Posts tagged financial misconduct
Eaton Worker’s Federal Complaint Sheds Light on Union Fee Threats in St. Louis
August 29, 2025 // Another critic, the nonprofit Institute for the American Worker (I4AW), highlighted the LMRDA’s origins in addressing labor corruption and stressed the importance of robust financial reporting. I4AW expressed concern that the current proposal focuses too heavily on reducing paperwork rather than preserving oversight. They recommended reconsidering OLMS’s 2020 proposal, which raised thresholds more moderately and introduced a “long form” LM-2 for the largest unions. I4AW also cited recent criminal convictions for embezzlement and financial misconduct involving union officials whose unions would have benefited from the proposed threshold increase, underscoring the need for strong reporting to prevent abuse.
Unveiling Financial Transparency Failures in Labor Organizations
July 24, 2025 // In 2024 alone, the DOL recorded 177 union enforcement actions involving fraud, embezzlement, wire fraud, and falsified records. These are only the crimes that rise to the level of federal prosecution. Far more ethical violations, financial misuses, and questionable behaviors fall below the radar leaving union members in the dark and are quietly buried through internal repayments, hush resignations, or legal threats — all without any formal DOL investigation or public accountability. Despite 16 years as a union official, I did not become aware of the existence of LM-2 financial disclosure filings until our local filed a lawsuit against our state affiliate. Imagine that: even as a union president and past treasurer, I was unaware that both our state and national unions were required to submit LM-2 forms to the Department of Labor. If someone like me — deeply engaged in union governance — was kept in the dark, how can we expect average members to know their rights, much less exercise them?
There’s a Crisis Brewing at UAW
July 10, 2025 // Fain allegedly engaged in other behavior unbecoming of a union leader. According to the report, he launched into a “tirade” over printed material describing the UAW’s tentative agreement with Stellantis, yelling, “Who told you to put [Mock’s] motherf***ing photo on there? This is my motherf***ing membership.” He then allegedly shouted, “who the f**k runs this mother***ing department?” The report notes that the UAW employee on the receiving end of Fain’s outburst was left shaken and in tears. In a response submitted to the court on June 20, Harold Gurewitz, the UAW’s attorney and a criminal-defense specialist, argued that the union’s decision to remove Mock’s responsibilities “should not be subject to judicial or governmental interference.” Regardless of the legal merits, the idea that the union president’s personal judgement, no matter how irrational or corrupt, is beyond scrutiny is likely to rankle union dissidents. Some staged a “No Kings” rally outside UAW headquarters in Detroit following the release of the monitor’s report—a message aimed at President Fain, not President Trump.
Chapter leaders allegedly mishandled over $100,000 in major federal union’s funds
May 28, 2025 // When Bruce took two trips from San Diego to suburban Washington, D.C., with his labor union leaders, and submitted $3,500 in expense reports for a daily rate, hotel, taxis, and airfare. His union president, who traveled separately, got reimbursed for about $8,500. But after Bruce got elected to a leadership position within the union, he found irregularities in the chapter’s records. Two iPads and an iPad mini were purchased for the chapter president in a three-year period. A $12,000 storage unit was approved by the treasurer, who made checks out to someone with her own last name to clean it out. A man with no formal position in the union signed checks, including to himself. In total, Bruce alleges that more than $116,000 went missing from the National Treasury Employees Union Chapter 212 in San Francisco, which represents about 900 workers within the Department of Health and Human Services. No one has been charged with a crime in relation to the missing funds. The Department of Labor indicated it in April it had pending "investigative proceedings" related to the chapter.
Opinion: Big Labor Bullies
September 3, 2024 // For many unions, the corruption isn’t even in the past. The United Auto Workers today operates under the watch of a court-appointed monitor, who is currently investigating president Shawn Fain for financial misconduct and workplace retaliation. This summer, the IBEW Philadelphia local had its longtime president and business manager each sentenced to federal prison for bribery and embezzlement. This isn’t a case of a few bad apples ruining the bunch. Corruption is systemic to American unionism, and it has been for over 100 years. For a long time, these bullies had disproportionate economic and political power, and that rubbed many Americans the wrong way.
As UAW ‘is being watched with a microscope,’ new investigation puts Fain in crosshairs
July 1, 2024 // The Free Press has made numerous requests — none granted — over the years, including following the release of the latest status report, to interview the monitor, Neil Barofsky, a former assistant U.S. attorney and current partner in the Chicago law firm Jenner & Block. The consent decree stemming from the union's corruption scandal sets in place a six-year term of oversight by the monitor. Barofsky’s appointment was OK’d by U.S. District Court Judge David Lawson in May 2021. The monitor’s charge is broad, with the consent decree giving him “the authority and duty to remove fraud, corruption, illegal behavior, dishonesty and unethical practices from the UAW and its constituent entities.” The oversight by the independent monitor means that internal divisions and disagreements in addition to specific actions are much more likely to be brought to light. Masters described the situation as a fishbowl.