@Lash,
Labor Racketeering
Labor racketeering is the domination, manipulation, and control of a labor movement in order to affect related businesses and industries. It can lead to the denial of workers’ rights and inflicts an economic loss on the workers, business, industry, insurer, or consumer.
The historical involvement of La Cosa Nostra in labor racketeering has been thoroughly documented:
* More than one-third of the 58 members arrested in 1957 at the Apalachin conference in New York listed their employment as “labor” or “labor-management relations.”
* Three major U.S. Senate investigations have documented La Cosa Nostra’s involvement in labor racketeering. One of these, the McClellan Committee, in the late-1950s, found systemic racketeering in both the International Brotherhood of Teamsters and the Hotel Employees and Restaurant Employees International Union.
* In 1986, the President’s Council on Organized Crime reported that five major unions—including the Teamsters and the Laborers International Union of North America—were dominated by organized crime.
* In the early 1980s, former Gambino Family Boss Paul Castellano was overheard saying, “Our job is to run the unions.”
Labor racketeering has become one of La Cosa Nostra’s fundamental sources of profit, national power, and influence.
FBI investigations over the years have clearly demonstrated that labor racketeering costs the American public millions of dollars each year through increased labor costs that are eventually passed on to consumers.
Labor unions provide a rich source for organized criminal groups to exploit: their pension, welfare, and health funds. There are approximately 75,000 union locals in the U.S., and many of them maintain their own benefit funds. In the mid-1980s, the Teamsters controlled more than 1,000 funds with total assets of more than $9 billion.
Labor racketeers attempt to control health, welfare, and pension plans by offering “sweetheart” contracts, peaceful labor relations, and relaxed work rules to companies, or by rigging union elections.
Labor law violations occur primarily in large cities with both a strong industrial base and strong labor unions, like New York, Buffalo, Chicago, Cleveland, Detroit, and Philadelphia. These cities also have a large presence of organized crime figures.
We have several investigative techniques to root out labor law violations: electronic surveillance, undercover operations, confidential sources, and victim interviews. We also have numerous criminal and civil statutes to use at our disposal, primarily through the Racketeer Influenced and Corrupt Organization (RICO) Statute.
The civil provisions of the RICO statute have proven to be very powerful weapons, especially the consent decrees. They are often more productive because they attack the entire corrupt entity instead of imprisoning individuals, who can easily be replaced with other organized crime members or associates.
Consent decrees are most effective when there is long-term, systemic corruption at virtually every level of a labor union by criminal organizations. A civil RICO complaint and subsequent consent decree can restore democracy to a corrupt union by imposing civil remedies designed to eliminate such corruption and deter its re-emergence.
The Teamsters are the best example of how efficiently the civil RICO process can be used. For decades, the Teamsters has been substantially controlled by La Cosa Nostra. In recent years, four of eight Teamster presidents were indicted, yet the union continued to be controlled by organized crime elements. The government has been fairly successful at removing the extensive criminal influence from this 1.4 million-member union by using the civil process.
We work closely with the Office of Labor Racketeering in the Department of Labor and with the U.S. Attorneys' offices in investigating violations of labor law.
http://www.fbi.gov/