Union Corruption Update

Since 1997, NLPC has become a high-profile and credible source for information about America’s labor unions through our publication Union Corruption Update.

The newsletter has been referenced in many other media outlets including the New York Times, Chicago Tribune and National Journal.

Laborers Field Rep in Pennsylvania Sentenced for Thefts

Laborers logoOn May 10, Gary Day, former field representative of Laborers International Union of North America Local 1180, was sentenced in U.S. District Court for the Middle District of Pennsylvania to three years probation for embezzling funds from the Harrisburg union. He also was ordered to pay $10,518 in restitution and a $100 special assessment. Day pled guilty in January. The guilty plea and sentencing follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Northern California Glass Workers Treasurer Pleads Guilty to Theft

Glass Workers logoOn May 10, Curtis Iwatsubo, former financial secretary-treasurer of Glass, Molders, Pottery, Plastics and Allied Workers International Union Local 52, pleaded guilty in U.S. District Court for the Northern District of California to one count of embezzling funds from the Santa Clara local in the amount of $48,434.50. He had been charged in March after having made more than 80 unauthorized withdrawals with his union ATM card and subsequently concealing the thefts on union financial statements. The guilty plea follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Laborers Treasurer in Ohio Charged with Embezzlement

Laborers logoOn May 20, Crystal Lynn Croston, former office secretary for Local 1015 of the Laborers International Union of North America, was charged in the Municipal Court of Stark County, Ohio with theft in the amount of $1,344.08 from the Canton local. The charge follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Upstate New York Sheet Metal Workers Treasurer Pleads Guilty

On May 20, Joseph Kerwan, business manager/treasurer of Sheet Metal Workers Local 112, pleaded guilty in U.S. District Court for the Western District of New York to falsifying records of the Elmira-based union. He also will have to make restitution in the amount of $6,927.55. The guilty plea follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Treasurer of Ohio Transit Union Sentenced for Embezzlement

Transit busOn May 19, Lisa Wright, former treasurer of the Transit Employees Union, was sentenced in U.S. District Court for the Northern District of Ohio to three years probation for embezzling $71,470.50 in funds from the Bedford (suburban Cleveland) union. She also will have to make full restitution. Wright pleaded guilty in February. The sentencing and guilty plea follow an investigation by the Labor Department's Office of Labor-Management Standards.

Northern Virginia Federal Employees Ex-Local President Charged

On May 18, Richard James, former president of American Federation of Government Employees Local 1402, was charged in General District Court for Arlington County, Virginia with embezzling $1,550 in union funds. The charge follows a probe by the Labor Department's Office of Labor-Management Standards.

Casey-Pomeroy Bill Would Bail Out PBGC, Union Pensions

bailoutPension Benefit Guaranty Corporation, like Fannie Mae and Freddie Mac, is a case of "too big to fail." At least a number of members of Congress see it that way. And they are planning a push for legislation designed to shore up underfunded multiemployer private-sector pension funds whose result could put taxpayers on the hook for billions, if not tens of billions, of dollars. Sen. Bob Casey Jr., D-Pa., and Reps. Earl Pomeroy, D-N.D., and Patrick Tiberi, R-Ohio, the driving forces behind this measure, seek to shift the primary responsibility of keeping pensions adequately funded from unions and unionized employers onto the general public. It's another example of the bailout culture in action.

Indiana Teamsters Bookkeeper Pleads Guilty to Embezzlement

TrucksOn May 19, Stacey Spalding, former bookkeeper of International Brotherhood of Teamsters Local 215, pled guilty in U.S. District Court for the Southern District of Indiana to embezzling $29,516 in funds from the Evansville union. She had been charged in March. The guilty plea follows an investigation by the Labor Department's Office of Labor-Management Standards.

Graphic Communications Workers Treasurer in Ohio Pleads Guilty

On May 14, Jeffrey Kenney, former secretary-treasurer of Graphic Communications International Union Local 205-C in Youngstown, pleaded guilty in U.S. District Court for the Northern District of Ohio to embezzling $10,305.70 in union funds and filing a false financial report. He had been indicted in February for embezzling more than $14,000. The GCIU has been affiliated with the Teamsters since the start of 2005. The guilty plea follows a probe by the Labor Department's Office of Labor-Management Standards.

Wisconsin Local Boilermakers President Sentenced for Theft

Boilermakers logoOn May 12, Warren Demmin, formerly president of Local Lodge 449 of the International Brotherhood of Boilermakers, was sentenced in U.S. District Court for the Eastern District of Wisconsin to four months in prison, four months electronic monitoring and three years probation for embezzling $169.12 from the Sturgeon Bay union. The actual theft was a good deal higher, as evidenced by his previously having made $14,045.48 in restitution. Demmin, who also must pay a $100 special assessment, pled guilty in February. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

GM IPO: UAW's Pump and Dump?

UAW/GM logosMore evidence that the GM IPO is being hurried for political purposes is found in the IPO registration filing yesterday. The company cannot assure the accuracy of its financial information because of weaknesses in its internal controls. How can GM offer and price shares if it cannot even attest to its own financials?

The shares being offered for sale will come from the U.S. government and the United Auto Workers (UAW) trust fund, another red flag. If the UAW has such great confidence in the future of the company, why is it selling? Is it to cash in on the superficial media accounts of GM’s “progress,” when it knows the long-term future of the company is less rosy?

Burger Resigns from SEIU, Change to Win

Anna BurgerAdmirers may still call her "the queen of American labor," but Anna Burger (see photo) is now without a throne. Last week Burger stepped down as secretary-treasurer of the Service Employees International Union and as chairwoman of the SEIU-driven labor federation, Change to Win. Her resignations, which came on the heels of her announcement, wasn't unexpected to those who know her. Her boss and longtime ally, Andrew Stern, only a few months earlier had resigned as Service Employees president. And Burger couldn't secure the needed support from the union's executive committee in her bid to become Stern's successor. The top spot went to Executive Vice President Mary Kay Henry. Though publicly she welcomed Ms. Henry's ascension, privately she was planning her exit. That's the nature of power struggles in any type of organization: Odd person out leaves.

Laborers to Leave Change to Win, Rejoin AFL-CIO

Laborers logoThe divorce within the American labor movement five years ago is fast approaching reconciliation. Last Friday, the Laborers International Union of North America, or LIUNA, announced it would be rejoining the AFL-CIO following its spell as a member of a breakaway federation, Change to Win. The move is expected to be complete in October. This makes the third union to have journeyed home; last year former Change to Win members UNITE HERE and the Carpenters rejoined. The latest move speaks of organized labor's reenergized focus on securing congressional passage of the Employee Free Choice Act and other pro-union legislation. It also underscores the extent to which Change to Win from the start has been a hobbyhorse of Andrew Stern, who this spring retired as president of the rival federation's lead union, the Service Employees International Union (SEIU).

New Jersey Painters Business Manager Pleads Guilty to Embezzlement

Painters logoOn May 12, Patrick James Brennan, former business manager and secretary treasurer of International Union of Painters and Allied Trades District Council 711, pleaded guilty in U.S. District Court for the District of New Jersey to three counts of embezzlement of nearly $25,000 in funds and other things of value from the Egg Harbor Township (near Atlantic City) union. He used the district council credit card to make $4,862.12 in unauthorized charges; converted to his own use a union-owned vehicle worth about $11,000, and issued himself unauthorized holiday bonuses between December 2004 and December 2006 totaling $8,652. The guilty plea follows a probe by the Labor Department's Office of Labor-Management Standards.

Workers United Secretary-Treasurer in Wisconsin Charged

On May 12, Kathy Oatman, former secretary-treasurer of Workers United Local 228, was charged in U.S. District Court for the Western District of Wisconsin with embezzling more than $4,000 in funds from the Eau Claire union. Americans United is a union formed last year representing textile workers loyal to Bruce Raynor, who had bolted from UNITE HERE in the wake of a feud with that union's co-president, John Wilhelm. Americans United since has affiliated with the Service Employees International Union. The charge follows an investigation by the Labor Department's Office of Labor-Management Standards.

Labor Department IG Nominee Favors Immigrant Voting Rights; Co-Founded Union-Supported PAC

U.S. Department of Labor headquartersIf there is one position within the federal bureaucracy more than any other that requires impartiality it is Inspector General (IG). By law, the holder of this office must operate independently of his political beliefs. The nomination this past May of the next head of the Department of Labor's Office of Inspector General is putting this principle to the test. The Obama White House believes it has found the right man for the job in Paul Tiao. Yet Tiao, an experienced federal prosecutor, apparently holds the view that one need not be a U.S. citizen to be eligible to vote. Moreover, a little over a decade ago he co-founded a political action committee whose extensive union support might compromise his impartiality. When the Senate Judiciary Committee convenes after summer recess to consider the nomination, members should raise these issues as a matter of protecting public integrity.

AFSCME President in Cincinnati Pleads Guilty to Theft, Sentenced

AFSCME logoOn May 11, Donald Woods, former president of American Federation of State, County and Municipal Employees Local 217, pleaded guilty in Hamilton County (Ohio) Court of Common Pleas to one count of theft of union funds. He then was sentenced to six months probation. Woods previously had made restitution to the Cincinnati union in the amount of $1,376. The guilty plea and sentencing follow an investigation by the Labor Department's Office of Labor-Management Standards.

Ex-President of Michigan Steelworkers Local Charged

Steelworkers logoOn May 11, Oscar Gatewood, former president of United Steelworkers of America Local 842 in Detroit, was charged in U.S. District Court for the Eastern District of Michigan with an information count of concealing union records. The action follows a probe by the Labor Department's Office of Labor-Management Standards.

Indiana AFSCME Local Secretary-Treasurer Indicted

AFSCME logoOn May 6, Loretta Brown, former secretary-treasurer of American Federation of State, County and Municipal Employees Local 3491, was indicted in U.S. District Court for the Northern District of Indiana on two counts of embezzling $1,225 in funds from the Gary union. The indictment follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Treasurer of Independent Workers Local in Michigan Sentenced

On June 18, David Miller, formerly treasurer of Independent Workers Union Local 373, was sentenced in U.S. District Court for the Western District of Michigan to 13 months in prison and two years in supervised release for embezzling $50,501.99 from the Litchfield (Hillsdale County), Michigan union. He also will have to pay full restitution. Miller, 50, a resident of nearby Jonesville, had pleaded guilty in March. The local since has affiliated with the United Auto Workers. The plea and sentencing follow an investigation by the Labor Department's Office of Labor-Management Standards.

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