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Esperanza Unida says labor funds seeking to destroy it
Agency filings hint at disarray

March 13, 2006 -- Labor union benefit funds are seeking to destroy Esperanza Unida, a south side social service agency, by suing it for allegedly past-due benefit payments, according to documents filed in federal court.

"Plaintiffs have continued the hostility against the Mexican, Puerto Rican, and African-American communities displayed by the labor unions by seeking to destroy the only community-based organization which has repeatedly and historically challenged the "whites only" membership and leadership practices of the underlying labor unions that give reason and substance to the plaintiff funds," wrote Esperanza attorney Nirciso Aleman.

The allegations are made in a filing related to a federal court lawsuit filed against Esperanza Unida alleging that the agency failed to make more than $3,800 in payments to building trades and carpenters' union benefit funds on behalf of agency employees.

Benjamin Menzel, attorney for the funds, could not be reached for comment early Monday morning. Court documents filed by Menzel, however, said the union funds are seeking past due contributions and interest, as well as court costs.

Esperanza's filing portrays an agency in trouble both financially and administratively, with records and financial reports removed or lost.

Esperanza Unida denies that it owes any money. It said that it contracted with labor unions more than 10 years ago to establish training and apprenticeship programs "to break the (unions') exclusion of Mexican, Puerto Rican, Latinos and African-American workers from their ranks and their leadership. It was a contract resisted by plantiffs' leadership."

When agency director Richard Oulahan suffered a brain aneurysm in 2004, "Esperanza Unida's funding became uncertain," Aleman wrote. The agency sought relief from creditors, and most were willing to renegotiate obligations in "view of the organization's devastating financial reversal," he said.

The labor unions refused to do so, even though Esperanza Unida ended the training programs because of lack of funds.

"Esperanza Unida's management and the board of directors have undergone several complete changes," Aleman wrote. "The new Board of Directors has been left without records, information, documents, and financial reports. Plaintiffs continued to demand payment on work that was no longer being done and through this action seek to destroy Esperanza Unida Inc."

To read the filing, click here.

To read the original lawsuit, click here.

 

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