the International Union or the monies
of any member entrusted to him; who violates his obliga-
tion or any section of the Constitution, Rules, Edicts and
Ritual of the International Union; who divulges the pass-
word to anyone except the oIfcer authorized to receive the
same; who is guilty of insubordination; or who refuses to
acknowledge or perform the lawful command of those au-
thorized within the International Union to issue the same,
may be disciplined or, upon trial therefor and conviction
thereoI, be fned, suspended or expelled Irom his Local
Union.
Any member working contrary to a declared strike or
the rules established by the Local Union by reason of a
lockout shall, upon trial and conviction thereof, be subject
to a fne oI not less than Twenty-fve ($25.00) Dollars, or
expulsion, or both. His name shall be reported to his Local
Union, which shall enforce this Section, charge and col-
lect the fne so imposed, under penalty oI expulsion. Local
Unions shall have the power to fx such other oIIenses as
from time to time may be determined by them. Notwith-
standing the foregoing provisions of this Section, the pen-
alty prescribed upon a traveling member shall not exceed
that amount normally imposed by a Local Union against
its own members who have been found guilty of a similar
offense or violation.
Payment of Fines
All fnes legally levied or imposed shall be
charged by the Financial Secretary against
the member from whom due and must be
paid by the member involved to the Financial Secretary
within thirty (30) days. Wherever a fne is imposed upon a
member, his sentence shall automatically be read to incor-
porate the following provisions. Members thirty (30) days
in arrears in the payment oI fnes shall be denied voice
and vote in their Local Union, and thereaIter until the fne
is paid no dues owed by such member can be received or
Art. XXIV.
Subdiv. 7.
Section (f).
94
accepted by the Local Union. Such refusal to accept dues
shall not, however, form the basis for removal from em-
ployment unless authorized by law. Members sixty (60)
days in arrears in the payment oI fnes shall be removed
from committees, barred from meetings and suspended
from membership. Members ninety (90) days in arrears
shall be removed Irom oIfce. Members six (6) months in
arrears shall be expelled from membership. In addition to
the penalties provided for herein, Local Unions are autho-
rized to secure the payment oI fnes through appropriate
legal proceedings.
Where Other Local Unions are I nvolved
Any fnes levied by any Local Union on a
member of another Local Union shall be
reported to and entered upon the books of
the Local Union to which he belongs, which shall charge
the same to and collect from the member involved. Upon
collection of the same such Local Union shall forward the
money to the Local Union which levied the same. Failure
to transmit such fne as provided shall provide grounds Ior
suspension of the charter of the Local Union charged with
such duty.
Reinstatement of Suspended Members
A member who has been suspended under
the provisions of this subdivision may be
restored to membership in good standing
and to his membership number only by making applica-
tion together with the payment of all dues, assessments and
fnes then in arrears, the reinstatement assessment and in
addition an amount equal to three (3) months dues. When
all the Ioregoing requirements have been Iulflled by the
applicant, notice thereof shall be given by the Financial
Secretary to the General Secretary-Treasurer on the next
monthly report, accompanied by the reinstatement assess-
Art. XXIV.
Subdiv. 7.
Section (g).
Art. XXIV.
Subdiv. 7.
Section (h).
95
ment and other charges due thereon. However, in cases
where the cost of reinstatement exceeds the amount of the
current initiation fee, the Local Union may accept such in-
dividuals as new members.
Reinstatement of Expelled Members
A member who has been expelled for any
of the causes provided in this Article may
be restored to membership in good standing
and to his membership number only by application there-
for on the form furnished by the General Secretary-Trea-
surer, together with the payment of all dues, assessments
and fnes in arrears, the reinstatement assessment and, in
addition, an amount equal to six (6) months dues. When
all the Ioregoing requirements have been Iulflled, and the
Local Union shall have granted such application pursu-
ant to the procedure on applications contained in Article
XXIV, Subdivision 6, notice thereof shall be given by the
Financial Secretary to the General Secretary-Treasurer on
the next monthly report, accompanied by all documents,
reinstatement assessment and other charges due thereon.
The aIfliation with a Local Union oI any person previ-
ously expelled from any Local Union of the International
Union of Operating Engineers and not reinstated as herein-
above provided shall be null and void and, upon discovery
of the fact by the General Executive Board or the General
OIfcers, shall be cancelled upon the records oI the Interna-
tional Union of Operating Engineers and the Local Union
with which such person has become aIfliated shall imme-
diately strike his name from its records.
Local Unions Charged Upon
Reported Status of Members
The General Secretary-Treasurer shall
charge to the Local Unions and the Local
Unions must pay all per capita taxes and as-
Art. XXIV.
Subdiv. 7.
Section (i).
Art. XXIV.
Subdiv. 7.
Section (j).
96
sessments due Irom the Local Union to the General OIfce
upon the status of members reported by the Local Union to
the General Secretary-Treasurer, which per capita taxes and
assessments shall continue to be charged to and collected by
the General Secretary-Treasurer from the said Local Union
until a change in the status of any member shall be reported
to and fled with the General Secretary-Treasurer.
When a Local Union Not Charged
With Certain Per Capita Taxes
In instances where the penalty of suspension
or expulsion is invoked upon members as
provided in this Article, or where members
have died or have properly transferred or withdrawn, Local
Unions may, upon report to the General Secretary-Treasur-
er of each suspension, expulsion, transfer, withdrawal, or
death, be relieved from further payment (including that due
for the month in which the report is made but not for the
month in which the death occurs or withdrawal is made) of
the per capita tax due from the Local Union to the General
Secretary-Treasurer on such members reported.
Trials
A Local Union shall have the power to dis-
cipline, fne, suspend or expel its members,
upon causes provided in this Article, and
provided further that any member charged with the offens-
es designated in this Article shall be tried within the juris-
diction of the Local Union where said offense was com-
mitted, in which case a copy of the verdict shall be sent to
the Local Union to which the member charged belongs.
All charges must be preferred in writing
and signed by the complainant. Where the
President is not the complainant, the charg-
es must contain a signed statement of either the complain-
Art. XXIV.
Subdiv. 7.
Section (k).
Art. XXIV.
Subdiv. 7.
Section (l).
Art. XXIV.
Subdiv. 7.
Section (m).
97
ant or some other member that he has personal knowledge
of the facts which form the basis of the charges. Charges
must be fled within thirty (30) days oI the event or cir-
cumstance giving rise to the charge, or within thirty (30)
days of learning of the event or circumstance, whichever
is later. Charges are to be fled with the Recording-Cor-
responding Secretary and read by the Recording-Corre-
sponding Secretary at the next succeeding meeting fol-
lowing the fling oI same. Immediately upon fling oI such
charges the Recording-Corresponding Secretary shall
notify the defendant in writing, enclosing a copy of said
charges, and oI the date set Ior the fling oI the answer or
defense or the entering of a plea by the defendant, which
date shall be not less than two (2) nor more than four (4)
weeks thereafter. In addition, where the defendant is a
traveling member, the Recording-Corresponding Secre-
tary shall immediately send a copy of the charges to the
Recording-Corresponding Secretary of the defendants
Local Union. Charges shall be specifc, stating clearly,
concisely and as accurately as possible the time, place,
nature and circumstances of the offense alleged.
Within thirty (30) days after the pleadings
are fled, or the plea entered, or the time
elapsed in which the same must be fled or
entered, the Local Executive Board, or any other Board
within the Local Union established for the purpose, may
at its discretion, order a pre-trial hearing and direct the
complainants and defendants to appear at said hearing. All
parties shall be notifed in writing by Certifed or Regis-
tered Mail providing the date, time and place of the hear-
ing and the specifc charges to be pre-tried. The purpose
oI the hearing shall be to defne the issues and to make a
preliminary determination as to whether the charges have
merit. The Board, upon hearing all the parties, may at its
discretion, decline to process these charges after such hear-
ing, as being without merit. However, such decisions of
Art. XXIV.
Subdiv. 7.
Section (n).
98
the Board not to process the charges, shall be appealable to
the General Executive Board in accordance with the pro-
visions of this Article. The failure of the complainant to
appear at such pre-trial hearings may result in a dismissal
of the charges by the Board. The Board shall also have
the power to settle the matter at such hearing in the event
such settlement is mutually agreeable to all parties. In the
event the Board does not invoke the pre-trial procedures
within the time set forth herein, or invokes the procedures
and determines to proceed with the charges on their mer-
its, the following provisions shall then become effective:
AIter the pleadings are fled or the plea entered, or the time
elapsed within which the same must be fled or entered,
and the pre-trial procedure has been invoked, and/or time
limitation for same expired, the President shall cause the
parties to be notifed oI the trial date, which must be the
next regular meeting thereafter. Unless a request for post-
ponement of the trial shall have been made to and granted
by the President, the trial shall proceed upon the date set.
Complainants and defendants may present their own cases
or by counsel selected from among the membership of the
International Union of Operating Engineers. After all the
evidence is in, and a full and impartial hearing has been
had upon the issues, the President shall distinctly state the
charge or charges and present the matter to the members
present at said meeting for a vote.
The said members shall vote by ballot ei-
ther guilty or not guilty on the merits of
each individual charge. Three tellers shall
be appointed, one by the defendant, one by the complain-
ant and one by the President (if the President is either com-
plainant or defendant then the third teller shall be elected
by the meeting), which tellers shall collect the ballots and
announce the verdict. A three-fourths vote of the member-
ship recorded as present shall be required for conviction
in cases involving expulsion, and a majority vote in cases
Art. XXIV.
Subdiv. 7.
Section (o).
99
involving other penalties. If a verdict of guilty is returned,
the President shall then prescribe the penalty permitted by
the vote to be imposed.
In the event the complainant fails to appear
at the time set for trial the President may
dismiss the charges unless otherwise deter-
mined by a two-thirds vote of the members present. In the
event the defendant willfully fails to appear at the time of
the trial the said trial may be conducted in his absence,
a vote taken by the tellers appointed by the President, a
verdict announced and a penalty imposed.
Any member other than the President of the
Local Union preferring charges against an-
other member as provided herein, must at
the time oI fling the charges deposit FiIty Dollars ($50.00)
in cash or certifed check Ior each individual charge and
for each signatory to each such individual charge against
each member. In the event a charge is proved, the deposit
Ior that charge shall be returned to the member fling the
same, and if not proved, shall be forfeited to the Local
Union. Any member oI a Local Union fned, disciplined
or expelled shall have the right to appeal to the General
Executive Board in the manner and form provided in the
Constitution and the Laws and Rules established thereun-
der. Any appeal rightIully taken and properly fled wherein
the penalty of expulsion is imposed shall cause the order of
expulsion to be stayed until decision of the General Execu-
tive Board thereon. Unless by action of the General Execu-
tive Board thereon, waiving the requirement, no member
may appeal Irom the imposition oI a fne unless and until
such fne shall frst be paid by him.
Trials of members within Local Unions under Inter-
national Supervision shall be by and before the General
President, or his deputy thereunto assigned, who shall be
authorized and empowered to hear and decide the same.
Art. XXIV.
Subdiv. 7.
Section (p).
Art. XXIV.
Subdiv. 7.
Section (q).
100
In all such cases charges of infractions of the Constitu-
tion, bylaws Ritual and rules against a member shall be
fled with the Supervisor who shall serve the accused with
copies thereof and upon reasonable notice thereafter, the
General President or his deputy thereunto assigned shall
hear, try and decide the case, and administer the penalty
from which sentence the aggrieved party may appeal to the
General Executive Board in the manner governing appeals
under the Constitution.
In the event the President of the Local Union is the com-
plainant or the defendant he shall not participate as a mem-
ber of the Local Executive Board in the pre-trial functions
entrusted to the Board under Section (n) of this Subdivi-
sion, and shall not exercise any of the functions entrusted
to the President under said Section (n) or under Sections
(o) and (p) of this Subdivision. All functions entrusted to
the President under said Sections (n), (o) and (p) shall,
when the President is either the complainant or the defen-
dant, be exercised by the Vice President or, if he is either
the complainant or the defendant, then by any other Local
Union oIfcer selected by the Local Executive Board.
In the event charges are fled by a member
against an oIfcer oI a Local Union, the Lo-
cal Executive Board must conduct a pre-
trial hearing of the nature and in the manner described in
Subdivision 7, Section (n) of this Article. The decision of
the Local Executive Board, whether it be to decline to pro-
cess the charges as being without merit or to submit the
charges for trial within the Local Union, shall be subject
to appeal to the General Executive Board in the manner
governing appeals under the Constitution. If, on appeal,
the General Executive Board upholds the decision of the
Local Executive Board not to process the charges, or if the
General Executive Board reverses the decision of the Lo-
cal Executive Board to submit the charges for trial within
the Local Union, there shall be no Local Union trial and
Art. XXIV.
Subdiv. 7.
Section (r).
101
the charges shall be dismissed. Notwithstanding any other
provision of this Constitution there shall be no further ap-
peal from such decision. If the General Executive Board
reverses the decision of the Local Executive Board not to
process the charges, or if the General Executive Board up-
holds the decision of the Local Executive Board to submit
the charges for trial within the Local Union, it shall remand
the charges to the Local Union for trial within the Local
Union in the manner provided by this Article. Under the
procedure herein provided, a reading of the charges at a
membership meeting prescribed in Subdivision 7, Section
(m) of this Article, shall be postponed until such time as
the charges are ripe for trial at a membership meeting.
The Local Union shall keep minutes of all
trials conducted by it. A stenographic record
of trial proceedings need not be taken unless
the presiding oIfcer oI the trial so orders, or unless the
charging party or the charged member so requests within
seven (7) days of receipt of the notice of trial. The party
requesting that such recording be made shall be respon-
sible for the cost of the recording and the preparation of the
transcript by a competent reporter, chosen by the presiding
oIfcer. Three (3) copies oI the transcript shall be prepared
so that each party and the Local Union may have one. The
reporter shall attach an aIfdavit to each copy, stating that it
is a true and accurate transcript of the proceeding.
RECALL OF OFFI CERS
Whenever twenty-fve (25) percent oI the members in good
standing in a Local Union shall fle with the Recording-
Corresponding Secretary a petition requesting the recall
Irom oIfce oI any oIfcer oI the Local Union elected and
holding oIfce Ior a term oI more than one year and within
thirty (30) days thereafter a special meeting of the Local
Union shall have been called and held with all petition-
Art. XXIV.
Subdiv. 7.
Section (s).
102
ers present thereat, which special meeting shall have been
devoted to verifying the signatures of all petitioners to said
recall petition and the certifying by the Financial Secretary
of the good standing of each petitioner, then and not other-
wise the Recording-Corresponding Secretary shall notify
all members in good standing oI: 1st, the fling oI the peti-
tion; 2nd, the holding of such special meeting; and 3rd, the
date set for the voting upon the recall (which date shall be
the third regular meeting following the mailing of such no-
tice) and a vote thereon shall be taken at such meeting. The
voting upon the recall shall be by secret ballot conducted
by three tellers one of whom shall be a petitioner, one ap-
pointed by the President and one elected by the members
present at the meeting. No oIfcer shall be recalled unless
there be cast a two-thirds vote of the entire membership in
good standing in favor thereof, and upon the rendition of
the required vote the said oIfce shall become vacant.
QUORUM
A quorum for the transaction of business at meetings of a
Local Union shall consist of not less than seven (7) mem-
bers in good standing.
MEETI NGS
Monthly Meetings
All Local Unions shall have at least one reg-
ular meeting each month, except that a Local
Union may dispense with monthly meetings
during a vacation period, not to exceed three successive
months in one calendar year. Local Unions may also hold
as many other regular meetings as may be necessary for
the proper transaction of business. Where Local Unions are
authorized to operate under a District Administration Form
of Government, or have received special dispensation, the
Art. XXIV.
Subdiv. 10.
Section (a).
103
meetings thereof, whether general or district, regular or
special, shall be as required by the bylaws.
Annual Meetings
The annual meeting of Local Unions shall
be the last meeting in J une of each year.
Special Meetings
Special meetings shall be called when or-
dered by the President, or by the Business
Manager, or by a majority of the following
oIfcers: Vice President, Recording-Corresponding Secre-
tary, Financial Secretary, and Treasurer, or upon written
request of one-third of the members of the Local Union in
good standing, or pursuant to a specifc bylaw provision
specifying another means for calling such meetings.
RELATI ONS WI TH EMPLOYERS
Contracts
Proposed collective bargaining agreements
and modifcations thereoI may be nego-
tiated for Local Unions by the Business
Manager, by a committee, by the Local Executive Board,
or by the Business Representative. Such agreements and
modifcations thereoI shall not be executed until they have
been presented at the next membership meeting following
the negotiation of the proposed agreement and have been
approved by the membership affected, provided, however,
that a Local Union may delegate to its Local Executive
Board or to its bargaining committee authority to approve
such agreements and modifcations without such submis-
sion oI the same to vote oI its membership. Copies oI fnal
agreements and modifcations thereoI negotiated by Local
Unions shall be fled with the General President immedi-
ately after execution.
Art. XXIV.
Subdiv. 10.
Section (b).
Art. XXIV.
Subdiv. 10.
Section (c).
Art. XXIV.
Subdiv. 11.
Section (a).
104
Any vote taken under and pursuant to Arti-
cle XXIV, Subdivision 11, Section (a) may,
if so voted by a majority of the member-
ship of a Local Union voting, be limited to those members
who have not retired under any negotiated pension plan,
employer-fnanced employee plan, the General Pension
Fund, or headquarters staff plan. Each such retired mem-
ber shall, however, be entitled to have a voice at any such
meeting.
Pension Reciprocity
In order to advance the common interest by
assuring Iull reciprocity oI pension benefts
among all plans covering Operating En-
gineers, it shall be the duty and obligation of each Local
Union, consistent with applicable law, to secure provisions
Ior pension reciprocity in all pension beneft plans negoti-
ated by the Local.
BYLAWS AND TRADE RULES
Local Unions may adopt and amend bylaws and trade
rules by a majority vote of the members voting at a regu-
lar membership meeting, at a special meeting called for
that purpose, or in a mail referendum of the membership.
No bylaws or trade rules may be adopted or amended in
contravention of the Constitution, Laws, Rules, Obligation
or Ritual of the International Union, or the decisions, rul-
ings, orders and directions of any authority of the Inter-
national Union empowered by this Constitution to make
them. Copies of all bylaws and trade rules, immediately
following their adoption or amendment, shall be trans-
mitted by the Recording-Corresponding Secretary to the
General President and the General Secretary-Treasurer.
Bylaws and trade rules or amendments thereto, in order to
become eIIective, must frst be adopted by Local Unions
Art. XXIV.
Subdiv. 11.
Section (c).
Art. XXIV.
Subdiv. 11.
Section (b).
105
and thereafter approved by the General President. Where a
Local Union does not adopt bylaws of its own, the provi-
sions of the International Constitution shall be its bylaws
wherever applicable.
DI SSOLUTI ON
No Local Union shall dissolve or withdraw from the Inter-
national Union of Operating Engineers over the dissent of
seven (7) members in good standing.
PARLI AMENTARY LAW
Roberts Rules of Order shall be the parliamentary author-
ity on all procedure not covered by the Constitution, Laws,
Rules, Obligation and Ritual of the International Union or
Local Unions subordinate thereto.
ART. XXI V - SUBDI VI SI ON 15
STAFF EDUCATI ON
The International Union will conduct educational pro-
grams for Local Union Business Managers, business rep-
resentatives, and staff regarding their obligations as union
employees. All such personnel who commence employ-
ment on or aIter May 1, 2010 shall, within the frst year oI
their employment, attend an educational program conduct-
ed by the International Union, with reasonable expenses
defrayed by the International Union.
ARTI CLE XXV
APPRENTI CESHI P
Local Unions should establish an apprenticeship and
training committee which shall have the responsibility of
developing and operating registered apprenticeship pro-
grams and such other programs as may be desirable to train
members in the complete mastery of our craft jurisdiction.
106
Where Local Unions have established joint apprenticeship
committees with employers, and where Local Unions have
adopted standards for training apprentices, such appren-
ticeship standards shall not be less than the minimum stan-
dards established by the National J oint Apprenticeship and
Training Committee for Operating Engineers.
Each Local Union shall register with the General Secre-
tary-Treasurer its current apprenticeship standards.
All of the registered apprentice engineers of this Inter-
national Union shall be subject to the rules and regulations
thereoI, and they shall also be subject to fnes and penal-
ties the same as journeymen members of the International
Union of Operating Engineers.
ARTI CLE XXVI
DI STRI CT ADMI NI STRATI ON FORM
OF LOCAL UNI ON GOVERNMENT
Where the circumstances of a Local Union
so require, and appropriate bylaws have
been adopted by the Local Union and thereafter approved
by the General President, it may proceed under a district
administration form of government and shall:
(a) Designate or amend the districts into which its ter-
ritorial jurisdiction is confned;
(b) Provide for the organization, administration and
supervision of its districts;
(c) Provide for the holding of regular monthly or quar-
terly district meetings with authority limited to making
recommendations to the Local Union, initiating legis-
lation to the Local Union, holding trials of members,
electing such representation to the Local Executive
Board, committees and similar bodies as may be pro-
vided under its bylaws, and, where the Locals bylaws
specifcally so provide, voting on bylaw amendments;
(d) Designate and empower the Local Executive Board,
in addition to its constitutional powers, to act for the
Art. XXVI.
Section 1.
107
Local Union in business and administrative matters (in-
cluding reinstatement of members and similar duties)
in the interim between regular meetings of the general
membership of the Local Union, all of which acts of
the Local Executive Board to remain in full force and
effect subject only to revocation by action of the gen-
eral membership of the Local Union if taken at the next
subsequent general membership meeting following the
adoption of the act in question;
(e) Authorize and empower the acts of a Local Business
Manager;
(f) Adopt or amend bylaws in accordance with Article
XXIV, Subdivision 12, and fx dues in accordance with
Article XXIV, Subdivision 7, Section (a);
(g) Provide for the holding of but two or more regular
meetings of the general membership per year and the
method of convening other called meetings thereof, all
of which meetings to be deemed regular meetings of
the general membership for the purposes outlined in the
Constitution;
(h) Provide Ior the nomination oI Local Union oIfcers
at district or general membership meetings prior to the
election, but in no event earlier than a May meeting pre-
ceding the election, with elections during the month of
August by mail referendum conducted by secret ballot
among the general membership or by Australian ballot
system, in which event the polls shall be kept open for
a period of twelve (12) consecutive hours between the
hours of 6 a.m. and 10 p.m. on the date of election and
with the installation oI elected oIfcers during the month
of September;
(i) Provide for the nomination of delegates to General
Conventions at district or general membership meet-
ings during the months of December or J anuary prior
to the Convention, with elections during the month of
February by mail referendum conducted by secret ballot
108
among the general membership or by Australian ballot
system, unless under the provisions of the Local Union
bylaws they are elected prior thereto, but in no event
more than one (1) year prior to the frst day oI the Con-
vention;
(j) Provide for adequate safeguards to ensure a fair elec-
tion in elections conducted pursuant to subsections (h)
and (i) of this Section, in accordance with the Interna-
tional Constitution, applicable law and such rules and
regulations as may be promulgated by the General Ex-
ecutive Board;
(k) Exercise such other powers as may be deemed nec-
essary and incidental in effectuating the normal admin-
istration of business of the Local Union.
TRI ALS OF MEMBERS UNDER
DI STRI CT ADMI NI STRATI ON FORM
OF GOVERNMENT
Whenever a Local Union shall be qualifed
to proceed under the District Administration
Form of Government, the trials of any of its members, upon
charges, may if its bylaws so provide, be before the district
membership meeting and in such cases any infraction of
the Constitution, Ritual, bylaws or rules by a member in-
voking discipline against him which would otherwise be
triable under the Constitution before a general member-
ship meeting of a Local Union shall, under this section and
with the same force and effect, be heard and acted upon
by and before the regular district membership meeting in
the district wherein the infraction or cause arose. All perti-
nent constitutional procedure governing trials, charges and
penalizing of members, shall apply to such trial and pro-
cedure before regular district membership meetings, and
any member aggrieved by such procedure or the penalty
assessed therein may appeal therefrom directly to the Gen-
eral Executive Board in the manner and form governing
appeals under the Constitution.
Art. XXVI.
Section 2.
109
ART. XXVI I
THE GENERAL PENSI ON FUND PLAN
The terms and provisions of the General Pension Fund
Plan, as amended from time to time by the trustees thereof,
are printed in a separate booklet available through each
Local Union and distributed to each participant. Partici-
pation in the General Pension Fund Plan is a mandatory
obligation of all Local Unions.
ART. XXVI I I
HONORARY POSI TI ONS CREATED
There are hereby established the Honorary Titles of GEN-
ERAL PRESIDENT EMERITUS, GENERAL SEC-
RETARY-TREASURER EMERITUS and GENERAL
COUNSEL EMERITUS and such titles may only be con-
ferred by the General Convention when in session or the
General Executive Board and only upon oIfcials who have
served not less than fve years in either oI the positions oI
General President, General Secretary-Treasurer or General
Counsel.
ART. XXI X
SAVI NGS CLAUSE
If any provision of this Constitution is held to be invalid
by operation of law or by any competent authority or
tribunal, the remainder of the Constitution or the ap-
plication of such provision to persons or circumstances
other than those as to which it has been held illegal or
invalid shall not be affected thereby. If any provisions of
this Constitution shall be found or declared to be illegal,
invalid or inoperative by any competent authority of the
legislative, executive, judicial or administrative branch
of a Federal, State or Provincial government, the General
Executive Board is empowered to substitute during the
period of its invalidity a provision which will meet the
objections to its invalidity and which will be consistent
110
with the intent and purpose of the invalid provision.
Notwithstanding any other provision of this Constitu-
tion, if, at any time, the General Executive Board shall
deem it necessary for the protection of the welfare and
best interest of the International to amend any provi-
sion oI this Constitution because oI any fnding, dec-
laration, order or judgment by any competent authority
of the legislative, executive or administrative branch of
a Federal, State or Provincial government, it shall be
empowered to enact such amendment and such amend-
ment shall have the same force and effect as any other
provision of this Constitution.
Wherever reference is made to gender in this Constitu-
tion the same shall be interpreted and construed as includ-
ing both male and female. This interpretation shall also
be applied by Local Unions and other subordinate bodies
of the International Union to their respective bylaws.
111
ARTICLE SECTION PAGE
AFFILIATION WITH AFL-CIO I 1 5
AGENCY SHOP . . . . . . . . . . . . . XI 1 31
ALTERING DUES BOOK AND/
OR CARD, penalty . . . . . . . . . . . XX 12 70
AMENDING CONSTITUTION . XVIII 1 62
AMENDMENTS BY GENERAL
EXECUTIVE BOARD . . . . . . . . V 2 19
AMOUNT OF APPLICANT
SERVICE DUES . . . . . . . . . . . . . XV 3-d 50
AMOUNT OF TRAVEL
SERVICE DUES . . . . . . . . . . . . XV 3-e 51
APPEALS TO GENERAL
EXECUTIVE BOARD . . . . . . . . XVII 1-a,b,c 59
XXIV Sub.1-g 82
XXIV Sub.7-q 100
APPEALS TO GENERAL
CONVENTION . . . . . . . . . . . . . . XVII 2 61
APPEALS, pendency of . . . . . . . XVII 3 61
APPLICANTS SERVICE DUES: XV 3-c 50
Amount of . . . . . . . . . . . . . . . . XV 3-d 50
Duration . . . . . . . . . . . . . . . . . . XV 3-c 50
APPLICATION FOR CHARTERS XIV 2 39
APPLICATIONS:
Full disclosure on XXIV Sub.7-d 93
Misrepresentation . . . . . . . . . . XVI 2 57
APPRENTICE ENGINEERS:
(See Registered apprentice engineers)
APPRENTICESHIP . . . . . . . . . . . XXV 106
I NDEX
112
ARREARS, penalties . . . . . . . . . . XXIV Sub.7-d 92
ASSESSMENTS:
General . . . . . . . . . . . . . . . . . . . XI 3 33
By General Convention and
General Executive Board . . . . XI 6 34
Reinstatement . . . . . . . . . . . . . . XI 5 a-b 34
AUDITORS OF LOCAL UNIONS XXIV Sub.2-i 87
AUSTRALIAN BALLOT:
Election oI Local Union OIfcers . XXIV Sub.1-e 80
Under District Administration
Form XXVI l-h, i 108
BENEFICIARIES . . . . . . . . . . . . . XX 9 68
BONDING:
General Secretary-Treasurer . . . VIII 3 27
International Union OIfcers,
Employees, Representatives. IV 7 18
Local Union OIfcers,
Employees, Representatives . . XXIV Sub.2-i 87
Local Union Trustees . . . . XXIV Sub.2-h 87
State, Interstate and Provincial
Organizations . . . . . . . . . . . . . XXIII 8 75
BRANCH ENGINEERS:
Application for sub-charters . . . XIV 4 40
Defnition . . . . . . . . . . . . . . . . . . XIV 7 43
Form of charter . . . . . . . . . . . . . XIV 9 44
Government of . . . . . . . . . . . . . . XIV 5 40
Voting rights . . . . . . . . . . . . . . . . XIV 5 40
BUSINESS AGENTS AND
REPRESENTATIVES:
Appointed and terminated by
Business Manager . . . . . . . . . . XXIV Sub.1-a 76
Good standing . . . . . . . . . . . . . . XVI 6 58
113
BUSINESS MANAGER:
Authority to appoint and
terminate Representatives,
Agents and Assistants . . . . XXIV Sub.1-a 76
ChieI Executive OIfcer . . . . . XXIV Sub.1-a 76
Constitutional OIfcer . . . . . . . XXIV Sub.1-a 76
Member, Local Executive Board XXIV Sub.1-c 79
Qualifcations . . . . . . . . . . . . . . XXIV Sub.1-a 76
Where Mandatory . . . . . . . . XXIV Sub.1-a 76
BYLAWS OF LOCAL UNION . . XXIV Sub.12 105
CAUSES FOR SUSPENSION
OR EXPULSION:
Altering Dues Book and/or
Card of Deceased . . . . . . . . . XX 12 70
Belonging to more than one
Local Union . . . . . . . . . . . . . XVI 2 57
Circulating defamatory
literature . . . . . . . . . . . . . . . . XVI 1 57
Dissension, slander, libel,
embezzling, drunkenness,
defrauding, offenses, wrongs. . XXIV Sub.7-e 93
Fines . . . . . . . . . . . . . . . . . . . . . XXIV Sub.7-f,g 94
Making Fraudulent Application XVI 2 57
Non-payment of dues . . . . . . . . XXIV Sub.7-d,e,f 92
Radicalism, Etc . . . . . . . . . . . . XVI 4 58
Violating trade rules, oath,
insubordination . . . . . . . . . . . XXIV Sub.7-e 93
CHARGES:
By General Convention . . . . . . III 1 8
By General Executive Board . . XVI 1 57
By General OIfcer against
member . . . . . . . . . . . . . . . . . XVI 5 58
By General President . . . . . . . . VI 2 22
By General Secretary-Treasurer XV 5 56
By Local Union . . . . . . . . . . . . XXIV Sub.7-m 97
By Member . . . . . . . . . . . . . . . XXIV Sub.7-m 97
114
CHARTERS:
Application for . . . . . . . . . . . . . . XIV 2 39
Classifcations oI . . . . . . . . . . . . XIV 1 39
Death Benefts under
suspension of . . . . . . . . . . . . . . XX 8 68
Fees . . . . . . . . . . . . . . . . . . . . . . . XI 3 33
Forms of . . . . . . . . . . . . . . . . . . . XIV 9 44
Granted and suspended by:
General Convention . . . . . . . . III 1 8
General Executive Board . . . . V 2 19
General President . . . . . . . . . . VI 4 24
Jurisdiction described on face of XIV 9 44
Records under suspension of . . . XIV 8-b 43
Revocation of, under
International Supervision . . . . VI 3 22
Responsibilities oI oIfcers and
members under suspension of . . XIV 8-a, b, c, d 43
CLEARANCE CARDS . . . . . . . . . XV 2 & 6 45
COMMITTEES:
General Convention . . . . . . . . . . III 9 15
Local Union . . . . . . . . . . . . . . . . XXIV Sub.1-a 76
XXIV Sub. 5 90
CONFLICT OF JURISDICTION. . XIII 3 38
CONDUCTOR, Local Unions . . . . XXIV Sub.2-f 86
CONSTITUTION:
Amending . . . . . . . . . . . . . . . . . . XVIII 1 62
Savings Clause . . . . . . . . . . . . . . XXIX 110
CONTRACT, of membership . . . . XXIV Sub.3-b 89
CONTRACTS WITH
EMPLOYERS . . . . . . . . . . . . . . . . XXIV Sub.11-a 104
CONVENTIONS:
Attendance oI General OIfcers. III 10 15
Committees . . . . . . . . . . . . . . . . . III 9 15
115
Composition of . . . . . . . . . . . . III 3 11
Credentials . . . . . . . . . . . . . . . . III 6 14
Delegates at large . . . . . . . . . . . III 10 15
Expense of Delegates . . . . . . . . III 7 14
Method of holding . . . . . . . . . . III 2 10
OIfcers oI . . . . . . . . . . . . . . . . III 4 12
Powers of General . . . . . . . . . . III 1 8
Quorum . . . . . . . . . . . . . . . . . . III 8 15
Representation at . . . . . . . . . . . III 5 12
State, Interstate and Provincial . . XXIII 4 & 6 74
Voting at . . . . . . . . . . . . . . . . . . III 5 12
CORRESPONDING-RECORDING
SECRETARY, LOCAL UNIONS:
(See Recording-Corresponding Secretary)
COURT ACTIONS
SUPERSEDED . . . . . . . . . . . . . . XVII 4 61
CRAFT JURISDICTION
DEFINED . . . . . . . . . . . . . . . . . . XIII 1 35
CREDENTIALS, GENERAL
CONVENTION . . . . . . . . . . . . . . III 6 14
DEATH BENEFIT FUND: . . . . . XX 65
Benefciaries . . . . . . . . . . . . . . XX 9 68
Claims . . . . . . . . . . . . . . . . . . . XX 10 69
Junior, Assistant, Registered &
Branch Engineers Participation XIV 5 40
Members on withdrawal . . . . . XV 4-d 55
Suits Barred . . . . . . . . . . . . . . . XX 12 70
DEFENSE FUND . . . . . . . . . . . . XIX 1,2,3 64
DELEGATE, AFL-CIO . . . . . . . . VIII 9 29
DELEGATES, GENERAL
CONVENTION:
Alternates . . . . . . . . . . . . . . . . . III 3 11
Credentials of . . . . . . . . . . . . . . III 6 14
116
Election of . . . . . . . . . . . . . . . . . III 3 11
Election under District form . . . XXVI 1-i 108
Expenses . . . . . . . . . . . . . . . . . . III 7 14
Protests and Appeals XXIV Sub 1-g 82
III 6 14
DISBURSEMENTS by General
Convention . . . . . . . . . . . . . . . III 1 8
DISCIPLINE AND EXPULSION:
General . . . . . . . . . . . . . . . . . . . XVI 1,2,3,4 57
Penalties for members in arrears
to Local Union . . . . . . . . . . . . XXIV Sub. 7-d 92
DISCLOSURE REQUIRED ON
APPLICATIONS . . . . . . . . . . . . . XXIV Sub. 7-d 93
DISSOLUTION . . . . . . . . . . . . . . . XXIV Sub. 13 106
DISTRICT ADMINISTRATION:
General . . . . . . . . . . . . . . . . . . . XXVI 1 107
Trials of members . . . . . . . . . . . XXVI 2 109
DISTRICT COUNCILS . . . . . . . . XXII 72
DUES:
Current due dates . . . . . . . . . . . . XXIV Sub. 7-b 91
Fixed by Local Union . . . . . . . . XXIV Sub. 7-a 91
Minimum required . . . . . . . . . . . X 2 31
Penalties for non-payment . . . . . XXIV Sub. 7-d 92
Prior payments of current dues
required XV 3-b 49
Relation to good standing . . . . . XXIV Sub. 7-c 92
DUTIES OF MEMBERS . . . . . . . XXIV Sub. 3 89
EMBLEM:
Description . . . . . . . . . . . . . . . . . II 1 7
Improper use of . . . . . . . . . . . . . II 3 8
Use of . . . . . . . . . . . . . . . . . . . . . II 2 8
117
ELECTION:
Of delegates to General
Convention ... III 3 11
Of delegates to General
Convention under District Form XXVI 1-i 108
OI General OIfcers . . . . . . . . . IV 3-7 16
OI Local Union OIfcers . . . . . XXIV Sub.1-e 80
OI Local Union OIfcers under
District Form . . . . . . . . . . . . . XXVI 1-h 108
EMERITUS XXIV Sub. 1-b 79
XXVIII 110
EMPLOYEES, International
Union Pensions . . . . . . . . . . . . . V 2 19
EMPLOYERS:
Contracts with . . . . . . . . . . . . . XXIV Sub.11-a 104
ENGINEERS LICENSE LAWS,
Endorsement . . . . . . . . . . . . . . . I 2 5
EXECUTIVE BOARDS,
Local Union:
Composition of . . . . . . . . . . . . XXIV Sub. 1-c 79
Powers . . . . . . . . . . . . . . . . . . . XXIV Sub. 1-d 80
Suspensions by . . . . . . . . . . . . . XXIV Sub. 1-d 80
Under District Form . . . . . . . . XXVI Sub. 1-c, d 107
EXPULSION AND DISCIPLINE:
By General President . . . . . . . . XVI 4 58
By Local Union . . . . . . . . . . . . XVI 4 58
Causes for . . . . . . . . . . . . . . . . XXIV Sub.7- d,e 92
General . . . . . . . . . . . . . . . . . . . XVI 1-7 57
3/4 Vote Required . XXIV Sub.7-o 99
FEES, TAXES,
ASSESSMENTS . .. XI 6 34
FEES, Withdrawal cards . . . . . . . XV 4-b 54
118
FINES:
Causes . . . . . . . . . . . . . . . . . . . . . XXIV Sub. 7-e 93
Collection for other Local Unions XXIV Sub. 7-g 95
For arrearages in dues . . . . . . . . XXIV Sub. 7-d 92
Paid before dues accepted . . . . XXIV Sub. 7-f 94
FINANCIAL SECRETARY:
Duties . . . . . . . . . . . . . . . . . . . . . XXIV Sub. 2-d 85
Receipts from committees . . . . . XXIV Sub. 5 90
FINDING OF FACT, by General
Executive Board . . . . . . . . . . . . . XVII 1-c 61
FINDING OF FACT, by General
President . . . . . . . . . . . . . . . . . . . VI 2 22
FORMS:
Charter . . . . . . . . . . . . . . . . . . . . XIV 9 44
Service dues receipt . . . . . . . . . . XV 3-f 51
FRAUDULENT
APPLICATIONS .. XXIV Sub. 7-d 92
Penalty . . . . . . . . . . . . . . . . . XVI 2 57
GENERAL BOARD OF
TRUSTEES:
Composition . . . . . . . . . . . . . . . IX 1 92
Powers and duties . . . . . . . . . . . . IX 4 30
Quorum and meetings . . . . . . . IX 3, 2 29
Terms and election . . . . . . . . . . . IV 1-3 15
GENERAL EXECUTIVE
BOARD:
Conducting Hearings . . . . . . . . . V 7 21
Fees, taxes, assessments . . . . . . . XI 6 34
Meetings . . . . . . . . . . . . . . . . . . V 4 20
Members . . . . . . . . . . . . . . . . . . . V 1 19
Powers of . . . . . . . . . . . . . . . . . . V 2 19
Power to alter Death Beneft . . . XX 14 71
Quorum . . . . . . . . . . . . . . . . . . . . V 5 20
To initiate trials . . . . . . . . . . . . . XVI 3 57
119
Transacting Business . . . . . . . . V 6 20
Vacancy on . . . . . . . . . . . . . . . . V 3 20
GENERAL OFFICE
MEMBERSHIP DEFINED . . . . . XV 5 56
GENERAL OFFICERS:
Bonding of . . . . . . . . . . . . . . . . IV 8 18
Compensation IV 9 18
Defned . . . . . . . . . . . . . . . . . . . IV 1 15
Honorary Positions . . . . . . . . . XXVIII 110
How elected . . . . . . . . . . . . . . . IV 3-7 16
How recalled . . . . . . . . . . . . . . XVIII 2 62
Installation of . . . . . . . . . . . . . . IV 6 17
Nomination of . . . . . . . . . . . . . IV 2 16
Protest to Election of ... IV 8 18
Vacancy in oIfce . . . . . . . . . . . V 3 20
GENERAL PRESIDENT:
Acts of, Reviewable . . . . . . . . . VI 9 26
Appoints Committees . . . . . . . III 9 15
Approves Local Union Bylaws . . XXIV Sub.12 105
Chairman of General Executive
Board . . . . . . . . . . . . . . . . . . . VI 5 24
Charges and Trials . . . . . . . . . . VI 6 25
Compensation.. VI 7 25
Granting, Suspending and
Revoking charters . . . . . . . . . VI 3,4 22
International Supervision . . . . . VI 3 22
Powers and duties . . . . . . . . . . VI 1, 2 22
Term and election of . . . . . . . . IV 1, 3 15
GENERAL SECRETARY-
TREASURER:
Compensation . . . . . . .. . . . . . . VIII 5 27
General OIfce Membership . . XV 5 56
Powers and duties . . . . . . . . . . VIII 1-9 26
Term and election . . . . . . . . . . . IV 1-3 15
120
GOOD STANDING DEFINED:
As to dues . . . . . . . . . . . . . . . . . . XXIV Sub.7-c 92
Business Agents . . . . . . . . . . . . . XVI 6 58
Candidates . . . . . . . . . . . . . . . . . XXIV Sub.1-b 77
Local OIfcers . . . . . . . . . . . . . . . XVI 6 58
XXIV Sub.1-b 77
GOVERNMENT OF BRANCH
LOCALS . . . . . . . . . . . . . . . . . . . XIV 5 40
GOVERNMENT OF
INTERNATIONAL . . . . . . . . . . . I 3 6
GUARD, Local Unions . . . . . . . . . XXIV Sub.2-g 86
HOISTING AND PORTABLE:
Engineers Jurisdiction . . . . . . . . XIII 1-b 36
Confict oI Jurisdiction . . . . . . . . XIII 3 38
HONORARY POSITIONS . XXIV Sub.1-b 79
XXVIII 110
INCAPACITY OF LOCAL
UNION OFFICERS . . . . . . . . . . . XXIV Sub.2-k 88
INCOME OF INTERNATIONAL
UNION:
Charter fees & assessments . . . . XI 3 33
Initiation fee & tax . . . . . . . . . . . XI 4 33
Other fees, taxes & assessments XI 6 34
Per capita tax . . . . . . . . . . . . . . . XI 1 31
Reinstatement assessments . . . . XI 5 34
INITIATION FEES:
Minimum fxed . . . . . . . . . . . . . . X 2 31
New Local Unions . . . . . . . . . . . XI 3 33
New Members . . . . . . . . . . . . . . XI 4 33
INITIATION TAX WAIVED . . . . XV 2-d 46
INITIATIVE AND RECALL . . . . XVIII 2 62
121
INSTALLATION OF
GENERAL OFFICERS . . . . . . . . IV 6 17
INSTALLATION OF LOCAL
UNION OFFICERS . . . . . . . . . . . XXIV Sub.1-e 80
INTERPRETATION OF
CONSTITUTION:
By General Executive Board . . XVII 1-c 61
V 7 21
INTERNATIONAL SUPERVISION:
Appeals regarding . . . . . . . . . . XVII 1-a 59
Defned . . . . . . . . . . . . . . . . . . VI 3 22
XXIV Sub.7-d 92
Exercised by General President VI 3 22
How Local Union affairs
administered . VI 3 22
Power of Local Union superseded
by . . . . . . . . . . . . .. VI 3 22
Referendums on . . . . . . . . . . . . XVII 1-a 59
Requests to invoke, etc . . . . . . XVII 1-a 59
Reversion of property XIV 8-b 43
Trials under . . . . . . . . . . . . . . . XXIV Sub.7-q 100
INTERSTATE, STATE &
PROVINCIAL ORGANIZATIONS XXIII 1-8 73
JOURNAL:
Proceedings of General
Convention . . VIII 6 28
Publication of . . . . . . . . . . . . . . VIII 6 28
Publishing articles . . . . . . . . . . VIII 6 28
Publishing votes on referendum XVIII 3 63
JUNIOR & ASSISTANT
ENGINEERS:
Application of sub-charters . . . XIV 4 40
Clearance Cards . . . . . . . . . . . . XV 6 56
122
Defned . . . . . . . . . . . . . . . . . . . . XIV 6-a 42
Form of charter . . . . . . . . . . . . . . XIV 9 44
JUNIOR & ASSISTANT
ENGINEERS, REGISTERED
APPRENTICE ENGINEERS &
BRANCH ENGINEERS
PARTICIPATION . . . . . . . . XIV 5 40
JURISDICTION:
Confict oI . . . . . . . . . . . . . . . . . . XIII 2 & 3 38
Described on charter . . . . . . . . . XIV 9 44
Hoisting & portable craft . . . . . . XIII 1-b 36
Stationary craft . . . . . . . . . . . . . . XIII 1-a 35
Territorial . . . . . . . . . . . . . . . . . . XII 1 34
LAPSED LOCAL UNIONS:
Disposition of membership . . . . XV 5 56
Disposition of property . . . . . . . . XIV 8-a-d 43
LAW SUITS SUPERSEDED . . . . XVII 4 61
LITIGATION, defense of . . . . . . . V 8 21
XXIV Sub.1-d 80
LOCAL UNIONS:
Application for charters . . . . . . . XIV 2 39
Arrears, penalties . . . . . . . . . . . . XXIV Sub.7-d 92
Auditors . . . . . . . . . . . . . . . . . . . XXIV Sub.2-i 87
Bonding . . . . . . . . . . . . . . . . . . . XXIV Sub.2-j 88
Business Agents &
Representatives ... XXIV Sub.1-a 75
Business Manager . . . . . . . . . . . XXIV Sub.1-a 75
Bylaws & trade rules . . . . . . . . . XXIV Sub.12 105
Charges by members . . . . . . . . . XXIV Sub.7-m 97
Clearance Cards . . . . . . . . . . . . . XV 2-a-e 45
Committees . . . . . . . . . . . . . . . . . XXIV Sub.5 90
Conductor . . . . . . . . . . . . . . . . . . XXIV Sub.2-f 86
123
Constitutes separate entity . . . . I 3 6
Dispensing with monthly
meetings . . ... XXIV Sub. 10-a 103
Dissolution . . . . . . . . . . . . . . . . XXIV Sub. 13 106
District Administration Form. . XXVI 1 107
Dues, how fxed . . . . . . . . . . . . XXIV Sub. 7-a 91
Duties of members . . . . . . . . . . XXIV Sub. 3 89
Election oI oIfcers . . . . . . . . . . XXIV Sub. 1-e 80
Executive Board . . . . . . . . . . . . XXIV Sub 1-c-d 79
Financial Secretary . . . . . . . . . . XXIV Sub. 2-d 85
Fines, payment of . . . . . . . . . . . XXIV Sub. 7-f 94
Good standing . . . . . . . . . . . . . XXIV Sub. 7-c 92
Guard . . . . . . . . . . . . . . . . . . . . XXIV Sub. 2-g 86
Incapacity oI oIfcers . . . . . . . . XXIV Sub. 2-k 88
Local oIfce . . . . . . . . . . . . . . . XXIV Sub. 4 90
Meetings . . . . . . . . . . . . . . . . . . XXIV Sub. 10 103
OIfcers . . . . . . . . . . . . . . . . . . . XXIV Sub. 1-a 75
Parliamentary law . . . . . . . . . . XXIV Sub. 14 106
President . . . . . . . . . . . . . . . . . . XXIV Sub. 2-a 83
Qualifcation oI oIfcers . . . . . . XXIV Sub. 1-b 77
Quorum . . . . . . . . . . . . . . . . . . XXIV Sub. 9 103
Recall oI oIfcers . . . . . . . . . . . XXIV Sub. 8 102
Recording-Corresponding
Secretary . . . XXIV Sub. 2-c 84
Relations with employers . . . . XXIV Sub. 11 104
Rules of government . . . . . . . . XXIV Sub. 1-14 75
Suspensions . . . . . . . . . . . . . . . XXIV Sub. 7-e 93
Terms oI oIfce . . . . . . . . . . . . . XXIV Sub. 1-b 77
Transfer card . . . . . . . . . . . . . . XV 1 45
Travel service dues . . . . . . . . . XV 3-a 47
Treasurer . . . . . . . . . . . . . . . . . XXIV Sub. 2-e 85
Trials . . . . . . . . . . . . . . . . . . . . XXIV Sub. 7-l-s 97
Trials in districts . . . . . . . . . . . XXIV 2 109
Trustees . . . . . . . . . . . . . . . . . . XXIV Sub. 2-h 87
Under International Supervision VI 3 22
Vacancy & removal oI oIfcers XXIV Sub 1-I 82
Vice President . . . . . . . . . . . . . XXIV Sub. 2-b 84
124
LOCKOUTS:
Defense Fund . . . . . . . . . . . . . . . XIX 1-3 64
MEETINGS:
General Executive Board . . . . . . V 4 20
Local Unions . . . . . . . . . . . . . . . XXIV Sub. 10 103
Under District Form . . . . . . . . . . XXVI 1 108
MEMBERSHIP:
Application for . . . . . . . . . . . . . . XXIV Sub. 6 90
Confned to one Local Union . . . XVI 2 57
Discipline & expulsion . . . . . . . . XVI 1-5 57
Duties of . . . . . . . . . . . . . . . . . . . XXIV Sub. 3 89
In lapsed Locals . . . . . . . . . . . . . XV 5 56
Initiation fees . . . . . . . . . . . . . . . X 2 31
Qualifcations Ior . . . . . . . . . . . . X 1 30
Reinstatement of . . . . . . . . . . . . . XXIV Sub. 7-h-i 95
Voting upon . . . . . . . . . . . . . . . . XXIV Sub. 6 90
NAME OF INTERNATIONAL
UNION . . . . . . . . . . . . . . . . . . . . . I 1 5
NOMINATIONS:
General oIfcers . . . . . . . . . . . . . IV 2 16
Local Unions . . . . . . . . . . . . . . . XXIV Sub. 1-e 80
Under District Form . . . . . . . . . . XXVI 1-h-i 108
OBJECTS OF INTERNATIONAL
UNION . . . . . . . . . . . . . . . . . . . . . I 2 5
OFFICERS:
Failure to discharge duties . . . . . XXIV Sub. 1-f 82
International Union . . . . . . . . . . IV 1 15
Local Unions . . . . . . . . . XXIV Sub. 1-a-b 75
Qualifcations, good standing . . . XVI 6 58
State, Interstate & Provincial
Organizations . . . . . . . . . . . . . . XXIII 2 73
ORDER OF BUSINESS . . . . . . . . Preface 4
125
PENALTIES:
Altering dues book and/or card. . XX 12 70
Defamatory literature . . . . . . . . XVI 1 57
False application . . . . . . . . . . . XVI 2 57
Nonpayment of dues ... XXIV Sub.7-d 92
Radicalism, etc . . . .. XVI 4 58
PENDENCY OF APPEALS . . . . XVII 3 61
PENSION FUND PLANS:
General Pension Fund Plan . . . XXVII 110
International, provisions for
(Constitutional Authorization) V 2 19
Pension Reciprocity . . . . . . . . . XXIV Sub.11-c 105
PER CAPITA TAX:
Distribution of . . . . . . . . . . . . . XI 2 33
Electronic reporting XI 1 32
Interest XI 1 32
Local Unions charged with . . . XXIV Sub.7-j 96
Local Unions not charged, when XXIV Sub.7-k 97
Report and payment . . . . . . . . . XI 1 31
PRESIDENT, Local Union . . . . . XXIV Sub.2-a 83
PRIOR PAYMENTS OF
CURRENT DUES REQUIRED . . XV 3-b 49
PROPERTY OF LOCAL
UNIONS . . . . . . . . . . . . . . . . . . . XIV 8 43
PROTEST & APPEALS
REGARDING NOMINATION &
ELECTION TO LOCAL
UNION OFFICE . . . . . . . . . . . . . XXIV Sub.1-g 82
PROVINCIAL, STATE AND
INTERSTATE
ORGANIZATIONS . . XXIII 1-8 73
PURPOSES OF
INTERNATIONAL I 2 5
126
UNION QUALIFICATIONS:
Charter . . . . . . . . . . . . . . . . . . . . XIV 2,3 39
Membership . . . . . . . . . . . . . . . . X 1 30
QUORUM:
Board of Trustees . . . . . . . . . . . . IX 3 30
General Executive Board . . . . . . V 5 20
Joint Executive Board . . . . . . . . XXI 3 72
Local Unions . . . . . . . . . . . . . . . XXIV Sub.9 103
RADICALISM, penalty for . . . . . . XVI 4 58
RECALL:
General OIfcers . . . . . . . . . . . . . XVIII 2 62
Local Union OIfcers . . . . . . . . . XXIV Sub.8 102
RECORDING-
CORRESPONDING SECRETARY
Duties . . . . . . . . . . . . . . . . . . . . . XXIV Sub.2-c 84
Member of Local Union
Executive Board . . . . . . . . . . . XXIV Sub.1-c 79
Vacancy in oIfce and removal
oI oIfcers . . . . . . . . . XXIV Sub.1-I 82
REGISTERED APPRENTICE
ENGINEERS:
Application for sub-charters . . . . XIV 4 40
Cancellation of membership . . . XIV 6-b 42
Defned . . . . . . . . . . . . . . . . . . . . XIV 6-b 42
Form of charter . . . . . . . . . . . . . . XIV 9 44
Transfer to parent body . . . . . . . XIV 6-b 42
REGISTRATION FEES . . . . . . . . XV 3-h 53
REINSTATEMENT:
Expelled Members . . . . . . . . . . . XXIV Sub.7-i 96
Fees . . . . . . . . . . . . . . . . . . . . . . . XI 5 34
Suspended Members . . . . . . . . . XXIV Sub.7-h 95
127
REMOVAL OF LOCAL UNION
OFFICERS: . . . . . . . . . . . . . . . . . XXIV Sub.1-f 82
Under International
Supervision... VI 3 22
RITUAL, part of Constitution . . . I 4 7
RULES OF ORDER, Local
Unions . . . . . . . . . . . . . . . . . . . XXIV Sub.14 106
SAVINGS CLAUSE . . . . . . . . . . XXIX 110
SEAL:
Description of . . . . . . . . . . . . . II 1 7
Property of International Union II 3 8
Unlawful use of . . . . . . . . . . . . II 3 8
Use of. . . . . . . . . . . . . . . . . . . . II 2 8
SERVICE DUES:
Amount of Applicant . . . . . . . . XV 3-d 50
Amount of Travel . . . . . . . . . . . XV 3-e 51
Applicants . . . . . . . . . . . . . . . . XV 3-c 50
Books, Printing and distributing . . XV 3-g 53
Data Processing . . . . . . . . . . . . XV 3-i 53
Form of receipt . . . . . . . . . . . . . XV 3-f 51
Travel . . . . . . . . . . . . . . . . . . . . XV 3-a 47
SERVICE OF SUMMONS OR
SUBPOENA . . . . . . . . . . . . . . . . I 3 6
STATE, INTERSTATE AND
PROVINCIAL ORGANIZATIONS:
Bonding . . . . . . . . . . . . . . . . . . XXIII 8 75
Executive Board . . . . . . . . . . . XXIII 3 74
Formation . . . . . . . . . . . . . . . . XXIII 1 73
Meetings . . . . . . . . . . . . . . . . . XXIII 6 74
Minutes . . . . . . . . . . . . . . . . . . XXIII 7 75
OIfcers oI . . . . . . . . . . . . . . . . XXIII 2 73
Powers . . . . . . . . . . . . . . . . . . . XXIII 5 74
Voting at . . . . . . . . . . . . . . . . . . XXIII 4 74
128
STATIONARY ENGINEERS
JURISDICTION: . . . . . . . . . . . . . . XIII 1-a 35
Confict oI Jurisdiction . . . . . . . . XIII 3 38
STRIKES:
Defense Fund . . . . . . . . . . . . . . . XIX 1-3 64
STRIKE BENEFITS.. XIX 2-3 64
SUBVERSIVENESS:
Opposition . . . . . . . . . . . . . . . . . I 2 5
Penalty . . . . . . . . . . . . . . . . . . . . XVI 4 58
SUITS AT LAW
SUPERSEDED . . . XVII 4 61
SUPERVISION OF
LOCAL UNIONS .
(See International Supervision) . VI 3 22
SUSPENDED LOCAL UNIONS:
Disposition of Membership . . . . XIV 8 43
Disposition of Property . . . . . . . XIV 8 43
SUSPENSION OF CHARTERS:
Death Benefts Protected . . . . . . XX 8 68
Membership Protected . . . . . . . . XV 5 56
Property of Local . . . . . . . . . . . . XIV 8-a 43
SUSPENSION OF MEMBERS . . XXIV Sub.7-d,e,f 92
TAXES, FEES AND
ASSESSMENTS ... XI 6 34
TERMS OF OFFICE:
General OIfcers . . . . . . . . . . . . . IV 1 15
Local Union OIfcers . . . . . . . . . XXIV Sub.1-b 77
OIfcers ........... XXIII 2 73
TRADE RULES . . . . . . . . . . . . . . . XXIV Sub.12 105
129
TRAINING, Local:
Manager and Representatives XXIV Sub.15 106
TRANSFER CARDS . . . . . . . . . XV 1 45
TRANSFERS . . . . . . . . . . . . . . . . XV 2-d 46
TRAVEL SERVICE DUES . . . . . XV 3-a 47
Amount of . . . . . . . . . . . . . . . . XV 3-e 51
TREASURER, Local Unions . . . XXIV Sub.2-e 85
TRIALS:
Appeals from . . . . . . . . . . . . . . XVII 1-4 59
By General Convention . . . . . . III 1 8
By General Executive Board . . V 7 21
Procedure of Local Union . . . . XXIV Sub.7-l-s 97
Under District Form . . . . . . . . . XXVI 2 109
Under International Supervision . . XXIV Sub. 7-q 100
TRUSTEES:
Board of . . . . . . . . . . . . . . . . . . IX 1-4 29
Local Unions . . . . . . . . . . . . . . XXIV Sub.2-h 87
VACANCY IN OFFICE:
General OIfcers . . . . . . . . . . . . V 3 20
Local Unions . . . . . . . . . . . . . . XXIV Sub.1-f 82
VICE PRESIDENTS:
General, election, etc. . . . . . . . IV 2-7 16
General, duties . . . . . . . . . . . . . VII 1 26
Local Unions . . . . . . . . . . . . . . XXIV Sub.2-b 84
VOTING:
Convention . . . . . . . . . . . . . . . . III 5 12
Elections, General OIfcers . . . IV 3-7 16
Elections, Local Union OIfcers . . XXIV Sub.1-e 80
Junior, Apprentice and Branch
Engineers . . .. XIV 5 40
Organizations ... XXIII 4 73
130
WELFARE PLANS
ADMINISTRATION,
violations of . . . . . . . . . . . . . . . XVI 7 58
WITHDRAWAL CARDS . . . . . . . XV 4 54
131
NOTES
132
EXHI BI T 23

From: "Blas, Michael - OIG"
Subject: Re: LM2
Date: March 31, 2010 3:45:19 PM PDT
To:

Mr. Pette:

Did you or Mr. McLaughlin have electronic signatures while working at Local 501? If so, who had access to the electronic
signatures?

Mike

----- Original Message -----
From: Finn Pette
To: Blas, Michael - OIG
Sent: Wed Mar 31 16:48:30 2010
Subject: LM2

Mr. Blas,
The Local 501 LM 2 reports have just been posted for 2009. My
signature, as well as Jim McLaughlins signature appear on them. I DID
NOT sign these, nor did I approve of my signature on them. I just
phoned Mr. McLaughlin and he said that he DID NOT sign, nor approve
them either.

Can you advise me as what steps I need to take to remedy this?

Thank you,
Finn J. Pette

Sent from my iPhone

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Subject: Re: Local 501/Giblin/Lundy
Date: March 10, 2010 11:42:51 PM PST
To:

Mr. Pette,

Thank you for the update. Please have Bob Fox call me at if he would like to provide any information
regarding his conversation with Vincent Giblin.

Mike

----- Original Message -----
From: Finn Pette
Sent: Wed Mar 10 20:57:53 2010
Subject: Local 501/Giblin/Lundy

Mr. Blas,

Vincent Giblin, General President is still pursuing internal Union charges against Jim McLaughlin, Dan Himmelberg, and I.
Today Bob Fox received a phone call from President Giblin which upset him so bad that he will only meet with me in a
public place. Apparently Giblin threatened him and made comments that he would "bury" me.

Wonder what the status of your investigation is?

I sure hope I'm still around to see it.

Finn Pette

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Subject: RE: Evidence
Date: August 18, 2010 10:06:57 AM PDT
To: Finn Pette

Mr. Pette:
Do you currently hold any officer position at IUOE Local 501?
Thanks,
Mike

From: Finn Pette
Sent: Sunday, August 15, 2010 10:40 AM
Subject: Fwd: Evidence

Mr. Blas,
I sent the attached e-mail to you on July 15th and received a response that you would be "Out of The Office". I am sending
it agains as a formal request to have the checks I submitted to you returned to me.
Please let me know if there are any other channels for this request. I have spoken to several DOL agents who stated that
unless the DOL was pursuing an investigation, I had a right to receive any evidence I had submitted returned to me.
Thank you,
Finn J. Pette

Begin forwarded message:

From: Finn Pette
Date: July 15, 2010 8:43:40 AM PDT
To: Michael Blas
Bcc: Finn Pette , Daniel Himmelberg
Subject: Evidence

Dear Mr. Blas,
I have received a letter from DOL OIG in Washington D.C. Stating that OIG is not pursuing any investigation in Local 501.
As you may remember I volunteered some checks which you took into evidence. My question is how do I go about getting
those documents back?

Your assistance would be greatly appreciated.
Respectfully,
Finn J. Pette
Financial Secretary
IUOE Local 501

Sent from my iPhone
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Subject: RE: Giblin again
Date: May 12, 2010 5:05:09 PM PDT
To: Finn Pette

Thank you, I will forward this to the office that handles Arizona.

-----Original Message-----
From: Finn Pette
Sent: Wednesday, May 12, 2010 4:55 PM
Subject: Giblin again

Mr. Blas,

I have given your number to Mr. Gary Teel Business Manager of Local 428
Phoenix Arizona. He has been given 24 hours to resign of Giblin will
"take over his Local". Sound familiar?
Hope you can reach him. His number is:

Please save this guy!

Finn Pette
Financial Secretary
IUOE Local 501

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EXHI BI T 24

U.S. Department Of Labor Office of Inspector General
Washington, D.C. 20210
June 14, 2010
Finn J. Pette
831 N. Buena Vista Street
Burbank, CA 91505
Dear Mr. Pette:
The Complaint Analysis Office (CAO) of the Office of the Inspector General (OIG)
received your e-mail complaint to the U.S. Department of Labor (DOL). Specifically,
your complaint alleges embezzlement and the misuse of Taft-Hartley Trust funds by the
Apprenticeship Coordinator. You alleged that the General President of the Union has
used tactics and threats.to force_the Business Manager to retire and also have you
terminated. In addition, you reported that there is now evidence of election tampering
within Local Union 501.
The DOL Office of the Inspector General primarily investigates allegations of fraud,
waste, or abuse in DOL programs and operations. These investigations may involve
alleged violations of criminal statutes, alleged violations of civil or administrative statutes
or regulations, allegations of serious and systemic waste or abuse in DOL programs.
I note that you had contact with Special Agent Michael Bias of the Office of Labor
Racketeering'and Fraud Investigations (OLRFI) located in California. I have requested a
review of your concerns by the OLRFI and that office has declined to pursue your
complaint further at this time. However, if you have additional information concerning
this matter that you would like to be reviewed by the OLRFI, please provide that
information to: Special Agent Michael Bias, U.S. Department of Labor, Office of the
Inspector General, OLRFI, 100 North Barranca Street, Suite 520, West Covina, CA
91791.
Based on this information, the Office of the Inspector General for the U.S. Department of
Labor does not plan on taking any further action in response to your complaint at this
"rirne. ~~
Sincerely,
Gwen M. Stroud
Complaint Analysis Officer
Working for America's Workforce
EXHI BI T 25

LOCAL 501 BOMA TEST ANSWERS: BOMA TEST QUESTION http://boma501.blogspot.com/2012/03/boma-test-question.html
1 of 8 3/25/2013 3:30 PM
Replies
92) K type copper is what color
Answer: Green
93) A sink , A toilet and a bathtub are all called
Answer: A Fixture
Reply
Rick April 10, 2012 at 4:45 PM
75) What is the most critical factor regarding suction lift of a water pump:
Answer: Distance
76) Best method to measure a full length of pipe is:
Answer: end to end
77) Slight leakage of a centrifugal pump packing would not cause Answer: pump failure
78) In order to keep a centrifugal pump primed
Answer: a Foot valve is installed on the Suction line
79) Size of the impeller determines
Answer: the speed of the pump
80) A mushroomed chisel in your tool box should be
Answer: Disposed of and replaced
81) Packing material for a motor should be made from
Answer: Softer metals Like Copper and Lead
82) On A Site Plan 1is equal to 10 what size would a 40 X 80 room Be
Answer: 4X8
83) Welding Galvanized metals must be performed in a
Answer: well ventilated space
84) The cheapest and most simplest of all pumps would be the
Answer: J et Pump
85) Location of the pump has nothing to do with the type of
Answer: Packing you should use
Reply
60) Screen or shield should be used in welding operation to:
Answer: to protect nearby workers.
61) The diameter of the arc should be kept approximately:
Answer: same diameter as the electrodes.
62) Primary used for basin wrench is:
Answer: removal of nuts and small piping pieces from the under side of the sink.
63) A drainage fixture unit is equivalent to how many gallons of water flow?
Answer: 7.5 gallons per minute (GPM).
64) Removal of solid metals and sand is accomplished with :
Answer: sediment interceptor.
65) Consumable metallic electrodes used in AC arc welding are usually:
Answer: heavily coated
66) Gasket material most recommended for water flow:
Answer: sheet rubber or cloth inserted rubber
2 of 8 3/25/2013 3:30 PM
67) Class A fire is:
Answer: A fire with ordinary combustible material (wood, paper, or cloth).
68) Disadvantage of centrifugal pump is:
Answer: the head pressure is limited.
69) Power tools are not to be used with:
Answer: frayed or damage water cord.
70) The type of valve goes to full open to full close on a quarter turn is:
Answer: a plug valve.
71) Best method of measuring a piece of pipe with a fitting screwed into one end:
Answer: end to center.
72) ___________ type of sprinkler head in an inverted position.
Answer: pendent.
73) Fire suppression system required:
Answer: Fire spandrels
74) Normal feed of lift on a suction side of a pump:
Answer: 10
75) What is the most critical factor regarding suction lift of a water pump:
Answer: Distance
55) The most convenient way to show the dimension of the hole on a drawing is:
Answer: Draw an extension line on each side of the hole and fill in the dimension.
56) Three types of traps are:
Answer: P, T, and S traps
57) What can occur if the trap has an excessive pitch?
Answer: Self syphoning could occur
58) If a drawing is drawn quarter scale, then the scale of the drawing is:
Answer: Quarter inch equals one foot.
59) Before welding a second bead, the weld areas must be:
Answer: cleaned to remove all slag.
60) Screen or shield should be used in welding operation to:
Answer: to protect nearby workers.
61) The diameter of the arc should be kept approximately:
Answer: same diameter as the electrodes.
62) Primary used for basin wrench is:
Answer: removal of nuts and small piping pieces from the under side of the sink.
63) A drainage fixture unit is equivalent to how many gallons of water flow?
Answer: 7.5 gallons per minute (GPM).
64) Removal of solid metals and sand is accomplished with :
Answer: sediment interceptor.
65) Consumable metallic electrodes used in AC arc welding are usually:
Answer: heavily coated
66) Gasket material most recommended for water flow:
Answer: sheet rubber or cloth inserted rubber
67) Class A fire is:
Answer: A fire with ordinary combustible material (wood, paper, or cloth).
68) Disadvantage of centrifugal pump is:
Answer: the head pressure is limited.
3 of 8 3/25/2013 3:30 PM
Reply
69) Power tools are not to be used with:
Answer: frayed or damage water cord.
70) The type of valve goes to full open to full close on a quarter turn is:
Answer: a plug valve.
71) Best method of measuring a piece of pipe with a fitting screwed into one end:
Answer: end to center.
72) ___________ type of sprinkler head in an inverted position.
Answer: pendent.
73) Fire suppression system required:
Answer: Fire spandrels
74) Normal feed of lift on a suction side of a pump:
Answer: 10
40) Standard Slop/pitch of a horizontal drain line should be
Answer: per foot
41) Sprinkler system where the sprinklers are always open is
Answer: A Deluge system
42) Welding gloves should have
Answer: Long cuffs
43) The long round pin on a three prong plug is what
Answer: The Ground wire and should never be removed
44) Type of wrench used on large diameter threaded pipe
Answer: Chain wrench
45) Most common type of water circulation pump is a
Answer: Centrifugal pump
46) Tubing and pipe are measured
Answer: Differently OD / ID
47) Strength of a trap seal can be increased by
Answer: Anti- syphon valve
48) Low speed Plain J ournal bearing should be lubricated with a
Answer: Low viscosity oil
49) Correct sequence of soldering procedures are
Answer: Reaming, Cleaning, Assembling, Fluxing and Soldering
50) The Blue print states that an 1/8equals 1 foot then 2 1/2 on a ruler would be
Answer: 20 feet
51) The Seal inside a centrifugal pump is to prevent
Answer: Air from seeping into the pump housing and to prevent water from leaking out
4 of 8 3/25/2013 3:30 PM
52) A main branch steam line take off of the main should be located:
Answer: Top of the main
53) Safety shield and goggles are not required if you wear glasses:
Answer: False
54) A standard length of threaded pipe is:
Answer: 21 Feet
58) If a drawing is drawn quarter scale, then the scale of the drawing is:
Answer: Quarter inch equals one foot.
Reply
21) Efficiency of a grease trap is determined by the Elevation between the ______ and the
_____ in relation to the static water line.
Answer: Inlet /Outlet
22) Best way to prevent back siphoning is with an
Answer: Air Gap
23) Should safety Glasses be worn when using a hacksaw
Answer: Yes
24) How many Gallons of water fit into one Cubic foot
Answer: 7.48 gl.
25) Type of weld used to Fill a corner or a Tee joining is referred to as a
Answer: Fillet Weld
26) Grease Classification are set by the
Answer: N.L.G.I (National Lubrication Grease Institute}
27) Continuous Belt turnover is caused by
Answer: Improper installation technique
28) How can you determine the scale of a Blue Print Drawing
Answer: Checking the Specification Sheet
29) Type of plumbing fitting that can directly or indirectly contaminate the potable water
Answer: Cross Connection
30) Traps provide protection from what from entering the house
Answer: Sewer gas odor and vermin
31) The main purpose of lubrication is
Answer: To reduce friction and wear
32) P-trap installation the vertical distance from the fixture may not exceed
Answer: 24from the bottom of the trap outlet
33) Gate Valves are always used to throttle fluid flow
Answer: False
5 of 8 3/25/2013 3:30 PM
34) Purging the hoses of an Oxy. /Acet. Torch set should always be done
Answer: When securing the torches for the day
35) An Oxy / Acet. torch set are mainly used for
Answer: Brazing, Cutting and Silver Soldering brass or copper
36) Globe Valves and _____ are similar in design
Answer: Needle Valves
37) A freshly packed pump is leaking what is the correct thing to do.
Answer: Allow the pump to run for a short period of time to see if the packing seals itself
38) The volume of the waste entering grease trap is determined by the
Answer: Size of the fixture feeding the grease trap
39) Over tightening of belts will cause
Answer: Premature bearing and belt failure
40) Standard Slop/pitch of a horizontal drain line should be
Answer: per foot
Reply
1) When starting a centrifugal pumps that is part of a manifold without a check valve you must
Answer: Open the suction Valve then start the pump while slowly opening the discharge
valve.
2) The Valve Inserted between the corporation valve and the Water Meter
Answer: Curb Cock
3) To check sheave wear you can
Answer: Inspect the Groove wear on the Sheave and inspect the belt for excessive wear and
movement.
4) Adjustable/variable sheaves can be used to make what type of change to the blower RPM
Answer: Small Changes
5) Absolute Pressure (PSIA) is equal to Gage Pressure (PSIAG)
Answer: Plus 14.7psi
6) Three main types of Fire Suspension system are
Answer: Wet Type Dry Type and Deluge type
7) Power is Equal to
Answer: Torque X Weight X Distance
8) Torches should always be leak checked around the
Answer: Tip. Valve connections and the hose connection
9) The three types of smoke detection are
Answer: Photo- electric Scanners. Ionization chambers and Smoke Reflection Devices
10) If a coupling isnt correctly aligned what could happen
Answer: More frequent failure of the coupling and bearings
11) ________ Are used to protect the pump and Motor for slight misalignment
Answer: Flexible Coupling
12) The Coating on a metal welding electrode does what
Answer: Stabilizes the flam and reduces Oxygenation
13) When Severing a length of 2pipe a __________ should be used
Answer: Pipe Cutter
14) The main purpose of a Fire, Life and Safety Power system is to
Answer: Run only essential equipment to help maintain human safety
15) Baffles in a Grease trap interceptor help reduce the ______ inside the grease trap.
Answer: Grease Flow
6 of 8 3/25/2013 3:30 PM
16) What is Parallel Alignment
Answer: When the center lines of two shafts are parallel
17) A motor running hot will only run hotter if the load is
Answer: Increased
18) Which Building Alarm will trigger the fire pumps
Answer: Water Flow
19) Water fit for Human use and consumption is called
Answer: Potable
20) The Valve with the least amount of pressure drop is a
Answer: Gate Valve
21) Efficiency of a grease trap is determined by the Elevation between the ______ and the
_____ in relation to the static water line.
Answer: Inlet /Outlet
22) Best way to prevent back siphoning is with an
Answer: Air Gap
23) Should safety Glasses be worn when using a hacksaw
Answer: Yes
24) How many Gallons of water fit into one Cubic foot
Answer: 7.48 gl.
25) Type of weld used to Fill a corner or a Tee joining is referred to as a
Answer: Fillet Weld
26) Grease Classification are set by the
Answer: N.L.G.I (National Lubrication Grease Institute}
27) Continuous Belt turnover is caused by
Answer: Improper installation technique
28) How can you determine the scale of a Blue Print Drawing
Answer: Checking the Specification Sheet
29) Type of plumbing fitting that can directly or indirectly contaminate the potable water
Answer: Cross Connection
30) Traps provide protection from what from entering the house
Answer: Sewer gas odor and vermin
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LOCAL 501 BOMA TEST ANSWERS http://boma501.blogspot.com/
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EXHI BI T 26

EXHI BI T 27

1

From: finnpette
Subject: Local 501 Election Issues.
Date: J anuary 16, 2013 5:37:22 PM PST
To: , Ed Oquendo

Dear Mr. Olowolafe (?)

I am cc-ing Mr. Ed Oquendo on this e-mail, as he was kind enough to share your e-mail, and as
you are aware he was the initial contact for me at the DOL. He has done a stellar job of the
investigation, and I look forward to working with you.

Unfortunately, I need DOL assistance immediately with yet another election violation that Local
501 is creating. I have filed complaints with the Executive Board of Local 501 and the General
Executive Board at the International Union (letters attached), however, without DOL
intervention immediately the complaint process will take so long as to render the issue a moot
point.

Please allow me to explain by way of a declaration:

Declaration
2
On Tuesday, J anuary 15, 2013 IUOE Local 501 held the District 1 meeting at 2405 W. 3
rd

Street, Los Angeles CA 90057. Over 20 members were in attendance. At the beginning of the
meeting President Ken Capehart advised the members that there would be No Special Order of
Business. At that time, Member Patrick Adams raised his hand and asked if the nominations for
the General Convention Election were supposed to take place that evening per a motion made at
the December 2012 Semi-Annual General Membership Meeting. President Capehart informed
the membership that the motion was ruled out of order by the Executive Board, and further
stated that the Executive Board had voted to cancel the election due to budgetary concerns.

At that time I raised my hand and informed President Capehart that he could not cancel the
election, that it was a protected act under the National Labor Relations Act. He said that he could
and it was in the By-Laws and Constitution. I had in my hand the Department of Labors
Election of Officers of Labor Organizations booklet 29 CFR Chapter IV, Subchapter A, Part
452 and proceeded to read Section 452.22 Delegates To A Convention: Under certain
circumstances, delegates to a convention of a national or international labor organization, or
an intermediate body, must be elected by secret ballot among the members in good standing of
the labor organization they represent even though the delegates are not officers of the
organization. Such election is required by the Act. Again, President Capehart said, I
disagree.

A heated discussion then occurred and again I read from the book, Subpart G Campaign
Safeguards, Section 452.66 Statutory provisions, The opportunity for members to have a free,
fair, and informed expression of their choices among candidates seeking union office is a
prime objective of title I V of the Act. Voters can best be assured opportunity for an informed
choice if certain campaign rights are guaranteed to candidates and their supporters. To this
end, the statute provides that adequate safeguards to insure a fair election shall be provided,
and states certain specific safeguards. These safeguards apply not only to candidates for
officer positions as defined in the Act but also to candidates for delegate posts, if the delegates
are to nominate or elect officers.

I followed this section, again reading directly from the DOL provided book, section 452.99
Notice of Election, Elections required by title I V to be held by secret ballot must be preceded
by a notice of election mailed to each member at his last known home address not less than
fifteen days prior to the election.

We then confronted President Capehart with the question of sending out notification, to which he
stated, the By-Laws give the Executive Board the power to overturn the election. We decided it
would cost too much. Again, a heated debate followed. I asked Mr. Capehart to provide a copy
of the By-Laws and Constitution and he refused. Member Patrick Adams had a Constitution and
copy of the Local By-Laws in his pocket and I asked to see them.

3
Upon finding the criteria I felt applied I again addressed President Capehart. I asked if he would
acknowledge that the Constitution I held was the governing document of rules for our Union. He
stated that it was the correct Constitution. I proceeded to read sections of Article III section 3,
Composition of Convention, (paragraph 2), The election of delegates shall be conducted by
secret ballot. I n order to be eligible to be a candidate for delegate, a member must, at the time
of nomination, be in good standing with respect to payment of dues and meet the requirements
contained in the second paragraph of Article XXI V, Subdivision 1, section (b). I n addition,
Local Unions may impose in their bylaws a requirement that candidates for delegate must file
nominating petitions in support of their candidacies signed by not more than two-hundred
(200) members or two percent (2%) of the entire membership, whichever is less. Adequate
safeguards to insure a fair election shall be provided by the Local Union in accordance with
I nternational Constitution, applicable law, and such rules and regulations as may be
promulgated by the General executive Board.

After reading this out loud to President Capehart I again asked, Where does that say you have
the right to stop the election? He again said, I disagree.

At this time a very heated discussion took place. The membership was extremely angry and we
were told if we didnt like it to file a complaint. I pointed out that the complaint process of our
Constitution would take so long that the election would be a moot point. President Capehart
simply smiled at me.

These are the true and accurate reflections of the meeting to the best of my recollection.

Finn J . Pette
Member in Good Standing
IUOE Local 501

EXHI BI T 28

EXHI BI T 29

Dear Dennis,

I wanted to take a few minutes and write you a letter
to ask some pointed questions. Over the last year
the infighting and turmoil that has enveloped our
Local 501 has concerned me greatly. As you are
aware, I spent my lifetime in the construction of our
Local. I dont need to tell you how many family
events, childhood moments, and important personal
moments I missed over the decades. Over the last
year, I have heard some very discouraging reports
and events that lead primarily back to you.
Almost twenty years ago I hired you here at our
Local. Over the years you took the time to always say
how grateful you were to me for helping you in your
career. My efforts were always for the members of
this Local and although you were the recipient, it
was always by taking care of our Local that you, and
your career prospered. In fact, last year when you
became the Western Regional Director it was a
moment of pride for our Local. Then the trouble
began.
I heard the news that the Incumbent Officers fund
was stolen and yet you did not report that theft at
the time. You were the Trustee of your fellow agents
assets and this behavior is unconscionable to me.
Had this happened when I was still in office I can
only assume you know what I would have done?
Regardless of the employment question, friendships
would probably have been lost to say the least.
The incidents of Trust Fund money again raise the
issue of honesty. Jim has been the most straight-
laced person I can imaging and hiding behind a veil
of the statement that he authorized everything
simply cannot be believed. Jims trust was placed in
you. No one is removing the mantle of authority from
his shoulders, but I fail to believe that he
acknowledged or even knew about some of the
transactions that occurred. For that he remains
responsible, but it was his misplaced trust for which
you are responsible. There are also the forged
checks. Had this happened under my watch you
know I would have prosecuted to the full extent of
the law. No matter how you justify it, it is despicable
behavior.
When confronted with the bills for repayment you
refused to take responsibility and justified such
expenditures that were questionable at best. In the
end, Jim had to pay back over one thousand dollars
from his own pocket. Your actions have been
abhorrent.
You have hidden behind the protection of the
General President and used him against Jim, our
Local and others as a battering ram to demolish the
reputation of our Local and the hard working
Business Agents you left behind.
As the last year progressed I believed that at some
point things would get back to normal but that has
failed to happen. I have hoped that the Dennis
Lundy I knew and called friend would re-emerge
from this turmoil. In that hope I have been greatly
disappointed.
What happened to the man I knew? Are you still in
there? How could you tear apart a Local which
clothed and fed your family, put a roof over your
head, and ultimately propelled you to success with
the International?
I have spent a lifetime working for our members
benefit. I have tried to keep that belief alive in my
predecessor and the Agents who have followed. I
know that there are some great Agents at work in
our Local who believe as I did, that the members
come first. I remain hopeful that at some point you
will return to the man I once knew.
If you would like to talk, you know where to find me.

R. H. Fox
Business Manager Emeritus

2013 IUOE International RICO Filing

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