Robert Leone Business Manager / Secretary Treasurer

Labourers' International Union of North America, A.F.L - C.I.O.,
LOCAL 1089
Rick Vani -President
G. Varricchio -Vice President
F. Guerette -Recording Secretary
V. Horvath -Board Member
F. Vennari -Board Member
M. Iafrate -Board Member

November 15, 1999

Dear Member:

RE: Report on special called meeting of Nov. 11, 1999

I would like to begin my report by thanking all the members who came out and participated in the lively debate at the Special Called Meeting of Nov. 11,1999. It was very encouraging for me to see a really great turn out for the vital and extensive debate which took place during this 3 & * hour meeting.

Maintenance Agreement - Following thorough discussion the Maintenance Memorandum of Agreement between the Sarnia Construction Association and LIUNA Local 1089 was accepted by a 74% favourable vote of those present and voting.

Social Investment - The following highlights were thoroughly discussed:

A letter from an unknown source was sent to many members with confidential, false and misleading information regarding the wages of Robert Leone, Rick Vani, and Frank Guerette. This letter used the information for grounds to turn down the Social Investment Proposal put forward by the Executive Board of Local 1089. This letter also suggested that because of false and misleading information the members should join a protest rally in front of Local 1089 the next day, along with other members from across North America to remove your Elected Officers.

This rally was held on Nov.12, 1999 in front of Local 1089 at which 6 people showed up. Three of these attenders were members of the Joe Portiss family. None of which are union member. The other 3 were Political allies of the Portiss family. One of these came disguised as Santa Clause driving a car with the license plate THE NIX. Another one, approximately 6'4", disguised his identity by wearing a scary monster mask and trenchcoat, he walked fine without his cane. The third who wore no disguise was Retiree Donato Marinaro. His son Vince Marinaro showed up later for a few minutes.

Prior to the above mentioned letter and rally, James Portiss had initiated a Civil Action against the Union for over $500, 000.00. Monies calculated from 1993 to present for loss of wages and humiliation. This case was dismissed by a Judge on November 10,1999.

This letter and rally simply appears to be politics and revenge against the Union and its' democratic process. It is ridiculous that these three members would come out and support that type of rally with Laura Portiss as their spokesperson, while her brother has been trying to sue the Union for over $ 500,000.00.

Lengthy discussion was held which clarified the true wages and severance packages of Robert Leone, Rick Vani and Frank Guerette. Following detailed discussion it was shown that:

(i) The wages and severance pay of these officers are no secret to the members of Local 1089 and are being paid properly in compliance with the motions passed by you the members of Local 1089 over the years.

(ii) The financial transactions go through extensive auditing processes which are conducted by:

-your elected Executive Board Members
-your 3 elected Union Auditors
-BDO Dunwoody LLP-Certified Accountants
-Certified Auditors from the International Union

Recently our financial dealings have been scrutinized by the anti-racketeering division of the OPP. All of the above have found our financial activities to be Clear and Proper.

A three hour discussion on this issue was informative and covered areas such as Contractors, legal Opinion, Associated Costs, Scaffold Product, Jurisdiction Issues, Skills and Training Issues, Apprenticeship, and most important of all Job Creation Potential.

It appears that Union members and/or Union staff have released confidential membership information. The members expressed their concern over the seriousness of this issue in that the release of confidential records could be used against the Union and/or Union members in areas such as Collections, Employment Insurance Investigations, Compensation Issues, Civil Actions, Health and Welfare Transactions, etc. etc. etc.

It was therefore decided by the membership that the Business Manager must investigate and locate the source of this breach of trust. The members then passed a motion that any Union staff person involved in this breach of union security be Fired and that any union member involved be charged and expelled from Union Membership.

As Business Manager I do not look forward to this investigation, with its' potential for charges being laid against members and/or a staff member being fired. As I prefer to look to find the best in people. I fear I may be heart broken by what I may find in a full and thorough investigation.

After an extensive question and answer period the members overwhelmingly supported the decision to proceed with the Scaffold Investment by passing a motion that the President and Business Manager of LIUNA Local 1089 adopt and execute a Resolution which amends the Benefit Trust Agreement of instruct the Trustees of the Benefit Trust Fund to determine if the Future Eligibility Reserve is fully funded and then to invest up to 75% of the surplus remaining (after the Future Eligibility Reserve is fully funded) by way of debt or equity, or a combination thereof in a corporation or other entity whose intended primary purpose is to purchase, lease and/or manufacture Scaffolding Equipment, provided the investment thereof will not affect the ongoing viability of the fund.

The intended purpose of this Resolution is to:

(i) Create employment opportunities for the members of Local 1089.
(ii) Increase the returns presently being earned on the invested assets.
(iii) Maintain and protect Labourers jurisdiction.

It is expected that some people and companies for personal, political and financial reasons will continue to try to sabotage this historical chance for the Labourers Union. Let us therefore join together. Ready to fight against the attacks, false information and outright lies against our Union put forth as an attempt to stop us from securing our work.

I would like to take this time to express my appreciation to those of you who attended this meeting and to thank the membership for the vote of confidence in allowing this Social Investment to proceed to the next step. I would also like to thank the members for the Solidarity they have shown towards the officers of our great Union. I wish each and every member peace and prosperity as the coming years unfold before us. The Christmas Season is fast approaching and I look forward to seeing you and your children at the upcoming Christmas Party to celebrate the Joyous Season in Harmony.

Yours in Solidarity


Robert Leone

Business Manager

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