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Chair Foxx Investigates 12 Unions for Recent Fraud, Corruption

Seeks answers on protecting workers from further union malfeasance

WASHINGTON – Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) sent letters to the presidents of: Service Employees International Union; International Brotherhood of Teamsters; United Steelworkers; International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; International Brotherhood of Electrical Workers; Communications Workers of America; International Association of Machinists and Aerospace Workers; Laborers’ International Union of North America; United Brotherhood of Carpenters and Joiners of America; United Association; International Longshoremen’s Association; and United Mine Workers of America. Together these private-sector unions represent an estimated 7.8 million workers.
 
Each letter highlights specific examples of recent corruption, and requests information about the union’s efforts to protect members from fraud, corruption, and improper accounting.
 
In the letters, Foxx writes: “The Committee on Education and the Workforce (Committee) is concerned about fraud, embezzlement, and corruption perpetrated by union officials. To ensure workers represented by labor organizations are shielded from malfeasance by union officials, the Committee requests documents and information relating to…efforts to protect employees and deter fraud, corruption, and improper accounting.”
 
The letters continue: “The Committee is concerned by reports from the Department of Labor’s (DOL) Office of Inspector General and Office of Labor-Management Standards (OLMS) highlighting significant fraud, embezzlement, and corrupt behavior by union officials. The Committee is particularly concerned that over the past decade OLMS has reported 725 federal indictments and 693 convictions of union officials and other union associates. The Committee’s oversight efforts on just a dozen private-sector unions involve more than $3.2 million in embezzlement and $220,000 in bribery.”

The letters conclude by asking for:

  • A comprehensive description of the policies and procedures the union has in place to monitor and deter fraud, corruption, and improper accounting, including any third-party audits.
  • A comprehensive description of the education the union provides its staff to ensure that proper accounting standards are observed for the oversight of funds, assets, and property for the national organization and for the local unions.
  • An explanation of whether the union has an internal reporting mechanism, such as a hotline, for its members, staff, and whistleblowers to report any examples of fraud, corruption, or improper accounting.
  • A comprehensive description of any internal disciplinary policies the union has in place to punish instances of fraud, corruption, and improper accounting.

Read the letter to Service Employees International Union
Read the letter to International Brotherhood of Teamsters
Read the letter to United Steelworkers
Read the letter to International Union, United Automobile, Aerospace and Agricultural Implement Workers of America
Read the letter to International Brotherhood of Electrical Workers
Read the letter to Communications Workers of America
Read the letter to International Association of Machinists and Aerospace Workers
Read the letter to Laborers’ International Union of North America
Read the letter to United Brotherhood of Carpenters and Joiners of America
Read the letter to United Association
Read the letter to International Longshoremen’s Association
Read the letter to United Mine Workers of America
  
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