Hoffa Cuts Representation, Not Salaries
September 28, 2010: The International Union is losing members, losing revenue, and cutting organizers and representation.
Teamster members are sacrificing to save our jobs and our union. Why aren’t top officials doing the same?
Pensions cuts. Layoffs. Pay cuts. The Great Recession has hit working Teamsters hard.
And our union has been hit hard, too. We’ve lost some 100,000 members and dues revenue is down. Our locals and our International are feeling the pinch.
But a comprehensive analysis of Teamster financial documents shows that instead of belt-tightening, top Teamster officials have bulked up.
Last year, 120 Teamster officials made over $150,000 in salary. On average, they each got a $6,624 raise. Thirteen of them got a raise of over $20,000 last year.
Those are the findings of the $150,000 Club Report a comprehensive analysis of Teamster financial documents and officer compensation by the Teamster Rank and File Education and Legal Defense Foundation (TRF), the legal and education arm of the Teamster reform movement.
These numbers should be a warning sign for the union’s top leaders. Instead, all we’ve seen from the Hoffa administration is “What, Me Worry?”
100,000 Members Gone
Official union records show that the IBT lost over 38,000 members from 2008 to 2009—and unofficial reports point to the number being closer to 100,000 by 2010.
The IBT’s revenues are down too. Per capita dues, which locals pay from members’ dues to the IBT, dropped $6 million last year and is dropping more this year.
Hoffa could have reacted by trimming the salaries of officials at the top. Instead, he has made cuts and eliminated jobs in membership services, organizing and representation.
Salaries Go Up
The 2009 $150,000 Club Report shows more top officials making more money than ever:
- 120 Teamster officials made over $150,000 in salary—the largest number ever.
- 40 officials made over $200,000 last year—also the largest number ever.
- On average, those officials each got a $6,624 raise. Thirteen of them got a raise of over $20,000 last year.
Hoffa paid multiple salaries to 142 Teamster officials in 2009—no cuts there.
There’s an election next year and Hoffa’s job is on the line. Is he trying to use the power of patronage to buy support?
What We Could Do with the Money
What would happen if our union cut the waste at the very top?
If the officials in the $150,000 took a 10 percent cut, our union would save $3.2 million—money we could use to put some 30 new organizers out in the field.
When Hoffa first ran for office, he promised to “cut and cap” official salaries at $150,000. If he had made good on his promise, he would have saved our union over $5 million in 2009.
Hoffa could have cut at the top. Instead he chose to cut representation.
He’s putting personal loyalty ahead of our union’s best interests.
Click here to read the 150,000 Club Report
What, Me Worry?
James Hoffa—Total Compensation $362,869, including a lucrative “Housing Allowance” he set up for himself. Instead of freezing his salary or taking a 10 percent cut, he took a Cost of Living Raise.
The Top Dog
Terry Hancock, Salary: $347,007
Heads up Local 731 in Chicago, where he made a construction deal which undermined other locals in the Chicagoland area. He settled with Waste Management last year while Milwaukee Local 200 WM Teamsters were on strike—they lost their ability to extend picket lines and then lost their Teamster pension as a result.
Reportedly he is being investigated by the Department of Labor.
Concessions for All (But Me)
Randy Cammack, Salary: $275,274
A top freight leader in the Hoffa administration, Cammack has promoted every concession to come down the pike. But he himself took an $18,000 raise last year. That’s a $9 per hour hike—while many of his Local 63 members took pay cuts.
Had Enough of Hoffa?
September 28, 2010: Teamster members can elect leadership that will fight for us.
Members are organizing now to make it happen in 2011.
Tough times require tough leadership. Our Teamsters Union was once known for its toughness. Today members face the worst benefit cuts and contract concessions in our history.
When he ran for General President, Hoffa told Teamster members, “The Hoffa name means power.” But the only power we’ve seen is the power that has gone to Hoffa’s head.
It’s time for change. The 2011 Teamster election is our chance to make it happen.
“Hoffa’s support is at rock bottom especially with everything that’s been happening in freight, carhaul, and UPS,” said Wes Epperson, a UPS driver in Kansas City Local 41. “I tell people we can elect leadership at the IBT that will fight for us, but if that’s what we want, we’ve got to get involved.”
Candidates will be officially nominated at the Teamster Convention next June.
Members in many locals are holding meetings now to prepare to run for Convention Delegate—nominations will be held in January or February in almost all locals.
Across the country, members are taking steps to build the volunteer army we will need to vote out Hoffa and elect leadership that will fight for the members.
“It will take 175,000 votes to elect the next General President,” said John Youngermann of St Louis Local 688. “We need to reach members with the simple message that their vote gives them the power to win a stronger union.”
Have you had enough of Hoffa? Do you want to attend a meeting in your area to talk about what can be done? Are you willing to volunteer your time to save our union—and elect leaders that will fight for us?
Let’s get together—for a change.
Letters from Our Members
September 28, 2010: YRC Teamsters covered by the Western Conference are in danger of losing early retirement. The Fund requires “500 hours of contributory service in the past 18 months” to retire under the PEER 80, 82, 84 plans.
It appears that YRC may not return to making pension contributions in January 2011. What can we do to get PEER 80?
The Western Conference prohibits self-contributions. Is there another viable option? Could the Pension Fund waive this rule for YRC Teamsters?
After much thought, I suggest the Fund allow members to designate where their benefit contribution be assigned, if YRC is not going to resume pension contributions in January.
If the member chooses the Health and Welfare Trust, they would continue to have their health insurance completely funded.
If the member chooses the Pension Trust, they would have their pension funded but would have to pay a large part of their health insurance premium.
The details and duration of this concession would have to be worked out. It could only be an interim measure to ensure that Teamsters who have been paying 17 percent of their pension to a PEER option would be able to use their PEER option.
Thousands of Teamsters have contributed to the Western Conference Fund for 20 plus years and deserve the early retirement they have earned.
The IBT and YRC should do everything they can to honor their commitment and make this a positive solution in tough times.
Chuck Deaver Local 174, Seattle YRC
Keep Up the Good Work
Keep up the good work guys and gals!
We definitely need TDU to keep a watchful eye over our sometimes not too honest International.
I am enclosing an extra $10 just to help out.
Tim Huettl Local 563, Retired Seymour, Wisc.
Done Riding in the Back of the Bus
September 28, 2010: These Teamster bus workers make less than the minimum wage!
Now they’re uniting with TDU to enforce their rights and win the pay they deserve.
The Department of Labor is investigating outrageous wage and hour violations at a Brooklyn-based bus company represented by Teamsters Local 854.
Under their Teamster contract at Outstanding Transportation, bus aides, called matrons, make as little as $175 a week to monitor the safety of the physically and mentally disabled adults they transport every day to programs around the city.
The contract defines the work week as 40 hours in five days. The company claims that matrons work only five hours a day. The matrons, who are tracking their working hours, say they work much more.
“It’s Not Fair”
“It’s not fair, and we’re coming together to enforce our rights,” said Kim Session, a shop steward at Outstanding. “If we don’t stand up for ourselves, we can’t get what we deserve. TDU has opened our eyes and we’re more united than ever before.”
Members from other Local 854 bus companies and other concerned TDU members reached out to the workers at Outstanding with leaflets.
More than 90 members attended an organizing meeting. Workers formed a committee to keep members informed and mobilized to enforce their rights.
Dozens of workers have testified as part of the DOL investigation. And more than 100 drivers and matrons have signed group grievances demanding minimum wage, overtime, and extra pay for field trips which is guaranteed in the contract.
The Daily News, one of New York’s biggest papers, has run a series of exposes on the scandal.
Under state wage and hour laws, the Teamster bus matrons at Outstanding are entitled to weekly pay of $315 for a 40-hour week—$140 more than the starting pay of $175 a week in the union contract. Teamster drivers at Outstanding make as little as $360 a week.
Some drivers and matrons work more than 40 hours a week—with no overtime pay. In addition to doing morning and afternoon runs, they do field trips in the middle of their work day.
“Sometimes I work four field trips a week, plus Saturdays,” said bus aide Elaine Mallard. Even when she works six days, Mallard is paid less than minimum wage and gets no overtime pay. She has been a Teamster for nearly three years.
Denials and Excuses
The company, of course, denies it is doing anything wrong. They have even denied that the DOL is investigating. The DOL has publicly confirmed the investigation.
More incredibly, Local 854 officials have defended the situation in the press. They told the Daily News that the contract, which pays less than minimum wage, “improves a bad situation.”
“It’s the same kind of treatment that we’re getting from 854,” Pierre Jerome, a school bus driver and 854 member at Empire Bus Transit, told the Daily News. “The union is in bed with company.”
Jerome, a TDU member, helped workers at Outstanding start organizing. His boss at Empire, John Curcio, is the father of Charles Curcio, who owns Outstanding.
Local 854 has always been a family affair. A third Curcio—Joseph Curcio—was able to organize into Local 854 because of his relationships with organized crime family members. This is according to a report put together by former federal prosecutor and Teamster anti-corruption watchdog Ed Stier.
Today, the mobsters who controlled Local 854 are dead. But the Curcio family continues to dominate Local 854—employing many of the local’s 2,500 members under substandard contracts.
With the help of TDU, workers at all of the companies owned by the Curcios are uniting for change.
“The companies and our own union have treated us like second-class citizens for too long,” said Angel Garces, a TDU member at Consolidated Bus Transit. “It’s time for change.”
Hoffa's Record In Freight
In 2003, Hoffa boasted, “Today we have restored Teamster pride. We have restored Teamster power....”
What's his real record in freight?
Pensions in Danger
Hoffa promised to strengthen our pensions.
Now his promises have turned into excuses.
Weak Enforcement
It’s not enough that YRC Teamsters gave up wages and pension contributions.
Our union is letting management get away with subcontracting, forced overtime with hundreds laid off, and dubious changes of operation.
Growth Industry, Shrinking Union
Our ranks in freight are a third the size of what they were when Hoffa took over.
Trucking is a growth industry. Companies can’t export it overseas.
A Substandard Deal at UPS Freight
At the 2006 Teamster Convention, Hoffa announced he had a deal to bring 15,000 UPS Freight Teamsters into our union. He got a huge cheer from the crowd.
But the high hopes have not been met.
They Have to Go
“With Hoffa and Johnson, it’s always about, ‘We’re monitoring the situation.’ All that got us was a lighter wallet and a ton of anxiety.“We’re supposed to sacrifice while they keep raking in the big bucks. Do the math. It all adds up to these guys have to go.”
Jimmy Rickert, YRC Local 771, Lancaster, Penn.
Our Vote Matters
“Teamster members learned a good lesson at ABF when we voted down the wage giveback: Our vote matters!
“We need to exercise that right to vote when it comes to officers. We need a leadership that works on labor’s behalf. Hoffa Jr. and Tyson Johnson have to go.”
Stan Smith, ABF Local 728, Atlanta
Give Us the Straight Story
“It looks like the recession is over at Holland. We’re running full speed and they’re hiring off the street.
“Hoffa and Johnson are supposed to have access to the books. Let’s make sure they give us the straight story on finances before they come back to us with any more givebacks.”
Joe Medrano, Holland Local 299, Detroit
TDU Convention: I’ll Be There
“I plan to be at my first TDU Convention in Chicago. I’m looking forward to talking with other Teamsters about all the issues we face. I feel as a whole our union is at a crossroads, especially those of us in the freight industry. I’m excited to see what thoughts and ideas arise from the classes and discussions TDU will be providing. Perhaps this will spark the change we so desperately need.
Curtiss Zeolla, ABF, Local 710, Chicago
YRCW Concession Vote
September 28, 2010: As we go to press, local union officials from freight locals are meeting to hear the tentative agreement that the International Union has reached with YRCW.
Then the decision will be in the hands of YRCW Teamsters.
YRCW Teamsters, working and laid off, will be entitled to vote on the concession proposal in the October mail referendum.
The International union has recommended that all freight locals schedule YRCW membership meetings for Oct. 2-3 or Oct. 9-10 weekends.
Teamsters for a Democratic Union is the source for accurate information to make an informed decision on our future.
Click here to get more Freight Updates.
Pensions in Danger
September 28, 2010: Hoffa promised to strengthen our pensions.
Now his promises have turned into excuses.
One of the very best things about having a Teamster contract is a pension you can count on. A pension with 25-and-out or 30-and-out, at decent benefits.
Teamsters of all political persuasions have consistently supported adequate pension funding, even foregoing good wage increases. Under Teamster President Ron Carey we won superior pensions that were the envy of workers in other industries.
Hoffa has had no plan to protect pensions. Just promises … and then later, excuses.
He cut a secret deal with UPS to pull out of the Central States Pension Fund and undermine it.
YRC Teamsters have agreed to forego any pension contributions, an unprecedented concession, in the face of no union plan.
In return, they don’t even get the truth from the IBT Freight Division. Tyson Johnson repeatedly claimed that each concession would be the last.
Right now the PR department is working on the right excuse for him to give members.
After UPS left the fund, other companies want to leave. The International Union needs to draw a line in the sand, and support local unions to defend Teamster pensions, because individual locals should not be left to fight alone. Hoffa has not made this battle a priority.
The Hoffa administration is supporting a bill in the U.S. Congress that will help all multi-employer funds. This is a start, but where is the plan to get it enacted?
Ask yourself this: has the Hoffa administration ever asked you to join in a campaign, or to march on Washington, to defend pensions?
Weak Enforcement
September 28, 2010: It’s not enough that YRC Teamsters gave up wages and pension contributions.
Our union is letting management get away with subcontracting, forced overtime with hundreds laid off, and dubious changes of operation.
Hoffa has even gone along with company plans and set up a “Competiveness Committee” made up of Johnson, Gordon Sweeton and other officers to meet with the YRC Board and management big shots.
You don’t have to have much of an imagination to know how “competiveness” will play out for working Teamsters.
ABF management has definitely noticed what’s going on at YRC. Management sees the green light for YRC and demands the same. It’s open season for management and Teamster members are the casualties.
Why have tough times meant concessions are a one-way street? Where is the Hoffa and Johnson plan to enforce the contract and win some for our side?
Growth Industry, Shrinking Union
September 28, 2010: Our ranks in freight are a third the size of what they were when Hoffa took over.
Trucking is a growth industry. Companies can’t export it overseas.
But our ranks in freight are a third the size of what they were when Hoffa took office in 1998—even while overall trucking numbers grew.
Organizing is hard, but it can be done. Not with secret deals, but with mobilizing Teamsters, a commitment of resources, and a long term plan.
That kind of commitment won’t yield a quick fix or press release. And to get the resources needed, it may be necessary to cut back on multiple salaries at the top. Those commitments have been lacking.
A Substandard Deal at UPS Freight
September 28, 2010: “We were committed to providing the best contract we could for these workers and we have achieved that.”
- Ken Hall, May-June 2008 Teamster magazine.
“Our contract is a big disappointment. Ken Hall told us this was the best we could get. It’s not much given what we expected from the Teamsters.”
- G.W. Owensby, UPS Freight, Local 41, Kansas City
At the 2006 Teamster Convention, Hoffa announced he had a deal to bring 15,000 UPS Freight Teamsters into our union. He got a huge cheer from the crowd.
But the high hopes have not been met.
Hoffa didn’t mention that their contract would be a substandard white paper contract without Teamster benefits. And he didn’t mention that he secretly agreed to let UPS pull 44,000 Teamsters out of the Central States Pension Plan.
Contract enforcement has been weak at best: work rules promised in Article 41 have not materialized. Subcontracting protections of Article 44 have not been enforced, so Teamster jobs have been lost.
The promises have now been replaced by excuses.