Monday, August 3, 2009


The Chicago Sun Times is reporting Teamsters El Jefe, Jimmy Hoffa has put Chicago Teamsters Local 726 into trusteeship--which means kicking the elected leaders out while the big boss' appointees move in.

According to the charges, Local 726 leaders are charged with:

  • Taking $125,000 out of local pension funds and moving it into local union coffers without pension fund approval or any documentation noting interest rates and repayment terms.
  • Breach of fiduciary duties by the three union leaders who also serve as pension fund trustees. They are accused of skipping at least 12 months of mandatory payments to the pension fund and failing to maintain pension fund records.
  • Told by an accountant that it was a no-no to transfer money from the pension
    fund to the local, the officers took steps to pay the money back. When Local 726 could not cover the payment, the three officers allegedly made $112,000 in personal loans to the local, a violation of the Teamsters constitution.
  • Misled the international union on at least two occasions about financial iabilities and steps being taken to improve those conditions.
  • Waiving one year’s worth of membership dues for 27 different members without approval.

Hmmm. Teamster leaders? Corruption? It seems these two have danced this playlist before.

Coincidentally, it would appear that this is the same Teamsters local that rejected Chicago Mayor Daley's cost cutting measures, which resulted in layoffs that which was posted on 1-888-NO-UNION.COM's blog (here).

We wonder: Were the union's actions based purely on corruption? Or, were there some old-fashioned, Chicago-style politics at play as well?

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