Teamster Leader Beats Employer Move to Slash Pensions
November 1, 2005:When employer and union trustees colluded to cut their pensions, Teamster members in New York Local 805 fought back. First, they elected new local officers who sued the employer trustees. Now, they’ve scored a major victory for pension justice.
Local 805 President Sandy Pope has finalized a settlement that reduces the pension cuts, raises members' pension accrual retroactively, and institutes sweeping reforms in how the pension plan is run.
In December, the Employer Trustees on the Local 805 Pension Fund slashed future pension benefit accruals to zero with the help of the former Local 805 President Gerry Whelan who voted in favor of the cut. The employer trustees then turned around and hired Whelan and his wife to run the Funds.
The Local 805 pension fight shows the right union leadership can make a difference in protecting our pensions. Local 805 is a small local with early retirement benefits of $2,500/month—not UPS or freight money, but a solid pension for a fund of it size. The employers slashed the pension to zero to avoid having to increase their contributions.
But a strong stand by the new reform leaders of Local 805 took on this pension scheme. In exchange for dropping the lawsuit in Federal Court, Local 805 won a settlement that turned back the pension attack:
- Cut to zero eliminated: The accrual rate of zero adopted in December will never go into effect. The Union Trustees and the Employer Trustees will each hire an actuary to determine the highest future benefit accrual rate the Pension Fund can afford. The new rate will be applied retroactive to the beginning of the "zero period."
- New, professional fund manager: The former union president who went along with the scheme and his wife are both gone from the fund. A professional fund manager has been hired.
- Trustee reforms: The Board of Trustees of the fund will be restructured. The Union and the Employers will each add two new members. This reform will break up the clique of employers who dominated the fund. Of the two new Union Trustees, one will be a Local 805 retiree. The Union Trustees already includes two rank-and-file members.
Under the agreement, the employer trustees are required to accept the highest, prudent recommendation from the actuaries. While the accrual rate may not be fully restored (the Fund suffered market losses experienced by all Pension Funds), participants will be getting the highest benefit the plan can afford. The new Local 805 leadership and union trustees made a strong stand against the employers attack on members’ pension, and leveraged the best possible result for the members—all while keeping members informed every step of the way.
That’s a far cry from what happened in funds like the Central States and an example of the difference the right leadership can make when our pensions are under attack.Report Reveals Need for Financial Reforms
October 30, 2005: Is the biggest dues increase in Teamster history being used by the Hoffa administration to fund Teamster Power or political patronage? That’s the question raised by a comprehensive study of Teamster officials’ salaries in all local unions and the International.
A review of hundreds of Teamster financial documents uncovered a web of political patronage in which the Hoffa administration used money from the 2002 dues increase to balloon the salaries of key political supporters. The annual study of Teamster officer compensation also revealed a growing divide among union officials. On one side of the salary divide are the majority of local union officers. Half of all local unions pay their principal officer less than $86,000 a year.
On the other side of the salary divide is an elite club of super-compensated Teamster officials, most on the Hoffa administration payroll. Most take home one or more additional Teamster salaries from a Teamster local, joint council or other affiliate.
These super-compensated officials—and the multiple salaries they receive—lie at the heart of the patronage scheme.
Financial documents from the Department of Labor revealed:
• The number of officials on the IBT payroll receiving a multiple salary has increased from just 18 to 148 since Hoffa took office— a staggering 722 percent increase.
• A record 25 Teamster officials now make more than $200,000 a year. Twenty of them are on Hoffa’s payroll.
• In all, 119 officials on the IBT payroll make more than $100,000—a figure that leaped after the 2002 dues hike. Eighty percent of them get multiple salaries.
These officials form the backbone of Hoffa’s political machine. They number among Hoffa’s biggest donors and are the officials the Hoffa Campaign uses to turn out the vote.
Are the 148 multiple salaries doled out by the Hoffa administration helping to buy that political loyalty? You be the judge.
The $100,000 Club has informed members, shed a light on abuses and brought about change. In 1990, when TDU printed the multiple salaries of several candidates for International office, they were quietly dropped from the slate and retired.
In 1993, General President Ron Carey abolished the Area Conferences and in one day eliminated 63 multiple salaries. By 1998, only 18 officials on the International payroll got a multiple salary.
Since taking office in 1999, Hoffa has reversed that trend by handing out numerous regional titles and salaries to political allies. Hoffa also uses the IBT payroll to discipline his critics. Hoffa stripped Willie Whelan of a $20,000 a year multiple salary as the Eastern Director of the Dairy Conference after he and Billie Lee Whelan, the head of Local 803, criticized the IBT for providing no support to a Teamster organizing drive in Long Island.
Click here: Patronage or Teamster Power
Click here: $100,000 Club 2005 (Acrobat Reader Required)
Click here: Officer's Salaries: A Wide Range
Click here: $100,000 Club Findings
A review of hundreds of Teamster financial documents uncovered a web of political patronage in which the Hoffa administration used money from the 2002 dues increase to balloon the salaries of key political supporters. The annual study of Teamster officer compensation also revealed a growing divide among union officials. On one side of the salary divide are the majority of local union officers. Half of all local unions pay their principal officer less than $86,000 a year.
On the other side of the salary divide is an elite club of super-compensated Teamster officials, most on the Hoffa administration payroll. Most take home one or more additional Teamster salaries from a Teamster local, joint council or other affiliate.
These super-compensated officials—and the multiple salaries they receive—lie at the heart of the patronage scheme.
Financial documents from the Department of Labor revealed:
• The number of officials on the IBT payroll receiving a multiple salary has increased from just 18 to 148 since Hoffa took office— a staggering 722 percent increase.
• A record 25 Teamster officials now make more than $200,000 a year. Twenty of them are on Hoffa’s payroll.
• In all, 119 officials on the IBT payroll make more than $100,000—a figure that leaped after the 2002 dues hike. Eighty percent of them get multiple salaries.
These officials form the backbone of Hoffa’s political machine. They number among Hoffa’s biggest donors and are the officials the Hoffa Campaign uses to turn out the vote.
Are the 148 multiple salaries doled out by the Hoffa administration helping to buy that political loyalty? You be the judge.
Multiple Salaries—Center of Teamster Controversy
For the last 30 years, members and concerned officers have organized to reform our union’s financial priorities—fighting to eliminate perks for top officials and put our union’s resources towards building union power. Multiple salaries have been at the center of that struggle.The $100,000 Club has informed members, shed a light on abuses and brought about change. In 1990, when TDU printed the multiple salaries of several candidates for International office, they were quietly dropped from the slate and retired.
In 1993, General President Ron Carey abolished the Area Conferences and in one day eliminated 63 multiple salaries. By 1998, only 18 officials on the International payroll got a multiple salary.
Since taking office in 1999, Hoffa has reversed that trend by handing out numerous regional titles and salaries to political allies. Hoffa also uses the IBT payroll to discipline his critics. Hoffa stripped Willie Whelan of a $20,000 a year multiple salary as the Eastern Director of the Dairy Conference after he and Billie Lee Whelan, the head of Local 803, criticized the IBT for providing no support to a Teamster organizing drive in Long Island.
Click here: Patronage or Teamster Power
Click here: $100,000 Club 2005 (Acrobat Reader Required)
Click here: Officer's Salaries: A Wide Range
Click here: $100,000 Club Findings
Patronage or Teamster Power?
October 30, 2005: Study shows multiple salaries at heart of Hoffa patronage scheme.
Each year, the Teamster Rank & File Education and Legal Defense Foundation (TRF) conducts a comprehensive analysis of Teamster financial documents and officer compensation.
Convoy Dispatch publishes the results in our annual $100,000 Club issue.
This year, the study focuses on the record number of super-compensated Teamster officials—making $150,000, $200,000 or more—who are on the International Union payroll.
Our $100,000 Club analyzes how the Hoffa administration is using members' dues money in a political patronage scheme—by guaranteeing multiple salaries to a network of political allies.
A total of 148 officials on Hoffa's payroll get multiple salaries. This figure has skyrocketed by 722 percent since Hoffa took office.
Our study also examines the growing salary gap between these super-compensated officials and the majority of local union principal officers who make $86,000 a year or less.
Is all of our dues money being used like it should to fight corporate greed and build union power? Or is some going for patronage and pork? We provide the data and let you decide.
Each year, the Teamster Rank & File Education and Legal Defense Foundation (TRF) conducts a comprehensive analysis of Teamster financial documents and officer compensation.
Convoy Dispatch publishes the results in our annual $100,000 Club issue.
This year, the study focuses on the record number of super-compensated Teamster officials—making $150,000, $200,000 or more—who are on the International Union payroll.
Our $100,000 Club analyzes how the Hoffa administration is using members' dues money in a political patronage scheme—by guaranteeing multiple salaries to a network of political allies.
A total of 148 officials on Hoffa's payroll get multiple salaries. This figure has skyrocketed by 722 percent since Hoffa took office.
Our study also examines the growing salary gap between these super-compensated officials and the majority of local union principal officers who make $86,000 a year or less.
Is all of our dues money being used like it should to fight corporate greed and build union power? Or is some going for patronage and pork? We provide the data and let you decide.
Organizing Report Shows Need for New Strategies to Build Power
October 30, 2005: James Hoffa recently pulled the Teamsters out of the AFL-CIO, saying unions had to boost their bargaining power by organizing the nonunion competition in our core industries. But a special investigation of the most recently available organizing statistics reveals that Teamster organizing in 2004 continued to lag far behind the levels achieved a decade ago.
Researchers found that not only is Teamster organizing down in the Hoffa years, but that the IBT has failed to strategically focus on the targets that could boost the union’s bargaining power in key industries.
The study was conducted by the Teamster Rank and File Education and Legal Defense Foundation, which has analyzed NLRB organizing figures and Department of Labor statistics for years. Key report findings include:
• Teamster membership has fallen by over 100,000 since 1999 when Hoffa took office. The recent mergers of two rail unions and the graphic communication workers have recouped some of these losses, but mergers are not organizing. And you don’t spend millions on organizing to merge with other unions.
• Organizing under Hoffa continues to fall far behind what was achieved in the 1990s. In 2004 the IBT won 248 elections. This figure was slightly better than the 228 wins in 2003, but worse than the 278 wins in 2002, and far worse than the average of 380 new shops organized annually a decade ago.
• Teamster organizing under Hoffa has largely ignored the nonunion competition in our union’s core industries. Tucking and warehousing companies were targeted in just 19 percent of Teamster organizing drives.
In 2002, the Hoffa administration raised members’ dues by 25 percent, in part, he said, to boost organizing. Hoffa also reshuffled the organizing department and installed Jeff Farmer as Director of Organizing. The Hoffa administration promised then—just as they are promising now—that the IBT would focus on organizing the nonunion competition to boost Teamster membership and bargaining power in our core industries.
Not only has Teamster organizing dropped far below the levels achieved in the 1990s, but organizing is not directed at strategic targets. The IBT did not participate in a single NLRB organizing election at freight companies Overnite, Conway, Estes or Watkins in 2004.
Cintas, touted by the IBT as a big national campaign coordinated with the UNITE HERE union, does not appear at all in the NLRB statistics. How much of the $44 million was “poured” into this campaign?
Some Teamster organizing takes place outside the NLRB process, among public workers or rail and airline workers. However, most Teamster organizing, especially in our core industries, is covered by these NLRB statistics.
On paper and in press releases the DHL record looks good. Behind the scenes, however, many local union officials are unhappy with the IBT’s handling of the drive. Some locals have organized the same DHL unit more than once, investing significant resources into the same organizing drive without any end in sight of a good contract that can be defended. Local 162 in Portland, Ore. finally struck the DHL contractor, effectively shutting down their airport operation. The local had leverage until the IBT stepped in and told them to call off the strike. The employer knew of the IBT’s decision before the local did.
We need to use the clout we have with thousands of Teamsters organized at DHL, including in many big cities and including the pilots, to put pressure on DHL to stop recycling the contractors as they are organized. The DHL drive has the potential to bring 10,000 new trucking Teamsters into our national contract and pension plans. We need to make it happen.
Click here: Study Reveals Cost of Hoffa's Broken "Cut and Cap" Promises
Click here: IBT Organizing Lags Again in 2004
Click here: NLRB Statistics on Teamster Organizing
Researchers found that not only is Teamster organizing down in the Hoffa years, but that the IBT has failed to strategically focus on the targets that could boost the union’s bargaining power in key industries.
The study was conducted by the Teamster Rank and File Education and Legal Defense Foundation, which has analyzed NLRB organizing figures and Department of Labor statistics for years. Key report findings include:
• Teamster membership has fallen by over 100,000 since 1999 when Hoffa took office. The recent mergers of two rail unions and the graphic communication workers have recouped some of these losses, but mergers are not organizing. And you don’t spend millions on organizing to merge with other unions.
• Organizing under Hoffa continues to fall far behind what was achieved in the 1990s. In 2004 the IBT won 248 elections. This figure was slightly better than the 228 wins in 2003, but worse than the 278 wins in 2002, and far worse than the average of 380 new shops organized annually a decade ago.
• Teamster organizing under Hoffa has largely ignored the nonunion competition in our union’s core industries. Tucking and warehousing companies were targeted in just 19 percent of Teamster organizing drives.
More Money, Less Organizing
General Secretary-Treasurer Tom Keegel recently reported that the Hoffa administration has “poured $44 million into organizing.” But even the largest dues hike in Teamster history failed to reverse the Hoffa administration’s record on organizing.In 2002, the Hoffa administration raised members’ dues by 25 percent, in part, he said, to boost organizing. Hoffa also reshuffled the organizing department and installed Jeff Farmer as Director of Organizing. The Hoffa administration promised then—just as they are promising now—that the IBT would focus on organizing the nonunion competition to boost Teamster membership and bargaining power in our core industries.
Not only has Teamster organizing dropped far below the levels achieved in the 1990s, but organizing is not directed at strategic targets. The IBT did not participate in a single NLRB organizing election at freight companies Overnite, Conway, Estes or Watkins in 2004.
Cintas, touted by the IBT as a big national campaign coordinated with the UNITE HERE union, does not appear at all in the NLRB statistics. How much of the $44 million was “poured” into this campaign?
Some Teamster organizing takes place outside the NLRB process, among public workers or rail and airline workers. However, most Teamster organizing, especially in our core industries, is covered by these NLRB statistics.
Making Gains in Waste
Trucking and warehousing recruitment brought a little over 2,000 workers into the union. Healthcare came in second, with a little over 1,000 workers organized The third largest group of workers organized in 2004 was in waste hauling. A number of local unions have worked with the IBT to organize BFI, Waste Management and Allied—the big players in this industry. In 2002 Waste Management accounted for the most IBT elections against any single employer (20 elections). In 2004 activity has lessened somewhat but continues to show some life. There were 16 elections (and nine wins) against BFI, Waste Management and Allied in 2004.Is DHL the Strategic Campaign We Are Looking For?
Our union experienced an organizing opportunity when the express package delivery company DHL bought Airborne Express. In 2004 the IBT won elections at up to fifty DHL contractors around the country (the exact figure is hard to determine because DHL just drops organized contractors, forcing the locals to organize the same group under another company’s name). Large units of DHL workers were also won in New York and Miami. Overall the IBT organized over 1,500 DHL workers in 2004.On paper and in press releases the DHL record looks good. Behind the scenes, however, many local union officials are unhappy with the IBT’s handling of the drive. Some locals have organized the same DHL unit more than once, investing significant resources into the same organizing drive without any end in sight of a good contract that can be defended. Local 162 in Portland, Ore. finally struck the DHL contractor, effectively shutting down their airport operation. The local had leverage until the IBT stepped in and told them to call off the strike. The employer knew of the IBT’s decision before the local did.
We need to use the clout we have with thousands of Teamsters organized at DHL, including in many big cities and including the pilots, to put pressure on DHL to stop recycling the contractors as they are organized. The DHL drive has the potential to bring 10,000 new trucking Teamsters into our national contract and pension plans. We need to make it happen.
Click here: Study Reveals Cost of Hoffa's Broken "Cut and Cap" Promises
Click here: IBT Organizing Lags Again in 2004
Click here: NLRB Statistics on Teamster Organizing
IBT Organizing Lags Again in 2004
October 30, 2005: Teamster organizing figures have decreased for the second straight year, according to the latest figures available from the National Labor Relations Board. A new report on Teamster organizing reveals the Hoffa administration is lagging far behind the organizing levels achieved in the 1990s.
Hoffa recently pulled the Teamsters out of the AFL-CIO, supposedly to free up resources for organizing. But only one percent of Teamster dues were going to the AFL-CIO. Half that amount is now going to the Change to Win Coalition for a net savings of just $4 million per year.
In contrast, Hoffa’s broken campaign promises to "Cut and Cap" officers’ pay and to introduce other financial reforms have cost our union more than $15 million that could have been put toward organizing.
Click here: Organizing Report Shows Need for New Strategies to Build Power
Click here: Study Reveals Cost of Hoffa's Broken "Cut and Cap" Promises
Click here: NLRB Statistics on Teamster Organizing
Coli, Under FBI Investigation, To Be On Hoffa Slate
October 30, 2005: At $345,408 total compensation, John Coli is the top Teamster fat cat in this year’s $100,000 Club. He is also the newest member of the Hoffa Slate. Coli has announced that news to various Teamster officials.
Coli is best known for his prominent role in the scandal that led Hoffa’s anti-corruption czar Ed Stier to resign last year, along with the entire staff of Project RISE, Hoffa’s anti-corruption program. Coli was accused of using his influence in the General President’s office to shut down Stier’s investigations into organized crime influence and corruption in Chicago. Hoffa pulled the plug on Stier’s investigations—and Stier resigned in protest—before these allegations against Coli could be proven. But here is what is definitely known about Hoffa’s newest running mate.
Coli is the head of the powerful Chicago Joint Council and of Local 727. He inherited the leadership of Local 727 in 1992 after his father retired and his brother was removed from the Teamsters by the Independent Review Board (IRB). Coli’s father was a member of the Chicago mafia, according to the Stier Report of 2004, but he himself has never been identified as a mob associate.
Coli’s local is being investigated by the FBI, and a Grand Jury has issued subpoenas regarding alleged kickbacks and fraud involving the members’ dental plan. A report by Stier details a scheme where money from the plan travels to an “insurer” owned by a Florida dentist, then to an account in Illinois, before a lesser amount is deposited in the dental service providers’ authorized account.
What It Means
Why would James Hoffa name this man to his slate, hoping to make him a top leader of the Teamsters Union? This is a man who inherited his power, is under FBI investigation, helped kill-off the Teamster anti-corruption program, and whose first love is the members’ money.
He is doing it because Coli is a Teamster power broker: he has personal influence in high places inside our union.
This is the same reason Hoffa put another Chicago power broker, Billy Hogan, on his slate ten years ago, until investigations of his operations got too hot. Eventually Hogan was removed from the union for trying to implement a sweetheart contract with a company that his family had an interest in.
This is the opposite of the way power should flow in our union. It should flow upward, from the members, stewards and local organizers. Leadership should be earned, not inherited or extorted. Leaders should be selected for their integrity and their ability to win strong contracts.
In 2006 Teamster members will have a choice between those two kinds of leadership.
Coli is best known for his prominent role in the scandal that led Hoffa’s anti-corruption czar Ed Stier to resign last year, along with the entire staff of Project RISE, Hoffa’s anti-corruption program. Coli was accused of using his influence in the General President’s office to shut down Stier’s investigations into organized crime influence and corruption in Chicago. Hoffa pulled the plug on Stier’s investigations—and Stier resigned in protest—before these allegations against Coli could be proven. But here is what is definitely known about Hoffa’s newest running mate.
Coli is the head of the powerful Chicago Joint Council and of Local 727. He inherited the leadership of Local 727 in 1992 after his father retired and his brother was removed from the Teamsters by the Independent Review Board (IRB). Coli’s father was a member of the Chicago mafia, according to the Stier Report of 2004, but he himself has never been identified as a mob associate.
Coli’s local is being investigated by the FBI, and a Grand Jury has issued subpoenas regarding alleged kickbacks and fraud involving the members’ dental plan. A report by Stier details a scheme where money from the plan travels to an “insurer” owned by a Florida dentist, then to an account in Illinois, before a lesser amount is deposited in the dental service providers’ authorized account.
What It Means
Why would James Hoffa name this man to his slate, hoping to make him a top leader of the Teamsters Union? This is a man who inherited his power, is under FBI investigation, helped kill-off the Teamster anti-corruption program, and whose first love is the members’ money.
He is doing it because Coli is a Teamster power broker: he has personal influence in high places inside our union.
This is the same reason Hoffa put another Chicago power broker, Billy Hogan, on his slate ten years ago, until investigations of his operations got too hot. Eventually Hogan was removed from the union for trying to implement a sweetheart contract with a company that his family had an interest in.
This is the opposite of the way power should flow in our union. It should flow upward, from the members, stewards and local organizers. Leadership should be earned, not inherited or extorted. Leaders should be selected for their integrity and their ability to win strong contracts.
In 2006 Teamster members will have a choice between those two kinds of leadership.
Officers’ Salaries: A Wide Range
October 30, 3005: Our study looked at the salaries paid by almost all Teamster locals. The data revealed a wide range of officer compensation:
• The median salary for a local union principal officer is $86,000. Half of all local principal officers make less than that.
• About one-third of local union principal officers make more than $100,000 in total salaries.
• Just 51 local union principal officers, or about 11 percent of those covered by the report, make total salaries of more than $150,000. Most Teamsters would agree that is excessive. Thirty-five of these 51 officials are on the Hoffa administration payroll.
• Twenty-two local union principal officers, or about 4 percent, get salaries of more than $200,000—and 18 of them are on the Hoffa administration payroll.
Each year, the Teamster Rank & File Education and Legal Defense Foundation (TRF) compiles and analyzes hundreds of Teamster financial documents filed with the Department of Labor. Convoy Dispatch publishes the results in the “$100,000 Club.”
At one time, the “$100,000 Club” was basically a list of Teamster fat cats. Over the years, inflation has pushed a growing number of officials who just slightly make six-figures into the club. In all, 368 officials make more than $100,000. Seventy-three of these officials make $150,000 or more. And 131 make $125,000 or more.
How much is too much? Should multiple salaries be banned? We give you the facts and lets you decide.
This study is non-partisan, and includes all Teamster officials, whether elected or appointed, reform or old guard.
• The median salary for a local union principal officer is $86,000. Half of all local principal officers make less than that.
• About one-third of local union principal officers make more than $100,000 in total salaries.
• Just 51 local union principal officers, or about 11 percent of those covered by the report, make total salaries of more than $150,000. Most Teamsters would agree that is excessive. Thirty-five of these 51 officials are on the Hoffa administration payroll.
• Twenty-two local union principal officers, or about 4 percent, get salaries of more than $200,000—and 18 of them are on the Hoffa administration payroll.
Each year, the Teamster Rank & File Education and Legal Defense Foundation (TRF) compiles and analyzes hundreds of Teamster financial documents filed with the Department of Labor. Convoy Dispatch publishes the results in the “$100,000 Club.”
At one time, the “$100,000 Club” was basically a list of Teamster fat cats. Over the years, inflation has pushed a growing number of officials who just slightly make six-figures into the club. In all, 368 officials make more than $100,000. Seventy-three of these officials make $150,000 or more. And 131 make $125,000 or more.
How much is too much? Should multiple salaries be banned? We give you the facts and lets you decide.
This study is non-partisan, and includes all Teamster officials, whether elected or appointed, reform or old guard.
Pension Legislation on Senate Rollercoaster
October 18, 2005: Pension reform legislation was approved by the Senate Health, Education, Labor and Pensions (HELP) Committee in early September and appeared to be on a fast track. But then business interests intervened and the bill was postponed, apparently until the end of the year.
The HELP bill would provide a range of financial relief to defined benefit pension funds, like the funds that cover many Teamsters.
A negative provision called the Red Zone amendment was not included in the HELP version—thanks to some hard work by Teamster local officers and rank and filers who traveled to Washington to meet with Senate staff about the provision. Had it not been defeated, it would have allowed troubled plans to cut back pension benefits that have already been accrued.
Different corporate and union interests have voiced opposition to the pension bill based on particulars of their industries. Continental and American Airlines opposed parts that would benefit their bankrupt competitors. General Motors and the United Auto Workers attacked a provision that would tie pension contribution requirements to a corporation’s credit rating, noting that the auto industry has cyclical ups and downs.
A coalition that includes UPS management, the IBT and some Teamster pension plans offered amendments to provide more breathing room for under-funded multi-employer plans that were hurt by the stock market in 2000-2001.
Meanwhile, the International Union has been on its own roller coaster regarding the legislation. Last spring, when the house passed a similar bill, HR 2830, the IBT was pressing locals to circulate petitions in support of the legislation. Later they said they would take a wait and see attitude, and in late September the IBT issued a bulletin stating they now oppose both the House and Senate versions as drafted.
The HELP bill would provide a range of financial relief to defined benefit pension funds, like the funds that cover many Teamsters.
A negative provision called the Red Zone amendment was not included in the HELP version—thanks to some hard work by Teamster local officers and rank and filers who traveled to Washington to meet with Senate staff about the provision. Had it not been defeated, it would have allowed troubled plans to cut back pension benefits that have already been accrued.
Different corporate and union interests have voiced opposition to the pension bill based on particulars of their industries. Continental and American Airlines opposed parts that would benefit their bankrupt competitors. General Motors and the United Auto Workers attacked a provision that would tie pension contribution requirements to a corporation’s credit rating, noting that the auto industry has cyclical ups and downs.
A coalition that includes UPS management, the IBT and some Teamster pension plans offered amendments to provide more breathing room for under-funded multi-employer plans that were hurt by the stock market in 2000-2001.
Meanwhile, the International Union has been on its own roller coaster regarding the legislation. Last spring, when the house passed a similar bill, HR 2830, the IBT was pressing locals to circulate petitions in support of the legislation. Later they said they would take a wait and see attitude, and in late September the IBT issued a bulletin stating they now oppose both the House and Senate versions as drafted.
International Union Election Timetable
October 12 , 2005: When Teamster reformers gather at the TDU Convention on Nov. 4-6, one item we will take up is launching a campaign to change the direction and leadership of the Teamsters Union in 2006. Candidates and campaign activists will present plans and discuss issues.
First up on the campaign will be the petition drive to officially accredit a reform slate in November and December. This will take the support of Teamster members across North America to ensure that a reform voice gets platform space in the Teamster magazine and gets access to the Teamster membership list. Also, a major fund drive will be launched to raise the war chest needed to win this campaign.
In January, nominations for delegates to the International Teamster Convention will take place in almost every local. Any Teamster can obtain a copy of your local’s election plan (with dates of nominations and ballot mailing, who will run the election, etc) by sending a written request to your local, right now.
Reformers are gearing up to send a strong delegation to that Convention next June 25-29, to work to win changes in our union constitution, fight to protect our pensions, and nominate a new leadership team to replace the Hoffa-Keegel slate. That election takes place a year from now, in November 2006.
If you want to learn more about the campaign for change, that will put our union on the winning track, contact TDU today.
Study Reveals Cost of Hoffa’s Broken “Cut and Cap” Promises
October 30, 2005: When Hoffa launched his candidacy for General President, he pledged to implement a series of financial reforms at the IBT. Instead, bloated IBT salaries and perks are at an all-time high.
Our $100,000 Club study reveals that Hoffa’s broken “Cut and Cap” pledge has cost our union more than $15 million since he took office in 1999. That’s $15 million that could have been spent to organize new members and increase our bargaining power—nearly four times what
Hoffa saved by pulling the Teamsters out of the AFL-CIO, a move that was supposedly made to free up resources for organizing.
Hoffa made his promises to “Cut and Cap” and “Eliminate Expensive International Union Perks” in an official Hoffa Slate platform. These broken promises include:
Hoffa promised to cap the General President and Secretary-Treasurer’s salaries at $150,000 a year. Hoffa’s salary in 2004 was $251,529; Secretary-Treasurer Tom Keegel’s was $228,277. This broken promise drained $179,806 from the treasury in 2004.
Hoffa promised to cap the aggregate salaries of everyone on the IBT payroll at $150,000. Our $100,000 Club data reveals that 44 officials on the Hoffa payroll are in violation of this cap. The cost of this broken promise for 2004 alone was more than $1.66 million.
Hoffa 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 119 International officials listed here, this is costing Teamsters $628,000 every year.
Hoffa also broke his promise to prohibit payment of housing expenses for officials in Washington, D.C. He pays himself and Keegel about $66,000 a year to live in a fancy Washington hotel. Hoffa and Keegel signed checks of $2,000 a month for a phony housing allowance to Carlow Scalf until the IRB caught wind of it and forced Scalf to pay the money back.
TDU members intend to give Hoffa a second chance to implement his abandoned reforms by submitting them to a binding vote at the 2006 IBT Convention in Las Vegas.
Click here: Organizing Report Shows Need for New Strategies to Build Power
Click here: IBT Organizing Lags Again in 2004
Click here: NLRB Statistics on Teamster Organizing
Our $100,000 Club study reveals that Hoffa’s broken “Cut and Cap” pledge has cost our union more than $15 million since he took office in 1999. That’s $15 million that could have been spent to organize new members and increase our bargaining power—nearly four times what
Hoffa saved by pulling the Teamsters out of the AFL-CIO, a move that was supposedly made to free up resources for organizing.
Hoffa made his promises to “Cut and Cap” and “Eliminate Expensive International Union Perks” in an official Hoffa Slate platform. These broken promises include:
Hoffa promised to cap the General President and Secretary-Treasurer’s salaries at $150,000 a year. Hoffa’s salary in 2004 was $251,529; Secretary-Treasurer Tom Keegel’s was $228,277. This broken promise drained $179,806 from the treasury in 2004.
Hoffa promised to cap the aggregate salaries of everyone on the IBT payroll at $150,000. Our $100,000 Club data reveals that 44 officials on the Hoffa payroll are in violation of this cap. The cost of this broken promise for 2004 alone was more than $1.66 million.
Hoffa 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 119 International officials listed here, this is costing Teamsters $628,000 every year.
Hoffa also broke his promise to prohibit payment of housing expenses for officials in Washington, D.C. He pays himself and Keegel about $66,000 a year to live in a fancy Washington hotel. Hoffa and Keegel signed checks of $2,000 a month for a phony housing allowance to Carlow Scalf until the IRB caught wind of it and forced Scalf to pay the money back.
TDU members intend to give Hoffa a second chance to implement his abandoned reforms by submitting them to a binding vote at the 2006 IBT Convention in Las Vegas.
Click here: Organizing Report Shows Need for New Strategies to Build Power
Click here: IBT Organizing Lags Again in 2004
Click here: NLRB Statistics on Teamster Organizing