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. 

Below is a response via email that I received from King Costa on May 5, 2025:

 

Read my subsequent reply 6 hours later:

Thank you for the response Brother International President Costa:

Unfortunately, you and I are going to disagree on everything you wrote. 

I do not think you understood when I described the discrepancy in the audit reports. It's hard to explain because they don't let us take a copy home. We are treated like criminals and must turn in an identification in order to look at it. I raise it all the time and am met with great hostility. 

The discrepancy is in addition to the officer salaries. It was labeled as "Administrative Other." I have never seen such a line item before. The auditor did not want to answer my question about the details. And President Pennie was happy to oblige his refusal. Just today at our May Executive Board meeting, I asked to see the payroll for this month. I was never shown it. We were lectured about getting facts. I am trying to get facts but I keep getting proverbial brick and bats!

The Tentative Agreement Paid Sick Leave Waiver was for a different law in the 2020 Agreement (called 1-24). Also, the State of Illinois and Cook County Sick Leave laws had not yet been codified (they were in force for the 2024 Extension). The difference is in fact substantial. You write about "Paid Leave" provisions. That doesn't exist in our CBA. It's myth. A fantasy. A pipe-dream that is sending many of us into poverty!

There are ZERO provisions for Paid Leave or Paid Sick Leave. Our Vice President, Brother Mark Weems, says over and over that I am a liar and a clown. Look for yourself. You and I are being lied to by our Local president. You and I are being clowned by the "union" attorney that wrote Article 15.13 (The Tentative Agreement (FOIA) you attached was never ever shared with us for the vote. I retrieved that and shared it with members to the dismay of our presidents who laughably call me a lying clown). 

We only have Short Term Disability—and we are punished when we use it. It's very limited and requires a keen knowledge of byzantine processes. The laws that were waived protect us from punishment. I have attached our employer's Administrative Policies for Bargained and Non-Bargained for workers. You will see that even they acknowledge we have no such thing as Paid Leave. But they make it very clear that it exists for Non-union workers.

Regarding the threat of sexual assault from the other Board Member, President Pennie refuses to mediate. She encourages it! Laughs along too. She even made a sexual joke about my wife—who has nothing to do with anything in our union or at my job. I never talk about any of their families or make comments about their persons or appearance. I only attack their philosophy. But when I speak up on issues related to our working conditions and the cruel mismanagers, it's always a problem.

I wish you would stop defending the gross misconduct at Local 308. It's hurting the integrity of the ATU. It's always discouraging to read your letters. Members are withholding dues and becoming very dissatisfied. It's very sad. Our union is more like an extension of CTA management and our presidents even work with them to punish me and other outspoken members.

I am a canary in the coalmine. Why blow me off? Take advantage of the information from a fearless member who speaks straight words. It can only make the ATU stronger.

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