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.

Michigan Voters Reject Proposal 2; Thwart Public-Sector Union Power Grab

'Protect Our Jobs' placardLast Tuesday's elections on most fronts represented a major setback for advocates of limited government. Yet it did produce its successes, most significantly, in Michigan. Voters in that state, by an unofficial 58 to 42 percent margin, rejected an initiative to authorize public employee unions, with few exceptions, to override existing and future state and local laws that "abridge, impair or limit" union collective bargaining rights. The measure, called Proposal 2 or the ‘Protect Our Jobs Amendment' (POJA), would have amended the Michigan constitution to provide almost unlimited opportunities for union officials to file court challenges against what they see as unfavorable legislation.

Did Taxpayers Fund Obama Reelection Through Auto Bailout?

Obama and MarchionneIt is being suggested that President Obama's reelection was at least in part helped by the auto industry bailouts, or more accurately, the portrayal of the bailouts by the president and the media. It is therefore important to surmise that the precedent setting auto bankruptcy proceedings saw billions of taxpayer dollars used to not only help the industry, but to fund the reelection of the sitting president that orchestrated the process.

How Healthy is Auto Industry? - American Suzuki Goes Bankrupt

SuzukiNow that the election season is coming to an end, we may get a clearer picture in the near future as to just how "healthy" the auto industry really is. Another car company has just filed for bankruptcy as American Suzuki announced that it is filing for chapter 11 protection and will no longer be selling vehicles in America.

Kansas City, Mo. AFGE Local President Sentenced for Fraud

AFGE logoOn October 18, Kelley Dull, former president of American Federation of Government Employees Local 2904 and AFGE District Council 171, was sentenced in U.S. District Court for the Western District of Missouri to six months in prison and three years of supervised probation for wire fraud in the amount of $32,118.66. He also was ordered to pay full restitution and a $100 special assessment. Dull pled guilty in February. Local 2904 is based in Kansas City, Mo.; District Council 171 is based in Cleveland, Ohio. The guilty plea and sentencing follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

IATSE Exhibition Hall Boss In New York Pleads Guilty to Embezzlement

IATSE logoOn October 16, John McNamee Jr., president of International Alliance of Theatrical State Employees Local 829, pleaded guilty in U.S. District Court for the Southern District of New York to embezzling $150,000 from the New York City-based union. He had been indicted in February for making about $240,000 in unauthorized charges on union credit cards and concealing the thefts by filing false financial reports to the U.S. Department of Labor (DOL). The local represents exhibition workers at New York-area sports and entertainment events. This criminal case is separate from an active civil suit filed in March by DOL against trustees of Local 829 benefit plans alleging gross mismanagement in the millions of dollars. The indictment and guilty plea by McNamee in the criminal case follow a probe by DOL's Office of Labor-Management Standards.

New York Laborers Benefits Manager Melissa King Sentenced for $42 Million Ripoff

Sandhogs at workMelissa King is going to spend six years in prison. For union members, that can't be long enough. Their anger is understandable. King, formerly benefits consultant for Laborers International Union of North America Local 147, aka "the Sandhogs," received her sentence in Manhattan federal court on June 21 for embezzling $42 million from the local. Dozens of members of the New York City-based underground construction workers union were on hand for the occasion. It was the largest instance of one-person embezzlement in American organized labor history. Ms. King, who aspired to the life of a queen, was as adept at spending money as she was at stealing it. The main concern among rank and file now is how much of their scheduled retirement benefits they will see - assuming, that is, they can afford to retire.

VIDEO: Romney is Right About Jeep Production in China

NLPC Associate Fellow Mark Modica was a guest Wednesday night on Fox Business Network's Willis Report. Here's a transcript:

Ohio Machinists Local Secretary Sentenced for Embezzlement

On October 12, Rachel Lanham, former office secretary for International Association of Machinists Local Lodge 34, was sentenced in U.S. District Court for the Southern District of Ohio to six months of home confinement to be followed by three years of supervised probation for embezzling funds from the Columbus union. She also will have to make full restitution in the amount of $104,867.45 and pay a $100 special assessment. Lanham pled guilty in June. The guilty plea and sentencing follow an investigation by the Labor Department's Office of Labor-Management Standards.

AFSCME Local Secretary-Treasurer in Detroit Area Pleads Guilty

AFSCME logoOn October 10, Richard Ikerd, former secretary-treasurer of American Federation of State, County and Municipal Employees Local 2568, pleaded guilty in the Third Judicial Circuit Court of Wayne County, Michigan to one count of embezzlement in an amount of between $1,000 and $20,000 from the Melvindale, Mich. union. He had been charged in July. Sentencing is scheduled for January. The actions follow a probe by the Labor Department's Office of Labor-Management Standards.

Treasurer of NTEU Local in Atlanta Sentenced for Fraud

NTEU logoAs a union crook, Rebecca Mercer thought big - bigger, at least, than initially had been suspected. On October 3, Mercer, former treasurer of National Treasury Employees Union (NTEU) Chapter 284, was sentenced in U.S. District Court for the Northern District of Georgia to one year and one month in prison, to be followed by three years of supervised release, for wire fraud against the Atlanta-based union. She also was ordered to pay $52,822.22 in restitution and a $600 special assessment. When charged last September, the theft was reported as $4,403.11. Mercer pleaded guilty this June to stealing the higher amount.

AUTO BAILOUT BOMBSHELL: Fiat Says Chrysler, Jeep Production May Move to Italy

Obama Marchionne photoComing hot on the heels of speculation that some Jeep production may be moved to China comes a bombshell from a Bloomberg report. Fiat is now considering moving Chrysler and Jeep production to Italy.

According to the piece, "To counter the severe slump in European sales, (Fiat CEO Sergio) Marchionne is considering building Chrysler models in Italy, including Jeeps, for export to North America. The Italian government is evaluating tax rebates on export goods to help Fiat. Marchionne may announce details of his plan as soon as Oct. 30, the people said."

Texas IBEW Business Manager Sentenced for Embezzlement

Electrical Workers logoOn October 3, Andrew Irwin, former business manager-financial secretary of International Brotherhood of Electrical Workers Local 72, was sentenced in U.S. District Court for the Western District of Texas to 10 months of incarceration and three years of supervised release for embezzling funds from the Waco-based union. He also was ordered to pay $27,321.63 in restitution, a $500 fine and a $100 special assessment. Irwin was charged in May with embezzling $47,096 and pleaded guilty in June. The actions follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

UAW Local Financial Secretary in Detroit Pleads Guilty

UAW logoOn October 3, Joya Mills, former financial secretary of United Auto Workers Local 2500, pleaded guilty in U.S. District Court for the Eastern District of Michigan to one count of failure to maintain records of the Detroit union. The guilty plea follows an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Philadelphia Carpenters Local Business Agent Sentenced for Theft

Carpenters logoOn October 2, Victor Rovani III, former business representative for United Brotherhood of Carpenters and Joiners Local 454, was sentenced in U.S. District Court for the Eastern District of Pennsylvania to three years of probation, including one year of home confinement, for embezzling funds from the Philadelphia union in the amount of $8,322. He also was ordered to pay a $3,000 fine to be paid in $100 monthly installments and a special assessment of $300. Rovani previously had paid restitution. He pled guilty in April. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Business Manager of Houston Operating Engineers Local Sentenced

Operating EngineersOn October 1, Ronald Witt, former business manager of International Union of Operating Engineers Local 450, was sentenced in U.S. District Court for the Southern District of Texas to one year and a day in prison, and three years of supervised release, for embezzlement from the Houston union. He also was ordered to pay $198,333.10 in restitution and a $100 special assessment. Witt, along with his wife, Anita, had been arrested and indicted in July 2011 for stealing more than $150,000 from the local's general and job training funds. He pleaded guilty this January. The actions follow a joint probe by the Labor Department's Office of Labor-Management Standards and Employee Benefits Security Administration.

AFGE Secretary in New Mexico Sentenced for Embezzlement

AFGE logoOn September 27, Graciela Jiminez, secretary-treasurer of Local 2263 of the American Federation of Government Employees, was sentenced in U.S. District Court for the District of New Mexico to three years of probation and ordered to pay $7,919 in restitution plus a $25 assessment for embezzling funds from the Albuquerque-based union. Jimenez pled guilty in June. The guilty plea and sentencing follow a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Boston-Area Machinists Secretary-Treasurer Charged with Theft

On September 24, Robert Hill, former secretary-treasurer of International Association of Machinists and Aerospace Workers Local Lodge 1271, was charged in U.S. District Court for the District of Massachusetts with embezzling $8,650 from the Billerica union. The charge follows a probe by the U.S. Labor Department's Office of Labor-Management Standards.

Machinists Local Secretary-Treasurer in Michigan Sentenced

On September 20, Renita Dompier, former secretary-treasurer of International Association of Machinists and Aerospace Workers Local 283, was sentenced in U.S. District Court for the Western District of Michigan to one year of probation for embezzling funds from the Baraga, Mich.-based union. She also was ordered to pay restitution in the amount of $11,793.89 and a $100 special assessment. Dompier had been indicted in March for stealing $8,725.99, and pleaded guilty in May. The actions follow an investigation by the U.S. Labor Department's Office of Labor-Management Standards.

Michigan Initiative Would Give Public Employee Unions Veto Power Over Legislation

Michigan teacher payIt's known formally as ‘Proposal 2' and informally as the ‘Protect Our Jobs Amendment,' or POJA. However phrased, it describes a Michigan voter initiative this November that would trigger a union power grab that is unprecedented in any state. The measure seeks to amend the state constitution to grant government employee unions the authority, with few exceptions, to invalidate existing and future laws that "abridge, impair or limit" collective bargaining rights. Organized labor effectively would obtain pocket veto authority, via the courts, over elected state and local representatives.

Obama’s GM Bailout Nothing to Brag About

Obama debate photoAs the presidential election nears we continue to hear about what a great job the Obama Administration did "saving" General Motors. The claims are that millions of jobs were saved and Mitt Romney wanted to let Detroit go bankrupt. A review of the facts reveals that the auto bailout process that cost taxpayers billions of dollars is hardly anything to brag about.

When President Obama says he "saved" GM, what he means is that his administration guided a bankruptcy process for the company, funded with taxpayer dollars. The repeated statements by Obama that Romney would have let the company go bankrupt are deceptive. Let's be clear, GM DID go bankrupt.

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