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Mr. Frank Spencer, Supervisor

New York City District Council of Carpenters
395 Hudson Street
New York, New York 10014

This will constitute formal notice of action being taken by the United Brotherhood
of Carpenters and Joiners of America ("UBC") pursuant to its authority under the UBC
Constitution.

Members of the General Executive Board ("GEBtl) of the UBC convened on

January 20,2010, and reviewed and considered the Hearing Committee's report
regarding the New York City District Council of Carpenters. After full consideration and
review, the GEB unanimously decided to adopt the findings and recommendations
contained in the report of the Hearing Committee and voted to ratify and continue the
imposition of the trusteeship. Accordingly, effective immediately, pursuant to the
authority provided for in the UBC Constitution, the UBe hereby continues the
supervision over the District Council.

You shall continue in your appointed capacity as supervisor of the District

Council with full supervisory authority, according to the UBC Constitution and Laws, and
the power to assume and exercise full and complete authority over the conduct of the
District\Council's affairs, including, but not limited to, the authority to enforce collective
bargaining agreements, the auUlurity to administer all ot tne District Council's assets,
the authority to appoint assistant supervisors to assist you in the completion of your
duties, the authority to conduct and cancel all meetings, the authority to remove and
hire any and all officers, delegates, stewards and employees, as may be deemed
necessary to insure the proper exercise of the supervisor's authority in carrying out the
purposes of the supervision and insuring the proper functioning of the District Council.

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GENERAL PRESIDENT
 enforce collective bargaining agreements, including allowing
contractors to not make fringe benefit contributions;
falsified shop steward reports; committed perjury; and,
obstructed justice, with respect to District Council
matters.
According to comments regarding the indictment issued
by the United States government, defendants named in the
indictment, including District Council employees and/or
representatives, "are charged with unlawfully receiving
money, loans, or other things of value from contractors, in
a total amount of approximately one million dollars ....In
exchange for the bribes, the defendants allowed and helped
certain contractors to defraud the union and its benefit
funds out of millions of dollars by permitting the
contractors to, among other things, pay union members cash
at below-union rates, without benefits; employ illegal
aliens and non-union workers on their job sites; and avoid
payment to the union benefit funds in violation of
applicable [collective bargaining agreements] ."

The referenced indictment, and General President McCarron's

letters of August 10, 2009, and September 23, 2009, were posted
to the District Council's website and made available for review
by the membership prior to the hearing. We note that both
letters were also mailed to the membership. Furthermore, the
Hearing Committee explained to the membership in attendance that
the purpose of the hearing was to determine if the trusteeship
should be continued.
Thus, we are satisfied that the membership was fully
appraised of the action taken by the UBC, and provided timely
notice of the hearing date, time and location, and its purpose.
The District Council has geographical and trade jurisdiction
covering all five boroughs of New York City, and parts of the
surrounding area. There are eleven (11) local unions affiliated
with the District Council: Local Unions 20, 45, 157, 608, 740,
both effective supervision and potential for corruption." (TR 46)
Newkirk then went to describe the issues that the structure
created. (TR 46-49) Finally, he described the necessary
improvements to the system, e.g. a supervisory accountability
model that is "streamlined and hands-on" (TR 53) and "is free of
political considerations pertaining to disciplinary procedures."
(TR 54)

Newkirk concluded, in this regard, that, "a

supervisory/accountability model with the characteristics just
described will be, in the future, critical to the effective
supervision of staff in the field, as well as preventing and/or
stopping systemic corruption that has plagued the [District
Council] for decades. Clearly, to change to a more progressive
model will require an unsettling organizational and culture shift
which, to be fully implemented, will require time and extended
DBC supervision." (TR 54)
Newkirk also discussed the efforts of the Anti-Corruption
Committee ("ACC") and the Independent Investigator ("II") (TR
54-84) The first II assumed his duties in January 2003. (TR 58)
The ACC "was an initiative of the District Council and was put in
place in [ ] 2000." (TR 56) The ACC was established to stop
corruption with respect to enforcement of collective bargaining
agreements, out-of-work list manipulation, etc. (TR 56) Although
as Newkirk pointed out, the ACC and II have accomplished much,
the recent indictment "coupled with the long-held skepticism by
the government concerning the anticorruption efforts of the
[District Council], the ACC, [and] II Callahan," (TR 83) suggests
the question whether more could be done to fight corruption in
the District Council. Thus, a review of the District Council's
efforts in this regard is necessary to answer this question.
Newkirk asserted that such a review can only be "effectively done