Operating engineers hold rally to support 'ousted' N.L. union leader

Dozens of crane operators, heavy equipment operators and clerks gathered outside the International Union of Operating Engineers office in Mount Pearl Monday morning to protest the imposition of emergency supervision over Local 904 of the union.

Union members said their local's business manger John Flaherty has been unfairly blamed for long-standing problems.

"We're out here to show support for our business manager and president. He's been removed from office by our international governing body," said Tommy Norman, who helped organize the rally Monday.

"We want to defend our business manager and president who we feel has been doing a damn, fine job."

On March 20 the International Union's General President, James Callahan, posted a letter online explaining the union's decision to remove local autonomy and impose emergency supervision on Local 904, which has about 2,000 members in Newfoundland and Labrador.

"It is clear that serious questions have been raised concerning whether the local has engaged in financial irregularities and malpractice, is beset by factionalism, and failed to abide by the international constitution," wrote Callahan, who is based in Washington, D.C.

Callahan said internal strife has prevented the local from carrying out its duties.

"Political in-fighting between the business manager and the local executive board has created a state of paralysis that has interfered with the normal functioning of the local union," he wrote.

Callahan also said the local has "failed to make the necessary contributions to all persons covered by the general pension plan."

Forensic audit

Norman said the "ousting" of Flaherty has left union's members in this province with many questions.

"We don't feel it's just. We were set to have our annual general meeting two days ago in Gander at which hundreds of people would have been able to attend and receive information.'

Norman said a key part of that information would have been the results of a forensic audit by accountants with Noseworthy Chapman.

"We'd like to see those results. It's unclear if they are planning to share them with us. It's unclear if the audit is still ongoing. Basically we've been left in the dark," he said

Norman said there are problems with the way the union local is being run but he said those problems date back to before Flaherty was elected local business manager in 2015.

Pensions, training funds under scrutiny

He said many union members are concerned about their pensions.

"That's our money. Those are our pensions. You know these are people's lives. Since we have put John Flaherty in power we have only been looking for the status of our accounts here and it seems that everything has been lumped into one big sum. There are policies and procedures that need to be in place but aren't," he said.

In his letter, Callahan said there will be a hearing about the operations of Local 904.

"Should it be determined after the hearing that it is not necessary to continue the supervision, local autonomy will promptly be restored to the local."

Callahan said the Newfoundland and Labrador local provided $500,000 for the college in 2016 "with no record of approval of these large expenditures."

Correction : A previous version of the story stated the union shut down the training college. However, a union representative told CBC News the college has not been shut down, and is operating normally.(Mar 28, 2017 10:13 AM)