National Legal and Policy Center
Organized Labor Accountability Project
1998 Study of Top Union PACs


A N A L Y S I S

NOTE: All Charts have a corresponding Table with the supporting data. Each Chart's number matches its corresponding Table's number.

Chart 1A -- Total Union Political Disbursements
Chart 1A illustrates the sum of the Political Disbursements of Top Union PACs. Surprisingly, the 1997-98 estimate calls for a $1.2 million pull back in Political Disbursements. However, this may prove to be incorrect given the dramatic rise in Top Union PACs' Cash on Hand (See Chart 2B). It appears that Top Union PACs have been less inclined to donate money in the off-year and prefer to save it for the election year. If true, this may explain the downward estimate in Chart 1A.

Chart 1B -- Union Political Disbursements Per Cycle
Chart 1B is important to this study because it illustrates the figure that determined which Top Union PACs were included and how they were ordered (See the boldface figures in Table 1B). Notice that the 1995-96 bar declines as you move from left to right on Chart 1B.

The key here is the overwhelming size of the Teamsters' PAC. It is more than double most other Top Union PACs. Its estimated $9.4 million in Political Disbursements in the 1997-98 election cycle is $2 million more than the Teamsters 1998 rerun election is projected to cost U.S. Taxpayers. The Teamsters are by far the richest Top Union PAC in terms of Political Disbursements.

Also, AFSCME's surprising drop in Political Disbursement should be viewed alongside its rocketing Cash on Hand (See Chart 2B). Taken together, they indicate that AFSCME will remain a powerful Top Union PAC.

Chart 1C -- Union Political Disbursements Per Year
Chart 1C demonstrates the dramatic (as well as expected) difference between off-year and election year activity among Top Union PACs.

Chart 2A -- Total Union Cash on Hand
Chart 2A illustrates the dramatic 32% rise in Top Union PAC Cash on Hand between the last day of 1995 and 1997. Top Unions PACs have more Cash on Hand at the onset of this election year than ever before. At the start of 1998, Top Union PACs have nearly $5 million more than they did at the start of 1996.

Chart 2B -- Union Cash on Hand
The first thing that jumps off the page is the wealth of the AFSCME and UAW PACs. While UAW's PAC has traditionally held high cash reserves, AFSCME's Cash on Hand has rocketed up -- more than doubling from 1995 to 1997. AFSCME appears to be keeping its capital on the sidelines biding its time for a better opportunity to invest in politics. Also note, most Top Union PACs appear to be raising their cash reserves. In addition to AFSCME and UAW, NEA, AFT and CWA have increased their Cash on Hand sizably.

The most important point, however, is the 56% drop in the Teamsters' PAC Cash on Hand. This is a strong indicator that the Teamsters money-laundering scandal has and will continue to hurt Teamsters' political activity . The Teamsters' PAC's Cash on Hand at the start of 1998 is 56% lower than is was at the start of 1996 and 44% lower than 1994. It appears that the drop is due to the Teamsters' PACs' inability to raise money in 1997 (See Chart 3B and 3C). Further, despite the drop in Political Receipts, the Teamsters PAC has continue on a torrid pace with Political Disbursements in the 1997 off-year -- almost the same level as 1995 and 1993 (See Chart 1C). At the end of 1998 if the Teamsters fundraising woes continue, the Teamsters' PAC will either be out of money or see a dramatic drop in their Political Disbursements, and thus, their political activity in general.

Chart 3A -- Total Union Political Receipts
Chart 3A confirms the trend that was evidenced in Chart 2A -- Top Union PACs as a whole have had little trouble raising more money than ever before.

Chart 3B -- Union Political Receipts Per Cycle
Again, Chart 3B confirms the trend that most unions are have no trouble in building political "war chests" -- especially IBEW's PAC which is projected to have a 61% jump in Political Receipts this cycle.

However, not every Top Union PAC is having an easy time. Chart 3B echoes Chart 2B in showing the trouble facing the Teamsters' PAC. It is projected that the Teamsters PAC will raise 17% less during the 1997-98 election cycle than it did in the 1995-96 cycle . Only one other Top Union PAC, LIUNA (which has its own share of scandal and corruption), is estimated to have a drop in Political Receipts from 1995-96 to 1997-98. Remember that Top Union PACs deal only in VOLUNTARY contributions. Virtually all of Top Union PACs' contributions come from their union members and union bosses. In 1997, it is clear that many Teamsters chose to not give, or at least give less, to the Teamsters' PAC. This is another strong indication that the lack of support and fallout from the Teamster money-laundering scandal has hurt the Teamsters' political resources going into the 1998 elections.

Chart 3C -- Union Political Receipts Per Year
Chart 3C furthers the points made in Chart 3B. The Teamsters' PAC took in 16% less in 1997 than it did in 1995 and 14% less than 1993. Only one other Top Union PAC had a drop from 1995 to 1997 in Political Receipts -- LIUNA fell 23%. Even more serious for the Teamsters' PAC, no other Top Union PAC raised less money in 1997 than it did in 1993. Clearly, the Teamsters are hurting for a unique reason -- the Teamsters money-laundering scandal .

Chart 4A -- Total Direct Federal Candidate Contributions
Direct Federal Candidate Contributions is included in the study because it tends to be the largest component of Political Disbursements. It contains contributions made directly to candidates for the U.S. House and U.S. Senate, as well as other federal political action committees. Chart 4A shows that direct federal candidate contributions are projected to increase only slightly during the 1997-98 election cycle. This may be attributed to the increased use of other forms of Political Disbursements such independent expenditures as well as the trend described above in Chart 2A and 2B -- many Top Union PACs' appear to be keeping their capital on the sidelines waiting for a better opportunity to invest in politics.

Chart 4B -- Direct Federal Candidate Contributions Per Cycle
Chart 4B illustrates how each Top Union PAC handles Direct Federal Candidate Contributions.

Chart 4C -- Direct Federal Candidate Contributions Per Year
It is interesting to see in Chart 4C that despite the Teamsters' PAC hard times raising money in 1997 (See Chart 3C), they had a record year in Direct Federal Candidate Contributions -- a 5% increase from 1995 to 1997 which is on top of an 12% rise from 1993 to 1995.

Chart 4C also demonstrates the dramatic (as well as expected) difference between off-year and election year activity among Top Union PACs.


1998 Study of Top Union PACs