AFL-CIO
Federal Grand Jury Now Probing Trumka
There is a new development, finally, in the federal investigation of
Richard L. Trumka, AFL-CIO secretary-treasurer
and top union ally of Al Gore, for his alleged participation in two money-laundering
conspiracies that involving $200,000 and aided the 1996
reelection campaign of ex-Teamsters boss Ron Carey. According
to the Washington Times, a federal grand jury in Manhattan has been empanelled
and it has subpoenaed AFL-CIO records concerning the transactions in question.
While the Clinton-Gore-Reno Dep't of Justice have refused to comment on the Trumka probe, DOJ recently blocked the Int'l Bhd. of Teamsters from going to court to seek $9 million in damages in a civil racketeering suit, saying it would undermine a criminal investigation.
Despite the federal investigation of Trumka, Gore refuses to end his relationship with the troubled union boss and allowed Trumka to be a featured speaker at the Democratic Convention. Trumka was instrumental in securing the AFL-CIO early endorsement of Gore last Oct. Trumka has used the Fifth Amendment to avoid federal investigators' questions about the conspiracy. [Wash. Times 9/26/00] Note that the Nat'l Legal & Pol'y Ctr. recently filed a complaint with the Pa. Bar to have Trumka, an attorney, disbarred for this conduct; read NLPC's complaint at <www.nlpc.org>.
GOVERNMENT EMPLOYEES (AFSCME)
New Jersey Family Guilty of $200,000 Embezzlement
Victor Garcia, Sr., the ex-president of the Nat'l Union of Hosp. &
Health Care Employees District 1199J and his son, Victor Garcia Jr., the
district's ex-pension fund assistant executive director, were found guilty
Sept. 28 of conspiring to embezzle about $200,000 from the pension fund.
The N.J. based Dist. 1199J is part of the Am. Fed'n of State, County &
Mun. Employees. The jury in U.S. Dist. Court in Newark deliberated about
12 hours over three days before returning its verdict.
Senior was also found guilty of conspiring to receive about $200,000 in cash kickbacks from a general contractor who, from 1994-97, made about $6 million in renovations to a building. The contractor, among other things, paid for the repair of Senior's car in order to retain the union contract. [USAO D.N.J., Media Release 9/28/00]
Justice Delay: Diop's Embezzlement Trial Postponed
The trial of three AFSCME Dist. Council 37 bosses charged with stealing
more than $1 million in union funds was postponed Oct. 3 pending a mental
health examination of one of the defendants. After defense attorneys reported
that Albert Diop, ex-president of Local
1549 and AFSCME international vice-president, was not competent to stand
trial, Manhattan trial judge William Leibovitz ordered that Diop undergo
mental examinations by two court-appointed doctors. The trial for Diop
and two of his top aides, Mary Wilson and Lionel Scott, will resume Nov.
13 pending results of the psychological evaluations.
Leibovitz said Diop, who is currently out on bail, will be remanded to Bellevue Hospital Center if he does not show up for the evaluations, regardless of the reason. He also warned attorneys that the case is in no way being put off indefinitely. Defense attorney Ramon Pagan said Diop is being treated for "depression and other factors" at Lenox Hill Hospital and cannot be released from observation for at least 25 days.
Diop, Wilson and Scott are three of about 30 bosses and associates from DC37 facing corruption charges. Diop and Martin Lubin, former associate director of DC37 were convicted in July of rigging a contract ratification vote to ensure it would pass. Sentencing for the two was scheduled for Oct. 5. Diop faces up to 4 years in prison for the previous conviction, and Lubin faces up to 7 years. [Newsday 10/4/00]
TEACHERS (AFT)
Buffalo Boss Jailed for Strike Action
N.Y. trial judge Kevin M. Dillon sentenced Philip Rumore, president
of the Buffalo Teachers Fed'n, to 15 days in jail for showing "complete
and total disrespect" for the law by leading a strike of city teachers.
"What it came down to was: Either you were in charge or the law was in charge," Dillon said while sentencing the union boss. "In words and deeds, you made it clear you were not going to adhere to court orders you did not agree with. That is difficult for me to accept and impossible for me to condone."
Dillon did not impose jail terms on other BTF bosses, Barbara Bielecki and Edith LeWin, but fined them each $1,000. Rumore began his jail time Sept. 29; he was also hit with a $1,000 fine. Rumore faced the possibility of 30 days in jail for violating Dillon's no-strike order and state labor law by leading a teachers strike on Sept. 14. The three bosses and the BTF, as a corporation, pled guilty Sept. 22 to contempt of court charges. Dillon also is empowered to impose a fine of any amount he deems reasonable against the union itself when he sentences it on Nov. 13.
Dillon said Rumore's actions "made a mockery of court authority" and "inflicted harm on the city, its citizens and its children." Dillon said Rumore's actions were not designed to change an unjust law and should not be considered civil disobedience. [Buff. News 9/29/00]
LABOR LAW REFORM / MACHINISTS (IAM)
Members Win Continue Notice of Landrum-Griffin Rights
U.S. Dist. Judge Peter J. Messitte in Maryland ordered the Int'l Ass'n
of Machinists Sept. 19 to continuously post summaries of the Labor-Management
Reporting & Disclosure Act, popularly called the Landrum-Griffin
Act, following a ground-breaking U.S. Fourth Circuit Court of Appeals
decision, Thomas v. Grand Lodge of Int'l Ass'n of Machinists, in Jan. that
reversed the district court and held that a union's obligation to inform
members of their rights under the law is an ongoing one.
Messitte's order stipulates that IAM must provide the summary of Landrum-Griffin to all new union members, publish the summary in three issues of the IAM Journal, and post the summary continuously on its Internet website. Landrum-Griffin, among other things, establishes a "Bill of Rights" for union members covering elections of officers, requires minimal union financial disclosures and criminalizes union embezzlement.
Three members of IAM Lodge 834 in Wichita filed suit in 1997 asking that the int'l union be compelled to provide all members with continuous and effective notification of their Landrum-Griffin rights, as required by Section 105 of the statute. Messitte initially held that IAM had met its Section 105 obligations by its 1959 distribution of the statute in a union publication and its rare "updates" to members.
The Fourth Circuit overruled Messitte stating that Landrum-Griffin's "protections are meaningless...if members do not know of their existence." The appellate court scoffed at the notion that a single notification in 1959 was adequate under Section 105, pointing out that the character and composition of a union's membership are continuously changing. The Fourth Circuit remanded the case back to the district court for a determination of how often and in what context the IAM should be required to notify its members of their Landrum-Griffin rights.
IAM's new Landrum-Griffin summary states that members have: equal rights to participate in union activities; freedom of speech and assembly; a voice in setting rates of dues, fees, and assessments; protection of the right to sue; and safeguards against improper discipline. It also covers access to copies of collective bargaining agreements, elections of officers, removal of officers, imposition of trusteeships, and prohibitions against certain discipline and violence. It also sets forth the responsibilities of union officers and explains the Landrum-Griffin's requirements with respect to filing annual financial forms. [BNA 9/25/00]
STEELWORKERS (USWA)
Illinois Firm Files Racketeering Suit Against Steelworkers
Tire manufacturer, Titan Int'l, Inc., filed racketeering charges in
U.S. Dist. Court in Springfield, Ill., Sept. 29 against the United Steelworkers
of Am. Locals 164 and 303L and over 100 named individuals. The suit
is for damages of $240 million.
"It is time for companies to stand up to labor unions and demand that the laws be upheld," stated Maurice Taylor Jr., Titan president and CEO. "Companies need to defend the rights of their employees. The Titan lawsuit will bring to light the union's unbelievable disregard for laws. The union is accustomed to using its propaganda machine to influence politicians and public opinion, but it is very difficult to bully a Federal Court with the same tactics. Titan will be asking other companies to step forward with information regarding similar acts committed by USWA. Titan also plans to organize a group of companies to focus on changing the labor laws of this country to better protect workers' rights."
For over two years, Titan reports that it has been hiring and training a new 1,100 person workforce due to strikes at tire facilities in Des Moines, Iowa, and Natchez, Miss. The employees have worked to strengthen the company in the face of the negative propaganda of the USWA.
USWA allegedly has threatened workers who wished to return to work with injury to themselves, their spouses and children. The pattern of these threats and actions suggest that the USWA bosses are involved. [Titan Int'l, Media Release 9/29/00]
QUOTABLE QUOTE
"A lot of people are sick and tired of seeing people go out and get
their pensions after they commit a crime."
- East Providence, R.I., Councilmen Rolland R. Grant and retired East Providence police officer discussing his proposed ordinance that would take away pension benefits of police officers and firefighters who are convicted of crimes related to their employment. Ex-East Providence police sergeant, Alan A. Gouveia, currently faces criminal charges for allegedly embezzling $26,189 from the local Fraternal Order of Police while he served as FOP's treasurer. Gouveia is now "retired" and collecting a pension from the city. [Providence J.-Bull. 9/22/00]
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ADDITIONAL BRIEFS NOT INCLUDED ON THE FAX EDITION OF THIS UNION CORRUPTION UPDATE:
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GOVERNMENT EMPLOYEES
Florida Firm Helps in Probe of Boss
U.S. Dist. Judge William Dimitrouleas fined a Port Everglades, Fla.-based
marine firm $60,000 on Sept. 22 for making illegal payments to union boss
Walter "Buster" Browne in 1995. The fine, recommended
by prosecutors as part of a plea agreement in June, was equal to the amount
the company, Hvide Marine Corp, admitted to paying Brown. Dimitrouleas
handed down the sentence after investigators completed a background check
of the firm's records.
Hvide executives also agreed to cooperate with federal investigators who are targeting Browne, the politically connected president of the Nat'l Fed'n of Public & Private Employees. Browne was a paid consultant for Hvide on government issues from 1993-98. Prosecutors tried and failed to convict him for tax-evasion and mail-fraud charges in the 1990s, but he did plead guilty in 1996 to charges stemming from a rigged union election. On previous occasions Browne has said publicly that he expects a federal indictment. [Sun-Sent. (Ft. Lauderdale) 9/24/00]
AIR LINE PILOTS (APA)
Court: Union, Bosses Must Pay $45.5 Million Damage Award
The U.S. Fifth Circuit Court of Appeals held Sept. 21 that the Allied
Pilots Ass'n (APA) and two of its bosses must pay American Airlines (AA)
$ 45.5 million in compensatory damages for failing to carry out a temporary
restraining order requiring the union to call off a sickout by the union.
Judge Robert M. Parker affirmed the award imposed by the district court in Apr. 1999 and rejected APA's argument that the penalty was awarded without regard to its due process rights and inconsistent with the Railway Labor Act. The ruling came one day after union members rejected a tentative agreement between AA and APA that would have extended their contract for one year and nullified the damages award.
After acquiring Reno Air Inc. in Dec. 1998, AA told APA that it intended to operate Reno Air separately for a transitional period. APA argued that the newly acquired airline fell under the existing collective bargaining agreement, and that AA's operation of Reno Air with pilots not on American's pilot seniority list violated the agreement. APA said AA unilaterally amended the collective bargaining agreement, and APA pointed out that such an act, under the RLA, justified a strike or other self-help measure. AA argued that the disagreement was a "minor" dispute under the RLA, making it illegal for the union to take any self-help measures.
The parties negotiated for about two months without a resolution. On Feb. 5, 1999, union members began an unannounced sickout that resulted in over 1,600 flight cancellations and cost AA millions of dollars in lost revenues. U.S. Dist. Judge Joe Kendall granted AA a temporary restraining order on Feb. 10, 1999. The order required APA, president Richard LaVoy, and vice-president Brian Mayhew, to take "all reasonable steps within their power" to prevent the continuation or encouragement of the sickout, including instructing the pilots to resume their normal work hours, notifying pilots by the "most expeditious means possible" of the order and its meaning, and posting the order on the union's telephone and Internet hotlines.
Finding that after the restraining order went into effect, the sickout increased in size, the district court Feb. 12, 1999, issued an order of civil contempt against APA. After a hearing on compensatory damages, the district court awarded the airline $ 45,507,280, an amount equivalent to the losses attributable to APA's conduct.
The Fifth Circuit agreed with the district court that LaVoy and Mayhew violated sections of the order by failing to take all reasonable steps to end or prevent the sickout and failing to issue "cease and desist" directives to the pilots. In addition, their communications with the pilots on Feb 10 and Feb. 11 were not in compliance with the order.
Affirming the damage amount, the Fifth Circuit said "Based on the testimony of American's damage experts ... the district court determined that American's overall loss caused by the work stoppage were somewhere between $200 [million] to $250 million. The basis of the district court's compensatory damages award was the actual damages suffered during the two days the APA was in contempt. This amount, approximately $ 51 million, was reduced another 11 percent for the margin of error in American's estimation and 'booking away' [where passengers change their reservations to another airline because of a potential disruption in service] that may have occurred." [BNA 9/25/00]
UNION DUES / MACHINISTS (IAM)
North Carolina Members Win Union Dues Suit
U.S. Magistrate Judge Carl Horn in N.C. ruled Sept. 14 that the Int'l
Ass'n of Machinists "systematically denied procedural protections" to two
nonmembers the union represented at US Airways who objected to the payment
of dues in support of IAM's nonrepresentational activities. Horn found
IAM denied John Masiello and Craig Sickler their right to object to supporting
the union's nonrepresentational activities when it failed to institute
the precollection procedures the Supreme Court established in Chicago Teachers
Union v. Hudson before it sought to enforce the union security clause in
its contract with the employer. "The record is replete with examples of
the union's untimely, inadequate practices and procedures," Horn wrote.
In 1988, Masiello and Sickler were hired by US Airways in Charlotte to work in the "mechanical and related personnel" craft or class and both became members of IAM. In Charlotte, IAM carries out its functions through its affiliates Airline Machinists Dist. 141-M and Local Lodge 1725. In 1995, both resigned their memberships in IAM and started to annually inform the union, in writing, that they objected to supporting its nonrepresentational activities. On July 8, 1996, Masiello revoked the dues check-off authorization he had signed. Sickler revoked his on Oct. 28.
In 1998, IAM published its current version of a "Notice to Employees Subject to Union Security Clauses," which explained to nonmembers how to file objections and pay reduced dues. The notice stated that the reduced fees for the 1999 calendar year were to be calculated as "the percentage reduction in monthly Grand Lodge per capita payments ... 26.62 percent, plus a 12.71 percent reduction in district lodge per capita and [a] 17.83 percent reduction in local lodge fees." No financial information or explanation of how the union arrived at the fee calculations was included.
In Nov. 1998, Masiello and Sickler each sent IAM a letter objecting to the notice. IAM's secretary-treasurer, Donald E. Wharton, informed both by mail that their objections had been "perfected" and that they had 30 days to file a challenge to the reduced fee calculations before an impartial arbitrator. Included with Wharton's letter to each was a "financial disclosure package." The package contained one-page "fee reduction audit" summaries for IAM and affiliates, "most of which had nothing to do with [Dist.] 141-M or [Local] 1725," Horn said.
"Certain of the information dated back to 1993, some was illegible, and whole sections and columns of information were cut off the copies received by the Plaintiffs," Horn wrote. "Significantly, the 'financial disclosure package' nowhere mentioned the expenditures of Plaintiffs' local union, LL 1725, nor were any of the IAM affiliates' one page 'fee reduction audits' prepared by independent certified public accountants." In his deposition, IAM assistant secretary-treasurer William Engler conceded that nonmember objectors would be unable to compute from the limited information the union provided what reduction in dues was proper.
Masiello and Sickler filed challenges to the union's reduced fee calculations and requested arbitration. They also asked for additional financial disclosure and for the disputed fees to be placed in an escrow account. IAM did not send the employees the information they requested. "IAM did not initiate arbitration until [Nov.] 1999, five months after Masiello and Sickler were discharged, it did not commission any independent audits, and it failed to deposit disputed funds in an independent escrow account," Horn said.
Masiello and Sickler refused to pay any dues that allegedly accrued after Jan. 1, 1999. On Apr. 7, 1999, IAM threatened to have Masiello and Sickler fired if they did not pay the dues they owed plus a "reinstatement fee." On May 14, IAM requested that US Airways terminate both employees for their "noncompliance" with the "Union Shop and Dues Check-Off" provision of the collective bargaining agreement. Masiello and Sickler appealed to US Airways, citing the complete lack of procedural protections, but it "brushed aside the argument as 'not germane' " to the collective bargaining agreement, Horn said. The two were fired on June 1 despite the fact that both had good work records. They sued IAM and US Airways, claiming they were denied the procedural protections to which they were entitled in objecting to the union's calculation of the reduction of dues.
Horn held that IAM did not give Masiello and Sickler the Hudson required "precollection notice," an "audited financial disclosure," or a "fairly calculated 'advance reduction' in dues." Regarding notice, he said, all the employees were given was the "notice" itself, with no disclosure about union expenditures. The "financial disclosure package" Masiello and Sickler were given after their objection "was hardly an improvement on no disclosures at all," Horn said. Further, IAM auditor Jim Pickler conceded in his testimony that the dues reduction IAM should have offered nonmembers was twice what it had allowed.
Horn also held that IAM flouted the requirement that it establish an independent escrow account. The two accounts IAM established as its escrow accounts are controlled by IAM bosses and employees, and IAM routinely withdraws money from them whenever it believes the amounts in the account are excessive. Thus, IAM's "so-called 'escrow account,' which simply moves money from one IAM pocket to another, cannot possibly pass muster under Hudson," Horn concluded.
Further, Horn said IAM's attempt to comply with the requirement to provide the employees an expeditious hearing before an impartial decisionmaker "was the antithesis of expeditiousness." The two had filed their challenge requesting arbitration in Dec. 1998, they were fired in May 1999, and IAM finally initiated arbitration in Nov. 1999. After reviewing the evidence, Horn said that a reasonable factfinder could reach "only one conclusion" in this case and granted summary judgment in favor of Masiello and Sickler as to liability. [BNA 9/27/00]
TEAMSTERS (IBT) / STAGE EMPLOYEES (IATSE)
Probe of Boston Local Reportedly Expands
Expanding the federal shakedown probe into Int'l
Bhd. of Teamsters Local 25 in Boston, investigators are reportedly
now probing allegations that Local 25 president George W. Cashman nixed
a plan to kill a member of another union, agreeing instead to have her
beaten last month "to send [her] a message." Investigators are reportedly
probing an Aug. attack on Susan Christy, a snack truck driver on the movie
set of "What's the Worst That Could Happen." and a member of the Int'l
Ass'n of Theater & Stage Employees.
According to Boston Herald sources and a Boston Police report, James P. Flynn, a reputed mobster and ex-con who runs the Charlestown-based Teamsters' movie crew, ordered Christy to quit so Teamster Robert Martini could take over her concession contract prior to the start of filming this summer. When Christy refused, Flynn reportedly threatened that her equipment would be "severely damaged" if she continued to work, investigators have been told.
Flynn - whose house was searched and whose records were confiscated by federal agents in June - allegedly told Martini that Christy would have to be "killed" or others would "lose respect" for Flynn. Flynn allegedly selected Martini to do the killing because Martini would be the one to benefit. Martini is an ex-policeman who was removed after being convicted of insurance fraud in 1989.
Reportedly, Louis DiGiampaolo, Local 25 treasurer and negotiator, learned of the plan and informed Cashman. Cashman, a member of the Massport Board of Directors and a confidant of Gov. Paul Cellucci (R), allegedly called Flynn into the union's office and vetoed the plan, saying killing Christy would bring "too much scrutiny" in light of the ongoing probe. But, according to what union sources are believed to have said, Cashman agreed to have another Local 25 member "send Christy a message."
On Aug. 15, Bartley Small, a Teamster driver on the set, allegedly pulled Christy from her truck by her hair, tossed her against the vehicle, and slapped and scratched her face while the movie was being shot. Christy, whose truck was allegedly vandalized by Small several times before she was attacked, reported the assault to Boston police, although no formal complaint was ever filed.
Then, Martini told DiGiampaolo about Christy's contact with police and the following day, DiGiampaolo and Flynn reportedly met on the set with Christy and an IASTE business agent. They reportedly apologized and told Christy that there would be no further effort to force her off the set. A meeting was held on Aug. 18 in a Cambridge hotel where Local 25 bosses, including Flynn and Martini, allegedly urged Christy to cease cooperating with law enforcement officials, and said in return she could have her snack truck on all movie sets in the future. The group then allegedly created a cover story about Christy's beating: she would say she suspected Small was stealing off her snack truck, and when she looked in his truck for the items, he caught her and beat her. Small was removed from the movie set by Cashman but remains a Local 25 member reportedly working as a truck driver for the Boston Globe.
Reportedly, the day after the meeting, Flynn, DiGiampaolo and Cashman met at the union's Charlestown office where Flynn complained about the deal made with Christy and wanted to renege on it."Jimmy wanted to (doublecross) her," said one Herald source. But Cashman insisted Flynn "back off" until the federal investigation "blows over," the source said.
Christy is the second IATSE member reportedly beaten for refusing Local 25 demands. During the filming of "Cider House Rules" in 1998, an IATSE technician was brutally assaulted by several Teamsters for refusing to allow Local 25 members to drive his personal van.
Federal officials refused to comment on the probe. Reportedly, Christy is not cooperating with federal investigators. [Bos. Herald 9/26/00]
SERVICE EMPLOYEES (SEIU)
Illinois Organizer Accused of Racial Slur
A hotly contested effort to organize St. Mary's Hospital in E. St.
Louis, Ill., took a racially divisive turn Sept. 25 when SMH executives
posted a sign with quotes attributed to a union organizer who allegedly
used a racial slur to describe SMH's CEO. The slur allegedly came from
Wade Outlaw, a former hospital worker and organizer for the Serv. Employees
Int'l Union. Outlaw denied he made the remark. The union is trying to sway
a majority of the hospital's 500 workers to vote for collective bargaining
in an election scheduled for Oct. 5.
Outlaw's alleged remarks are contained in an affidavit signed by a witness who told the Nat'l Labor Relations Bd. that Outlaw referred to CEO Richard Mark, "the head nigger" and that "he wasn't going to keep us down anymore." Outlaw also allegedly told the witness, an unidentified drug company representative, that Mark is being investigated by federal authorities for embezzling $150,000, according to the affidavit. Mark said there isn't an investigation into missing money.
Mark said he authorized the posting of the sign outside the employee cafeteria to rebut SEIU charges that Outlaw had been fired because of his union activity -- charges that have led to pressure from local pro-union politicians. "Now they're accusing me of firing someone for union activities, when in fact, here is what this guy is trying to do to my reputation," Mark said. "And I felt the truth needed to be known."
Outlaw said the allegations against him make no sense because of his past work in so-called "social justice" issues.
Rev. Johnny Scott, the president of the E. St. Louis chapter of the NAACP, issued a news release Sept. 27 denouncing SEIU because of Outlaw's alleged remarks. Scott, a member of the hospital board, called for Outlaw's removal from SEIU's campaign. "I want Outlaw outlawed," Scott said.
Mark and Scott oppose the union because they contend it could financially hurt the hospital, which is already facing a $1 million deficit. Belleville (Ill.) News-Democrat 9/28/00]
GOVERNMENT EMPLOYEES (AFSCME)
Rhode Island Boss Accused of Stealing from Town
Known as the "conscience of Town Hall," the Rhode Island town of Burrillville's
deputy treasurer Sandra J. Stone was charged Sept. 21 with embezzling town
funds. Stone is also a union steward Am. Fed'n of State, County &
Mun. Employees Dist. Council 94. Stone is accused of embezzling $925 from
the town, but state police say she is the sole suspect in the disappearance
of about $20,000 in public funds.
Town Council President Wallace F. Lees said that Stone is the last person he would suspect of being involved in these allegations. Even before she became an AFSCME boss, Stone watched out for other employees; if she thought someone was cheated in dollar value or time off, she'd go to bat for them, Lees said. She is known for having a firm sense of right and wrong, Lees said. And she would be the last person to tolerate embezzlement if the case involved someone else, he said. She'd hang them, he said.
So why would Stone have done something so out of character? According to a state police affidavit filed in court, Stone offered this explanation: The money was there, it looked good, so I took it.
As deputy treasurer, Stone was one of two town officials entrusted with making deposits in the town's general fund bank account. Auditors have found eight missing deposits over the past two years, and Stone collected seven of those eight deposits, which total about $20,000, the affidavit states. Stone has been charged only in connection with a single $925 deposit. After learning of the missing money, town officials met with Stone on Sept. 15 and placed her on paid administrative leave. [Providence J.-Bull. 9/25/00]
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