Five
former union members filed a whistleblower lawsuit Tuesday against the
United Brotherhood of Carpenters, the Eastern Atlantic States Regional
Council of Carpenters and its executive secretary, claiming they were
ousted after they tried to root out corruption within the politically
powerful labor organization.
Among the five were Assemblyman Anthony Verrelli,
D-Mercer, a union leader who had been closely associated with John
Ballantyne, the former executive secretary-treasurer of the Northeast
Regional Council of Carpenters. Ballantyne was ousted himself in what he
claimed was an act of retribution over his own push back against the
union’s leadership.
According
to the complaint filed Tuesday in Superior Court in Essex County, even
before they were fired, Verrelli and others said they had their budgets
cut and were intentionally harassed. Some were demoted and received pay
cuts. Others were penalized by being assigned distant work locations
that added hours to their daily commute.
Their
attorney, Nancy Erika Smith of Smith Mullin in Montclair, said all were
fired without warning by email one afternoon in March, calling it
“textbook retaliation.” Verrelli, who was elected president of
Carpenters Local 254 in 2017, was removed by union officials in August.
“They purged anyone affiliated with John Ballantyne,” said Smith.
Union officials denied there was any retaliation.
“It is unfortunate that former employees would make such accusations about our union,” said Frank Mahoney, a spokesman for the Eastern Atlantic States Regional Council of Carpenters.
“In the midst of a global pandemic, our council had to make the tough
and unfortunate decisions many other unions, businesses, and
organizations had to make regarding staffing levels.”
Mahoney
said the council’s staffing levels decreased in every state it has
geographic jurisdiction over, including New Jersey, Pennsylvania,
Delaware, Maryland, Virginia, West Virginia, and the District of
Columbia.
“Our goal is to always make decisions that are in the best interest of our hard-working members in the field,” he said.
The
influential trade union has been the focus of mounting questions since
Ballantyne, now chairman of the New Jersey Sports and Exposition
Authority, charged in an October 2018 lawsuit
that he had been fired from his high-profile job after raising
questions about then-Carpenters Funds administrator George Laufenberg.
Not long after, Laufenberg — a former commissioner on the Port Authority of New York and New Jersey — was hit with a five-count federal indictment mirroring
many of the charges in Ballantyne’s complaint. He was accused of
embezzlement in connection with $1.5 million in pension funds, deferred
compensation payments, excess annuity fund contributions, as well as
conspiracy to embezzle with a “low-show” employee, and making a false
statement in an annual financial report.
Laufenberg earned an annual salary of about $300,000.
The criminal case has yet to come to trial.
Late
last year, meanwhile, a federal grand jury in New Jersey sent out new
subpoenas to entities tied to the United Brotherhood of Carpenters and
Joiners of America, according to an internal memo, and were served on
the union, its pension fund, its pharmacy benefit manager, a union
accounting firm and a construction company.
Ballantyne’s own civil lawsuit has since been settled, its terms undisclosed.
In the complaint filed Tuesday, Verrelli said he had been called a “traitor to the organization.”
In
addition to Verrelli, others named as plaintiffs in the lawsuit
included Justin Ballantyne, the son of John Ballantyne and a union
employee for more than 15 years; Alex Lopez, who voted to approve an
internal investigation into Laufenberg’s activities; Vanessa Salazar,
who sought to increase the recruitment and retention of people of color
and women, and Susan Schultz, who chaired a committee to create a
network of active female union carpenters.
Smith
said all five were long-term employees who had been mentored by
Ballantyne, and were fired as other recently hired employees kept their
jobs.
“It’s all pretty brazen,” she said.
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