Local 39000 Update

July 31, 2017

LM-2 Filed

Last week we filed our LM-2 with the Department of Labor, it was delayed by our efforts to find all the funds of the Local, the form was signed by the CWA President and CWA Secretary-Treasurer due to the temporary administration.  You can see the document by going to: https://olms.dol-esa.gov/query/getOrgQry.do. Our file number is: 545-412 which goes at the very top of the page Enter File Number and then click "Submit"

If you then click on "Affiliation/Organization Name" it will show you the 2016 form we filed last week, and the 2015 form filed last August by the former officers.

2016 Audit Status

Our audit of 2016 is moving along, and will wrap up with the filing of the 990 in mid-August.  We had problems with the previous accountants not assisting our CPA who is a specialist in unions and the accounting methods needed for full government compliance.  We will also file our California tax forms at the same time. 

Situations that we have found: the Local spent hundreds of thousands more than it took in in 2016.  The outstanding per capita amounts of $82,606 had not been held aside while disputing the rates to be paid.  In addition to 3 professional staff and 2 clerical employees for the year, the Local spent more than $154,000 for organizational leave for officers to do union work during the year.  The annual conference at the Millennium Hotel lost more than $50,000 in the fall of 2016. We are committed to not lose money on this year’s event.

We have also identified problems with the record keeping process (copies of receipts for expenses were not kept in the Local’s offices) and failure to categorize expenses in the ways needed for union accounting.  We have done what we can with the data we have for 2016, and are setting up processes to be in full compliance for 2017.  We also identified the problem with the Local using the wrong Employer Identification Number on tax filings and with ADP which handles paying wages.  When the Local approved the Local By-Laws and stopped being an organizing local, in early 2015, a new Federal EIN number was issued – but was not changed in all the necessary records.  We will have to re-file a number of tax filings.

Lobbyist 

The Local had been spending $42,000 per year on Hernandez Strategies for lobbying services.  Unfortunately, the paperwork was not in order, a contract had not been signed (they were working month to month) and reports were not in our records as to what work they were doing for the Local. 

The CWA employs lobbyists, but do not in a vacuum.  The program that they use is to have active members in each work site (or at least city) who can engage members with literature to make calls or write letters (and emails) to their legislative representatives.  We sent Anabelle Garay and Kathleen Sinclair to the “women only” Legislative Political Action Team training in late May.  The idea is to incorporate the CWA system into a more effective system of people power into one hired lobbyist for Local 39000.

The emails insisting upon re-hiring the lobbyist have been heard, and the evaluation of resources continues on a regular basis.  But the Local does not have money to just hire services, we need to incorporate the best practices and most effective use of funds and resources.  There will be more to come on this shortly.

Annual Conference 2017

As the event rotates between Southern and Northern California, it will be held in Oakland, at the Oakland Airport Hilton on October 6-9. Registration is now open – and the early bird rate is available!  We hope that members will register and participate in this year’s event.

Click here to register. 

If you would like to volunteer (and get a discount at registration), please contact Eva Vargas at  [email protected]

Bargaining Region 1

Bargaining began this morning at the Stanley Mosk Courthouse for a new contract with Region 1.  The elected team is:  Michael Ferreira, Dan Kaufman, Doris Vick (who comes from Santa Barbara/San Luis Obispo), Robert Guerrero, and Pedro Ramirez.  Alternate Kathleen Sinclair fills in when a member of the Committee is unavailable (as Mr. Ferreira is this week), this helps our continuity.   Our lawyer is Caren Sencer from the Rosenfeld law firm.  Here is her bio: http://unioncounsel.net/attorneys/C_Sencer.html  She is a partner in the firm, and stepped in to replace Christine Alvisurez who had been working with the team. Ms. Sencer is even more experienced.

The proposals based upon the surveys from the membership and the caucuses that the committee did both in person and via video conference, were submitted to the TNG-CWA Bargaining Department and all were approved last week for submission to the employer.  This is an important step in compliance with the full TNG Collective Bargaining Program.   The proposals will have to be approved before a package is voted upon by the membership (but first bargaining and mobilization!).

TNG Conference and CWA Convention 

These meetings will take place at the end of this week and early next week in Pittsburgh, PA. 

Delegate Juan Ramirez will be asked to provide an update to the membership upon his return.

Conclusion

Last week we submitted our per capita information for June earnings, meaning that we are back on the proper reporting schedule.  We paid the May per capita amount of $16, 460 in the same days.  By the time we file the July earnings in mid-August, we will be totally current and back to filing the payment with the information.  Once all the back amounts are paid, there will be a lot less pressure on the Local’s budget. 

Sincerely in Solidarity,

Carrie Biggs-Adams

Temporary Administrator