Dirty Money: Report Shows Union Corruption Still Widespread

Unfortunately, union corruption continues across the country. According to a recent report by the Detroit Free Press, “U.S. Department of Labor documents obtained by the Free Press show embezzlement from hundreds of union offices nationwide over the past decade. In just the past two years, more than 300 union locations have discovered theft, often resulting in more than one person charged in each instance, the records show. Two UAW incidents uncovered in 2017, one in Michigan and the other in New Jersey, exceed the $1-million mark, among the biggest labor theft cases in a decade.”

The cases examined in the report involved thefts/embezzlement ranging from thousands to millions of dollars – usually of members’ dues funds. The problem was not isolated to any particular union or industry, as unions involved with everything from healthcare to government services to manufacturing are implicated.  The report states, “The Labor Department records show that union theft happens in big cities and tiny towns in all corners of the country. Usually, the crimes are committed by the union local’s bookkeeper, president or treasurer. Gambling addiction is an issue at times. Frequently, money goes to buy luxury items.”

Events such as these are uncovered almost weekly. The report is a somber reminder that for better or worse, union members’ dues money is not always used in a way the workers had intended.

© 2018 BARNES & THORNBURG LLP
This article was written by David J. Pryzbylski of Barnes & Thornburg LLP
For more union news, check out our Labor and Employment Law Page.

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