National Legal and Policy Center -- Organized Labor Accountability Project
 
UNION CORRUPTION UPDATE
 
June 7, 1999 -- Vol. 2, Issue 12


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


LABORERS (LIUNA)
Chicago's Local 2 In "Emergency" Trusteeship
Laborers Int'l Union of No. Am. Local 2 in Chicago was placed under an "emergency" trusteeship May 24 by the union's "internal reform effort" and its ethically challenged "in-house prosecutor" Robert D. Luskin. The action means that LIUNA will replace the local's elected leaders with hand-picked successors. A cited reason for the impatient action was the May 12 expulsion of Local 2 boss John Matassa for alleged mob ties. Local 2 and Matassa became Luskin latest cause célèbre on Apr. 23 when he began the slower process of filing for a nonemergency trusteeship. Curiously, despite the rush to justice, Matassa wasn't cited in the Dep't of Justice's 1994 draft racketeering complaint against LIUNA even though Matassa ran Local 2 since the mid-1980s.

Luskin's track record in Chicago is mixed at best. When LIUNA's "internal reform effort" began in 1995, one of the first orders of business was to oust LIUNA int'l vice-president John Serpico -- a rival of general president Arthur A. Coia. Serpico was accused of mob ties and more. Luskin did oust Serpico from LIUNA but did little more to advance justice. As the Chicago Tribune reported Jun. 3, Serpico now runs the Illinois Port Authority Board which controls all Great Lakes shipping into Chicago. As the Tribune aptly said: "Go figure." It's safe to say that Serpico would have suffered a worse fate had DOJ cleaned up LIUNA rather than letting LIUNA clean up itself.

The good news about the Local 2 trusteeship is that David P. Schippers is the temporary trustee. Schippers was Rep. Henry Hyde's (R-Ill.) courageous lead counsel in the recent impeachment proceedings against Bill Clinton. Schippers sense of duty and honor is second to none. How he obtained the LIUNA appointment is not known, but good things may come of it. Last summer, before impeachment exploded on the scene, the Chicago Sun-Times reported that Hyde had detailed Schippers lead an investigation of the U.S. Atty.'s Office in Chicago. Schippers reportedly was going to look into several problems including DOJ's supervision over LIUNA which is based in the Chicago office. Hyde said, "We intend to exercise ongoing and vigorous oversight... If some program is not working, we want to take the appropriate action."  Those who thirst for justice in LIUNA can only hope that there is some connection  between Schippers' appointment and Congressional oversight. [Chi. Trib. 6/3 & 5/25/99, BNA 5/26/99 & 5/18/95, Sun-Times 7/2/98]


In addition to the unions and organizations covered in this Union Corruption Update, readers can look forward to news and information on other corrupt and abusive unions in future editions.

All back issues of the Union Corruption Update can be viewed at NLPC's website (www.nlpc.org).  Also available is a union-by-union and state-by-state index of all Union Corruption Update articles.

If you have story 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 and extremism in the Teamsters, LIUNA, AFL-CIO and many other union organizations. NLPC is a nonpartisan, nonprofit foundation promoting ethics and accountability in government through research, education and legal action.


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