May 1, 2008: James P. Hoffa took a $78,000 increase in his income for 2007, by far his biggest raise since he took office nine years ago. His salary, expenses, and “allowance” and “other disbursements” for 2007 total $413,234. General Secretary Treasurer Tom Keegel bagged a big increase also.
Although Hoffa’s and Keegel’s salaries are set by the Teamster Constitution, and go up each year on a generous cost of living formula, they are apparently dodging the limit set in the constitution by taking incredibly high “other disbursements.”
This information comes from the International Union’s LM-2 financial report filed in April with the U.S. Department of Labor.
Top Officers Bag an Extra Million
Each year the Teamster Rank and File Education and Legal Defense Foundation examines hundreds of LM-2 forms filed by Teamster affiliates, to make information and analysis available to members. That report is expected to be available late this summer.
Here are a few quick facts concerning the finances of just our International Union:
- Hoffa’s “other disbursements” jumped from $35,000 to $66,000 in just one year. Most of this is a “housing allowance,” a new invention of General President Hoffa. His predecessor, Ron Carey, paid for his own apartment out of his salary, just as other union presidents do. Hoffa also paid himself an “allowance,” and his “expenses” went from about $27,000 to over $65,000. His base salary went from $268,000 to nearly $278,000; that was all he was permitted to raise it.
- The total paid in salaries, allowances, expenses and “other disbursements” to the 29 members of the General Executive Board members went up almost a million dollars in one year, the biggest increase ever.
- The International Union borrowed $10 million from Wachovia Bank for the second year in a row, and at the end of 2007 had not paid anything on the loans. The interest payments currently are at the rate of over $1 million per year.
- The income of the International Union was $185 million, including the $10 million loan.
- The International Union’s assets grew from $99 million to $117 million. The union held $51.7 million in treasury notes, $32.7 million in corporate stocks, and $17.6 million in corporate bonds.
- Strike benefits paid were just $2.5 million, down from $7.2 million in 2006.