Teamster Financial Report Shows Record Loss of Members and Money
Organizing, Funding Down Despite Record Dues Increase
April 30, 2003--A detailed analysis of the International Brotherhood of Teamster's financial report for 2002[1] reveals some shocking irregularities. The Teamster reform movement calls on President James P. Hoffa to provide Teamster members with honest answers to the troubling questions that are raised by the report.
Record Loss of Members
The report states that the Teamsters union suffered the largest net loss in membership in its entire history. According to the union's own documents, Teamster membership fell from 1,398,000 to 1,350,000 in just one year a net loss of 48,000 members. In the mid-1990s the Teamsters union started to grow once again. Then, after Hoffa took office, small losses in membership came each year. Now we are faced with this enormous loss. Teamster members deserve a full explanation.
Record Loss of Money
The report states that Teamster net assets fell by $61 million in 2002 the same year as the largest dues increase in Teamster history. The $61 million budget deficit is so astronomical as to draw into question the accuracy of the whole report. Did the IBT really lose this unbelievable sum? Or did our General President and Secretary-Treasurer, who pride themselves in their "strict financial oversight", sign financial documents that are inaccurate? Either way, Teamster members deserve a full explanation.
Record Boost in Housing Perks
The report reflects that three top Teamster officials dramatically hiked their "housing allowance." General Secretary-Treasurer Tom Keegel received $42,000, James Hoffa took $30,000 and Hoffa's assistant Carlow Scalf bagged $28,000. This housing allowance comes on top of the more than $200,000 that they each take home from Teamster members' dues money.
When Hoffa and Keegel ran for office, they bragged that they would sell the condominiums the IBT used to provide housing for some officials (the previous General President, Ron Carey, paid for his own housing). Hoffa and Keegel followed through on that promise. However, rather than saving members money, it appears that our union officers are living in upscale D.C. hotels with members' dues picking up the tab.
For the price they are paying to live in these hotels, our union could buy a house or condo for each of these officials at a great savings. Teamster members deserve an explanation for this financially irresponsible practice.
Fraudulent Reporting
Once again, Hoffa and Keegel signed a financial report that undercounts the number of Hoffa administration officials who receive multiple union salaries. This is the fourth consecutive year that Hoffa and Keegel have misreported these facts to the members and the Department of Labor.
TDU Calls for Explanation
"Hoffa ran for office saying he would 'Restore Teamster Power,'" said TDU co-chair Michael Savwoir, a truck driver for UPS out of Kansas City Local 41. "Instead, this report shows we've gotten less for more. The same year Teamster members are hit with a huge dues increase, we see our union's organizing drop and our finances fall through the floor. What's going on?"
Teamster members have a right to the straight story about how their dues money is being spent. TDU will be investigating and will ensure that members get the facts on our union's finances even if that takes legal action.
TDU will also publish, after extensive research, our annual $100,000 Club report with detailed information on our union's finances, including a complete list of all Teamster officials who take home more than $100,000 a year in union salaries.
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[1] This information is derived from the LM-2 financial report for 2002 filed by the International Brotherhood of Teamsters with the U.S. Department of Labor. (This form is available at http://union-reports.dol.gov; however at the present time the Labor Department still has the form for 2001 posted.)
