Clothing Union Corruption

According to Rep. Hoekstra’s subcommittee, the bosses of the Union of Needletrades, Industrial & Textile Employees are profiting from their members job losses due to a special industry proviso in federal labor law.
The May 27 report states UNITE receives “liquated damages” from companies for contract breaches which include relocating production overseas. UNITE treats the payments as its own since no explicit obligation exists to distribute the money to its members.

“So as contracts leave the country and UNITE’s members lose their jobs, UNITE itself continues to receive ‘a piece of the action’… Over the past few decades garment unions have lost more than half of their membership to overseas competition. Yet during that same time, UNITE and its predecessors became the richest of all unions, as measured on an assets per member basis. UNITE not only on owns the Amalgamated Bank of New York, but also owns much prime …

CWA Accused of Inducing Fear About Disabled

In a June 2 letter, the Developmental Disabilities Council, a New Jersey watchdog group on state policy, accused the Communications Workers of America of threatening to expose the names of group home residents who have criminal records or a history of behavior problems in order to halt the closing of state institutions for the disabled. The group’s director Ethan Ellis said, “This degrades the public images of people with developmental disabilities irreparably. It is going to take years to repair that damage.” [Bergen Co. Record 06/03/98]

Tainted Ex-President Reinstated
On June 3 in St. Louis, a U.S. District Judge had Service Employees Int’l. Union Local 50 to reinstated its ex-president William Stodghill. He was ousted from office and the union in 1996 amid allegations of wrongly spending the union’s funds for his personal expenses. Current local president Don Rudd said, “Stodghill was found guilty of improperly using members’ money at …

Ex-AFSCME Boss Indicted

In N.Y., Lawrence Germano former associate director and executive director of Council 82 of the American Federation of State, County and Municipal Employees was indicted on Jun. 5 on federal charges of defrauding union members through a computer-consulting scam in 1993-94. The 14-count indictment included Germano’s two brothers-in-law. This same AFSCME council had four bosses ousted in 1995 for misusing about $450,000 of union funds for out-of-state trips and visits to strip bars. [Albany Times Union 06/06/98]

VP Consorting with AFSCME Boss Implicated in Teamsters Scandal
Vice-President Albert Gore, Jr. had an “unusual” close-door meeting on Jun. 5 with 3 union bosses including AFL-CIO President John J. Sweeney and AFSCME President Gerald W. McEntee to discuss opposition to the proposed Freedom From Government Competition Act. McEntee has been implicated in the Teamsters money-laundering scandal. According U.S. District Court records, McEntee raised $20,000 for Ron Carey’s reelection campaign which allegedly violated …

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