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DemianD.Schroeder14MeadowStreetBrooklyn,NY

11206

March20,2013

BYHANDTheHonorableRichardM.BermanUnitedStatesDistrictJudgeDanielPatrickMoynihanUnitedStatesCourthouse500PearlStreetNewYork,NY10007-1312

Re:UnitedStatesofAmericav.DistrictCouncilofNewYorkCityandVicinityoftheUnited BrotherhoodofCarpentersandJoinersofAmerica,etal.,Case1:90-cv-05722-RMB-THKDearJudgeBerman:

InregardtotheexecutionoftheDistrictCouncil/Wall-Ceilingcontract(CBA)datedMarch12,2013assetforthbytheCourt'sMarch13,2013Order[Document1255]IsubmitforYourHonorsubsequentobservationsrelevanttotheCase:

DuringtheDistrictCouncilDelegateBodymeetingofMarch12,2013DelegateJohnMusumeciof

LocalUnion

157

brought

to

the

attention

of

EST

Michael

Bilello

two

discrepancies

within

the

Wall

-CeilingAgreement.

1) DelegateMusumeci'sidentifiedthenon-existentstampplan(referredtobyside-letterenclosureofDistrictCouncilattorneyMurphyinsubmission[Document1272]toYourHonorableCourtonMarch15,2013.)SaidlanguageneedstobestrickenfromtheCBA.

2) DelegateMusumecithenpresentedaseconddiscrepancytoESTBilellowithintheWall-CeilingAgreementregardinganhourly-allocationof$2.12totheWelfareFund.ThoughnotvestedbytheAugust5,2011DistrictCouncilBylawswithauthoritytodoso,and inabsenceofapprovalfromtheDelegateBodyunderitsinherentandcontrollingplenarypowerand

authority,

EST

Michael

Bilello

entered

into

an

illegal

agreement

on

behalf

of

the

District

CouncilwiththeWC&CandincreasedtheWelfareFundcontributionby$2.12perfrom$11.25to$13.37.

ESTBilellowasquestioneddirectlybyDelegateMusumeciwhyhewouldexecuteacontractallocatingwageratesandfringebenefitcontributionswithoutdebateorvotebytheDelegateBody.

TheESThasnoauthorityeitherexpressorimpliedwhichallowshimtosubvertandholduntohimselfapowernotreservedtohim,thushisillegalactionsrequireavetobytheReviewOfficer.

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EST

Bilello

refused

to

answer

questions

directly,

and

was

conspicuously

silent

to

the

extent

of

DelegateMusumeci'sremainingallottedtime.ThoughDistrictCounselattorneyJamesMurphyandtheReviewOfficerDennisWalshwerepresent,neitherofthemapproachedthedaistoprovideanexplanationforassembledDelegates,andattendingrank-and-fileMembershipinthebackgallery.

Contrarytothefalseclaimsstandtheallegedwage&benefitincreases"guaranteedthroughoutthetermofthisagreement,asitisimmediatelydestroyedbyExecutiveSecretary-Treasurers(EST)fraudulentuseoftheillegalreallocationclause.

ThereremainsanurgentneedtoinvestigatethelegitimacyoftheentireprocesswithintheDistrictCounciladministrationwithspecificregardtotheDistrictCouncilEST,Officers,andBenefitFund

Trustees

failure

to

acknowledge

or

abide

by

the

by

the

August

5,

2011

by-

laws

approved

by

this

HonorableCourt.

ThelackofoversightprovidedbytheUnitedStatesAttorneysOfficeandtheCourtappointedReviewOfficerforvettingcontractlanguage,orenforcingby-lawswhichtheyostensiblyauthoredisalarming.TheseconddiscrepancyDelegateMusumecifoundisparticularlydisturbingasitinvolvestheillegaltransferofapproximately$38,340,000dollarsofrankandfilememberpayraisestotheWelfareFundforoneyear.OvertheproposedlifeofthecontractexpiringJune30,2017thiswouldamounttoanillegalreallocationof$166,012,000dollars(4.33yearsx$38.34M)totheWelfareFundbeforetheinkisdryonarulingfromthisCourt.

TheDistrictCouncilsprogramofillegalexactionsandextortionofmembersVacationWages(BlueCardSeeAttachmentNo.1to7)areprimeexampleswhichpresenttheissueofanongoingpatternofcontinuedfraudandracketeering,noneofwhichshouldbesanctionedbytheU.S.A.O.ortheR.O.yet,inabsenceofyourintervention,correctionandaproperOrderfromthisHonorableCourt,itshallcontinueunabated.

TheAugust5,2011By-Laws,Section4(B)state:

(B)ThefullplenarypowerandauthorityoftheDistrictCouncilisherebyvested,withoutlimitation,intheDelegatestotheCouncilthatshallcollectivelyformtheCouncilDelegateBody.InaccordancewithSection7oftheseBylaws,theCouncilDelegateBodyshallbeelectedbytherankandfilemembersoftheUnitedBrotherhoodofeachaffiliated

Local

Union.

There

shall

be

atotal

of

One

Hundred

(100)

Delegates

to

the

District

CouncilfromtheLocalUnions,suchDelegatestocomprisetheCouncilDelegateBody.EachLocalUnionshallhaveatleastoneDelegatetotheDistrictCouncil,withtheremainingDelegatesallocatedproportionallyamongsttheLocalUnionsbaseduponthetotalmembershipofeachLocalUnionasapercentageoftheaggregatemembershipofallLocalUnionsoftheDistrictCouncil.TheCouncilDelegateBodyshallexercisetheauthoritygrantedtoitinSection5oftheseBylawsbymajorityvoteandeachDelegateshallbeelectedforatermofthree(3)years.Intheeventofatievote,thePresidentshallcastthetie-breakingvote.

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ThecontractproposalpresentedinCourtonFebruary27,2013andasexecutedMarch12,2013states:

WALL-CEILINGCBA -ARTICLEXII,Section8.Wages&Benefits - WageandBenefitincreasesarenottiedtoanybenchmarkssuchastotalhoursworkedandareguaranteedthroughoutthetermofthisagreement.Wageratesandfringebenefitcontributionswithinthebargainingunitshallbedeterminedand/orreallocatedby[the]Unionatitssolediscretion.

In direct contravention to NYCDCC By-Law Sec. 4(B) stands the continued fraudulent attempt bythe District Council EST, its Officers and Executive Committee members, and the Wall-Ceiling &Carpentry Industries of New York, Inc. and their joint desire to extinguish via collective bargainingagreement (CBA) the Council Delegate Bodys vested rights stated above, and thus negate its plenary

power and authority which are without limitation.

Given the United States Attorney and the Review Officer are well aware of these continued abusesof power and have failed to act, the only prospective remedy going forward is an Order from thisHonorable Court directing the District Council and the Wall-Ceiling & Carpentry Industries of NewYork, Inc. to expunge Article XII, Section 8 in its entirety from this CBA and to apply this Order toany/all successor agreements and/or Memorandums of Understanding (MOU) which the DistrictCouncil attempts to execute both now or in the future.

The thirty-eight million, three hundred & forty thousand dollar pay raise, totaling $166M over the4.33 year life of the contract, belongs in the rank & file member paychecks. The NYCDC andcontractor association cannot appropriate it to another use without proper motion, discussion, debateand the binding vote of the Council Delegate Body as vested and held unto them under By-lawSection 4(B).

To allow this to occur would in essence mandate Court approval of the conversion/misappropriationand sanction a plan of out and out extortion both of rights granted and of monies/raises duly owedand guaranteed throughout the term of this agreement.

We pray the Honorable Court remedy this situation once and for all times, less the Court loses itsinherent authority.

Respectfully,

Demian D. Schroeder

Enclosure

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cc: BY E-MAIL

Benjamin H. TorranceAssistant United States AttorneyCivil DivisionOffice of the United States Attorneyfor the Southern District of New York86 Chambers StreetNew York, NY 10007

Dennis M. Walsh, Esq.Review Officer

The Law Office of Dennis M. Walsh415 Madison Avenue, 11th FloorNew York, NY 10017

Bridget M. Rhode, Esq.Counsel to the Review OfficerMintz, Levitz, Cohn, Ferris, Glovsky & Popeo, P.C.666 Third AvenueNew York, NY 10017

New York City & Vicinity District Council of CarpentersExecutive Secretary-Treasurer Michael Bilello395 Hudson StreetNew York, NY 10014

James M. MurphyCounsel for the New York City & Vicinity District Council of CarpentersSpivak-Lipton, LLP1700 BroadwayNew York, NY 10019

John DeLollisExecutive DirectorAssociation of Wall-Ceiling & Carpentry Industries of New York, Inc.125 Jericho Turnpike, Suite 301Jericho, NY 11753-1022

Mark A. Rosen, Esq.Counsel for the Association of Wall-Ceiling & Carpentry Industries of New York, Inc.McElroy, Deutsch, Mulvaney, & Carpenter, LLP1300 Mount Kemble AvenueMorristown,NJ07962-2075

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ADDITIONALSERVICEviaE-Mail:

RobertF.Makowski,SterlingDadone,NormanSaul,RaynierGamboa,VeronicaSession

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