State AFL-CIO President John Olsen and 13 other fund trustees agreed on Jun. 10 to pay more than $2 million in restitution and another $416,000 in civil penalties. The Labor Department sued Olsen and other trustees of the CT Plumbers & Pipefitters pension fund over investments the department said were risky and led to losses of $2-3 million.
Olsen will be able to continue serving as a financial guardian of union pension funds under the terms of a settlement. The money will be paid by an insurance policy, not the trustees themselves.
In the original lawsuit, the department had asked that Olsen and the other trustees be permanently barred from serving as financial guardians to employee benefit plans. The settlement includes no such prohibition, although it does require the trustees to carefully evaluate potential risks. [Hartford Courant 06/11/98]
Longshoreman Pleads Guilty
A union dockworker pleaded guilty Jun. 12 for … Read More ➡
Despite a LIUNA nurse and hospital technicians strike that threaten patient health and radical leaflet propaganda, the Tenet Corporation which owns San Francisco’s Redding Medical Center was able to keep the center an “open shop.” LIUNA went on strike Jun. 4, but a federal mediator got them back to the table the next day. On Jun. 23, the union relented and although the hospital made concessions, it remains an open shop which means union membership will not be a condition of employment. [BNA Daily Labor Report 06/25/98 & Providence Journal-Bulletin 06/05/98]
Trumka & Co. Incite Radicalism
Jun. 24 was the AFL-CIO’s “Day to Make Our Voices Heard” which is the latest AFL-CIO P.R. stunt designed to incite radicalism in union members. Small protests in allegedly 70 cities were held across the country. As part of the festivities, registered nurses in Vancouver, WA left a medical center understaffed. Longshoremen shut down … Read More ➡
On Jun. 19, Communications Workers of America opened new battle to block merger of WorldCom & MCI, saying in detailed analysis that deal would deprive the companies of access to capital and cut, rather than expand, local competition. CWA filed a statement with the FCC complaining the merger is anti-competitive, and in its latest disclosure its “union economist” claims the merger fails tests set by FCC. CWA’s action came the same day that European antitrust authorities moved close to approving the transaction. Analysts strongly believe, despite the best attempts of union radicals, the merger will go through. [Communications Daily 06/22/98]
Newspaper Workers Break from CWA
Employees of the San Diego Union-Tribune voted Jun. 11 to decertify Newspaper Guild Local 95 of CWA as their bargaining agent. In an NLRB-monitored election, 406 workers voted against continued representation by the Guild while 378 voted to keep the union. Some 844 employees in … Read More ➡
Due to the campaign money-laundering scandal which funneled at least $538,100 into the disgraced Carey reelection campaign, Teamsters will vote this fall for a new president. On Jun. 3, U.S. District Judge David Edelstein set Oct. 14 as the date for the mail-in ballots to be tallied. The Court has already disqualified Carey from the rerun. Likely candidates for president are James P. Hoffa, Carey’s 1996 opponent, and Tom Leedham who has the support of the influential liberal-activist group, Teamsters for a Democratic Union, as well as many other Carey supporters.
Related news: Rep. Peter Hoekstra (R-MI), chairman of the House committee looking into Teamsters corruption, told the Detroit News on Jun. 9, “I don’t want the election to go forward with the conditions that exist today. I just don’t know how you can run an honest election in this environment.” His concerns are a reminder of the $20 million … Read More ➡
Business Week [06/15/98] reported that top DNC/Clinton-Gore fundraiser Terrence McAuliffe’s conversations with 2 Democratic party staffers about a possible swap scheme with the Teamsters during the 1996 election are now “the focus of a federal grand jury in Manhattan that is investigating whether Democratic fundraisers conspired to find donors for Carey’s campaign in hopes of getting back hefty union contributions.”
Business Week also said sources “close to the investigation said the U.S. Attorney is interested in whether [an AFL-CIO] credit-card deal played a role in the swap schemes.” McAuliffe and Carey campaign consultant Martin Davis, who plead guilty to charges of conspiracy, mail fraud, embezzlement and making false statements to the court-appointed Teamsters election officer, were both under contract to “lobby the AFL-CIO Executive Council to switch its union credit card program” to Household International bank.
In a Jun. 3 ruling, Judge Edelstein rejected a Carey appeal of his disqualification … Read More ➡
6 Teamsters were arrested in connection with a 14-man crime-ring that was stealing and reselling electronic equipment, clothing and jewelry in N.Y. Each faces up to 10 years in prison. Many of the stolen items were sold to an undercover FBI agent in 67 transactions according to U.S. District Court records. The 6 were UPS drivers. UPS notified the FBI that it had suspected criminal activity. [A.P. 06/11/98]
Violent Teamsters Shut Down CA Port
The Port of Hueneme, near L.A., was shut down on Jun. 1 due to a violent Teamsters strike sparked by a dispute over 2 forklift workers’ salaries. The reportedly illegal strike idled hundreds of workers and stranded 3 cargo-laden ships.
Police were present to stop Teamsters’ violence against Longshoremen wishing to cross the picket line. All 250 members of the International Longshoremen’s & Warehousemen’s Union honored the picket line until an arbitrator ruled that the strike … Read More ➡
Rep. Harris W. Fawell (R-IL), chairman of a House subcommittee examining union abuses against members, sent letter to Laborers Int’l. Union of North America president Arthur A. Coia, warning him against acts of retaliation against individuals testifying before the committee.
Coia as long-been suspected of being under the influence of organized crime. In 1997, LIUNA’s in-house prosecutor filed charges against Coia for knowingly associating with organized crime and permitting organized crime to influence LIUNA affairs.
“We can not, and will not, tolerate any retaliation against any witness and we will take every step necessary and possible to protect them,” wrote Fawell in the May 27 letter. Stephen Manos, vice-president LIUNA Local 230 in Hartford, told the committee his Congressional testimony has “further exacerbated” acts of harassment, intimidation and retaliation against him, including a recent complaint filed in U.S. District Court by Local 230’s business manager Charles LeConche accusing him of … Read More ➡
LIUNA’s in-house prosecutor Robert D. Luskin, who is responsible for the integrity of LIUNA’s “internal reform effort,” admitted to being paid about $4 million from LIUNA since Nov. 1994 in the Jun. 7 Washington Post . It’s a rare public account of what LIUNA has paid to Luskin and his 11-lawyer firm.
$4 million over 44 months (11/94 to 06/98) equals $90,909 a month, or… $1,090,909 a year… $20,979 a week… $4,196 a day…$524 a hour (at 40 hours a week)… $8.74 a minute… all thanks to the mandatory unions dues of LIUNA members. Note too that LIUNA is not Luskin’s only client.
Laborers Fired Over Pay Questions
On May 29, the Greater Orlando Aviation Authority upheld the firings of 2 LIUNA electricians at Orlando’s airport for reportedly falsifying payroll records. The records in question show the 2 collected $34,000 for over 1,500 hours of allegedly bogus overtime. LIUNA Local … Read More ➡
According to Rep. Hoekstra’s subcommittee, the bosses of the Union of Needletrades, Industrial & Textile Employees are profiting from their members job losses due to a special industry proviso in federal labor law.
The May 27 report states UNITE receives “liquated damages” from companies for contract breaches which include relocating production overseas. UNITE treats the payments as its own since no explicit obligation exists to distribute the money to its members.
“So as contracts leave the country and UNITE’s members lose their jobs, UNITE itself continues to receive ‘a piece of the action’… Over the past few decades garment unions have lost more than half of their membership to overseas competition. Yet during that same time, UNITE and its predecessors became the richest of all unions, as measured on an assets per member basis. UNITE not only on owns the Amalgamated Bank of New York, but also owns much prime … Read More ➡