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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


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

Introduction The District Council submits this Second Thirty-Day Report pursuant to (1) the Decision & Order entered on May 8, 2013 (Doc. 1315); and (2) the Decision & Order entered on June, 11, 2013 (Doc. 1332) in United States v. District Council, et al., 90 Civ. 5722 (RMB). This consolidated report pertains to 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) and the Building Contractors Association, Inc. (the BCA). The WC&C CBA went into effect on May 22, 2013 and the BCA CBA went into effect on July 1, 2013. The Courts June, 11, 2013 Decision & Order provides 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 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 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 with other report(s) regarding anti-corruption mechanisms contained in other collective bargaining agreements. The following describes the efforts put forth by the District Council to ensure compliance under the electronic job reporting system and the progress and effect of the newly adopted procedures contained in the WC&C and BCA CBAs. This Second Thirty-Day Report builds


upon and supplements the June 7, 2013 First Thirty-Day Report (Doc. 1330), and familiarity with that earlier Report is presumed.

Electronic Reporting Beginning on May 22, 2013, and continuing to date, all Shop Stewards on WC&C jobs are required to enter the work hours for crewmembers on their jobsite into the District Councils electronic reporting system. Beginning on July 1, 2013, the same became true for Shop Stewards on BCA jobsites. As discussed in the District Councils First Thirty-Day Report pertaining to the WC&C CBA and reiterated below, Shop Stewards on WC&C and BCA jobsites have a choice of supplementary options for reporting their hours. Primarily, however, Shop Stewards are expected to report hours via a mobile computing tablet supplied by the District Councils Business Representative Center. The Business Representative Center remains responsible for distributing and tracking the electronic reporting devices. To date, six hundred seventy (670) electronic mobile computing tablets have been deployed to Shop Stewards for use in the field. The District Council also continues to provide training on the operation of these devices as described in the First Thirty-Day Report. Presently, trainings are held two days per week. To date, a total of 1,385 shop stewards have been trained on their devices. The District Council continues to distribute Shop Stewards Record Books to Shop Stewards on WC&C and BCA jobs. The Record Book allows Shop Stewards to record by hand the hours they are reporting electronically. For reference, each Shop Steward Record Book also includes information about contacting the Office of the Inspector General (IG) to report violations. An example of the Shop Stewards Record Book was included as Exhibit 3 to the First Thirty-Day Report.


The District Council continues to allow Shop Stewards to report work hours via the District Councils website. Duplicate links are featured on the District Councils website home page and the IGs Office subpage. Each link connects Shop Stewards to the District Councils Member Hours Reporting-Shop Steward Login where they may electronically submit the work hours for their jobsite. Finally, WC&C and BCA Shop Stewards may report hours by voice if necessary. They may call the Out of Work List Office at the specially designated Report Hours Line: 877-9718890. The Report Hours Line is presently open every day (Sunday through Saturday) from 10:00 a.m. to 6:00 p.m.

Experience Since Implementation Since the date of the First Thirty-Day ReportJune 7, 2013the collective bargaining agreement between the BCA and the District Council went into effect on July 1, 2013. Therefore, the District Council now tracks all active WC&C and BCA jobsites as well as separately assessing the number of those jobsites with Shop Stewards. The numbers used in determining the below data on WC&C and BCA jobs was sourced from the new job numbers created by the District Council Representative Center and dispatches of Shop Stewards via the District Council Out of Work List. As discussed in the First Thirty-Day Report, and more recently during the Courts conference in this matter on July 16, 2013, a problem persists with respect to certain jobs that are identified as not reporting hours. Some jobs identified as active have in fact been closed and require no reporting. This error is attributable to a computer programming issue. The District


Council is presently taking steps to correct this inaccuracy with its outside information technology firm, Standard Data Corp. (SDC). Working with SDC, the District Council has identified and rectified the programming issues concerning the active jobs lists where actual closed jobs were continued to be reported. It continues to address this issue on a day-to-day basis to ensure compliance. The District Councils staff continues to work long and irregular hours in order to correct this problem and has also advised SDC of the need for a quick and final solution. The District Council expects that the matter will be resolved entirely and finally within ten (10) days of this Report. It should again be noted that the SDC programming issue was largely responsible for the inaccurate data that were included as Exhibits A and B to the Courts June 16, 2013 conference. The July 16 exhibits were draft documents, while the updated documents attached to this Report as Exhibit 1 and Exhibit 2 (regarding the WC&C and BCA, respectively) represent the most current data, and the District Council continues to monitor this data with the assistance of its technology vendor, SDC.1

The following illustration of this problem in connection with the July 16 exhibits submitted to the Court was observed: a sampling of the effect that the closed jobs had on the WC&C reporting numbers was completed for July 7, 2013 and July 8, 2013. That two-day sampling showed the following. On July 7, 2013, 86 jobs were identified as actually closed and therefore the accurate number of active jobs was reduced to 261 from an initial daily total of 347. Of the 261 active jobs on July 7, 2013, 245 were identified as having hours reported. Those without reported hours declined from 102 to 16. Similarly, on July 8, 2013, 75 jobs were identified as actually closed and the accurate number of active jobs was reduced to 282 from an invalid daily total of 357. Of the 282 actually active jobs on July 8, 2013, reported hours were received for 253 and jobs with no reported hours declined from to 104 to 29. In the current data (Exhibit 1 at p. 3 and Exhibit 2 at p. 3) jobs recurrently identified as active but not reporting hours decreased significantly simply by purging the distorting numbers.


After troubleshooting the process, the District Council will develop written protocols for all parties involved in the data tracking process and anticipates submitting a copy of such protocols to the Court in connection with its next scheduled Report. It should also be noted, as described in the First Thirty-Day Report, that the District Council will show no tolerance for Shop Stewards who continually fail to report hours via the above-identified procedures. Recalcitrant Shop Stewards will be removed as the Shop Steward at their respective jobsites and referred to the Shop Steward Review Program for further action (up to and including stripping their Shop Steward skill designations). Each District Council Shop Steward must review and sign an acknowledgement form pledging their commitment to satisfying the electronic reporting programs requirements. (See Exhibit 3 attached hereto.) Since implementation, the District Council has also made over one thousand phones calls to Shop Steward to advise them of their personal compliance requirements on a daily basis. The following charts identify all active WC&C and BCA jobs with a District Council Shop Steward by date from June 7, 2013 through July 12, 2013.2 Based on the charts, for the WC&C, jobs were electronically reported at an overall average rate of approximately 84% during this period. For the BCA, electronic reporting from the date of implementation (July 1, 2013) was completed at an overall average rate of approximately 64%.

These charts reiterate the data in Exhibits 1 (p. 3) and Exhibit 2 (p.3) regarding jobs requiring a shop steward (i.e., jobs that require three or more persons) and are published here for the Courts convenience. These corrected numbers differ widely from those included in the exhibits to the Courts July 16, 2013 conference.


WC&C JOBS WITH THREE OR MORE PERSONS Date 6/7/2013 6/8/2013 6/9/2013 6/10/2013 6/11/2013 6/12/2013 6/13/2013 6/14/2013 6/15/2013 6/16/2013 6/17/2013 6/18/2013 6/19/2013 6/20/2013 6/21/2013 6/22/2013 6/23/2013 6/24/2013 6/25/2013 6/26/2013 6/27/2013 6/28/2013 6/29/2013 6/30/2013 7/1/2013 7/2/2013 7/3/2013 7/4/2013 7/5/2013 7/6/2013 7/7/2013 7/8/2013 7/9/2013 7/10/2013 7/11/2013 7/12/2013 Jobs 336 327 323 328 331 331 333 298 293 292 302 289 297 306 311 298 292 307 316 315 302 296 280 278 289 290 289 277 275 270 271 281 284 282 288 294 Reporting Hours 268 263 259 264 266 269 268 255 244 242 253 249 257 257 255 242 241 254 261 261 255 253 239 237 249 252 256 240 241 234 234 242 247 248 254 255 Jobs Not Reported 68 64 64 64 65 62 65 43 49 50 49 40 40 49 56 56 51 53 55 54 47 43 41 41 40 38 33 37 34 36 37 39 37 34 34 39


BCA JOBS WITH THREE OR MORE PERSONS Date 7/1/2013 7/2/2013 7/3/2013 7/4/2013 7/5/2013 7/6/2013 7/7/2013 7/8/2013 7/9/2013 7/10/2013 7/11/2013 7/12/2013 Jobs 111 114 114 114 115 113 112 115 119 121 124 139 Reporting Hours 78 80 75 72 73 69 68 71 77 80 83 88 Jobs Not Reported 33 34 39 42 42 44 44 44 42 41 41 51

The tables below show the total number of all Shop Steward dispatches to WC&C and BCA jobs from the Out of Work List for each of the following dates: WC&C SHOP STEWARDS DISPATCHED Number of Shop Stewards Dispatched 16 7 13 8 7 22 8 16 5 5 13 10 12 11 5 19 0

Date 6/7/2013 6/10/2013 6/11/2013 6/12/2013 6/13/2013 6/14/2013 6/17/2013 6/18/2013 6/19/2013 6/20/2013 6/21/2013 6/24/2013 6/25/2013 6/26/2013 6/27/2013 6/28/2013 6/29/2013


Date 6/30/2013 7/1/2013 7/2/2013 7/3/2013 7/5/2013 7/8/2013 7/9/2013 7/10/2013

Number of Shop Stewards Dispatched 0 0 5 5 0 8 2 10

BCA SHOP STEWARDS DISPATCHED Number of Shop Stewards Dispatched 4 4 3 7 5 5 7

Date 7/1/2013 7/2/2013 7/3/2013 7/5/2013 7/8/2013 7/9/2013 7/10/2013

Pursuant to Article VI, Section 2 of the WC&C CBA, and Article VII, Section 2 of the BCA CBA respectively, one and two-person jobs do not require a Shop Steward referred by the District Council. No Shop Steward completes electronic reporting through the methods discussed above for these jobs. Exhibits 1 (at pp. 1-2) and 2 (at pp. 1-2) respectively show the one and two-person jobs for the WC&C and BCA. There appears to be a large discrepancy between the number of active one and two-person jobs and those reported. While the District Council, as discussed above, has focused its efforts most recently on addressing Shop Steward reporting on jobs with three or more members, the District Council plans to concentrate on the discrepancy in one and two-person reporting within the next several days and submit to the Court an amended report reflecting its findings and improvements. Specifically, the District Council -8-

has assembled a team to individually contact members working at unreported jobs and determine the status of each. Those efforts should yield a significant reduction in the number of active but unreported one and two-person jobs. As discussed in the First Thirty-Day Report at page 7, the Out of Work List office uses new forms, which signatory contractors complete to assist in tracking these jobs. The District Council has ongoing plans to work with the associations and their membership in order to comply with those reporting forms. The District Council maintains open communications with the various employer-members of the WC&C and BCA to ensure that such forms are submitted accurately and promptly. A meeting with WC&C and BCA representatives and contractors to review the staffing and reporting of one and two-person jobs is forthcoming. Finally, it should be noted that the BCA CBA at Article VII, Section 2, provides that, In the event of any violation of the two (2) man rule (i.e., not reporting the job and/or employing more than two (2) Carpenters without a Shop Steward), the contractor will lose the benefit of this provision for the remainder of the term of the contract. The WC&C CBA at Article VI, Section 2(b) includes identical language. The District Council intends to monitor one and two-person reporting closely and enforce this penalty if necessary. Employers that do not report one and two-person jobs will suffer the loss of this arrangement. Anti-Corruption Efforts Continuing to build upon compliance efforts, the IGs Office carries on its efforts to publicize Operation Watchdog, which was described in the First Thirty-Day Report at pages 6-7. In addition to WC&C jobs, which provided for watchdog monitoring beginning on May 18, 2013, the program became fully active for all BCA jobs on July 1, 2013. To recap, Operation Watchdog grants each member the ability to check the hours reported by the Shop Stewards on


his or her jobsite. Rank-and-file members, along with Shop Stewards, continue to view those data by entering the data portal on the District Council websites homepage or through the IGs Office subpage, as detailed in the First Thirty-Day Report. The IGs Office continues to publish and distribute placards with detailed instructions to members about checking their jobsites reported hours. (See Exhibit 4 that is annexed to this Report.) On June 18, 2013, the IGs Office also distributed the Operation Watchdog placard to each of the District Councils constituent local unions and asked that they post them prominently in each local union office and distribute additional copies. (See Exhibit 5 annexed hereto for copies of the IGs memo to each of the local unions president and recording secretary.) The IGs Office also continues to monitor WC&C and now BCA worksites via its Jobsite Integrity Inspectors, who are retired District Council carpenters. The total number of Jobsite Integrity Inspectors presently remains at twelve (12) and a minimum of four (4) per week are on duty monitoring jobsites in the field. The IGs Office anticipates hiring an additional four (4) Inspectors by September 2013. To date, each individual Jobsite Integrity Inspectors has successfully met the job requirements and passed a criminal background screening. As discussed in the First Thirty-Day Report, Job Site Integrity Inspectors monitor one and two-person jobs in order to make sure that contractors are complying with the requirements set forth in the WC&C and BCA CBAs. From June 6, 2013 to July 12, 2013, the Jobsite Integrity Inspectors visited a total of one hundred ninety-six (196) one-person jobsites and one hundred eighty-nine (189) two-person jobsites. During that period, the Jobsite Integrity Inspectors discovered twenty-one (21) CBA violations related to these jobsites. (See Exhibit 6 annexed to this report.) The IGs office has


responded to each of the twenty-one identified violations by filing a grievance under the applicable CBA. Finally, the IGs Office continues to closely monitor its anti-corruption hotline and email address with respect to possible violations of the WC&C or BCA CBAs. To the extent that any complaints have been submitted which could be construed as alleging non-compliance with the electronic reporting system, the IGs Office has followed up on those complaints in the ordinary course of its duties. The District Council remains committed to ensuring the success of and compliance with the electronic job reporting and anti-corruption program under all applicable CBAs. Dated: New York, New York July 19, 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