Laborers' union takes control of Local 368 | The Honolulu Advertiser

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Laborers' union takes control of Local 368 | The Honolulu Advertiser | Hawaii's Newspaper

Posted on: Wednesday, January 31, 2007

Laborers' union takes control of Local 368

By Rick Daysog
Advertiser Staff Writer

The Laborers' International Union of North America has taken control of its 3,500-member Hawai'i organization, alleging local union officials spent more than $450,000 on trips to the Philippines and gave preference to friends and relatives for construction jobs.

The Washington, D.C.-based international union on Monday stripped Local 368 officials of their duties, seized the local's bank accounts and records and appointed a union vice president — Rocco Davis of Rancho Cordova, Calif. — as trustee to run the daily operations.

"Serious concerns have been raised about the conduct of the local union's officers," Terence O'Sullivan, the general president of the Laborers' International Union, said in a letter to members.

Ben Saguibo, the union's longtime business manager, could not be reached for comment.

Kenneth Casarez, a deputy trustee appointed by the international union, did not return calls.

The union posted O'Sullivan's letter at its 1617 Palama St. headquarters. In the letter, O'Sullivan said that the international union recently conducted an audit of the local union's finances and found a number of "serious" problems. O'Sullivan, who did not name the individuals, alleged local union officials:

Did not follow mandatory guidelines for job referrals. This allowed union officers to dispatch friends and relatives to job openings at the expense of qualified workers who were waiting longer for the openings.

Spent more than $450,000 over five years for trips to the Philippines. The annual trips were taken to look into the needs of retirees now living in the Philippines, but O'Sullivan said the trips "appear to have yielded comparatively little benefit to the local union or its retired members."

Sold union-owned cars to friends and relatives for less than the fair-market value. In some cases, the union ended up paying for costly repairs to those cars.

Were delinquent on paying back cash advances and didn't properly reimburse the union for personal use of union-issued cell phones.

Failed to provide sufficient detail in monthly financial reports to members and failed to obtain approval of members for extraordinary expenses and questionable disbursements.

O'Sullivan did not say how long the trusteeship would last but did say the union will hold a hearing at a later date to determine if the trusteeship should continue.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.

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