National Legal and Policy Center -- Organized Labor Accountability Project
 
UNION CORRUPTION UPDATE
 
January 17, 2000 -- Vol. 3, Issue 2


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


TEAMSTERS (IBT)
Citizen Action is Back, Sort of
The once powerful, far-left Citizen Action virtually committed suicide in 1996 when it became a key player in the Teamsters' money-laundering scandal. According to court records, Citizen Action took two "donations" of $475,000 and $150,000 and routed $110,000 and $100,000, respectively, back to Carey's reelection campaign.

But now, according to recent report in the far-left publication In These Times, this former federation of statewide leftist groups is attempting to resuscitate its network under the name U.S.  Action.  At a September 1998 meeting, the new group's operatives pitched about 100 leftist leaders.  They claimed the new group would "grow beyond the limits of the old Citizen Action and learn from its mistakes." Today, 39 statewide leftist groups have joined - only 16 of which came from Citizen Action.

U.S.  Action held its founding convention near Chicago in November 1999. Reps. Jan Schakowsky (D-Ill.) and Tammy Baldwin (D-Wis.) both spoke.  Both were Citizen Action members who were allegedly "nurtured" into candidates by Citizen Action.  Attendees at the founding also included two militant unions: Service Employees Int'l Union and Am. Fed'n of State, County & Mun. Employees (AFSCME), as well as other prominent leftist organizations such as the U.S.  Student Association, Midwest Academy and Progressive Action Network.  U.S.  Action's statewide groups claim 700,000 members, more than 100 full-time staff and combined annual budgets of $15 million to $20 million.

The convention provided an opportunity for many to vent and brood over Citizen Action's debacle.  "Citizen Action was not a participatory democracy at all," complained David Desiderato, associate director of Northeast Action.  "It was controlled.  You couldn't ask questions." Some criticized Citizen Action for abusing its power, especially in terms of finances.  Citizen Action originally raised money from door-to-door canvassing as well as contributions from unions and trial lawyers.  But canvassing became less lucrative, and it was "put at the mercy" of its contributors.  Reportedly, the Teamsters scandal only exacerbated preexisting internal tensions and led to massive fallout among contributors.  "It shows what happens when you don't have internal democracy," complained John Cameron of Citizen Action of Illinois.
 Many of the old guard still strongly defend Citizen Action.  But even U.S. Action Executive Director Jeff Blum insisted that the new group would be more democratic and accountable.  Blum was Citizen Action's transportation lobbyist; he is also currently head of Maryland Citizen Action, and before that he headed Pennsylvania Citizen Action, which he founded in 1979.  Blum said there would be no more of the old budget sleight-of-hand.  "I won't do it," Blum said.  "We're trying to make this an organization characterized by learning lessons."

William McNary of Citizen Action of Illinois said U.S.  Action must avoid Citizen Action's mistake of becoming a conduit for unions and trial lawyers' money and messages.  He said of Citizen Action: "Instead of having a partnership with the people who gave us money, we were looked at as employees."

SEIU executive board member and former head of Pennsylvania Citizen Action Anna Burger predicted, "This is an organization that's going to make a difference."  [In These Times 12/26/99; Wash. Times 1/13/00]

On Nov.  6, 1997, the National Legal and Policy Center a complaint with the IRS citing Citizen Action's possible tax law violations in the Teamsters money-laundering schemes as reasons for the IRS to investigate and possibly revoke Citizen Action's exempt status.


Union Corruption Update is made possible by the generous contributions from readers like you. NLPC, P.O. Box 6273, McLean, VA 22106-6273. Thank you.

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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