History and Controversies of the International Brotherhood of Teamsters By: Patrick Pachciarz
Former Union Leader Jimmy Hoffa
Labor organizations in the United States have become more commonplace in the past century with a number of new unions being created. Although the AFL-CIO has the most members (keep in mind it is a federation of unions and not an individual union), the International Brotherhood of Teamsters (IBT), the largest private sector union in North America, can make a convincing case for the most notorious, feared, and recognized union in U.S. history. The IBT, with such renowned officials as Jimmy Hoffa, Frank Fitzsimmons, and Tony Provenzano to its credit, has been the focus of numerous investigations by the FBI, Internal Revenue Service, and law enforcement agencies across the nation. The controversies and charges brought forth by government against the IBT can fill several pages, but the Teamsters seem to successfully negotiate each obstacle that is presented to them. The International Brotherhood of Teamsters has survived a turbulent history that has included indictments, convictions, and a death that has yet to be solved. It has even incited former Attorney General Robert F. Kennedy to say the Teamsters were once "the most powerful institution in the country, next to the government itself." The IBT has in some way managed to overcome adversity while continuing to grow and fiercely oppose unfair labor practices in the meantime.
Jimmy Hoffa: THE Teamster Leader
When one asks who is the most recognizable labor leader in the history of the United States is, the typical answer is James R. (Jimmy) Hoffa. According to Lester Velie (1977, p.54) "Hoffa emerged .as a giant in his will, in mind, and in his dominance in those around him. The littlest man in the room, Hoffa seemed to tower over everybody in it." At this point in his career he was only the ninth vice-president of the Teamsters and was virtually unknown except for his hometown of Detroit. Early on in his IBT stint he was accused of channeling Chicago Capone gang-member Paul Dorfman $1,000,000 for his family insurance agency through the Teamsters Health and Welfare fund (Velie 55). These actions, however, only enhanced his underworld credibility while giving rise to his internal union power. Over the next few years Hoffa climbed the necessary Teamster ropes through questionable dealings with questionable people while giving the common IBT member his and her wants and needs. "Jimmy Hoffa was a power broker from the underworld, selling Teamster power to the upper world. And since he sold that underworld broker power so well, what did that make Jimmy Hoffa? It made Jimmy Hoffa a double agent. Hoffa used his upper-world position to serve the underworld and his underworld connections to serve the upper world" (Velie 58). Hoffa was a great mediator of the two separate worlds, which benefited his personal wealth and clout along with the power that the IBT needed. As a result of the combined following and legitimate respect, "no union leader had ever inspired such loyalty among his followers" (Brill, 1978, p. 34).
Even though Hoffa surrounded himself with dubious characters, he did so to better his situation and position. He was an expert in networking and being involved with the people he knew had power, people he only used to get to the forefront. As Steven Brill states in his discussion with James R. Hoffa's son, "my father used such power only to gain power and he planned to throw them out once he became the union president" (Brill, 1978, p. 34). These contradictory actions are the suspected reasons in why Jimmy Hoffa had a hit out on his life. When one enters into agreements with the mafia it is similar to playing with fire and on July 30, 1975 the fire burned Hoffa. His disappearance still remains a mystery today, but his dealings with the mob, silent partnerships with a number of businesses, and stern control of the IBT had undoubtedly contributed in some fashion.Teamsters Central States Pension Fund (CSPF)
The Central States Pension Fund (CSPF), which is controlled by the International Brotherhood of Teamsters, has been the source of controversy since the Hoffa era. The CSPF has made questionable loans to mafia members, who mainly look for ways to transfer funds tax-free. The harbinger of these disputed loans came in 1974 with a loan to Mr. Allen R. Glick. On May 29, 1974, the Central States Pension Fund approved a loan of $62,700,000 to Glick for the purchase of two Las Vegas hotel/casinos. What gives this case added interest is that Mr. Glick applied for the loan only nine days before May 29 without ever offering a financial statement. Six years later in 1980 the tainted fund incited James Cook of Forbes magazine to write the article "The Most Abused, Misused Pension Fund in America," Mr.Cook explains: "Organized crime used CSPF to perfect the tactics it was to use in other funds, and the fund is still mob-influenced and very unpredictable. A large portion of the funds' money went to members of the mob for projects that seemed to be solely for avoiding taxes. Periodically, Teamster officials were caught taking money from the fund, including former President Jimmy Hoffa. However, not until the passage of the Employee Retirement Income Security Act (ERISA) did the government have the necessary weapons to move against the fund on fiduciary grounds" (1980) The Internal Revenue Service and the Labor Department deeply investigated the Teamsters to determine whether or not the funds were being used by the officials and its borrowers. At the present time the CSPF has new trustees, but it is still an undesirable occupation. The Central States Pension Fund is the epitome of how such funds can be used by organized crime.
The IBT and the Mob
The Teamster mafia ties have been well documented and recorded in the past 35 years and with good reason. Tony Provenzano, the former New Jersey president of Joint Council 73 and benefactor of Jimmy Hoffa's influence, went on trial for ordering the murder of a potential opponent. He then served time in Lewisburg Penitentiary with Jimmy Hoffa and reportedly had a falling out with Hoffa while there. "Tony Pro", as he was known on the street, was suspected in the disappearance of Hoffa, but all charges were dropped. His brother Salvatore Provenzano, a.k.a. "Sammy Pro", was arrested for counterfeiting in 1971. The charges were later dropped, however, and he continued to run New Jersey Teamster affairs for his brother, Tony.
Although these two key brothers of the IBT and the mob were suspected, only one man was believed to have the necessary clout and connections to order James R. Hoffa's assassination, mafia boss Russell Bufalino. A relative obscure and unseen boss, Bufalino was questioned numerous times about Hoffa but nothing resulted in terms of charges and indictments. The IBT has been notorious for putting mobsters in the position to make considerable decisions, which affect the Teamsters at the local level and ultimately the national level because of the mafia ties. To the satisfaction of many officials, laborers, and law enforcement agencies the present-day condition of the Teamsters has been drastically enhanced.A New Era and a Familiar Name
With all of the problems the IBT has faced in the past several decades, it seems on track to once again put the Teamsters union at the forefront. Leading the IBT into the 21st century is James R. Hoffa, Jr. The son of the greatest labor leader in U.S. history has been at the helm of the IBT since 1998 and doesn't plan on letting go of the position anytime soon. Glenn Burkins of the Wall Street Journal reports: "Mr. Hoffa promises to restore the union's former strength at the bargaining table. He has also pledged to negotiate tough new contracts, bring fiscal discipline to the union, and make the Teamsters more independent within the AFL-CIO" (1998). Although Hoffa, Jr. has come into the office with a significant backing, he has not done so without opposition. Diana Kilmury, an avid reformer of the Teamsters for the past 22 years, fears her struggle for the attack on corruption within the IBT will diminish. As Tom Fennell of Maclean's explains: "Mrs. Kilmury believes James Hoffa, Jr. became a millionaire off of his daddy's ill-gotten gains. Now he wants to turn back the clock" (1998). Nevertheless, Hoffa, Jr. is trying to step out of his father's shadow, citing that it is time for the justice department to end its control of the union. He has also "vowed that the Teamsters will regain their old militancy and that the union will be run for the benefit of its members and not its management" (Fennell, 1998). But for now James Hoffa, Jr. is making the Independent Review Board, which investigates and punishes corruption, his top priority. David Moberg, a writer for The Nation, begs to differ claiming: "That would be a bad move, as it would risk undoing the good that pressure from the federal oversight has wrought, including gains in formal democracy that surpass those at many other unions, such as last year's revision of the constitution to mandate direct elections by members" (2002). It wouldn't be the first time someone questioned the president of the International Brotherhood of Teamsters and it will certainly not be the last.
References
Brill, S. (1978). The Teamsters. New York: Simon and Schuster.
Burkins, G. (1998). New hoffa era bodes suspense for teamsters. Wall Street Journal.
Retrieved 10/15/2002 from Proquest database, on the World Wide Web:
http://www.proquest.umi.comCook, J. (1980). The most abused, misused pension fund in america. Forbes.
Retrieved 10/15/2002 from Proquest database, on the World Wide Web:
http://www.proquest.umi.comFennell, T. (1998). A fabled name at the teamsters. Maclean's. Retrieved
10/15/2002 from Proquest database, on the World Wide Web: http://www.proquest.umi.comMoberg, D. (2002). Reforming the teamsters. The Nation. Retrieved 10/15/2002
from Proquest database, on the World Wide Web: http://www.proquest.umi.comVelie, L. (1977). Desperate Bargain. Fitzhenry & Whiteside Limited: Toronto
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