Posts tagged SCANDAL
EXCLUSIVE: Congress Asks Union About Blunder That Reportedly Sent About $80 Million Down The Toilet
September 16, 2025 // United Auto Workers (UAW) has not disclosed what happened to $340 million it used to cover strike costs in 2023 while promising to reinvest the funds, the House Education and Workforce Committee told the union in a letter scheduled to be sent Thursday. The committee is requesting documents and information on the alleged blunder, which angry UAW officials claimed cost an estimated $80 million in potential gains, according to a Reuters report cited in the letter. Failing to reinvest the funds may have violated UAW’s fiduciary duty under the Labor-Management Reporting and Disclosure Act (LMRDA), ushered in higher dues, led to lesser strike benefits for members and made them miss out on stock market surges that followed President Donald Trump’s reelection in November, according to the letter.
Opinion: Hochul must shame LIRR unions —by revealing their outrageous strike demands
September 15, 2025 // The agency’s overtime spending regularly stands out by national standards (only periodically rivaled by the MTA’s other big rail outfit, Metro-North, which is stuck operating under the federal law that governs the LIRR). LIRR employees in 2023 made an average of more than $26,000 each in overtime alone.
Members of Warren union local move forward with effort to oust UAW president
August 3, 2025 // According to copies of the charges reviewed by the Michigan Advance, Fain is accused of dereliction of duty, financial mismanagement, retaliation against union members, hiring non-UAW personnel for positions that should be filled by union members, and failing to comply with the conditions of a consent decree appointing an independent monitor to investigate misconduct and remove fraud, corruption, illegal behavior, dishonesty and unethical practices from the union.
Union drive at Wells Fargo heats up as employees allege intimidation tactics
October 21, 2024 // After Wells Fargo was mired in a 2013 scandal over employees who opened millions of fake banking accounts, the bank created a new centralized unit to review customer complaints and employees’ allegations of workplace abuses. Now, however, that team is upended by its own turmoil as its members have accused bank officials of aggressively trying to block a unionization drive and firing employees in retaliation for their efforts to organize.
Rigged: The fight over a union election in New York City
April 3, 2024 // According to Local 983’s filings, Puleo in 2022 received $349,083 in compensation from the union, more than 10 percent of the $3.2 million Local 983 received from membership dues, meaning at least ten cents of every dollar members paid the union for representation went to him. Puleo gets an extra bump of $22,522 from the District Council, bringing total pay in 2022 to $371,605, putting his pay just above that of DC 37 Executive Director Henry Garrido, and well above the compensation for Mayor Eric Adams and New York Governor Kathy Hochul. Puleo and his union administration had won election in 2013 over long-time incumbent Mark Rosenthal. Rosenthal had been elected to union leadership in 1998 following a corruption investigation that revealed a “vast pig-sty of corruption, self-dealing, lavish party going, and vote rigging,” according to City Journal. The scandal within DC 37 saw union local presidents in handcuffs and DC 37 placed under trusteeship by AFSCME International. Rosenthal came in and cleaned house. When he was elected, it was the first contested election in 20 years and it was not without controversy, including accusations of threats and intimidation. Puleo won an election in 2013 over the aging Rosenthal, who since passed away in 2017, and has been at the helm of Local 983 ever since.
Fed-up and furious: Gov urged to put State Police into receivership
February 8, 2024 // Galvin said a key issue still not addressed is the power the State Police union has, especially having sergeants allowed in the union as they oversee troopers who are fellow members. "The union has way too much power," he said. "It's an investigation of power from the Legislature on down with no oversight." All this, he lamented, as they MSP "goes down the tubes."
The Year of the Union…Corruption?
February 1, 2024 // According to an annual report by the Office of Labor Management Standards (OLMS), over 155 criminal investigations into union-related activity were completed over the past year. As a result, the OLMS distributed 39 indictments and collected 57 convictions for numerous offenses ranging from petty theft to labor racketeering. While these findings are certainly disturbing, they likely only represent a drop in the bucket of national union corruption. This is because, according to the Department of Labor, it is simply “not feasible” to audit every union. Instead, forced to optimize limited resources against widespread corruption, the OLMS has developed an auditing methodology for unions whose “metrics suggest the possibility that there may have been criminal activity.” In 2023, the OLMS conducted 222 of these targeted audits, ultimately finding that 18.3% of these cases warranted criminal action. With nearly 1/5 of audits uncovering some form of wrongdoing, even in the limited sampling size permitted by OLMS resources, it is fair to say that corruption is entrenched within the American labor movement.
UAW President Shawn Fain plans to keep automakers sweating
January 1, 2024 // "I don't like what I've seen in my work career with the UAW leadership, where they were too damn close to the companies," UAW President Shawn Fain told CNN earlier this month. But when asked if things work better for his members when there's a less contentious or more contentious relationship between the UAW and the Big Three, Fain responded, "We just negotiated the most successful contracts in our history," he said. "For the last 30 years that I've been a member, we went backwards. So I like to let the body of work speak for itself," Fain said. The success of those contracts is the reason that Shawn Fain is CNN Business' labor leader of the year.
UAW caught using threats and coercion to illegally seize workers’ dues
September 27, 2023 // Green’s federal charges against the union maintained not only that UAW officials had made her jump through unnecessary hoops to exercise her right to cut off union dues, but also that UAW bosses made threats against her job when she tried to resign, with one union official warning her “if it were up to me, you’d lose your job for leaving the union.” Green’s settlement also forced UAW officials to refrain from such illegal threats in the future. Meanwhile in Iowa, four employees of air filter manufacturer Donaldson won a recent settlement in which UAW officials were required to return over $1,000 in illegally-seized dues. In each Donaldson worker’s case, UAW bosses had either refused to stop dues deductions despite producing no original documentation showing the workers had consented to such deductions in the first place, or had kept seizing money after an employee resigned union membership and revoked authorization to deduct dues, which should have been effective in stopping the flow of dues.
From Detroit to Hollywood, New Union Leaders Take a Harder Line
August 18, 2023 // The full-throated demands can also backfire in economic terms. Yellow, a trucking company with 30,000 employees, declared bankruptcy several months after talks with the Teamsters broke down. The company’s chief executive said in a statement that the Teamsters’ intransigence drove Yellow out of business, though analysts note that the company showed signs of mismanagement for years. The risks may be even higher in industries under pressure to embrace a new business model. The major U.S. automakers have said that they need the ability to team up with nonunion battery manufacturers to secure additional capital and expertise. But Mr. Fain, the new U.A.W. president, has said that the failure to organize more battery workers was a major failure of his predecessors, and that battery workers must receive the same pay and working conditions that union workers enjoy at the Big Three. Many U.A.W. members say the tension between the automakers’ goals and the union’s indicates that a strike will be hard to avoid when their contract expires in mid-September. But they do not appear to be shrinking from that possibility.