Control over union dues
is at center of suit
against HNAThe association's former
bookkeeper and executive director
are accused of misappropriating funds
The lawsuit filed Thursday in federal District Court by the union representing Hawaii's registered nurses against the Hawaii Nurses Association brings to a head a long-standing dispute between the two groups over who controls the money collected in union dues.
At the heart of the dispute is the union charge that interference by the HNA board of directors in the fiscal and decision making autonomy of the collective bargaining organization is a violation of federal labor law.
It also challenges HNA's assertion that the union is a subordinate entity, thereby entitling HNA to manage the union's money.
The suit was filed against HNA; its board of directors; its prior fiscal officer, Maureen McCarthy; past executive directors of the HNA, Christi Keliipio and Nancy McGuckin; and current acting director, Stephani Monet.
It includes charges that HNA officials failed to make timely reports to various government bodies such as the federal Department of Labor, did not conduct required audits, perform routine accounting tasks or abide by generally accepted practices in the handling and management of funds. Further it alleges that HNA misled union officials and refused to provide documents when the union was trying to get to the bottom of the problems.
McGuckin, Monet and Lenora Lorenzo, HNA president and board member, said they had not seen the suit and declined comment.
The union alleges McCarthy, a 15-year employee who handled the organization's accounts, wrongfully used union funds in cashing out more vacation time than she could have accrued. The amount in question was $20,000. McCarthy resigned her position in July. The union charges all three HNA executive directors failed to monitor and supervise McCarthy thereby making financial mismanagement possible. It also says acting director Monet charged large sums of personal expenses to the HNA credit card.
The union is seeking an order to force HNA to turn over all records and documents necessary for it to conduct an audit, turn over money that is solely the unions, such as its strike fund, and make up for the money it believes was wrongfully taken by the former bookkeeper. It also wants HNA to pay damages for negligence and is asking the court to rule that the union is fiscally and organizationally independent of HNA.
Union board vice chairman, Bill Richter noted that within several months of the union initiating its inquiry about HNA finances, both McCarthy and Kelliipio resigned their positions. They could not be located for comment.
Richter said the latest action is not the first time there has been trouble between HNA and the collective bargaining organization.
"Back in 1989, there was an attempt by HNA to take over the collective bargaining organization and the funds it generates," he said. Richter said union dues generate most of the funds for the organization.
"HNA does generate somewhere in the neighborhood of $70,000. A lot of it is through classes and in-services, but they have also sold the member mailing list to various organizations. I believe the collective bargaining organization generates in excess of $1 million per year," he said.
HNA Director of Collective Bargaining Sue Scheider, also a plaintiff in the suit, said the union had tried to get answers from HNA's administrators for some time before it decided to file the suit.
"It's really too bad that it has come to this. We've been trying to talk to them for a very long time," she said. "Now what we've unearthed is mismanagement beyond belief."
