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Union brass investigates local

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CRAIG T. KOJIMA /CKOJIMA@STARADVERTISER

Brian Ahakuelo spoke to the press Tuesday about the allegations.

Brian Ahakuelo, head of the International Brotherhood of Electrical Workers Local 1260, used union funds for personal expenses over the last three years, according to a list of allegations assembled by the parent union.

In a notice sent to members, the IBEW’s regional office chronicled 12 alleged spending violations by Ahakuelo from 2014 to 2016, ranging from paying for family trips to Las Vegas, where Ahakuelo’s daughter and son-in-law reside, to covering the legal fees of his son, Brandon, the union’s chief of staff, in a criminal case involving unauthorized entry into a motor vehicle. Among the allegations was that Ahakuelo paid off a $24,000 bank loan for a truck initially owned by his wife, Marilyn, also an employee of the union.

On May 6 the international union placed Local 1260 in trusteeship and put Ahakuelo and 18 staff members on paid leave during an investigation into the allegations. The international union set May 23 for a hearing to decide how long the trusteeship will last.

The list of allegations that led to the trusteeship included employees of Local 1260 using company vehicles without authorization and Ahakuelo changing personnel policies to benefit himself and his family. One such policy allows employees to cash out 52 weeks of vacation time, though union bylaws prohibit employees from accumulating vacation.

Ahakuelo, 55, said Tuesday he would retire from his position, but Thursday announced he had changed his mind and would stay on as head of Local 1260.

Ahakuelo said he has secured legal counsel and is considering action against the IBEW’s Washington, D.C.-based international union, which he said has made false allegations against him.

The allegations are “totally false,” Ahakuelo said at an impromptu press conference Thursday morning at a Kakaako park. “The union basically is a pure organization, but it’s people who make it bad. It was a witch hunt on me because there was a concern that I was getting too popular.”

“What they’re doing is they’re discrediting me … by saying that they’re the good guys … and the bad guys are me and my family, and that’s totally not true,” Ahakuelo said.

Local 1260 represents more than 3,200 electrical workers, including Hawaiian Electric Co. and TV station employees. IBEW named Harold Dias, a former state AFL-CIO president, as trustee of Local 1260 during the investigation.

In recent years Ahakuelo was criticized by subordinates for his spending of union dues, including the hiring of five family members.

Ahakuelo earned $201,712 in 2015, while his wife, Marilyn, director of community services for Local 1260, was paid $105,119, according to the union’s most recent financial report filed with the U.S. Department of Labor. Their son Brandon received $143,274, while daughter-in-law Neiani, executive assistant, earned $77,656. Ahakuelo’s sister-in-law, Jennifer Estencion, senior executive assistant, had a salary of $101,855, the filing shows. A fifth family member, son-in-law Eric Falkner, was hired in March as a training coordinator/organizer for $125,000 a year, though he lives in Las Vegas, according to IBEW records.

“If you go through local unions across the country, you have family members who work there. … It’s part of what we do,” Ahakuelo said. “If you look at how many family members I have working at the union and you look at the total number of how many people who work on my staff, it’s less than 20 percent of the staff. I didn’t just go and hand-pick people. There were resumes put in, there was a vetting process and they were qualified to do the job. To go ahead and defame my family, to go ahead and defame the organization I built within the last five years … and then have people come in from the mainland and take it away from you, now that’s a tragedy.”

Damien Kim, business manager and financial secretary for IBEW Local 1186, representing nearly 3,900 local electricians, said union bylaws do not prohibit a business manager from hiring family members.

“But it’s up to each business manager on who they hire. Whoever you hire should be doing the job. There should be no issues if they’re doing their job,” Kim said. “In Hawaii there’s a lot of people that are related somehow. (Hiring) immediate family is a little bit tougher (to explain), but it’s not like it’s never been done in Hawaii.”

IBEW said the investigation into Local 1260 is a significant development.

“Placing a local under trusteeship is a rare occurrence, and the IBEW does not take it lightly,” said IBEW spokesman Mark Brueggenjohann. “The (May 23) hearing will determine whether the trusteeship imposed on May 6 will continue. Our primary concern is to protect the members of Local 1260 and make sure that the dues that they pay are used properly by the local.”

Ahakuelo said he changed his mind about retiring because he wants to fight the allegations.

“I am not retiring from the IBEW. I’m going to see this through because I owe it to my membership. I owe it to my family. I owe it to the state of Hawaii that the truth comes out,” he said. “We cannot have people who are coming in from the mainland … and going ahead making these false allegations and putting someone on trial without due process. Due process to them is to take you out of the office, fool around with your records and then make false allegations of what you have done, which has been nothing wrong.”

Ahakuelo added he is considering running for vice president of the ninth district of the parent union. The current regional vice president is John O’Rourke, who is based in San Francisco and signed the list of allegations against Ahakuelo.

Ahakuelo said the reason the international union is bringing false allegations against him is because it was “jealous” of him and “fearful” that he would run for vice president. He said O’Rourke called for the “witch hunt.”

O’Rourke was not available for comment. The ninth district represents 131,000 workers in California, Nevada, Oregon, Washington, Alaska, Hawaii and the northern portion of Idaho, as well as on Guam and Saipan.

Several Local 1260 members, who asked not to be identified out of fear of losing union support, said many workers are aware of the alleged misappropriations. It’s a “touchy situation” because nobody wants to speak out against the union and risk losing protection, especially during a precarious time with the proposed sale of Hawaiian Electric Industries to Florida-based NextEra Energy Inc., the union members said.

“We let them do whatever they going to do, just for let us keep our jobs,” one union member said. “We know that they’re mismanaging funds, but what else we going do? (Without the union) we got nothing.”

Notice of Hearing to IBEW Members by Honolulu Star-Advertiser

51 responses to “Union brass investigates local”

  1. what says:

    If he could, he’d have the union rank and file pay for his legal fees.

    • cholo says:

      they are! he’s going to use the union lawyer paid by union dues. but don’t worry…. once again there’s nothing wrong with that!!!

    • ryan02 says:

      That’s probably why he changed his mind about retiring. Look at how Gary Rodriguez tried to get his union to pay for his criminal legal fees and almost $1 million penalty. And the unions wonder why the younger generations are less likely to support unionization.

  2. rossi says:

    If he believes that he did no wrong and is so popular, try taking a vote of whom the membership believes. Brian is a con man that is in desperation mode. The membership saw what was going on years ago, and finally someone listened. I want to see the accusations turned into monies spent, so we can see the enormity of this fiasco. Don’t forget the selling of the union building and the doubling of membership dues. I hope he and his family get all that they deserve.

  3. bsbsbsbs says:

    “I’m shocked, shocked to find there is crime going on in the unions.”

  4. Kawipoo says:

    Where does his chin end and his neck begin?

  5. McCully says:

    You think with the salaries they’re making, they can afford all the trips and car payments.

  6. davcon says:

    Just another example of greed. The same is going on in the political arena. we need to get the feds to look into our political corruption they would find that it is all tied together.

  7. Wonderful_World says:

    “We let them do whatever they going to do, just for let us keep our jobs,” –Talk about being brainwashed, almost like a cult! I hope when this person retires there’s money left in that pension & medical fund that THEY contributed to!

  8. postmanx says:

    Less than 20 percent of the staff was family, but 100% of his family was staff.

    • ryan02 says:

      Yeah, I’ll bet the only reason the percentage isn’t higher is because he ran out of family members! And he claims the family members were the best candidates — what, there was NOBODY in Hawaii who could coordinate training, that he HAD to give his son-in-law a $125,000/yr job even though he lives in Las Vegas? His defense seems to be that “everybody does it.” Well, maybe “everybody” should start going to prison, until nobody does it anymore.

    • Papakolea says:

      Hang on. You have to give son, Brandon, some credit. In 2007, he was a meter reader. Five years later, he’s chief of staff of the union earning six figures. He must have some smarts unless someone pulled some strings…HEY, WAIT A MINUTE!!!!

  9. bumbai says:

    If it looks like a duck and quacks like a duck it’s probably a duck…a big, fat, criminal duck.

  10. tutulois says:

    This sounds a lot like a replay of what happened when the national Teamsters union got wind of the corruption and nepotism in the local branch. As I recall, they locked the local officials out of the office, and both Tony Rutledge and his daughter ended up going to jail.

  11. haolecrab says:

    Local 1260 Members need to get behind the International. He and is staff are on “paid administrative” leave? What? Still being payed, no need come work: “Honey, we go Vegas for small kine break”….This at the cost of the Membership. Further, using Local funds to go after the International? This joker. thief, dishonest man should be impeached by the Members. The IRS should also take a look into his spending for personal expenses as taxable events and throw his okole in the poki. Shameful.

  12. 808ikea says:

    What is the difference between IBEW 1186 and IBEW 1260?

  13. ryan02 says:

    Do all locals have to file IRS forms, like the 990 or 990EZ? The Star-Ad should request the filings of all local unions (Teamsters; SHOPO; ILWU; etc.) and the publish the names of employees making over $100,000 (I believe the organization has to list all employees and contractors who were paid more than $100k). The members can then take a look and see which “familiar” names come up. Come on, Star-Ad — can you get this info and publish it?

  14. Masami says:

    Allegation #2 mentions that the family members of the Business Manager were paid salaries higher than allowed. Mr. Ahakuelo said that he paid them LESS than allowed. I’m so confused…..SOMEBODY is lying. 😉

  15. jankenpo says:

    “…you have family members who work there. … It’s part of what we do,””…sounds like a GEICO commercial.

  16. ready2go says:

    Disappointing to read about this investigation. Seems like too many of our local leaders are acting “stupid”! Lo-lo s!

  17. KWAY says:

    This guy just DOESN”T get it

  18. serious says:

    Just like the HPD and other government functions it takes our outside upper level to do the investigating. In Hawaii the unions and politicians are connected to the hip–can’t kill one without the other. Have you noticed any comments from our career politicians–no!!! Sacred Ground!!!

  19. cojef says:

    Fodder for the Internal Revenue Service relating to questionable personal expenses paid by the union and not declared as additional income. Similar to Mr Ho who had his spouse and college kids expenses paid by the company. Well may be 3 years vacation in the federal pen is not too bad, if you compare it with Rudolph Madoff’s 150 years sentence for his “ponzi” scheme.

  20. Happy_024 says:

    Another Feds investigation into our local operations (IBEW 1260, HPD, Sandwich Isle) ? All these greedy criminals stealing from own people. Ahakuelo, Kealoha, Hee, Rodriguez, Rutledge, you all bring shame to Hawaii.

  21. warriorsanddolphins says:

    I like the way Ahakuelo keeps on denying his guilt. The funny thing is this kind of corruption happens at alot of other places too.

  22. MamaKin says:

    Go directly to jail, do not pass go, do not collect $200, go directly to JAIL!

  23. XlllX says:

    unions are broken and in this day and age not necessary..do your work keep your head down get paid..if you don’t like it quit and find another job

    • dogchow says:

      1. Unions are broken – Nope, it’s always been the way it is, weigh the bad with the good.
      2. In this day and age not necessary – Disagree, private sector bottom line is ALWAYS their pockets first. Company benefits in my non-union region are a reflection of benefits gained in other union regions. We did not see any gains until other regions organized. Yes, it’s a business but it’s foolish to think your company places you before their pockets.
      3. Do your work keep your head down get paid..if you don’t like it quit and find another job – TOTALLY AGREE. Workers are made aware of positions being union before accepting their positions, you knew this going in. Never consider a position or company as life long. Take advantage of company education opportunities. You will be bitter if you assume your company owes you for the time you spent there. If you feel it’s that bad don’t be afraid to leave. But get what you can out of them, not the other way around.
      4. I don’t know much about Ahakuelo other than what’s in the news. Maybe he did raise the bar for members? I’d like to see objective numbers. Would the members be worse off if he was not in his position? Much of the comments here are idealistic and the world just doesn’t work like that. We’d like it to be but it doesn’t. Back to the first line, what was gained during his leadership vs the stuff that’s being reported now, which we all know applies to every business environment.
      5. Idk if Randy Perreiara is still the HGEA lead but if he is, Ahakuelo needs to take a page out of his book and keep his mouth shut. RP’s comments in the media worked against him and his members. No talk already, you only hurting yourself and your members every time you talk to the media.

  24. saywhatyouthink says:

    “but what else we going do? (Without the union) we got nothing.” – Funny, I think without you and the other electrical workers, the union “got nothing”. It’s clear to everyone but Ahakuelo what’s happened here, he’s no different than Gary Rodriquez, in fact in sounds like he’s guilty of far worse offenses. It may not be illegal to employ your immediate family in six figure do-nothing jobs but that doesn’t make it right. The Las Vegas son is the clincher, he must be really highly skilled to be able to train and organize workers from 3000 miles away.

  25. HOSSANA says:

    I’m just sick and disgusted with the political corruption that takes place here in our beautiful State….from the Mayor on the Big Isle to our Honolulu Chief of Police and his incompetent wife to union officials…..the spin they put and the spin their defense attorneys put in justifying their innocence is just downright disgusting……

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