Attorney Challenges Feinstein’s Appointment

The appointment of former NLRB General Counsel Fred Feinstein as an associate general counsel, followed immediately by his appointment as acting general counsel, has raised issues of evasion of law. In documents filed Jul. 21 with the NLRB, attorney Robert W. Tollen charged that the rapid appointment was an unlawful maneuver to keep Feinstein in office. Tollen is defending Contractors’ Labor Pool, a construction company, against unfair labor practice charges brought by the Int’l. Brotherhood of Electrical Workers in Denver. Feinstein issued a complaint, but the company contends he had no authority because he was unlawfully appointed acting general counsel.

During his 4-year term that expired on Mar. 2, Feinstein tripled the use of injunctions against employers and took positions generally seen as advancing the agenda of big labor. On Mar. 5, Feinstein asked the White House not to renominate him because he didn’t want protracted fight. Two days earlier, … Read More ➡

NLRB Loses Attack on 1st Amendment

Excerpts from the Detroit News’ Aug. 4 editorial: “The U.S. Sixth Circuit Court of Appeals has just handed a stinging rebuke to the National Labor Relations Board for ignoring the First Amendment rights of the Midland Daily News . The federal appellate court…upheld a Detroit federal district court’s ruling quashing a subpoena to the mid- Michigan daily newspaper in the service of a speculative union complaint. The labor agency, which is supposed to be an impartial arbiter between unions and employers, had placed its subpoena power at the service of a union even when there was no definitive showing of a labor violation. In effect, it had turned itself into an agent of the union — and in so doing attempted to trample the First Amendment rights of the newspaper.

Two years ago, the Midland Daily News ran some anonymous ads seeking applications from electricians, with resumes to be sent … Read More ➡

Memphis AFSCME at War With Itself Over Counter Corruption Charges

Memphis’ American Federation of State, County & Municipal Employees Local 1733 bosses are locked in a bitter dispute over Executive Director Dorothy Crook. At Jul. 31 press conference, the Local Vice-President Johnny Dansberry said, “Members of the executive board…had received numerous complaints from members about [Crook’s] competency and ability to function as executive director… Questions were also raised about financial irregularities appearing in the books of the Local 1733.” The executive board voted in May to fire Crook.

Crook filed a grievance against the board contending she has been denied due process. Jeff A. Crow, Jr., hired by AFSCME to litigate the Crook case, said a grievance hearing likely will be scheduled this month. A court case pending in Shelby County Chancery Court is on hold pending the outcome of the union’s grievance procedure. Alfred Dowdy, a board member supporting Crook, filed the lawsuit last month against Local 1733 President … Read More ➡

2 Plead Guilty to AFSCME Embezzlement Scheme

Two union bosses of the American Fed. of State, County & Municipal Employees pled guilty Jul. 23 to embezzlement charges, admitting to stealing over $830,000 from union coffers. From 1991 to 1996, Thomas W. Waters and Barbara T. Wood embezzled funds while employees at AFSCME’s District Council 20 which represents 6,700 employees from the Washington, D.C. government, American Red Cross & Howard University Hospital. According to the U.S. Attorney’s Office, Waters opened a secret bank account in the union’s name and had dues checks deposited into the account. Then both used the unions members’ money for personal expenses. They also took money from another AFSCME account. Waters, Council 20’s secretary-treasurer, admitted taking more than $761,000 and faces a 3-year prison term. A U.S. District Court Judge ordered Waters jailed immediately after his guilty plea, saying he was a danger to the community. Wood, the finance director, admitted taking $73,500 and … Read More ➡

Rerun Election Funds Still Up in the Air

In the hour-by-hour saga over how the Teamsters’ rerun election will be funded, the latest twist on Jul. 23 came from Senate Appropriations Committee Chairman Ted Stevens (R-AK). Stevens, over Subcommittee Chairman Judd Gregg’s (R-NH) objections, endorsed a Justice Department proposal, called by some “the least lousy choice,” that has the taxpayers paying about half of the $8.6 million estimated rerun costs. This comes after the U.S. District Judge David N. Edelstein’s multiple deadlines for Justice to secure funding have passed, and after the Teamsters, emboldened by a favorable U.S. Appeals Court ruling, have said they will contribute no more than $1 million towards the rerun. If there is no resolution, Edelstein has no choice but to allow the Teamster to conduct an unsupervised election. This entire sad situation is due to Ron Carey’s 1996 campaign’s $538,100 money-laundering schemes. [BNA Daily Labor Report 07/24/98]

Libel Suit Against Teamsters ContinuesRead More ➡

UAW Settles Racial Harassment Suit for $75K

St. Louis United Auto Workers Local 25 agreed on Jul. 16 to settle a lawsuit brought by the Equal Employment Opportunity Commission for $75,000. The suit contended that the UAW failed to stop “severe and pervasive” harassment of 3 black General Motors supervisors by now-former union boss Robert Wilson in the period 1992-94. The EEOC’s statement called it a “landmark case” and said it was “the first to hold that a federal employment discrimination statute prohibits unions from allowing their officers to racially or sexually harass company managers.” [BNA Daily Labor Report 07/21/98]

Election Fraud Case Stays Secret
A KY judge rejected prosecutors’ bid on Jul. 13 to release secret grand-jury testimony about Gov. Paul Patton’s (D) 1995 campaign, the AFL-CIO and other union groups’ alleged effort to circumvent the spending limit candidates adopt in return for taxpayer financing under an ill-designed law limiting campaign contributions and free speech. … Read More ➡

Funding the WorldCom-MCI Foes?

On Jul. 15, the Justice Department approved WorldCom’s acquisition of MCI over the protests of rivals, unions and left-wing activists. The merger has one more regulatory hurdle: a “public interest review” by the Federal Communications Commission where an alliance of self-interested opponents will put up their strongest fight. In addition to the Communication Workers of America, the AFL-CIO’s John J. Sweeney, Jesse Jackson and Ralph Nader have entered the fray. And GTE, hoping to revive its own efforts to acquire MCI, has fought the merger. WorldCom & MCI are largely non-union companies. If this merger is overturned and GTE gets MCI, CWA stands to inherit a hefty amount of defenseless workers ripe for unionizing.

Evidence is growing that corporate dollars are supporting the union and left-wing activist’s PR battle. GTE’s PR firm Powell Tate, a D.C. firm which is also working with Nader on an anti-Microsoft campaign, held a Capitol … Read More ➡

Boss Gets 1 Year for Embezzlement

On Jul. 20, the U.S. District Court in Seattle sentenced Robert Kellas, former-president of Amalgamated Transit Union Local 843 in Bellingham, WA, to a year and a day in prison and ordered him to pay $78,248 in restitution on top of $70,000 already paid. He will also serve 3 years of supervised release after facing a maximum of 5 years in prison. On Apr. 23, Kellas pled guilty to embezzling between $70,000 and $120,000 from Local 843 and the ATU Legislative Council of Washington State. He was president of Local 843 from 1990-97 and secretary-treasurer of the Legislative Council from 1994-97. The U.S. Attorney’s Office said Kellas’ scheme was simply writing checks to himself from the 2 unions. [Seattle Times 04/24/98 & 07/21/98]

Union Corruption Studies Available
The Public Service Research Council just published 2 timely studies: “Fraud Prevalent in Prevailing Wage Surveys” & “The Case Against Public Sector … Read More ➡

Disgraced NHL Boss’ Restitution to go to Defrauded Players

Announced Jul. 16, the $1 million (Canadian) in restitution paid by the founder of the National Hockey League Players’ Association, R. Alan Eagleson, will be divided among 1,400 players harmed by his embezzlement schemes. On Jan. 6, the NHL union boss pled guilty in U.S. District Court in Boston to 3 counts of fraud and theft thereby avoiding prosecution on 32 counts which included stealing from players’ pension funds and insurance premiums, as well as cheating players out of disability money. The next day, he pled guilty in a Canadian court to 3 counts of fraud for skimming advertising money for tournaments and other hockey entities. On top of the restitution, he was sentenced to 18 months in prison in Canada, but was released Jul. 6 after serving only 6 months. [Boston Globe 01/06/98 & Toronto Star 07/17/98]… Read More ➡

Probe of CA Teachers Association Concludes

San Bernardino Co., CA District Attorney’s Office’s investigation into embezzlement schemes involving local teachers unions concluded on Jul. 8, when San Bernardino Co. Superior Court sentenced Nancy Hooper to 180 days of electronic surveillance. Hooper had pled guilty to 8 counts of grand theft embezzlement and 1 count of receiving stolen property. Hooper stole more than $36,000 from the Fontana Teachers Association’s checking account for her personal use. The former Fontana City Councilwoman was also ordered to pay $11,000 in restitution, which is on top of $22,000 already paid. She will also pay the $400 monthly surveillance cost.

This comes less than a month after a Rialto, CA teachers union official was sentenced to 28 months in prison for embezzling about $110,000 from the Rialto Educators Association and Citrus Belt UniServ which oversees several area teachers unions including Fontana Teachers Association. Mary Jane Bronson pleaded guilty to 2 counts of … Read More ➡