John Bowers

Federal Judge Throws Out RICO Suit; Questions Remain

The leaders of the International Longshoremen’s Association might not have uncorked any champagne at their Lower Manhattan headquarters, but it’s unlikely they had seen happier times.  On November 1, U.S. District Judge I. Leo Glasser announced his dismissal of the Justice Department’s civil racketeering suit against them.  In a 109-page decision, Judge Glasser stated that the government’s complaint failed to “sufficiently specify” its rationale for applying the Racketeer Influenced and Corrupt Organizations (RICO) Act to the alleged crimes.  He wrote:  “This court will not abet the government’s effort to stretch the concept of a racketeering enterprise beyond all recognition in order to bring various otherwise disinterested parties within its scope, even for the worthwhile purpose of combating the influence of organized crime on the waterfront.” 

International Union Takes Over Newark Local on Counsel Advice

The International Longshoremen’s Association is in a bind.  For the last two years the New York City-based union has been the target of a federal civil racketeering suit alleging a longstanding pattern of corruption that reached into the top suites.  ILA officials, led by outgoing longtime President John Bowers, the indictment noted, knowingly ceded control of locals at New York, New Jersey and Miami ports to the Genovese and Gambino crime families.  The union vigorously has denied all charges, and indeed recently requested that U.S. District Judge Ira Glasser dismiss the suit, which seeks the ouster of Bowers and other ILA officers and the placement of several union benefit funds under federal control.  There’s an outside chance the union may get what it wants.  Yet the reality of mobbed-up locals has been undeniable.  Now the ILA, on the advice of its ethics counsel, has taken the dramatic step of taking over one of those unions.

Bowers Steps Down as President, No. 2 Man Hughes Takes Over

For the last two years the International Longshoremen’s Association has been operating under a Justice Department civil racketeering indictment.  But whether the change in leadership at New York City headquarters this month suggests the feds will drop its suit remains to be seen.  As expected, John Bowers resigned on July 26 as president of the ILA at the union’s quadrennial convention in Hollywood, Fla., having held the job since 1987.  Bowers, 84, had been indicating for some time that he would not seek re-election.  His close ally, Richard Hughes, Jr., 74, the ILA executive vice president, takes over at the top spot, having run uncontested.  Hughes’s replacement is Harold Daggett, assistant general organizer and president of the nearly 2,000-member Local 1804-1 across the river in New Jersey, long under control of the Genovese crime family.  Daggett had been acquitted in November 2005 after an emotionally draining waterfront criminal trial that saw, among other things, the discovery of the dead body of missing witness Lawrence Ricci.  Hughes had gotten his job in 2005 as a replacement for Albert Cernadas, who retired after pleading guilty in the case.

International Bosses’ Pay Sky High; Assets, Membership Down

“Pay for performance” is an idea that has gained currency in many organizations in this country.  The International Longshoremen’s Association, which represents dockworkers and auxiliary employees along the Atlantic and Gulf coasts, and the Great Lakes, appears not to be one of them.  According to the union’s recent “LM-2” financial reporting form submitted to the U.S. Department of Labor, the ILA pays its top people way up in the six figures.  President John Bowers made $587,078 in 2006 in international and district salary and expenses.  Bowers’ son, John Jr., a union vice president, received $292,440.  Already among the highest levels of compensation in organized labor, such money is especially significant in the context of the Justice Department’s civil racketeering suit against Longshoremen leadership filed in July 2005.  The suit, which has yet to go to trial, seeks the removal of Bowers and several other union officials, and their replacement with a court-appointed trustee.

International President Insists He’s Not Ready to Resign

John Bowers may be 84, but even at that age, staring at a massive federal civil racketeering suit for the past 21 months, he’s determined to stick to his job as president of the International Longshoremen’s Association.  Bowers gave his assurances at an ILA executive council meeting on March 22 in response to rumors that he would be stepping down after 20 years at the helm.  If anything, the Justice Department’s RICO suit, filed in Brooklyn, N.Y. federal court in July 2005, has made him more determined than ever to remain.  He said that he would not have run for re-election for his current term back in 2003 had it not been for the threat of a suit.

Rift Between Top Officials Could Strengthen Feds’ Case

Bad blood always has run through the top echelons of the International Longshoremen’s Association.  But the latest power struggle could wind up sinking its entire leadership.  Last summer federal prosecutors filed a civil RICO suit in Brooklyn, N.Y.

RICO Suit Could Mean Long-Term Federal Control

On the surface, life at International Longshoremen’s Association (ILA) headquarters in Manhattan hasn’t changed all that much.  But the seeming normalcy doesn’t disguise the fact that the union’s longstanding alleged ties to two Mafia families are about to be exposed wide open.  On July 6, Justice Department lawyers filed a massive civil RICO lawsuit in U.S. District Court in Brooklyn.

Mob-Controlled Union Leadership Hit with RICO Suit

The bosses who’ve been running the International Longshoremen’s Association have led a charmed life – or at least a good imitation of one.  For several decades the union has had a devil’s pact with the Genovese and Gambino crime families:  We’ll install your guys in key positions; you make sure nobody else walks on our turf.  At the New York, New Jersey and Port of Miami waterfronts, in particular, it’s been hard to tell where organized labor and organized crime actually differ.  But it’s an arrangement whose end now may be near.

 

The Fat Cats on the Waterfront -- Excerpts from NY Daily News, Jan. 3, 2003, by Douglas Feiden

[Intl. Longshoremen's Assn. president] John Bowers…collects $390,825 a year on the international's payroll, and many members think that's his total compensation.  It's not.  The 79-year-old Bowers pulls down $160,296 more as head of the union's Atlantic Coast District. Grand tally: $551,121. His pay leaped 10% from $502,957 in 2001.

 

Not far behind are at least five officials who make more than $400,000, and a dozen who top $300,000, according to a Daily News review of U.S. Department of Labor filings for 2002, the most recently available year…

 

NJ Governor Agrees to Repay Union that Flew him to San Juan Convention

NJ Gov. James McGreevey gave in to critics and agreed on July 24 to reimburse the Intl. Longshoremen's Assn. (ILA) for flying him and his family to Puerto Rico.  During the planned 5-day visit, McGreevey was the keynote speaker at the ILA's national convention in San Juan.  The ILA has contributed more than $100,000 to Democrats in NJ since McGreevey began his run for governor.

McGreevey's own spokesman admitted that ILA president John Bowers' announcement that the ILA might soon be hit with fed. racketeering charges “was a bit of a bombshell for the governor.”  After his Tuesday speech, McGreevey cut short the trip, announcing that he would return to NJ for the funeral of a close friend's daughter.  Two days later, he promised to find out how much the ILA had paid for his airfare and hotel stay and reimburse the union 

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