TEAMSTERS (IBT) / AFL-CIO
Carey Indicted! Trumka Next? Hamilton Loses Appeal
Ex-Int'l Bhd. of Teamsters president Ron Carey pled not guilty Feb.
1 to federal criminal charges that he knowingly participated in a complex
scheme to funnel more than $538,000 in
union funds to his failed 1996 reelection campaign. Carey
was indicted Jan. 25 on seven counts of perjury and making false statements
in connection with the probe of the money-laundering scandal, an action
long urged by Carey's IBT rivals and watchdogs, such as the Nat'l Legal
& Policy Ctr. Prosecutors alleged that Carey lied when he denied knowledge
of a swap of IBT contributions to various groups in return for their arranging
for donations to his campaign. Upon arraignment before a federal magistrate
judge, Carey was released on his own recognizance.
Carey's campaign manager, Jere Nash, and two consultants, Martin Davis and Michael Ansara, were the first defendants in the scandal to plead guilty to criminal charges way back in Sept. 1997. Although they have cooperated with the government, they have yet to be sentenced.
"Finally! Ron Carey was indicted. It was very, very late but better than never." NLPC President Peter Flaherty said. "However, the timing is suspect. If Al Gore had won the election, would Carey still have been indicted? One would hope so. But U.S. Attorney Mary Jo White's record in this case does not build confidence. After a quick round of guilty pleas in 1997, the probe has dragged terribly. This delay has not in the interest of justice. It has allowed individuals who might have been under an indictment cloud to participate in the political process when the taint of corruption should have relegated them to the sidelines. I refer to AFL-CIO's Richard Trumka and AFSCME's Gerald McEntee and Paul Booth -- all of whom have been implicated in the Carey scandal and campaigned tirelessly for Gore and other Democrats in 1998 and 2000."
Flaherty added, "Trumka, should be next on White's (or her replacement's) list. Despite Trumka twice invoking the Fifth Amendment to avoid federal investigators' questions, the case against him is strong. According to court records, Trumka helped launder $150,000 from the Teamsters' treasury through the AFL-CIO for the benefit of the Carey campaign. Additionally, Trumka allegedly solicited and/or contributed $50,000 to the Carey campaign in violation of federal labor law. The prosecution of ex-Teamsters official William Hamilton was extremely damning for Trumka. For example, it revealed that one of the key meetings that helped facilitate the $150,000 transaction allegedly took place in Trumka's AFL-CIO office with him present. Yet, White and the Dep't of Justice have failed to indict Trumka. With the end of the Clinton-Gore Adminstration and the protection it appears to have provided, Trumka's time is now."
Carey's attorney Reid Weingarten, when asked by the Bureau of Nat'l Affairs whether he saw any connection between the timing of the indictment and the change in presidential administrations, said, "We're going to look at [that during] discovery."
The evidence cited in the indictment is almost identical to the findings made by a court-appointed Indep. Review Bd. in its 1998 order expelling Carey from IBT. Carey's appeal of the district court decision upholding his expulsion is pending before the U.S. Court of Appeals for the Second Circuit. Arguments in the case were held Jan. 22.
Also on Jan. 22, the Second Circuit affirmed the Mar. 2000 criminal conviction of Hamilton for his role in the scheme. Of the six people convicted for their roles in the scheme, only Hamilton pled not guilty. Hamilton's attorney, Barry A. Bohrer, plans to file a petition for rehearing in the case. Hamilton remains free on bail pending the outcome of his appeal. [BNA 02/02/01] NOTE: A copy of Carey's indictment is posted on NLPC's Web site: http://www.nlpc.org/olap/teamster/010125mw.htm.
FIRE FIGHTERS
Illinois Firefighter Suspected of Union Embezzlement
An ex-firefighter member of two Aurora, Ill., firefighters' organizations
is suspected of embezzling nearly $156,000 from the groups. No charges
have been filed in the case, but the matter was discussed Jan. 23 at the
Firefighters Pension Fund board of trustees meeting by attorney Wade Joyner
on behalf of the Aurora Firefighters Relief Ass'n.
Allegedly, the unnamed individual embezzled $92,000 from Aurora Firefighters Local 99 between 1992-2001. Further, the individual allegedly embezzled $63,933 the Relief Ass'n between 1995-99. Audits of the Relief Ass'n triggered the probe. Local 99's attorney, J. Dale Berry, declined to say how the embezzlement is alleged to have happened. [Chi. Trib. 01/24/01]
TRANSPORT WORKERS (TWU)
Judge Continues Philly Trusteeship
U.S. Dist. Judge Louis C. Bechtel in Philadelphia issued a preliminary
injunction Jan. 16 enforcing the Transport Workers Union's trusteeship
over TWU Local 234. Denying Local 234's motion seeking a preliminary injunction
that would prevent enforcement of the trusteeship, Bechtel found that TWU
was likely to experience irreparable harm and was reasonably likely to
succeed on the merits of a case over the legality of the trusteeship. Bechtel
also held that remedying the financial malpractice and subversion of union
democracy committed by Local 234's executive board warranted establishing
a trusteeship.
"It is undisputed that both correcting financial malpractice and restoring democratic procedures are valid purposes for the establishment of a trusteeship under [the Landrum-Griffin Act]," Bechtel wrote.
In June 2000, TWU sent a fact-finding team to investigate reports of misconduct by Local 234's executive board. On Aug. 25, TWU president Sonny Hall filed a Notice of Trusteeship against Local 234's executive board. It contained 24 charges alleging financial malpractice, subversion of union democracy, and discord among the members of the board. TWU appointed a subcommittee of the Int'l Executive Council to hear the charges against Local 234. After 18 days of hearings, the subcommittee issued charges including: failing to timely establish a pension plan for clerical employees; pressuring two elected officers into resigning their positions; threatening 12 officers with removal for engaging in free speech; and routinely reimbursing officers and staff without requiring written documentation of expenditures.
On Nov. 30, IEC unanimously adopted the subcommittee's report and imposed an immediate trusteeship. Harry Lombardo, a TWU int'l vice president and a past president of Local 234, went to Local 234's offices to carry out his duties as the appointed trustee. The local refused to let Lombardo carry out his duties under the trusteeship order, informing him that it only would comply if he secured a court order. The same day, TWU filed a request for a temporary restraining order and a preliminary injunction to enforce the trusteeship. Local 234 filed a complaint, claiming that the trusteeship violated Landrum-Griffin. On Dec. 4, U.S. Dist. Judge Bruce W. Kauffman denied the request for a temporary restraining order. [BNA 01/31/01]
SERVICE EMPLOYEES (SEIU)
Oregon Local Placed in Trusteeship
The Serv. Employees Int'l Union placed Local 49 in Portland, Or. into
trusteeship on Jan. 19. Local 49's ex-secretary-treasurer, Don Weston,
resigned Jan. 19 and SEIU appointed trustees Alice Dale and Alonzo Suson
as interim managers. Dale is executive director of SEIU Local 503 in Salem,
and Suson is SEIU's regional organizing director based in Seattle. Allegedly,
internal dissension, and not financial wrongdoing, prompted the move. No
time limit was placed on the trusteeship. [BNA 01/24/01]
HOTEL EMPLOYEES (HERE)
Boss' Unpaid Taxes, Fines Questioned
Janice Loux, president Hotel Employees & Restaurant Employees Int'l
Union Local 26 in Boston and board member of the Mass. Bay Trans. Auth.
is in trouble for avoiding taxes and parking fines. The "combative" boss,
who has blasted the T (Boston's subway) for blowing taxpayer money on wasteful
construction projects, had her car registration revoked two years ago after
failing to pay auto excise taxes and a series of Boston parking tickets.
Loux, a registered voter in Boston since at least 1988, has also been driving
with a Vermont license after letting her Mass. license expire in 1990 after
compiling a "sketchy" driving history.
Asked by the Boston Herald about her car problems last week, Loux said she had no idea she owed any taxes or tickets to the city. "I don't believe I owe that stuff," said Loux, "But if I do, it's been an oversight." She also said the license issue is a mistake, saying she got a license in Vt. because she owns a vacation home there. "I've just never bothered to change it over."
Despite not being allowed to register a car or get a license in Mass. until she pays the $136.42 in outstanding excise taxes and the $276 she owes for six Boston parking tickets, Loux has a parking spot reserved for her at the Mass. Trans. Building. The $250-per-month spot (an extra perk for MBTA board members if they request it) is paid for by MBTA, which also gives all board members a $7,500 stipend. [Bos. Herald 01/29/01]
ELECTIONS & POLITICS / AFL-CIO / SEIU
Democratic Staffers Land Union Posts
Effective Jan. 22, Bill Samuel, who has been a senior adviser to ex-Vice
President Al Gore on labor policy, became the legislative director of the
AFL-CIO. Prior to his job with Gore, Samuel worked for four years
in the Dep't of Labor. For 15 years, he held various positions in the union
movement including legislative director for the United Mine Workers (the
former home of corrupt AFL-CIO
secretary-treasurer Richard L. Trumka). [BNA 01/23/01]
Separately, the Serv. Employees Int'l Union announced Jan. 29 that it has hired political strategist Gina Glantz, who was ex-Sen. Bill Bradley's campaign manager for the 2000 presidential campaign. She has been named assistant to the SEIU president, Andrew Stern, for strategic issues and political action. She founded Martin & Glantz, a political consulting firm. She previously served as field director for the 1984 Mondale-Ferraro campaign. [BNA 02/02/01]
- - - - - -
ADDITIONAL BRIEFS NOT INCLUDED ON THE FAX EDITION OF THIS UNION CORRUPTION UPDATE:
- - - - - -
AUTO WORKERS (UAW)
Members' Suit Against UAW Proceeds
U.S. Dist. Judge Paul Gadola in Flint, Mich., delayed ruling on whether
a high-profile lawsuit filed by 142 United Auto
Workers members against their union and General Motors should proceed and
postponed further arguments in the case until Mar. 1. Gadola heard arguments
Friday from GM and the UAW that the lawsuit alleging collusion between
them to extend a 1997 strike at a Pontiac truck plant was filed long after
a six-month statute of limitations. GM also argued that labor negotiations
and bargaining are outside the purview of the court and should be regulated
only by the Nat'l Labor Relations Bd., if at all.
The members' attorney, Harold Dunne, argued the members didn't know of the alleged collusion and breach of representation by GM and the UAW until this summer, which explained the delay in their filing of the suit. Dunne added that for the court to dismiss the suit was tantamount to "sanctioning criminal conduct by this huge national corporation and this huge union." GM, the UAW and UAW Local 594 in Pontiac seek to dismiss the $550-million lawsuit before it moves to the discovery phase.
The lawsuit, which piggybacks on a federal criminal probe, charges that top UAW and GM officials conspired to prolong by two months a 1997 strike at GM's Pontiac Truck and Bus plant while bargaining for $200,000 in bogus overtime payments and jobs for union bosses' relatives. The strike lasted 87 days and cost the average hourly UAW member $10,000 to $20,000, according to the suit filed in Aug. 2000. The U.S. Dep't of Labor and the FBI have investigated allegations of improper payouts and nepotism at Local 594. Their findings have led to an investigation by a grand jury in Detroit.
To bolster their contention that the members knew of the alleged illegal payouts and nepotism as early as 1997 or 1998, GM and the UAW attorneys read from about 40 different leaflets, newsletters and grievances filed by hundreds of members within the Pontiac plant. That plant remains GM's only UAW local without a new contract. "This mountain of evidence shows the workers were well aware of what they allege was going on," said UAW attorney Samuel McKnight. "These issues were the object of leaflets and discussion in union meetings in 1997 and 1998. The (six-month) statute of limitations exists so that stale conflicts such as this can't come out three years later to disturb our society."
Gadola said GM and UAW might have shown some of the members knew about the alleged incidents "but hadn't answered whether union members should have known these things prolonged the strike, a key aspect of the plaintiff's case."
Dunne said members' complaints about the hiring of Todd Fante and Gordon Campbell, two relatives of union bosses, is not barred because workers only recently realized that grievances they filed with Local 594 would not be fairly adjudicated by the union. The lawsuits allege Fante and Campbell were not qualified for the skilled-trades jobs they received. [Det. Free Press 02/03/01]
AIR LINE PILOTS (ALPA)
Court May Allow Delta to Terminate Unionists
The Jan. 18 decision by an U.S. Court of Appeals for the 11th Circuit
could force the Air Line Pilots Ass'n to end a no-overtime campaign by
Delta Air Lines pilots.The opinion, written by U.S. Circuit Judge Gerald
B. Tjoflat, affirmed that Delta's pilots "were engaged in an unlawful no-overtime
campaign," in violation of a contract that expired in 1999 but remains
in collective bargaining." While ALPA attorneys insist the union has directed
the pilots to cease their no-overtime campaign, Tjoflat's opinion noted
the judges "seriously doubt" that ALPA has done all it can to stop it.
ALPA's constitution permits the union "to discipline, fire or expel any
member for a number of reasons, including 'acting in any manner to circumvent,
defeat or interfere with collective bargaining,'" the opinion states. Tjoflat's
opinion suggests that if ALPA "has lost control of its members," Delta
may return to court and seek permission to terminate some of the participating
pilots.
Delta sued ALPA last month, charging that its pilots had organized an effort to decline "overtime" flights during the Thanksgiving and Christmas holidays. Delta submitted information to the court that, because of the pilots' refusal to work overtime, the airline canceled more than 5,200 flights between mid-November and Jan. 1, adversely affecting more than 750,000 passengers. [Fulton County Daily Rep. 01/24/01]
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.
Union Corruption Update Article Index (by Union)
Union Corruption Update Article Index (by State)
Organized Labor Accountability Project