Category Archives: Labor

Former union leader loses bid to blame union for his negligence

Gary Rodrigues, the former United Public Workers who served over five years in prison for defrauding his union, lost his bid to force UPW to pay an earlier $850,000 judgement again him.

Rodrigues was represented in this case by attorneys Eric Seitz and Della Au Belatti, a state representative who chairs the House Health Committee.

The case began with a series of loans Rodrigues had approved while serving as the administrator of the union’s Mutual Aid Fund, a benefit trust funded entirely by UPW members and their families. The Mutual Aid Fund, or MAF, is covered by the federal Employee Retirement Income Security Act (ERISA).

In 1998, Rodrigues, as the MAF’s plan administrator, made six loans totaling $1.1 million to Best Rescue Systems, Inc. (Best Rescue) a startup company located in Florida. Best Rescue never repaid the loans and in October 2003, the MAF filed a complaint in the United States District Court for the District of Hawaii (federal district court) alleging, inter alia, that Rodrigues was negligent in making the loans and had thus breached his fiduciary duties as plan administrator to the MAF.

The court ruled Rodrigues had been negligent in approving all but the first loan, and ordered him to replay $850,000.

Rodrigues then filed suit in state court, arguing that he had been acting solely in his capacity as a union official, and that the union was liable for his actions.

His legal argument took a strange twist when he argued that the union was at fault because “UPW negligently supervised him in his role as an ERISA fiduciary and thus, UPW, not he, should be held liable for his breach of fiduciary duties under ERISA.”

This week, the Hawaii Supreme Court ruled against Rodrigues, crushing whatever hope he had of recovering the $850,000 judgement as well as a decade of attorneys fees and court costs.

Read the Hawaii Supreme Court decision

Read an earlier entry explaining more about the case.

Review my series of investigative stories on the Rodrigues-UPW scandal.

Teachers union election turmoil bad for HSTA, bad for labor

The Hawaii State Teachers Association is melting down as it’s board of directors trumps up vague reasons to reject the results of its statewide elections. And there’s a rotten smell emanating from the meltdown.

A slate of activist teachers challenged the union’s current leadership this year, attempting to build on their success in rallying teachers for better wages and working conditions.

They won, by all accounts. But the union’s board has refused to certify the results and is attempting to replay the election.

It seems a pretty desperate strategy to avoid what the current leadership obviously views as a surprising and unwanted result.

But elections are like that sometimes.

Corey Rosenlee, who reportedly topped other candidates for president in the balloting, rejected the HSTA’s refusal to certify the election results.

According to Hawaii News Now:

He claimed the HSTA board rejected the results because they didn’t like that he and other dissidents won.

“There were no complaints about the election until after they saw the results. You should have integrity that if you want to complain about an election, you should say those complaints before you see the results,” said Rosenlee, who’s been on the union’s board for one year.

Lewis said the HSTA board was concerned because some teachers reported they didn’t get ballots on time. Some of them failed to get email links to vote electronically and others didn’t get paper ballots in time to vote, Lewis said.

She could not quantify how many teachers were disenfranchised. Approximately 3,300 teachers voted in this election, more than the number of teachers who voted in the last statewide union election in 2012.

And the same HNN story reported that more ballots were cast in this election than in the prior HSTA election.

Approximately 3,300 teachers voted in this election, more than the number of teachers who voted in the last statewide union election in 2012.

That certainly seems to undercut the leadership’s claim that “defects” in the election process prevented teachers from voting.

Are unsubstantiated claims of unspecified “missing” ballots a reason to reject the election results?

It certainly doesn’t appear so.

I spotted this campaign advertisement that the slate of Change candidates posted at the beginning of the election process.

It urged supporters to watch for mailed and emailed ballots, check email spam filters if they didn’t see their digital ballot, and to call the HSTA office if necessary.

And they won

Missing, misplaced, or previously ignored ballots and errant spam filters are facts of life, and the challengers urged supporters to proactively address any problems.

Rosenlee noted that votes were cast over a two week period by mail or electronically, and that there was a period for protest after balloting was closed. He said there were few complaints until the votes were counted and it was clear that the reform slate had swept the union’s top positions.

Thanks to progressive activist Bart Dame for his link to an article from Labor Notes (“Stolen Election? Reformers in Hawaii Fight to Take Office“), which explains some of the background of this election.

Dame has commented extensively via Facebook, noting that HSTA’s actions damage the public’s view of all organized labor.

HSTA has just done incredible damage, not only to THEIR reputation, but that of unions generally.

They are giving ammunition to the enemies of unions as much as if they made a contribution to the Right to Work organization.

As someone wrote int hte comments, the should plead temporary insanity, apologize and confirm the new, duly elected leadership.

The other unions should apply pressure, perhaps privately, but firmly to the leadership to give up. The threat should be that they will publicly criticize the theft of the election if the incumbent HSTA leadership does not go along peacefully.

Seriously, I am stunned. You run an election. If you lose, you recognize the will of the voters. What is wrong with these people?

I couldn’t say it any better.

A mid-May surprise in Cripple Creek

We’re visiting good friends and former neighbors in Colorado Springs for a few days, and took a day trip up to the historic mining towns of Victor and Cripple Creek.

There’s a family connection here. My mother’s uncle, James McPherson–who was married to my grandmother’s sister–was a miner in Cripple Creek and served as a union organizer for the Western Federation of Miners during the labor wars around the turn of the 20th century.

James McPherson and Helen Lind Uncle Mac, as we called him, was still alive when Meda and I got married and returned to Hawaii for graduate school. He was around 90, living along in his Kaimuki home. And I took these photos when we celebrated a birthday, it was something around his 91st year or close to it.

Of course, pinning that down was difficult because he lied about his age to get into the Army, and the different birthdates carried through his long life.

That was just one layer of the mystery surrounding his life that we’re trying to pierce. He is not listed in the roster of miners, but there are a couple of factors that could explain it. First, during the labor wars, there were several fires in which official records were destroyed.

And then, according to my sister, Bonnie:

We don’t know his real given name or when he stopped using his real surname. Any James or John Clingan in any Crippke Credk registries? He was born in June – either 1878 or 1882. He was a known union organizer in Cripple Creek and known to have been close to the Stratton brothers, mine owners. Also a skilled gambler at the card tables.

He ran away from his Pennsylvania home as a young teenager, made his way across the counry, rode the rails with other “blanketstiffs”, as he called them, worked as a laborer in the mines in several western states, signed up for stint in the Army during the Spanish-American War, later in Hawaii worked for Mr. Dillingham’s railroad, among other jobs.

I know Bonnie has more files which might help put more of the pieces together. After visiting Cripple Creek, we may be more motivated.

We did get a surprise in Cripple Creek. At least for folks from Hawaii, this was a surprise. Snow. In May.

After drafting this entry, I found this short piece that Bonnie posted on Ancestry.com. It just gets weirder and weirder.

Although most of the available records give his birthdate as June 1882 and his name as James F. McPherson, Mac confided to his son and a niece that he was actually four years older. His wife, he said, was the only person he ever told what happened during those missing four years of his life. He gave the younger birth date when he enlisted in the US Army in 1907, and used it relatively consistently in official records after that. The 1930 census and the age given on his youngest son’s birth certificate are the exceptions. There are also some photographs taken “at Uncle Mac’s 90th birthday”. If he was really born in 1882, his death in 1971 would have been before his 90th birthday.

Further, Mac told his oldest son, his birth name was not McPherson. He was born a Clingan, son of Thomas H. Clingan and Mary Elizabeth Almost. While he did not give her his birth surname, he did name his siblings for his niece: Amidee, Oscar, Adrian, Bessie (who married a Jollife and worked in the glass factories of West Virginia), and Bertha.

Mac adopted the name McPherson while in Colorado. There was still considerable prejudice in the mining camps, the story says, so Mac dropped his Clingan name and took on a good Scottish name instead.

HSTA and DOE agree on TRO blocking latest ethics ruling

The Hawaii Labor Relations Board has approved an agreement between the Department of Education and the Hawaii State Teachers Association to defer enforcement of a recent ethics ruling barring candidates for union office from distributing their campaign materials through school mailboxes, according to the attorney representing the union.

The labor board approved a stipulated temporary restraining order that permits teacher candidates to use the mailboxes in schools, according to former Congresswoman Colleen Hanabusa, who is representing the union before the labor board. The TRO means that the department will revert to the past practice dating back more than four decades. The procedure has been for the union to submit a list of qualified candidates in its internal elections, who are then allowed to distribute campaign materials.

That abruptly ended in mid-March when ethics commission staff advised the department that it now considers access to school mailboxes “inappropriate.”

The staff opinion was based on a new interpretation of an ethics provision which prohibits any employee from using their official position to grant or obtain an “unwarranted” advantage or privilege. The law specifically says that use of state time, equipment or facilities for “private business purposes” is not allowed.

The new interpretation and advice to the DOE was explained to commission members at their March 18 meeting. However, a union request to defer enforcement until after the current election is over in late April could not be acted on because it was received too late to be included on the meeting agenda.

The commission did not vote on a suggestion that a special meeting be held to review the staff interpretation.

HSTA responded legally on two fronts.

The union went to court on Monday, March 23, seeking a TRO to block the ethics ruling. As of Friday afternoon, the union and the state had been unable to agree on a way to settle the dispute, court records show.

In a separate legal action, HSTA filed a prohibited practice complaint against the Department of Education with the Hawaii Labor Relations Board.

Hanabusa said in an email on Saturday that the labor board had approved a stipulation or agreement between the parties for a TRO, which means union candidates can distribute their campaign materials to other teachers through school mailboxes, at least for now.

The State Ethics Commission was not a named party in either legal, and it is not known how the agency will respond to this bypassing of its authority over ethics issues.

See:

Hawaii Monitor: Ethics Commission Ruling Draws Teachers’ Union Lawsuit,” Civil Beat.

State Ethics ruling triggers two-pronged HSTA legal action,” ilind.net

Is union candidate access to school mailboxes an “unwarranted” privilege?“, ilind.net