October 29, 2007: The Independent Review Board (IRB) has recommended that Chicago Local 714 be placed into trusteeship. The move is an opportunity to root out corruption and allow the 8,000 members to have a local run for the members, and not for the Hogan family. The 250 page investigative report was sent to James Hoffa for action to be taken.

The scathing report states that secretary treasurer Robert Hogan and president James Hogan allowed Billy Hogan (Robert Hogan’s father, James Hogan’s brother) to continue to have contact with the local through a business representative and family friend, Robert Riley. Billy Hogan was banned from the Teamsters Union in 2002, after he was found guilty of trying to execute a sweetheart trade show contract in Las Vegas with a company partially owned by a family member.

The report also alleges that Local 714 maintained sham contracts with some employers, and allowed non-union workers at others, and refused to police contracts so that Local 714 members were denied wages guaranteed by contract. The report asserts that some contracts provided for wages less than the minimum wage, dues were illegally paid by the employer, and no contract votes were taken.

The report finally charges that the movie division of Local 714 routinely places relatives of officials on lucrative movie jobs ahead of more senior union members.

Local 714, long a Hogan family dynasty, was placed in trusteeship in 1996 by then Teamster president Ron Carey, and reforms were made, including in the movie referral system. But the local came back under control of the Hogans, and old ways returned.

The IRB’s report calls on Hoffa to act, and report back to the IRB on actions taken. The IRB is the three-person panel charged with cleaning up corruption in our union. IRB members are jointly appointed by the union leadership and the U.S. Justice Department.

Charges Brought against John Clancy

The IRB also brought a charge dated Oct. 23 against Chicago International Organizer John Clancy for associating with Dane Passo, who was banned from the Teamsters in 2002 along with Billy Hogan. Clancy maintained contact with Passo, and held at least two meetings with him. Clancy told the IRB in his deposition that International Reps William Cooper and William Moore were present, and that Moore planned the meetings. No charges have yet issued against Cooper or Moore.

October 9, 2007: Thanks to TDU, International Union Vice President, and former Local 237 president Carroll Haynes is being forced to repay more than $100,000 in improper payments. Haynes received the payments from the company that manages the Local 237 health plan.

Local 237 launched an internal probe after Teamsters for a Democratic Union (TDU) brought the improper payments to light.

As part of our preparations of the $150,000 Club, our annual report on Teamster salaries, TDU uncovered that Haynes received a $54,500 "stipend" in 2006 from the Health Insurance Plan of Greater New York (HIP). Further investigation has revealed that Haynes received more than $106,000 in payments from HIP and Emblem Health since 2005—not including payments he received in 2007.

Following an investigation by outside counsel hired by Local 237, Haynes will return the payments. The final amount is still being determined.

"Did Local 237 officials really need to pay for an outside investigation to realize that it's wrong for our President to take $100,000 in payoffs from a health insurance company? That just shows how out of touch they are with the members," said Bernadette Bradley, a Local 237 member and leader of the reform group, Members for Change. "Thankfully, we've got TDU to be a watchdog for us."

It remains to be seen what, if any, action our International Union will take on the matter. This is the second time that TDU has caught Haynes taking improper payments. In 2003, Haynes was forced to pay back thousands of dollars after he took total salaries in 2001 in excess of the General President's salary—a violation of the Teamster Constitution.

"Making a millionaire pay back the money he was caught taking is not much of a deterrent," TDU Organizer David Levin told The Chief, a weekly newspaper for New York public employees. "What happens to him is going to send a message to other Teamster officials. Will Hoffa's message be, 'You will be held accountable,' or 'Go ahead, take your shot at the cookie jar because nothing really bad happens if you get caught'?"

Click here for The Chief's report "Ex-Local 237 Head Got Improper Fees"

August 23, 2007: This year’s analysis reveals that more than $20 million in Teamster dues was paid last year to the highest paid Teamster officials, each of whom bags $150,000 or more a year.

Teamster contracts and benefit funds are under attack—and our union’s power is on the decline. But salaries for top Teamster officials remain on the rise, draining dues that could be used to organize the nonunion competition and rebuild Teamster Power.

Those are the findings of a comprehensive analysis of Teamster financial documents and officer compensation by the Teamster Rank and File Education and Legal Defense Foundation (TRF).

Click here to view complete salary data for our union's top-paid officers.

Some of our union's highest-paid officials are the ones who are failing to defend our master contracts and benefits. Click here to read more.

In 2006, the Hoffa administration shattered its previous records in several categories including:

• total pay going to the union’s highest paid officials;

• number of officers making more than $150,000;
  

• the number of multiple salaries paid by the International to officers already making at least one union salary.

The great majority of Teamster principal officers of locals make less than $100,000 a year. But there are numerous exceptions—and you’ll find all of them here. In addition to the $150,000 Club, we list every Teamster official who has a total salary over $100,000. No partisanship and no exceptions.

This year’s analysis reveals that more than $20 million in Teamster dues was paid last year to the highest paid Teamster officials, each of whom bags $150,000 or more a year.

In all, 96 Teamster officials now belong to this $150,000 Club—a 23 increase in the last year alone. Twenty-five officials now make more than $200,000 a year.

Twenty-two members of Hoffa’s General Executive Board are in the $150,000 Club—along with numerous Hoffa appointees.

Multiple Salaries

For the last 30 years, members and concerned officers have organized to reform our union’s financial priorities. Multiple salaries have been at the center of that struggle.

In 1990, when TDU printed the multiple salaries of several candidates for International office, they were quietly dropped from their slate and retired. In 1993, General President Ron Carey eliminated 65 multiple salaries in one day by abolishing the Area Conferences. By 1998, only 16 officials on the IBT payroll got a multiple salary.

Since taking office, Hoffa has reversed that trend. Last year, 179 officials on the International Union payroll received multiple Teamster salaries—a new record and a 1,018 percent increase during Hoffa’s tenure. Altogether, the International paid more than $8.5 million in multiple salaries.

Hoffa uses these multiple salaries to reward his political supporters—and to punish dissenters. Last year, Hoffa fired Larry Brennan—the Michigan Teamster who made Hoffa eligible to run for General President by giving him a no-show job—for showing insufficient loyalty during Hoffa’s reelection campaign.

Hoffa also fired Eastern Region Freight Director Dan Virtue in retaliation for running for Eastern Region Vice President. That retaliatory firing is now under review by the U.S. Department of Justice.

Cost of Hoffa’s Broken Promises

When Hoffa first ran for General President, he promised to “cut and cap” Teamster salaries at $150,000 a year, but when the Hoffa train left the station, the platform stayed behind. Reform delegates to the 2006 Teamster Convention tried to amend the constitution to include these reforms, but Hoffa directed his supporters to vote against his own campaign promise.

TRF’s financial analysis reveals that the cost of this broken promise was $3.75 million for 2006 alone.

Hoffa also promised to “eliminate expensive International Union perks,” including the IBT’s practice of paying the employee portion of social security taxes. This amounts to a 7.65 percent tax on Teamster members and hidden extra compensation for International officials. For the 178 International officials making $100,000 a year or more, this cost Teamsters nearly $1 million last year alone.

If Hoffa had kept his “cut and cap” promises, our union would have saved $20 million during his tenure in office.

Rank-and-File Pressure Can Change Priorities

For 28 years, TDU has published the facts to let members decide for themselves whether our union’s financial priorities are on the right track.

Armed with the facts, Teamsters have mobilized to cut the fat and direct our union’s resources to programs that build Teamster power.

When TDU first published the $100,000 Club, General President Jackie Presser’s salary was over $500,000. In today’s dollars, that would be over $1 million. Those days are past.

These financial savings are the direct result of rank-and-file pressure—but they’re not enough.

With corporations attacking our contracts and benefits, we need to keep the pressure to make sure our dues money is put to work defending working Teamsters—not subsidizing a corporate lifestyle for top Teamster officials.

Click here to complete salary data of our union's top-paid officers.

Some of our union's highest-paid officials are the ones who are failing to defend our master contracts and benefits. Click here to read more.

August 12, 2007: Election Appeals Master Kenneth Conboy has issued a decision that could result in a victory for Teamster democracy. The decision is a blow against retaliation aimed at Teamsters who run for IBT office. The decision questions the legality of Hoffa’s firing of Dan Virtue and Carlos Ramos last January.

The firings came days after the 2006 IBT Election was certified, an election won by Hoffa’s slate against the reform slate headed by Tom Leedham and Sandy Pope. Virtue ran on an independent slate, along with Joint Council 73 president Don DiLeo, for Eastern vice president. Ramos supported Virtue.

The Election Supervisor investigated the firings, after Virtue and Ramos protested, and found that every reason offered by the Hoffa administration for the firings was bogus. Hoffa’s staff, in particular Executive Assistant Leo Deaner, made up one lie after another to justify the firings. Former Freight Director Phil Young and Freight Director Tyson Johnson testified that Virtue did an “excellent” job as Eastern Region Freight Coordinator. But the Election Supervisor ruled that since the election was over, Hoffa could fire him for any reason he wanted.

On appeal, Conboy sharply disagreed, and endorsed arguments advanced in Virtue’s appeal and by attorney Barbara Harvey, who represents TDU in the case. Judge Conboy has asked the U.S. Attorney to submit an opinion on this matter, and the U.S. Attorney has agreed to do so by Sept. 12. Some time after that a final decision is expected.

Virtue’s appeal made this powerful argument: “To allow this blatant discrimination to stand will no doubt have a chilling effect on democracy within our union. Potential future opposition candidates will have to look no further than how the Election Appeals Master handles this case in order to know whether or not they are truly free to exercise their right to run for office or nominate candidates without fear of systematic retaliation by an incumbent administration.”

That sums up why Teamsters for a Democratic Union will continue to fight for this principle, to protect the rights of all Teamsters.

You can read Judge Conboy’s decision here.

August 10, 2007: By Jane M. Von Bergen, Inquirer Staff Writer: The leader of one of Pennsylvania's most powerful unions has been ousted after allegations that he lied to a federal investigatory board.

Francis "Frank" J. Gillen, a longtime officer of the International Brotherhood of Teamsters, cannot hold any union office for five years and cannot belong to the union as a truck driver for three years.

To read the full story, click here.

July 12, 2007: Master contracts are the foundation of our union’s power. Will Hoffa let that foundation crumble? And what can concerned Teamsters do about it?

Master contracts cover about 25 percent of Teamsters, but they set standards for the majority. They are the foundation of Teamster power.

Jimmy Hoffa Sr. understood this principle and built up our national contracts. Is Hoffa Jr. giving up on the master contracts that were his father’s greatest legacy?

Just look at the warning signs that are flashing at us right now.

UPS. The Hoffa administration claimed early bargaining would deliver stronger pension and health benefits. But top officials are leaking that Hoffa may go along with UPS’s proposal to break up the Central States Pension Fund.

CARHAUL. The Hoffa administration has allowed 3,300 carhaulers, nearly 40 percent of Teamsters covered by the contract, to have their wages slashed to 17.5 percent below union scale—and frozen for years. This has happened even as billionaire Ron Burkle has taken over 60 percent of the industry.

FREIGHT. Freight division leaders openly question whether Hoffa has given up on this core industry. ABF’s CEO is promoting a scheme to bust out of Teamster pension plans and set up a company pension, or even just a 401(k).

DHL. IBT insiders report that Hoffa will allow DHL out of the National Master Freight Agreement.

UPS FREIGHT. Over a year ago Hoffa claimed a national cardcheck agreement would soon unionize 15,000 UPS Freight employees. Now management is playing hardball and attacking our union—and union officials in freight are concerned that Hoffa will give up Teamster standards to get the company under a contract.

UPS CARTAGE. Hoffa’s so-called “master” contract leaves substandard wages in place and no protection against subcontracting.

Master Contracts:Fact From Fiction

A true master contract uses our union’s national power to raise all Teamsters up to the highest level.

What the Hoffa administration calls a “master contract” is any contract that covers multiple locations, even if there’s no Teamster pension, the wages vary by location, and the conditions are inferior to our national standards.

Hoffa’s “master contracts” mean drastically lower wages (carhaul, UPS Cartage), undercutting our national standards (DHL and UPS Freight), and potentially even busting up our pension plans (UPS, freight, and UPS Freight).

Rank and File Can Make a Difference

Our Right to Vote on contracts gives members the power to prevent Hoffa from selling out our national contracts. But rank-and-file Teamsters need to be informed and united to use the power in our hands.

In carhaul, members nearly voted down Hoffa’s massive givebacks, but we fell just 2 percent short. With just a little more rank-and-file involvement, a 17.5 percent wage cut could have been prevented.

Do you want to be part of a movement to defend our contracts and rebuild our union’s power? Or do you want to sit on the sidelines?

Contact Teamsters for a Democratic Union today to find out how rank-and-file Teamsters can stand up for our contracts and the future of our union.

Click the links below to read more:

Save Our Pensions

UPS Freight Attacks Teamsters Union

Don't Let DHL Out of National Contract

UPS Cartage Services: Teamster Success Not Secure

July 12, 2007: General President Hoffa is the sugar daddy to many, but when it comes to multiple salaries Local 63 officials have a special place in Hoffa’s heart.

Led by International Vice President Randy Cammack, no less than ten Los Angeles Local 63 officials get a second union salary from the International Union.

Together, these ten took home more than $1.4 million from Local 63 and the International Union in 2006.

Multiple Salaries

Hoffa pays multiple salaries to nearly 200 officials who already make other full-time salaries. This money could be used for organizing or contract campaigns.
Instead, Hoffa uses our dues money to buy something even more important to him: political loyalty. Officials making multiple salaries are a “Who’s Who” of Hoffa campaign donors.

If an official doesn’t kiss enough Hoffa butt, they are off the gravy train. After the 2006 election, Hoffa removed Larry Brennan, Dennis Hands, Jim Ayers, Carlos Ramos, Dan Virtue, Jerry Halberg and others for failing to toe the line.

Hoffa’s attorney said that Virtue was fired because he wanted to win NMFA standards at UPS Freight and DHL. To Hoffa, standing up for our national contracts is a reason to be fired.

Perhaps some of them figured they work for the members, and not for Hoffa. No worries for the Local 63 all-stars on that front.

We’ll report all the facts and figures—and what this spending means for our union—in the August $150,000 Club issue of Convoy Dispatch.

July 12, 2007: The International Union and New York Local 237 are investigating International Vice President Carroll Haynes over tens of thousands of dollars in payments he received from an HMO that does business with the Teamsters.

The union investigation came in response to a report in last month’s Convoy Dispatch. Research by Teamsters for a Democratic Union uncovered that Haynes received $54,500 as a “consultant” to Health Insurance Plans (HIP) of New York, the plan that provides benefits to Teamster Local 237 members.

Haynes served as Local 237 President and a trustee to its benefit funds at the time he took the payments from HIP. He resigned as Local 237 president in April.

Local 237 Investigates

Haynes’ successor at Local 237, Gregory Floyd, told the Chief-Leader newspaper that “on advice from counsel, he had not spoken with Mr. Haynes” since the HIP payments were uncovered.

Haynes served on the board of directors of HIP and on the HIP Foundation board of directors. The stipend came from the foundation board. Floyd, who also serves on the HIP New York board, said he did not receive a stipend and would not accept one.

Haynes has routinely made over $300,000 from his multiple salaries and pensions. In 2003, TDU caught Haynes taking a higher salary than legally permitted by the Teamsters Constitution. After charges were filed, Hoffa allowed Haynes to get off by repaying the $8,000 overpayment, claiming it was a “clerical error.”

Now, Haynes is under investigation for his “consulting” fees.

“We are going to wait and see if it’s permissible to accept stipends,” Floyd said. “At this point we’re not sure, because HIP provides health benefits to the city and does our prescriptions.”

$54,500 ‘Consulting Fee’

TDU uncovered the $54,500 “stipend” on an LM-30 financial disclosure form that Haynes filed with the Department of Labor. By law, union officials must report any income that comes from an entity that does business with their union. The law is intended to flag any conflicts of interest or undue influence that could compromise a union’s ability to properly serve its members.

Local 237 has hired an attorney to investigate whether a technical violation of the Teamster Constitution or Local 237 bylaws occurred.

The larger question is whether a Teamster officer and benefit fund trustee should be taking $54,500 from an HMO that makes millions through its contract with our union’s largest local.

In the old days, vendors made payoffs to officials under the table. Today, they pay “consultant fees.” Does that make it right?

Many city unions in New York contract with HIP and union officers have long served on its board of directors. But while Haynes bagged more than $50,000, officers from other unions—including those from the United Federation of Teachers and AFSCME—did not accept any fees.

July 12, 2007: IBT Election Supervisor Richard Mark has very likely made his final decision of the 2006 IBT Campaign, and done so in a confusing manner.

Mark upheld the firing of Dan Virtue and Carlos Ramos by Hoffa, for the “crime” of Virtue running for Eastern International Vice President. Mark reasoned that since the action was taken after the election was over and certified, Hoffa could fire any political opponents and hire any cronies.

If that’s the case, we wonder why it took six months to issue the decision, which has been appealed by Virtue and Ramos.

In January, Virtue was removed as Eastern Region Freight Coordinator and Carlos Ramos, a Virtue supporter, was removed as an International Rep.

The seven-page decision makes clear that the Hoffa administration, in particular his Executive Assistant Leo Deaner, made up one lie after another to justify their actions. The investigation revealed that Hoffa’s stated reasons for firing Virtue were false.

Freight Director Tyson Johnson and former Director Phil Young testified that that Virtue did an “excellent” job.

The pretenses for firing Virtue included blaming him for Hoffa’s disastrous Red Star strike. Organizing Director Jeff Farmer contradicted that story to investigators.
The Election Supervisor indicates that if the firing had been during the election, his decision would have been very different.

So a thorough investigation showed that Hoffa fires respected leaders who are doing an excellent job for the “crime” of running for office or working to maintain national standards in freight. It may be legal. But it’s not good unionism or good leadership.

May 23, 2007: International Vice President Frank Gillen was charged by the Independent Review Board (IRB) last month for giving false testimony to cover up his association with Thomas Ryan. Ryan was banned from the Teamsters for embezzling union funds.

Billy Hogan, the former president of Chicago Joint Council 25 and formerly Hoffa’s running mate, has been ordered to appear before judge Loretta Preska on charges of criminal contempt for repeatedly violation his ban on associating with Teamster members. (That hearing was scheduled for May 21 but has been postponed until July 17 because Hogan is getting a new attorney.)

Some Teamsters have asked, "Should association with a banned former Teamster official be an offense that you can be charged for?"

The logic is that once an official is removed for corruption, they should not be allowed to influence or direct our union through their contact with officials.

Opponents says that the ban outlaws contact that can be purely social in nature and that it unfairly restricts members’ free speech and association rights.

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