National Legal and Policy Center -- Organized Labor Accountability Project
 
UNION CORRUPTION UPDATE
 
January 31, 2000 -- Vol. 3, Issue 3


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


TEAMSTERS (IBT)
Overnite Files RICO Suit Against IBT
Overnite Transportation Co. is seeking at least $ 5.2 million from the Int’l Bhd. of Teamsters for damages and other costs associated with the union's three-month strike against the Richmond, Va.,-based trucking company.  In a suit filed Jan. 24 in U.S. District court in Tennessee, the company alleges that the IBT, its officers, and officials have engaged in a pattern of racketeering activities, including 57 alleged incidents of attempted murder and 131 alleged acts of extortion as well as numerous violations of Tennessee law.   Named in the 225-page complaint are IBT President James P. Hoffa, members of the union's general executive board, and other IBT officials and staff.

The suit alleges a scheme to "put Overnite out of business" if the company does not recognize the union as its employees' bargaining representative and accept the terms of a contract agreement proposed by IBT.  It seeks damages in excess of $5.2 million for security expenses, damage to Overnite property, damage to the property of company employees for which Overnite has paid compensation, and the cost of replacing workers who missed work because of lawless acts by the union. The company also is seeking an unspecified amount of relief for lost profits and other damage associated with IBT's ongoing strike.

The suit seeks payment of triple damages allowed under the Racketeer Influenced and Corrupt Organizations Act, which would bring the amount of the award to more than $15 million.  Overnite alleges that the named defendants are associated with an "enterprise" as defined by the RICO statute for the purpose of putting Overnite out of business.  Apart from the union's lawful strike activity, the IBT and its officials have engaged in "a pattern of racketeering activity," the suit claims, including acts of attempted murder and extortion. In its filing, the company details specific incidents that have occurred since the strike began in late Oct.

According to Overnite, because of violence associated with the strike, "judges in 14 states have issued 21 restraining orders in an attempt to curb IBT lawlessness. Police reports have detailed 26 separate shootings and two dozen instance of projectiles thrown or dropped on moving vehicles," the company said in a statement announcing the suit. Among the incidents cited in the lawsuit is the Dec. 1 shooting of Overnite driver William Wonder who was critically injured when he was shot in the stomach as he was driving along an interstate highway north of Memphis. [BNA 1/28/00]


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.


Email NLPC

Union Corruption Update Article Index (by Union)

Union Corruption Update Article Index (by State)

Organized Labor Accountability Project

NLPC Home Page