Date: Sat, 23 Aug 1997 02:34:48 -0400 From: aaron-AT-burn.ucsd.edu (Aaron) Subject: M-NEWS: Teamsters' Election Overturned (2 articles) I received the following items from Nathan Newman <newman-AT-garnet.berkeley.edu> via his list <LABNEWS-AT-CMSA.BERKELEY.EDU>. I have reformatted them for easier reading, and corrected some minor typos. - Aaron ---------- Forwarded message ---------- Date: Fri, 22 Aug 1997 13:58:07 +0100 =46rom: Paul Plaganis <metro716-AT-taconic.net> Subject: Carey's Election Undone August 22, 1997 Carey's Re-Election Undone Pending Fund-Raising Probe Associated Press WASHINGTON -- A federal official threw out Teamsters President Ron Carey's re-election Friday, following an eight-month investigation into alleged fund-raising abuses by his campaign. The ruling by Barbara Zack Quindel, a court-appointed federal election overseer, came just four days after the Teamsters declared victory in a strike against United Parcel Service. The effect of the decision is to force a new election between Mr. Carey and his opponent, James P. Hoffa. Mr. Carey narrowly defeated Mr. Hoffa in December. Ms. Quindel declined to certify the results while she probed allegations that Mr. Carey's campaign illegally accepted contributions from the union treasury and employees. =46ederal labor law prohibits candidates from accepting such donations. Labor analysts have said that the sword hanging over Mr. Carey's head made the UPS battle a must-win for him. Mr. Carey knew that if a second election was in the offing, a victory over UPS would put him in a much stronger position. As a result of a consent decree signed in 1988 to end corruption in the 1.4-million-member union, the election was underwritten with $22 million in public funds and held under the auspices of a court- appointed officer. The FBI already has charged consultant Martin Davis with using his position as a vendor to both the union and Mr. Carey's campaign to exploit the Teamsters' general treasury and hide illegal donations to Mr. Carey's coffers. A federal grand jury in New York continues to investigate other alleged schemes, as well as the union's ties to the Democratic Party. Last month William Hamilton, the union's political director, abruptly resigned, saying he would no longer cooperate with the grand jury. The deal the union struck with the Justice Department requires the ouster of any official who refuses to cooperate with investigators. Mr. Carey has appeared before the grand jury, and several Teamsters staff members have been called to New York to meet with federal prosecutors, according to sources familiar with the investigation. Copyright =A9 1997 Dow Jones & Company, Inc. All Rights Reserved. ---------- 2nd forwarded message ---------- Date: Fri, 22 Aug 1997 16:08:29 -0500 (CDT) =46rom: Marc Luzietti <mluziett-AT-hawk.depaul.edu> Subject: ChegitzNews - (full article) Teamsters' Election Overturned!!!! Teamsters election thrown out Carey likely to face Hoffa again for leadership of union CAREY LAST DECEMBER had defeated challenger James Hoffa, the son of longtime Teamsters chief Jimmy Hoffa, but will now have to face him again if he wants to try to retain his leadership. Carey had become well-known outside union circles in recent weeks as the chief negotiator for the UPS workers who shut down the parcel delivery giant for 16 days. Barbara Zack Quindel, a court-appointed election overseer, said she decided on a new election shortly after the UPS strike began Aug. 4 but delayed the announcement to avoid making it a factor in the dispute. Quindels report cited a complex network of schemes to funnel illegal donations to Carey's campaign, including a plan to swap Teamsters contributions to political candidates and organizations in exchange for donations to Carey. Federal labor law prohibits candidates from accepting such donations. While declaring that important questions remain unanswered, Quindel said she found no evidence that directly linked Carey to any wrongdoing and noted that he had cooperated with investigators. As a result of a consent decree signed in 1988 to end corruption in the 1.4-million-member union, the election was underwritten with $22 million in public funds and held under the auspices of a court-appointed officer. DEMOCRATIC PARTY INVESTIGATED Carey himself has not been accused of wrongdoing. But the FBI already has arrested and charged consultant Martin Davis with using his position as a vendor to both the union and Careys campaign to exploit the Teamsters general treasury and hide illegal donations to Carey's coffers. A federal grand jury in New York continues to investigate other alleged schemes, as well as the unions ties to the Democratic Party. In a memo that surfaced last month, Davis told William Hamilton, then the unions political director, that the DNC had made unspecified commitments in exchange for more than $1 million in contributions to state and local party affiliates. DNC officials deny there was any such arrangement. Last month Hamilton abruptly resigned, saying he would no longer cooperate with the grand jury. The deal the union struck with the Justice Department requires the ouster of any official who refuses to cooperate with investigators. Carey has appeared before the grand jury, and several Teamsters staff members have been called to New York to meet with federal prosecutors, according to sources familiar with the investigation. CAREY PROMISED REFORM Labor reformers pinned their hopes on Carey when he was first elected in 1991. He has thrown out the heads of 72 locals he said were corrupt, sold the unions corporate jets and ended the free lunches and other perks at headquarters. But he has failed to unite rank-and-file members, beating Hoffa by less than 4 percentage points in a mail-in ballot. About one-third of all Teamsters voted. ---------------------------------------------------------------------- Marc, "the Chegitz," Luzietti =46ighting for Truth, Justice, and the Communist Way! -- Chegitz Guevara ---------- End of 2nd forwarded message ---------- ---------- mailto:aaron-AT-burn.ucsd.edu http://burn.ucsd.edu/~aaron
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