Federal prosecutors in Boston and Chicago announced today that George Philipps, president of a N.Y. investment consulting firm, Pension Fund Evaluations, Inc., was charged Dec. 18 in a one count information with paying illegal kickbacks to William Close, ex- trustee of the pension funds of Int’l Bhd. of Teamsters Local 710 and Int’l Ass’n of Machinists Local 701 (a.k.a., the Auto. Mechanics Union), both of Chicago. Allegedly, from about Mar.-Nov. 1997, Philipps paid kickbacks to Close in exchange for Close directing that trades of assets of the two pension funds be executed through PFE’s clearing brokers. PFE in turn had agreements with the brokers that PFE would receive 70% of commissions earned on the trades. Close previously pled guilty to racketeering charges arising out of his receipt of illegal kickbacks, and is awaiting sentencing. [USAO D. Mass. 12/18/01]
Illinois Bosses Charged with Theft
On Dec. 12 in Winnebago County (Ill.) Court, Todd Mosley and Laura Reilly, ex-business agent and recording secretary, respectively, of Int’l Alliance of Theatrical Stage Emp. & Picture Operators Local 217 in Rockford were indicted for felony theft. Mosley allegedly stole some $3,126 from the local and Reilly $1,522. [DOL 12/12/01]
Clinton-Appointee Strikes Down Bush’s Beck Executive Order
On Jan. 2, U.S. Dist. Judge Henry H. Kennedy, Jr. (D.D.C., Clinton) struck down President Bush’s Executive Order 13201 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. He ruled that the order, which took effect Apr. 18, is preempted by the Nat’l Labor Relations Act. He granted summary judgment for several union entities, including UAW, and issued a permanent injunction barring implementation and enforcement of the order. “We’re disappointed, but we will appeal the ruling on behalf of workers who deserve to be informed of their rights,” said Dep’t of Labor spokeswoman Sue Hensley. [BNA 1/7/01]
Road Map to the Oklahoma Victory
Would you like to emulate the Sept. 25 victory in Okla. and enact a Right-to-Work law in your state? Well, one of your first steps should be to read a recent account by the Free Congress Fdn.’s Connie Marshner which details how Mark Nuttle, the pro-Right-to-Work coalition’s campaign manager in Okla., and others organized a highly successful grassroots effort. This effort won the much needed right-to-work referendum making Okla. the twenty-second Right-to-Work State. The article is at http://www.freecongress.org/press/offpress/2001/011214CMfcc.htm.