WASHINGTON, DC -- Today National Legal and Policy Center Chairman Ken Boehm issued the following statement regarding union corruption within the International Association of Bridge, Structural, Ornamental & Reinforcing Iron Workers and the Michigan State AFL-CIO's August 24 endorsement U.S. Rep. David E. Bonior (D-Mich.) for Governor of the State of Michigan:

 "On August 24, 2001, U.S. Rep. David E. Bonior's campaign for the 2002 Democratic gubernatorial nomination will officially be tainted by union corruption.

 The occasion? The Michigan State AFL-CIO's endorsement of Bonior. The endorsement itself is not tainted, although any organization that turns involuntary dues, assessments, and fees into political contributions is suspect. Rather, the taint comes from where the endorsement is being made: Iron Workers Local 25 in Novi, Michigan.

 While unions such as the Hotel Employees & Restaurant Employees, Laborers, and Teamsters have long been considered among most corrupt unions in America, the Iron Workers are currently making a run at such a status. Recently, four international Iron Worker officials have admitted to union embezzlement and related crimes. International Iron Workers President Jake West also resigned under a cloud in February after a thirty-year career with the international union. Moreover, the federal probe is reportedly still open, and the four officials are awaiting sentencing and are cooperating with federal prosecutors, all of which suggests that there are more indictments to come.

 These embezzlement cases are quite disgraceful, detailing how tens of thousands of dollars of hardworking union members' dues were wasted on the lavish lifestyles of union officials.

• Iron Worker's former General Organizer Darrel E. Shelton: pled guilty in 2000 to embezzling up to $120,000 from the union. He admitted to routinely using the union's money to cover his and others' personal expenses. Shelton's illegal expenses included $3,995 for a golf outing in Palm Springs, California, attended by Jake West. It reportedly included $1,000 for a dinner attended by West, his friends, and "several women." Shelton also admitted spending funds for numerous   other dinners for West and West's family and friends.

Shelton allegedly had a deal with West to write "per J West" on union credit card receipts so no one would raises questions. In exchange, Shelton allegedly could charge his own personal expenses. These reportedly included an out-of-state family reunion, his mother's birthday dinner, and lodging at Disneyland. He was also accused of collecting reimbursement for thousands of dollars in phony charges related to phone and auto expenses.

• Iron Worker's former Organizing Director, Fred G. Summers: pled guilty in 2000 to embezzling   more than $50,000 of union funds. He allegedly used the union's credit card to treat family and friends to meals and entertainment on more than 150 occasions. These included included travel for his wedding, meals on his Miami honeymoon, and birthday parties for his daughter. Further,   Summers, a Virginia resident, allegedly used union funds for trips to the Indianapolis 500, a Washington Redskins game in Chicago, and a weekend trip to Las Vegas.

• Iron Workers' former political action committee director, Michael J. Brennan: admitted in 1999 to spending about $7,000 in union funds on personal expenses at an exclusive golf club. For more than two years, he entertained other union officials, family, and friends at the club.

• Iron Worker's former General Secretary, James E. Cole: pled guilty to union embezzlement in June making him the highest ranking official to be caught by the probe to date. A federal grand jury accused Cole of embezzling more than $10,000. Among the allegations: he used union credit cards and other funds to pay for personal meals, trips, and entertainment for himself as well as his family and friends. For example, he allegedly used union funds for a Scotland vacation, a high school reunion trip, and anniversary flowers for his wife. Also, Cole allegedly arranged for the union to pay for country club memberships that he and his wife often used for personal use.

Cole allegedly submitted fraudulent reimbursement claims and falsified reports to the Labor Department to conceal the expenditures for himself, Jake West, and other union officials. Specifically, he underreported the amount they spent by concealing disbursements in general categories such as "office and administrative" or "educational and publicity" expenses. Also, Cole allegedly participated with the union's former General Counsel Victor Van Bourg, in obstructing the grand jury's investigation by withholding documents related to the Labor Department reports for more than two years.

While Bonior is understandably excited about boosting his sagging campaign with the AFL-CIO's endorsement, he should pause, think through this situation, and reject any endorsement originating from an Iron Workers' local. He should stand up to the AFL-CIO and tell them to endorse him at more appropriate place. Sometimes doing the right thing is hard, but Michiganders should expect nothing less from a potential chief executive."

The National Legal and Policy Center is a nonpartisan, nonprofit foundation monitoring union corruption and promoting ethics and accountability in government through research, education and legal action. NLPC's Organized Labor Accountability Project investigates and exposes corruption and abuses in the AFL-CIO, Teamsters, Laborers, and other labor organizations.  NLPC publishes a fortnightly newsletter, Union Corruption Update, which details union corruption in many of the unions; past articles may found by NLPC's union index and state index. For more about NLPC visit <http://www.nlpc.org>.

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