The information in this report is based upon reports made by the Federal Bureau of Investigation, Department of Labor and the Strike Forces. In each case attorneys and agents were interviewed to update the reports. Several journalists from national news organizations were interviewed, as well as investigative agencies outside the federal government.
ORGANIZED CRIME AND THE LABOR UNIONS
PREPARED FOR THE WHITE HOUSE IN 1978
This is a preliminary report on the organized
crime influence in the labor unions today in the United States.
The picture that it presents is thoroughly frightening. At least
four international unions are completely dominated by men who
either have strong ties to or are members of the organized crime
syndicate. A majority of the locals in most major cities of the
United States in the International Brotherhood of Teamsters (IBT),
Hotel and Restaurant Employees Union (HRE), Laborers International
Union of North America (Laborers), and International Longshoreman's
Association (ILA) unions are completely dominated by organized
crime. The officials of these unions are firmly entrenched; there
is little hope of removing them by a free election process. Convictions
for misconduct have been sparse and when one corrupt official
is removed another soon takes his place. The result has been a
complete domination of certain industries by hoodlums. Management
personnel in the companies who must deal with these hoodlums have
despaired of getting help from law enforcement authorities. They
pay the price of labor peace so that they may survive. The cost
is passed on to the consumer.
Attorney in Charge
Chicago Strike Force
Attorney in Charge
Cleveland Strike Force
This paper is an overview of the infiltration
of organized crime in the labor unions of the United States. This
is a preliminary report; other areas will be covered at a later
date. After an initial period of research we decided to concentrate
on the international unions which are most infiltrated by organized
crime, and which pose the greatest threat to the economy. Without
a doubt the worst are the International Brotherhood of Teamsters,
International Longshoreman's Association, the Hotel and Restaurant
Employees (this includes Bartenders and Culinary Workers) and
Laborers International. We have sought to identify the major officers
in these international unions and in most of the member local
unions who are syndicate controlled, and the organized crime figures to whom they answer. This report
is not intended to be exhaustive. There are hundreds of officers
in these unions who are syndicate controlled in some manner. We
have selected only the most significant and those which could
be documented with more than a mere allegation.
There are many other unions which. are hoodlum
infiltrated, such as the Laundry Workers and the Operating Engineers.
The information in this report is based upon
reports made by the Federal Bureau of Investigation, Department
of Labor and the Strike Forces. In each case attorneys and agents
were interviewed to update the reports. Several journalists from
national news organizations were interviewed, as well as investigative
agencies outside the federal government.
Included in this report is a study of two
cities, Chicago and Cleveland, as examples of how pervasive and
disciplined the syndicate control can be, and the extent of the
political and economic power which necessarily results.
New York City.
Organized crime has a substantial foothold into the labor unions
in the New York City area. Experienced investigators from the
Labor Department list over 100 unions with members of organized
crime or their associates in positions of power. The time schedule
for the presentation of this report did not permit a thorough
examination of the allegations and evidence concerning all these
individual unions. Labor Racketeering in the New York area has
been designated as the subject of a later report. The New York
unions are set out in the Appendix to this report.
Teamster Central States Pension Fund.
No attempt was made to analyze the organized crime influence in
the Teamster Central States Pension Fund. The fund has been the
subject of several investigations in the past two years by the
Department of Labor and the Internal Revenue Service. There is
much information which was uncovered by those two agencies however,
a thorough summary of that voluminous information would have required
much more time and man power than could be allotted for this report.
The Hotel and Restaurant Employees Union
.represents the converse of the International Brotherhood of Teamsters.
In the teamsters, the corruption and organized grime influence
are a result from the massive infiltration of the local unions.
The HRE on the other hand has been infiltrated from the top. This
occurred as a result of the power wielded in the Chicago area
locals and joint executive board by Joey Aiuppa, the underboss
of the Chicago Syndicate. Edward Hanley was elected president
of HRE International in 1973 on the power and influence of Aiuppa
and the Chicago mob.
This is not to say that none of the locals
are hoodlum controlled or that Hanley is the first corrupt president
of the Union. Nevertheless, Ed Hanley represents the classic example
of an organized crime take-over of a major labor union. Since
his election, Hanley has moved to solidify his power, both in
terms of the local Union officials and elements of organized crime. Likewise, the
HRE, under Hanley's guidance has moved to insure support in the appropriate government circles by carefully
selected and generous political campaign contributions.
EDWARD T. HANLEY
(International President) - Hanley was born in Chicago on January
21, 1932. His associates include Joey Aiuppa, organized crime
boss of Chicago, and organized crime figures John Delasandro and
Rich Conboys. Hanley's brother-in-law is Frank James Calabrese,
burglar and loanshark collector. Hanley was hand-picked for his
current position by Joey Aiuppa. Hanley started his union career
in 1957 as Business Agent for Bartenders Local 450 in Cicero,
Illinois, and held a similar post in Local 278 of the Chicago
Bartenders union, both of which are tightly controlled by Aiuppa.
In 1962 Hanley became president of the Culinary Workers Chicago
Joint Executive Board, which is also under the control of organized
crime. He became International President in 1973.
JOHN F. GIBSON
(International Secretary-Treasurer) Gibson was the former President
and a full-time Business Agent of Local 430, Miscellaneous Hotel
Workers, St. Louis, Missouri. As a bartender in St. Louis, Gibson
was a protege of Johnny Vitalk of the St. Louis organized crime
family. He is also close to Morris Shenker, the powerful teamster
HERMAN "BLACKIE" LEAVITT
(International Vice President) Leavitt was for years Secretary-Treasurer
of Local 284, Bartenders, Los Angeles.
In 1968, Leavitt was sent by the International
Union to Las Vegas to head the drive to organize the casino dealers.
Local 7 was chartered and competed with the Seafarers Union in
three NLRB elections. They lost all three - at the Sahara, Desert
Inn and Silver Slipper.
During the organized drive Leavitt was in
constant contact with Sidney Korshak, who was giving Leavitt
advice on how 1/ to lose the elections.
HERBERT D. "PINKY" SCHIFFMAN
(International Vice President) is also President of Local 355,
HREU in Miami, Florida. In December, 1976, he was convicted of
Title 29, United States Code, Section 186(b)(1)(d) for accepting
gratuities from hotel owners. Schiffman is an associate of several
southern organized crime figures.
(International Vice President) - is also president of the major
local in San Francisco. He is a close associate of Tony Romano,
a lieutenant in the Buffalo organized crime family who has recently
moved to the San Francisco Bay area.
the Union. The increase in funds spent for
organizing amounted to $4,800,000. In spite of this, the membership
rolls of the Union have declined. Many of the persons placed on
the payrolls as organizers are organized crime figures or friends
of Hanley, mostly from Chicago. A few of the more noteworthy examples
are as follows:
(International Organizer), was put on the International payroll
one month after HANLEY assumed office and received $11,000 salary,
$4,630 allowances and $301 expenses, for a total of $15,391 for
Fiscal Year 1974. Until recently Presser was also President of
Local 10, HREU, Cleveland, Ohio. The organized crime affiliation
and involvement of Presser through, and independent of the Teamsters
Union are well documented.
(International Organizer) - is a major organized crime figure
in Chicago. He asserted his Fifth Amendment privilege 73 times
in testimony before the McClellan Committee, mostly in response
to questions concerning his associations with Joey Aiuppa and
other organized crime figures.
(International Organizer) - is also president of the Local 278,
Chicago. He recently purchased a home in Palm Springs for $89,500.
He is also an associate of Joey Aiuppa. Battista was placed on
the payroll shortly after Hanley assumed office.
International Organizer) - Spano is both a union organizer and
the full time head of Cicero Local 450, where Hanley began his
union career. The close relationship between Spano and organized
crime is exemplified by an incident that occurred in 1968; a free
parking permit for Arlington Park racetrack issued to Local
450 ended up on the car of Tony Accardo's wife.
is a former Chicago fireman with no prior labor experience. He
is Hanley's brother-in-law. Likewise, John O'Gara and Joseph McLaughlin
are organizers with no prior experience. Both are Hanley's cousins.
Local 50 HRE - Hayward, California.
Secretary Treasurer Joseph Medeiros is closely associated with
Abe Chapman and Anthony Romano, Northern California Organized
Crime Figures. Medeiros has often been suspected of committing
arson against hotels while attempting to organize them. Medeiros
is also under investigation for inflicting beatings upon union
members during an intra-union power- struggle.
Local 151 HRE - Atlanta.
This local is controlled by Hanley supporter Herbert "Pinky"
Shiffman. Shiffman who is also the President of a Miami local
and an International Vice President, was recently convicted of
accepting a discount for a room at an Atlanta hotel where his
members are employed. Another Hanley man is President of Local
151, John T. Timperio.
Local 64 HRE - Kansas City.
This local was formed as a result of a merger of 4 locals by the
International. During the two years it was in receivership, the
local was run by Michael Salerno, hand-picked by Hanley. Salerno
is under investigation for allegedly embezzling organizing funds
disbursed to him by the International. When the local was taken
out of receivership in 1976, Baldasaro Palmentere, former bagman
for Nick Civella's right hand man, Danny Lawson, appeared as the
Secretary Treasurer of the local. Hanley supported Palmentere
who according to DOL is trying to gain control over all the locals'
Local 278 HRE - Chicago.
The President is Pat Battista, also an International organizer.
He was placed on the payroll soon after Hanley assumed the presidency
of' the International. He is an associate of Chicago LCN member
Local 304 HRE - Chicago.
Mickey Cogwell was president this local prior to his fraud conviction
in the early 1970's.
Local 10 - Cleveland.
Jack Presser, Cleveland LCN figure, and Teamster International
Vice President, is former president of this local. He resigned
when the DOJ began an investigation of the International Union.
Jack Lubin, Vice President, is convicted arsonist. He is a principal
subject in a Strike Force investigation involving a massive fraud
on the Northern Ohio Bank.
There is a suspected sweetheart contract
between this local and the Costintino Hotel chain, which is owed
LCN interests. The result of the sweetheart contract is that once
employees are hired by the hotel chain, they are transferred to
other HRE locals where wages and benefits are lower.
THE INTERNATIONAL LONGSHOREMAN'S ASSOCIATION
The International Longshoreman's Association
has a long history of organized crime influence. The New York
Waterfront Commission was created in the 1950's to combat the
corruption which was so pervasive on the piers at that time. A
powerful novel "On the Waterfront" by Bud Schulberg
was written in the 1950's about the Brooklyn waterfront. The situation
today has changed little. Nearly all the international officers
of the ILA are under the control of organized crime.
The union is the subject of one of the most
concentrated Department of Justice investigative efforts in the
country. Numerous ILA officers are under investigation for shaking
down steamship and stevedoring companies. The corruption is so
rampant that investigators assigned to the case feel that every
international officer must be placed under scrutiny.
Doug Rago, an international vice president,
is a member of the organized crime syndicate. He is generally
conspicuous by his absence from the general offices. He answers
directly to Anthony Salerno of the New York Genovese family.
is president of Local 1814 in Brooklyn and an assistant general
organizer of the international union. He began his career in Local
1814, under the guidance of syndicate figure Anthony Anastasia,
his relative by marriage. He is a front for the New York Gambino
family. Scotto was once hailed as a new breed of longshoreman
union leader. He was appointed as a delegate to the International
Labor Organization by Presidents Johnson and Nixon. He is currently
a labor advisor to New York; Governor Carey. The FBI reported
in December, 1973 that prior to attending one of the international
conferences Carlo Gambino, New York mafia chieftan, summoned Scotto
and gave him an envelope to deliver to an individual in Palermo,
Sicily during his visit. In the late 1960's the New York Waterfront
Commission held hearings on Scotto and his alleged interest in
a business which received a quarter of a million dollar loan from
a bank which had received $700,000 in ILA deposits. Scotto was
also the subject of the McClellan hearings in 1969 Scoto is responsible
to the Gambino for ILA activities north of Norfolk, Virginia.
is president of Local 1922 in Miami and an international vice
president. He controls the ILA territory
south of Newark, New Jersey for the syndicate.
There is evidence that Barone delivers payoff money directly to
Doug Rago in New York. Barone is generally supervised by Fred
Field, an international organizer from New York. Field was indicted
in New York in 1976 for taking a $100,000 payoff from United Brands
Fruit Company to allow delivery of produce during a strike.
George Boyle is vice president of the Local.
Both Barone and Boyle are targets of the current Department of
Justice investigation 'or taking payoffs.
The syndicate controlled ILA leaders extract
money for labor peace. They also direct steamship companies to
the stevedoring, container repair, and service companies which
are to be employed. These favored companies either pay the union
leaders for their efforts, or are owned or controlled by the syndicate.
Those companies which do not pay simply do not get business. Steamship
companies know that using an unauthorized company will result
in slowdowns and breakage Any amount of delay in unloading or
loading a ship is tremendously costly. Every hour is worth thousands
a New Jersey syndicate boss works for a steamship
company in New Jersey. His job is to award contracts .to container
repair companies. He owes his job to mafia influence. An associate
of the Genovese family was placed on the payroll of a marine repair
company in Staten Island by Anthony Scotto. He has absolutely
no experience to justify his position.
Sweetheart contracts with the ILA take many
forms. A common one is to allow a stevedoring company to have
only a few union workers. The remainder are nonunion, earning
as little as $3.00 per hour with no health and welfare or pension
benefits. The profit benefit to the stevedoring company from such
an arrangement is tremendous, permitting it to out bid other competitors.
The price for such a contract is a substantial payoff to the union
leader which is passed on to the organized crime syndicate.
These abuses are common throughout the jurisdiction
of the ILA. The result is that the shipping industry is controlled
completely by the LCN. The syndicate dictates who does business
on the east coast and in what manner. No competition prevails.
The flagrant operation of the syndicate and the ILA is a national
The International Brotherhood of Teamsters
has long been dominated and indeed captivated by organized crime.
Much has been written about this infiltration. It would be little
more than repetitious to catalogue here the past abuses in the
Union, particularly in the mismanagement of the Central States
Pension Fund. One factor, however, appears quite evident by even
a superficial review of the growth of the Teamsters over the past
several years: Although there have been numerous prosecutions
of high ranking Teamsters officials (e.g. Williams, Presser, Allen
Dorfman, and Jimmy Hoffa) the domination of the Union by organized
crime has gone unchecked.
Part of the problem of dealing with the organized
crime infiltration of the Teamsters is a basic lack of concrete
inside information. Although the files of the Justice Department
are replete with examples of specific transactions involving numerous
Teamster officials an overall review of the nationwide organized
crime influence in the Union is difficult to prepare because of
a lack of centralized intelligence. The recent investigation into
the abduction and murder of James R. Hoffa has provided fresh
information. Information developed during the Hoffa investigation
has demonstrated the strong
links between organized crime figures such
as Anthony Provenzano, Rosario Bufalino, Anthony Giacalone, Guv
Guarnieri, Salvatore Provenzano, Angelo Bruno, Salvatore Briguglio
and the Teamsters officials.
The investigation revealed clearly that Frank
Fitzsimmons is closely associated with and is in continual contact
with Anthony Provenzano, Anthony Giacalone, and Rosario Bufalino.
Even more disturbing is that the Hoffa investigation disclosed
that decisions directly affecting the operation of the International
Brotherhood of Teamsters and the selection of its leaders are
controlled completely by organized crime. Anthony Giacalone, Anthony
Provenzano, Rosario Bufalino, Mattie Ian and others directed the
murder and the obstruction of the investigation that followed.
Angelo Bruno head of Philadelphia LCN family
has been instrumental in maintaining control of the witnesses
from the New Jersey-Pennsylvania area who have appeared before
the Detroit Grand Jury.
Organized crime not only controls Frank Fitzsimmons;
but Union officers at all levels. International Vice President
and organizer William J. ,McCarthy, is closely linked to Gennaro
Angiulo of the Boston LCN. McCarthy is said to utilize the
syndicate's muscle to maintain his power.
This power solidifies not only his position in the two international
offices he holds but also as president of joint council 10 and
local Union 25.
International Vice President Roy Lee Williams
and Samuel Ancona, a general organizer, are closely associated
with the Nick Civella organization in Kansas City.
William Presser is a major international
officer allied with organized crime. His ties to the crime syndicate
are spread across the country. He began his rise to power in Cleveland
through the sponsorship of Anthony Milano, consiglieri of the
Cleveland LCN family. Presser is a confidant of Anthony Liberatore,
a convicted murderer, president of Cleveland Laborers Local 860,
and a member of the Cleveland Sewer Board. Presser also has an
association with the LCN families on the west coast through Anthony
Liberatore's brother John who is involved in the LCN structure
in Los Angeles, and Peter John Milano, Anthony's son, who is also
an LCN lieutenant in Los Angeles. Presser is connected to the
Detroit syndicate through John San Filippo, Business Agent of
Cleveland Teamster Local 346, who is allied to the Luanoli brothers
of Detroit and Cleveland.
likely killed because of a fear of his potential
rise to power to challenge the present union hierarchy.
The key to the controls of the international
union is a continued domination of the major local unions throughout
the country. The following review or hoodlum dominated locals
illustrates the magnitude of the infiltration of the International
Brotherhood of Teamsters by the crime syndicate.
McCarthy uses the Winter-Hill syndicate gang
to help enforce his union policies. Local 25 is under investigation
by the FBI and Department of Labor for misuse of union funds.
There is a suspected alliance between Sal Provenzano of New Jersey
and McCarthy. There is also a connection between Local 122 IBT
and Local 25. Most recently officers of Local 122 have been successful
in putting members of the Winter-Hill gang on the payroll of a
local Budweiser plant, although all these men are all members
of Local 25.
Local 398 - Buffalo. The vice president,
Sam Campanella, is a syndicate member and an associate of
Sal Gingello, Rochester underboss. John Frorino, a syndicate member,
is a union steward. Capo Richard Morino served as a trustee of
th s local until his conviction for murder. James Canarozzo, svndicate
associate, `'as Secretary Treasurer until he was convicted of
a felony in 1976.
Local 124 IBT - Detroit. Indictments and investigations have ousted Richard Fitzsimmons and his cohorts from Local 299. These individuals have now moved to start a new union, 124 Steelhaulers. They plan to take the truck drivers who haul steel to the auto companies and transfer them to Local 124.
They also plan to divert some funds to the
new union. Some of the steel hauling companies are owned by organized
crime figures. Through the use of sweetheart contacts with the
hoodlum companies and labor slowdowns against their competitors,
the syndicate will thereby control the steelhauling market in
the Detroit area.
Local 614 IBT - Detroit.
Joseph Bane, Secretary Treasurer, has recently been convicted
of embezzlement of union funds and mail fraud. There is also a
current investigation involving Bane, Frank Ryan, President of
Industrial and Miscellaneous Worker, in an attempt to organize
Vlasic Pickles. Bane and Ryan threatened to organize the drivers
of Crowell Trucking, the freight hauler for Vlasic, unless Crowell
made payments to Bane and Ryan.
Local 985 IBT - Detroit.
The president of this union is William E. Bufalino, Jr., an attorney,
and an old James R. Hoffa associate. Bufalino is currently coordinating
the witnesses in the James Hoffa disappearance investigation.
Bufalino has close ties to the Giacalones of Detroit, the Provenzanos
of New Jersey, and Russel Bufalino, the boss of the Northeast
Teamster Joint Council 41 IBT Cleveland
- William Presser is the President and Jackie Presser is Vice
President of this organization. John J. Felice, Jr., is recording
secretary. John J. Felice is very close to Chuck O'Brien and Tony
Giacalone. Also an employee of Joint Council 41 prior his death
was John Nardi a major figure in the organized crime community
in the Cleveland area.
Locals, 73, 293, and 796 IBT Cleveland
- All three of these Teamster Locals are controlled by John J.
Felice, Jr. In Locals 73 and 293 he is the Secretary Treasurer
and his father is President. In Local 796 he is also Secretary
Local 856 IBT - Northern California.
Rudy Tham, Secretary Treasurer, is associated with syndicate figures
Jimmy Fratianno, Bernie Barish, Abe Chapman and Anthony Romano.
Tham also serves as recording secretary or Joint Council 7, which
is headed by Jack Goldberger, an associate of James Duardi and
Local 416 - IBT Cleveland.
This local has long been a haven for members of the Cleveland
LCN. A former official Pat Catalano was murdered in 1965 as the
result of a gang war. Nick Nardi, the current Secretary Treasurer
is a brother of the later Nick Nardi who was killed in May 1977
in a LCN power struggle. Nick Nardi, as was his brother, is a
member of the Cleveland LCN.
Local 410 - IBT Cleveland.
The former Secretary treasurer, John Nardi, who was recently murdered,
has been identified as a member of the LCN. He has been involved
in the investigation of a murder of an Akron, Ohio contractor.
Local 703 - IBT Chicago.
This union represents the produce haulers. The Secretary Treasurer
is Dominic Senese, a Chicago syndicate member and a relative by
marriage of Anthony Accardo, Chicago Syndicate head. Senese is
a powerful man in the
the Teamsters Union, and has been rumored
for a job with the international. He is currently under investigation
for taking payoffs for awarding health and welfare insurance contracts
for his union to a syndicate company.
Local 714 IBT - Chicago.
This local represents the exhibition contractors who set up trade
shows at Chicago exhibition halls. The union is used by the Chicago
syndicate for giving hoodlums jobs by placing them on the payrolls
of the contractors. The union also shakes down contractors, forcing
them to accept unwanted labor and selling them cleanup services.
David Kaye, chief steward at McCormick Place Exhibition Hall,
was recently convicted by the Strike Force on 74 counts of Taft-Hartley
violations for forcing contractors to place him on a number of
payrolls at the same time.
Local 727 IBT - Chicago.
This union represents chauffeurs, funeral drivers, greasers and wash rack attendants.
The secretary treasurer is James Eco Coli, a syndicate member.
He is currently under investigation for misuse of union funds.
Local 705 IBT - Chicago.
This is the largest Teamster local in Chicago. The union was recently
under investigation for taking $2,000 per month in payoffs to
allow Pacific Inter-
Mountain Express to deliver certain commodities
without union drivers. The money passed through a paper company
owned by a syndicate lieutenant.
Local 777 IBT Taxi Drivers - Chicago.
This union is controlled by Joey Glimco, long time syndicate powerhouse
in the union movement. Glimco is the henchman of Joey Aiuppa and
Anthony Accardo. His influence extends far beyond his control
of Local 777.
Local 239 IBT - New York.
LCN member Anthony "Ducks " Corallo has always maintained
control over this local which represents retail automobile salesmen.
None of his relatives have appeared on the officer roster since
the passage of the Landrum-Griffin Act. However, recently, his
son has appeared on the local's roll as trustee.
Local 814 IBT - New York.
The president is LCN member Saverio Aiello who is actually controlled
by LCN member Orlando Caralluzo. This local controls the commercial
movers in New York.
Local 295 IBT - New York.
This was originally a paper local set up in the late 1940's by
Johnny Dio and Abe Gordon. Harry Davidoff was one of the original
officers. Davidoff recently turned the local over to his son Mark.
has recently been attempting to join all
IBT locals who have organized airport freight handlers in a single
group. This association of unions would thus have control over
all freight operations at all the major New York airports, this
giving Davidoff power to extort and shakedovm the airports. So
far this attempt has been unsuccessful.
Local 805 IBT - New York.
Abe Gordon, a Johnny Dio associate, is also the president of this
local. He is currently under investigation for shaking
down Japanese electronics firms.
Local 41 IBT - Kansas City.
Roy Williams, Secretary Treasurer, is a powerful national teamster.
Williams' ties to the syndicate date back to the early 1960's.
At that time he was under indictment for embezzling union funds.
The chief witness, Floyd Hayes, was shot gunned to death.
Law enforcement officials believe that Williams
went to members of the Nick Civella family to have the killing
done. Since then he has been in debt to the syndicate. Sam Ancona,
a local organizer, is the go-between for the syndicate and Williams.
Some observe believe that Williams is being groomed to take the
place or Frank Fitzsimmons when he leaves office.
Local 560 - New Jersey.
Salvatore Provenzano is the current president although Anthony
Provenzano is believed to be active in running the local. Sal
Briguglio, Anthony Provenzano, Harold Koeingsburg are being investigated
by the FBI for the kidnap murder of Anthony Castellito, a former
560 official in the early 1960's. Information has come to light
through a witness who has recently agreed to testify against the
participants. The Provenzanos and Briguglio are major subjects
in the Hoffa investigation.
Joint Council 73 - New Jersey. Gerardo Catena, New Jersey syndicate boss, controls the Joint Council. Catena reportedly has the veto power over the establishment of any teamster chapter in New Jersey.
Local 810 IBT - New York.
Milton Silverman, closely tied to Johnny Dio and Abe Gordon, is
still unofficial power in the union, following his conviction
of misuse of union funds. Silverman is under investigation for
his part in a strike breaking effort against a rival local.
Local 182 IBT - New York.
Officials of Local 182 are under investigation by the FBI for
negotiating a sweetheart contract between the local and the P
& R Corp., a company run by Guv Guarnieri, Binghamton syndicate
Local 35 - Philadelphia.
Frank Luicidi and Samuel Guidotti, local officers, are associates
of Philadelphia syndicate boss Angelo Bruno. Both are under investigation
for Taft-Hartley and Pension Fund violations.
Local 500 - Philadelhia.
Secretary Treasurer William Brown is connected with syndicate
lieutenant Frank Sindone. Brown is supposedly receiving kickbacks
from payments made to a labor relations company by Food Fair Stores
in return for labor peace.
Local 326 - Wilmington, Delaware.
Secretary Treasurer Frank Sheeran is a former chauffeur for Russel
Bufalino, Northeast Pennsylvania syndicate boss. Sheeran is under
investigation with Bufalino and Philadelphia syndicate figure
Robert Rispo for selling labor peace through Country-Wide Personnel,
a company operated by their associate Eugene Boffa.
This union generally represents unskilled
manual laborers in the construction field. It has long been subject
to organized crime control. The international president is Angelo
Fosco, who succeeded to the office after the death of his father,
Peter Fosco. Peter Fosco was the first ward committeeman of Chicago
before he became an officer of the union. Peter Fosco's ties to
organized crime go back to Al Capone. Angelo Fosco has followed
in his father's footsteps. He is the tool of the crime svndicate.
Major decisions regarding Laborers' union contracts are made by
organized crime leaders, not Angelo Fosco. In Chicago Fosco follows
the orders of Al Pilotto and Vincent Solano, two local union presidents
who are also LCN lieutenants, and Joey Aiuppa, underboss of the
The same syndicate control is apparent in
other parts of the country. Jimmy "Blue Eyes" Alo(sp)
of the New York Luchese family oversees the Laborers union activity
in the Miami area. Similar organized crime infiltration can be
found in Cleveland, St. Louis, Buffalo, and New York.
Local 5 - Chicago.
The president of this local is Alfred Pilotto, former bodyguard
for the late Frank LaPorte, syndicate boss of the Calumet City-Chicago
Heights area. Following LaPorte's death in 1973 Pilotto took over
the syndicate control of the illegal activities in that area.
His close associate is Al Tocco, recently released from federal
prison. Pilotto is one of the five major lieutenants of the Chicago
syndicate. In addition to his kickbacks for union activities,
he receives a portion of the profits for gambling, loan sharking,
and auto theft in south Chicago.
Local 1 - Chicago.
The president, Vincent Anthony Solano, is a ruling member of the
Chicago LCN. In addition to his duties as labor leader he also
controls the illegal activities on the north side of Chicago.
Joseph Aiello and Salvatore Gruttadauro, two Local 1 business
agents, are also known LCN members. No one without hood connections
can aspire to leadership in this Local.
Local 767 - Miami.
Because of the surge or construction in the past ten years in
the Miami area, a number of hoodlums have moved from New York
to Miami and have entered the Laborers union in that area in order
to gain control of the construction business. The most conspicuous
is Local 767.
The Local president John Giardello, recording
secretary and business agent Sal Tricario, and business agent
Joseph Giardello, are connected with organized crime figure Johnny
Dioguari of the New York Luchese family.
The attorney for the local union and the
union trust funds is Seymour Gopman who is under investigation
both in Miami and in Chicago for income tax evasion and kickbacks
in violation of 18 U.S.C. 1954. Gopman is also under investigation
in Miami for. participating in making union loans to Louis "Treetops"
Imburgia, a syndicate associate from New York.
Gopman encouraged Local 797 officials to authorize $735,000 in loans to several companies, two of which have Imburgia participating in their operation, and a third in which Gopman and Laborers southeast district council president
Bernard Rubin have an interest. Laborers
District Council of Southeast Florida. Bernard Rubin is the president
of the Laborers District Council of Southeast Florida. He has
recently been convicted by the Miami Strike Force on 103 counts
of embezzlement of union funds.
loaned to the Sage Corporation, an international
development company headed by Canadian organized crime
figure George Wuaneaux.
Local 110 - St. Louis.
A business manager of the Local is D. Raymond Massud of the Syrian
faction of the St. Louis syndicate. His son, John Massud, serves on
the executive board. Leo Briguglio, an associate of Anthony
Giardano, St. Louis LCN boss, is also on the executive board.
Anthony Leisure, also a member of the Syrian faction,
and a suspected fence, is a business manager. Francis Michaels,
brother of Jimmy Michaels, head of the Syrian faction,
is employed as an organizer. Matt Trupiano, a suspected
member of the LCN, now an international representative, was
an organizer for Local 110 until 1974.
Local 42 - St. Louis.
The individuals in power in this Local were once a part of the
late Buster Wortman gang. T. J. Harvel, president, is a strong arm man and
a retired burglar. He was a close friend of mobster Lou Shoulders.
Harvel was with Shoulders on the ill fated fishing trip
in 1972 when Shoulders was killed in a violent explosion
upon starting his car. Harvel is also secretary treasurer of
the East St. Louis Laborers District. Council. Harvel's son
is a business manager for Local 42.
Ray Flynn, an active fence who is currently
under investigation by the FBI for interstate transportation of
stolen property, is employed as a business manager. Frank Shoulders,
brother of the late Lou Shoulders, is a business manager.
Local 210 - Buffalo.
This Local is controlled by Joseph A. Pieri, a capo of the Buffalo
LCN. His relatives, Joseph R. Pieri and John Pieri, also LCN members,
are business managers. The following members of the Buffalo LCN
are also officers:
Local 860 - Cleveland.
Tony Liberatorte(sp), business manager,(see page 51) has served
20 years for a conviction for the murder of a policeman. He has
recently been appointed to serve on the Cleveland Sewer Board
despite heavy criticism from the press. In 1973 Liberatore supplied
$150,000 in stolen securities to Harry Hall, a teamster hanger-on,
for sale in Chicago.
A classic example of the infiltration of
labor unions by organized crime is in the city of Chicago. Al
Capone was successful in dominating the labor movement in the
1930's in order to control legitimate businesses. That domination
continues today. Nearly every major local of the Teamsters, Hotel
and Restaurant Employees (Bartenders), Laborers International,
as well as other unions within the city are controlled by the
Until his death in 1974 syndicate underboss
Paul "The Waiter" Ricca appointed most officials of
Chicago's major unions. After Ricca's death the power of appointment
fell to Joey Aiuppa, the chief henchman of Anthony Accardo. In
return Aiuppa receives a large share of the shakedowns and kickbacks.
Problems in union discipline or with recalcitrant employers are
solved with muscle supplied by Aiuppa.
The most striking and dramatic evidence of
the hoodlum control in Chicago is in the Laborers International.
In the 1960's the president of Local 1001, which represents the
city street and sewer. workers, was Frankie Esposito (Frankie
the X). Esposito was put in power by Sam "Mo Mo" Giancanna,
then the syndicate boss. FBI electronic surveillance disclosed
Esposito had angered Giancanna. Giancanna
dispatched a team of hitmen headed by Jackie Cerone and James
""Turk" Torello to kill Esposito who was vacationing
in Florida. According to tape recordings of the electronic surveillance,
the killers planned to do away with Esposito, cut up his body
in small pieces, and feed it to the sharks off the Florida coast.
Esposito was warned of the plot by the FBI and he subsequently
cooled the problems with Giancanna. He continued to act as president
of the powerful union until his natural death in 1967. Esposito's
nephew, Anthony Esposito, Jr. was the secretary treasurer for
two years until he was convicted of selling cocaine. The current
president, Joseph Spingola was appointed to his position by Paul
"The Waiter" Ricca.
Local 5 of the Laborers
is headed by Al Pilotto, one of the most powerful men in the country
in the international union. Pilotto, like his counterpart Vincent
Solano in Local 1, also holds a position of power in the Chicago
syndicate. The men are two of the five lieutenants under Joey
Aiuppa who control the illegal activities in the city. Solano
has charge of gambling, prostitution, shakedowns on Chicago's
north side, while Pilotto performs the same functions on the city's
south side. Pilotto's power base
is Chicago Heights, which has been an organized
crime stronghold since the days of Al Capone. Pilotto's brother
Henry is the chief of police in Chicago Heights. Gambling, loan
sharking, and other illegal activities thrive in Chicago Heights
under the police protection. One of the most lucrative stolen
car chop-shop operations in the country operates in that area
because of the protection of the Pilotto brothers. They have fostered
the operation of William Dauber, a hitman who has thirty killings
to his credit.
Local 1 Laborers.
The president of this local is Vincent Solano mentioned above.
Solano, a syndicate lieutenant, was the chauffeur, bodyquard and
companion of the late Ross Prio, the boss of Chicago's north side
until his death in 1972. Solano inherited the territory after
Prio's death. Also in this local are syndicate associates Joseph
Aiello and Sal Gruttadauro, both union business managers. Gruttadauro
has a brother who is a syndicate operative in
the Gary, Indiana area. Gruttadauro was a close associate of Fiore
Buccieri, LCN lieutenant until his death in 1972..
Chicago Laborers District Council. Secretary
treasurer of this organization is James Caporale, a lieutenant
Most recently the Chicago Strike Force uncovered
a scheme in which Pilotto, Fosco, Caporale, and Dominic Senese
of Teamster Local 703 were receiving payoffs from Consultants
and Administrators, a small company owned by a syndicate associate
which supplies medical services to members of their locals. Each
received $l,OOO in cash per month plus a percentage of the gross
receipts of the company. Payoffs also went to Joey Aiuppa who
had the final approval of the contracts. This information was
supplied by an officer of Consultants and Administrators who had
actually made some of the payments. The FBI executed a search
warrant for the company office at the time the payoff money was
kept in a desk drawer awaiting distribution. Over $12,000 was
seized in separate envelopes. Each envelope contained $1,000 except
that intended for Aiuppa. That envelope contained over $5,000.
The teamsters locals in Chicago are a reflection
of their corruption-riddled International.
This union represents the Produce and Dairy Haulers. The secretary
treasurer is Dominic Senese, a relative through marriage of Anthony
Accardo, the syndicate boss. Senese is a close associate of Joey
Glimco, the syndicate's power man in the labor unions. Senese
was Glimco's leg breaker when Glimco took control of Local 777.
Senese took the Fifth Amendment when subpoenaed before the McClellan
Committee in the late 1950's. Senese is a powerful man in the
labor movement, and is rumored as being considered for a post
in the international union. He was named Man of the Year in 1975
by the Joint Italian American Civic Committee of' Chicago.
This local represents the men who carry and set up the exhibition
equipment in McCormick Place Exhibition Hall. Because McCormick
Place is one of the largest and busiest exhibition halls in the
United States this union wields tremendous power. Any delay in
a trade show or convention incurs irreparable damage. Exhibition
contractors cannot protest the slightest demand from the union.
As a result the chief steward who supplies the manpower to the
contractors is all powerful and can demand extra pay, extra benefits,
and force the contractors to take on some of the
most unsavory individuals--convicted felons,
dope peddlers, cartage thieves, as workers on their crews. Many
such workers will not show up for work or steal the merchandise
while they are collecting a full days pay.
The last two chief stewards have been convicted
in federal court and have been sent to jail for shakedowns. Davey
Kaye, the latest steward, spent eight years of a twenty year sentence
in Florida for shooting a recalcitrant union member and dumping
him in a canal. Kaye was convicted in 1976 by the Chicago Strike
Force on 74 counts of taking money from employers in violation
of the Taft-Hartley law. Local 714 has made a point of placing
organized crime figures on the payrolls of exhibition contractors.
There was a major scandal in October, 1976 when the Chicago Tribune
reported that Rocco Infelice, syndicate member, and Mario Garelli,
his associate, both on appeal bond after being convicted of distributing
heroin, had been placed on the payroll at McCormick Place by David
has been designated as the local which will attempt to organize
the Chicago Police in 1977.
arm man. He is a close associate of Joey
Aiuppa and Anthony Accardo. Experienced investigators have termed
his misuse of union 'funds as one of the most egregious abuses
of union power they have seen. For example, the union usually
takes in approximately $400,000 per year in union funds. In one
year alone Coli had $150,000 paid to himself for salary and benefits.
The union constitution, carefully drawn by some of the best labor
lawyers, vests all power in Coli to give raises and benefits.
Coli is currently under investigation by the Chicago Strike Force
for misuse of union funds.
This local is one of the largest local unions in Chicago. Recent
FBI investigations have revealed that some unidentified union
officials at the highest levels within the union were getting
$2,000 a month in kickbacks from a major trucking firm for exceptions
to their contract for hauling special commodities into Chicago.
The conduit was a sham company run by organized crime figure George
Dicks, a strong arm man for Gus Alex. These contract exceptions
could not have been allowed without concurrence from top union
movement. He has been in labor politics since
1933 when he was an organizer for the Poultry Handlers Union.
One of his sources of power was the late Murray "The Camel"
Humphreys, a top syndicate lieutenant. Glimco was twice indicted
by federal authorities. The first, in 1954, involved shakedowns
of merchants at the Fulton Street Market. He was acquitted after
several witnesses changed their stories. The second was £or
taking payoffs in violation of the Taft-Hartley Act in 1965. He
entered a plea of nolo contendere and was fined $40,000. Local
777 also controls truckers on the waterfront who haul the goods
from the piers after they are unloaded by the longshoremen. The
International Longshoreman's Union strongly opposed this move,
but Glimco was successful in carrying it out. Through Glimco's
syndicate power he exerts his influence into many-other unions
in the Chicago area.
Local 46 Laundry Workers The president of this local is Gus Zappas(sp), frontmen for the late Murray "The Camel" Humphreys. Zappas has a record of over 43 arrests. He served time in the state penitentiary in the 1940's for burglary.
Local 110 Motion Picture Operators Union.
This local has been completely hoodlum dominated since the 1930's.
The history of the union is riddled with violence and murder.
Until recently the president was Clarence Jalas, frontmen for
the late underboss Paul "The Waiter" Ricca. The union's
current roster includes names and relatives of hoodlums that reads
like the syndicate version of Who's Who. Hoodlums who would have
a difficult time loading an instamatic camera are $15,000 a year
projectionists. Anthony Accardo's son is a motion picture projector
operator and union official. Most recently there has been a wave
of theatre bombings in Chicago in an attempt to organize small
local theatres. The object or this organizational effort is to
force the theatre to place a second projectionist' on the job,
although only one is required. The second position is simply a
featherbedding cover for the syndicate men who need the appearance
of legitimate jobs. An investigation is under way into this and
other practices of the union.
exhibition shows at McCormick Place in Chicago.
Like Local 714 it is a haven for hoodlums. The president, Charles
La Tour has a felony record for armed robbery and assault with
intent to commit murder. He served a sentence of five years in
state penitentiary. La Tour and Davey Kaye, convicted chief steward
of McCormick Place, are close associates.
Local 450 Hotel and Restaurant Employees
(Bartenders). This union was chartered
by Joey Aiuppa in 1935 as an effort to keep syndicate ccntrol
of the tavern business. The local, like other HRE locals, are
creatures of organized crime. The present international president
of HRE, Edward Hanley was once a business agent for this local.
The current president was installed in 1958 by syndicate members
John Lardino and Joey Aiuppa after the McClellan hearings. As
an example of the organized crime connection of the union,
in 1968 a free parking permit, for a local racetrack that was
issued to Local 450 was ultimately used on the car owned by Tony
Local 278 Hotel and Restaurant Employees
(Bartenders). The current president
is Pat Battista. Battista is associated with Joey Aiuppa and John
Lardino. In addition to living in Chicago he also has an $89,000
home in Palm Springs.
Local 304 Hotel and Restaurant Employees
(Bartenders). This union operates
mostly on the south side of Chicago. The president in the early
1970's was Mickey Cogwell. Cogwell was forced out office after
his federal conviction for mail fraud for misusing HEW education
funds. He was carried on the books as salaried janitor. He was
also appointed as an organizer by the international president.
Cogwell was gunned down in gangland style in February 1977. Prior
to his death the FBI had determined that he was using Local 304
business agents as runners and pickup men in a policy business.
This Chicago summary indicates that the syndicate
influence is not only heavily concentrated but disciplined. The
control comes directly from the top of the Chicago organization.
The rosters of these locals are littered with the names of men
whose job it is to serve the syndicate as enforcers and muscle
men. The collective bargaining agreements, health and life insurance
contracts and investment of union funds are negotiated by men
who have as their primary aim the protecting of syndicate business
interests and lining their own pockets.
The leaders of organized crime captured control
of the major portion of the labor movement in Cleveland at an
early date. This domination continues to this day.
One of the first documented association between
organized crime and the labor movement dates back to the early
1940's when John Scalish, the former head of organized crime in
Cleveland, and his close associate Frank Embrescia, came into
the control of the Cleveland Federation or Labor. Scalish's contact
was William Finnegan the Secretary of the Federation. Embrescia
and Scalish were both associates of Mickey Cohen, the notorious
Los Angeles racketeer.
The real influence of organized crime in
Cleveland's Labor Unions begins with Anthony Milano, who during
the late 1920's and early 1940's was consiglieri of the Mayfield
Road gang, the predecessor organization to the current Cleveland
syndicate. Milano gained a foothold in the Teamsters Union by
organizing the Commission House Workers Teamster Local 400. The
Teamsters were unable to organize the commission house workers
and Milano made a deal that if the Teamsters would place an individual
of his choosing as the head of the Union he would see that the
commission house workers were organized.
The Teamsters agreed, and Milano organized
the workers. The Teamsters subsequently placed Charles Cimino
as the head of that organization pursuant to Milano's request.
The Teamsters Union was also infiltrated
by organized crime figures Louis "Babe" Triscaro, Frank
Brancato, Michael Rini, John J. Felice and several others, all
with the assistance of Milano and Scalish. Mike Minaden an LCN
member and currently an official of Laundry Workers Local 1 was
an associate of Milano dating back to the early 1920's.
Although Milano's influence within the labor
movement has diminished recently because of his age and inactivity,
John Scalish and his close associate Maishie Rockman continue
the control of the labor unions, especially in the Teamsters through
Bill and Jackie Presser. It is generally believed that William
Presser gained his position as International Vice President through
the Cleveland organized crime family connections with the Detroit
and Chicago organized crime syndicates.
There are organized crime figures or close
associates of organized crime figures in virtually every Teamster
organization in the Cleveland area. A discussion of Teamsters
in Ohio and the Cleveland area must begin with William Presser.
He is closely allied to all major organized crime figures in the
area including Anthony Milano, John Scalish, and John DeMarco,
his son, has continued to build his public image in the area through
appointment to various civic organizations and favorable publicity
in the media. He is cultivating political contacts including a
close association with Governor Rhodes, and appears on his way
to surpassing his father in power and influence throughout Ohio.
His goal is reportedly the presidency of the International Teamsters
Closely allied with William and Jackie Presser
is Harold Friedman, brother in law of William Presser, who controls
Bakery and Confectionery Workers Local 19 as President. Harold
Friedman is a convicted felon and a former close associate of
Teamster Local 507 Recording Secretary, former prizefighter and
muscleman, is a close associate of Jackie Presser and co-owner
with Presser's wife of the Forge Restaurant.
John San Filippo,
Teamster Local 346 Business Agent, is an associate of Thomas Licavoli,
who was the head of the prohibition era Detroit-Toledo Purple
Gang and convicted killer who was released from Ohio Penitentiary
in 1971. San Filippo was also associated with LCN members Babe
Triscaro and Frank
Brancato, both deceased. Since "Babe"
Triscaro's death in 1974, Local 436, one of the largest Teamster
locals in the area, has been placed in trusteeship with William
Presser as a Trustee. Sam Busacca, Triscaro's son-in-law and Local
436 Vice President has been permitted to continue to operate the
local under the trusteeship.
Teamster Local 410
is made up of vending machine service employees. It's primary
function appears to be to maintain peace in the vending machine
indudtry through assurance of sites and locations of machines
and equipment. Organized Crime figures have been deeply involved
in the vending machine business, including the late John Scalish,
Milton Rockman, and Frank Embrescia. Carmen Milano, son of Tony
Milano, and an attorney, has, over the years been paid a retainer
for few, if any, services to this Local along with similar payments
he has received from other Teamster Locals including Local 436.
Nick Francis, President, Teamster Local
416, a local made up of non-skilled
employees, received the charter for this Local in 1958 through
the intercession of Tony Milano. Local 416 has become a haven
for organized crime personalities. In the late 1960's Pat Catalano
began clashing with Harold Friedman of Local 507 over organizational
jurisdiction. In addition, he began openly displaying a lack of
respect for Tony
Milano. In April, 1968, Catalano was killed,
his body has never been found nor his murderer apprehended. After
Catalano's disappearance, Nick Oriti, long-time friend and associate
of Milano and boyhood friend of Frank Brancato, succeeded Francis
as Local 146 Secretary-Treasurer. Nick Nardi, brother of the late
LCN member John Nardi, and nephew of Tony Milano, is Trustee and
Business Agent of Local 416.
John Felice, Senior and his son John, Junior, control Local 292. John Sr., is now semi-retired and control of the organization has been gradually turned over to John Jr. Felice Sr., has been close associate of William Presser and Babe Triscaro through the years. The Felice family is known to have been closely associated with Yonnie Licavoli. Felice Sr., visited Licavoli while in the Ohio Penitentiary and identified himself as a second cousin. Felice Jr., is associated with Jackie Presser in Loca1 796 as Secretary-Treasurer nephew of deceased LCN figure Frank Minnitti
gangland-style killings of two Cleveland
Detectives. He was a close associate of the late Babe Triscaro.
Liberatore was the local representative of the Hoover-Gorin Public
Relations Firm, which was awarded a contract for $1.3 million
annually by the International Teamsters Union. William Presser
was instrumental in arranging this contract between the Teamsters
and newly formed Hoover-Gorin. Liberatore is present on the Sewer
Board of the City of Cleveland.
The President of Laundry Workers Local l
is Michael Minaden, known LCN figure and former organization bagman.
Longshoremen Local 1317,
which provides the manpower for the Port of Cleveland has a long
history of violence going back to the days when Danny Greene headed
the Union. Greene was removed from Office following a conviction
for violations of the Landrum Griffin Act.
Greene has been associated with various organized
crime figures over the years. He has a very close association
with Frank Brancato. Since leaving Local 1317 he has been involved
in a rubbish hauling association. Greene is believed to be behind
many of the bombings which have occurred in Cleveland in recent
years. He is also believed to have been involved in a shakedown
of contractors on major construction projects in the area along
Ironworkers Local 17
has a long history of violence, muscle, shootings, bombings, assualts,
and murders. It has been a haven for ex-convicts over the years.
Restaurant Workers Local 10
is an amalgamation of former waitresses, bartenders, cooks, and
miscellaneous restaurant workers locals, which controls the restaurant
industry in Cleveland. The local President until recently was
Jackie Presser. Another official is Jack Lubin, a suspected loanshark
and convicted arsonist.
Local 18, Operating Engineers,
is a state-wide organization engaged primarily in operation of
heavy equipment. This Local has a long history of violence, muscle,
and bombing activity. The trade relationship between Local 18
and teamster Local 436 and Liberatore's Laborers Local 860 has
resulted in a close working relationship between the three. Nick
Satullo, a known bomb expert, was part of Local 18 operation for
many years. There has also been a close relationship between this
organization, Teamsters Local 436, Laborers Local 860, and the
Excavating and Paving Contractors Association.
A consequence of organized crime's total
domination of the labor movement in Cleveland has been the exertion
of power in political and commercial circles where dependence
upon unions is a necessity. For instance, the City of Cleveland
operates the Cleveland Convention Center
and Public Hall. The undisputed but yet unofficial boss of the
Cleveland Convention Center is Teamster Local 407 President Eddie
Lee. Although Lee's sole function is the head of the Local which
unloads and moves about exhibits for conventions, he controls
the entire hall. The consequence of such activity is the enrichment
of Eddie Lee and the chaotic running of this major source of source
of revenue for the community. These abuses are under investigation
by the Cleveland Strike Force.
The most significant result of organized
crime influence over the labor unions is the resulting political
influence. The Cleveland area is primarily an industrial community
in which the unions wield a tremendous amount of political power.
Corrupt union leaders are able to dictate their wishes to political
candidates. Judges and prosecutors must curry their favor.
former Teamster Local 400 President and now Administrative assistant
and Labor Advisor to Mayor Ralph Perk plays a dominant role in
hiring and firing of county officials. Rini is also know as a
"fixer" for any problems that may arrive for influential
organized crime figures. Rini was responsible for the transfer
of a Police Sergeant who was harrassinq
prostitution activities at the Sterling Hotel,
a Local organized crime and Teamster hangout. Ernest Zeve, owner
of record of the Sterling Hotel is an associate of William Presser.
Rini is a protege of Babe Triscaro who was responsible for Rini's
rise to power.
Michael Rini is also partially responsible,
along with Anthony Milano, for placing Anthony Liberatore on the
Cleveland Sewer Board.
The uses to which a syndicate controlled
union can be put are many. Control of a labor union results in
jobs for hoodlums, access to millions of dollars in union and
pension funds, and gives a base for political and economic power.
Syndicate controlled union officials draw extraordinary salaries.
For example, the trustees of the Central States Teamster Pension
Fund make $400 per day plus expenses when working on pension fund
business. They usually log 200 days per year for the fund. This
salary is in addition to the salaries many others are collecting
from their other local union jobs. Union leaders often draw salaries
from more than one organization within the union, or from more
than one union. Joseph Spingola, president of Laborers Local 1001
in Chicago, a frontmen for syndicate leader Al Pilotto, is an
officer of three separate Laborers organizations drawing a total
salary of $80,000 per year.
Salvatore Provenzano's Multiple Salaries For 1974 Total $84,945
All the benefits are not reflected in salaries
and expenses. For example, James Eco Coli, syndicate member and
secretary treasurer of Local 727, Teamsters in Chicago, is a member
of the union's pension, severance, and health and welfare plans.
In addition, in 1974 he was given a fully funded trust initially
worth $150,000 which he will receive when he leaves the union.
Availability of Legitimate Jobs.
Hoodlum control of unions enables the syndicate to provide their
henchmen, strong arm men, and runners with jobs to give them the
appearance of having legitimate employment. Syndicate members
and associates can justify their fancy homes and lifestyle to
the IRS by means of their positions as business agents or organizers.
Often employers are forced to put syndicate workers on the payroll
to provide the necessary legitimate source of income.
Availability of Union, Pension, and Welfare
Funds. Union control gives control
of millions of dollars of general union, pension and welfare funds.
Control of these funds allows the syndicate to be a powerful force
in the economic lifeblood of the country. Pension funds may be
loaned to those who agree to pay a necessary kickback. Consultant
fees are given to
Necessary side benefits to syndicate associates.
At one time Allen Dorfman, a close Hoffa associate, wrote the
insurance policies on nearly all property that was mortgaged with
loans from the pension. With use of this syndicate money unchecked
there are serious long range threats to legitimate enterprise
in industries in which the syndicate choose to invest. Huge blocks
of money can have the effect of reaching corrupt bank officials
who can be persuaded to provide services and loans to syndicate
members and companies in return for the deposit of funds in the
bank. A major Chicago bank is currently under investigation for
loans made to syndicate projects in return for favorable teamster
business. In New Jersey certain banks are under investigation
for making direct kickbacks to New Jersey unions through title
companies in return for the deposit of union funds.
Pension and welfare funds continue to accrue,
often without any possible payment to beneficiaries. Unions such
as the Laborers or Hotel and Restaurant Employees which represent
many seasonal or transitory workers build up pension and welfare
funds which will never be collected. This unused, uncollectable
money is found wealth in the hands of corrupt union leaders. It
only remains for them to figure out methods to drain off the
Union Services Awarded to Hoodlum Enterprises.
Control of the union allows employment of hoodlum run enterprises
to obtain service contracts with the union. Insurance, accounting,
legal, travel, banking, and consulting services which can amount
to millions of dollars per year when dealing with a large international
or local union can be awarded to businesses run by friends, fronts,
or relatives of organized crime figures.
Control of the Industry.
This particular facet of labor racketeering has the most serious
consequences. The union through the power to force slow downs,
or negotiate preferential contracts to companies of its choosing
can dictate who will prosper in an industry and who will go bankrupt.
The recent investigation into the ILA is a most dramatic example
of a union dominating an entire industry. Aside from collecting
a certain amount per month to insure labor peace and absence of
slow downs, the union also dictated which stevedoring companies
and service companies received business from the shipping companies.
In order to keep its customers the stevedoring
company was required to make payments to
the union leaders. If they did not, a work slow down would result
when the stevedoring company unloaded a ship. Unnecessary breakage
would result. For a shipping company, time at a pier is money-every
hour over schedule results in enormous cost. The shipping companies
quickly learned which stevedoring companies were preferred. The
others lost business. The same preferential treatment is being
used to direct companies to the "right" ship supply
and container repair companies. Through this method the union
has gained control of the entire east coast shipping industry.
The selective use of power allows the union
to permit a company to negotiate a favorable contract with the
union so that its cost base may be such that it can thwart competition.
The union can extract a payoff to allow a company to remain unorganized.
The Hotel and Restaurant Employees Union is noted for examples
of the latter. Blackie Leavitt, Secretary Treasurer of Loca1 284
in Los Angeles, was sent to Las Vegas to organize the casino dealers
at three strip hotels. Leavitt conferred often with Sidney Korshak,
syndicate connected labor consultant for the hotels that were
being organized. Confidential source information reveals Leavitt
plotted how to thwart the election. The union
lost the certification vote at all three hotels. Shortly thereafter
Leavitt purchased a large ranch in San Diego County. According
to the source the money came from the payoff to Leavitt to throw
The economic ramifications of these abuses
hold grave consequences for portions of the economy, yet the hoodlum
dominated union leaders grow more arrogant. Witness the attitude
within the Teamsters union regarding the disappearance of James
Hoffa. Hoffa was about to ripple the waters; he was done away
with. The union leadership was unconcerned about the public reaction.
In Chicago, Davey Kaye, chief teamster steward at McCormick Place,
not only shookdown employers but in doing so consistently took
jobs from at least three to five other teamsters each time. Instead
of firing Kaye for taking jobs that could have gone to other workers,
the union leadership, including the union attorney, contended
Kaye was within his rights in doing so. Kaye remains on the job
after his conviction in federal court, pending appeal.
concerning Labor Racketeering is not systematically analyzed by
the Department of Justice. There is no unit which monitors Labor
Racketeering which can give any report on the status of the problem`..
It should be a function of the Organized Crime and Racketeering
Section to receive copies of all CIR's, investigative reports,
and surveys concerning Labor Racketeering so that an up to date
status of the problem can be maintained.
For example, the writers of this report discovered
in the short time spent assembling the information for it they
were able to identify problem areas, key individuals and illegal
trends which could not have been easily discerned from isolated
The writers of this report volunteer to act
as such a monitoring unit. All that would be required would be
the services of one intelligence analyst. We would meet periodically
to analyze intelligence information and case reports. We could
keep apprised of developments in the area and could advise the
Organized Crime and Racketeering Section and the Criminal Division
management of problems and trends. We could report also as to
the lack of information in certain areas. We feel this up to date
information would be valuable for planning
two agencies which have jurisdiction over Labor Racketeering have
no systematic approach to collecting information. An information request on Labor
Racketeering sent out by the Department of Justice in 1975 to
the Federal Bureau of Investigation and the Department
of Labor resulted in mediocre replies. Most of the Department
of Labor information submitted was ten years old.
A Federal Bureau of Investigation field office
in a city with a most heavy concentration of hoodlum infiltrated
unions filed a three page reply consisting of vague allegations.
If there is to be any realistic approach to the problem the Federal
Bureau of Investigation and the Department of Labor must begin
a systematic collection of information concerning the organized
crime infiltration in the Labor Unions.
methods must be explored for investigating Labor Racketeering
cases. Investigation of these matters requires a thorough knowledge
of the nature of the inductry involved, the collective bargaining
agreements, the custom and usage within the trade, and the history
of the union involved.
methods of legal action must be explored. A single conviction
of a corrupt union official does not usually clean out the corrupt
influence. Civil remedies pursuant to the Rico statute (18 U.S.C.
1961 et seq.) and other statutes should be studied and instituted.
If action can be taken to tie up the funds and the power of the
corrupt officials, half the battle will be won.
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Copyright © 1999 PLR International