During yesterday’s LMCI conference call, trustees were unable to come to a resolution on how to proceed with LMCI operations following its termination (effective Dec. 13, 2018). As you may recall, the fund was terminated by the LMCI union trustees, not the employer trustees. The employer trustees made a motion to continue operations until all the reserves were utilized, but the LMCI union trustees did not support this motion.
Because there was no resolution, the LMCI employer trustees filed a Notice of Application for Interim Relief yesterday. The employer trustees ask this Arbitrator to find that limiting the expenditures of the Trust’s assets, following termination of the Trust Agreement and during the pendency of the arbitration, is a prudent and necessary exercise of the Trustees’ authorities and responsibilities. In the alternative, the employer trustees ask this Arbitrator to find that it is a prudent and necessary exercise of the trustees’ authorities and responsibilities to cease all operations of the Trust and all spending of the Trust’s assets.
It is important to remember that all liabilities are required to be paid by the Trust, so this action is not intended for the liabilities not to be paid, it is intended to preserve the Trust’s property, and to prevent it from being used in a manner inconsistent with the termination and wind down of the Trust. Interim relief is necessary to preserve the Arbitrator’s ability to provide effective relief and prevent the dissipation of a substantial portion of the Trust’s property before the Arbitrator has an opportunity to decide the issue of how those assets may properly be spent. Without interim relief, approximately $2 million of the Trust’s assets will, as a practical matter, escape the effect of the Arbitrator’s ultimate decision on the merits.
The LMCI employer trustees and the FCA leadership will continue to do everything possible to resolve this issue, and we continue to regret that this issue has disrupted local area relations.