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March 24, 2017
Notice of Trusteeship
Updated On: Jul 15, 2016

To: The Officers and Members of Teamsters Local Union 50, Belleville, Illinois

From: James P. Hoffa, General President

After I received a series of credible reports from members and officers of Local 50 alleging improper use of Union resources and other violations of the International Constitution and the Local’s Bylaws, I appointed a Personal Representative to meet with the officers and discuss these allegations with the Local’s membership. An International Auditor was also assigned to conduct a detailed review of the Local’s financial records.

I have received information from these sources, as well as from individual members of the Local, and have determined that an emergency situation exists that merits imposing a temporary trusteeship over the Local’s affairs, for the following reasons:

1. The audit has revealed numerous occasions on which the Local Union’s credit cards were used for personal purchases and expenses. Included among the improper expenditures are charges for concert tickets and travel for which there is no apparent union purpose. Other unexplained expenditures were for in-town meals with no stated business purpose and meals that appear to have been provided to family members. While some of these have been reimbursed by the individuals involved, others have yet to be repaid. And it is clear that the involved officers and Local employees would not have reimbursed the Local had these improper expenditures not been discovered in the course of the International’s audits.

2. The Local Union has not maintained sufficient records to document the propriety of expenditures. Credit card receipts are missing and/or have inadequate explanations of the union purpose and the individuals who incurred the expenses. This despite the Local officers having been advised in 2013 by the Department of Labor that its recordkeeping procedures were inadequate.

3. The Local Union has not withheld sufficient taxes from the salaries of Scott or Nancy Alexander, thereby subjecting the Local to penalties from the Internal Revenue Service. As of this date, the Local Union still owes penalties for its failure to withhold sufficient taxes. This constitutes a breach of fiduciary duty by incurring additional costs to the Local and, at the same time, provides unearned additional compensation to Scott and Nancy Alexander.

4. Vacation credits have been awarded to Nancy Alexander without the approval of the Executive Board or compliance with the Local’s policies. Despite the fact that she did not have any prior employment at the craft or with the Local Union, she was awarded six (6) weeks’ vacation in her first year, an amount appropriate for a twenty-year employee according to the Local’s benefit schedule. Similarly, she was provided with a monthly car allowance without the Board’s approval.

5. There are numerous missing checks or checks that do not indicate to whom the money was paid.

6. The Local Union officers have failed to cooperate with the International Auditors who have been sent to investigate the above financial transactions and other complaints.

7. The principal executive officer has failed to comply with the Local’s Bylaws and policies by hiring employees and establishing their salaries without approval by the Executive Board. One of his unilateral hires was subsequently charged by the Independent Disciplinary Office with having brought reproach upon the Union, resulting in his taking a withdrawal card.

8. Both Scott and Nancy Alexander received pay in lieu of vacation that exceeded the amounts to which they were entitled under the Local’s policy.

These allegations evidence a pattern of abuse that continues to date. There is little reason to conclude that the Local Union will be operated in a fiduciary manner if the current Executive Board remains in office.

Accordingly, I have determined that an immediate trusteeship be imposed to correct the financial malpractices currently in place. I have appointed Brother Tony Barr as the Trustee and Brother Jeff Crabtree as the Assistant Trusteeeffective immediately.

A hearing will be scheduled to permit the officers to respond to these allegations and the members to express their views on these and any other issues that affect the future of the Local Union. You will soon be advised as to the date, time and location of the hearing.

In the interim, I urge all members to cooperate with the Trustee to resolve the problems as quickly as possible so that the Local Union can be restored to self­governance.

Fraternally yours,

James P. Hoffa, General President
 

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