SEIU Sues Cleveland

From a Crain’s Cleveland Business editorial [07/06/98]: “It’s hard to fathom why, after all the months of legal wrangling over the Cleveland mayor taking control of the city’s public schools, why the local NAACP chapter and a union would again file suit to block the move. Last week, lawyers for the NAACP and for the Service Employees International Union filed suit in federal court seeking to delay a law that allows Mayor White to appoint a 9-member school board and a chief executive to run the long-troubled school system. Their logic, apparently, is that since U.S. District Judge George White’s Mar. 6 ruling that such a move is constitutional is being appealed, then the takeover by the mayor should be delayed during the appeals process. I hope the judge denies the request. There has been more than enough foot dragging on this issue, and much of it seems to come … Read More ➡

Election Monitor Tries to Blackmail Congress

Michael G. Cherkasky, the court-appointed Teamsters election monitor sent a strongly-worded letter to U.S. District Judge David N. Edelstein on Jun. 24 threatening to end all federal supervision of the election unless the court can resolve a standoff over election funding. Cherkasky’s threats come on the heals of a major setback for taxpayers in which the U.S. Court of Appeals for the 2nd Circuit refused to reconsider its Mar. 30 ruling that forces taxpayers to fund the upcoming rerun election.

Congress, led by Rep. Peter Hoekstra (R-MI), passed legislation barring taxpayer funding of the rerun election because the nearly $20 million 1996 election was a disgrace and Congress is unconvinced that adequate safeguards are in place to prevent another corrupted election. The Justice Department, under Congressional pressure, has argued that the Teamsters should pay for the election. Cherkasky’s costs for the rerun is now estimated at $8.6 million which is … Read More ➡

Cherkasky’s Other Job Going Well

Cherkasky doesn’t only work for the government monitoring the Teamsters. He has remained the President & Chief Operating Officer of Kroll Associates which is part of the Kroll-O’Gara Company (NASDAQ: KROG), a worldwide private investigator & security firm based in N.Y. On Jun. 18, Cherkasky spent the day in Toronto closing a $16 million deal on Kroll’s latest acquisition of a Canadian forensic accounting firm. “It’s hard to beat them so we had to buy them… We can expand very rapidly across the world,” Cherkasky boasted to the Toronto media. The merger builds Kroll’s presence to 40 cities in 16 counties. Apparently, Cherkasky doesn’t have his hands full because he said he is looking to further expand his Moscow office’s work against burgeoning crime syndicates in Russia. [Toronto Star 06/18/98]
 
UP SHOT: How does Cherkasky have time to run his multi-million dollar business and still ensure the upcoming Teamsters … Read More ➡

The GM Strikes: An Eye-Opening Perspective

From Investor’s Business Daily’s editorial [06/22/98]: “It takes a lot of effort to put on a strike. Bodies are needed for the picket lines from dawn ’til after dusk. Somebody has to work the telephones. And the media message must be honed. That’s almost as much coordinated work as it takes to build cars. So we want to know: Why don’t members of the United Auto Workers direct their energy to making a superior product, instead of striking General Motors. There are many reasons, but one big one is that the union bosses wouldn’t like it. Workers would learn that they don’t need the union. They could earn high wages by simply turning out a car that buyers prefer…

The Flint stamping facility is at the bottom of the barrel when it comes to productivity. It has about half the output per hour worked of similar GM facilities. And the … Read More ➡

Violence Ravages Puerto Rico

Protesters planted bombs, smashed bank machines and severed and burned phone cables on Jun. 25, reacting with fury to the privatization of Puerto Rico’s phone company. One bomb exploded in a policeman’s hands. The bomb, concealed in a flashlight, was planted at a branch of Banco Popular, part of a consortium buying the Puerto Rico Telephone Co. It tore a finger off the officer’s right hand and wounded his left hand and leg.

Two large unions began a financial offensive against Banco Popular. The General Workers’ Council withdrew $40 million from accounts on Jun. 25, and the Teachers Association of Puerto Rico said it transferred $100 million out of the bank. The rash of sabotage started shortly after Gov. Pedro Rossello signed a law on Jun. 24 completing the $1.9 billion sale of the phone company, known as Telefonica, to a consortium led by GTE Corp.
 
Being told by … Read More ➡

Connecticut Union Bosses Settle Case

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 ➡

Teamsters Congressional Hearings Continue

  • On Jun. 11, the court-appointed Teamsters Independent Review Board said it would “consider” investigating acting Teamsters President Tom Sever for refusing to conduct an internal probe of possible wrongdoing by top officials during Ron Carey’s administration who are still working at Teamsters HQ. IRB was responding to Rep. Hoekstra’s request for a probe into Sever. “If Mr. Sever is willfully ignoring the corruption and misuse of [Teamsters] assets and personnel, he should be held accountable,” said Hoekstra. [Detroit News 06/12/98]
  • On Jun. 15, Hoekstra subpoenaed Sever in an effort to obtain documents critical to the probe. He said the subpoena of makes Sever “personally accountable” to Congress for the release of documents that have been sought by the subcommittee since Feb. In May, Sever declined to tell the subcommittee why the union paid $250,000 to White House Counsel Charles F.C. Ruff when Ruff was a Teamsters attorney. He also refused
Read More ➡

LIUNA Radicals Loose in California

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 ➡

CWA Tries to Stop WorldCom-MCI Merger

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 ➡

Militancy Pays in Madison

Billboards urging customers to shun Walgreens drug stores are up around Madison, WI, as part of a continuing battle between local union electrical workers and the pharmacy firm. The battle began when Walgreens hired a non-union electrical contractor as part of an expansion of a distribution center. But although the job is nearly complete, bitterness remains and could spill over into other states. The union is upset because a portion of the $50 million project went to a non-union contractor. The move so angered International Brotherhood of Electrical Workers Local 159 that it set up a picket line for 132 days calling it off only after Walgreens hired a union electrical contractor to do inside wiring as part of the renovation. [Madison Capital Times 06/09/98]

SEIU Organizing Blitz Descends on L.A.
For 2 weeks starting Jun. 14, some 70 organizers from Service Employees International Union locals around the country will … Read More ➡