Corruption in the Teamsters Union - Essay Example

? Human Resources -Labor Relation Corruption in the teamsters union The Merriam Webster Dictionary defines corruption as the impairment of moral integrity, virtues or moral principles. Transparency International, an International Anti-Corruption Agency envisions corruption as the abuse of entrusted power for private gain, which eventually hurts everyone who depends on the integrity of people in a position of authority (Alatas, 1999). I have chosen both definitions as appropriate in this paper. This will include behavior and activities linked to Bribery, Fraud, Impunity, appropriating public resources for private use, and gross misconduct. Though corruption is present in almost every area of humanity, it is probable that no field experiences much corruption than trade Unions. (Myint, 2000), notes that the lack of Accountability, mingled with Economic Rent, here defined as a unique feature in a person which causes them to be at an ad vantage with the competitors, and Discretionary Powers, defined as the allowance for leaders to twist rules in their own way brings about corruption. Taking this in mind, most trade union members join the unions just their work rights insured. They hence don't give a keen thought to a leader's character as long as he or she is representing their rights well. Therefore, Trade Unions provide an even field for greedy men and women to propagate their activities without confrontation. Mismanagement and embezzlement of collective funds has led to the collapse of famous trade unions in several countries. This increasingly destructive vice has spurred an unprecedented input in research on the Causes, effects and cures of Corruption in Trade Unions. Surprisingly, the issues of corruption continue in increasing numbers. Nevertheless, we have a better knowledge and deeper understanding of the causes and effects of Corruption, not just in Trade Unions, but also in other agencies. For the sake of this paper, I will examine Corruption in the International Brotherhood of Teamsters (IBP), otherwise called the Teamsters Union. The findings and recommendations will represent the possibilities in other Trade Unions. Background Information The IBP is the largest private sector labor union in the United States and Canada. It comprises of over 2 million blue-collar workers in the public service and private sectors. Unlike most Unions, the IBP divides into many strong smaller unions, with their own leadership structures and policies. The International Body acts only as a coordinating agent. IBP history dates back to the early 1900s, being a merger of two former Trade Unions. The Teamsters' National Union is the Foundation stone for the Union. It was established by truck drivers and deliverymen from Chicago who had defied the American Federation of Labor (AFL) attempts of creating a teamsters trade union. The Union later merged with Team Drivers' International Union (The Union formed by AFL), to form the International Brotherhood of Teamsters (IBT). The new group now registered as an affiliated group to the AFL. At its inception, the Teamster Union aimed at ensuring fare working conditions for the members. Its leadership structure has smaller subsidiary groups called Locals. The Locals elect their own leaders who then elect the national leaders. The initial membership consisted of deliverymen using horse drawn vehicles, until in the 1930s after Truck Drivers surpassed them. From the onset of the Union, its mandate has been representing the rights of truck drivers, service deliverymen and other similar job groups. The Union has a great bargaining power, fueled by its large membership as well as its capacity to hamper the transportation of important goods. It has always been important to the AFL, for a strike by its members would hamper the movement of products throughout the nation. Inasmuch as, the numbers were important in ensuring a good bargaining power, the same was also a brooding ground for corrupt leaders. Most of its leaders are notorious in soliciting for bribes from employers so as to avoid bribes. They have also been involved in Organized Crimes. Leaders were elected into office even when it their integrity was questionable. A case in mind is the first president of the Union who, after having been found in a brothel with his 19 year old mistress, was elected back in the office. A similar situation occurred later in the years when Mr. Jimmy Hoffa, the 3rd President was planning to contest for the presidency again, 1 year after completing his jail term-He was serving a jail term for it gross corruption acts and participation in Mafia activities. After the 1910s and 20s, the membership of the group expanded drastically to include other stake holders in the commercial transportation industry and later to include workers outside the transport industry. By the dawn of the Second World War, the Union had registered over half a million members, making it one of the most powerful Unions in America. With the expanding numbers, came the increasing participation in gangster activities. In 1929, for instance as IBP was striving to control trade unions in Chicago City, the leaders of the Union approached Roger Touhy, an infamous gangster and asked for his protection from Chicago Outfit, an outlawed gangster group. (Alatas, 1999:26) American Federation of Labor- congress of Industrial Organizations (AFL-CIO) expelled the Union in 1957; for fear that the increasing corruption cases against the Union would spread to other unions and cause a mass government audit in the AFL. All this was the doing of one man, Mr. James Hoffa. When he acquired the presidency in 1957, members saw in a savior to an almost self destroying union. However, his links to the Mafia and cases of diverting Pension Funds to criminal activities brought his self righteousness to a halt. Most of its presidents have been linked to corruption, with three of the top leaders, James Hoffa (1957-710) among them, being convicted with corruption charges in the 1970s and early 1980s. It rejoined the AFL-CIO in 1988, though broke away again from the group due to its growing numbers in 2005- IBT claimed that AFL-CIO was not able to sustain their growing numbers. Since then, together with other trade Unions, IBT has been part of the 'Change to Win Coalition'. There have been attempts by members of the Teamsters Union to Reform the Leadership. From demonstrations, through elections, many reformists have dared to challenge the leadership structure of its corruption. In some instances, the government has been compelled to intervene and save the members. Some cases of this can be identified... Literature Review Myint, U. (2000), gives a theoretical model for defining the causes of corruption. The model shows that corruption is caused by an increased Economic Rent and Discretion Powers with a reduced Accountability That is C=E+D-A. By giving relevant examples, she defines economic rent and Discretionary powers as a unique advantage of a person in a competitive position and the allowance for leaders to twist rules while in office, respectively. She argues that the two factors-economic rent and discretionary powers have contributed greatly to the issue of corruption known today. Witwer, David (2003:57-65), notes that the Union has had Corruption Issues since its inceptions. |He gives credit to the efforts that the management has employed to curb this vice from the leadership to the grassroots. He asserts that the very nature of the Union was at the very best prone to corruption. By the use of suitable examples, he explains the process by which organized crime found its way in the Union. He accounts for how the low level corruption scandals of the 1930s evolved to mafia activities in the 1950s. He notes how the McClellan Committee revealed the links between the Union's President Jimmy Hoffa and Criminal groups in the late 1950s. He uses tapes recording dialogues and practices within the chambers of the Union's leadership. Lastly, he examines the efforts of other stake holders to capitalize on the Unions bad reputation in influencing legislative decisions. Witwer integrates the Teamster corruption scandals in to a larger perspective. He scrutinizes a case study of a Teamster Local (the smaller groups in Teamster Union) which attempted to introduce democracy and reforms in its leadership structures. He also notes that there has been an effort by some members of the Union to oppose corrupt leadership. He says that the efforts have been hampered by a centralized structure and gangster activities. Jacobs, J. (2006:43-50), in his “Mobsters, Unions and Fed: The Mafia and the American Labor Movement”, explain the need for democratic reforms in Trade Unions. He also looks critically at the efforts of Racketeer Influenced and Corrupt Organizations Act (RICO) to clear the Unions of corrupt leadership. He concludes that even though the efforts are not as effective, they are achievable and could be the solution to American Trade Unions Corrupt Leadership. Bruno, Roberts (2004:59-60) analyzes democratic issues in Teamsters. He identifies several cases where members have fought corruption, even if to the bare minimum. He cites Chicago Local 705, where members managed to remove all their leaders from office and began all again. They benefited through having a participatory leadership structure and tangible improvements on their bargains. He notes how the new leadership developed internal conflicts due to differences on bargains and simple personality differences. Hence, there needs to be a social order in every Union, where every member is educated on the breadth of corruption and its consequences. The effects of corruption have caused the Teamsters Union a lot of funds and reputation. Transparency International states that Corruption has tremendous consequences on every one involved. Firstly, Grand Corruption has adverse effects on the economy. Mismanagement, embezzlement of funds and social decadence have all been caused by corruption among leaders. The case of Hoffa using the Union's Funds to invest in Mafia businesses is a familiar one. Secondly, corruption facilitates the growth of Underground Economy, which refers to the illegal business of drug and substance trafficking as well as any legal business which is not officially recorded, with the intention of evading payment of taxes or regulatory authorities (Myint, 2000). When underground businesses are highly pronounced, the economic indicators of a country become unreliable of the business transactions are unaccounted. Thirdly, Corruption affects the government budget. There are cases where Teamsters Officials bribed Policemen and other government agencies to evade fines and taxes. Also, Witwer, D. (ibid) notes that, in several occasions, the top officials in the union paid bribes to enjoy reduced costs. A similar case is observed when individuals pay bribes to enjoy government services. Fro instance, people may give off bribes to get water, Internet or electricity connections without having to pay the true amount. Such activities cause a loss of government revenue as well as an overuse of government resources. Fourthly, the payment of bribes to evade regulatory authorities is a major cause of social risks. Unworthy road vehicles and the growth of illegal businesses under the watch of the leaders has led to several social and health repercussions. Fifthly, the lack of sufficient structures to monitor the transparency of a union has contributed to increase in corruption. For instance, a circular released by the World Bank shows that a clear opportunity and the chances of not being caught contribute greatly to people's engagement in corrupt activities. Many Unions, Teamsters included, lack a Transparency Monitoring System where every leader is held accountable for his deeds. Even where these systems are instituted an implementation program is lacking. Thus, leaders have taken advantage of the available opportunities to gain wealth in a “clean theft” (Tella and Bliss, 1999). Sixthly, cases of misappropriating public funds in projects are common in many Unions. In one instance, an official uses public funds for personal purposes, in another; a leader allocates projects to contractors under corrupt circumstances. This leads to unfair competition in the market and may as well cost the Union millions of dollars in the event the contractor delivers a substandard project. Finally, Corruption is the cause for its own existence in Teamster Union as well every other organization. It is the reason why corrupt leaders are voted in, and it is also the reason why such leaders remain in power, overlooking the possibility of a sustainable development for the Union. When this people are campaigning, their intention is not necessarily to make better the lives of those they represent. They manage to manipulate and malign their supporters. Such a situation will hamper reforms and any notable positive impact on its members. A corrupt leader can not fight corruption and any of its effects. Nevertheless, there have been some outstanding leaders who have sought tirelessly to reform the systems so as to ensure accountability and transparency among the leaders. The main challenge facing such reformist leaders has been the lack of support from fellow leaders. Recommendations This section will state some of the policies that have been used elsewhere to control corruption. It will also point out how they may be suitable in the Teamsters' Union. Bringing Graft under control is one of the hardest things for a government to achieve. For this reason, most people have chosen to ignore the issue, saying that it is not worth the effort (Bruno, 2004:27). Considering that Corruption begins from the top-downwards, he explains that the lack of enthusiasm to fight the vice among the members is the reason why controlling corruption takes a long time. Similarly, if corruption will be controlled in any Trade Union, there must be a consolidated effort by all stake holders to fight against it. Inasmuch as some individuals managed to rectify the situation over time, the reforms have lasted for as long as they have been in office. For a sustainable and long lasting graft free leadership, the whole union has to be involved in policing. One Asian Country launched a campaign against graft for almost 10 years. Although the results were far much smaller than expected, it was a substantial step. For instance, out of the 35 084 cases of graft investigated, legal action was taken against 26 834 (Mint, 2000). This would be a suitable recommendation to Teamster's and any other trade Union. The members ought to speak against corrupt leaders, investigating and demanding accountability for every leader and refusing to engage in corrupt practices. There should also be a frame work to protect their dignity and their lives from retaliatory attacks. The system should ensure that nobody engaging in the campaign is blackmailed, threatened or even murdered. Frying the Big Fish: Many scholars and authorities in Corruption have suggested that the best strategy to use in fighting corruption should begin from the leadership downwards. One important note is to ensure that the corrupt men and women in leadership positions are arrested, convicted and charged (Alatas, 1999: 14). In the Asian Nation, the practice of publicly convicting corrupt officials has played a key role in reducing the cases of corruption among government. However, as Jacobs (2006) puts it, frying the big fish from your own pond is easier. Convicting officials should not be used as a means of discarding off ones political enemies, but as a means of ridding the system off corruption. Leaders should not hesitate in opposing even those in their own camp: This will be shown effectively when a leader does not hesitate to speak against the corrupt in his political camp. Participatory Approach: It is important to inform the people on the adverse effects of corruption and on the need to bring it under total control. The leadership should convince the people of a genuine effort to combat corruption. This would open up grounds for an endless flow of information on how to do it. The leaders should be in a front line in the fight against corruption. “Once people are convinced that a sincere and genuine effort to combat corruption is underway, they will respond and extend their full cooperation in resolving the problem.” (Myint, 2000:29). With the reassurance, they should also allow people to participate by resisting corruption and blowing the whistle. Responsible Media: The Media should be involved in educating people on corruption as well as disseminating accurate information on any corruption issue. In most nations, the Press has been crucial in exposing corrupt deals as well as pushing for the conviction of the “big fish”. Most corrupt leaders take advantage of secretiveness to get away with corruption. Though the Media has not always acted responsibly in discrediting corrupt leaders, its role in curbing graft remains unparalleled (Myint U. 2000). Implementation of Institutions: As fore mentioned, many Organizations have a system of addressing Corruption which have been neglected and ignored. The efforts to modernize an institution go beyond the drafting and suggestion of a framework and strategies; it entails making a deliberate decision to implement it in a sustainable manner. This accounts for the reason why there have been so many studies on Corruption, whereas so little has been done. Unless a heart throbbing effort to implement them is taken, thousands of research papers, assertions and proposals will remain just that; Papers, assertion and Proposals. Fair Competition: In their “Journal of Political Economy”, Tella and Bliss (1997), suggest that increasing competition in a market would reduce the cases of corrupt activities, such as those linked to monopoly. If trade Unions were increased, the preexisting unions would have to rectify some of the corruption linked activities in the efforts to beat the new comers. Similarly, if the allocation of tenders and contracts by trade Union leaders is open, free and fair, misappropriation of public funds will be reduced. Independent Anti-Graft Institutions have played a role in fighting corruption in Governments and organizations. Transparency International, for instance, has created a Corruption Index, showing the levels of corruption in every nation. This effort was to put to shame the corrupt countries' leaders, hence forcing them to seek to reduce corruption in their nation. Conclusion From the preceding, we can safely state that unless a union leader chooses to have integrity, Trade Unions will remain to be a harbor for exploitation and manipulation of the greedy. It is also true that with the prevailing conditions perpetrating corruption among the leaders, this vice will remain a major challenge to all trade Unions, and unless the members deliberately choose to get actively involved in the union's business, controlling corruption in Trade Unions will remain just a term. It is improbable to have a corruption free society, but this does not warrant abandonment of the efforts to fight it. In the case of Teamsters, it is also safe to assume that most elected leaders, especially in Trade Unions, present only one side of the coin as they seek for votes. This dual nature of most leaders has been a major hindrance to the fight against corruption in Trade Unions. As Alatas (1999) notes, corruption charges have been endemic in Trade Unions since time Immemorial. Again, the cause of corruption is the lack of a deliberate choice to fight corruption by the top officials. Even where democracy has been instituted in a Union, its implementation has always been poor. However, it is true that the absence of a corruption free union does not imply the impossibility of a corruption free trade union. If the sufficient measures are taken, Teamsters Union and all other Trade Unions can be free from corrupt officials, be open to whoever cares to listen and practice clean, honest transactions. Bibliography Abadinsky, H. (2010). Organized Crime. Wadsworth: Cengage Learning. Ackerman, S. (1999).Corruption and Government: Causes, Consequences, and Reform. Cambridge: Cambridge University Press. Alatas, D. (1999). Corruption: Its Nature, Causes and Functions. Avebury: Ash gate Bruno, R. (2004). Reforming the Chicago Teamsters: The Story of Local 795.Illinois: Northern Illinois Press. Doig, A., Theobald, R. (2000).Corruption and Democratization: London: New Bury House. Felinska, M. (2007). Discrimination in the Teamsters. New York: Dorrance Publishing Company Glaeser, L., Goldin C. (2006). Corruption and Reform: Lessons from America's Economic History. Chicago: University of Chicago Press. Heidenheimmer, I., Arnold, J., Johnston, M. (2009).Political Corruption: Concepts and Contexts. New Jersey: Transaction Publishers. Jacobs, J. (2006). Mobsters, Unions and Fed: The Mafia and the American Labor Movement Chicago: Chicago University Press. Jacobs, J., Cooperman, K. (2011) Breaking the Devil's Pact: The Battle to Free the Teamsters from the Mob. New York: NYU Press. Kreik, E., Jordan, C. (2004). Corrupt Histories. New York: University of Rochester Press. Myint, U. (2000).Corruption: Causes, Consequences and Cures. New York: United Press. Tella, D. and Bliss, C. (1999). Journal of Political Economy. Chicago: University of Chicago Press. Witwer, D. (2003). Corruption and Reforms in the Teamsters' Union. Illinois: University of Illinois. World Bank (2000). Anti-Corruption in Transition: A Contribution to the Policy Debate. Washington D.C: The World Bank. Read More