Hoffa Gave Approval with No Questions Asked
IRB Uncovers $900,000.00 Embezzlement in Indiana
The Independent Review Board (IRB) has uncovered a scheme "to launder money siphoned from members to fund additional benefits [for Teamster officials] unrelated to any union purpose." The Indiana Teamster officials involved in the plan, which the IRB says led to the embezzlement of $893,553.00 of dues money, include Central Region Vice President Walt Lytle. TDU claims that this is another example of some in the Teamster hierarchy living high off the members' dues without regard for how they get their money. Lytle strongly disagrees. He say the IRB report is "pure innuendo" the facts do not substantiate it." He also said officers work hard and deserve multiple pensions.
The scheme began in 1994 when former Teamster president Ron Carey abolished the Area Conferences, a layer of bureaucracy that paid out 63 multiple salaries to top Teamster officials. Indiana officials saw a chance to divert dues money to their own officers-only "Severance and Retirement Plan." Walt Lytle admitted to the IRB that "we said that's money nobody would miss" because previously it was dues paid to the then-abolished Area Conferences, and members would be kept in the dark about the deal.
The 34-page IRB report recommended that Indiana Joint Council 69 be placed into trusteeship. Hoffa promptly rejected this recommendation and instead sent in a representative who will later hold a hearing on the issue of trusteeship.
The IRB further calls for the money improperly taken from the members be returned to the members," a refund of the $900,000.00
International Vice President Lytle says that if the money is returned, the delegates to the join council could simply approve a new dues payment to replenish their pension money.
Hoffa Turns Blind Eye
Incredibly, Hoffa approved the dues diversion retroactively, without making any inquiry about where this huge sum of money was going. In February 2000, after the IRB launched its investigation, the president of the Joint Council 69 requested retroactive approval (six years!) from Hoffa for a change in the bylaws. Hoffa promptly granted it, without any question where the money was going. Or worse, Hoffa did know where it was going and approved it anyway.
At the same time Hoffa also retroactively approved seven other increases in funding for the Indiana Conference of Teamsters, which covered 16 years and over $2.5 million, went to the same extra benefit plan for officials. While the IRB has not announced any action on this matter, if Hoffa is serious about cleaning up the union and protecting the members' money, he will take action now to recover that $2 million, without waiting to be forced to do so by the IRB.
The IRB's report detailed that the Indiana Joint Council exists "not for any union purpose but solely to fund an addition benefit" to officials, which was illegally kept secret from members.
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The IRB's report detailed that the Indiana Joint Council exists "not for any union purpose but solely to fund an addition benefit" to officials, which was illegally kept secret from members. __________________________________________________
The report notes that the joint council's minutes in six years "reflected no resolution of jurisdictional disputes, no votes for strike authorization, no recommendation for out of work benefits for members, no hearings on grievances" only transfers of money.
The IRB also noted that Indiana officials schemed to avoid the scrutiny of former Teamster president Ron Carey, who appointed a personal representative to the Indiana Joint Council in 1996. For 18 months Carey's representative blocked the money transfers, but after he left JC 69 immediately transferred $204,505.00 for that 18-month period.
TDU Calls for Action
Here is what needs to be done to end these corrupt deals and put our union's money to work for the members:
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Open an investigation into Teamster structures where similar scheme may be in place. These may include hidden perks schemes in the Ohio Conference, Kentucky-West Virginia Conference, Missouri-Kansas Conference, and others.
Open an investigation into Teamster structures where similar scheme may be in place. These may include hidden perks schemes in the Ohio Conference, Kentucky-West Virginia Conference, Missouri-Kansas Conference, and others.**International auditors, who have been deployed be Hoffa as political operatives to harass reform leaders, should instead be ridding our union of all hidden perks for officials.
International auditors, who have been deployed be Hoffa as political operatives to harass reform leaders, should instead be ridding our union of all hidden perks for officials.**Abolish do-nothing Teamster structures such as the Indiana joint council, with the monies returned to the locals and members.
Abolish do-nothing Teamster structures such as the Indiana joint council, with the monies returned to the locals and members.**Hoffa says he wants to be "ethical." Instead pf approving schemes and then covering up after them, he needs to start cleaning up this corruption.
Hoffa says he wants to be "ethical." Instead pf approving schemes and then covering up after them, he needs to start cleaning up this corruption.