National Legal and Policy Center -- Organized Labor Accountability Project
 
UNION CORRUPTION UPDATE
 
June 15, 1998 -- Vol. 1, Issue 1

 
For Influential Leaders & Important Decision Makers:
Information on America's most corrupt & aggressive unions

TEXTILE EMPLOYEES (UNITE)
Clothing Union Corruption
According to Rep. Hoekstra's subcommittee, the bosses of the Union of Needletrades, Industrial & Textile Employees are profiting from their members job losses due to a special industry proviso in federal labor law.
The May 27 report states UNITE receives "liquated damages" from companies for contract breaches which include relocating production overseas. UNITE treats the payments as its own since no explicit obligation exists to distribute the money to its members.

"So as contracts leave the country and UNITE's members lose their jobs, UNITE itself continues to receive 'a piece of the action'... Over the past few decades garment unions have lost more than half of their membership to overseas competition. Yet during that same time, UNITE and its predecessors became the richest of all unions, as measured on an assets per member basis. UNITE not only on owns the Amalgamated Bank of New York, but also owns much prime real estate in New York City. Despite its wealth, UNITE's fully vested pensions, we are told, are worth an average of only $85 per month," said the report.

Hoekstra's committee is also monitoring a RICO suit filed against UNITE in N.Y. and a separate suit by CA employees. Also, a FBI probe recently had 12 members and associates of the Luchese, Gambino & Genovese crime families indicted for an extortion racket in N.Y.'s garment district. Though no UNITE officials have been indicted, the FBI has said the investigation will probably go "into the union."
 


In addition to the unions and organizations covered in this Union Corruption Update , readers can look forward to news and information on the United Food & Commercial Workers, International Brotherhood of Electrical Workers, National Education Association/American Federation of Teachers, the United Auto Workers and other corrupt and abusive unions in future editions.

If you have ideas or suggestions for future editions of Union Corruption Update , please email NLPC at nlpc@nlpc.org. Thank you.

Union Corruption Update is part of NLPC's Organized Labor Accountability Project which is investigating and exposing corruption in the Teamsters, LIUNA, AFL-CIO and many other labor organizations. NLPC is a nonpartisan, nonprofit foundation promoting ethics and accountability in government through research, education and legal action.

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