Contact: Sunny Mindel (212) 788-2958
Edward Skyler (212) 788-2969
Mayor Rudolph W. Giuliani today called on the City Council not to approve Introductory Number 459-A, legislation that would significantly weaken the laws originally enacted to free the City's public wholesale markets from organized crime and corruption. The bill, being considered today by the Council's Economic Development Committee, amends Local Law 28 of 1997, legislation sought by Mayor Giuliani and credited for ridding the Fulton Fish, Hunts Point and Gansevoort Meat Markets of organized crime.
"The proposed legislation, if adopted, would be a step back to the days when organized crime ran the public markets. It took new laws, special task forces and constant policing and oversight to free the markets from the grip of criminal enterprises. All that we have gained is now in jeopardy due to these proposals," the Mayor said.
"The Administration's successful public markets initiatives have enabled the City to exercise regulatory control over their operations and provide an atmosphere in which law abiding businesses can operate free from organized crime, corruption, and violence," the Mayor continued. "As a result, we have seen the markets become safer, competition return and costs decrease. These results benefit the unions, employees and customers. The markets are now sources of economic vitality for the City."
Like its predecessor, Local Law 50 of 1995 -- which only applied to the Fulton Fish Market-- Local Law 28 of 1997 ensured that union officials are of good character, honesty and integrity at all public markets. This bill would unduly narrow the definition of an "officer" of union or labor organizations. This narrow definition would lead to fewer background checks, creating a loophole allowing members of organized crime to infiltrate labor unions and insulate them from investigation because they do not hold a particular job title.
The proposed legislation would also immunize employees for illegal acts committed while in the scope of their employment. Since the current system protects employees who unknowingly commit illegal acts at the direction of their employer, there is no reason to shift all liability to the employer and diminish employees' sense of accountability and responsibility
"This bill does not protect the people who work at public markets," the Mayor said. "It puts them at risk by sending a message that organized crime is welcome at the very institutions where they work, at the very institutions we worked so hard to remove them from. The best way for Council Members to protect employees would be to vote against this legislation."
The proposal would more the double the amount of time by which labor unions, wholesale trade organizations and other market businesses must re-register with the City's Department of Business Services. Currently, the organizations are required to re-register every two years while the proposal would extend the requirement to five years. Also, while the current law requires such organizations to immediately report any material changes within them (such as the criminal conviction of an officer) to DBS, the Council's proposal would allow them thirty days to do so. These two extensions would give organized crime valuable time to infiltrate the various markets.
The proposal would amend the arbitrator selection process agreed to by the City Council and the unions in 1997, replacing it within an untested method which is more lengthy and bureaucratic. Since the current arbitration has yet to be used, there is no basis for replacing it. Finally, the bill would allow picketers to protest directly in front of targeted vendors. Currently, picketers may protest outside the markets to ensure their safe and orderly operation.
"As we have seen recently with NYPD and Manhattan District Attorney investigations, organized crime is still active in the City, infiltrating the construction
trades industry. Not only has the Council refused to consider for over a year
the administration's legislation allowing the City to regulate the construction
industry, but they now have chosen to weaken the effective public markets law,"
Mayor Giuliani concluded.