IAFF Board Meeting #180, 2/11 · PDF fileDaniel Martinez, President, Local ... prevented...

IAFF Board Meeting #180, 2/11

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MEMBERS AND GUESTS ................................................................................................................................ 4

WELCOME ADDRESS ..................................................................................................................................... 4

MOMENT OF SILENCE ................................................................................................................................... 4

ADOPTION OF MINUTES ............................................................................................................................... 4

PER CAPITA VOTING ALLOCATIONS .............................................................................................................. 5

GENERAL PRESIDENT’S REPORT .................................................................................................................... 5

GENERAL SECRETARY-TREASURER’S REPORT ............................................................................................... 9

Fund Balances ......................................................................................................................................... 11

Investment Report .................................................................................................................................. 12

Voluntary Forfeiture of Charter .............................................................................................................. 12

Involuntary Forfeiture of Charter ........................................................................................................... 12

Locals Placed on Hold ............................................................................................................................. 12

Mergers ................................................................................................................................................... 13

Income Status Report ............................................................................................................................. 13

Financial and Membership Reports ........................................................................................................ 14

Technical Assistance and First Contract Policies ..................................................................................... 14

New Locals .............................................................................................................................................. 15

Reinstatement of Old Local Number ...................................................................................................... 15

Royalty Checks ........................................................................................................................................ 15

GENERAL COUNSEL’S REPORT .................................................................................................................... 16

LEGAL COUNSEL’S REPORT ......................................................................................................................... 29

DEPARTMENT REPORTS .............................................................................................................................. 32

COMMITTEE REPORTS ................................................................................................................................ 32

Budget and Finance Committee Report ................................................................................................. 32

Canadian Affairs Committee Report ....................................................................................................... 33

Education and Training Committee Report ............................................................................................ 34

Emergency Disputes Fund Committee Report ........................................................................................ 34

Employee Benefits and Human Resources Committee Report .............................................................. 38

Financial Corporation Report .................................................................................................................. 39

Government and Political Affairs Committee Report ............................................................................. 40

Human Relations Committee Report ...................................................................................................... 41

Information Technology Committee Report ........................................................................................... 42

Organizing and Field Services Committee Report .................................................................................. 44

Pension Resources Committee ............................................................................................................... 44

Pre-Trial Review Board ............................................................................................................................ 45


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John P. Redmond Trustees and Emergency Medical Services Committee Report ................................. 45

Scholarship Fund Trustee’s Report ......................................................................................................... 46

Staff and Employee Pension Trustees ..................................................................................................... 46

TRUSTEES’ REPORT: .................................................................................................................................... 47

AUDIT REPORT ............................................................................................................................................ 48

OLD BUSINESS ............................................................................................................................................. 48

NEW BUSINESS ............................................................................................................................................ 49

DISTRICT REPORTS ...................................................................................................................................... 49

GOOD & WELFARE ...................................................................................................................................... 51


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Report No. 180

Summary of International Association of Fire Fighters

Executive Board Meeting Held at

Westin Diplomat Hotel Hollywood, Florida

February 24-25, 2011 The following members of the IAFF Executive Board were present during the February 24-25, 2011 meeting:

Harold Schaitberger, General President Thomas H. Miller, General Secretary-Treasurer

Kevin Gallagher, 1st District Vice President Mark S. Woolbright, 2nd District Vice President

Michael Mullane, 3rd District Vice President William Taylor, 4th District Vice President Joseph Conway, 5th District Vice President

Lorne West, 6th District Vice President Ricky J. Walsh, 7th District Vice President Paul Hufnagel, 8th District Vice President

Randall Atkinson, Sr., 9th District Vice President James T. Ferguson, 10th District Vice President

Roy L. McGhee, 11th District Vice President Larry F. Osborne, 12th District Vice President Bruce Carpenter, 13th District Vice President

Danny Todd, 14th District Vice President James A. Fennell, 15th District Vice President James B. Johnson, 16th District Vice President

Also present at the meeting were: Trustees Mark Ouellette, Anthony Mejia, and Alex Forrest, General Counsel Thomas Woodley; Legal Counsel Baldwin Robertson; Peter Gorman, Chief of Staff to the General President; Jim Lee, Administrative Assistant to the General Secretary-Treasurer; Don Copley, Assistant to the General Secretary-Treasurer, Budget and Finance; Richard Duffy, Assistant to the General President, Health, Safety and Medicine; Scott Marks, Assistant to the General President Canadian Operations; Lori Moore-Merrell, Assistant to the General President, Technical Assistance and Information Resources; Patrick Morrison, Assistant to the General President, Education and Training; Jeff Zack, Assistant to the General President, IT Systems and Alumni; Carrie Tucker, IAFF-Financial Corporation; Dawn Iacino, Director, Meeting/Conference Planning; Dave Bernard, Director, Network Administration, Teresa Valenzuela and Mary Travers, General President’s office; Cynthia Rezetko, General Secretary-Treasurer’s office; and Teri Byrnes, General Secretary-Treasurer’s office recording and reporting the minutes of the meeting.


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MEMBERS AND GUESTS Daniel Martinez, President, Local 1375, Hollywood, Florida Mary Beth Braitman, Ice Miller Larry Stokes, Stokes & Company

WELCOME ADDRESS Daniel Martinez, President, Local 1375, Hollywood, Florida, welcomed the General President, General Secretary-Treasurer, and the District Vice Presidents to sunny Florida but warned of the storm on the horizon. The storm being the widespread attacks on collective bargaining rights, fire fighter pensions, and that the issues in Florida are mirrored in the issues affecting other states. Mr. Martinez thanked the Board for the work they do on behalf of his members and the rest of the Florida fire fighters.

MOMENT OF SILENCE General President Schaitberger requested the Board to stand in a moment of silence in memory of those departed brothers and sisters who died in the line of duty. This list also includes those deaths that have recently been determined to be job related:

Name Local # City/State Died Age Theodore R. Mathews 3757 Corona, CA 12/2/82 Victor L. Husband 1298 Powell River, BC 6/7/90 George More 953 Kelowna, BC 4/20/97 62 Donald L. Burton 522 Sacramento, CA 6/5/05 62 Eddie Dugas, Jr. 619 Lafayette, LA 12/13/08 51 Dennis McFarland 460 Brantford, ON 9/17/09 62 Nathaniel O. Starnes, Sr. 140 Nashville, TN 5/12/10 52 Daniel Chichester 786 Stamford, CT 8/23/10 68 Robert G. Tahbonemah 1882 Lawton, OK 11/5/10 32 Chance H. Zobel 793 Columbia, SC 11/13/10 23 Henry J. Helmers 140 Nashville, TN 12/7/10 56 William A. Brady, Jr. 68 Norfolk, VA 12/14/10 47 Chad L. Null 1438 Sullivan, IN 12/16/10 33 Terrence P. Gee 522 Sacramento, CA 12/20/10 54 Edward J. Stringer, Sr. 2 Chicago, IL 12/22/10 47 Corey D. Ankum 2 Chicago, IL 12/22/10 34 Matthew E. Durham 2950 Woodinville, WA 12/30/10 45 Scott R. Carnevale 689 Alameda, CA 1/3/11 42 Michael G. Urban 1652 Framingham, MA 1/7/11 57 Richard E. Paul 42 Kansas City, MO 1/7/11 54 Steven F. Auch 416 Indianapolis, IN 2/1/11 56

ADOPTION OF MINUTES Motion was made by General Secretary-Treasurer Miller that the November 2010 Executive Board minutes be adopted. Motion was Seconded and Adopted unanimously.


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PER CAPITA VOTING ALLOCATIONS

1st District 18,840 2nd District 11,170 3rd District 20,875 4th District 24,851 5th District 6,156 6th District 8,391 7th District 10,339 8th District 40,285 9th District 11,238 10th District 42,253 11th District 23,898 12th District 30,788 13th District 12,384 14th District 15,243 15th District 1,261 16th District 3,668 TOTAL 281,640

Majority 140,821 3/5 168,984 2/3 187,760 3/4 211,230

GENERAL PRESIDENT’S REPORT General President Schaitberger started off by noting that he has never been more proud of our union, Vice President Conway, and Mahlon Mitchell, President of Wisconsin Professional Fire Fighters for their activities in Wisconsin. They are among so many doing so much to give the rally in Wisconsin incredible energy and hope. General President Schaitberger yielded the floor to Vice President Conway to provide an overview of the events in Wisconsin. Vice President Conway reported on the background of the budget fight in Wisconsin as well as an overview of the rally activities and strategic plans for the coming days and weeks ahead. Danny Todd, 14th District Vice President, on behalf of the Executive Board expressed admiration for Vice President Conway, the Professional Fire Fighters of Wisconsin, and all IAFF members in the state of Wisconsin for their work and drawing a line in the sand in this fight. The following is an overview of ongoing major activities and projects since the November 2010 Executive Board meeting. Politics and Legislation: In the months since our last board meeting, our legislative and political operations have been consumed with continual activity. While the 111th Congress began with great expectations, and despite the potential for legislative success, partisan rancor and a series of mishaps prevented several pieces of important legislation from passing, including our collective bargaining bill.


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The House of Representatives passed the collective bargaining bill on two separate occasions, but the Senate was brought to a standstill by a record 87 filibusters. So, in spite of having six GOP Senate co-sponsors for the bill, Republican leadership made it clear that they would oppose the legislation with every parliamentary tool and delaying tactic they could employ. Still, there was a significant victory on December 22 when Congress passed the James Zadroga 9/11 Health and Compensation Act, H.R. 847. Passage of the Zadroga Act was a profound achievement by Congress in the final hours of the 111th session. This long-awaited approval from Congress will ensure that there is funding for existing medical monitoring and treatment programs for people at the World Trade Center or involved with the cleanup at Ground Zero who have suffered illnesses following September 11, 2001. As we’ve already seen, the results of the November 2 elections are having a substantial impact for the IAFF on the federal, state and local levels. We face many challenges in the 112th Congress, but as in the past, we will find issues in which we can craft bi-partisan support and move an agenda forward benefiting our membership. Just this month, the IAFF beat long odds and won passage of two significant amendments to protect fire fighters’ jobs nationwide. On February 16 we scored a significant victory when the U.S. House of Representatives voted 318-113 to reject massive cuts to fire fighter grants. Under H.R. 1 -- House legislation to continue funding the federal government – the Staffing for Adequate Fire and Emergency Response (SAFER) grant program would have been completely eliminated, and the Assistance to Firefighters (FIRE Act) grants would have been cut by more than 20 percent. But Representative Bill Pascrell (D-NJ) offered an amendment to restore funding for the two programs and the amendment passed with a large bipartisan majority. The very next day, the U.S. House of Representatives voted to extend the SAFER waivers, which have helped hundreds of communities avoid fire fighter layoffs and bring laid-off fire fighters back to work. The SAFER waivers, which allow fire departments to use grant funds to rehire or retain personnel, expired in Fiscal Year 2010. Representative David Price (D-NC) offered an amendment to H.R. 1, House legislation to continue funding the federal government, to extend the waivers for Fiscal Year 2011. The amendment passed on February 16 by a vote of 267-159. We have initiated a comprehensive review of the impact of the November races at all levels of government, including analyses of gubernatorial races, changes in state legislative majorities, summaries of our members fared in both pro-fire fighter and anti-fire fighter/public employee initiatives and referendums and other issues. This IAFF will find a way to succeed in the new political climate. For the first time in its 32-year history, FIREPAC has topped the $5 million mark in fundraising during an election cycle (2009-2010). Despite tough economic times, IAFF members around the country stepped up to help make a difference. And, FIREPAC continues to rank as one of the top PACs in the country. In addition, FIREPAC once again was the most bipartisan PAC within labor, contributing the largest percentage of its PAC dollars to Republican candidates. We also announced a new FIREPAC donor level – the Chairman’s Council – for members who contribute $750 or more per calendar year. In Canada, we continue to work to advance the issues on the Canadian legislative agenda, including the need to establish a national Public Safety Officer Compensation (PSOC) benefit and a national office for fire service statistics, and to extend funding for pandemic planning. These issues will be the focus of the Canadian Legislative Conference in April. Planning for the proposed Canadian Political Training Academy is continuing in greater detail, with potential dates for the three-day program in late April and early June in Ottawa.


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Fighting Back Campaign: We are fighting back against the multiple attacks on our members on multiple issues with an aggressive campaign that includes print, broadcast and social media to deliver our message that fire fighters are not to blame for the nation’s financial straits. These efforts include full-page ads in USA Today and Politico, editorials, videos and media interviews. I was a guest on the nationally syndicated Ed Show on the radio and appeared live on MSNBC’s Ed Show to let the nation know that America’s fire fighters and paramedics are not the problem and to expose those with politically motivated agendas and who use our economic shortfalls to diminish everything we’ve fought for over the decades. We’ve also developed a new web site – IAFF Fighting Back (www.IAFFFightingback.com) – as part of the multi-faceted public relations and media campaign to respond to attacks on pensions, pay, collective bargaining and other benefits, and to let the media and the public know the truth. This site features all of the campaign materials, including print ads, videos, op-eds, other news related to the effort and information and tools affiliates can use for local media and elected officials. Another component of the campaign is to leverage our social networks (Facebook, Twitter, Frontline Blog) to spread our message and help affiliates. These efforts have been widely received and successful. And, as you know, we have established a new Pension Resources Department to assist affiliates with pension-specific issues. This new department is also establishing a pension plan database, compiling a list of pension experts – such as actuaries, attorneys, consultants and public sector advocates – and has developed a pension resources web site to help affiliates fight back. The challenges we face are serious, as we saw just last week in Madison, Wisconsin, when public employees and their supporters crowded the State Capitol, city streets and plazas to protest Governor Scott Walker’s assault on labor and attempts to repeal collective bargaining rights under the guise of solving the state’s budget woes. I flew to Madison to help our brothers and sisters in the fight. That such an assault and counter-protest could even occur in a pro-labor stronghold like Madison is a clear indication that the coast-to-coast attacks on our members is real. The Madison demonstrations have put the spotlight on the growing number of vicious anti-union budget battles unfolding in other states. We are taking a serious and comprehensive approach to protect our members. This is a major push-back effort to respond to the attacks by politicians and the media. We will fight these unfair attacks wherever they happen. Motion was made to fund the “Fighting Back” plan and supplemental budget. Motion was seconded and passed unanimously. IAFF Development Department: As part of an internal restructuring, we have established a Development Department. This new department is a reorganization of existing charitable entities that has become part of the Education, Training and Human Relations Division. The Development Department oversees the IAFF grants operation and the new IAFF Foundation – which combines all current IAFF charities under one umbrella. This includes the Burn Foundation; Scholarship Fund; Fallen Fire Fighter Memorial Fund; Fire Fighter Reward Fund; John P. Redmond Fund and the Disaster Relief Fund. Affiliate Leadership Training Summit: We held our most successful Affiliate Leadership Training Summit (ALTS) to date, with more than 1,100 paid registrants. We also partnered once again with the International Association of Fire Chiefs (IAFC) to hold our second Labor-Management Initiative (LMI) Conference, which drew more than 400 attendees.

http://www.iafffightingback.com/�


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International Fire Fighter Magazine: Our November-December issue featured a special insert on the IAFF’s efforts to reform and promote the Staffing for Adequate Fire and Emergency Response (SAFER) grant program, and our success in putting thousands of IAFF members back to work. I visited members in Akron and Elyria, Ohio, soon after they received SAFER funding and met with the more than 30 fire fighters who had been rehired after being laid off. Some of these members are featured on the cover of this issue. Our most recent January-February edition focuses on the widespread political attacks on our members on a number of fronts, including pensions, pay, collective bargaining and other worker rights and benefits. The article, “Sounding the Alarm,” provides an account of the various threats in states from coast to coast and outlines the national campaign the IAFF is undertaking to respond to the wave of attacks. The March-April edition will include a special section devoted entirely to the numerous threats facing our members and provide an overview of the Fighting Back Campaign. Health and Safety: Our Health and Safety Division continues work on the development of our new lightweight SCBA vessel, replacing the current cylinder and backpack. This revolutionary new SCBA reduces the weight compared to conventional SCBA and substantially reduces the profile allowing for better weight distribution and center of gravity. We have completed one field study and the final study will be complete by the next Executive Board meeting. We were required to request an additional approval from the Department of Transportation (DOT) regarding the cover and manifold design, which has delayed the project. IAFF Financial Corporation: The economic outlook for 2011 is expected to be one of continued moderate growth. The manufacturing sector and service sectors saw substantive growth over the second half of 2010. This has led to more hiring of temporary workers and some economists believe that the next step is the hiring of permanent workers in these sectors in 2011. While this is good news for the long term, the housing market continues to drag down the recovery. The IAFF Financial Corporation (IAFF-FC) programs have experienced moderate growth, and program providers remain financially stable. Unfortunately, our mortgage program reflects the nationwide decline in new home purchases and the refinancing of existing loans. The overwhelming achievement of the year is that our FrontLine Deferred Compensation Program now has total assets in excess of $2 billion. Get It Union Web Site: We have built and launched a new “Get It Union” web site (www.getitunion.com) as a resource to help IAFF members find and buy union-made products. The site uses what's already on the Internet, including many resources from other unions, to provide links on the web to products made and services performed by union workers. The site also features links to other sites for finding products made in the United States or Canada. IAFF ONLINE JOB CENTER: We launched a new online Job Center (www.iaff.org/jobs) listing employment opportunities with fire departments in the United States and Canada, as well as job openings at the IAFF, other labor unions and municipal, state, provincial and federal agencies. The service is free to members and employers. IAFF Headquarters: Jim Larkin has been appointed to lead the Human Resources Department as Director of Human Resources. Jim comes from the Legal Department where he has been our Assistant Legal Counsel. Ronald Saathoff, former president of San Diego Local 145 has been appointed Director of Pension Resources. Paralegal Juan Romero has transferred to the new Pension Resources Department to help develop the IAFF’s response to increasing attacks on fire fighter pensions and retirement security. In November 2010, as part of a reorganization the Communications and Media Department

http://www.iaff.org/jobs�


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was brought under the Governmental, Political and Public Affairs Division. The vacancy for a Governmental Relation representative (Grade 8) in the Governmental Affairs Department has been filled by James Cho, a Capitol Hill veteran who most recently worked for defeated Florida Representative Ron Klein. Additionally, Andy LaVigne has joined the IAFF, filling the vacant Political Relations (Grade 8) position. He most recently managed the re-election campaign of Kentucky Representative Ben Chandler. In January, Governmental Affairs Assistant Sandy Hamamoto began duties in the Canadian Office as a Grade 8 to assist with our Canadian federal lobbying program and to provide political action advice to Canadian affiliates. Director Jennifer Stewart, who manages the Grants Administration operation, is now Director of Development. Ronald Benedict, GIS Assistant (Grade 8) in the Fire and EMS Department, was transferred to Development Department Assistant (Grade 8) in the new IAFF Development Department. Stephen Decker, previously the Finance Coordinator (Grade 8) in the HazMat/WMD Training Department is now the Finance Coordinator (Grade 8) in the IAFF Development Department. Grade 8 Assistant for the Alumni program and Global Alliance Scott Dennis has laterally transferred from the Information Technology Division to the new Pension Resources Department. Katie Shelton has been promoted to Grade 8 in the Information Technology Division to take over the Alumni program and Global Alliance. The Membership and Budget and Finance Departments have been restructured. Jennifer Harris’ title is now Director, Accounting; Lisa Waters’ title is now Director, Budget/Membership.

GENERAL SECRETARY-TREASURER’S REPORT General Secretary Thomas Miller began with a brief report on the IAFF’s financial situation and recent developments in the General Secretary-Treasurer’s office. Financial Overview: 2010 proved to be a good year for the IAFF’s fund balance. During a convention year, the International realized a $1.7 million dollar increase in its fund balance, which grew from $24.1 million to $25.8 million. That’s no small feat considering the expense of putting on the IAFF’s 50th convention in San Diego and the incredibly tough economic trends facing our affiliates. While the average interest rate of IAFF CD investments dropped almost a point, the International’s investment in the AFL-CIO Housing Trust held near steady at 6.1%. Considering the continuity of the Housing Trust’s returns and the unpredictability of the Canadian Exchange Rate, we successfully moved $2 million from Canada to the U.S. fund in October, locking in a favorable exchange rate. And already in 2011, we’ve transferred another $1 million from Canada, and we intend to move down an additional $2 million in mid-March. Our goal is to take advantage of the highest interest rates possible while keeping an eye on diversification to avoid unnecessary risk. Moving money from Canada aided the growth of the International’s Reserve Fund from $2.1 million to $3.5 million, an impressive $1.4M increase in 2010. Not to be overlooked, EDF expanded in 2010, as well, growing from $2.3 million to $3.3 million, providing more opportunity for the IAFF to protect and assist our leadership and membership. The favorable variance we encountered on our contingency balance available for general rollover is very good. Budgeted at $1.6 million, the actual Rollover came in at $1.923 million – an additional favorable variance of $323,000. Appearing as Non Per Capita Revenue on the line item budget, this $1.923 million rollover is a valuable resource to the International. 2010 also proved to be a very good year for our Staff and Employee Pension Funds. The Staff Fund went up 13.05% and the Employees Pension Fund was up 13.31%. Both fund managers outperformed their equity indexes, and we hope they do it again in 2011. Audit: The auditors arrived in October and scrutinized our financial statements, and the Trustees arrived in January to do their own examination. Though generally accepted accounting principles such as FASB 158 continued to exaggerate our unfunded liability and put downward pressure on our net


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assets, both the external auditors and the Trustees provided clean, favorable reports on the International’s FY2010 financial statements. We have implemented two internal policies on recommendations from the auditor. Office of the General Secretary-Treasurer: In the continuing effort to improve efficiency and make use of the latest technology, my office has been reviewing our current business practices and implementing improvements to facilitate better operations. As you know, a number of senior level personnel changes have been made, and a restructuring of the departments that fall under my authority was done to ensure that we are making the best use of our staff. The IAFF Budget and Finance Department under the direction of AGST Don Copley has been reorganized and I have divided the responsibilities into two major components. Jennifer Harris is now the Director of Accounting and supervises six staff that are responsible for financial transactions. Lisa Waters was promoted to Director of Budget and Membership and supervises six staff who oversee budget and membership. The Human Resources Department has also been restructured and Jim Larkin from the Legal Counsel’s office has been appointed in a reclassified position of Director, Human Resources and General Administration. Operationally, the budget process was updated last fall to ensure that the budget template used by staff accurately reflected the lines in the budget as they are presented to the Executive Board. Additionally, the budget template was filled in with actual salary, benefit and variances to correctly reflect current budget realities. These two modifications streamlined the process tremendously and ensured the successful completion of a timely and accurate budget. We also invited the Chairman of the Budget and Finance Committee Vice President Todd into Washington to get his advice and recommendations on what he thought may make the budget process more efficient. To build on this and strengthen communication internally, AGST Don Copley is now meeting with each Assistant on a quarterly basis to review line item report expenditures and variances. We also took a very close look at our needs for solid pension advice, and we decided to move our pension administration to a nationally known law firm that specializes in pension management, Ice Miller. This move allows us to bring all of our pension services under one umbrella and create more efficiency. We have also just completed the amendments and restatement of the employee and staff pension plans for the IAFF. They have been submitted to the IRS for approval and Mary Beth Braitman, from Ice Miller, will be going into more detail on that later in the Board meeting. The decision was also made to move all of our in-house insurance coverage and the bonding of our locals to S.F. & C. Insurance, which runs the IAFF-FC Insurance Division. This move means that in addition to the IAFF benefitting from an overall premium savings, the IAFF-FC will receive 5% of the overall commission as a royalty. Per Capita Statements: In the area of affiliate resources, the GST’s office has worked closely with the IT Division to roll out electronic Per Capita statements. Until now, hard copies of all Per Cap statements were mailed out to every affiliate via U.S. Mail. Now, locals have the option to receive their statements by mail or email (or both if they so desire). We initiated the new process this month, and I’m proud to report that it has been very well-received. Many affiliates are choosing to receive their statements by email only. This new program also nicely complements the online Per Capita payment option, which continues to rise in usage among our affiliates.


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Booth at Conferences: To advertise these new features we have sent blast emails to leadership and we are making ourselves available to field questions and concerns by hosting a booth at the Legislative Conference in March and at the Redmond/EMS Conference in August. Electronic Vouchers: We also have been working closely with IT to develop the Electronic Expense Voucher system that the Executive Board passed a motion to implement by the end of this fiscal year. In considering the options out there, our Accounting and IT staff worked to find a software solution that truly automates the entire process; from initial entry of expenses by an Officer, Board or staff member, all the way through the accounting process.

Fund Balances General Secretary-Treasurer Miller reported the various balances as of December 31, 2010 and made a Motion that the Fund Balance be accepted.

IAFF - General US $4,340,475 IAFF - General Canada 3,202,792 IAFF - General Total 7,543,267 Alumni Association 14,652 EDF * 3,334,016 PROP 1,184,881 IAFF - PAC ED 101,850 IAFF - POL ED 19,275 IAFF - PAC VIC 2,290,033 IAFF Reserve Fund 6,231,377 IAFF 2012 CONVENTION 252,692 IAFF - Accrued Benefit Reserve ** 1,398,604 IAFF - Disaster Relief Operations 1,242,768 Motorcycle Group 21,219 Disaster Relief Fund-General 91,432 Fallen Fire Fighter Memorial Fund 636,665 Burn Foundation 440,692 Redmond Foundation 275,568 McClennan Scholarship Fund 424,473 Hazmat/WMDT**** 251,961 NYFF 9-11 Fund in US Bank*** 905 Fire Fighters Relief Fund 9-11 in Royal Bank of Canada 38,678 Counseling Support Foundation 1,371 TOTAL $25,796,379 *After $227,998 committed to locals. **Actual Accrued Benefit payable estimated is $2,449,541 ***After $190,492 committed for NYFF 9-11 obligations ****Bank balance never overdrawn, just the GL balance. Transfers are

made as needed once the GL is updated. Motion was Seconded and Adopted Unanimously.


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Investment Report The current investments in the AFL-CIO Housing Investment Trust, along with funds in various banking institutions were provided to the Executive Board.

Voluntary Forfeiture of Charter Motion was made by General Secretary-Treasurer Miller that the following locals be dissolved by involuntary forfeiture in accordance with the provisions of Article XII, Section 2, of the IAFF Constitution:

• Local 1305, Prichard, AL • Local 1629, Columbus, MS • Local 4774, Hope, AR • Local 4738, Brighton, MI

Motion was Seconded and Adopted unanimously.

Involuntary Forfeiture of Charter Motion was made by General Secretary-Treasurer Miller that the following locals be dissolved by involuntary forfeiture for non-payment of per capita in accordance with the provisions of Article XII, Section 3, of the IAFF Constitution:

• Local 4604, Hillsboro Professional Fire Fighters Association, TX • S-27, Tennessee Fire Service Instructors Association, TN

Motion was seconded and Adopted Unanimously. Motion was made by General Secretary-Treasurer that the following locals be dissolved as an involuntary forfeiture in accordance with Article 12, Section 3, failure to comply with the provisions of the Constitution & By-Laws regarding three-man locals:

• I-05, Texarkana, TX • I-73, Great Adventure, NJ • F-145, Presidio of San Francisco, CA • Local 3231, Adamsville, AL • Local 4426, Caddo Parish Fire District 6, LA • Local 4450 Anderson City Fire Fighters, SC

Motion was Seconded and Adopted unanimously.

Locals Placed on Hold Motion was made by General Secretary-Treasurer Miller that at the request of their District Vice President, the following locals will be placed on hold due to delinquent per capita until the next Board meeting:

• Local 3815, South Padre Island, TX

• Local 4282, Pleasant Valley, NY

• Local 4212, County of Orange Fire & EMS, VA

• Local 4558, Stonelick Township Professional Fire Fighters, OH

• Local 4180, Greenville Uniformed Fire Fighters and Paramedics, SC

• Local 4655, Columbus Fire Fighters Association, GA

• Local 4699, Old Fort Association of Professional Fire Fighters, SC Motion was Seconded and Adopted Unanimously.


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Mergers Motion was made by General Secretary-Treasurer Miller that pursuant to Article 12, Section 2, the Board was notified of the following mergers:

• Local 1233 Ottawa Hills, OH into Local 92, Toledo, OH Motion was Seconded and Adopted Unanimously. Motion was made by General Secretary-Treasurer Miller to approve the following mergers and amalgamations pursuant to Article 12, Section 2:

• Effective July 1, 2011, Local 4096, Carmel Valley will merge into Local 2606, Monterey County Regional Fire Protection District

• Local 3182, Golden Gate and Local 2396, East Naples, will amalgamate as Local 2396, Collier Professional Firefighters & Paramedics.

Motion was Seconded and Adopted Unanimously.

Income Status Report General Secretary-Miller reported on the Income Status report for the period ending December 31, 2010, as follows: ANNUAL *-----------YEAR-TO-DATE---------------* NON PCT INCOME BUDGET BUDGET ACTUAL VARIANCE General Non-PCT Revenue (Non-Allocated)

Initiation, Reinstatement, & Charter $150,000 $37,500 $30,240 $(7,260) Interest 300,000 75,000 71,780 (3,220) Financial Corporation 121,914 30,479 35,553 5,074 MDA/MDAC Non-Allocated 218,725 54,681 54,681 0 Advertising 495,000 123,750 141,400 17,650 Other Income 10,000 2,500 2,167 (333) Balance from Prior Year 1,650,336 1,650,336 1,923,913 273,577 Sub-Total General Non-PCT Revenue (Non-allocated)

2,945,975 1,974,246 2,259,734 285,488

Grants/Cooperative Agreements/Contracts (Non-Allocated)

Indirect Administrative Overhead 767,153 191,788 132,970 (58,818) Personnel Reimbursement 407,638 101,909 79,731 (22,178) Sub-Total Grants/Cooperative Agreements/Contracts (Non-allocated) 1,174,791 293,697 212,701 (80,996) Grants/Cooperative Agreements/Contracts and Misc Revenue (Allocated Non-PCT Revenue)

MDA/MDAC Revenue Allocated 524,275 131,069 131,069 0 FIREPAC Revenue Allocated 249,250 62,312 18,813 (43,499) Conference/Event Direct Non-PCT Allocated** 1,826,528 456,632 294,715 (161,917) Grant Direct Non-PCT Revenue Allocated** 1,209,040 302,260 157,583 (144,677) Misc Direct Non-PCT Revenue Allocated** 2,255,246 1,562,059 1,414,267 (147,792) Sub-Total Grants/Coop 6,064,339 2,514,332 2,016,447 (497,885)


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Agreements/Contracts (Alloc Non-PCT rev) Total Non PCT Revenue $10,185,105 $4,782,275 $4,488,882 $(293,393) Total Per Capita Tax $38,803,320 $9,700,830 $9,832,481 $131,651 Less Restricted PCT (FIREPAC, EDF, PROP, REDMOND) (6,461,640) (1,615,410) (1,637,278) (21,868) General Per Capita Tax 32,341,680 8,085,420 8,195,203 109,783 Less PCT Allocated by Prior Board Approval 0 0 0 0 General Per Capita Tax - Adjusted*** $32,341,680 $8,085,420 $8,195,203 $109,783 *Favorable rollover from the prior year that was higher than originally budgeted. **Timing of: conferences, new Development activity, & special events. ***There is $109,783 available to be transferred to the Reserve Fund. Motion was made to accept the December 31, 2010, Income Status Report. Motion was Seconded and Adopted unanimously.

Financial and Membership Reports The following reports were presented to the Executive Board members for their review: Department Reports, Membership Report, District Budget Report, Grant Status Report, Technical Assistance Report, and New Local Report. Motion was made by General Secretary-Treasurer Miller that these reports be accepted. Motion was Seconded and Adopted unanimously.

Technical Assistance and First Contract Policies The following are the expenditures from October 26, 2010 through January 31, 2011, Line 507:

Local # City/State Amount

Approved

Total Expenditures

to Date Outstanding Commitment

Issue: Consultant services for presentation/testimony with interest arbitration 2920 Noble, OK $3,500.00 $1,185.00 $2,315.00 157 Oklahoma City, OK $3,500.00 $1,340.00 $2,160.00 2380 Highland Heights, OH $3,500.00 $3,500.00 $0.00 2217 Whitehorse, YT (Canada) $3,500.00 $1,332.00 $2,168.00 735 Bethlehem, PA $3,500.00 $0.00 $3,500.00 2707 Oswego, NY $3,500.00 $0.00 $3,500.00 2284 McAlester, OK $3,500.00 $0.00 $3,500.00 2374 Warr Acres, OK $3,500.00 $0.00 $3,500.00 4679 Scugog Prof FF (ON) $3,500.00 $0.00 $3,500.00 4067 Skiatook, OK $3,500.00 $0.00 $3,500.00 2067 Norman, OK $3,500.00 $3,500.00 $0.00 714 Niagara Falls UFAA, NY $3,500.00 $3,500.00 $0.00 2359 Edmond, OK $3,500.00 $0.00 $3,500.00 2085 Bethany, OK $3,500.00 $0.00 $3,500.00 3958 The Village, OK $3,500.00 $0.00 $3,500.00 2171 Del City FF (Newcastle), OK $3,500.00 $0.00 $3,500.00 734 Baltimore City, MD $3,500.00 $0.00 $3,500.00

Issue: Financial assistance with first contract 4753 Calhoun County, IA $3,500.00 $400.00 $3,100.00


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4792 Washington Co Professional EMS, PA $3,500.00 $3,500.00 $0.00

F263 Federal Firefighters of Hawaii $3,500.00 $3,500.00 $0.00 4755 Berks PFF, PA $3,500.00 $1,425.00 $2,075.00

4686 Caledon PFFA, Bolton, ON (Canada) $3,500.00 $0.00 $3,500.00

New Locals The following is a list of new locals organized since the last meeting:

District Local Name Members Charter

Date 3 4824 Hopkins Hill Fire Fighters, RI 9 12/1/2010 4 4830 Campbell County Prof. Fire Fighters Assoc., VA 17 11/15/2010 4 4838 Harrisburg International Airport Fire Department, PA 11 1/3/2011 4 4839 West End Prof. Fire Fighters Assoc., PA 14 1/6/2011 5 4831 Somers Prof. Fire Fighters, WI 9 11/15/2010 6 4810 Pitt Meadows Fire Fighters,BC 3 2/1/2011 6 4819 Cochrane Fire Fighters Association, AB 60 12/1/2010 8 4827 Suttons Bay- Bingham Prof. Fire Fighters, MI 6 11/15/2010 8 4828 Brookfield Prof. Fire Fighters, IL 19 12/7/2010 8 4833 South Elgin Prof. Fire ighters, IL 27 12/15/2010 9 4327 Snowmass Fire Fighters, CO 11 11/22/2010

10 2312 Vernon Firemen's Association, CA 69 2/1/2011 11 4832 Bowie Prof. Fire Fighters, TX 12 2/1/2011 12 4836 Santa Rosa County Prof. Fire Fighters, FL 10 12/13/2010 14 3026 McMinnville Fire Fighters Assoc., TN 19 1/1/2011 14 4834 Grambling Fire Fighters Association, LA 6 12/1/2010

TOTAL 302

Reinstatement of Old Local Number Motion was made by General Secretary-Treasurer Miller at the request of Vice President Walsh that newly merged Local 1997 receive their old number of 1828. Motion was Seconded and Adopted unanimously.

Royalty Checks The IAFF received from the AFL-CIO for the credit card program a total of $111,561 since the November 2010 Board meeting for a total of $148,806 this fiscal year. Pursuant to policy, these funds will be placed in the convention line to offset convention expenses.


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GENERAL COUNSEL’S REPORT The following is a brief summary of significant developments that have occurred in cases and matters being handled under the direction of IAFF General Counsel Tom Woodley. The status of other pending cases is outlined in the Appendix at the end of this Report.

Cases Under the International’s Guardian Policy Jeffrey Poole, Jude Diaz, et al. v. City of Plantation, Florida: After six (6) years of contentious litigation, a favorable final settlement was achieved in this Guardian Policy case. This Guardian Policy case started in federal court in early 2005 against the City of Plantation, Florida—one of the most anti-union employers. After a representation petition was filed with the state Public Employee Relations Commission (PERC), the City discharged two Local 4430 leaders for supporting the union. The court action was prolonged by a large number of motions and pleadings filed by the City’s attorneys, and a Judge who was slow to rule on motions. In 2008, the City terminated Jude Diaz because, in part, he engaged in protected concerted activities in supporting the new Local. After filing Unfair Labor Practice charges and favorable rulings by the Hearing Officer and the PERC, settled that portion of this matter in April, 2010 for $385,000—Jude Diaz received $290,000, plus other substantial benefits, and the IAFF recovered $95,000 in attorneys’ fees and expenses related to the PERC proceeding. That resolution concluded the PERC case. In November, 2010, the issues remaining in the courts (pending before the U.S. Court of Appeals, and a future trial in the lower court in a year or two), were fully settled to the satisfaction of the plaintiff union members. The sum negotiated in this additional settlement was $850,000; this amount included $570,000 in make-whole damages for the five (5) plaintiffs, and a full recovery for the IAFF of $280,000 in accrued attorneys’ fees and costs. When this supplemental sum is paid, it will equal 100 percent reimbursement to the International in this hard-fought and long battle with the City of Plantation. The background of this dispute, as well as the two settlements, are summarized in more detail below. The Federal Court Action: This matter initially began as a suit in federal court on behalf of Jude Diaz, Local President Jeff Poole and other union members claiming retaliation and discrimination in violation of their First Amendment rights of free association and free speech. Shortly after the organizers of this Local filed a representation petition with the PERC, the City and several Chiefs launched a campaign against the union—targeting the leaders of the Local with threats, suspensions, firings, and even pursuit of bogus criminal charges against Local President Poole (which were quickly thrown out as groundless). Pursuit of the PERC Case: Jude Diaz, one of the Local leaders who remained employed in the City’s Rescue Division, faced continuous harassment at work. In the fall of 2007, he underwent surgery for a knee injury and took sick leave to recover. His later request for light duty was denied twice, as was his request for leave without pay. In the past, requests for leave without pay had been consistently approved—at least prior to the formation of the union. In December, 2007, the department discharged Diaz, ostensibly because of his extended absence. Evidence showed that the City actually terminated him for his protected union activities. After the filing of unfair labor practice charges with PERC, a hearing was held. Only three weeks later, the Hearing Officer issued a decision, concluding that the Assistant Chief and Fire Chief had not provided credible testimony justifying the discharge of Diaz. Instead, the Hearing Officer found that Diaz was terminated because of his union leadership role. He ordered the City to reinstate Diaz to his former job, and pay him all lost wages and benefits, and “cease and desist” from firing employees for supporting the union. On appeal by the City, the PERC upheld all of the Hearing Officer’s findings and the award of full relief. In addition, because the PERC determined that the City “knew or should have known that its conduct was unlawful,” the PERC awarded attorneys’ fees and costs against the City. In general, state PERBs or PERCs do not usually grant a request for attorneys’ fees and expenses. The PERC also ordered the City to refrain from dismissing employees for


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engaging in union activities, and to stop otherwise interfering with or coercing its employees in the exercise of their rights. The City then filed an action in local state court, the Fourth District Court of Appeals, requesting that PERC’s decision be overturned. Settlement of the PERC Case: After extensive negotiations, a settlement of the PERC case was reached in March, 2010 on terms very favorable to Jude Diaz. He has been paid $290,000 in compensatory damages. This sum equals compensation for all of his lost wages and benefits, plus four (4) years of ‘front pay’ into the future. For personal and medical reasons, Diaz did not want to return to his former job with the City’s fire department. He has experienced serious health concerns, and expects to have additional abdominal surgery. (He currently is employed as a financial advisor). In addition, the settlement obligated the City of Plantation to pay for full health insurance coverage for Diaz for four (4) years, from April 1, 2010 through April 1, 2014. The PERC/state Court settlement also provided for the recovery of $95,000 in attorney’s fees and costs. A reimbursement check in that amount was sent to the International on March 29, 2010. This equaled a 100 percent recovery for the IAFF with respect to the PERC/state court part of this Guardian Policy case. This PERC portion of this matter was closed. The Federal Court Action: In the parallel federal court action on behalf of several other plaintiff union activists, on May 5, 2010, after more than three years of waiting, the Judge finally issued a ruling rejecting most of the defendants’ pending motions which sought to have the suit dismissed. On October 14, 2010, the District Court issued a supplemental and largely positive ruling denying in part and granting in part the defendants’ motions for summary judgment. The three individually named defendants (Chiefs Pudney, Harris, and Gordon) filed interlocutory (immediate) appeals from the District Court’s denial of their claims of qualified immunity. Because of this, no further proceedings or trial would commence at the District Court until the Eleventh Circuit Court of Appeals ruled on these appeals, which could have taken an additional 12 to 18 months. Notwithstanding this appeal, in view of the favorable rulings of the Judge outlined above, it seemed that the City would give consideration to settling the litigation within the mediation process established by the appellate court. Mediation and Final Settlement of Court Action: On November 15, 2010, a court-appointed Mediator conducted comprehensive settlement negotiations with the parties. As noted above, those negotiations resulted in a substantial settlement in the sum of $850,000. Of that amount, the five (5) plaintiffs will share in $570,000 in full compensatory damages which covers all their lost wages and benefits, as well as additional monetary relief; and the IAFF will be reimbursed for all attorneys’ fees and out-of-pocket costs incurred since 2005, in the sum of $280,000. All the plaintiffs were very satisfied with the funds they will receive (in addition to the $290,000 that Jude Diaz received in the earlier PERC settlement). To their credit, they wanted the IAFF to be fully reimbursed for its litigation expenditures so the monies could be returned to the EDF Fund and possibly available again in a future Guardian Policy case to protect the rights of other Local affiliate leaders who have been subjected to discrimination. The two discharged leaders, Poole and Neri, did not want reinstatement because they currently have other jobs that they wanted to keep. However, the settlement agreement requires the City to effectively expunge their City employment records by placing resignation letters in the personnel files of Poole and Neri, in lieu of the terminations. The settlement was approved by an Order of the Court, so that it will be enforceable in the event of noncompliance by the City. On January 13, 2011, IAFF General Counsel Woodley sent to General President Schaitberger a check payable to the International in the amount of $280,000, as full reimbursement for all of the attorneys’ fees and out-of-pocket expenses incurred by the organization. While this case proved to be one involving long and contentious litigation, the terms of the final PERC and Court settlements clearly show that the IAFF will go to bat for its Local affiliate leaders where they suffer unlawful retaliation because of their union activities. These plaintiffs wanted the IAFF to know that they are very grateful for the International’s support and representation. This case is now closed.


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Kurt Vroman v. Volusia County, FL: As previously reported, this case involved the termination of Local 3574 Vice President Kurt Vroman shortly after he took the lead in securing the members’ vote of “no confidence” in the Fire Chief. The County asserted that Vroman was discharged because he was dishonest about his whereabouts while he was operating a department vehicle away from the station. The Local and Vice President Vroman became outspoken in pushing to increase staffing and eliminate excessive mandatory overtime. This issue led the Local to hold a vote in which 98% of the members voted “no confidence” in Fire Chief James Tauber and the Director of the Department of Public Safety. At this same time, County officials drove to the fire stations and requested the on-duty fire fighters (and volunteers) sign a petition stating their confidence in Chief Tauber. The day after the membership vote, Chief Tauber handed Local President Jeremiah Greathouse a written reprimand because he posted notice of the vote on the Local’s bulletin board space at the stations. The decision to fire Vroman was made shortly after he stood with President Greathouse at a County Council meeting with 50 applauding union members to report on the no confidence vote. Local 3574 initially filed a grievance over Vroman’s discharge, and took the dispute to arbitration under its labor contract. After a hearing, the Arbitrator decided that the grievance was ‘procedurally defective’ and therefore not arbitrable. General President Schaitberger then approved a federal suit to proceed under the Guardian Policy claiming that Vice President Vroman was terminated in retaliation for exercising his First Amendment right of free association (union leadership activities). The prolonged litigation has involved extensive discovery and the filing of multiple motions and pleadings by the County and its lawyers. On March 14, 2008, at the end of a trial in federal District Court, the jury ruled in favor of Local 3574 officer Kurt Vroman, finding that Volusia County violated his constitutional right of free association when it fired him for his union activities. The jury awarded Vroman back pay damages, and the issues of reinstatement, or granting ‘front pay’ in lieu of reinstatement, remained for the Court to decide. On October 15, 2008, the District Court denied the County’s motion to set aside the jury verdict and upheld the jury’s determination that the County unconstitutionally terminated Local 3574 Kurt Vroman because of his union activities. The Judge also decided then that reinstatement was inappropriate and unworkable because of the “extreme animosity” and antagonism that existed between Vroman and County Fire Department officials. After losing his job, Vroman was hired by the City of Deltona Fire Department and, for various personal reasons, he long ago decided to remain at Deltona rather than return to the Volusia County Fire Department. Vroman is now the President of Local 2913 in Deltona. In lieu of reinstatement, however, on January 5, 2009, the District Court issued a favorable ruling granting IAFF General Counsel’s motion requesting that Vroman be awarded “front pay” because the opportunities for advancement/promotion in Deltona are not substantially equivalent to the job he had in the Volusia County Fire Department. As a result, the Judge awarded Vroman front pay damages, finding that he continues to suffer adverse effects from the County’s unconstitutional actions. Front Pay is an unusual make-whole remedy, but it can be considered proper where a court believes that reinstatement to a previous job would not realistically work for any of the parties. In those circumstances, the former employer who violated the law can be held accountable for a reasonable assessment of the difference (reduced amounts) in salary/benefits that the plaintiff victim is receiving in his current job. After the Court entered Final Judgment, IAFF General Counsel submitted a petition seeking a full recovery of attorneys’ fees and costs. The County filed its appeal of the Judge’s decision and the jury’s verdict. A ruling on the fees’ petition was deferred until the appeal was decided. On February 4, 2010, the U.S. Court of Appeals affirmed the favorable verdict of the jury finding that Vroman was discharged in violation of his constitutional right of free association. The appellate court also upheld the District Court’s decision granting Vroman substantial front pay as part of the compensatory relief awarded to him. This decision is particularly gratifying because the County and its lawyers have fought this case every step of the way over the last five (5) years—engaging in extensive depositions and discovery; filing multiple motions; forcing a trial; submitting post-trial motions to nullify the jury’s verdict; opposing an award of ‘front pay’


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relief for Vroman; resisting the petition for attorneys’ fees and costs; and pursuing an appeal (which the County lost). On February 19, 2010, the County filed petitions with the appellate court, seeking a rehearing by the three-judge panel, and a rehearing en banc (asking all 12 federal Judges sitting on the Eleventh Circuit Court of Appeals to rehear the County’s appeal). On March 24, 2010, both of those County petitions were denied. The County was not seriously interested in settling the last issue regarding the recovery of attorneys’ fees and costs. Consequently, it was necessary to submit a petition to the Court with respect to such litigation expenses. Recent Developments: In a recent ruling, the Court awarded a recovery of $288,132.17 in attorneys’ fees and expenses. On November 16, 2010, General Counsel Woodley forwarded a check in this amount to General President Schaitberger-which is about a 74 percent reimbursement to the IAFF in this long-pending case. This court action is concluded. Arbitration Pursued by the Air Force Against IAFF Local F-297 (Andrews AFB): An early settlement was achieved in this new Guardian Policy arbitration case where the Department of the Air Force had filed a grievance against Local F-297 (Andrews Air Force Base) primarily objecting to certain actions taken by Local President Chester Lanehart. On April 21, 2010, the Air Force Headquarters 316th Wing’s Labor Relations Officer filed a grievance against Local F-297 alleging that the Local violated the Labor Management Agreement (“LMA”) by : (1) sending copies of unfair labor practice charges directly to the 316th Wing Commander, rather than to the Labor Relations Officer; (2) communicating directly with the Secretary of Defense and Air Force Higher Headquarters regarding a staffing issue; and (3) the Local President (now a retired federal fire fighter) entering employee workplaces without proper authorization from management. While the Air Force initially seemed to be adamant about pressing its grievance to a costly and time-consuming arbitration proceeding, in recent weeks, we were able to persuade its representatives and attorneys were persuaded that this is a matter that should be settled on fair and reasonable terms. The three claims asserted in the Air Force’s grievance have been resolved on the following basis: 1. Access to Fire Stations: Prior to conducting union business with on-duty employees, Local F-297 officers will notify the employees’ supervisor. Local President Lanehart will have access to the stations for union business; however, since he is a former (retired) employee without the necessary security clearance and line badges for access to Fire Station No. 1, he will be escorted in and out of Fire Station No. 1 due to security considerations at Andrews AFB that is used by the President and other high Government officials. 2. Communications with Wing Commander: In accordance with the LMA, the Local will initially present unfair labor practice charges to the Labor Relations Officer. Such documents will not be sent to the 11th Wing Commander or other Air Force or DOD officials without first exhausting the initial grievance steps set forth in the LMA. 3. Staffing Issue: Both the Union and management have reserved their respective rights to assert their positions involving any staffing issues in the future. This matter is now closed. Lindberg v. Bossier Parish, LA: The Fifth Circuit Court of Appeals issued an adverse decision in this case. Brian Lindberg, a union steward for IAFF Local 4664 at the time of his termination, was purportedly fired due to his failure to meet a Bossier Parish Emergency Medical Services (“BPEMS”) requirement to enter a paramedic program and his alleged statements that he was not interested in obtaining his paramedics license. Lindberg maintained that he did not refuse to enter the paramedic program and that, instead, he had merely requested that BPEMS allow him to attend the paramedic classes in lieu of working his regular shifts, as it had done for other employees in the past. He asserted that the requirement that he attend the paramedic classed, and then report to his shift work, was only applied to him after the union organizing effort and his role in that activity. The lower court granted the defendants’ motion for summary judgment and dismissed the case. Because the district court failed to view the facts in a light most favorable towards Lindberg, as it was required to do, and because the district court improperly ruled on the subjective intent of the defendants at the summary judgment stage instead of allowing a


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jury to decide that issue at trial, we recommended that the district court’s decision be appealed. In the Court of Appeals recent ruling, it agreed with Lindberg on the first two elements of his constitutional claim—that his role in helping form IAFF Local 4664 constituted protected union activity under the First Amendment, and that he suffered an adverse action when he was terminated from his position as an EMT. However, with regard to the third element of his claim, the Court decided that there was insufficient evidence from which a reasonable juror could conclude that Lindberg’s protected union activity was a motivating factor in BPEMS’ decision to fire him. Unfortunately, the Fifth Circuit panel that heard and decided the case was extremely conservative (one Reagan appointee and two Bush appointees) and simply did not accept that the evidence of anti-union sentiment on the part of both defendant Duxie Scott, the director of the BPEMS, and defendant Cheryl McEntyre, the deputy director of the BPEMS, was enough to show that they were motivated by Lindberg’s union activity in firing him. Instead, the Court concluded that Lindberg failed to prove that either defendant even knew of his union membership or his union activities. As such, the Court concluded that defendants could not have been motivated by unlawful considerations in their actions. The three-judge panel was not troubled by Director Scott’s testimony that he felt “dumped on” by his employees with respect to their efforts to form Local 4664. Nor was it troubled by Scott’s threats to union representatives that he could destroy the union by firing two probationary employees, even where the evidence showed that Scott knew that Lindberg was one of those two probationary employees when he made the termination threat. Instead, in a somewhat circular fashion, the Court of Appeals determined that Scott’s comment: “provides no evidence that Scott knew that Lindberg would vote in favor of union formation. It demonstrates only that Scott knew that it would be impossible for the union supporters to obtain a majority vote if the two provisional employees did not vote. Scott’s comments after the August meeting provide no evidence that he knew Lindberg favored the Union.”(Slip. Op. p. 6) Because the Court concluded that neither defendant knew that Lindberg was in the union, it found that, as a matter of law, Lindberg could not establish that his termination was motivated by his union activity. Accordingly, the Court of Appeals affirmed the lower court’s dismissal of the case. The only positive thing we can say about the appellate court’s decision is that the decision rested on the specific facts developed in the record and did not set forth broader legal pronouncements. Moreover, the Fifth Circuit has classified the opinion as “unpublished—meaning that it is not intended to serve as a precedent in future cases.” This case is closed. IAFF Locals F-78, F-88 and F-211—Air Force Material Command: In a decision issued on December 22, 2010, the Federal Labor Relations Authority (FLRA) upheld the favorable Arbitration Award which found that the Air Force Material Command (“AFMC”) violated provisions of the labor agreements and applicable Department of Defense regulations when the Government reduced staffing on its Aircraft Rescue Fire Fighting (“ARFF”) vehicles. This ruling sustains the positive Arbitration Award obtained by the IAFF and Vice President Jim Johnson on behalf of IAFF Local F-88 (Wright-Patterson Air Force Base, Ohio), Local F-211 (Tinker Air Force Base, Oklahoma), and Local F-78 (Hanscom Air Force Base, Massachusetts). The combined decisions of the FLRA and the Arbitrator, finding that the Agency’s reduction in staffing violated department of Defense Instruction (“DODI”) §6055.06, are significant because that regulation establishes requirements regarding fire/rescue emergency services throughout Department of Defense components—Air Force, Navy, Army, Marine Corps, and the Defense Logistics Agency. Background and Arbitration Award: The Air Force dispatches pairs of ARFF vehicles in response to aircraft fires. Previously, it had staffed each ARFF vehicle with three persons. It changed that practice, and commenced dispatching pairs consisting of vehicles staffed with three persons and one person. Vice President Johnson then filed a grievance asserting that this action violated articles in the parties’ Command Labor Agreement (CLA), DODI §6055.06, and NFPA standards. At the arbitration hearing, Vice President Johnson contributed key testimony, noting that DODI §6055.06 was violated by


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the cut in minimum staffing of ARFF vehicles because in order to properly staff an aircraft emergency scene, two fire fighters must be available for entry and two fire fighters are to remain outside. With the reduced staffing, there are insufficient personnel to enter an aircraft with the first responding unit at the scene of a fire/rescue emergency. He further emphasized the well-respected NFPA standards, and noted that the reduced staffing significantly impairs the fire fighters’ ability to achieve a safe and positive outcome for the fire fighters, as well as the crew and passengers aboard the aircraft. Evidence at the hearing also showed that the staffing reductions breached the overall Command Labor Agreement, and local supplemental agreements, which obligate the Agency to comply with all “applicable existing policies and regulations of appropriate authorities.” The DODI §6055.06 establishes short-term, long-term and temporary deviation procedures for reductions in staffing. These deviations must include a plan for returning the unit to established standards, which entails an assessment of risk, an action plan and acceptance of the risk from the Installation Commander with oversight from authority at least one level above the Installation Commander. Vice President Johnson’s testimony, and the record compiled at the hearing, demonstrated that the Agency did not comply with these staffing deviation requirements, nor was a waiver granted by the Secretary of the Air Force or his/her designee. In her favorable Award, the Arbitrator agreed with the IAFF’s position and held that the Agency violated DODI §6055.06, as well as the governing provisions of the labor contracts which required the Agency to adhere to pertinent regulations and policies. Her findings were noteworthy, particularly the following excerpts from her ruling: “The reductions in manning of the ARFF vehicles impede first responders to effectively fight announced or unannounced incidents. The authority to control does not negate the Agency’s obligation to comply with established procedures. The Agency arbitrary (sic) reduced the manning of the ARFF vehicles. The Agency’s action results in ARFF vehicle manning, which virtually immobilizes some of the ARFF vehicles since entering the aircraft requires a “two-in, two-out” and a pump operator on each truck. Clearly, this arbitrarily (sic) reduction in manning of ARFF vehicles multiplies the safety and health risks for all who are on the scene. This action appears contrary to the Agency’s assertion that the safety of the fire fighters, flight crew, passengers and the aircraft is the first concern.” The reduced manning of ARFF vehicles creates a safety hazard for the bargaining unit members. Further, it restrains initial responders’ ability to effectively control an aircraft fire. The record reveals that the “two-in, two-out” rule explicitly pertains to the fire fighters. A minimum of two ARFF vehicles manned with a driver/pumper and two fire fighters is essential to begin initial fire fighting attack. An aircraft fire involves high temperatures and the potential for explosion. To mitigate these risks it is essential that ARFF vehicles be manned in accordance with Table E3. T1: Minimum Level of Service Objectives-Operations, of the DODI 6055.6.” The remedy issued by the Arbitrator required the Agency to: 1) immediately restore minimum staffing of ARFF vehicles to three (driver/pump operator, and two fire fighters); or 2) undertake a risk analysis concerning staffing, propose a time table when staffing will be restored to meet the criteria of DODI §6055.06, request an appropriate waiver, and notify the union of the waiver’s status. FLRA’s Favorable Decision: The Air Force filed numerous exceptions with the FLRA, hoping to have the Arbitration Award overturned. In its shotgun appeal, the Agency raised multiple arguments:

1) The Arbitrator exceeded her authority by considering the safety of air crews and aircraft passengers;

2) The Award was based on nonfacts not in the record, and erroneously ignored testimony that the Air Force utilizes companies and cross-staffing as well as mutual aid agreements to meet the staffing requirements of DODI §6055.06.

3) The Award failed to draw its essence from the parties’ agreement by, in part, mistakenly relying on local supplemental agreements; and

4) The Award excessively interferes with management’s rights (under §7106(a) of the statute) to determine its organization and the necessary number of employees, and to assign work


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and deploy fire fighters, by requiring the Air Force to immediately restore minimum manning of ARFF vehicles to three persons per vehicle.

In a well-reasoned decision, the Federal Labor Relations Authority rejected all of the Agency’s exceptions, and upheld the Arbitrator’s findings that, by not staffing each ARFF vehicle with at least three persons, the Agency violated the governing Agency instruction, and the parties’ Command Labor Agreement. As the FLRA noted, “the award requires the Agency to assign firefighting duties to a minimum of three persons per ARFF vehicle, and therefore, at least six persons per pair of vehicles, despite the Agency’s desire to staff them with a total of four persons per pair.” FLRA’s Decision, at p. 7. Local 1158, Clearwater, FL: This is a Guardian Policy case in which Local 1158 (Clearwater, Florida) filed a grievance and was pursuing this matter to arbitration under its labor contract. The grievance claimed that the employer, City of Bellair Bluffs, improperly suspended Local Vice President Chuck Barlet for ten (10) shifts without pay because of his protected, union-related activities. He was disciplined primarily because he asserted the right to have a union representative present when the Chief investigated and interrogated members in the context of potential discipline. After extensive settlement efforts, and just as the arbitration hearing was scheduled to begin, the parties reached a tentative settlement. Subsequently, the City Council voted to approve the proposed settlement which provided for full, make-whole relief in the form of back pay and lost pension service credits and contributions; rescinding the disciplinary action; and expunging all records of the adverse action. With this resolution, this matter is closed. Attacks on Public Sector Unions and Their Members—State Laws Outlawing Payroll Deductions for Union Dues as a Means of Stifling Political Activity: One of the more deleterious aspects of the all-out offensive against public sector unions and their members is the growing legislative effort in multiple states to destroy the ability of those unions to engage in political activities. For example, Alabama recently enacted a law that makes it illegal to arrange for public employee payroll deductions for union dues unless the labor organization does not use the dues for broadly considered “political activity,” including mere references to candidates for state and local offices. (Such laws are sometimes referred to as “Paycheck Deception”). The Alabama law becomes effective March 20, 2011. If a union wishes to continue (or establish) payroll deductions for its dues, it must submit a written certification regarding full compliance with the law (i.e., no portion of the dues are used for broadly defined political activities), and then it must itemize and disclose all of its expenditures each year. Similar bills have been introduced in Tennessee, Oklahoma and Mississippi, and a ballot initiative has been filed in California. In addition, bills comparable to the one adopted in Alabama are now expected in 15 other states. A core group of General Counsels for major public sector unions has been established to consider and develop legal strategies for possibly challenging the Alabama law (AFT, AFSCME, SEIU, NEA, Laborers, and Teamsters). IAFF General Counsel Woodley has exchanged research and legal analysis with these other counsel and participated in multiple conference calls. At the AFL’s monthly meeting of the Lawyers’ Advisory Panel (“LAP”) in Washington, D.C. in January, much of the discussion and shared research/analysis were focused on the significant concerns presented by the Alabama law and the orchestrated, anti-union campaigns to pass comparable legislation in other states.

Cases Handled Under the IAFF’s FLSA Policy Achan/Ackley, et al. v. City of Los Angeles, CA: After a recent hearing, the District Court granted General Counsel Woodley’s motion for Summary Judgment in favor of the plaintiff Local 112 members (53 dispatchers and one Air Ambulance Technician), regarding the proper methodology for computing a


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setoff/credit for partial overtime payments the City previously made to these employees. This positive ruling will produce a substantial recovery for those members who have been deprived of the overtime owed them for many years. Background: By way of background, this FLSA case originally involved over 300 paramedic and dispatcher members claiming Section 7(a) coverage based on the 40-hour work week overtime standard. In the past, the City treated the paramedics and dispatchers as employees engaged in fire suppression activities under the Section 7(k) exemption, and only gave them FLSA overtime pay after working 204 hours in a 27-day work period. After a favorable ruling from the Federal Judge regarding the City’s liability to the paramedics, we settled their claims in mediation, and the back pay and related damages were distributed to those union members about two years ago. On November 30, 2009, the District Court denied the City’s motion that sought to avoid FLSA liability to the dispatchers, and granted our summary judgment motion finding that they deserved overtime pay after they worked 40 hours per work week. Among other things, the Court determined that the dispatchers did not have the requisite “responsibility” to perform fire suppression functions in order for the City to apply the Section 7(k) exemption covering fire fighters. The Court also awarded the maximum three-year period for recovering back pay, finding that the City’s violations of the FLSA were “willful”. In addition, the Court doubled the dispatchers’ monetary recovery, by awarding 100 percent in supplemental liquidated damages equal to the withheld overtime compensation because the City failed to show it acted in good faith. Recent Developments: The recent legal issue involving the dispatchers related to the proper methodology for computing a setoff/credit for partial FLSA overtime payments made by the City in the past. The City had argued to the Judge that it should be able to apply a setoff cumulatively for the entire back pay recovery period. In other words, if an employee had received partial FLSA overtime pay in November, 2009, it should be able to use that pay to offset and nullify FLSA overtime compensation owed, but not paid, in a workweek in 2006. The Court rejected that argument as condoning the City’s violations of the FLSA’s requirement that overtime compensation must be timely paid after the overtime work is performed. As noted above, the City had been unlawfully using the Section 7(k) fire fighter overtime exemption and, therefore, did not pay these employees overtime until after they worked over 204 hours in a 27-day work period. The Judge rejected the City’s alternative assertion that it should be able to apply previous overtime paid in these 27-day cycles by spreading it over any workweek it chooses within those cycles where the employees’ work exceeded 40 hours. The Court felt that this would reward the City for violating the statute by illegally relying on the Section 7(k) exemption to avoid overtime payments. Instead, the Court agreed with the dispatchers’ position that the “workweek” is the core unit of time in the statutory language and Department of Labor regulations, and that premium payments previously made by the City for hours worked in each workweek may only be offset against the FLSA compensation due for the overtime hours worked in that same workweek. A final Judgment will soon be prepared specifying each member’s total compensatory relief. The City’s attorneys have indicated that they plan to appeal the Judge’s decisions with regard to FLSA liability and the methodology for calculating the setoff. Unfortunately, the Ninth Circuit Court of Appeals has a very slow docket of cases. Consequently, the City’s appeal will likely take over 18 months. Steve Balestrieri, et al. v. Menlo Park Fire Protection District, CA: This is a new FLSA case in which it is claimed that Menlo Park Fire Protection District in California is violating the FLSA in two ways: (1) by failing to pay fire fighters for their travel time between two fire stations when they drive to one station to pick up their turnout gear and drive to another station where they are assigned to work their shift; and (2) by failing to include yearly annual leave payouts in the regular rate of pay calculation. The Department of Labor FLSA Regulations, 29 CFR § 785.38, state that where an employee is required to report at a meeting place to pick up and carry tools, the travel from the designated place to the work place must be counted as hours worked regardless of contract, custom or practice. Local 2400 has asserted that the travel time from one fire station to another to pick up turnout gear and then report for


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duty at a different station at the start of the shift is compensable time under 29 CFR § 785.38 and that a fire fighter’s turnout gear would be considered “tools” under this definition, as fire suppression activities cannot be performed without the gear. In response, the District essentially set forth three arguments, citing almost no authority for its position. First, the District argued that fire fighters are not required to report to a specific location or required to store their gear at a particular location, but instead have the option of bringing their gear home. Second, the District contended that turnout gear does not constitute “tools,” as this phrase was meant to include only items whose portability is limited or that must be shared among employees, and turn-out gear is akin to clothing which is portable and personalized. Finally, the District argued that picking up turnout gear is preliminary to their principal activity, and de minimis. Given the positions of both sides, the success of the fire fighters’ claims will turn on a fact specific analysis by the court interpreting the phrases “required” and “tools” contained in the Regulation, as well as a general analysis of whether this activity is considered employment under the FLSA. Fire fighters are required to have their turnout gear when reporting for duty. If a fire fighter elects not to take his turnout gear home (a legitimate and permissible choice), he may leave it at one location at night, but then be assigned to report for work at a different fire station the next morning. In this scenario, the fire fighter is thus required to pick up his turnout gear at one station and then report to a second station for duty. Local 2400 would also have to prevail against the District’s argument that picking up turnout gear is a de minimis. The Supreme Court has held that otherwise compensable preliminary activities are not included in calculating hours worked in a week if the period of time spent on the activity is “insubstantial and insignificant.” First, courts will look at the amount of daily time spent on the additional work. There is no precise cut-off, and therefore courts will look at the facts and circumstances of the individual situation. There have been cases finding that as little as ten minutes of working time goes beyond the level of de minimis and triggers the FLSA. After setting out the amount of time, courts will then evaluate whether that time is de minimis under three factors: (1) the practical administrative difficulty of recording the additional time; (2) the size of the claim in the aggregate; and (3) whether the plaintiffs performed the work in question on a regular basis. In this case Local 2400 has a credible argument that this work is not de minimis: it should not be difficult to record the additional time it takes to go from one station to another, in the aggregate the fire fighters would have a sizable claim, and it appears that picking up turnout gear is picked up on a regular basis. As to the second issue regarding whether the fire fighters’ annual leave payout should be included in the regular rate of pay for calculating overtime compensation, the FLSA requires the inclusion in the regular rate of all remuneration for employment except for seven specified types of payments, including discretionary bonuses, gifts, pay for periods when no work is performed such as a holiday or vacation day, and premium payments. 29 USC § 207(e). Section 9.1 of the current Memorandum of Understanding (“MOU”) between the Menlo Park Firefighters’ Association Inc. and the Menlo Park Fire Protection District sets forth an annual leave program. This program provides employees hired on or after July 1, 1996 with annual leave in lieu of separate vacation and sick leave. Notably: Should an employee elect not to use all of his/her accrued leave during the course of the calendar year, the District will “buy back” unused annual leave on an hour for hour basis, up to a maximum of one-half of the employees annual accrual, less the number of hours needed to ensure that an employee who works a standard week of 56 hours has 480 hours in his/her extended sick leave bank account and 320 hours for an employee who works a 40 hour standard work week…Buy back of unused annual leave shall occur at the end of each calendar year. These payouts are analogous to attendance or other non-discretionary bonuses, which should be included in the regular rate of pay that is the basis for calculation of overtime. The District has interpreted 29 CFR 778.219(a) to read that any lump sum payments for time not worked in the form of vacation cash outs cannot be included in the regular rate. Therefore, it has taken the position that these payments are not included in the regular rate, as they are payments made for periods during which the employee performs no work due to a holiday or vacation, and therefore would be excluded.


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The District has failed to distinguish between two situations: (1) where an employee forgoes certain holidays or vacation days but still receives the holiday or vacation pay; and (2) the situation here, where the employer has created a program to reward employees who have not exhausted all their available vacation or leave days in the year. Given the case law and DOL Opinion Letters on this topic, these Local 2400 members have a reasonable argument that annual leave payouts should be included in the regular rate, and thus factored into overtime calculations.

Cases Handled Under the IAFF’s Amicus Policy Borough of Duryea v. Guarnieri: The IAFF approved the filing of an amicus brief with the US Supreme Court in this case which involves whether public employees may successfully sue their employers for retaliation under the First Amendment’s “petition” clause without having to show that the subject of their “petition” was a “matter of public concern.” The IAFF was asked to file an amicus brief by counsel for the respondent, who is the police chief for a small borough in Pennsylvania, and who was retaliated against for having filed a personnel grievance against his employer. Although he won his constitutional retaliation case in federal court, his chances before the Supreme Court are not good, insofar as the Third Circuit Court of Appeals (the appeals court that ruled in his favor) is the only circuit court that has held that “petition” claims do not have to relate to matters of public concern (whereas ten other circuit courts have held that they do). During a recent meeting at the AFL-CIO regarding this case, the Federation indicated it was filing an amicus brief in support of the respondent. Consistent with the Federation’s policy and past practice on such matters, it asked the IAFF and other interested affiliates not to file their own briefs, but instead to work with them in preparing their brief. This is the right approach to take in this case, and it is certainly more cost effective to make the IAFF’s views on this issue known through the Federation’s brief, instead of preparing its own separate brief. IAFF Local 188 v. Public Employees Relations Board [City of Richmond, CA]: This case involved the important issue of whether local governments must negotiate with a local union over a decision to reduce staffing levels and make layoffs where the union asserts that the effect may be to endanger fire fighters’ safety. This litigation grew out of an unfair labor practice charge filed by IAFF Local 188 against the City of Richmond in 2004. The Local claimed that the City violated the Meyers-Milias-Brown Act (“MMBA”), the primary state law covering local government labor relations, by failing to meet and confer regarding the City’s decision to reduce staffing levels. The Local filed the charge after the City laid-off 18 fire fighters, which it asserted was necessary because of a severe budgetary crisis. The City also initiated reductions in the number of fire fighters employed on each shift. The Public Employment Relations Board (“PERB”) rejected the Local’s unfair labor practice charge, finding that “the decision to lay off employees is not subject to bargaining”. The Local then amended its charge, focusing on the safety and consequences of the layoffs, alleging that the City was placing fire fighters at risk by reducing the number of fire fighters, trucks and engines that could respond to a fire. The PERB also denied the amended charge. Local 188 instituted an action in Contra Costa Superior Court seeking to overturn the PERB’s adverse rulings. The Judge denied the Local’s petition for review (a writ of mandate), citing the 1974 decision of the California Supreme Court in Fire Fighters Union v. City of Vallejo. In the Local’s further appeal, the state Court of Appeal determined, among other things, that the Local’s burden was to show that PERB committed clear legal error. With respect to the merits, the appellate court ruled that PERB was correct in interpreting the MMBA and the Vallejo decision as obligating municipalities to negotiate over workplace and safety concerns resulting from layoffs (that is, the effects of layoffs), but not over the employer’s decision to lay off employees. The Court of Appeal noted that “Local 188’s attempt to recast the layoff decision as a reduction in shift staffing does not transform it into a proper subject of collective bargaining.” The Local then submitted a request to the California Supreme Court to


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review the case, and to ‘depublish’ the decision of the appellate court. The high Court accepted the case for review to decide the following issues: (1) Is the decision by the PERB not to issue an unfair labor practices complaint under the MMBA subject to judicial review? (2) Is a decision to lay off fire fighters for fiscal reasons a matter that is subject to collective bargaining under the Act? Some persons expressed reservations about having the state Supreme Court rule on the bargaining question because most of the Judges who currently sit on that Court are conservative, and that the risk of an adverse decision could have a substantial, negative impact. On behalf of the IAFF, an amicus brief was filed with the state Supreme Court. The CPF, and the California League of Cities and the California State Association of Counties, also filed amicus briefs. Recent Developments: On January 24, 2011, the Judges on the California Supreme Court unanimously ruled that local government employers do not have to negotiate with unions before deciding to lay off workers to save costs. Once the employer unilaterally makes the layoff decision, however, it must then negotiate over the implementation or effects of its decision, including the number of employees to be laid off, the timing, and the impact on “the workload and safety of the remaining employees.” On the first question, the high Court determined that courts have the authority to review the PERB’s refusal to issue an unfair labor practice complaint if it is claimed that the PERB’s position is based on a clearly erroneous statutory interpretation. But here, the state Supreme Court agreed with the PERB that employer decisions to cut the workforce for financial reasons are not subject to collective bargaining. On the second question, the high Court affirmed the ruling of the Court of Appeal, that when a city, “faced with a budget deficit, decides that some fire fighters must be laid off as a cost-saving measure, the City is not required to meet and confer with the firefighters’ authorized employee representative before making the initial decision. In this situation, the city’s duty to bargain with the employee representative extends only to the implementation and effects of the layoff decision, including the number and identity of the employees to be laid off, and the timing of the layoffs.”

Other Cases Handled Under the Front Line Policy Regina Galloway v. E-ONE, Inc., et al [Kilgore, Texas] and Robert King v. E-ONE, Inc., et al [Kilgore, Texas] and James Sanders v. E-ONE, Inc., et al [Kilgore, Texas] and Gary Tyson v. E-ONE, Inc., et al [Kilgore, Texas]: The mother of Cory Galloway, Regina Galloway, filed this lawsuit in the District Court for Gregg County, Texas, against E-One, Inc., Hall-Mark Apparatus of Texas, and the City of Kilgore in connection with the tragic death of her son. The case is being pursued under the International’s Front Line Policy, which provides legal assistance where an IAFF member has been killed or seriously injured in the line-of-duty as a result of defective products or the negligence of a third-party. Cory Galloway, 23, was a member of IAFF Local 2996 and a career fire fighter employed by the City of Kilgore Fire Department when he was killed while on-duty during a training exercise on January 25, 2009. The Fire Department had accepted delivery of an aerial platform truck just weeks before the training exercise. Galloway was in the truck’s aerial platform, which was extended to the roof of the tallest building in the City of Kilgore, an eight-story dormitory at Kilgore College, when the aerial platform became stuck on a concrete parapet wall on the roof of the building. As Galloway’s fellow fire fighters attempted to free the aerial platform, the top edge of the wall gave way and the platform sprang back from the top of the building and repeatedly whipped violently back and forth. During the incident, the platform gates sprung outward past their stopping points, through which Galloway fell over 80 feet to the ground below. The aerial platform truck, manufactured by E-One, Inc., and sold to the City of Kilgore Fire Department by Hall-Mark Fire Apparatus of Texas, failed to include safety belts or otherwise comply with the standards set by the National Fire Protection Association. The aerial platform was not designed to minimize the risk that the lifting eyes would become snagged on buildings. The platform gates were not designed with adequate restraining strips or latches requiring turning or twisting motions to open, which would


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have prevented the gates from springing outward past their stopping point. The Kilgore fire fighters had not received adequate training from either E-One, Inc., as requested by the Kilgore Fire Department, before they were required to operate the aerial platform unsupervised in a high risk training scenario. The aerial truck was the first platform apparatus purchased by the Fire Department and the fire fighters had never operated the platform near a building. IAFF General Counsel has retained an expert witness and completed the inspection of the L-1 aerial platform truck involved in the incident. The case is moving forward with discovery (requests for production of relevant documents, written interrogatories, etc.) against the defendant manufacturer of the truck (E-One, Inc.) and the distributor (Hall-Mark Fire Apparatus-Texas). In addition, General Counsel has been retained by three other IAFF members who were involved in this tragic incident. Robert King was in the bucket when Cory Galloway was ejected; King was thrust against the metal speaker and broke his sternum. James Sanders was also in the bucket at the time and he was operating the controls. While he was not seriously injured at the time, he has suffered from severe anxiety and emotional harm because he has felt personal responsibility for the tragedy. Gary Tyson was at the training scene, and he was the first fire fighter to run to Cory Galloway. He turned Cory’s body over and began to administer CPR. All three of these members have undergone substantial therapy and professional counseling and it is unlikely that the mental and emotional damage they have suffered will significantly diminish. These three additional cases were filed with the District Court in Gregg County, in January, 2011, also under the International’s Front Line Policy.

Other Cases Handled by General Counsel Michael Pruitt v. IAFF, Longview Fire Fighters Association, Local 4331, et al. (Texas): This suit was recently filed alleging that the International, Local 331 and several of the Local’s officers engaged in various acts and omissions in violation of the rights of the plaintiff, former Fire Chief Michael Pruitt. According to the Complaint, Pruitt was hired by the City on November 1, 2007 and served as Fire Chief for the City of Longview, Texas. He alleges that after he was hired as Fire Chief he was singled out, ostracized and undermined by officers and members of Local 4331 due to his race. Pruitt also claims that beginning in January, 2009, Local 4331 initiated a public campaign which included spreading untrue information, challenging his authority and asserting that he was not qualified to manage the Fire Department. Pruitt was ultimately terminated on November 12, 2009. The Complaint alleges that “[w]ith full knowledge of the foregoing saga, at no point did IAFF, Local 4331 or anyone associated with either of these organizations offer to, or agree to, assist Chief Pruitt in his plight. In fact, they worked underhandedly, secretly, and sometimes not so secretly, to facilitate and bring about his termination from the position.” Specifically, in the Complaint, Pruitt makes four claims: that the defendants “aided, abetted, incited or coerced other persons to engage in behaviors of discriminatory practices,” in violation of 21.056 of Texas Labor Code (Count I); that the defendants committed the tort of Intentional Infliction of Emotional Distress (Count II); that the defendants owed the Fire Chief a fiduciary duty because he was, at all relevant times, a member in good standing of both the Local and the IAFF (Count III); and that the defendants tortuously interfered with his employment relationship with the City of Longview (Count IV). On January 10, 2011, General Counsel Woodley filed a pleading with the local state court, and a sworn Affidavit from General President Schaitberger, seeking a dismissal of the Complaint against the IAFF. In that response, it was pointed out that there was no basis in fact or law to support Mr. Pruitt’s charges against the IAFF of any breach of fiduciary duty or tortuous conduct. Moreover, no officer or employee of the IAFF has any personal knowledge of the facts or circumstances alleged in Pruitt’s Complaint, nor does the Complaint make any specific factual allegations concerning the IAFF, its officers, or employees. In the submission to the Court, it was pointed out that International unions are distinct legal entities and, absent an agency relationship, are not vicariously liable for the activities of their locals or members. The IAFF’s Constitution and By-Laws ensures the autonomy of


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every local affiliate. Article I, Section 2 of the Constitution explicitly states that: “[t]he International and its subordinate affiliates are separate and autonomous bodies. As such, liability for the conduct of any subordinate organization shall not be imputed to this International by reason of affiliation between the subordinate organization and the International.” Local autonomy includes the authority and responsibility of each local union to determine for itself its positions on local matters. Such local matters include the structure, operation, control and finances of the affiliate, the selection of its officers, the nature of the affiliate’s relationship with the employer and its members, and the review and handling of member grievances and requests. Each local affiliate establishes and prioritizes its goals and determines the strategy, tactics, and means by which it will achieve those goals without control or interference from the International or any other IAFF affiliate. In the IAFF’s pleadings filed with the Court, it was also noted that the International conducts its business solely through its own officers and designated representatives. Under the International’s Constitution, local affiliates are not empowered to, and do not in fact, transact the business of the International. Similarly, the International is not empowered to, and does not in fact, transact the business of its affiliated locals, including Local 4331. Local 4331 has at all times selected its own officers, agents, and representatives. Neither Local 4331 nor any of its current or former officers or members could have been, or were in fact, the agents, servants, employees or representatives of the International or its officers, and none of the alleged activities by Local 4431 or any Local officer or member were within the scope of any agency relationship with the IAFF. The Local Court has yet to rule on the IAFF’s request that the plaintiff’s Complaint be dismissed. Pablo Gutierrez, EEOC Charge, McAllen, TX: Pablo Gutierrez included the IAFF as a co-respondent in his EEOC charge of discrimination against the City of McAllen with regard to disciplinary action imposed on him by the fire department. A statement of position was submitted to the San Antonio office of the EEOC indicating that the IAFF has no involvement whatsoever in this local matter, either as a bargaining agent or otherwise. The EEOC issued the charging party a ‘Notice of Right to Sue’, which is typically requested by a charging party who plans to pursue the claim in court. Here, however, Mr. Gutierrez has not sued the IAFF within the applicable time limit, and consequently, this matter is closed.

Opinion Letters Under the IAFF’s Guardian Policy Local 4518, Tri-City District, AZ: (Suspension and demotion of Local President); Local 4238, Wilson County, TN: (Severance of Local President).

IAFF Second Legal Opinions Under the EDF Policy

Local 4758, Ketchum, Idaho: (City’s refusal to reduce temporary agreements to writing) Local 4815, Eagle, CO: (Alleged retaliation for workers’ compensation claim) Local 73, St. Louis, MO: (Enforcement of residency requirement) Professional Fire Fighters Association of Alabama: (State law prohibiting salary deductions for political activities) Local 3963, San Marcos, TX: (Disclose of Local President’s cell phone records and text messages under state’s Public Information Act)


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Local 3609, Mission, TX: (Court enforcement of Arbitration Award) Tennessee Professional Fire Fighters: (State law prohibiting salary deductions for political activities) Local 176, Tulsa, OK: (Mayor’s Executive Order prohibiting employees’ political activities)

Other Legal Opinion Letters Were Prepared in the Following Matters Local 176, Tulsa, OK: (Overtime pay for arson investigators) Local 4191, Golden Valley Fire District, AZ: (Compensation for working in acting position) Local 1305, Prichard, AL: (Minimum wage for regular hours) Local 4155, Chubbuck, ID: (Payment and use of compensatory time) Local 629, Monroe, LA: (FLSA work period under labor contract) Local 4361, EL Mirage, AZ: (Crediting employees’ sick and vacation leave) Local 41, Pine Bluff, AR: (Averaging work hours for overtime purposes) Local 869, Leadville, CO: (FLSA work periods and including pay elements in regular rate of pay) Local 2882, Strongsville, OH: (Computing regular rate for overtime purposes)

Miscellaneous Matters Record of Guardian Policy Legal Opinion Letters, in the Four-Year Period from January, 2007 through December, 2010: In the four-year period from January, 2007 through December, 2010, IAFF General Counsel Tom Woodley has submitted a total of 80 Legal Opinions to the General President in response to applications from affiliates for assistance and representation under the International’s Guardian Policy. Of that total, almost one-half (37) of the opinion letters recommended to the General President that the application did not qualify for coverage under the Guardian Policy due to lack of merit, absence of factual support, controlling law, etc.. 30 percent (24) of the opinion letters recommended a ‘wait-and-see’ approach where, typically, the Local already had an attorney who was actively pursuing an administrative course of action and it seemed to be prudent and more cost-effective to continue on that path. Nineteen of the opinion letters recommended to the General President that the matter qualified for Guardian Policy coverage. Most of the cases in this category have been handled in a way that included not only claims for make-whole relief to remedy the wrongdoing, but also the opportunity for the recovery and reimbursement of attorneys’ fees and out-of-pocket expenses in the event there was a successful conclusion through a negotiated settlement, court decision, or jury verdict.

LEGAL COUNSEL’S REPORT Legal Department Activity: During the last reporting period (from October 21, 2010 through February 3, 2011), the Legal Department has handled requests for assistance related to 364 substantive matters


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from our District Vice Presidents and (with the approval from the District Vice Presidents) our local affiliate officers. Recent Regulatory Developments: (1) The federal Office of Personnel Management (OPM) recently proposed a revision of the definition of “national security positions”(which positions entail certain heightened security requirements) and the procedures for evaluating and designating positions of employment as “national security positions.” These regulations would apply solely to federal employees. IAFF Legal staff conferred with several national labor organizations who represent federal employees and crafted comments for OPM’s review process. The comments object to certain aspects of the proposed revision. (2) The Office of Labor-Management Standards (OLMS), an agency within the U.S. Department of Labor, released a “Request for Information” regarding online voting, initiating what may be a lengthy process for developing new regulatory language under the Labor-Management Reporting and Disclosure Act (LMRDA, commonly known as Landrum-Griffin). With the current regulatory framework established by the U.S. Department of Labor, online or electronic voting is not considered to meet the “secret ballot” requirement for elections under the LMRDA. IAFF legal staff will be meeting with a working group, established by the Lawyers Advisory Panel of the AFL-CIO, to develop a detailed response to OLMS’ notice. Publications: Internet Manual. Legal Department attorneys completed a new resource book for affiliate leaders on the legal rights and responsibilities of members, officers, and affiliates – and employers – when it comes using online media. As more and more members blog, text, tweet, Facebook, Meetup, post, email, or g-chat, the legal and workplace pitfalls of that activity are becoming a critical battleground. Communicating with members using these media also present legal concerns for affiliates and their officers. The manual is drafted in a question-and-answer format to help educate officers on these ever-developing issues. Topics covered include online voting, employer internet and social media policies, employee privacy, web and bulletin board hosting, discipline for online activity. The manual is download-only, and available to any affiliate officer registered on the IAFF web site. Trainings and Presentations: IAFF Legal Counsel Baldwin Robertson conducted presentations at the Affiliate Leadership Training Summit (ALTS) on the FLSA and on line of duty deaths and injuries. He also conducted a short presentation on online media and related topics for the DFSR Training, and a human relations panel for the Labor-Management Initiative. IAFF Assistant Legal Counsel Jim Larkin conducted trainings on the First Amendment and related remedies at ALTS. Personnel Changes: Paralegal Juan Romero joined the IAFF Legal Department in early 2005 and brought his considerable skills to bear on a wide range of topics, including Emergency Disputes Fund (EDF) applications and increasing affiliate access to Legal Department resources and information through the IAFF web site. He has transferred to the IAFF’s new Pension Resource Department to help develop the IAFF’s responses to increasing attacks on fire fighter pensions and retirement security. Jim Larkin, IAFF Assistant legal Counsel, joined the firm of Woodley & McGillivary as an associate in 2006 to work in the IAFF’s legal Department. As one of the IAFF’s in-house attorneys, Jim assisted IAFF staff, as well as countless affiliates, on personnel and legal issues. He now will bring his legal knowledge and skills to the General Secretary-Treasurer’s office as the IAFF’s new Human Resources Director. Article XIX Jurisdictional Complaints: City of Saint Paul, Minnesota. Reference is made to the notes of the June, 2010 Board meeting for the background information on this matter. At the request of the District Vice President, the General President continues to refrain from issuing a determination in the hope that the parties may resolve their dispute. City of Peoria, Arizona. Reference is made to the notes


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of the June and November, 2010 Board meetings for the background information on this matter. A hearing before an arbitrator has taken place. As of the time of submission of this report, the arbitrator’s decision has not yet been issued. Article XX Charges: There are no pending Article XX charges (under the AFL-CIO Constitution) involving the IAFF. Appeals Before the General President: Appeal filed by Myron Boggess (Charleston, WV). Reference is made to the notes of the November, 2010 Board meeting for the background information on this appeal made of a trial board decision issued originally on June 4, 2010. On September 20, 2010, the General President issued a detailed analysis of the evidence and ordered the trial board to issue a final decision. The trial board issued a final decision removing the charged party, Scott Lewis, from membership in Local 317. Neither party to the original trial board appealed the final decision. The matter is closed. Appeal of Jason Singleton (Orange County, FL). A member appealed the conduct of a special election, asserting that Local 2057’s Constitution and By-Laws established a majority vote requirement to elect a candidate during a Special Election, and that a run-off election should be held between the two candidates who received the highest number of votes during the first ballot. Because the IAFF has consistently held that a local must comply with the express language in its Constitution and By-Laws, the General President issued a decision on January 14, 2011 ordering a new election. The important distinction made in the appeal decision was between plurality and majority votes; specifically, U.S. Department of Labor guidance, Robert’s Rules, and Atwood’s Rules all emphasize that a “majority vote” requirement does not simply mean that a candidate requires only the “most votes cast.” That is properly understood to be a plurality requirement. The term “majority vote” instead indicates the necessity of obtaining more than 50% of all votes cast. Thus, where an elections procedure or a local constitution states a “majority vote” requirement, no candidate is elected until he or she receives more than 50% of all votes cast – if necessary, through a runoff election. The IAFF has regularly counseled affiliates with majority vote requirements to establish a runoff process or to amend the local’s constitution and by-laws to switch to a “plurality” vote system, according to the affiliate’s preference. Appeal filed by Mike Doyle, President of Local 1595 (Vaughan, ON). In this appeal, filed on November 30, 2010, the charging party of a trial board appealed the verdict of the trial board, which found the charged party not guilty of the charges. At the hearing, the charged parties appeared but refused to testify; although they pled “not guilty” they did Page 4 not deny any factual statements, rebut any evidence, or contradict the accusation of misconduct. In addition, the charging party presented substantial evidence that the charged parties had engaged in secondary activity in violation of Article XV, Section 1(N) of the IAFF Constitution and By-Laws. For example, the charging party presented a copy of a newspaper article showing that one charged party was recently honored by the City of Caledon, Ontario, for “20 years” of “continuous service” as a “volunteer fire fighter.” He also produced a photograph of a duty roster listing the other charged party as serving as a fire captain for Caledon. Although the charged parties’ representative objected to the evidence in general terms, he admitted that it tended to show that the charged parties had engaged in “two-hatting” or otherwise working for Caledon as parttimers. Moreover, the charged parties’ refusal to testify in their defense, or to deny in substance the charges, established a presumption against them. The General President remanded the decision back to the trial board to consider the substantial evidence in light of his analysis, and to determine a penalty for the charged parties. Copies of these decisions are attached to this report. Affiliate Constitution and By-laws: During the reporting period, the Legal Department received 140 requests for review of local and state/provincial association constitutions and by-laws.


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DEPARTMENT REPORTS The Assistants expanded on the General President’s and General Secretary-Treasurer’s reports of their activities and functions in their respective departments.

COMMITTEE REPORTS

Budget and Finance Committee Report Financial Statements and Investment: Staff informed the Committee that the general fund reflects a balance of $7,543,267 as of December 31, 2010. Comptroller Copley commented that the EDF balance is strong at $3,334,000. The IAFF Reserve Fund stands at $6,231,377. Overall, the General Fund had a positive increase of over $500,000. The Committee then reviewed our investments. The AFL-CIO Housing Investment Trust has proven to be a good investment. We have an unrealized gain of $366,570 to date due to an increase in market value over the original cost and interest earned. Next the Committee reviewed the Income Status Report for the quarter ending December 31, 2010. The budgeted rollover was $1,650,336 yet the actual rollover was $1,923,913. This resulted in an additional rollover of $273,577. There was some confusion over the description of expenses from consultants versus service fees for the service representatives. Going forward, the service line will be used strictly for service expenses. The actual per capita was $8,195,203 to date compared to the budget of $8,085,420. This results in a $109,783 favorable variance available to be transferred to the Reserve Fund. Trustees Report: The Committee received an overview from the Trustees. A detailed report will be provided at this Executive Board meeting. Trustee Ouellette mentioned there could potentially be cost savings in license and registration fees as a result of bringing charities under one umbrella. Trustee Ouellette stated that we continue to receive expense vouchers late. This presents a problem as we must reconcile expenses at year end. This practice costs the IAFF money and is a noted deficiency. Audit RFP: The trustees have developed a RFP for auditing services. Firms have been selected to receive the RFP which will be sent out within the next week. Once proposals are received a review and interview process will begin. The target date for completing the entire process is July 1. Audit Report: Larry Stokes presented a brief overview of the audit report; a detailed report will be provided at this Executive Board meeting. Mr. Stokes stated the report is a clean opinion, with no qualifications. Larry Stokes then mentioned two areas where he recommends we make improvements. A material weakness is noted in supporting schedule inaccuracies. A significant deficiency is noted in untimely reconciliation of account balances. Mr. Stokes will provide details at the Board meeting. The General Fund shows $36 million in revenue with $37 million in expenses resulting in a $1.1 million loss position. The bottom line reflects net assets/equity at the end of the year with a $2,893,567 deficiency in net assets in the general fund. This is caused by accounting rules that seek to show expenses even when nothing is spent. The FASB 158 Pension issue continues to exert a downward pressure on our fund balance. In addition, we now must book a large rent liability based on future increases over the next eight years. We are doing research to determine the impact of receiving a qualified auditor’s report. This change could potentially free us of $28 million artificial liability, however, this could potentially affect our ability to receive grant funding. Chairman Todd informed the Committee that the General Secretary-Treasurer sent a memo out to state and provincial representatives to reiterate the importance of submitting receipts to their District Vice Presidents in a timely manner. This action was the result of a recommendation from District Vice President Ferguson at the last board meeting.


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“Fighting Back” Campaign: General President Schaitberger briefed the Committee on a request for additional funding to support the “Fighting Back” campaign. This would result in a temporary commitment of additional resources to support state, provincial and local affiliates in responding to anti-union attacks. The Committee discussed the benefits of funding this special project. On behalf of the committee, a Motion was made by Vice President Todd to approve the “Fighting Back” project to be funded as needed prior to year end by a line-of-credit from the reserve fund with a current projection of $1,488,663 and create a new line in the budget to track the expenditure of the “Fighting Back” project. Motion passed unanimously.

Canadian Affairs Committee Report Canadian Legislative Conference: An update on the upcoming 18th Canadian Legislative Conference was provided. A discussion took place about current speculation that the federal budget will be delivered in the third week of March, which could result in the possibility of a federal election being called for early May. The Canadian Office will monitor the situation and locals should be encouraged to hold off booking flights as long as possible and/or make sure their travel arrangements are transferrable to another date. Canadian 9-11 Fund: Motion was made by General President Schaitberger that the remaining proceeds in the Canadian 9-11 Fund be transferred to the Canadian Fallen Fire Fighter Fund. Motion was seconded and Adopted unanimously. Biennial Canadian Policy Conference: An update about the 2011 Biennial Canadian Policy Conference was provided, including information about the date and location - August 20-24 at the Hilton Suites in Markham, Ontario. Harvard/Ottawa U Executive Leadership Program – IAFF Scholarship: An update was given about the Harvard University and University of Ottawa Executive Leadership Program. A scholarship application form has gone out to Canadian IAFF affiliates. The program is to commence this May, and applications must be returned by March 21. It was confirmed what is covered under the scholarship: transportation, accommodation, expenses and tuition and books. There are two scholarships covering three modules through 2011-12. Ontario Trial Boards: Vice President Carpenter provided an update on trial boards currently taking place in Ontario. The Vaughan trial board (secondary employment) resulted in an appeal and a subsequent ruling from the General President to remand the trial board to review the decision. The Central York trial board (also secondary employment) is complete and a ruling is awaited. There are pending trial boards in Toronto (secondary employment - Toronto member charged by Barrie for working in Innisfil which impacts Barrie), and Burlington, which involves a local treasurer’s use of union funds. Canadian Political Training Academy: A draft agenda for the Canadian Political Training Academy was provided. The draft agenda and budget have gone to the GP and are awaiting his recommendation. The academy is set to run May 30 to June 1 in Ottawa. Mandatory Retirement: Vice President West updated the Canadian Affairs Committee on recent issues in B.C. concerning non-operations staff seeking to stay beyond age 60. Current contract language requires all to go at age 60, and there is the potential for a human rights complaint. Vice President West explained there are pension issues for those staying beyond 60 and issues for the employers as well.


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Education and Training Committee Report Affiliate Leadership Training Summit (ALTS): Staff reported that the Education Department has recently completed its most successful Affiliate Leadership Training Summit (ALTS). There were 1,113 affiliate leaders who attended the conference, where 95 workshops were conducted and 24 were new or revised topics. In addition, there were two pre-conference events “Fire Ground Survival program” that had 55 participants and the revised “New Leadership Seminar” that had 345 paid attendees. Some additional ALTS highlights include:

• Attendance grew by 9% compared to the 2010 ALTS; • A total of 215 instructional hours offered to affiliate members over the course of ALTS; • The highest rated workshops were – the Pension Administration workshops, Secretary,

Treasurers and Taxes breakout and the New Leadership Seminar; • When asked what they liked best at ALTS, the highest number of replies by respondents was:

the number and variety of workshops offered at ALTS; the ability to network/interact with other members; and the level of expertise by workshop instructors.

Instructional Videos: In a new initiative, staff reported that the Education Department had 22 hours worth of instruction videotaped during ALTS. At present the department is in the process of having those videos digitized and placed on the IAFF web-site. The web-site videos will allow members who were not able to attend ALTS get vital information that was presented. 2012 ALTS: The Education Department is beginning the process of planning the 2012 ALTS, which will be held in Lake Buena Vista, Florida, at the Buena Vista Palace Hotel the week of January 22, 2012. The biennial Ernest A. “Buddy” Mass Human Relations Conference once again will be held in conjunction with 2012 ALTS. Penn Foster: Currently the Education Department is finalizing the contract with Penn Foster. The Penn Foster agreement will provide further opportunities for IAFF members to exclusively enroll in an online fire science degree program.

Emergency Disputes Fund Committee Report Local 244, Albuquerque, NM: 850 member local, monthly dues $41, starting salary $3,882. The local has submitted a request for a grant. However, the Committee noted that the Local is substantially behind in its per capita payments to the International. The Local has promised to substantially increase its regular per capita payments each month until it comes current on its per capita. Therefore, without deciding on the grant application, Motion was made by Vice President Taylor on behalf of the Committee to defer action on this application until the June Board meeting. Motion was Adopted unanimously. Local 3279, Los Alamos, NM: 112 member local, monthly dues $50, starting salary $3,000. This request relates to a lawsuit filed by the local in state court to invalidate provisions in the local’s collective bargaining agreement that grant Los Alamos County final and binding authority to impose any settlement after impasse regardless of a fact-finder’s decision. The local received a legal opinion from the General Counsel’s office that the local has a reasonable chance of proving that the CBA provisions at issue violate the county Ordinance and state’s collective bargaining law. The local has previously received $2,556.18 in EDF grant assistance related to this matter and has submitted additional invoices for consideration at this board meeting totaling $2,187.60, for which it would be eligible for an


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additional grant of $1,750.08. Motion was made by Vice President Taylor on behalf of the Committee that Local 3279 receive an additional grant of $1,750.08. Motion was Adopted unanimously. Local 157, Oklahoma City, OK: 1,538 member local, monthly dues $68, starting salary $3,451. This request is for litigation following the action of an interest arbitration panel decision to strike the City’s last best offer, after determining the city committed an unfair labor practice by unilaterally changing contract language. The contract language had not been subject to bargaining. The panel also decided to block the city from presenting its last best offer, along with Local 157’s, to voters in a special election to decide between the two offers. The City filed suit and the court ruled partly in favor of the City. Both sides have appealed. The local received a legal opinion from the General Counsel’s office analyzing the Oklahoma Fire and Police Arbitration Act and concluding that the arbitration panel exceeded its authority in striking the city’s last best offer, in preventing the city from presenting its last best offer to voters, and because the exclusive jurisdiction to redress an unfair labor practice rests with the state Public Employees Relations Board (PERB). Motion was made by Vice President Taylor on behalf of the Committee that Local 157 receive a grant of $25,537.79. Motion was Adopted unanimously. Local 3609, Mission, TX: 45 member local, monthly dues $37, starting salary $3,083. In April 2010 an officer of Local 3609 was terminated for inappropriate conduct while on duty. The local appealed, and in December 2010 an arbitrator ruled that the alleged violations did not merit termination and ordered that the member be reinstated with back pay less a 10-day suspension. The city filed suit in state court on grounds that the arbitrator exceeded and/or lacked jurisdiction, and in December the court issued a final judgment in the member’s favor. The city has filed a notice of appeal. The local received a legal opinion from the General Counsel’s office concluding that the city’s appeal will most likely be denied because it is based on disagreement with the arbitrator’s decision and not grounded in a misapplication of the law. This request is only for the court fees for enforcement of the arbitration award, not for the arbitration itself. Motion was made by Vice President Taylor on behalf of the Committee that Local 3609 receive a grant of $7,200.02. Motion was Adopted unanimously. Local 2213, Pelham, NY: 16 member local, monthly dues $80, starting salary $6,100. In July 2010, Local 2213 President Robert DeStasio was suspended without pay for 30 days as a result of a telephone call asking for the Village Administrator’s presence at a fire scene. President DeStasio had observed that health and safety protocols were not being followed. He then was placed on administrative leave, denied a hearing, and prohibited from entering the fire house. The local has filed administrative charges challenging the action. The local submitted an application for Guardian Policy assistance, and the General Counsel concluded that there was evidence to demonstrate that President DeStasio was disciplined for his union activities. The local has previously received $3,834 in EDF grant assistance related to this matter and has submitted additional invoices for consideration at this board meeting totaling $3,999.44, for which it would be eligible for an additional grant of $3,199.55 (80%). In November 2010 the parties reached a favorable settlement. This matter is now closed. Motion was made by Vice President Taylor on behalf of the Committee that Local 2213 receive a grant of $3,199.55. Motion was Adopted unanimously. Local 3170, Monroe Township, NJ: 50 member local, monthly dues 1.25% of base salary, starting salary $3,082. Local 3170 filed a ULP and a lawsuit in state court challenging the elimination of the only two full-time, career firefighter positions in Monroe Township Fire District #1. The charges were filed over repeated threats by the fire district board to eliminate career firefighters and allege that the two members were laid off in retaliation for trying to bargain for salary increases. In the lawsuit the local asserts that the fire district did not follow procedures required under the Exempt Firemen’s Act and that


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it failed to provide the two firefighters proper notice that their employment and possible termination would be discussed at a board meeting. Motion was made by Vice President Taylor on behalf of the Committee that Local 3170 receive a Loan of $33,170.18. Motion was Adopted unanimously. Local 2355, Sheffield Lake, OH: 12 member local, monthly dues $90, starting salary $4,137. Local 2355 is requesting EDF assistance on two separate matters. First, in October 2009 the local obtained a favorable arbitration award on a contract grievance in which the city was found to have violated the collective bargaining agreement by prohibiting bargaining unit members from exercising their right to bank “earned time off” and requiring that it be taken during the calendar year in which it was earned. Invoices supporting the local’s request for a $16,540 loan for legal fees related to this matter have been submitted. On a separate matter, the local is pursuing a disciplinary grievance arbitration challenging the suspensions of a lieutenant who the city alleges failed to properly supervise a subordinate and a firefighter who allegedly disobeyed an order to provide a statement to investigators regarding events at a fire scene. The union does not allege anti-union animus by the city. Invoices supporting the local’s request for a $1,892 loan for legal fees related to this matter have been submitted. The first matter qualifies for assistance but, since the second matter only relates to an ordinary grievance routinely pursued by affiliates, the Committee recommends denial of the second matter. It recommends a loan for the first matter. Motion was made by Vice President Taylor on behalf of the Committee that Local 2355 receive a loan of $13,232. Motion was Adopted unanimously. Local 42, Kansas City, MO: 1,750 member local, monthly dues $108, starting salary $3,970. The Missouri Earnings Tax Initiative, Proposition A is a state law enacted through the initiative process that was approved by Missouri voters in November 2010. Proposition A requires voters in Kansas City to hold a referendum in 2011 and every five years thereafter on keeping the city’s earnings tax, which is a 1 percent levy on the income of persons who live or work in the city. If rejected, the earnings tax would be phased out over a ten year period and could not be reinstated. The tax currently accounts for approximately 40 percent (over $200 million) of Kansas City’s revenues and is the primary source of funding for fire, rescue and emergency medical services. A referendum vote on the earnings tax is scheduled for April 5, 2011. Local 42 is engaged in a coordinated campaign effort to ensure renewal of the tax and has made a $150,000 contribution to the “Save Kansas City” committee, an organization of civic and business leaders. Local 42 is requesting a $50,000 EDF grant in support of its efforts to save the tax. If the tax were to be repealed, the potential adverse impact on the city’s funding for fire services may result in significant loss of jobs and/or stations. The local submitted an outdated version of the EDF application. Motion was made by Vice President Taylor on behalf of the Committee that Local 42 receive a grant of $40,000. Motion was Adopted unanimously. Local 2098, Canandaigua, NY: 6 member local, monthly dues $70, starting salary $3,350. This is a late application and requires unanimous board approval for consideration. Local 2098 is requesting EDF assistance to combat the city’s reduction of its career force from 14 to six firefighters and to prevent it from turning over fire protection duties to volunteers. The local has filed an improper practice charge that was settled related to the city’s refusal to provide information dealing with plans to turn bargaining unit work over to volunteers; an improper practice charge in which PERB ruled that the city unlawfully changed the schedules of fire inspectors requiring that they perform fire inspection tasks while on duty; and an improper practice charge in which PERB ruled that the city unlawfully transferred bargaining unit work to volunteers because driving and maintaining fire trucks, equipment, and the firehouse are job duties with discernible boundaries which have historically been performed by the bargaining unit. The city was ordered to reinstate laid-off firefighters. The local has previously received $10,672.02 in EDF loan assistance related to separate matters and has submitted additional invoices for consideration at


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this board meeting totaling $26,145.75. The city recently accepted a SAFER grant to rehire half of the firefighters laid off under the department’s cuts. Motion was made by Vice President Taylor on behalf of the Committee that Local 2098 receive a grant of $20,916. Motion was Adopted unanimously. Local 1141, Brook Park, OH: 32 member local, monthly dues $56, starting salary $4,705. In December 2009, the city refused to comply with contractual bargaining requirements and then unilaterally imposed a contract with terms unfavorable to the union. The local filed a ULP and a grievance challenging the City’s actions; the local has since obtained favorable decisions which the City has appealed. The local received a second legal opinion from the General Counsel’s office supporting the merits of the ULP. This matter qualifies for an additional loan because of the unfair labor practice and contract negotiation issues. The Local received two awards on this same matter. One loan was made after the June Board meeting, and the local is paid current on that loan as of December; the other loan was made after the November Board meeting and the local is paid current as of February. The local is also paid current on its per capita. Motion was made by Vice President Taylor on behalf of the Committee that Local 1141 receive an additional loan of $16,278.33. Motion was Adopted unanimously. EDF Award Totals: As of February 21, 2011, the General Secretary-Treasurer has reported the current total in the Emergency Disputes Fund to be $4,008,564. Total EDF monies approved at this meeting:

Loans = $ 62,680.51 Grants = $ 98,604.04 Reclaimed Awards = $ ( 0 )

EDF Attorneys’ Fees: Motion was made by Vice President Taylor on behalf of the committee that the bills from Woodley & McGillivary in the amount of $6,032.56 be paid from the Emergency Disputes Fund for EDF Second Legal Opinions. Motion was Adopted unanimously. Guardian Policy Legal Fees: Motion was made by Vice President Taylor on behalf of the committee that the bills from Woodley & McGillivary in the amount of $5,477.8 be paid from the Fund for Guardian Policy legal opinions. Motion was Adopted unanimously. Guardian Report: Vice President Taylor reported that the following cases were approved by the General President under the Guardian Policy, which will be funded through EDF. This approval must follow the same guidelines as an EDF grant and therefore requires unanimous vote to approve funding. Local 4430 Jeffrey Poole v. City of Plantation, FL: This case involves a discharge of many union leaders for union activities. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $37,372.06 be paid. Motion was Adopted unanimously. Local 4053 Michael Doherty v. City of Maryville, TN: This case involves retaliation for Local's fundraising and political activities. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $13,959.80 be paid. Motion was Adopted unanimously. Local F-297 Andrews AFB, MD: This case involves a government filed grievance for union activities. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $10,390.25 be paid. Motion was Adopted unanimously.


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Local 4633 Duane Minnick v. Currituck County, NC: This case involves a discharge for union activities. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $9,084.56 be paid. Motion was Adopted unanimously. Local 145 San Diego City Employees' Retirement System v. City of San Diego, CA: This precedent-setting case involves representation on Retirement Boards and pension rollbacks. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $4,390.70 be paid. Motion was Adopted unanimously. Local 4016 Damon Reed v. City of Conway, AR: This case involves denied promotions due to union activity. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $4,273.84 be paid. Motion was Adopted unanimously. Local 3685 Paul Nichols v. City of Midlothian, TX: This case involves the discharge of the Local president for union activities. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $4,029.43 be paid. Motion was Adopted unanimously. Local 1318 Swift Current, SK: This case involves a change in union leave. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $3,472.88 be paid. Motion was Adopted unanimously. Local 2779 Cape Breton Regional Municipality FFA (Sydney), NS: This case involves suspension of a local president. Motion was made by Vice President Taylor on behalf of the Committee that the legal bills in the amount of $604.40 be paid. Motion was Adopted unanimously. Guardianship Totals: The total for Guardian cases approved at this meeting is $87,577.92. Favorable court decisions and settlements have occurred in Guardian cases which will result in the return of attorneys’ fees and costs to the EDF fund in the amount of $280,000.

Employee Benefits and Human Resources Committee Report Vice President Gallagher, committee chair, reported the committee met jointly with the Trustees of the two IAFF defined benefit pension plans to hear reports from the Investment Consultant, Investment Managers and Pension Attorney. Headquarter Staff Changes: The Human Resources Department has been restructured. Ken Long is no longer with the IAFF. Jim Larkin from the Legal Counsel’s office has been appointed the Director of Human Resources and General Administration. VJ Naegle, Executive Assistant to Chief of Staff Peter Gorman, retired February 4 after twelve years of service. Mary Travers has joined the IAFF as Mr. Gorman’s Executive Assistant. In the IAFF Canadian Office, Sandra Hamamoto was hired as the new Canadian Governmental Affairs Assistant, grade 8. Jim Cho was hired as a Governmental Affairs Assistant grade 8 in the Washington, DC office. Also Andrew LaVigne has been hired as the new Political Action Assistant, grade 8. The IAFF Budget and Finance Department under the direction of the Comptroller Donald Copley, has been reorganized. Jennifer Harris who had been Director of Budget and Finance is now the Director of Accounting and supervises six staff that are responsible for financial transactions. Lisa Waters, formerly Assistant Comptroller, was promoted to Director, Budget and Membership and supervises six staff who oversee budget and membership operations. Staff reported on the deaths of two former staff members: former 14th District Vice President and Executive Assistant


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to General President Howie McClennan, Raymond Perry and past IAFF Canadian Operations Director Jack Jessop. The Pension Resources Assistant grade 8 position has been filled by former paralegal grade 8 Juan Romero. Scott Dennis has also been transferred to Pension Resources. Jennifer Stewart, formerly the Grants Administrator, has been given the responsibility for directing the new Development Department. The Development Department not only oversees the grants, but also coordinates the efforts of the newly formed IAFF Foundation. The new Development Department is being staffed by Stephen Decker, grade 8. Ronald Benedict was selected to fill the Development Assistant grade 8 position. OPEIU Negotiations: Pete Gorman and Jim Lee reported on the status of negotiations with OPEIU. Staff and Employee Pension Plans: The Committee met with the Trustees of the two IAFF defined benefit pension plans to hear reports from the investment consultant and investment managers for the two pension plans. The investment consultant, Monitoring and Evaluation Services, reported on the performance of the pension fund investment managers: Columbia Management and ICC Capital Management. The investment consultant reported that we saw very good returns last year with the Employees’ Pension Fund’s investment rate of return at 13.31%. The Staff Representatives Pension Fund experienced a 13.05% rate of return. The Employees’ Pension Fund as of December 31, 2010 grew to a market value of $12,310,373; the Staff Representatives Pension Fund grew to a market value of $34,850,382. The investment managers have different styles yet reported similar results. Staying in stocks was key to achieving good results in 2010. The Committee received a detailed report from Mary Beth Braitman, Partner, IceMiller, on the administration and terms of the Employees’ and Staff Representatives Pension Plans. Mrs. Braitman commented on the increasing requirements in terms of filings needed to be in compliance with federal regulations, changes in accounting rules, and the need for more comprehensive IRS filings. Failure to submit timely filings have dire consequences which could include a freeze on benefit accruals. These requirements are the result of the Pension Benefit Guarantee Corporation seeing a significant number of defaults and ultimately having to take over a number of underfunded plans. This environment demands more time and attention to reviewing changes in federal laws and regulations. Over the years our plans have been restated and amended many times, resulting in terminology which is confusing. The General Secretary-Treasurer’s Office has taken an active role over the last six months to ensure the plans are consistent in terms of the language and operation of the plan. Each iteration of the plan has been carefully reviewed. Mrs. Braitman presented the changes needed to correct certain provisions in previous versions of the plan. These changes include changes required to bring the plan into compliance with federal law, changes required to comply with federal regulations, and changes to clarify plan language to reflect actual plan operations. The Committee discussed each of the changes being recommended to the plan. At the conclusion of the discussion, the Committee voted to recommend a motion be made to the Executive Board to approve all the changes to the plan.

Financial Corporation Report The IAFF Financial Corporation reported the highlights of its various 2010 program results. The FrontLine deferred compensation plan program has now achieved the $2.1 billion in assets level. In a


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2010 performance review of the FrontLine fund options, Nationwide Investment Advisors reported to the IAFF-FC Board that in general the funds are performing within the Investment Policy guidelines with the following exceptions: two funds are being replaced due to performance, and four funds will remain on the watch list to determine if they should be replaced or if they will improve their performance. In addition, one international fund will be added to improve the ability of our members to better diversify their holdings. The auto and home insurance program in the USA through Liberty Mutual now has 13,500 member policies in place (approximately 5% of the US membership) and the same program in Canada by TD Insurance has over 4,304 member policies in place (approximately 17% of the members in Canada). The IAFF-FC also reported to the Board that it’s FY 2010 Audit was complete and the Auditors declared a clean audit.

Government and Political Affairs Committee Report PROP Activity: Staff reported that there were two PROP applications. The Ohio Association of Professional Fire Fighters (OAPFF) submitted an application for $50,000 to combat statewide attacks on collective bargaining and pensions. The application is in order and has the support of Vice President Hufnagel. On behalf of the committee, a Motion was made by Vice President McGhee to approve the application. Motion passed unanimously. An application was filed by the Professional Fire Fighters of Greater Kansas City Missouri, Local 42 for $50,000. The application is to combat a referendum that would repeal the city’s earnings tax. This money is essential to keep the Kansas City Fire Department and general government adequately resourced. The application is in order and has the support of Vice President Woolbright who explained the scope and significance of this referendum. On behalf of the committee, a Motion was made by Vice President Woolbright to approve the application. Motion passed unanimously. Legislative and Political Activities: Chairman Johnson asked staff to report on legislative and political activities and the upcoming legislative conference. Reported on was the IAFF’s efforts in the Lame Duck in which our collective bargaining proposal, regrettably, died in the Senate, but the IAFF was successful in supporting Locals 94 and 854’s effort in passing the Zadroga 9/11 Victim’s Compensation Act. The IAFF was successful in their lobbying effort in the House last week to keep funding for SAFER and the FIRE ACT at current levels, $420 million and $390 million respectively. The measure now moves to the Senate for its consideration. The committee discussed the daunting task of combating anti-union legislation in Congress ranging from mandatory Social Security, to the taxation of health benefits, to attacks on federal fire fighters and attempts to undermine defined benefit retirement systems. The committee was advised that the Committee to Assist Non-Collective Bargaining States met in conjunction with ALTS last month. The committee recommends that the IAFF survey the political landscape in Congress and consider filing a fire fighter only bill. During committee discussion, General President Schaitberger recommended that we wait until events in Congress play out and we have a better idea of the overall Congressional agenda before making any decisions. The committee will revisit this at our next Board meeting. Conferences and Training: The Legislative Conference will be held from March 13-17 at the Washington Hilton. This year, a segment on state attacks on pensions and employment rights will be included. It was also reported that the Political Training Academy (PTA) will be held at the Masters, Mates and Pilots facility in Baltimore from February 27-March 4, 2011.


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National Infrastructure Bank: The committee discussed the concept of a National Infrastructure Bank that was articulated by Resolution 19, which was adopted at the 50th IAFF Convention this past summer. For more than ten years, progressive Members of Congress have been pushing for the creation of a National Infrastructure Development Bank operated by the federal government that would finance critical investments in our transportation network, our waterways and other public assets. The latest version, HR 402, was introduced in January by Representative Rosa DeLauro (D-CT) and has 34 co-sponsors -- all Democrats. Despite having the support of academics and organized labor, the concept remains a partisan issue, and has yet to attract support of even the most pro-labor Republican. While there was some discussion about finding ways to move the bill in the last session of Congress, unfortunately, the results of the November election have put the bill on the shelf for the foreseeable future. However, as part of a $556 billion comprehensive surface transportation bill, President Obama’s budget advocates creating a National Infrastructure Bank to support projects of national importance and to bring access to high-speed rail to 80 percent of Americans within 25 years. He suggests a $50 billion upfront investment to capitalize this project. However, since Congress does not actually vote on the President’s proposed budget, his actions are designed to signal support of this initiative. But without Congressional appropriations, the President will not be able to fund and, therefore, implement this initiative. Collective Bargaining: Vice President Walsh spoke on state level efforts on collective bargaining. His comments focused on considering using FIREPAC dollars to assist state level politicians. He also talked about limiting PAC contributions to federal candidates to send a message that we cannot be taken for granted. FIREPAC: Vice President Woolbright also discussed “triaging” FIREPAC requests based on state threats and/or opportunities. Everyone concurred that any national assistance should be predicated on state and local affiliates paying their fair share of costs. Vice Chairman McGhee discussed exploring coordinating national FIREPAC with state and local PACs to maximize resources. Service Members Civil Relief Act: Vice Chairman McGhee requested that staff investigate improving the (SMCRA) to assist our many members who serve in the armed forces.

Human Relations Committee Report “AFL - CIO Diversity Staff Report”: General President Schaitberger commented on the committee’s agenda item “AFL - CIO Diversity Staff Report”. He asked the committee to present to the full board in June a report on minority representation on the Executive Board. He stated the possibilities could include an elected position, advisory position, senior staff member or an appointed position. It was also stated during the discussion that the current Elected Human Relations Committee structure could bridge the minority representation on the Board. IAFF staff then presented a partial report providing the results of the research conducted on the question raised at the last Executive Board meeting as to what other unions are doing with regard to having members in diverse classes involved with their respective Boards and how those unions have structured their policies. Staff provided a brief review of the process taken to collect the information: First, staff reached out to the AFL-CIO for information they had on how other unions promoted diversity within their respective governing bodies. Ms. Rosalyn Pelles, Director of the Civil, Human and Women’s Rights Department at the AFL-CIO, responded to our request for information. She discussed that adding a non-voting diversity representative to our Executive Board who serves in an advisory capacity is the easiest way of ensuring representation of diverse members. Adding a voting member to our Executive


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Board would pose additional legal challenges in terms of defining representation. Some unions have added elected members to their Executive Boards whose sole responsibility is to represent the interests of minority members. Others have created diversity advisory committees. To her knowledge, no other union has added a non-voting, advisory diversity representative to their Executive Board. Next, staff conducted a survey of the existing diversification among the executive boards of the top 15 largest AFL-CIO affiliated unions: • 73 percent (11 unions) currently have women and/or minorities among their elected national

officers through the customary election process.

• 73 percent (11 unions) currently have women and minorities among their elected executive board members through the customary election process.

• 27 percent (4 unions) currently have a designated board member who represents the diverse members of their respective organizations through a special election process.

Staff in Canada also reached out to Canadian labour organizations: • One union, the National Union of Public and General Employees (NUPGE), has a provision in their

constitution that ensures minority representation. The committee chair asked staff to expand the research to include the roles and goals of minority representation that other AFL-CIO unions and our partners in the International Fire Fighters Unions Alliance have on their executive boards and to clarify those minority members serving on executive boards elected through the standard election process and those elected through a special election process to represent minority members. The committee will consider the information presented and the subsequent discussion; further discussion and a report will be given at the June Board meeting.

Information Technology Committee Report Video Conferencing: As the first order of business, the Committee discussed the next steps in utilization of the Tandberg/MOVI video conferencing system. Staff reported that it will be conducting a full assessment of current and potential usage by officers, the board and key staff to determine if the system fits our needs going forward or whether another system would be more useful, then to map a path forward. Constitution and By-Laws Online Library: The Committee was then updated on the progress of the affiliate Constitution and Bylaws online library, which was initiated by the passage of Resolution 7 by the delegates at the 2010 IAFF Convention. When we began building the library, we had 120 electronic files of affiliate Constitution and Bylaws. We now have electronic copies of approximately 1,000 unique C&BLs. The committee urges the Executive Board to continue to push affiliates to send them in. The library is now online, secured by log-in. The link can be found in the “Tools” drop down menu that loads after you log into www.iaff.org. Online Posting of IAFF Contracts: In November, the Executive Board moved and passed a motion that the Principal Officers were to determine a minimum threshold and an effective date for contracts signed by the IAFF that should be posted online for access by the Vice Presidents. The General President and General Secretary-Treasurer determined that all signed contracts which became effective October 1, 2010 or later and in which the IAFF is contracted to disburse over $10,000 in a fiscal year will be posted

http://www.iaff.org/�


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in read-only format in a secure area of the IAFF web site. Access to the contracts will require log-in and will be limited to IAFF Officers, Executive Board and appropriate senior staff. Contracts will be sortable by division, date and vendor. Electronic Voucher System: The Committee discussed the fully automated electronic voucher system that the Executive Board moved be implemented as soon as possible. Staff reported that following the November Board meeting, Carmen Gloukhoff, Director of Database Administration and Jen Harris, Director of Accounting worked together to find a solution that meets the spirit and intent of the Executive Board motion. Carmen and Jen focused on solutions that would integrate with Great Plains. They investigated three software packages through two separate vendors for comparison. Their recommendation is to implement the web-based expense solution developed by Concur, coupled with ADP’s payment integration system. This solution will truly automate the entire process; from initial entry of expenses by an Officer, Board or staff member all the way through the accounting process -- so no paper is printed or numbers manually re-entered by staff in a duplication of work (which is a big problem in the system now). The cost of the software is estimated to be $50,000 in the first year, then approximately $35-$40,000 per year afterward. This software solution will truly enhance productivity and efficiency and will generate a savings in staff time and consultant time, realized following implementation. For this fiscal year, this project will be assigned to the appropriate line in one of the IT Division’s budget lines, and will be reconciled at year’s end. The Committee does not believe a motion is needed to enable the General President and General Secretary-Treasurer to reach consensus on which vendor to contract with for the Concur and ADP solutions and to take appropriate action as necessary to stay on schedule to meet the motion passed by the Executive Board last November. IT staff has provided Board members a link on the Board CD to a web-based tutorial of the new software. IAFF Exchange Mailbox Limitations: Staff discussed the need to limit IAFF Exchange mailbox sizes. The current size of our Exchange is significantly larger than recommended by Microsoft. This causes back-ups to take over 36 hours, slows Outlook for everyone and shrinks the windows available to IT staff to perform maintenance on the system. Currently, our Document Retention Policy states that “emails older than three years will be deleted” from our system on a daily basis. That policy alone is not sufficient to maintain control over the size of the Exchange. To take an active step in managing our Exchange and to conserve valuable disk space on our network, the Committee recommends to the Executive Board that the following be added to the IAFF Document Retention Policy, Section C, after paragraph one: “The IAFF will also limit the size of individual mailboxes in Outlook to 2GB per user and will limit to 10MB the cumulative size of attachments to each email sent or received through the IAFF system. In cases of substantial and demonstrated need on the part of specific officers or staff for a limited exception to this policy, IT staff will assess and provide a recommendation to the General President, who may issue such an exception to be implemented by the IT Division.” IAFF staff will provide training to ensure that officers, Vice Presidents and staff are able to fall within these guidelines without hurting productivity or efficiency. On behalf of the committee, a Motion was made by Vice President Johnson to adopt the changes in the IAFF Document Retention Policy. Motion passed unanimously. District Vice President Space on IAFF Network: The Committee discussed the potential of providing space and access for District Vice Presidents on the IAFF network for storing documents and other files. The Committee asked staff to develop a recommendation to accomplish this for all District Vice Presidents who are interested and for staff to present that recommendation at the June Board meeting.


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Organizing and Field Services Committee Report District Field Service Representative Training: DFSR training was held on January 16-17 in conjunction with the ALTS. Several DFSRs have provided written comment on the usefulness of the training including the detailed presentation on the NIST Residential Fireground Report, Pension Issues and Social Media Issues. The Pension issue briefing has been the most requested topic for use in individual districts since the training. IAFF Charter Application: The Committee discussed the IAFF Charter application and the instructions included for locals or organizers to submit the application for approval. At present, the instructions note that “…2 copies of the local constitution must be submitted with this application to the International General President for his approval.” However, since DFSRs and field representatives do a considerable amount of organizing, prior to the charter being sent to the General President, it must first be sent to the District Vice President for his signature recommending the charter be granted. The committee therefore recommends that staff edit the charter application to read, “…two copies of the local constitution must be submitted with this application to the District Vice President. The District Vice President will sign the application, contact the General Secretary Treasurer’s office for a local number and then forward the charter application along with the candidate local’s Constitution and Bylaws to the International General President for his approval.” In addition to the editing of the IAFF Charter Application, the committee recommends that staff edit the cover page of the Sample Constitution and Bylaws that is sent to applicant locals to require the ‘name’ of a local officer rather than a signature since many local affiliates do not have the capability of scanning a document for email nor do they have the capability of applying an electronic signature. “Fighting Back” Campaign: Staff briefed the Committee on the General President’s “Fighting Back” plan to add 70 additional field service days to those budgeted for DFSRs and Service Representatives. These additional days are for use in assigning field representatives as needed in state and provincial fights against attacks on pensions, collective bargaining rights, dues deduction, paycheck protection and other threats.

Pension Resources Committee Pension Resources Department: The General President reviewed the pension specific resources implemented at headquarters based on the resolution passed at the 2010 convention, including the establishment of the new Pension Resources Department. President Schaitberger noted that Ron Saathoff, former President of San Diego Local 145, had been named Director of the Department. He also noted that the department was placed in the Technical Assistance and Information Resources Division along with Fire & EMS Operations/GIS and Labor and Collective Bargaining Departments and is intended to provide similar one-on-one assistance to local affiliates. President Schaitberger then reviewed the public relations and media efforts that had been undertaken in the last few weeks and noted his intention to keep these efforts going as long as necessary to fight the attacks on IAFF members. The General President then asked staff to provide specific information on the set-up and operations of the new Pension Resources Department. Staff provided a synopsis of department operations including the transfer of two Grade 8 Assistants, one from Legal Division and one from Information Technology. These assistants along with the Director are working to build the resources necessary to provide assistance to IAFF affiliates. Resources are to include a pension plan database similar to the contract database already in place. Other resources being built include a pension specific website, a triage algorithm for assessing threats and cueing specific assistance, preparing off-the-shelf materials for dissemination to affiliates and building relationships with other pension-related


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organizations like the National Conference on Public Employee Retirement Systems (NCPERS) and the National Public Pension Coalition (NPPC-AFLCIO). Locals Considering Filing a Pension-Related Court Action: The Committee discussed a proposed policy to require local or state affiliates to notify the International if they are considering filing a pension related suit or to notify the International of potential or actual involvement in any other pension-related court action. The policy is titled, “Pension Legal Intervention Notification.” On behalf of the committee, a Motion was made by General Secretary-Treasurer Miller to approve the “Pension Legal Intervention Notification” policy as written. Motion passed unanimously. Custom Technical Assistance Policy: The Committee discussed proposed edits to the existing Custom Technical Assistance Policy, which provides the guidelines by which affiliates request and receive technical assistance in the arenas of GIS, Labor and Collective Bargaining and now Pensions. On behalf of the committee, a Motion was made by General Secretary-Treasurer Miller to approve the changes to the “Custom Technical Assistance Policy” as written. Motion passed unanimously.

Pre-Trial Review Board Charges filed by Scott McFadden against Ron Middleswart, Local 2551, Broken Arrow, OK: Vice President Ricky Walsh reported the Pre-Trial Review Board considered the request of Brother Middleswart to dismiss the charges filed against him by Brother McFadden. Based on the record of materials, by a unanimous vote, the Pre-Trial Review Board has decided that the charges brought here should not be dismissed on the grounds that they are frivolous, retaliatory, or de minimis. Nothing contained herein should be interpreted, in any way, as a comment on the merit, or lack of merit, in any party’s position. Charges filed by John Silva against Leonard Albanese, Jr., Local 2334, North Providence, RI: Vice President Osborne reported the Pre-Trial Review Board considered the request of Brother Albanese to dismiss the charges filed against him by Brother Silva. Based on the record of materials, by a unanimous vote, the Pre-Trial Review Board has decided that the charges brought here should not be dismissed on the grounds that they are frivolous, retaliatory, or de minimis. Nothing contained herein should be interpreted, in any way, as a comment on the merit, or lack of merit, in any party’s position. Charges filed by David Novak against William Langin, Local 2355, Sheffield Lake, OH: Vice President Woolbright reported the Pre-Trial Review Board considered the request of Brother Langin to dismiss the charges filed against him by Brother Novak. Based on the record of materials and by a unanimous vote, the Pre-Trial Review Board has decided to dismiss the charges on the grounds that they are de minimis. Charges filed by Aaron Crittle and Brian Davis against Wiliam Langin, Local 2355, Sheffield Lake, OH: Vice President Woolbright reported the Pre-Trial Review Board considered the request of Brother Langin to dismiss the charges filed against him by Brother Crittle and Brother Davis. Based on the record of materials and by a unanimous vote, the Pre-Trial Review Board has decided to dismiss the charges on the grounds that they are de minimis.

John P. Redmond Trustees and Emergency Medical Services Committee Report The General President addressed the committee noting that this year’s joint Redmond Health and Safety Symposium and Barbera EMS Conference was going to be a significant event…likely the size of a


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convention. President Schaitberger also noted that this is the first significant IAFF event to be held in New York City and that the event was being held just prior to the tenth anniversary of the 9/11 terrorist event. Chairs Osborne and McGhee then asked staff to provide an overview of the upcoming event. AGPs Duffy and Moore-Merrell discussed overall symposium/conference logistics including the venue and overflow hotels, online registration and marketing efforts. Staff also presented the list of workshop topics and noted that a keynote speaker is still being sought. Finally, staff provided an overview of the special events scheduled in conjunction with the symposium/conference including Fire Ops 101, Fire Ground Survival, Presentations of Department of Homeland Security AFG Research Grant Study Reports, and a Tenth Anniversary Remembrance of 9/11.

Scholarship Fund Trustee’s Report Labour College of Canada: The Committee selected a recipient for the IAFF Labour College of Canada Scholarship. On behalf of the Committee, a Motion was made by Vice President Mullane to award the scholarship to Glenn Sullivan from the 15th District, local 1053 Fredericton Fire Fighters Association. Motion passed unanimously. Harvard Law School/University of Ottawa Executive Leadership Program: The Committee discussed the application process for the Harvard Law School/University of Ottawa Executive Leadership Program. The Scholarship program resulted from a 2010 Convention Resolution. The program includes completing three Modules in Executive Development over a two year period resulting in receiving a special “Professional Certificate in Executive Leadership” from Harvard Law School/University of Ottawa. The deadline for the scholarship application is March 21, 2011 with the first module starting on May 12, 2011. In order to select the awardees for the Scholarship in the given timeline, the Chair recommends that the Trustees’ approval process be performed via conference call two weeks after the close of the application process.

Staff and Employee Pension Trustees Reports from Investment Consultant and Investment Managers: The Committee met with the Trustees of the two IAFF defined benefit pension plans to hear reports from the investment consultant and investment managers for the two pension plans. The investment consultant, Monitoring and Evaluation Services, reported on the performance of the pension fund investment managers: Columbia Management and ICC Capital Management. The investment consultant reported that we saw very good returns last year with the Employees’ Pension Fund’s investment rate of return at 13.31%. The Staff Representatives’ Pension Fund experienced a 13.05% rate of return. The Employees’ Pension Fund as of December 31, 2010 grew to a market value of $12,310,373; the Staff Representatives’ Pension Fund grew to a market value of $34,850,382. The investment managers have different styles yet reported similar results. Staying in stocks was key to achieving good results in 2010. Employees’ and Staff Representatives Pension Plans: The Committee received a detailed report from Mary Beth Braitman, Partner, IceMiller, on the administration and terms of the Employees’ and Staff Representatives Pension Plans. Mrs. Braitman commented on the increasing requirements in terms of filings needed to be in compliance with federal regulations, changes in accounting rules, and the need for more comprehensive IRS filings. Failure to submit timely filings have dire consequences which could include a freeze on benefit accruals. These requirements are the result of the Pension Benefit Guarantee Corporation seeing a significant number of defaults and ultimately having to take over a number of underfunded plans. This environment demands more time and attention to reviewing


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changes in federal laws and regulations. Over the years our plans have been restated and amended many times, resulting in terminology which is confusing. The General Secretary-Treasurer’s Office has taken an active role over the last six months to ensure the plans are consistent in terms of the language and operation of the plan. Each iteration of the plan has been carefully reviewed. Mrs. Braitman presented the changes needed to correct certain provisions in previous versions of the plan. These changes include changes required to bring the plan into compliance with federal law, changes required to comply with federal regulations, and changes to clarify plan language to reflect actual plan operations. The Committee discussed each of the changes being recommended to the plan. At the conclusion of the discussion, the Committee voted to recommend a motion be made to the Executive Board to approve all the changes to the plan. On behalf of the committee, a Motion was made by Vice President Gallagher to approve all the changes to the plan. Motion passed unanimously.

TRUSTEES’ REPORT: Trustee Chair Mark Ouellette presented the following overview of the IAFF audit: Pursuant to Article 6, Section 5, of the Constitution and By-Laws, the Trustees performed their inspection and review of the financial records of our International Union and affiliated entities for the fiscal year ended September 30, 2010. We began our review on January 4th and concluded it on the 15th. The Auditor conducted interviews with the General President, the General Secretary-Treasurer and other IAFF personnel. The Trustees interviewed Assistants, Managers and Staff. These interviews were related to both the audit and to operations within the IAFF and are necessary to satisfy our due diligence responsibilities. Our Auditor has given us a clean opinion on the overall audit and our review. I am happy to report that only minor flaws in reporting on vouchers were discovered in the audit. During our review we had a meeting with the General President and General Secretary-Treasurer to discuss any findings or concerns. As discussed last year the Canadian N.Y. 911 fund has been reconciled and with the attorney’s recommendation, General President Schaitberger has approved that the funds be distributed to the Canadian fallen firefighters fund. As reported in the past, because of licensure and registration issues in regards to our charities, the leadership developed a charitable corporation that will encompass all five charitable branches of the IAFF. We believe for auditing purposes this new umbrella will have separate internal accounting guidelines, which will allow proper understanding of each of the entity’s financial status. We also reported last year that every employee should have an updated policy binder; we have been assured by the Secretary Treasures office that this will be accomplished and that they will be reviewed annually with all employees. Also gentlemen, in order for our staff at the IAFF to reconcile the accounts at year’s end we are once again asking you to make every effort to submit ALL your vouchers by the end of our fiscal year, September 30th. I know you have heard this before but if we do not have all receivable accounts, this in fact can contribute to increased costs in the overall audit. Gentlemen, we will be going over the audit report shortly but there are a few more things you should be aware of, the accounting terminology in the accounting standards has changed, we used FASB 158 in the past, the auditors now use the terminology Codification 715 which now encompasses pension issues. The new accounting standards are now referred to as U.S. GAPP codification of accounting standards. When Larry is reporting on our General fund net balance and long term liabilities for pensions, please keep in mind as stated in the past, the primary reason for reduction of net assets is the change in federal reporting requirements and not changes in business practices which forces organizations to state the total liability of pension plans in their annual financial report. Although the payment of the liability will


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be in future years, this requirement in reporting pension plan actuarial numbers within the net annual liability certainly gives a misleading picture of the asset to liability ratio. Also keep in mind other contributing factors that leads to this year’s negative net asset balance in the General Fund were an adjustment of the rent expense for our office space with United Unions, Inc., an assessment to the National AFL-CIO, convention costs over and above the budgeted amount and because of the union job action at the San Diego Hyatt, the canceled contract with them. The Board of Trustees feels that it is our fiduciary responsibility to the membership to investigate and entertain bids for our auditing services for our organization. We are in the process of drafting an RFP and will be distributing it shortly after the completion of the current audit. Before I hand the mike over to Larry to continue the report and to answer your questions, the Board of Trustees would like to thank the staff of the offices of the General President and the General Secretary-Treasurer for their hard work and their cooperation in helping us complete the audit.

AUDIT REPORT Larry Stokes, CPA of Stokes & Company, P.C. (auditors) stated the audit covered the consolidated balance sheet of the International Association of Fire Fighters and its subsidiary and affiliates as of September 30, 2010, and the related consolidated statements of changes in unrestricted net assets/equity and changes in net assets/equity and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Association’s management. The responsibility of Stokes & Company is to express an opinion on these financial statements based on the audit. The prior year summarized comparative information has been derived from the Association, subsidiary, and affiliates’ September 30, 2009 balance sheets and in our reports, with various dates, Stokes & Company expressed an unqualified opinion on those balance sheets. The audit of the International Association of Fire Fighters was conducted in accordance with auditing standards generally accepted in the United States of America. Those standards require that Stokes & Company plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Mr. Stokes believes their audit provided a reasonable basis for their opinion. It is Stokes & Company’s opinion that the consolidated financial statements referred to present fairly, in all material respects the financial position of the International Association of fire Fighters and its subsidiary and affiliates as of September 30, 2010 and the changes in their net assets/equity and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Motion was made by General Secretary-Treasurer Miller to receive the Audit report. Motion was Seconded and Adopted unanimously.

OLD BUSINESS 14th District Vice President Danny Todd provided an update on BLEVE records. General President Schaitberger, Chief of Staff Gorman and DVP Todd met with the owner of BLEVE records in Phoenix to discuss a new project. The former lead singer from Alabama will be releasing a new CD in May that will


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benefit the IAFF Foundation. The marketing strategy is being finalized and further information will be forthcoming.

NEW BUSINESS Article XIX Jurisdictional Complaints: Legal Counsel Baldwin Robertson reported on the arbitration decision regarding an Article XIX dispute between IAFF Local I-60 and IAFF Local 493 in Arizona. The Board need not take any action, the only Constitutional obligation is for the Board to review the decision. Article XIX pertains to jurisdictional disputes between IAFF affiliates. Last year, I-60 submitted a request to initiate the dispute resolution procedures under Article XIX to the General President. The General President’s level of review is very limited; he can only decide if there is an actual dispute, not rule on it. He reviewed the evidence submitted by I-60 and submitted that evidence to an arbitrator. The arbitrator was selected at random. There were several attempts to reach a resolution, but they went to hearing in November 2010. The issue was a letter submitted by a Local 493 Vice President to the city council on its decision to terminate the contract for EMS services with I-60’s employer and initiate a new contract with a different EMS service provider. The arbitrator reviewed that letter and the testimony by the witnesses and concluded that the letter itself was not sufficient evidence to show that there was intent to violate Article XIX and dismissed the charges. He also dismissed the charges on a procedural matter. There will likely be a resolution on cost which is left to the General President, but the Board need not take any action.

DISTRICT REPORTS District 1: District Vice President Gallagher reported that as yet Locals 94 and 854 have no official plans for 9-11. He will forward the information as soon as things are ready. World Games will be held in New York following the Redmond/EMS event. It is expected that 10,000 athletes in all age groups will be participating. District 2: Vice President Woolbright reported that the 2nd District, like the other districts, is under public employee attacks. In Missouri, we are on the attack legislatively, but with the current action in Wisconsin it seems to be that some Republicans are waiting to see the outcome before taking action. District 3: Vice President Mullane reported on Massachusetts, Connecticut and Rhode Island. He stated that Rhode Island is broke. There are similar attacks in Connecticut and Massachusetts. The Governor of Massachusetts has proposed changes that can be negotiated and we will be able to live with them. New Hampshire has passed right to work in the house and there are a lot of issues they are going after. The same issues are in Maine. In Vermont, we pulled our support for the Republican candidate Brian Dubie who had been the Lieutenant Governor for years but we couldn’t endorse the Democrat. The Democrat won, and we have been able to work with him since then. District 4: Vice President Taylor reported that in Anne Arundel County, the County Executive submitted a bill to take away binding arbitration from fire fighters who had succeeded in getting it only five years ago. When fire fighters marched to the council meeting, they got the bill turned around. District 7: Vice President Walsh reported that he never thought that he would be reporting that Washington State dropped a bill to tweak the collective bargaining rights for fire fighters and police.


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And that is after last year’s initiative attempt to privatize our workmen’s comp, which in Washington State is the actual disability for fire fighters there. In Idaho, a right to work state, there were laws on books that gave fire fighters and teachers collective bargaining rights and the ability to join and have unions. Most likely the teachers will get that stripped off and it wouldn’t be asurprise if 15,000 would actually be without a job in the end. Fire fighters are the last ones standing with collective bargaining rights and it remains to be seen what will happen in the next session. Alaska already lost their defined benefit pension defined plan in 2005; we thought we could get it back but the governor at the time was retaliating against labor and the assembly just voted for it so they could go home. In Montana, workers’ rights have been on the books for over 200 years, now have two bills directly attacking fire fighters as well as a right to work bill. District 8: District Vice President Hufnagel reported that the Midwest is a major battle ground for collective bargaining rights of firefighters and other public employees. Collective bargaining rights are under attack throughout the 8th District. In Ohio Senate legislation is moving through the Senate that will eliminate binding arbitration for fire fighters and police and eliminate many other bargaining rights as mandatory subjects of bargaining. In Indiana a bill to establish Right-to-Work for private sector employees was recently defeated. In Michigan there are over thirty bills introduced and moving through the legislative process that impact collective bargaining rights of fire fighters and other public employees, i.e., eliminate binding arbitration for fire fighters and police, cap healthcare benefits, and restrict pension benefits. The “Fighting Back Fund” and budget adopted by the Board at this meeting will play a significant role in assisting State Associations in combating these attacks on collective bargaining rights at their state capitols. District 10: Vice President Ferguson reported that a bit of good news is that every institutional officer in the State of California had a “D” by its name and won, but that is probably little solace for the other attacks. A bill has been introduced to do away with collective bargaining in California. In New Mexico we lost the governor’s race. The new governor has vowed to take collective bargaining away. In Arizona they have a super majority and are a right to work state. It is probably going to be a tough go there. The governor in Hawaii was a long-time member of the House of Representatives and won. The State is in dire financial straits. They are anywhere from $25 billion-$35 billion in the red. The last election cycle they changed from requiring a 2/3 vote for a budget to a simple majority. The problem is that they think that with that change the Republicans will be able to extract a pound of flesh from the Governor. District 11: Vice President McGhee stated that the politics in Texas are centered around a state-wide budget shortfall, and so far haven’t centered around employee rights. There are pension issues in the cities of Houston and Dallas. In Oklahoma there will be some pension changes because of the super majority in House and Senate in that state and we will probably see a completely new tier of pension benefits for future fire fighters. The leadership does seem to be promising to keep things the way they are for current employees. Things aren’t so good on the collective bargaining front in Oklahoma. Legislation has been introduced in the House and Senate that would do away with binding interest arbitration. The Professional Fire Fighters of Oklahoma has generated enough grass roots response to cause the leadership in the Senate to offer a compromise bill that would preserve collective bargaining, the makeup of the bargaining unit, prevailing rights, etc. but change how arbitration is done for new contract terms. District 12: Vice President Osborne reported that the two Carolinas have the same stories of staffing and operational issues. In South Carolina the governor is very extreme and has declared the state to be anti-union. In Georgia, there is a pension lawsuit originally filed by a group of citizens claiming the city


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gave overly generous benefits to police officers and fire fighters. A public-private task force was formed to study the pension which found the pension to be no more than average when compared to public or private plans. Nonetheless, Mayor Reed ran on this platform. In Florida, the governor is about as radical as Wisconsin. Some of the moderate Republicans are trying to temper his pension attacks. Jacksonville and Miami both have pension lawsuits as well. We have noticed that in Jacksonville the lawsuit has a chilling effect on the city wanting to attack the pension – they don’t want to go under oath about things they are saying. In regard to collective bargaining, Florida’s collective bargaining bill is part of the state constitution. When it comes to referendum of the voters, Vice President Osborne thanked the 1st, 3rd, and 4th Districts and the Canadians for all of your retirees that come to this state and register to vote. District 13: Vice President Carpenter reported that the affiliates in Manitoba and Ontario have continued to enjoy very positive arbitration awards and negotiated settlements. We have a number of trial boards, most having to do with secondary employment. As far as attacks on collective bargaining laws and pension, we have not seen those as yet. However, we know that things generally spill over from the U.S. to Canada. Vice President Carpenter stated that his hat is off to all of the Districts for the work they are doing in these fights, and if there is anything that his District can do to help please let him know. District 14: Vice President Todd reported that former 14th District Vice President Ray Perry passed away. Ray Perry, Jr. reported that he was very appreciative of the calls he has received about his dad. The District is very disappointed and angry over the national collective bargaining bill. The Alabama law went into effect where we are going to have to convert every local in Alabama from payroll deduction to an alternative means. Similar payroll deduction bill in Tennessee will be in the House Subcommittee next week, and we hope to kill it in committee. In Alabama and Tennessee we are collecting information on what other organizations have payroll deduction because the Alabama bill used the words “membership organization” so we consider the credit union, the Alabama Farmers’ Life Group that you have to be a member before you can purchase their insurance, and some other similar organizations on payroll deductions that may be able to create more pushback. We are also collecting information from all the locals on all the charities that they have donated to and put the “good guy” concept out there. We can point out all the charities that we are involved in and then reach out to those charities and tell them that if payroll deduction goes and we lose membership, the charity will be hurt because we will no longer be able to support them as we have in the past. We have rallies planned for the coming weeks. District 16: Vice President Johnson reported that the district continues to battle attacks on federal employees. Recent legislation introduced in congress eliminates official time for union representatives, eliminates longevity pay increases for employees, extends the current two-year pay freeze to five years and changes retirement calculations from a high three to a high five formula. The federal locals have been stepping up and participating in worker rights rallies in several cities in Ohio and the federal locals in the DC area will be participating in the rallies that are scheduled for the DC area this weekend. DVP Johnson mentioned and congratulated the Federal Hawaii local (F-263) which has increased their membership in the local substantially over the last two years."

GOOD & WELFARE 15th District Vice President Fennell thanked everyone for their phone calls, letters of encouragement and prayers relating to his personal health issues.


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7th District Vice President Walsh said that he would like staff to reach out to all the District Vice Presidents for any assistance they can give to the “Fight Back” campaign. District Vice President Walsh also reported that former 7th District Vice President Jim Martinez is very ill. Well wishes and prayers were sent to him. 1st District Vice President Gallagher made a point of personal privilege to General President Schaitberger, General Secretary-Treasurer Miller, and Assistant to the General President Kevin O’Connor’s division and thanked everyone for the work that was done to get the Zadroga bill passed. It wouldn’t have happened without the IAFF’s involvement and it is very important to the members in New York and those who came to New York to search for our members after 9-11. IAFF Chief of Staff Pete Gorman thanked his Executive Assistant VJ Nagel for her years of service to the IAFF and wished her a long and happy retirement. He passed on her thanks to the Executive Board, the General President and the General Secretary-Treasurer. Pete remembered her as being very passionately pro-labor, supportive of FIREPAC and very proud of our members and what they do. He also welcomed Mary Travers who has worked on and off for Local 854 for a number of years. Important Upcoming Dates:

• Legislative Conference in DC on March 13-17, 2011

• June IAFF Board meeting will be held June 19-23, 2011 at the Gaylord Hotel in DC.

• September IAFF Board meeting will be held in conjunction with Fallen Fire Fighter Memorial. Travel day will be Monday, September 12 through Friday, September 16. Committees will meet Tuesday and Wednesday; the General Session will be held on Thursday and Friday.

• June 2012 IAFF Board meeting will be held in DC.

Session ended: 11:07 AM, Friday 25, 2011

Thomas H. Miller Secretary to the Board


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RESOLUTION 55 (1962) RE: REPORT OF THE EXECUTIVE BOARD MINUTES WHEREAS: The Executive Board of the International Association of Fire Fighters is responsible for conducting the affairs of the International Union between conventions; and WHEREAS: Any action by the Executive Board is important and in the interest of the fire fighters of the United States and Canada and where necessary or desirable should be actively supported and implemented by all members of this association, and WHEREAS: In order for the members of the affiliated locals to assist the Executive Board to carry out its program, it is necessary to keep them fully informed of the action taken by the Board at its meeting; now be it RESOLVED: That the Twenty-sixth Convention of the International Association of Fire Fighters assembled in San Antonio, Texas, does hereby go on record to request that the Executive Board change its present method of making a verbatim transcript to its meetings and to institute a system of recording the minutes of Board meetings to show only action taken, motions adopted and defeated and other pertinent information, and be it further RESOLVED: That copies of the minutes be forwarded to each affiliated local union and other organizations. RESOLUTON 214 AS REVISED (1974) RESOLVED: That the delegates hereby assembled in Convention adopted a policy of requiring that any vote taken on any matter, except when the vote is unanimous, at any meeting of the IAFF Executive Board, shall be recorded by individual vote of the Vice Presidents voting for or against or abstaining, and such votes shall be reported in the printed minutes sent to all locals; provided, however, that this procedure shall not include personnel matters. RESOLUTION 222 (1974) RESOLVED: That the intent of Resolution Number 55 of the 1962 Convention be equally applied to Executive Sessions of the Board and that all action taken, motions adopted or defeated and other pertinent information, at any and all meetings of the Board be reported in the minutes to each affiliated local, state or provincial association. RESOLUTION 110 (1988) RESOLVED: That Article VI, Section 4, Paragraph 4, Sentence 3 of the IAFF Constitution and By-Laws be amended to read: “Minutes of all meetings of the Board which shall include a clear and complete statement of intent of all substantive motions adopted by the Board shall be kept by the Secretary of the Board who shall be the International Secretary-Treasurer.”


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NOTICE TO IAFF AFFILIATES All IAFF affiliates should be aware of, and comply with, several policy requirements regarding court actions and related matters. In resolutions passed at the 1990 and 1992 IAFF Conventions, affiliates are required to notify the IAFF if they are considering filing an FLSA overtime suit, as well as their potential or actual involvement in any other court action. If an affiliate is considering pursuing FLSA overtime claims, they should be familiar with the following IAFF policy, adopted in 1989, concerning IAFF assistance in pursuing FLSA suits, which states:

• The request for assistance from the IAFF and its General Counsel’s Office must originate with the IAFF District Vice President with approval for IAFF participation determined by the International General President.

• The IAFF will provide financial assistance for General Counsel’s legal fees in an amount

not to exceed $10,000. Fees for expenses of IAFF General Counsel beyond the $10,000 limit (and any local attorney) are the responsibility of the local. Any stipulated or negotiated conclusion to the case must provide for reimbursement to the IAFF for the cost of its legal fees.

• Legal fees advanced by the IAFF and recovered subsequently are to be credited to the

proper IAFF budget line so that the program is self sustaining. In 1996, the IAFF Convention adopted a policy requiring affiliates to obtain a second legal opinion from the IAFF’s General Counsel’s office if the affiliate is considering filing a court action that could lead to a request for the IAFF’s financial assistance from the Emergency Disputes Fund (EDF). That policy states: EDF Court Actions: Where a local affiliate is considering initiating a court action that may eventually lead to a request for financial assistance from the IAFF’s EDF, it is required to follow the procedure of contacting the IAFF District Vice President for permission to seek a second legal opinion from the IAFF’s General Counsel’s office. The cost of the second legal opinion will be paid by the IAFF from the EDF. The local’s submission seeking the second legal opinion will include:

1. The written legal analysis and opinion of the local’s attorney, including the proposed retainer arrangement about how the litigation would be handled and paid for, and

2. The relevant facts and documents needed to render a proper second legal opinion,

Prior to requesting an EDF loan from the IAFF, local affiliates are required to bring such requests (indicating the amount of the loan and the reasons for the loan) before a general or special membership meeting for approval. An affiliate that fails to contact the IAFF for a second legal opinion prior to commencing litigation will not be considered eligible for EDF assistance about that matter. If the legal advice from the IAFF General Counsel’s office is that the proposed litigation lacks merit, but the affiliate nevertheless chooses to pursue the litigation, it will not be considered eligible for EDF assistance (unless the affiliate prevails in that litigation).


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Nothing contained in this policy is intended to impair or interfere with the autonomy of the local affiliates which retain full and final decision-making authority concerning litigation affecting such affiliates. [This] policy will [also] apply with regard to a decision to pursue a pending case to the next level of court appeal. Based upon a clear showing of extraordinary circumstances in a particular case, the Executive Board may approve an exception to this policy only by unanimous vote of the board. The 1996 Convention also adopted a policy directing the IAFF to pursue whatever legal remedies are available and appropriate to protect union leaders who are disciplined or otherwise discriminated against because of their union activities. Consistent with this policy, the IAFF Executive Board, on February 2, 2001, adopted the “Guardian Policy,” which makes available, in appropriate circumstances, legal representation by and/or through the International’s General Counsel’s office where: (a) an affiliate, officer, or a member of a United States or Canadian affiliate has suffered, or is subject to suffering, adverse harm by an employer because of his/her union-related activities; or (b) where a court decision could establish a precedent that would have a significant impact upon other IAFF affiliates. “Protected activities” are defined as follows: (1) organizing, leading or supporting an IAFF affiliate; (2) participating in union affairs; (3) participating in political activity or a political campaign supported by the affiliate (such as supporting a candidate for local government office); (4) participating in claims supported by the affiliate (such as an OSHA claim, an FLSA claim, a state or provincial law claim, a whistleblower claim, or a grievance or arbitration claim); and (5) speaking out on a matter of public concern affecting the IAFF, an affiliate, or its members. Under the policy, the District Vice President will communicate with the General President concerning a request for the legal services of the General Counsel’s office and will submit, in coordination with the affected affiliate, the facts fully describing the matter and how it should qualify for assistance under this policy. The General Counsel’s office will study the information and make a recommendation to the General President as to whether the matter has merit and qualifies for assistance. In a matter involving a Canadian affiliate, the General President may confer with a Canadian attorney. The General President’s decision will be guided by the availability of funding, the merits and significance of the case, the potential impact of a court ruling on the membership of the IAFF, and other appropriate factors. In addition, the General President may consult with the General Secretary-Treasurer and the chairpersons of appropriate committees with regard to any decision made under this policy The General President’s decision shall be forwarded as soon as is practical to the District Vice Presidents.


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MEMBERS AND GUESTS ................................................................................................................................ 4

WELCOME ADDRESS ..................................................................................................................................... 4

MOMENT OF SILENCE ................................................................................................................................... 4

ADOPTION OF MINUTES ............................................................................................................................... 4

PER CAPITA VOTING ALLOCATIONS .............................................................................................................. 5

GENERAL PRESIDENT’S REPORT .................................................................................................................... 5

GENERAL SECRETARY-TREASURER’S REPORT ............................................................................................... 9

Fund Balances ......................................................................................................................................... 11

Investment Report .................................................................................................................................. 12

Voluntary Forfeiture of Charter .............................................................................................................. 12

Involuntary Forfeiture of Charter ........................................................................................................... 12

Locals Placed on Hold ............................................................................................................................. 12

Mergers ................................................................................................................................................... 13

Income Status Report ............................................................................................................................. 13

Financial and Membership Reports ........................................................................................................ 14

Technical Assistance and First Contract Policies ..................................................................................... 14

New Locals .............................................................................................................................................. 15

Reinstatement of Old Local Number ...................................................................................................... 15

Royalty Checks ........................................................................................................................................ 15

GENERAL COUNSEL’S REPORT .................................................................................................................... 16

LEGAL COUNSEL’S REPORT ......................................................................................................................... 29

DEPARTMENT REPORTS .............................................................................................................................. 32

COMMITTEE REPORTS ................................................................................................................................ 32

Budget and Finance Committee Report ................................................................................................. 32

Canadian Affairs Committee Report ....................................................................................................... 33

Education and Training Committee Report ............................................................................................ 34

Emergency Disputes Fund Committee Report ........................................................................................ 34

Employee Benefits and Human Resources Committee Report .............................................................. 38

Financial Corporation Report .................................................................................................................. 39

Government and Political Affairs Committee Report ............................................................................. 40

Human Relations Committee Report ...................................................................................................... 41

Information Technology Committee Report ........................................................................................... 42

Organizing and Field Services Committee Report .................................................................................. 44

Pension Resources Committee ............................................................................................................... 44

Pre-Trial Review Board ............................................................................................................................ 45


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John P. Redmond Trustees and Emergency Medical Services Committee Report ................................. 45

Scholarship Fund Trustee’s Report ......................................................................................................... 46

Staff and Employee Pension Trustees ..................................................................................................... 46

TRUSTEES’ REPORT: .................................................................................................................................... 47

AUDIT REPORT ............................................................................................................................................ 48

OLD BUSINESS ............................................................................................................................................. 48

NEW BUSINESS ............................................................................................................................................ 49

DISTRICT REPORTS ...................................................................................................................................... 49

GOOD & WELFARE ...................................................................................................................................... 51


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Report No. 180

Summary of International Association of Fire Fighters

Executive Board Meeting Held at

Westin Diplomat Hotel Hollywood, Florida

February 24-25, 2011 The following members of the IAFF Executive Board were present during the February 24-25, 2011 meeting:

Harold Schaitberger, General President Thomas H. Miller, General Secretary-Treasurer

Kevin Gallagher, 1st District Vice President Mark S. Woolbright, 2nd District Vice President

Michael Mullane, 3rd District Vice President William Taylor, 4th District Vice President Joseph Conway, 5th District Vice President

Lorne West, 6th District Vice President Ricky J. Walsh, 7th District Vice President Paul Hufnagel, 8th District Vice President

Randall Atkinson, Sr., 9th District Vice President James T. Ferguson, 10th District Vice President

Roy L. McGhee, 11th District Vice President Larry F. Osborne, 12th District Vice President Bruce Carpenter, 13th District Vice President

Danny Todd, 14th District Vice President James A. Fennell, 15th District Vice President James B. Johnson, 16th District Vice President

Also present at the meeting were: Trustees Mark Ouellette, Anthony Mejia, and Alex Forrest, General Counsel Thomas Woodley; Legal Counsel Baldwin Robertson; Peter Gorman, Chief of Staff to the General President; Jim Lee, Administrative Assistant to the General Secretary-Treasurer; Don Copley, Assistant to the General Secretary-Treasurer, Budget and Finance; Richard Duffy, Assistant to the General President, Health, Safety and Medicine; Scott Marks, Assistant to the General President Canadian Operations; Lori Moore-Merrell, Assistant to the General President, Technical Assistance and Information Resources; Patrick Morrison, Assistant to the General President, Education and Training; Jeff Zack, Assistant to the General President, IT Systems and Alumni; Carrie Tucker, IAFF-Financial Corporation; Dawn Iacino, Director, Meeting/Conference Planning; Dave Bernard, Director, Network Administration, Teresa Valenzuela and Mary Travers, General President’s office; Cynthia Rezetko, General Secretary-Treasurer’s office; and Teri Byrnes, General Secretary-Treasurer’s office recording and reporting the minutes of the meeting.


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MEMBERS AND GUESTS Daniel Martinez, President, Local 1375, Hollywood, Florida Mary Beth Braitman, Ice Miller Larry Stokes, Stokes & Company

WELCOME ADDRESS Daniel Martinez, President, Local 1375, Hollywood, Florida, welcomed the General President, General Secretary-Treasurer, and the District Vice Presidents to sunny Florida but warned of the storm on the horizon. The storm being the widespread attacks on collective bargaining rights, fire fighter pensions, and that the issues in Florida are mirrored in the issues affecting other states. Mr. Martinez thanked the Board for the work they do on behalf of his members and the rest of the Florida fire fighters.

MOMENT OF SILENCE General President Schaitberger requested the Board to stand in a moment of silence in memory of those departed brothers and sisters who died in the line of duty. This list also includes those deaths that have recently been determined to be job related:

Name Local # City/State Died Age

Theodore R. Mathews 3757 Corona, CA 12/2/82

Victor L. Husband 1298 Powell River, BC 6/7/90

George More 953 Kelowna, BC 4/20/97 62

Donald L. Burton 522 Sacramento, CA 6/5/05 62

Eddie Dugas, Jr. 619 Lafayette, LA 12/13/08 51

Dennis McFarland 460 Brantford, ON 9/17/09 62

Nathaniel O. Starnes, Sr. 140 Nashville, TN 5/12/10 52

Daniel Chichester 786 Stamford, CT 8/23/10 68

Robert G. Tahbonemah 1882 Lawton, OK 11/5/10 32

Chance H. Zobel 793 Columbia, SC 11/13/10 23

Henry J. Helmers 140 Nashville, TN 12/7/10 56

William A. Brady, Jr. 68 Norfolk, VA 12/14/10 47

Chad L. Null 1438 Sullivan, IN 12/16/10 33

Terrence P. Gee 522 Sacramento, CA 12/20/10 54

Edward J. Stringer, Sr. 2 Chicago, IL 12/22/10 47

Corey D. Ankum 2 Chicago, IL 12/22/10 34

Matthew E. Durham 2950 Woodinville, WA 12/30/10 45

Scott R. Carnevale 689 Alameda, CA 1/3/11 42

Michael G. Urban 1652 Framingham, MA 1/7/11 57

Richard E. Paul 42 Kansas City, MO 1/7/11 54

Steven F. Auch 416 Indianapolis, IN 2/1/11 56

ADOPTION OF MINUTES Motion was made by General Secretary-Treasurer Miller that the November 2010 Executive Board minutes be adopted. Motion was Seconded and Adopted unanimously.


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PER CAPITA VOTING ALLOCATIONS

1st District 18,840 2nd District 11,170 3rd District 20,875 4th District 24,851 5th District 6,156 6th District 8,391 7th District 10,339 8th District 40,285 9th District 11,238 10th District 42,253 11th District 23,898 12th District 30,788 13th District 12,384 14th District 15,243 15th District 1,261 16th District 3,668 TOTAL 281,640

Majority 140,821 3/5 168,984 2/3 187,760 3/4 211,230

GENERAL PRESIDENT’S REPORT General President Schaitberger started off by noting that he has never been more proud of our union, Vice President Conway, and Mahlon Mitchell, President of Wisconsin Professional Fire Fighters for their activities in Wisconsin. They are among so many doing so much to give the rally in Wisconsin incredible energy and hope. General President Schaitberger yielded the floor to Vice President Conway to provide an overview of the events in Wisconsin. Vice President Conway reported on the background of the budget fight in Wisconsin as well as an overview of the rally activities and strategic plans for the coming days and weeks ahead. Danny Todd, 14th District Vice President, on behalf of the Executive Board expressed admiration for Vice President Conway, the Professional Fire Fighters of Wisconsin, and all IAFF members in the state of Wisconsin for their work and drawing a line in the sand in this fight. The following is an overview of ongoing major activities and projects since the November 2010 Executive Board meeting. Politics and Legislation: In the months since our last board meeting, our legislative and political operations have been consumed with continual activity. While the 111th Congress began with great expectations, and despite the potential for legislative success, partisan rancor and a series of mishaps prevented several pieces of important legislation from passing, including our collective bargaining bill.


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The House of Representatives passed the collective bargaining bill on two separate occasions, but the Senate was brought to a standstill by a record 87 filibusters. So, in spite of having six GOP Senate co-sponsors for the bill, Republican leadership made it clear that they would oppose the legislation with every parliamentary tool and delaying tactic they could employ. Still, there was a significant victory on December 22 when Congress passed the James Zadroga 9/11 Health and Compensation Act, H.R. 847. Passage of the Zadroga Act was a profound achievement by Congress in the final hours of the 111th session. This long-awaited approval from Congress will ensure that there is funding for existing medical monitoring and treatment programs for people at the World Trade Center or involved with the cleanup at Ground Zero who have suffered illnesses following September 11, 2001. As we’ve already seen, the results of the November 2 elections are having a substantial impact for the IAFF on the federal, state and local levels. We face many challenges in the 112th Congress, but as in the past, we will find issues in which we can craft bi-partisan support and move an agenda forward benefiting our membership. Just this month, the IAFF beat long odds and won passage of two significant amendments to protect fire fighters’ jobs nationwide. On February 16 we scored a significant victory when the U.S. House of Representatives voted 318-113 to reject massive cuts to fire fighter grants. Under H.R. 1 -- House legislation to continue funding the federal government – the Staffing for Adequate Fire and Emergency Response (SAFER) grant program would have been completely eliminated, and the Assistance to Firefighters (FIRE Act) grants would have been cut by more than 20 percent. But Representative Bill Pascrell (D-NJ) offered an amendment to restore funding for the two programs and the amendment passed with a large bipartisan majority. The very next day, the U.S. House of Representatives voted to extend the SAFER waivers, which have helped hundreds of communities avoid fire fighter layoffs and bring laid-off fire fighters back to work. The SAFER waivers, which allow fire departments to use grant funds to rehire or retain personnel, expired in Fiscal Year 2010. Representative David Price (D-NC) offered an amendment to H.R. 1, House legislation to continue funding the federal government, to extend the waivers for Fiscal Year 2011. The amendment passed on February 16 by a vote of 267-159. We have initiated a comprehensive review of the impact of the November races at all levels of government, including analyses of gubernatorial races, changes in state legislative majorities, summaries of our members fared in both pro-fire fighter and anti-fire fighter/public employee initiatives and referendums and other issues. This IAFF will find a way to succeed in the new political climate. For the first time in its 32-year history, FIREPAC has topped the $5 million mark in fundraising during an election cycle (2009-2010). Despite tough economic times, IAFF members around the country stepped up to help make a difference. And, FIREPAC continues to rank as one of the top PACs in the country. In addition, FIREPAC once again was the most bipartisan PAC within labor, contributing the largest percentage of its PAC dollars to Republican candidates. We also announced a new FIREPAC donor level – the Chairman’s Council – for members who contribute $750 or more per calendar year. In Canada, we continue to work to advance the issues on the Canadian legislative agenda, including the need to establish a national Public Safety Officer Compensation (PSOC) benefit and a national office for fire service statistics, and to extend funding for pandemic planning. These issues will be the focus of the Canadian Legislative Conference in April. Planning for the proposed Canadian Political Training Academy is continuing in greater detail, with potential dates for the three-day program in late April and early June in Ottawa.


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Fighting Back Campaign: We are fighting back against the multiple attacks on our members on multiple issues with an aggressive campaign that includes print, broadcast and social media to deliver our message that fire fighters are not to blame for the nation’s financial straits. These efforts include full-page ads in USA Today and Politico, editorials, videos and media interviews. I was a guest on the nationally syndicated Ed Show on the radio and appeared live on MSNBC’s Ed Show to let the nation know that America’s fire fighters and paramedics are not the problem and to expose those with politically motivated agendas and who use our economic shortfalls to diminish everything we’ve fought for over the decades. We’ve also developed a new web site – IAFF Fighting Back (www.IAFFFightingback.com) – as part of the multi-faceted public relations and media campaign to respond to attacks on pensions, pay, collective bargaining and other benefits, and to let the media and the public know the truth. This site features all of the campaign materials, including print ads, videos, op-eds, other news related to the effort and information and tools affiliates can use for local media and elected officials. Another component of the campaign is to leverage our social networks (Facebook, Twitter, Frontline Blog) to spread our message and help affiliates. These efforts have been widely received and successful. And, as you know, we have established a new Pension Resources Department to assist affiliates with pension-specific issues. This new department is also establishing a pension plan database, compiling a list of pension experts – such as actuaries, attorneys, consultants and public sector advocates – and has developed a pension resources web site to help affiliates fight back. The challenges we face are serious, as we saw just last week in Madison, Wisconsin, when public employees and their supporters crowded the State Capitol, city streets and plazas to protest Governor Scott Walker’s assault on labor and attempts to repeal collective bargaining rights under the guise of solving the state’s budget woes. I flew to Madison to help our brothers and sisters in the fight. That such an assault and counter-protest could even occur in a pro-labor stronghold like Madison is a clear indication that the coast-to-coast attacks on our members is real. The Madison demonstrations have put the spotlight on the growing number of vicious anti-union budget battles unfolding in other states. We are taking a serious and comprehensive approach to protect our members. This is a major push-back effort to respond to the attacks by politicians and the media. We will fight these unfair attacks wherever they happen. Motion was made to fund the “Fighting Back” plan and supplemental budget. Motion was seconded and passed unanimously. IAFF Development Department: As part of an internal restructuring, we have established a Development Department. This new department is a reorganization of existing charitable entities that has become part of the Education, Training and Human Relations Division. The Development Department oversees the IAFF grants operation and the new IAFF Foundation – which combines all current IAFF charities under one umbrella. This includes the Burn Foundation; Scholarship Fund; Fallen Fire Fighter Memorial Fund; Fire Fighter Reward Fund; John P. Redmond Fund and the Disaster Relief Fund. Affiliate Leadership Training Summit: We held our most successful Affiliate Leadership Training Summit (ALTS) to date, with more than 1,100 paid registrants. We also partnered once again with the International Association of Fire Chiefs (IAFC) to hold our second Labor-Management Initiative (LMI) Conference, which drew more than 400 attendees.

http://www.iafffightingback.com/


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International Fire Fighter Magazine: Our November-December issue featured a special insert on the IAFF’s efforts to reform and promote the Staffing for Adequate Fire and Emergency Response (SAFER) grant program, and our success in putting thousands of IAFF members back to work. I visited members in Akron and Elyria, Ohio, soon after they received SAFER funding and met with the more than 30 fire fighters who had been rehired after being laid off. Some of these members are featured on the cover of this issue. Our most recent January-February edition focuses on the widespread political attacks on our members on a number of fronts, including pensions, pay, collective bargaining and other worker rights and benefits. The article, “Sounding the Alarm,” provides an account of the various threats in states from coast to coast and outlines the national campaign the IAFF is undertaking to respond to the wave of attacks. The March-April edition will include a special section devoted entirely to the numerous threats facing our members and provide an overview of the Fighting Back Campaign. Health and Safety: Our Health and Safety Division continues work on the development of our new lightweight SCBA vessel, replacing the current cylinder and backpack. This revolutionary new SCBA reduces the weight compared to conventional SCBA and substantially reduces the profile allowing for better weight distribution and center of gravity. We have completed one field study and the final study will be complete by the next Executive Board meeting. We were required to request an additional approval from the Department of Transportation (DOT) regarding the cover and manifold design, which has delayed the project. IAFF Financial Corporation: The economic outlook for 2011 is expected to be one of continued moderate growth. The manufacturing sector and service sectors saw substantive growth over the second half of 2010. This has led to more hiring of temporary workers and some economists believe that the next step is the hiring of permanent workers in these sectors in 2011. While this is good news for the long term, the housing market continues to drag down the recovery. The IAFF Financial Corporation (IAFF-FC) programs have experienced moderate growth, and program providers remain financially stable. Unfortunately, our mortgage program reflects the nationwide decline in new home purchases and the refinancing of existing loans. The overwhelming achievement of the year is that our FrontLine Deferred Compensation Program now has total assets in excess of $2 billion. Get It Union Web Site: We have built and launched a new “Get It Union” web site (www.getitunion.com) as a resource to help IAFF members find and buy union-made products. The site uses what's already on the Internet, including many resources from other unions, to provide links on the web to products made and services performed by union workers. The site also features links to other sites for finding products made in the United States or Canada. IAFF ONLINE JOB CENTER: We launched a new online Job Center (www.iaff.org/jobs) listing employment opportunities with fire departments in the United States and Canada, as well as job openings at the IAFF, other labor unions and municipal, state, provincial and federal agencies. The service is free to members and employers. IAFF Headquarters: Jim Larkin has been appointed to lead the Human Resources Department as Director of Human Resources. Jim comes from the Legal Department where he has been our Assistant Legal Counsel. Ronald Saathoff, former president of San Diego Local 145 has been appointed Director of Pension Resources. Paralegal Juan Romero has transferred to the new Pension Resources Department to help develop the IAFF’s response to increasing attacks on fire fighter pensions and retirement security. In November 2010, as part of a reorganization the Communications and Media Department

http://www.iaff.org/jobs


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was brought under the Governmental, Political and Public Affairs Division. The vacancy for a Governmental Relation representative (Grade 8) in the Governmental Affairs Department has been filled by James Cho, a Capitol Hill veteran who most recently worked for defeated Florida Representative Ron Klein. Additionally, Andy LaVigne has joined the IAFF, filling the vacant Political Relations (Grade 8) position. He most recently managed the re-election campaign of Kentucky Representative Ben Chandler. In January, Governmental Affairs Assistant Sandy Hamamoto began duties in the Canadian Office as a Grade 8 to assist with our Canadian federal lobbying program and to provide political action advice to Canadian affiliates. Director Jennifer Stewart, who manages the Grants Administration operation, is now Director of Development. Ronald Benedict, GIS Assistant (Grade 8) in the Fire and EMS Department, was transferred to Development Department Assistant (Grade 8) in the new IAFF Development Department. Stephen Decker, previously the Finance Coordinator (Grade 8) in the HazMat/WMD Training Department is now the Finance Coordinator (Grade 8) in the IAFF Development Department. Grade 8 Assistant for the Alumni program and Global Alliance Scott Dennis has laterally transferred from the Information Technology Division to the new Pension Resources Department. Katie Shelton has been promoted to Grade 8 in the Information Technology Division to take over the Alumni program and Global Alliance. The Membership and Budget and Finance Departments have been restructured. Jennifer Harris’ title is now Director, Accounting; Lisa Waters’ title is now Director, Budget/Membership.

GENERAL SECRETARY-TREASURER’S REPORT General Secretary Thomas Miller began with a brief report on the IAFF’s financial situation and recent developments in the General Secretary-Treasurer’s office. Financial Overview: 2010 proved to be a good year for the IAFF’s fund balance. During a convention year, the International realized a $1.7 million dollar increase in its fund balance, which grew from $24.1 million to $25.8 million. That’s no small feat considering the expense of putting on the IAFF’s 50th convention in San Diego and the incredibly tough economic trends facing our affiliates. While the average interest rate of IAFF CD investments dropped almost a point, the International’s investment in the AFL-CIO Housing Trust held near steady at 6.1%. Considering the continuity of the Housing Trust’s returns and the unpredictability of the Canadian Exchange Rate, we successfully moved $2 million from Canada to the U.S. fund in October, locking in a favorable exchange rate. And already in 2011, we’ve transferred another $1 million from Canada, and we intend to move down an additional $2 million in mid-March. Our goal is to take advantage of the highest interest rates possible while keeping an eye on diversification to avoid unnecessary risk. Moving money from Canada aided the growth of the International’s Reserve Fund from $2.1 million to $3.5 million, an impressive $1.4M increase in 2010. Not to be overlooked, EDF expanded in 2010, as well, growing from $2.3 million to $3.3 million, providing more opportunity for the IAFF to protect and assist our leadership and membership. The favorable variance we encountered on our contingency balance available for general rollover is very good. Budgeted at $1.6 million, the actual Rollover came in at $1.923 million – an additional favorable variance of $323,000. Appearing as Non Per Capita Revenue on the line item budget, this $1.923 million rollover is a valuable resource to the International. 2010 also proved to be a very good year for our Staff and Employee Pension Funds. The Staff Fund went up 13.05% and the Employees Pension Fund was up 13.31%. Both fund managers outperformed their equity indexes, and we hope they do it again in 2011. Audit: The auditors arrived in October and scrutinized our financial statements, and the Trustees arrived in January to do their own examination. Though generally accepted accounting principles such as FASB 158 continued to exaggerate our unfunded liability and put downward pressure on our net


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assets, both the external auditors and the Trustees provided clean, favorable reports on the International’s FY2010 financial statements. We have implemented two internal policies on recommendations from the auditor. Office of the General Secretary-Treasurer: In the continuing effort to improve efficiency and make use of the latest technology, my office has been reviewing our current business practices and implementing improvements to facilitate better operations. As you know, a number of senior level personnel changes have been made, and a restructuring of the departments that fall under my authority was done to ensure that we are making the best use of our staff. The IAFF Budget and Finance Department under the direction of AGST Don Copley has been reorganized and I have divided the responsibilities into two major components. Jennifer Harris is now the Director of Accounting and supervises six staff that are responsible for financial transactions. Lisa Waters was promoted to Director of Budget and Membership and supervises six staff who oversee budget and membership. The Human Resources Department has also been restructured and Jim Larkin from the Legal Counsel’s office has been appointed in a reclassified position of Director, Human Resources and General Administration. Operationally, the budget process was updated last fall to ensure that the budget template used by staff accurately reflected the lines in the budget as they are presented to the Executive Board. Additionally, the budget template was filled in with actual salary, benefit and variances to correctly reflect current budget realities. These two modifications streamlined the process tremendously and ensured the successful completion of a timely and accurate budget. We also invited the Chairman of the Budget and Finance Committee Vice President Todd into Washington to get his advice and recommendations on what he thought may make the budget process more efficient. To build on this and strengthen communication internally, AGST Don Copley is now meeting with each Assistant on a quarterly basis to review line item report expenditures and variances. We also took a very close look at our needs for solid pension advice, and we decided to move our pension administration to a nationally known law firm that specializes in pension management, Ice Miller. This move allows us to bring all of our pension services under one umbrella and create more efficiency. We have also just completed the amendments and restatement of the employee and staff pension plans for the IAFF. They have been submitted to the IRS for approval and Mary Beth Braitman, from Ice Miller, will be going into more detail on that later in the Board meeting. The decision was also made to move all of our in-house insurance coverage and the bonding of our locals to S.F. & C. Insurance, which runs the IAFF-FC Insurance Division. This move means that in addition to the IAFF benefitting from an overall premium savings, the IAFF-FC will receive 5% of the overall commission as a royalty. Per Capita Statements: In the area of affiliate resources, the GST’s office has worked closely with the IT Division to roll out electronic Per Capita statements. Until now, hard copies of all Per Cap statements were mailed out to every affiliate via U.S. Mail. Now, locals have the option to receive their statements by mail or email (or both if they so desire). We initiated the new process this month, and I’m proud to report that it has been very well-received. Many affiliates are choosing to receive their statements by email only. This new program also nicely complements the online Per Capita payment option, which continues to rise in usage among our affiliates.


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Booth at Conferences: To advertise these new features we have sent blast emails to leadership and we are making ourselves available to field questions and concerns by hosting a booth at the Legislative Conference in March and at the Redmond/EMS Conference in August. Electronic Vouchers: We also have been working closely with IT to develop the Electronic Expense Voucher system that the Executive Board passed a motion to implement by the end of this fiscal year. In considering the options out there, our Accounting and IT staff worked to find a software solution that truly automates the entire process; from initial entry of expenses by an Officer, Board or staff member, all the way through the accounting process.

Fund Balances General Secretary-Treasurer Miller reported the various balances as of December 31, 2010 and made a Motion that the Fund Balance be accepted.

IAFF - General US $4,340,475

IAFF - General Canada 3,202,792

IAFF - General Total 7,543,267

Alumni Association 14,652

EDF * 3,334,016

PROP 1,184,881

IAFF - PAC ED 101,850

IAFF - POL ED 19,275

IAFF - PAC VIC 2,290,033

IAFF Reserve Fund 6,231,377

IAFF 2012 CONVENTION 252,692

IAFF - Accrued Benefit Reserve ** 1,398,604

IAFF - Disaster Relief Operations 1,242,768

Motorcycle Group 21,219

Disaster Relief Fund-General 91,432

Fallen Fire Fighter Memorial Fund 636,665

Burn Foundation 440,692

Redmond Foundation 275,568

McClennan Scholarship Fund 424,473

Hazmat/WMDT**** 251,961

NYFF 9-11 Fund in US Bank*** 905

Fire Fighters Relief Fund 9-11 in Royal Bank of Canada 38,678

Counseling Support Foundation 1,371

TOTAL $25,796,379 *After $227,998 committed to locals. **Actual Accrued Benefit payable estimated is $2,449,541 ***After $190,492 committed for NYFF 9-11 obligations ****Bank balance never overdrawn, just the GL balance. Transfers are

made as needed once the GL is updated. Motion was Seconded and Adopted Unanimously.


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Investment Report The current investments in the AFL-CIO Housing Investment Trust, along with funds in various banking institutions were provided to the Executive Board.

Voluntary Forfeiture of Charter Motion was made by General Secretary-Treasurer Miller that the following locals be dissolved by voluntary forfeiture in accordance with the provisions of Article XII, Section 2, of the IAFF Constitution:

Local 1305, Prichard, AL

Local 1629, Columbus, MS

Local 4774, Hope, AR

Local 4738, Brighton, MI Motion was Seconded and Adopted unanimously.

Involuntary Forfeiture of Charter Motion was made by General Secretary-Treasurer Miller that the following locals be dissolved by involuntary forfeiture for non-payment of per capita in accordance with the provisions of Article XII, Section 3, of the IAFF Constitution:

Local 4604, Hillsboro Professional Fire Fighters Association, TX

S-27, Tennessee Fire Service Instructors Association, TN Motion was seconded and Adopted Unanimously. Motion was made by General Secretary-Treasurer that the following locals be dissolved as an involuntary forfeiture in accordance with Article 12, Section 3, failure to comply with the provisions of the Constitution & By-Laws regarding three-man locals:

I-05, Texarkana, TX

I-73, Great Adventure, NJ

F-145, Presidio of San Francisco, CA

Local 3231, Adamsville, AL

Local 4426, Caddo Parish Fire District 6, LA

Local 4450 Anderson City Fire Fighters, SC Motion was Seconded and Adopted unanimously.

Locals Placed on Hold Motion was made by General Secretary-Treasurer Miller that at the request of their District Vice President, the following locals will be placed on hold due to delinquent per capita until the next Board meeting:

Local 3815, South Padre Island, TX

Local 4282, Pleasant Valley, NY

Local 4212, County of Orange Fire & EMS, VA

Local 4558, Stonelick Township Professional Fire Fighters, OH

Local 4180, Greenville Uniformed Fire Fighters and Paramedics, SC

Local 4655, Columbus Fire Fighters Association, GA

Local 4699, Old Fort Association of Professional Fire Fighters, SC



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Mergers Motion was made by General Secretary-Treasurer Miller that pursuant to Article 12, Section 2, the Board was notified of the following mergers:

Local 1233 Ottawa Hills, OH into Local 92, Toledo, OH Motion was Seconded and Adopted Unanimously. Motion was made by General Secretary-Treasurer Miller to approve the following mergers and amalgamations pursuant to Article 12, Section 2:

Effective July 1, 2011, Local 4096, Carmel Valley will merge into Local 2606, Monterey County Regional Fire Protection District

Local 3182, Golden Gate and Local 2396, East Naples, will amalgamate as Local 2396, Collier Professional Firefighters & Paramedics.


Income Status Report General Secretary-Miller reported on the Income Status report for the period ending December 31, 2010, as follows: ANNUAL *-----------YEAR-TO-DATE---------------*

NON PCT INCOME BUDGET BUDGET ACTUAL VARIANCE

General Non-PCT Revenue (Non-Allocated)

Initiation, Reinstatement, & Charter $150,000 $37,500 $30,240 $(7,260) Interest 300,000 75,000 71,780 (3,220) Financial Corporation 121,914 30,479 35,553 5,074 MDA/MDAC Non-Allocated 218,725 54,681 54,681 0 Advertising 495,000 123,750 141,400 17,650 Other Income 10,000 2,500 2,167 (333) Balance from Prior Year 1,650,336 1,650,336 1,923,913 273,577 Sub-Total General Non-PCT Revenue (Non-allocated)

2,945,975 1,974,246 2,259,734 285,488

Grants/Cooperative Agreements/Contracts (Non-Allocated)

Indirect Administrative Overhead 767,153 191,788 132,970 (58,818) Personnel Reimbursement 407,638 101,909 79,731 (22,178) Sub-Total Grants/Cooperative Agreements/Contracts (Non-allocated) 1,174,791 293,697 212,701 (80,996) Grants/Cooperative Agreements/Contracts and Misc Revenue (Allocated Non-PCT Revenue)

MDA/MDAC Revenue Allocated 524,275 131,069 131,069 0 FIREPAC Revenue Allocated 249,250 62,312 18,813 (43,499) Conference/Event Direct Non-PCT Allocated** 1,826,528 456,632 294,715 (161,917) Grant Direct Non-PCT Revenue Allocated** 1,209,040 302,260 157,583 (144,677) Misc Direct Non-PCT Revenue Allocated** 2,255,246 1,562,059 1,414,267 (147,792) Sub-Total Grants/Coop 6,064,339 2,514,332 2,016,447 (497,885)


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Agreements/Contracts (Alloc Non-PCT rev)

Total Non PCT Revenue $10,185,105 $4,782,275 $4,488,882 $(293,393)

Total Per Capita Tax $38,803,320 $9,700,830 $9,832,481 $131,651 Less Restricted PCT (FIREPAC, EDF, PROP, REDMOND) (6,461,640) (1,615,410) (1,637,278) (21,868) General Per Capita Tax 32,341,680 8,085,420 8,195,203 109,783 Less PCT Allocated by Prior Board Approval 0 0 0 0

General Per Capita Tax - Adjusted*** $32,341,680 $8,085,420 $8,195,203 $109,783 *Favorable rollover from the prior year that was higher than originally budgeted.

**Timing of: conferences, new Development activity, & special events.

***There is $109,783 available to be transferred to the Reserve Fund.

Motion was made to accept the December 31, 2010, Income Status Report. Motion was Seconded and Adopted unanimously.

Financial and Membership Reports The following reports were presented to the Executive Board members for their review: Department Reports, Membership Report, District Budget Report, Grant Status Report, Technical Assistance Report, and New Local Report. Motion was made by General Secretary-Treasurer Miller that these reports be accepted. Motion was Seconded and Adopted unanimously.

Technical Assistance and First Contract Policies The following are the expenditures from October 26, 2010 through January 31, 2011, Line 507:

Local # City/State Amount

Approved

Total Expenditures

to Date Outstanding Commitment

Issue: Consultant services for presentation/testimony with interest arbitration 2920 Noble, OK $3,500.00 $1,185.00 $2,315.00 157 Oklahoma City, OK $3,500.00 $1,340.00 $2,160.00 2380 Highland Heights, OH $3,500.00 $3,500.00 $0.00 2217 Whitehorse, YT (Canada) $3,500.00 $1,332.00 $2,168.00 735 Bethlehem, PA $3,500.00 $0.00 $3,500.00 2707 Oswego, NY $3,500.00 $0.00 $3,500.00 2284 McAlester, OK $3,500.00 $0.00 $3,500.00 2374 Warr Acres, OK $3,500.00 $0.00 $3,500.00 4679 Scugog Prof FF (ON) $3,500.00 $0.00 $3,500.00 4067 Skiatook, OK $3,500.00 $0.00 $3,500.00 2067 Norman, OK $3,500.00 $3,500.00 $0.00 714 Niagara Falls UFAA, NY $3,500.00 $3,500.00 $0.00 2359 Edmond, OK $3,500.00 $0.00 $3,500.00 2085 Bethany, OK $3,500.00 $0.00 $3,500.00 3958 The Village, OK $3,500.00 $0.00 $3,500.00 2171 Del City FF (Newcastle), OK $3,500.00 $0.00 $3,500.00 734 Baltimore City, MD $3,500.00 $0.00 $3,500.00

Issue: Financial assistance with first contract 4753 Calhoun County, IA $3,500.00 $400.00 $3,100.00


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4792 Washington Co Professional EMS, PA $3,500.00 $3,500.00 $0.00

F263 Federal Firefighters of Hawaii $3,500.00 $3,500.00 $0.00 4755 Berks PFF, PA $3,500.00 $1,425.00 $2,075.00

4686 Caledon PFFA, Bolton, ON (Canada) $3,500.00 $0.00 $3,500.00

New Locals The following is a list of new locals organized since the last meeting:

District Local Name Members Charter

Date 3 4824 Hopkins Hill Fire Fighters, RI 9 12/1/2010

4 4830 Campbell County Prof. Fire Fighters Assoc., VA 17 11/15/2010

4 4838 Harrisburg International Airport Fire Department, PA 11 1/3/2011

4 4839 West End Prof. Fire Fighters Assoc., PA 14 1/6/2011

5 4831 Somers Prof. Fire Fighters, WI 9 11/15/2010

6 4810 Pitt Meadows Fire Fighters,BC 3 2/1/2011

6 4819 Cochrane Fire Fighters Association, AB 60 12/1/2010

8 4827 Suttons Bay- Bingham Prof. Fire Fighters, MI 6 11/15/2010

8 4828 Brookfield Prof. Fire Fighters, IL 19 12/7/2010

8 4833 South Elgin Prof. Fire ighters, IL 27 12/15/2010

9 4327 Snowmass Fire Fighters, CO 11 11/22/2010

10 2312 Vernon Firemen's Association, CA 69 2/1/2011

11 4832 Bowie Prof. Fire Fighters, TX 12 2/1/2011

12 4836 Santa Rosa County Prof. Fire Fighters, FL 10 12/13/2010

14 3026 McMinnville Fire Fighters Assoc., TN 19 1/1/2011

14 4834 Grambling Fire Fighters Association, LA 6 12/1/2010

TOTAL 302

Reinstatement of Old Local Number Motion was made by General Secretary-Treasurer Miller at the request of Vice President Walsh that newly merged Local 1997 receive their old number of 1828. Motion was Seconded and Adopted unanimously.

Royalty Checks The IAFF received from the AFL-CIO for the credit card program a total of $111,561 since the November 2010 Board meeting for a total of $148,806 this fiscal year. Pursuant to policy, these funds will be placed in the convention line to offset convention expenses.