Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 1 of 15

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------X UNITED STATES OF AMERICA, Plaintiff, 90 Civ. 5722 (RMB) -againstDISTRICT COUNCIL OF NEW YORK CITY and VICINITY OF THE UNITED BROTHERHOOD OF CARPENTERS and JOINERS OF AMERICA, et al., Defendants. ---------------------------------------------------------------X

THE FOURTH THIRTY-DAY REPORT REGARDING ELECTRONIC JOB REPORTING AND RELATED COMPLIANCE PROCEDURES SPECIFIED IN THE COLLECTIVE BARGAINING AGREEMENTS BETWEEN THE NEW YORK CITY DISTRICT COUNCIL OF CARPENTERS AND THE ASSOCIATION OF WALL-CEILING AND CARPENTRY INDUSTRIES OF NEW YORK, INC., THE BUILDING CONTRACTORS ASSOCIATION, INC., GENERAL CONTRACTORS ASSOCIATION, INC., AND FLOOR COVERERS ASSOCIATION OF GREATER NEW YORK, INC.

District Council of New York City and Vicinity of the United Brotherhood of Carpenters and Joiners of America 395 Hudson Street, New York, NY 10014

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 2 of 15

Introduction The District Council submits this Fourth Thirty-Day Report pursuant to (1) the Decision & Order entered on May 8, 2013 (Doc. 1315); (2) the Order entered on June, 11, 2013 (Doc. 1332); (3) the Order entered on July 16, 2013 (Doc. 1358), and the Order entered on September 3, 2013 (Doc. 1386) in United States v. District Council, et al., 90 Civ. 5722 (RMB). This consolidated report describes the progress of electronic job reporting and related anti-corruption compliance measures specified in the District Councils collective bargaining agreements (CBAs) with the Wall-Ceiling and Carpentry Industries of New York, Inc. (the WC&C), the Building Contractors Association, Inc. (the BCA), the General Contractors Association of New York, Inc. (the GCA) and the Floor Coverers Association of Greater New York, Inc. (the FCA). The CBAs went into effect on May 22, 2013, July 1, 2013, August 5, 2013, and September 11, 2013 respectively. The Courts Order of September 3, 2013granting approval of the FCA CBAprovides that The District Council shall file with the Court approximately every thirty (30) days after entry of this Order and approximately every thirty days thereafter until further order of the Court a report describing (i) the progress and effect of the electronic jobs reporting procedures and the compliance and enforcement procedures under the CBA between the District Council and the Floor Coverers Association, the CBA between District Council and the GCA, the CBA between the District Council and the BCA, and the CBA between the District Council and the WC&C; (ii) the anti-corruption enforcement efforts of the District Council; and (iii) additional information regarding the status of the CBA between the District Council and the Floor Coverers Association, the CBA between the District Council and the GCA, the CBA between the District Council and the BCA, and the CBA between the District Council and the WC&C pertaining to enforcement of the Consent Decree. The reports may be consolidated. -1-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 3 of 15

The Court also held a September 3, 2013 hearing in order to receive updates and feedback from involved parties with a a brief report respecting compliance with electronic reporting of job data, including a discussion of improvements in the data. (Hrg Tr., dated September 3, 2013 (9/3/13 Tr.) at 2:5-6.) Upon concluding on September 3, 2013, the Court requested further updating on these matters in approximately 30 days. (Id. at 16:11-14.) This Report therefore describes the District Councils efforts to ensure compliance under the electronic job reporting system and the progress of electronic job reporting procedures contained in the WC&C, BCA, GCA and FCA CBAs.1 Electronic Reporting As the Court is aware, the subject of this report is the CBA requirements that District Council Shop Stewards on WC&C, BCA, and GCA jobs enter the work hours for all carpenters on their jobsites into the District Councils electronic reporting system. Beginning on September 11, 2013, electronic reporting also became active for FCA District Council Shop Stewards. As the Court is further aware, Shop Stewards are primarily expected to report hours via (1) mobile computing tablets, (2) the District Councils electronic reporting portal on its website, or (3) telephonically. Telephonic voice reporting is completed by calling the District Councils Out of Work List Office at the specially designated Report Hours Line: 877-971-8890. The Report Hours Line remains open from 6:00 a.m. to 9:00 p.m. on weekdays, and 10:00 a.m. to 6:00 p.m. on Saturdays and Sundays. In addition to these measures, it is expected that Shop Stewards create duplicate hand recorded documentation in a Shop Stewards Record Book.
1

The Courts Order entered on September 12, 2013 (Doc. 1394) approved the CBA between the District Council and the Contractors Association of Greater New York, Inc. (CAGNY). However, to date, the CAGNY CBA has not yet been implemented. The District Council continues to familiarize CAGNY personnel with the electronic job reporting requirements and procedures, and expects to provide the Court with data related to CAGNY jobs as soon as such data becomes available. -2-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 4 of 15

The District Council Business Representative Center continues to dispense and account for all mobile electronic reporting devices. To date a total of 869 electronic mobile computing tablets have been distributed. 772 tablets have been distributed to WC&C, BCA, and GCA Shop Stewards. 97 tablets have been distributed to FCA Shop Stewards since implementation of that CBA. The District Council has also held, and continues to hold, periodic meetings with representatives of the employer associations and their employer-members to review the electronic time reporting procedures. During September 2013, the District Council has held weekly workshops with the administrative personnel of the employer-members to reiterate and demonstrate the reporting process and related matters. The continuing workshops for WC&C, BCA, GCA, and FCA employers are tentatively scheduled for bi-weekly dates in October 2013. Experience Since Implementation The following charts identify all active WC&C, BCA, GCA, and FCA jobs with a District Council Shop Steward by date from August 24, 2013 to September 20, 2013. As discussed more fully at the September 30, 2013 hearing and a letter dated August 27, 2013 (Doc. 1384), past software related problems had generated imprecise statistical reports on the number of jobs with hours reported versus those with no hours reported. The noteworthy efforts of the District Councils personnel, working together with the District Councils outside information technology provider (Standard Data Corp.), have brought about a clear and lasting improvement in the reporting statistics. The District Council also anticipates continued development of written protocols created for everyone involved in the electronic reporting process, and expects to submit them to the Court upon completion. Based on the charts below, WC&C jobs were electronically reported at an overall average rate of approximately 85% from August 24, 2013 to September 20, 2013. The BCA, GCA, and -3-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 5 of 15

FCA (to the extent the FCA CBA was implemented during this period) electronic reporting rates were approximately 80%, 83% and 61% respectively during this period.2 WC&C JOBS WITH THREE OR MORE PERSONS Date 8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013 Jobs 308 302 318 325 325 323 326 314 310 310 322 329 333 345 337 335 344 356 360 365 374 369 365 374 385 386 392 400 Reporting Hours 292 286 300 305 306 303 303 291 286 286 295 298 300 302 288 281 286 291 292 291 299 288 283 294 301 299 297 300 Jobs Not Reported 16 16 18 20 19 20 23 23 24 24 27 31 33 43 49 54 58 65 68 74 75 81 82 80 84 87 95 100

These tables duplicate information within the reports for August 24, 2013 through September 20, 2013 generated by the District Councils OWL office and are included with this Report as Exhibit 1 (WC&C), Exhibit 2 (BCA), Exhibit 3 (GCA), and Exhibit 4 (FCA). -4-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 6 of 15

BCA JOBS WITH THREE OR MORE PERSONS Date 8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013 Jobs 116 116 118 118 120 115 111 107 106 106 115 116 121 124 123 121 127 128 136 139 146 146 143 147 154 155 158 160 Reporting Hours 105 104 105 105 106 101 96 92 91 91 97 94 99 97 94 92 100 98 102 108 109 108 105 111 112 111 111 111 Jobs Not Reported 11 12 13 13 14 14 15 15 15 18 18 22 22 27 27 29 27 30 34 31 37 38 38 36 42 44 47 49

-5-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 7 of 15

GCA JOBS WITH THREE OR MORE PERSONS Date 8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013 Jobs 24 24 24 25 28 29 28 28 28 28 28 28 28 29 29 29 30 31 32 32 34 33 33 33 33 33 33 33 Reporting Hours 21 21 21 21 24 25 24 24 24 24 24 24 24 25 25 25 25 26 27 27 28 27 27 28 28 28 28 27 Jobs Not Reported 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 6 6 6 5 5 5 5 6

FCA JOBS WITH THREE OR MORE PERSONS Date 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013 Jobs 35 39 38 37 40 38 41 38 39 Reporting Hours 23 24 21 21 25 24 25 21 20 Jobs Not Reported 12 15 17 16 15 14 16 17 19

-6-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 8 of 15

The table below shows the total number of all Shop Steward dispatches to WC&C, BCA, and GCA jobs from the Out of Work List for each of the indicated dates. SHOP STEWARDS DISPATCHED Date 8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013
TOTAL

WC&C 17 16 14 0 0 12 11 0 0 15 0 13 13 21 0 0 16 9 6 10 14 0 0 16 11 8 8 0
230

BCA 0 0 5 1 3 5 5 0 0 6 0 9 9 12 0 0 5 8 13 3 12 0 0 10 7 9 5 0
127

GCA 0 1 3 0 1 1 0 0 0 1 0 0 0 0 0 0 1 1 1 0 2 0 0 0 0 0 0 0
12

FCA ------------------7 5 8 0 0 1 3 4 2 0
30

Pursuant to CBAs between the District Council and WC&C, BCA, GCA, and FCA, respectively, one and two-person jobs do not require a Shop Steward referred by the District Council. Rather, signatory contractors are contractually obligated to identify and report new jobs. As shown in the table annexed to this Report as Exhibit 5, during the period August 24, 2013 to September 20, 2013, there were 340, 585, 6, and 104 one and two-person jobs opened,

-7-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 9 of 15

respectively, for the BCA, WC&C, GCA and FCA. Electronic reporting statistics for one and two-person jobs by WC&C, BCA, GCA, and FCA contractors appear in the tables below. WC&C ONE AND TWO-PERSON JOBS Date Active 71 67 80 75 75 70 66 57 57 55 56 55 60 58 54 48 52 51 48 44 45 35 33 46 42 50 48 45 1 Person Jobs Reported 70 66 78 73 73 68 64 55 55 53 54 53 58 56 52 46 50 49 45 41 42 32 31 43 39 47 41 38 Unreported 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 2 3 3 3 7 7 Active 64 58 63 64 73 77 69 55 53 53 58 59 61 61 56 57 63 63 66 70 61 62 53 60 62 57 58 65 2 Person Jobs Reported 64 58 63 64 73 77 69 55 53 53 58 59 61 61 56 57 63 63 66 70 61 62 53 60 62 57 58 65 Unreported 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013

-8-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 10 of 15

BCA ONE AND TWO-PERSON JOBS Date Active 34 33 33 34 35 39 43 37 36 35 47 49 47 45 35 35 37 39 42 40 44 39 31 34 36 33 36 37 1 Person Jobs Reported 33 32 32 33 34 38 41 36 35 34 46 48 46 44 34 34 36 38 41 39 43 38 30 33 35 32 33 33 Unreported 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 4 Active 23 21 27 27 27 26 23 18 16 16 25 21 24 21 21 19 27 28 27 26 28 22 19 20 22 25 27 26 2 Person Jobs Reported 23 21 27 27 27 26 23 18 16 16 25 21 24 21 21 19 27 27 27 25 26 20 17 18 19 22 24 22 Unreported 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 2 2 2 2 3 3 3 4

8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013

-9-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 11 of 15

GCA ONE AND TWO-PERSON JOBS Date Active 2 2 2 2 3 2 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 Person Jobs Reported 2 2 2 2 3 2 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Unreported 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Active 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 Person Jobs Reported 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Unreported 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

8/24/2013 8/25/2013 8/26/2013 8/27/2013 8/28/2013 8/29/2013 8/30/2013 8/31/2013 9/1/2013 9/2/2013 9/3/2013 9/4/2013 9/5/2013 9/6/2013 9/7/2013 9/8/2013 9/9/2013 9/10/2013 9/11/2013 9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013

-10-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 12 of 15

FCA ONE AND TWO-PERSON JOBS Date Active 12 5 3 3 5 3 5 9 11 1 Person Jobs Reported 12 5 3 3 5 3 5 9 11 Unreported 0 0 0 0 0 0 0 0 0 Active 1 2 3 2 2 4 2 Person Jobs Reported 1 2 3 2 2 3 Unreported 0 0 0 0 0 1

9/12/2013 9/13/2013 9/14/2013 9/15/2013 9/16/2013 9/17/2013 9/18/2013 9/19/2013 9/20/2013

Anti-Corruption Efforts The District Council Inspector Generals (IG) Office continues to pursue various anticorruption efforts. Chiefly, Operation Watchdog (which was described in the First Thirty-Day Report [Doc. 1330] at pages 6-7) provides wide-ranging transparency for all carpenters. By way of background, Operation Watchdog allows each rank-and-file member to visit a secure webpage linked to the District Council Internet homepage and find up-to-date data on their own hours in addition to those of every other carpenter on their particular worksite. Operation Watchdog monitoring now applies to carpenters on WC&C, BCA, GCA and FCA worksites. In addition to the methods previously described (see e.g., Third Thirty-Day Report [Doc. 1381] at p. 14), the IGs Office continues to advertise Operation Watchdog. The IGs Office has developed new Operation Watchdog informational flyers (see Exhibit 6 to this Report) and staffed an informational booth at the District Council Delegate Body Meeting on September 25, 2013, distributing information about the program. (See photo attached as Exhibit 7 to this Report.)

-11-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 13 of 15

The IGs Office also continues to distribute information about Operation Watchdog through the District Councils e-newsletter to all subscribing members. The email announcement describes the purpose and instructions for the program, and is distributed to approximately 11,000 District Council members on a weekly basis. On consecutive MondaysSeptember 9, 2013, September 16, 2013, and September 23, 2013the IGs Office held informational Operation Watchdog workshops for District Council apprentices during their weekly training sessions. The IGs Office plans to continue these recurring workshops for approximately six (6) more weeks on each consecutive Monday. The IGs Office Jobsite Integrity Inspectors also continue to monitor WC&C, BCA, GCA, and now FCA activity on jobs staffed with only one or two persons. As previously reported to the Court, the Jobsite Integrity Inspectors (retired District Council carpenters) visit randomly selected one and two-person worksites for each of the employer associations. Eleven Jobsite Integrity Inspectors currently perform the one and two-person on site monitoring. Employment interviews have been conducted for additional Jobsite Integrity Inspectors, and qualified candidates are currently undergoing a criminal background check. Upon approval for hire, the total number Jobsite Integrity Inspectors will be 16. For the period of August 24, 2013 through September 20, 2013, the Jobsite Integrity Inspectors visited a total of 170 one-person jobsites and 174 two-person jobsites. During that period, the Jobsite Integrity Inspectors detected five CBA violations. (See Exhibit 8 annexed to this report.) In accordance with its practice, the IGs office responds to identified violations by filing a grievance against the non-compliant employer. As discussed in the Third Thirty-Day Report (Doc. 1381) at pages 17-18, the IGs Office is in the process of launching an additional compliance program titled, Operation Catch Me if You Can. The IGs Office expects that, working with District Councils outside information -12-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 14 of 15

technology firm (Standard Data Corp.), it will receive the data necessary to launch the program within the next several weeks. Briefly, Operation Catch Me if You Can involves a side-by-side comparison of District Council electronic reporting data and data regarding contributions to the District Council Benefit Funds in order to determine that the figures match. Similar to Operation Watchdog, the IGs Office will publicize the Operation Catch Me if You Can program in order to announce its rollout. Again, it should be noted that the IGs Office continues to monitor its anti-corruption hotline and email address when members or others may report violations of the WC&C, BCA, GCA, and FCA CBAs. Complaints related to alleged violations of the CBAs requirements received by the IGs Office from those sources are pursued by the IGs Office in the ordinary course of its duties. Conclusion The District Council remains committed to ensuring the success of and compliance with these electronic job reporting and anti-corruption programs.

-13-

Case 1:90-cv-05722-RMB-THK Document 1409

Filed 10/04/13 Page 15 of 15

Dated: New York, New York October 4, 2013 Respectfully submitted, Report Compiled by the Offices of the Inspector General, Director of Operations, Representative Center, and the Out of Work List of the New York City District Council of Carpenters 395 Hudson Street New York, NY 10014 CONTACT: Scott C. Danielson Inspector General and Assistant Chief Compliance Officer New York City District Council of Carpenters 395 Hudson Street, 9th Floor New York, NY 10014 212-366-3361 sdanielson@nycdcigoffice.org

-14-