Almost $1 Million Unaccounted For at Local 308

LU 308 Eric Basir and IVP John Costa

The following letter was emailed by me to International ATU President, John Costa on April 7, 2025. I encourage the membership to scrutinize the revised audit reports and use their democratic will to hold our Local 308 elected leaders accountable.

 
Greetings Brother International President Costa:

At today's Executive Board Meeting (April 2025), the following disturbing events occurred:
  1. We were presented with audit reports (2023 & 2024) that were already approved by us in the March Executive Board meeting. It was also presented to members in the March Membership meeting. I was present for both.

  2. Vice President Weems said it was the same report. It was not the same report because that one did not include TWO written statements about the reports. These statements contained information that reveals inadequacies regarding the audits. The auditor (a company called Legacy) seemed to downplay my concerns. The same lack of seriousness was exhibited by other officers and board members.

  3. The statements allege that we, the Executive Board, chose to forgo the auditors' recommendation that we obtain assistance to maintain the books. This is false. I have never, ever been presented with such a motion. No such motion exists in any of my records since I was sworn in. I keep detailed notes.

  4. The audit report presented in March had a payroll discrepancy of around $200,000. I cannot remember if it was for 2023 or 2024. We are forced to turn in photo ID to view the audit reports and we cannot take them home. So we are rushed. When I enquired about it, an agitated Secretary-Treasurer and President told me it was for "our attorney" and office manager. I asked for the breakdown of how much was paid to each and was refused.

  5. The audit report presented this month (April) no longer had a $200,000 payroll discrepancy. It had an approximately $500,000 discrepancy for 2024 and an approximate $450,000 discrepancy for 2023. For both years, it is listed as "Other" payroll. When I asked the auditor for a breakdown of who was paid, he refused to provide it and claimed that is not his job. He said that the management [of the union] was responsible for providing it. I asked him how much we pay him to do the job and was shouted down by the President and her loyalists. They refused to tell me who was paid from those amounts.

  6. This [revised] audit report and statements were moved and approved by the Board. I refused to go along.

  7. The Secretary-Treasurer—a known hot-head who literally throws a tantrum with every question I ask—was not present during this unusual incident.
I cannot emphasize how shocked I was to discover this problem. Since 2018, I have diligently examined Local 308 audit reports. Never, ever, have I seen such a gross lack of accountability. Never have I seen such a huge payroll nor discrepancy ($1.3 million in 2023 and $1.4 million in 2024). Never were statements attached that explained away errors and questionable accounting. It was absolutely overwhelming.

The President nor the Executive Board chooses to hold themselves accountable. They violently oppose scrutiny. For example, one of the Board Members, Bryan Spencer threatened to sexually assault me for defending members who he sides with management to punish.

I implore you to investigate the corruption and malfeasance at Local 308. There is only so much one Executive Board member can do to organize a demoralized and skeptical membership.

 

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