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.

Indicted Boston Boss Resigns from Board of State Agency

Recently indicted Teamsters boss George W. Cashman abandoned his plum Mass. Port Auth. Bd. post Jan. 22, sparing acting Gov. Jane Swift (R) from embarrassing political standoff. Cashman, a Democrat and an ally to the last three Republican governors, fired off a terse resignation letter just ten minutes before Swift promised he'd be suspended from MPA Bd., the agency that operates Logan Int'l Airport where two planes that terrorists used to destroy the World Trade Ctr. originated. Eager to fend off an appearance of guilt, the president of the Charlestown-based Int'l Bhd. of Teamsters Local 25, promised to beat the "unfounded" federal indictment. Federal prosecutors charged Cashman Jan. 16 along with three others in a 179-count indictment alleging a scheme to illegally give union health benefits to 19 non-union workers.

DOL Sues Dallas Local over Tainted Election

The Dep't of Labor filed suit Jan. 18 in U.S. Dist. Court for the N. Dist. of Texas against the Am. Postal Workers Union Local 732 of Dallas. The suit resulted from an DOL probe of the local's May 19, 2001 mail ballot officer and delegate election. DOL found that the local denied eligible members the right to vote, in that the local failed to mail ballots to all eligible members, and failed to count all ballots that had been returned by eligible members to the post office prior to the deadline. DOL also found that the local improperly permitted ineligible members to vote in violation of the union constitution and bylaws. The suit seeks  new election for 11 officer and 39 delegate positions under DOL supervision. [DOL 1/18/02]

Three Employees Join Suit to Save Oklahoma Right-to-Work Law

Enjoying free legal aid from the Nat'l Right to Work Legal Def. Fdn., employees from three different  Okla. companies filed formally Jan. 22 in U.S. Dist. Court for the E. Dist. of Okla. to join Okla. Gov. Frank Keating (R) in defending Okla.'s new Right-to-Work constitutional amendment  against multi-union attack.  The employees argue that if the unions prevail in voiding the statewide ban on forced unionism they will suffer direct financial harm as well as damage to  their interests of free speech and free association.

The Okla. AFL-CIO, six local unions, and a heavily unionized company filed the suit in Nov. to overturn the will of Oklahomans in enacting State Question 695 on Sept. 25. The Right-to-Work constitutional amendment bans the widespread union practice of forcing workers to join an unwanted union or pay any union dues as a condition of employment. Okla. is the newest of Am.'s 22  Right-to-Work states.

DOL Pushes for Electronic LM Filing

The Dep't of Labor is urging unions to electronically file the financial forms required under the Landrum-Griffin Act (a.k.a., Labor-Management Reporting & Disclosure Act of 1959). The Office of Labor-Management Standards will enclose copies of a compact disc containing the forms with the traditional paper forms sent to labor unions at the end of their fiscal year, Don Todd, a deputy assistant secretary of OLMS, said Jan. 23. "The software will bring required reporting into the 21st century and should save unions valuable time and enhance the accuracy of their financial reports," he said.

NLRB Reopens Excessive Union Fine Case

Persuaded by Nat'l Right to Work Legal Def. Fdn. attorneys, the General Counsel of the Nat'l Labor Relations Bd. has ordered its investigators to reconsider their dismissal of unfair labor practice charges filed by actor Barry Williams against the Actors Equity Ass'n (AEA).  The former "Brady Bunch" star faces confiscatory union fines for exercising his right to work on a non-union production.

NLRB General Counsel Arthur Rosenfeld remanded the case back to the N.Y. Reg'l Office because it dismissed Williams' June 2001 charges without conducting an adequate investigation. Inexplicably, the N.Y. office investigators had refused to interview key witnesses and collect key evidence. NRWLDF argued that the $30,000 fine levied against Williams for exercising his right to  work in a production that did not force employees to work under union contract is excessive and without justification, since Williams was not a voluntary  member of the union.

AFL-CIO, Eleven Railroad Unions Sue to Stop Congressional Report on Amtrak

The AFL-CIO and eleven railroad-related unions filed suit Jan. 22 for an injunction to prevent a congressionally appointed panel, called the Amtrak Reform Council, from delivering its report  to Congress. In 2001, with Amtrak asking for another $3.2 billion to cope with increased business, ARC decided Amtrak wasn't going to make it. ARC was required to propose changes after declaring that Amtrak wouldn't meet a statutory Dec. 2002 self-sufficiency deadline. ARC voted Jan. 11 eight to one to recommend an end to Amtrak as we know it.  ARC's plan, a final version of which is due before Congress on Feb. 7, is likely to recommend opening America's entire intercity rail system to private competition and the divestiture of Amtrak's tracks and other infrastructure.  The suit filed in U.S. Dist. Court in Washington, D.C. alleged that ARC acted in "excess of its authority" with its recommendations. ARC "has long pursued an ideological agenda to dismember and then sell off Amtrak to private interests," Mark Filipovic, chairman of the union's Rail Labor Division.

Two Longshoremen Found Guilty of Drug Trafficking at the Port of Miami

On Jan. 11,  a federal jury in Miami convicted Charles Thomas and Darryl Bell of attempting to possess with intent to distribute 100 kilograms of cocaine after a four-day trial before U.S. Dist. Judge Federico A. Moreno (S.D. Fla., H.W. Bush). At the time of arrest, both were members of the Int'l Longshoremen Ass'n. Thomas and Bell face a statutory maximum penalty of life imprisonment. Sentencings are scheduled for Mar. 22, 2002, commencing at 9:00 a.m. before Moreno.  Previously on Oct. 26, co-defendant, Joseph Cobb, pled guilty to drug charges and was sentenced by Moreno on Jan. 9 to 46 months in prison.

Couple Pleads Guilty to Defrauding DOL of $300,000

Siria M. Toala of Daytona Beach, Fla., pled guilty Dec. 5 to one count of aiding and abetting the theft of government property. Toala's husband, Ricardo Perez, also pleaded guilty to a one count information charging him with aiding and abetting the making of false claims. The violations occurred between July 1999 and Mar. 2000.

Boston Boss Faces Embezzlement and Bribery Charges

George W. Cashman, president of Int'l Bhd. of Teamsters Local 25 in Charlestown, Mass.,  along with four other individuals and three firms were indicted Jan. 16 on 179 counts of embezzlement and bribery. Allegedly, 19 non-employees were ordered or placed on the firms' payrolls in order to allow the non-employees to receive health benefits from Local 25's Health Services & Insurance Plan to which they were not entitled. Asst. U.S. Atty. Fred Wyshak said the defendants robbed the fund of benefits belonging to qualified members: "The loss is to the fund that has to pay benefits it normally would not have to pay."

Disilva Transp., Inc., Hutchinson Indus., Inc., and Manfi Leasing Corp., run by brothers Thomas A. and James P. Disilva and their brother-in-law William P. Belanger, filed false documents for the bogus employees from 1992-2001 thereby costing Local 25's HSIP $72,000 in wrongful health benefits.  Also, two non-employees were allegedly placed on the firms' payrolls in order to be eligible for pension benefits from the New England Teamsters & Trucking Indus. Pension Fund, which covers several IBT locals.

New York Local Raided in Racketeering Probe

N.Y. prosecutors have reportedly launched a racketeering probe of a Queens local whose members run the cranes and other earth-moving equipment at site of the World Trade Ctr. massacre. The N.Y. State Organized Crime Task Force agents turned up at Int'l Union of Operating Eng'rs Local 14's offices on Jan. 8 and carted off documents and payroll records. The raid was the first action taken in a new probe into reports that mid-level union bosses allegedly doled out no-show jobs, shook down contractors, and engaged in other traditional labor racketeering crimes. Local 14's offices were shut down for more than an hour as agents loaded records into a van. One boss who asked agents for a search warrant was reportedly put up against a wall and frisked. Seized documents reportedly included bank, pension, and annuity fund records. [N.Y. Post 1/13/02]

Massachusetts Local Settles Election Suit

Int'l Bhd. of Elec. Workers Local 1505 in Waltham, Mass., has entered into a consent judgment providing for Dep't of Labor supervision of the next election of Local 1505's officers on June 11, 2002. The Jan. 3 agreement settled a suit that the Dep't of Justice, on behalf of DOL, brought against Local 1505 in July 2000 alleging that the last election of officers held in June 1999, was unfair and in violation of the Landrum-Griffin Act. The civil suit alleged that Local 1505 failed to hold its election of officers by secret ballot and, in the conduct of its election, used union funds to prepare and distribute a union letter that promoted the candidacy of the incumbent Financial Secretary/Business Manager. The parties will meet no later than Apr. 12 to establish ground rules for the new election. The court will retain jurisdiction and DOL will certify names of the election winners to the court.

Union Watchdog Ask President to Appeal Ruling Striking Down Beck Executive Order

As reported in the last UCU issue, U.S. Dist. Judge Henry H. Kennedy, Jr. (D.D.C., Clinton) struck down President Bush's Executive Order 13201 Jan. requiring fed. contractors to post notices informing employees of their rights not to join a union or to pay fees for nonrepresentational purpose, under the Supreme Court's 1988 decision, CWA v. Beck. The Nat'l Legal & Pol'y Ctr. was written President Bush requesting that he and his Administration appeal Kennedy's adverse ruling.  

DOJ Agrees to End Auditor's Oversight of Corruption Plagued Union

Oversight of the Int'l Bhd. of Teamsters' financial affairs by an outside auditor will end later this month as the result of an order signed Dec. 20 by U.S. Dist. Judge Loretta A. Preska (S.D.N.Y., H.W. Bush), who has ongoing oversight of the consent decree that in 1989 settled the racketeering suit against IBT. On Jan. 10, IBT said an agreement had been reached with the Dep't of Justice to eliminate the independent financial auditor (IFA) first put in place in 1997 following discovery of the illegal money laundering schemes that help finance the re-election of then-president Ron Carey. Federal officials said at the time that lack of adequate internal union controls enabled Carey operatives to siphon off union funds for his reelection and "were an invitation to improper and illegal conduct."

Native American Reservations Win Case Permitting Right to Work Laws

In a precedent-setting 9-1 ruling, the U.S. Court of Appeals for the Tenth Circuit has upheld the sovereign right of Native American reservations to pass Right to Work laws to protect workers from being forced to pay union dues.  The ruling announced today advances the Nat'l Right to Work Legal Def. Fdn.'s battle to protect Right to Work laws around the country. The decision affirms that the 300 Native American reservations across America may pass Right to Work laws to limit forced unionism. Attracted to growing economies, union organizers have made increasing efforts in recent years to unionize companies on reservations. This ruling clears the path for tribal governments to act without interference from the federal government.

"Not only is this a tremendous victory for Native American workers and reservations around the country, but also for the Right to Work movement," said Stefan Gleason, Vice President of NRTWLDF, which provided free legal aid to the Pueblo in the case. "In addition to preserving individual rights, Right to Work laws will help to bring new business and economic growth to these long-impoverished regions."

New York Post Uncovers New Details from Union Corruption Probe

An elevator mechanic's little black book is helping federal prosecutors blow the lid off a multimillion-dollar scam in which corrupt members of a powerful mob-tainted N.Y.C. union lined their pockets through no-show jobs. The well-worn, leather-bound book contains the home and cellular phone numbers of key union members who are thought to be masterminds of the scam. Some contact numbers belong to union members with blood ties to a Gambino crime family capo.Two entries in the book list the locations and numbers for pay telephones - a preferred method of communication for those concerned about police phone taps. The pages also feature handwritten lists of major construction sites around the city and the names of union workers assigned to them - including some workers already busted in the no-show job scam.

NLRB Brings Charges Against Youngstown Local

In response to charges brought by hospital employees at St. Elizabeth Health Ctr. in  Youngstown, Ohio, the Gen. Counsel of the Nat'l Labor Relations Bd. filed a formal complaint Jan. 15 against Int'l Bhd. of Teamsters Local 377 for unfair labor practices. The workers, with the assistance of Nat'l Right to Work Fdn. Legal Def. Fdn. attorneys, filed federal charges in 2001 against the the local for refusing to accept their resignations and for failing to properly notify them of their right to refrain from paying dues to subsidize union political activities.

"Teamsters officials must now answer for their systematic shaking down of employees," said Stefan Gleason, Vice President of the NRTWLDF. "Hopefully, this is a signal that the Bush NLRB plans to stand up for union-abused workers."

Guild's Leadership in Disarray from Tainted Election

The Screen Actors Guild is in disarray. SAG's elections committee astounded Hollywood on Jan. 7 by setting aside Melissa Gilbert's Nov. 2 victory as SAG president, along with wins by Elliott Gould for secretary and Kent McCord for treasurer. The five-member committee, headed by Fred Savage, set a rerun and blasted SAG staff and Sequoia Voting Systems, which conducted the election which was tainted by misconduct that may have affected the outcome.   The two main reasons put forth by the committee in their decision was the deletion from the ballot package sent to New York branch members of a member signature line and instructions to sign the return ballot envelope which violated the SAG constitution  as well as two extra days allotted to New York branch voters to return their ballots.

Trusteeship to End at New York City's Corrupt District Council 37

After a three-year trusteeship aimed at rooting out widespread corruption, Am. Fed'n of State, County & Mun. Employees Dist. Council 37, NYC's giant municipal union, will again be allowed to run its own affairs beginning this spring, union bosses said Jan. 9. DC37 bosses said officials from their parent union had indicated that the trusteeship would be over by the end of Mar. 2002 and an election held that same month. The union has been rocked by a scandal in which more than 20 officials were convicted of embezzlement and other crimes. The presidents of two of the council's 56 union locals were convicted of stealing more than $1 million. Several council officials were convicted of stuffing the ballot box in 1996 to ensure approval of an unpopular contract with a two-year wage freeze. [N.Y. Times 1/10/02]

EEOC: California Union Engaged in Religious Discrimination

On Jan. 4, the Equal Employment Opportunity Comm'n found reason to believe the Cal. Faculty Ass'n discriminated against Cal.  State Univ. Prof. Charles Baird by  refusing to accommodate his sincere religious objections to joining or paying compulsory agency fees  to the union. The EEOC judged the CFA's actions to be in direct violation of Title VII of the  1964 Civil Right Act after hearing arguments from attorneys with the Nat'l Right to Work Legal  Def. Fdn. "This ruling reaffirms that Big Labor cannot trample on someone's religious freedom," said Stefan Gleason, NRTWLDF vice president. "The CFA claims to stand up for  the rights of employees, but this case shows that it only wants to stand for forced unionism."

SEIU Teams Up With ACLU to Overturn Federal Baggage-Screen Law

The Am. Civil Liberties Union and the Service Employees Int'l Union filed a suit Jan. 17 challenging the citizenship requirement for airport baggage screeners in the recently enacted Aviation & Transp. Security Act, which requires virtually all airport baggage screeners to be federal employees within one year. Applicants must be United States citizens to qualify for those federal jobs.  In addition to the suit, ACLU and SEIU are calling on Congress to remove the citizenship requirement from the statute. Sen. Dianne Feinstein (D-Cal.) has introduced a bill (S. 1829) to allow permanent foreign residents to be eligible for federal screener jobs if they are in the process of becoming U.S. citizens. However, a spokesman for SEIU told BNA that while the union supports Feinstein's measure, the bill would affect less than 10% of the legal immigrants who hold baggage screening positions.

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