Charles Ensley, narrowly defeated in his campaign to become exec. dir. of the biggest govt. union in NYC, accused the victorious incumbent, Lillian Roberts, of “smears and untruths” in the campaign. Roberts got 53 pct. of the vote to Ensley’s 47 pct. in the Jan. 27 election of officers of Dist. Council 37, the troubled affiliate of the Amer. Fedtn. of State, County & Municipal Employees (AFSCME). A string of rigged votes on contracts and officers, and nearly $6 million in kickbacks and financial thefts, led to the conviction of more than 30 union officials in the late 90s.
Roberts was first elected to head DC 37 nearly 2 yrs. ago, after the city union was released from a trusteeship imposed by AFSCME. Since then, she has come under fire for a contract awarded to her nephew. Three days after the DC 37 exec. bd. … Read More ➡
Kevin J. O’Connor, U.S. Attny. for the Dist. of Conn. announced on Jan. 26 the indictment and arrest of Allen Cahill on charges of embezzling union funds and willfully failing to keep union records. The two-count indictment was filed by a Grand Jury sitting in New Haven on Oct. 7, 2003, but was kept sealed until Cahill was arrested.
According to that indictment, while he was President of Local 745 of the Paper, Allied-Industrial, Chem. and Energy Wrkrs. Union (PACE), Cahill embezzled, stole, and converted to his own use approximately $42,047 in union funds by using the union’s debit card to make cash withdrawals or to purchase items of a personal nature, by increasing his salary as union president without authorization, and by obtaining travel funds for trips he either never took or union trips on which he brought his family along with him. Cahill … Read More ➡
U.S. Dist. Judge Gladys Kessler (D.C., Clinton) upheld the U.S. Dept. of Labor’s improved disclosure forms required of the nation’s largest unions on Jan. 22. She delayed the implementation of the new LM-2 financial forms until July of this year, provided that the DOL makes available a fully tested version of its electronic reporting software at least ninety days before July. With this ruling, unions with over $250,000 in annual income will likely have to account for their use of union dues for political activities in the 2nd half of this election yr.
Late last yr., Kessler issued a preliminary injunction suspending the new forms for all of 2004. But on the 22nd, she ruled that when Congress enacted the Labor-Mgmt. Reporting & Disclosure Act (LMRDA) in 1959, it “gave the Secretary [of Labor] broad authority to require the filing of financial reports…[and] that Congress delegated … Read More ➡
In opening statements on Jan. 14, fed. prosecutors accused Charles Novak and other frmr. officials of Local 1 of the Intl. Union of Elevator Constructors of lining their pockets with the wages of no-show wrkrs. Novak’s trial on racketeering charges began on the 14th. “Workers got paid for being in bars, for doing whatever,” said Asst. U.S. Attny. Keir Dougall. From each no-show paycheck, Dougall said, a percentage went to Novak and more than 2 dozen other Local 1 bosses and members, while contractors received the rest as kickbacks.
Novak and 25 other bosses, members and associates were indicted on Feb. 7, 2002 on charges that they stole more than $6 million in fraudulent wages and benefits at more than 20 construction sites in the NYC area from 1989-2001. The charges center on the collective bargaining agreements (CBAs) entered into by most major N.Y.C. construction … Read More ➡
Allan Spates was indicted on Dec. 22 on charges that he embezzled $29,746 from the union he formerly served as president. He is also charged with falsifying the financial disclosure form he filed for the union with the U.S. Dept. of Labor. Spates was president of Local 5-1250 of the Paper, Allied-Industrial, Chemical and Energy Wrkrs. union (PACE) in Ravenna, Ohio. From at least Jan. 2000 through Oct. 2001, Spates allegedly pocketed members’ dues payments, used the Union’s debit card for personal purchases, made false claims of lost time for which the Union compensated him, and obtained unauthorized reimbursements from the Union.
In April 2002, Spates submitted the Union’s LM-3 financial disclosure form to the U.S. Dept. of Labor. He claimed to have been paid only $4,834 in 2001, when he allegedly had been paid substantially more. He also allegedly under-reported the Union’s receipts … Read More ➡
An investigator appointed by a fed. judge has concluded that officials of the state’s prison guards union have protected rogue guards, resulting in a code of silence where “good officers turn bad.” Special Master John Hagar released a 71-page report on Jan. 15 recommending criminal contempt charges against the frmr. head of the Calif. Dept. of Corrections, Edward Alameida, and an ex-chief deputy, Thomas Moore.
According to Hagar, the two quashed an investigation of guards at Pelican Bay State Prison on perjury charges, and then deceived Hagar. Alameida’s decision to end the internal probe reportedly came just days after a telephone call with the vice president of the Calif. Correctional Peace Officers Assn.
Last year, fed. officials turned over to the state evidence that at least 3 guards lied under oath about 2 other guards, Edward Powers and Jose Garcia, who were convicted of beating … Read More ➡
Manhattan D.A. Robert Morgenthau announced on Dec. 22 the arrest of Lloyd Clarke on charges of embezzling some $2.4 million from a local of Dist. Council 37. D.C. 37 has seen more than 30 frmr. officials convicted of embezzlement and vote fraud. Clarke worked for more than 20 yrs. As the treasurer of Local 375, the Civil Service Technical Guild. The guild is affiliated with Amer. Fedtn. Of State, County & Municipal Employees.
According to Morgenthau, Local 375 hired an outside auditor this past summer, who discovered that Clarke had “loaned” himself $500,000 from the union to start a real estate business that currently owns 11 apartment bldgs. worth $7 million. Later, Clarke allegedly stole $2.34 million from the Professional Employees’ Legal Service from July 1996 thru May of last yr. The Service is supposed to provide no-cost legal advice to union members … Read More ➡
Three women whose complaints of sexual harassment were instrumental in the firing of a union boss from his hospital job have reported getting threatening letters and phone calls, with 1 woman finding a mutilated rabbit in her front yard. Three other accusers were named in a federal lawsuit by the ex-Western State mental hospital mgr., Barrette “Bear” Green, claiming to have been the victim of racism. Green is also the frmr. head of Local 793 of the Wash. Fedtn. of Public Employees, which is affiliated with the Amer. Fedtn. Of State, County & Municipal Employees.
Therapist Kathleen Lizee accused Green of sexual harassment, and hospital managers of inaction, in a civil lawsuit that the state settled last year by agreeing to pay Lizee $896,000. A consultant hired by the state soon turned up reports of coerced sex and harassment by Green from more than a dozen … Read More ➡
U.S. Dist. Judge Gladys Kessler (D.C., Clinton), on New Year’s Eve, blocked the immediate implementation of the Bush Administration’s union financial disclosure reforms. Union bosses will now be able to spend membership dues, voluntary and compulsory, on election-year politics without having to account for it, which the new disclosure rules would force them to do.
This is not the first time Judge Kessler has sided with unions in a disclosure case. In Dec. 2001, she ruled that documents revealing links between the AFL-CIO and Democratic Party during the 1996 campaign must be kept secret. Kessler acknowledged that her opinion “ends a 25-year practice by the [Fed. Elect. Commn.] to make available to the public the full investigatory record pertaining to any complaint filed once the complaint is resolved.” Kessler said that she was “compelled by the plain wording” of the Fed. Elect. Campaign Act, which … Read More ➡
A Nat’l Labor Relations Bd. administrative law judge in Atlanta will hear testimony on Apr. 15 on Overnite Transportation Co.’s allegations that the Int’l Bhd. of Teamsters engaged in an illegal secondary boycott when union activists picketed a number of the freight company’s customers. The union engaged in numerous unlawful acts as part of its strategy of “ambulatory picketing” at sites where Overnite trucks were delivering or picking up goods from customers, says Overnite. The hearing comes 30 months after IBT members struck the Richmond, Va.-based carrier in what the union claimed was an unfair labor practice strike. The ongoing job action, which has been marked by a barrage of litigation before NLRB as well as in state and federal courts, appears no closer to settlement today than it did when it began in 1999.
The secondary boycott charges against IBT relate to a series of picketing incidents that occurred … Read More ➡