In a letter to Labor Ready CEO Joe Sambataro and Labor Ready's outside directors and major investors, Sullivan cited financial issues that Labor Ready management and Arthur Andersen have failed to resolve, such as how Labor Ready's numerous related enterprises, including its controversial Cayman Islands subsidiary, relate to the parent company, and the complete truth about former CEO Glenn Welstad's admitted "unauthorized loan" of $3.5 million.

Andersen drew harsh criticism from Sullivan last month when the auditing firm did not respond to a series of questions from BCTD regarding Labor Ready's accounting practices. Among other issues, Sullivan asked Andersen to explain the purpose of the many subsidiaries and limited partnerships that have no clear or apparent function because of similarities to Enron.

"I refuse to wait until Labor Ready goes the way of Sunbeam, Waste Management and Enron," said Sullivan in a letter to Andersen. "The Enron scandal shows that prevention and early intervention are better than ignoring danger signs so evident in Labor Ready's business practices."

Sullivan also challenged Andersen's independence -- Labor Ready's CFO Stephen Cooper was an Andersen Senior Manager, and 64 percent of its $507,000 in billings to Labor Ready was for non-auditing services.

Sullivan asserted that a new auditor is needed to examine Labor Ready's claim that it is "virtually debt-free," despite declines in sales, profits and the number of its offices. Labor Ready's SEC reports indicate that nearly all of its tangible assets are used as collateral for the line of credit underwriting its future workers' comp obligations.

"The only thing that shareholders have received in answer to these questions is off-hand rejections and denials," said Sullivan. "Clearly, we cannot count on Arthur Andersen to address these questions, since they will be fully occupied addressing questions that have been raised about their own business practices."

The BCTD coordinates activity and provides resources to affiliated trades unions in the construction industry throughout the U.S. and Canada.

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