Compass Correction Update (Cleary Fires Seham): October 19, 2011
Dear USAPA Members,
President Cleary recently decided to fire the law firm, Seham, Seham, Meltz & Peterson without consulting the Board of Pilot Representatives (BPR.)
This law firm has been the General Counsel for USAPA since before it officially existed (see letter below.) Their lead attorney, Lee Seham, is one of the best Railway Labor Act (RLA) lawyers in the country. The reason for this abrupt termination has been branded as “billing irregularities.” While we have good reason to doubt that claim, if there are billing issues – it’s a failure by the National Officers to audit billing and a failure of BPR “due diligence” to oversee and control our union’s business. Bottom line: it’s the job of the BPR to hire and fire attorneys – not Mike Cleary.
To replace Lee Seham, President Cleary has “hired” a replacement law firm which bills us at $400 per hour! That’s almost DOUBLE what Seham charged! This new firm stays at first class hotels – recently billing USAPA at $350 per night for accommodations at the downtown CLT Westin. President Cleary took this action without any required BPR discussion or approval; no agenda item, no debate, no resolution, no line pilot input, no vote by the BPR. Absolutely no compliance with the constitutionally required process. In essence, he’s thumbing his nose at every single line pilot out there.
Now, after this irrationally impulsive move, we find ourselves going to court in Phoenix in 2 months.
We will be in Judge Silver’s courtroom to protect your seniority without the benefit of Lee Seham’s intimate knowledge and experience specifically related to this case. Hopefully, the new firm can, and will, burn the midnight oil getting up to speed in time to do a credible job.
But how much will this “education” cost USAPA? How do we know if this firm has the depth of experience and knowledge of Labor Law much less what Lee Seham experientially brought to our case? The predicament in which we now find ourselves is a result of Mike Cleary’s unconstitutional and ill-considered act; less a “decision” and more the predictable Cleary “impulse.”
The blame for this rests clearly on the Board of Pilot Representatives. They have either been lax in their duties (with some notable exceptions) or they have been corrupted by President Cleary handing out cushy Flight Pay Loss appointments with time off for the FOM (Friends of Mike). Why is the BPR willing to look the other way and avoid confrontation when Cleary fails to follow the Constitution? This disregard for union procedures has placed our entire membership, East and West, in jeopardy. And make no mistake: it places all of us in jeopardy if there is a corporate transaction (think merger).
But don’t worry; the BPR is coming back to power! Why, just recently, during their fall meeting, President Cleary let them debate and vote on the weighty decision as to which Wireless Communications Carrier USAPA would use!
A concentration of power with the very few has always led to failure. The arrogance of power and the assumption of privilege by the power hungry has historically been the sure-fire recipe for the destruction of ideas, movements, empires and people. Why can’t we learn?
USAPA was conceived as a representational organization whose legitimacy rested completely upon the concept that the Line Pilot was King since they are the “owners” paying for everything.
Ideas for change, resolutions and the causes to be fought for were to originate from the line pilot and acted upon by the BPR (our “Board of Directors” if you will.) With this focal input from line pilots, the BPRs job was to act on this guidance, meet to debate, work to consensus, and vote on resolutions to put the line pilot’s wishes and best interests at the forefront and into action.
The Officers were to have been executives; that means they are to EXECUTE the DIRECTIVES of the Line Pilots, as conveyed to them through their Representatives on the Board. Specifically, the National Officers were intended to EXECUTE the will of the pilots via the BPR. This was all designed to PREVENT any one person from imposing and/or initiating personal unilateral strategies. THE PRESIDENT OF USAPA IS NOT TO HAVE A VOTE either directly, or through his cronies on the Board.
Fellow pilots, our union is broken. The process is suffering under an over controlling, selfish, scheming and domineering President – an acting dictator. It’s long past time for the BPR to take control of USAPA. National Officers and the BPR must follow the Constitution and By-Laws – all the time – every time. With the firing of our lead attorney without BPR approval – the President has placed this union, its membership, and its goals at risk and in great peril.
Remember, this union has a responsibility to communicate the union’s business to you. Do you really want to see more “copying and pasting” from articles you’ve already read elsewhere, or do you want real information about what’s going on with your dues dollars? How ARE they doing with communications?
It’s wonderful for everyone to “just get along.” But that becomes devastating when certain leaders take advantage of the trust placed in them. Politically, it becomes more important than “playing by the rules” and it costs each - and every one - of us. If anyone wants “sole-authority,” let them pay all the costs and see how long they last.
It’s time for some accountability!
Fraternally,
Rich Wargin
B-737 CLT
Jed Thomas
AB-320 PHL
Note: The Date on the letter below from President Cleary is dated the day before the beginning of USAPA’s Fall Board of Pilot Repetitive Meeting in Charlotte.
October 3, 2011
Seham, Seham, Meltz & Petersen, LLP
445 Hamilton Avenue, Suite 1204
White Plains, New York 10601
Via email and Certified Mail Return Receipt
Dear Mr. Meltz:
As you no doubt are already aware, the Board of Pilot Representatives has approved a Resolution establishing a process for auditing legal bills including those from your firm. As I indicated in my previous letter, the process is neutral and impartial and will preserve the attorney-client and other privileges with respect to information necessary to complete the audit. The Board has directed all counsel to cooperate with Sarah McShea who has been retained as special counsel for the purpose of the audit and the accounting firm of Holtz, Rubenstein and Reminick who will work under her direction and control. A copy of the resolution is enclosed. I expect that Ms. McShea will be contacting you in the near future. I trust that you will cooperate with her and respond to whatever request she may make as directed by the BPR in the Resolution and, in any event, will do so more promptly than you have not to the requests made in my September 6 letter.
Again, I am compelled to note that there is absolutely no truth to the baseless allegations in your letter that the audit “is motivated by animosity related to personal considerations.” The Resolution I proposed and that the BPR adopted completely undercuts these allegations and I ask that you refrain from continuing to repeat them.
I confirm that your firm does not act as general counsel and that you have no continuing responsibility with respect to either the Merger Committee or the Safety Committee.
I repeat the instructions stated in my September 15 letter. Namely, please send me a list identifying all matters your firm is handling on behalf of USAPA, including the identity theft investigation. For each matter, please summarize the current status of the matter, the anticipated next steps and an estimate of the cost for those next steps. All bills submitted from this point forward must include the date of the services or expenses incurred, a concise and accurate description of the services including time spent and the person performing the services, and the cost. All expenses must be supported by receipts or other generally accepted contemporaneous written records. All properly submitted and supported bills for services and expenses will be paid in the normal course of business.
Please confirm that you have received, understand and will comply with these instructions and please promptly supply the information requested about all matters your firm is currently handling on behalf of USAPA.
Very truly yours,
Michael Cleary
President, US Airline Pilots Association
BE IT RESOLVED THAT the Board of Pilot Representatives directs and authorizes the conduct of an independent audit of all transactions between USAPA and the law firms and lawyers retained and paid by USAPA. The President and Secretary-Treasurer are authorized to engage Sarah Diane McShea as special counsel to conduct the audit and to report to USAPA’s Board of Pilot Representatives and the President and Secretary Treasurer as to whether the billings were accurate and the payments properly made. As special counsel, Ms. McShea shall insure that the attorney-client privilege is maintained with respect to any information necessary to audit the bills and payments. Ms. McShea is authorized to retain (on terms approved by the President and Secretary-Treasurer and the Board) the accounting firm of Holtz, Rubenstein and Reminick to function under her direction in conducting the audit. The President and Secretary-Treasurer shall promptly present appropriate retainer agreements with Ms. McShea and with Holtz, Rubenstein and Reminick to the Board for approval.
BE IT FURTHER RESOLVED THAT the Board of Pilot Representatives directs its officers, employees and agents, including the law firms and lawyers engaged and paid by USAPA to cooperate in the conduct of the audit and to provide whatever information Ms. McShea believes is necessary to complete the audit.
BE IT FINALLY RESOLVED THAT Ms. McShea shall have independent authority to take all action necessary and appropriate to complete the audit and that no Officer, employee or agent of USAPA shall interfere with the conduct of the audit. Ms. McShea shall keep the Board of Pilot Representatives and Officers informed of the progress of the audit, including its cost, and shall provide interim reports to the Board of Pilot Representatives and Officers as she sees fit. The audit may be terminated prior to its conclusion only by action of the Board of Pilot Representatives and then only after consultation with Ms. McShea. The final report shall recommend whatever additional action, if any, that Ms. McShea thinks is appropriate.