The Connecticut Laborers' District Council settled a lawsuit on Wednesday which had
been brought by its Bridgeport local affiliate and several union members. The case was being
watched closely by union democracy activists across the country. The plaintiffs had challenged
the manner in which the district council collected and spent mcmbers' dues.

    "We won almost everything we were looking for," said Ronald Nobili, Business manager
of Laborers' Local 665 in Bridgeport. 'This settlement is a big step forward for those of us who
believe unions should be run by the members and for the members."

    The laborers' union is one of the largest construction unions in the country. It was singled
out several years ago by the President's Commission on Organized Crime, which concluded that
organized crime had infiltrated the union. The union submitted to federal supervision, which is
continuing. The Connecticut Laborers' District Council, the defendant in the lawsuit, is the state-
wide union body, which oversees ten construction locals, including Bridgeport, Hartford, New
Haven and New London.

    The plaintiffs claimed in their lawsuit that the district council circumvented
federal labor laws by repeatedly raising members' dues without the members'

authorization. The suit also claimed the district council wasted members' money on
"meals which include expensive hors d'oeuvres, entrees, and wine, (and] paying for
travel ... which bear little or no relation to legitimate union activities."

    The business manager of the district council is Charles LeConche, who is also
business manager of the Hartford local. The plaintiffs charged that the illegal practices
began during the tenure of LeConche's predecessor, Dominick Lopreato. Lopreato is
currently serving a four-year sentence in federal prison for accepting kickbacks from the
now-defunct Colonial Realty.

    The lawsuit alleged that the district council illegally received approximately $1.2
million per year that properly belonged to the affiliated locals. The district council used
this money to buy the loyalty of some of the locals' officers, it was claimed. 'if the local
officers balked at following the orders of the district council, they would be in the
position of having to bite the hand that fed them," said Nobili. "And, because they were
spending money that did not belong to them, they had no incentive to practice fiscal
responsibility."

   The plaintiffs' attorney, Leon M. Rosenblatt of West Hartford, commented that
the district council's "scheme was elegant in its simplicity but it was hard to trace." He
said, " I once tried to explain our case to a judge. After stumbling over my words for
about fifteen minutes, he interrupted me and said, pointing to my clients, 'Oh, I get it.
They're paying off other people with your money.' That was it in a nutshell," Rosenblatt
said.

    In court papers, the plaintiffs gave the example of a former member of the
executive board of the district council. His local in Norwalk was small, with about 245
members, but he drew several salaries adding up to a six-figure income. "If his own
members wanted to pay him that much, it would not have been a problem," Rosenblatt
explained. "But most of the money was paid by laborers in Bridgeport, Hartford, New
Haven and New London. and they were never given a choice."

    Under the settlement agreement, laborers in Connecticut will have the right to
approve or disapprove future dues  increases in a secret ballot vote. Additionally, dues
taken out of members' paychecks, called working dues will have to be given to the locals

in proportion to the number of hours worked by each local's members. "It will no longer be
possible for them to subsidize locals which do not practice fiscal responsibility," Nobili
explained.

The district council has also agreed to pay the plaintiffs' legal fees.

    Herman Benson, the founder of the Association for Union Democracy in New York,
was pleased with the settlement. "Unions have been using district councils to evade the union
democracy provisions of federal law. The successful suit of local 665 has curbed some of the
most egregious aspects of this egregious practice," he said.

    Nobili said he was proudest of his members' courage. "They took a stand against
injustice. That is not an easy thing to do in this union"'he said.

-End

District Council; and

Whereas, the parties wish to conclude this matter to avoid the time, expense and

uncertainty involved in trying this matter to conclusion, and, further, to promote unity and

harmony within LIUNA,

Wherefore, the plaintiffs and defendant agree as follows;

1

I. WITHDRAWAL OF SUIT

The plaintiffs will cause this lawsuit to be withdrawn with prejudice.

11. WORKING DUES

Working dues paid by Connecticut members of MINA (known variously as "working dues,"
" hourly dues," and "administrative dues") will continue at the present rate of 43 cents per hour,

     The working dues will continue to be collected by The Connecticut Laborers' Fund from
employers. The dues will be deposited in an interest bearing account. The Fund will send this money,
with accumulated interest, to The Connecticut Laborers' District Council on a monthly basis. (The Fund
may hold back payout of checks for a period of time not to exceed one month to ensure the checks do not
bounce.) The District Council will receive this money on behalf of itself and the affiliated construction
locals and will distribute the money to the affiliated construction locals in amounts proportionate to the
number of hours worked by the members of the respective locals after retaining its share of the working
dues. The Connecticut Laborers' Fund will prepare monthly reports specifying for each working member
the hours worked, the employer, and the local to which the member belongs. The Connecticut Laborers'
District Council will utilize this report in apportioning the working dues.

    This report will be provided to each of the affiliated locals so the local can verify collection and distribution
of the dues. In the event that there are dues paid on account of members whose local membership cannot
be dctermined the District Council, after retaining its share, will divide the dues equally among the
affiliated construction locals.

    Future increases in working dues, if any, will be put to a secret ballot vote. The vote will be
conducted by each affiliated local in a manner conducive to the greatest possible participation by union
members. and conforming to the LNMA. Increases will not be implemented unless a majority of voting
members state-wide vote in favor of the increase.

2

    Working dues payable by locals to the district council will be proportionate to each local's share
of working dues

    This agreement shall not impair or compromise the rights or claims of any person or entity not a
party to this lawsuit. Nor shall this Agreement impair or compromise the right or ability of any person or
entity to challenge The District council's receiving more than 20% of working dues.

III. NON-RETALIATION

    The Connecticut District Council will not sue, bring charges or retaliate in any way against the
the Plaintiffs or their employees. representatives and supportera, or against members of Local 665. on account
of this law suit and the issues related to it. Nor will The Connecticut District Council support, countenance,
or encourage in any fashion any other person or union body to sue. bring charges at retaliate in any way.

    The Executive Board of LIUNA will execute the statement contained in Appendix A. This
agreement is contirigent upon such execution.

    The Connecticut District Council will defend this agreement in any internal challenge.

IV. ATTORNEYS' FEES AND COSTS

The District Council will pay S 100,000 to Leon M. Rosenblatt for litigation costs. Tthe District
Council will bear its own costs and counsel fees in connection. with this suit.

V. DISSEMINATION OF THIS AGREEMENT

A letter in the form of Appendix 8 will be sent withm 10 days by The Connecticut District
Council to every Connecticut member of LIUNA. It will be sent unaccompanied by any other
material.

3

 

APPENDIX A

On behalf of The Laborers' International Union of North America and its Executive
Board, I hereby declare under penalty of perjury that LIUNA will not retaliate against Local 665
or any of its members or officers for any conduct taken in connection with this lawsait.

APPENDIX B

[DATE)

 

RE: SETTLEMENT OF LAWSUIT

(SALUTATION]

    We are writing to inform you that the lawsuit brought by Local 665 and its members has
been settled.

     There will be changes in the way in which working dues are collected and distributed. The working
dues will continue to be collected by the Connecticut Laborers' Fund from enployers. Thedues will be
deposited in an interest bearing account. The Fund will send this money, with accurnalated interest  to the
Connecticut Laborers' District Council on a monthly basis. The District Council will receive this money on
behalf of its affiliated construction locals and will distribute the money to the locals in amounts
proportionate to the number of hours worked by the members of the respective locals. The Connecticut
Laborers' 'Fuuds will prepare monthly reports specifying for each working member the hours worked, the
employer, and the local to which the member belongs. The Connecticut Laborers' District Council will
utilize this report in apportioning the working dues. This report will be provided to each of the affiliated
locals so the local can verify collection and distribution of the dues. In the event that there are dues paid on
account of members whose local membership cannot be deminined, the dues will be divided evenly among
the locals.

    Future increases in working dues, if any, will be put to a secret ballot vote. The vote will be
conducted by each affiliated local in a manner conducive to the greatest possible participation by union
members, and conforming to the LMRDA. Increases will not be implemented unless a majority of voting
members state-wide vote in favor of the increase.

    Working dues payable by locals to the district council will be proportionate to each local's share
of working dues.