Money-Laundering Scandal Briefs

  • Aug. 4: U.S. Attorney Mary Jo White told the U.S. District Court in Manhattan that Congress allowed the Justice Department to spend $4 million of the $8.4 million estimated cost on the rerun election. [BNA 08/05/98]
  • Aug. 3: Teamsters presidential candidate and Carey supporter, Tom Leedham accused Rep. Peter Hoekstra (R-MI) of using his Congressional investigation into the Teamsters scandal to aid rival candidate James P. Hoffa. Hoekstra’s spokesman said it was “ridiculous.” [BNA 08/04/98]
  • Jul. 27: Ron Carey, who was elected in 1991 with a motto “no corruption, no excuses, no exceptions,” was permanently expelled from the union almost a year after revelations of his 1996 campaign’s schemes that funneled over $538,000. The court-appointed Independent Review Board also expelled disgraced Teamsters political director William W. Hamilton who has been indicted for his role in the scandal. [Wash. Times 07/28/98]
  • Jul. 24: Teamsters Vice President Aaron Belk’s
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Strike-Happy CWA in 35 States?

If the Communications Workers of America has its way, it may disconnect America in Aug. as strikes near at 3 regional telephone giants. On Aug. 3, CWA members authorized strikes at BellSouth and US West, and CWA’s board authorized a strike against Bell Atlantic. CWA President Morton Bahr smugly proclaimed, “We have serious problems, much negotiating to do and very little time to go.” Contracts expire at Bell Atlantic and BellSouth on Aug. 8 and US West on Aug. 15. If CWA doesn’t compromise: 73,000 workers at Bell Atlantic in DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT, VA, WV & DC; 48,000 at BellSouth in AL, FL, GA, KY, LA, MS, NC, SC & TN; and 36,000 at US West in AZ, CO, ID, IA, MN, MT, NE, NM, ND, OR, SD, UT, WA & WY will be on strike.

Boss Doctors Union’s Books
Louis DiFiore, the … Read More ➡

Top Cranston Officials’ Trial Set

On Aug. 4, nine months after two union members of the National Association of Government Employees Local 198 in Rhode Island were indicted on racketeering and bribery charges and suspended from Cranston city jobs, City Treasurer Kathleen DeLuca and her husband, Raymond, director of the city’s computer services had their criminal trial date set for Nov. 16. According to the Attorney General, the DeLucas are accused of accepting $188,771 in kickbacks in return for securing about $564,000 in city computer contracts for a company. The DeLuca case was another black eye for Mayor Michael A. Traficante’s administration that has been rocked by the kickback-and-bribery convictions of a Public Works Director and a Parks and Recreation Director. Traficante, who is not seeking reelection this year after 14 years in office, pleaded guilty himself in 1994 to nine campaign-finance misdemeanors. [Providence Journal-Bulletin 08/04/98 & 08/05/98]

Teamsters Cited for Illegal Dues CollectionRead More ➡

Militants Overrun University of Wisconsin Bookstore

On Jul. 31, about 150 militant Union of Needletrades, Industrial & Textile Employees members raided the University of Wisconsin Bookstore claiming the clothing in the store was produced in “sweatshops.” UNITE protesters ripped open the doors and began marching into the store, chanting and shaking cans filled with pieces of metal as employees and patrons watched with “amazement and dismay.” At each level of the store, a contingent peeled off to march around that floor while the bosses continued to the administrative offices. Richard Metcalf, boss of the Midwest Regional UNITE demanded to see “someone in authority.” When denied, UNITE sat down in the halls and began singing a union anthem ”We Will Not Be Moved,” while on the floors below their followers continued to march and chant. As the Madison Police Department moved into positions around the store, UNITE marched out and briefly terrorized a second store up the … Read More ➡

SEIU Fails to Disclose Lobbying

San Francisco unions have never disclosed their lobbying of city officials despite a 10-year-old law aimed at eliminating back-room deal-making. SF’s Ethics Commission is now attempting to force compliance by the unions, particularly Service Employees International Union which is SF’s largest union and has led the lobbying effort this year on hotly-contested health care legislation. The unions face thousands of dollars in penalties if they are found to have knowingly not complied with the ordinance. Union bosses contend they were unaware the measure applied to them. They also argue it is wrong to lump them in with hired-gun lobbyists for corporate interests. And they have said the unions will resist city efforts to force them to make disclosures under the lobbying ordinance.

But that has not sat well with other lobbyists and elected officials. “Since I took office in 1993, the unions have been the strongest lobbying force and the … Read More ➡

Massachusetts Local Stoops “Pretty Low” in Negotiations

Local 254 of the Service Employees International Union, which represents Massachusetts probation officers, has told its members to stop volunteering for community-based probation plans because a contract dispute with the state court system. The following excerpts of a Jul. 25 Boston Herald editorial speaks for itself:

“As a negotiating tactic, this is pretty low. Local 254 of [SEIU], this week directed its members not to work after regular office hours. This could cripple the crucial ‘Night Light’ program in Boston, under which probation officers check up on their charges with visits to their homes and haunts at night, not to mention other important after-hours programs in many communities. Though the union claims ‘a couple’ of members haven’t joined this boycott, ‘they will get religion as well.’ We hope it’s more than a couple, and we hope for a growing apostasy. Probation officers in Brockton were reported to have decided to … Read More ➡

Rerun Election Funds Still Up in the Air

In the hour-by-hour saga over how the Teamsters’ rerun election will be funded, the latest twist on Jul. 23 came from Senate Appropriations Committee Chairman Ted Stevens (R-AK). Stevens, over Subcommittee Chairman Judd Gregg’s (R-NH) objections, endorsed a Justice Department proposal, called by some “the least lousy choice,” that has the taxpayers paying about half of the $8.6 million estimated rerun costs. This comes after the U.S. District Judge David N. Edelstein’s multiple deadlines for Justice to secure funding have passed, and after the Teamsters, emboldened by a favorable U.S. Appeals Court ruling, have said they will contribute no more than $1 million towards the rerun. If there is no resolution, Edelstein has no choice but to allow the Teamster to conduct an unsupervised election. This entire sad situation is due to Ron Carey’s 1996 campaign’s $538,100 money-laundering schemes. [BNA Daily Labor Report 07/24/98]

Libel Suit Against Teamsters ContinuesRead More ➡

UAW Settles Racial Harassment Suit for $75K

St. Louis United Auto Workers Local 25 agreed on Jul. 16 to settle a lawsuit brought by the Equal Employment Opportunity Commission for $75,000. The suit contended that the UAW failed to stop “severe and pervasive” harassment of 3 black General Motors supervisors by now-former union boss Robert Wilson in the period 1992-94. The EEOC’s statement called it a “landmark case” and said it was “the first to hold that a federal employment discrimination statute prohibits unions from allowing their officers to racially or sexually harass company managers.” [BNA Daily Labor Report 07/21/98]

Election Fraud Case Stays Secret
A KY judge rejected prosecutors’ bid on Jul. 13 to release secret grand-jury testimony about Gov. Paul Patton’s (D) 1995 campaign, the AFL-CIO and other union groups’ alleged effort to circumvent the spending limit candidates adopt in return for taxpayer financing under an ill-designed law limiting campaign contributions and free speech. … Read More ➡

Funding the WorldCom-MCI Foes?

On Jul. 15, the Justice Department approved WorldCom’s acquisition of MCI over the protests of rivals, unions and left-wing activists. The merger has one more regulatory hurdle: a “public interest review” by the Federal Communications Commission where an alliance of self-interested opponents will put up their strongest fight. In addition to the Communication Workers of America, the AFL-CIO’s John J. Sweeney, Jesse Jackson and Ralph Nader have entered the fray. And GTE, hoping to revive its own efforts to acquire MCI, has fought the merger. WorldCom & MCI are largely non-union companies. If this merger is overturned and GTE gets MCI, CWA stands to inherit a hefty amount of defenseless workers ripe for unionizing.

Evidence is growing that corporate dollars are supporting the union and left-wing activist’s PR battle. GTE’s PR firm Powell Tate, a D.C. firm which is also working with Nader on an anti-Microsoft campaign, held a Capitol … Read More ➡

Boss Gets 1 Year for Embezzlement

On Jul. 20, the U.S. District Court in Seattle sentenced Robert Kellas, former-president of Amalgamated Transit Union Local 843 in Bellingham, WA, to a year and a day in prison and ordered him to pay $78,248 in restitution on top of $70,000 already paid. He will also serve 3 years of supervised release after facing a maximum of 5 years in prison. On Apr. 23, Kellas pled guilty to embezzling between $70,000 and $120,000 from Local 843 and the ATU Legislative Council of Washington State. He was president of Local 843 from 1990-97 and secretary-treasurer of the Legislative Council from 1994-97. The U.S. Attorney’s Office said Kellas’ scheme was simply writing checks to himself from the 2 unions. [Seattle Times 04/24/98 & 07/21/98]

Union Corruption Studies Available
The Public Service Research Council just published 2 timely studies: “Fraud Prevalent in Prevailing Wage Surveys” & “The Case Against Public Sector … Read More ➡

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