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| Course Project | The Rise and Fall of Ronald R. Carey | | [Type the author name] | |

Course Project for Professor Mary Myers-Nelson in HRM586: Labor Relations with a due date of 02/16/2013 |

(Early & Wilson, 2008) (Teamsters, 2013)
Table of Contents In the Beginning 2 Corruption within the Teamsters and the Fight against It 3 When the Government Got involved 5 The New President 6 The fall of Ron Carey 7 Innocence is won 11 Speculations of a Conspiracy 13 Conclusion 16 Bibliography 17

The history of the International Brotherhood of Teamsters (IBT) dates back to 1902 when it was first established. In 1991 Ron Carey became the General President of the teamsters claiming that he would end the corruption within the Teamsters. He was the 11th president for the IBT and the first one to be elected by direct vote of rank-and-file members. He is most known for ending the strike in 1997 of the parcel giant UPS. Shortly after his big win against UPS he was barred from the presidency and permanently ejected from the Union. This paper tells about his life from his years before presidency, what he did while he was in office, why he was barred, and the events leading up to him being found innocent.
In the Beginning
Ronald “Ron” Carey, was the son of a teamster, a fellow union man and was born in New York City March 22, 1936. After high school he enlisted in the U.S. Marines for two years from 1953 to 1955. In 1956 he joined the Teamsters while he was a package car driver for United Parcel Service (UPS). In 1967 he decided to run for president of the Local 804 after being fed up with the mob rule and corrupt leadership. He ended up winning that campaign but prior to that he held other positions with in the Local 804. Before his presidency he started out as a shop steward, then became trustee, and then ended with being recording secretary (Kumar, 2008). From the beginning he was faced with adversity from the Teamsters because he stood up for what he believed was right. Mr. Carey was a smart man and knew how to beat them at their own game for the time being by recording the threats and playing them back for members to hear. Through this tactic he was able to have an upset victory over an incumbent who had been dipping into the union treasury. His tactic also caused the backfire of the rivals plan to black mail him in order to push him out of the race (Ron Carey, 2008).
During the next two decades he would make great strides and was locally renowned within the Teamsters for leading strikes and winning record pension improvements. This was all able to be done even with the bad rep the Teamsters had with organized crime dominating it. In 1989 the Teamsters for a Democratic Union finally won their 15-year struggle for the right of rank-and-file members to vote on the top officers of the national union. Even with the overwhelming death threats, which Mr. Carey ignored, he led a successful reform slate against two “old guard” candidates that were deep into corrupt traditions that had long been established under the late disappeared Jimmy Hoffa.
Corruption within the Teamsters and the Fight against It Corruption in the Teamsters has been around for a very long time, pretty much since the founding of it. Cornelius Shea was the first appointed president of the Teamsters back in 1903 but in 1907 he was forced out after charges of extortion. The reason behind all of the corruption within the Teamsters is due to the large amount of members it has which in hand gives them a multibillion-dollar pension fund (Daly, 1992). Corruption or organized crime influence in the labor unions had long been part of them. In 1978 there was a report made for the White House titled Organized Crime and the Labor Unions, it states that at least four international unions are completely dominated by men who either have strong ties to or are members of the organized crime syndicate. The IBT was at the top of the list for being the most corrupt (Breiding, 1978). Since the 1930’s when the Mafia sunk their tentacles into organized labor it has remained a part of it (History Channel, 2013). The Mob’s corruption of the Teamsters became big with Teamsters President James “Jimmy” Hoffa from 1957 to 1970 which is also believed to be the cause of him to never be heard from again in 1975. His demise is presumed to be from him wanting to take back his office but the mob had other plans and so it is presumed that they removed him from the equation (Bruno, 2011). In 1988 the government filed a lawsuit and tried to put the entire Teamsters under government trusteeship giving them the power to remove and appoint new leaders within the Teamsters. This led to the creation of an Independent Review Board (IRB) in 1989 which ended the racketeering suit against the top leaders of the time. Since then the IRB is still in effect and has disciplined over 600 Teamsters by having them suspended, return funds, and by expulsion of them (Teamster Corruption, 2013). Even with these efforts by the government corruption is still found within the Teamsters and they are known as the “Old Guard”. They consist of the mobbed-up leaders of the Teamsters. Ron Carey first started fighting the corruption when he was in the Local 804 after he established his presidency of it and continued to do so even through his term of General President of the IBT. He aimed for and promised to change the way the teamsters operated and to clean it up. In order to come through with his promises he had to shake up a few things, he started with cutting the salaries of the union officers and removing those that were the cause of the corruption.
When the Government Got involved The Federal Government filed a racketeering lawsuit in 1988 against the IBT. The win from this would mean that the International Union would be under government control through a trusteeship (Teamster Corruption, 2008). This Lawsuit brought about charges against 18 members of the General Executive Board of the IBT stating that they were a part of the pattern of corruption, embezzlement and bribery (Sun Sentinel, 1988). What the government wanted to do was be able to regulate the Union to crack down on the illegal activity that has been running rampant throughout the organization. The government’s main goal with the trusteeship is for the honest responsible union members to be able to install honest leaders (Sun Sentinel, 1988). With this goal the lawsuit or trusteeship the government would originally put in its own officials to regulate the union. The Teamsters wanted the opportunity to reform their organization by getting rid of the trusteeship and felt they could do so through the establishment of the right-to-vote for International Union officers. The campaign’s slogan was “No Mob Control, No Government Control, and Right-to-Vote” and it was a success. The government however felt that there still needed to be some form of policing for corruption and that they needed to be a part of it. These events brought about the Consent Decree which led up to the forming of the Independent Review Board (IRB) in 1989.
The IRB is a panel and made up of three members. One member is chosen by the Attorney General of the United States on behalf of the Government, another member is selected by the International Brotherhood of Teamsters, and the third member is chosen by the Government and the Union. The original board members served until the 1996 convention where they were nominated again. They were confirmed by the court and their term would be five years until the Convention in 2001.The IRB’s power is given to them by the Consent Decree and are approved by the United States court system. This power bestowed unto the IRB provides them with the authority to hire staff, investigate allegations of corruption, and police the Union.
The New President Ron Carey became the first Teamster General President voted in by the Teamster members in 1992 through the Right-to-Vote ballot system. Mr. Carey was revered among the Teamster members for not forgetting his roots as a second generation UPS driver (TDU, 2008). In December of 1991 Ron Carey got 48 percent of the vote in a three way race. Mr. Carey who was in charge of the Local 804 beat out the “Old Guard” of the IBT. The Teamsters for a Democratic Union (TDU) knew it was time to set the union straight and that they needed a candidate that people could stand behind. They had many candidates come knocking on their door and it wasn’t until they came across Ronald Carey that they knew he was the man for the job. Ron Carey was the son of a Union man, he was an ex-marine and a former UPS driver. After taking office in 1992 Mr. Carey found that the union was a complete mess and started a new direction and sold the union’s private jets and limos, he cut his own salary, abolished irrelevant conferences and he eliminated almost all the multiple salaries of union officials. Needless to say Carey was on a mission to clean up the union. He started this by removing dozens of local union leaders that were steeped in corruption. He began shifting union resources to win gains for working people. He led the one-day walkout at UPS in 1994 when the company tried to increase the package weight from 70 to 150 pounds. With no guidelines to protect drivers health and safety (TDU, 2008). He did this even though “Old Guard” local leaders urged others not to support the walkout. Besides cleaning up the union one of Carey’s main goals was to get the members more involved, so he organized new programs to get the members involved in contract campaigns. By starting these new programs it created a new department, the Field Office. The Field Office bypassed the incompetent local Teamster officers. This was a major milestone for the simple reason that before the Field Office was formed every program that Carey tried to instate it would end up being vetoed, even before it was out of the proposal stage. The vetoing was the doing of the “Old Guard”. Their main problem with Ron Carey was the fact that he had cut their salaries and pull with in the Teamsters. Doing this gave them resentment and a spiteful heart towards everything about him. They felt there was nothing wrong with the way things were accomplished in the past and why change. In August, 1997, right after his reelection and before his disbarment from the IBT he went out with a bang. He led a two-week national strike of 200,000 UPS workers that captured the hearts of American workers that were tired of corporate greed, the growing wealth gap, and the shift to part-time, temporary, or contracted out “throwaway” jobs with low wages and few benefits (TDU, 2008). This defeat of corporate greed was one for the history books and one of the biggest wins for the teamsters in its long going history. This win gave the members of UPS the commitment that there would be 10,000 full-time jobs created with full benefits from the 20,000 part-time jobs, major pension improvements, and put an end to company demands of taking control of the workers’ pensions (TDU, 2008).
The fall of Ron Carey The fall of Ron Carey was hard and very swift. The future for Mr. Carey as a second term president looked very promising especially with the big success that just came from the 1997 UPS negotiations. He entered into the presidential race with high hopes and it had appeared he was a favorite and would win against James P. Hoffa. It was a tight race but Carey pulled ahead in the end and won it with 52 percent of the votes in favor of him continuing his role as General President. Unfortunately Hoffa didn’t take the defeat by Carey very well and led to him calling out that there was foul play involved. It first started with Hoffa claiming foul play with the ballots, his claim was that there may have been the disappearance of more than 25,000 ballots with in the count. This led Hoffa to formally asking the U.S. Attorney General Janet Reno to impound the ballots and initiate an FBI investigation into serious irregularities in the election on December 17, 1996 (CNN, 1996). Hoffa later raised allegations against Carey stating that he broke fundraising rules during his campaign. After these allegations were proclaimed the Carey campaign was investigated. Ron Carey was accused of using union money to a variety of organizations which in turn other donors of those groups donated to his campaign. Ron Carey proclaimed his innocence from the beginning and stated he knew nothing of this scheme. The election ended up being overturned, this resulted in Carey being stripped of his title and it being handed to his arch rival James Hoffa. Hoffa is still in office to this day.
After these allegations the election committee refused to accept the election results. Before he was even found guilty Carey was stripped of his title and banned from the Union as well as contact from other Teamsters. The good work that Ron Carey put into cleaning up the Union was cast into shadow. The long fight he had fought in order to secure the rights and benefits for his members was cast in doubt. Those whom were always opposed to him were the first to say “I told you so”. In an instant all he had accomplished had been overshadowed by doubt and dismay. In the end all he had worked so hard for over the last 14 years had been reversed in a very short while. The cuts he made of salaries of high officials, the pensions and benefits he got for the members had all been renegotiated or reversed.
When Carey was found to have won the reelection of 1996 the Election Officer started receiving an overflow of objections from James Hoffa, the officials that was associated with him, and the remnants of the “Old Guard”. Under the consent decree it was the duty of the Election Officer Barbara Zach Quindel to investigate these complaints. She began the investigation immediately following the 1996 election and it continued through 1997. The investigation found that there were some irregularities within the election funds. These irregularities uncovered raised campaign funds that was acquired in different illegal ways. The illegally acquired funds totaled $885,000 and was obtained by the solicitation of funds from other union leaders and through the use of swap schemes. The swap schemes were contributions of union funds to non-profit or political organizations and in return the campaign would receive contributions back from them. Everything that was found by the investigation was illegal and against the Election Officers rules. These findings led to the: • Annulment of Ron Carey’s election victory
• Denial of Ron Carey’s right to be a candidate in the rerun election in 1998
• Expelling of Ron Carey from the IBT for life
• Denial of him the right to even associate with IBT members
Ron Carey’s testimony of him denying any knowledge of or participation in the schemes to illegally use IBT treasury funds to support his reelection campaign was stated before two Election Officers, three different times before the Internal Review Board Chief Investigator, and two times before a federal grand jury. His testimony resulted in the Prosecution charging Ron Carey on seven different counts of the same crime, perjury (Vogt-Downey, Eyewitness at Ron Carey's Trial, 2012).
Since the time that Carey was removed from office James Hoffa took over. In Hoffa’s reign the compensation of top Teamster officials have skyrocketed, cuts have been made to thousands of member’s pensions and healthcare. Former Federal Prosecutor Ed Stier, he was hired by Hoffa to root out corruption, resigned in 2004 charging that Hoffa allowed organized crime and corruption into the Union. It appears that Ron Carey’s fight against corruption in the Union has been derailed (TDU, 2008).
Not only was Carey indicted but members of his campaign staff were as well. These members are Jere Nash, Martin Davis, Michael Ansara, and William Hamilton. Jere Nash was Ron Carey’s campaign manager. Jere Nash is also alleged to have been employed at the same time as he was working for Mr. Carey to the November Group. It appears as if Mr. Nash was funneling funds through the November Group to himself (Vogt-Downey, Eyewittness at Ron Carey's Trial, 2001). He pleaded guilty in September of 1997 to two counts of conspiracy and making false statements to investigators in his role in the case. He also later pleaded guilty to mail fraud in a scheme to overbill the union for expenses (Bureau of National Affairs, 2002 ). William Hamilton who pleaded not guilty to charges in the scandal, was convicted of conspiracy and lying to federal investigators and grand jury. Hamilton during his trial claimed he was duped into his role in the scheme by Nash and Davis (Bureau of National Affairs, 2002 ). Martin Davis was a political consultant and pleaded guilty to three counts of conspiracy, embezzlement from a labor union, and mail fraud. Michael Ansara pleaded guilty to one count of conspiracy. All three men except Hamilton received two years’ of probation. That is not counting the combined amount of restitution they had to pay back to the Union, which was in the amount of $1.37 million (Bureau of National Affairs, 2002 ). The only person not convicted of any crime was Ron Carey. Innocence is won
October 12th, 2001 a federal court jury of eight women and four men found Carey to be not guilty of the seven counts of perjury that were brought up against him. Even though Carey was in court for a very long time for several charges, none of them consisted of him being brought up on being a participant of an illegal plot. Even after the heavy investigation by the FBI and prosecutors he was never to be brought up on charges of money or campaign fraud. I believe however that if he wasn’t found to be innocent, bringing Carey up on those charges of fraud would have been the prosecution’s next phase in trying to destroy him and his legacy even further. There were two key witnesses that the prosecution relied on to prove Carey’s guilt and they were Jere Nash and Monie Simpkins. One was highly unreliable due to their past, anything they said could have been immediately discredited because of it. The other kept changing the story of the events that had transpired. Witness Jere Nash was an admitted repeat perjurer which caused his testimony to be in question of its validity. Monie Simpkins was Carey’s executive secretary, her testimony was in question because she changed her story on three different occasions. Two of Mrs. Simpkins stories admittedly said that Carey had no knowledge of the scheme while one said that he had Okayed the checks. Then you have Ron Carey himself who never backed down of his innocence. In the end Ron Carey was acquitted to all charges that were brought up against him. Even though he was found innocent the ban for life from the IBT was never lifted. It was because in the eyes of the Teamsters’ officials it was his duty to be aware of what was going on within his organization. (Crowe, 2001).
In 2006 Ron Carey gave an interview with Chris Kutalik. Kutalik asked Mr. Carey “How have the Teamsters done under your successor, James Hoffa?” Carey replied “One of Hoffa’s many broken promises was to restore Teamster power. But what he’s really done was to restore the luxury lifestyle for top Teamster officials, while real Teamster power disappeared for the average working Teamster, those who Hoffa is supposed to fight for” (Kutalik, 2006). When asked if he thought members can change the union’s direction Carey replied “ultimately, if you’re going to see a change in direction in the Teamsters it’s going to have to come from the members, not all of them, but a lot, are afraid to buck the system. Some will say they are “neutral” that’s a cop out. No member will ever tell you that. They know you’re either for what’s right or you’re not” (Kutalik, 2006). Kutalik told Carey he sounded negative but did he see any hope for the Teamsters? “He’ll (Hoffa) never know what it takes to win a fight. Because he’s never had to fight for anything his whole life. It’s all just been handed to him. He told the people Hoffa names mean power. I believe power comes from courageous and informed members, And I believe you’ll see that kind of Teamster power again” (Kutalik, 2006).
The rise of Ron Carey was all truthful from attending Union meetings with his father to joining the union himself as a UPS carrier. He always had a hard stand against corruption and fought to clean up the union so that it represented what it originally was meant to be. He spent his career doing just that. The respect and admiration he had from those who followed him was truthful and real. It is reflected in the many posts after his death was announced in 2008. Diana Kilmury posted “Ron Carey will always be remembered by myself and hundreds of thousands of Teamsters as a great leader who inspired us and helped change our union forever” (Kilmury, 2008). “If the rest of the Teamsters stood behind him, we wouldn’t be in this mess today” (Becker, 2008). “With sheer grit, an intense passion and undeniable and irrefutable integrity, his voice as our leader was the voice of the average working man” (Hlampeas, 2008). I honestly could spend hours here writing every comment from people who paid their respects to Ron Carey. All of the passages speak the same thing, they tell of his honesty, his integrity and how hard he worked to be the voice of his members.
Speculations of a Conspiracy I know there is no validity to this section hence the title but I am not the only one that believes Mr. Carey was intentionally set up by those that wanted to see Carey out of the picture. Through all of my reading and research about Ron Carey I have come across multiple speculations that I feel should be brought forth. His demise was brought about by the corruption of the union, political parties, and major businesses and organizations. They all plotted through organized crime. The main basis of my conclusion is the RISE program, it was an internal union anti-corruption task force that was initiated by Hoffa. The staff and the head of the program Ed Stier quit due to the lack of cooperation and the blocked investigations into connections between organized crime and Teamster officials in Chicago by Hoffa. Ed Stier is quoted to saying “My problem is with one man: Jim Hoffa.” Jim Hoffa obviously would have ties with organized crime via his father. He was the most notorious for being involved in organized crime as well as letting them get a strong foot hold inside the Teamsters. I find it very peculiar that during the 17 day UPS strike of 1997 when Carey was engulfed is when all of the fraudulent activities came to light. It is almost as if it was premeditated because during the time that they knew he would be the most vulnerable and preoccupied is when they decided to strike.
Ron Carey’s daughter Pamela said that her father’s success in the UPS strike probably paved the way for his removal from the union. She elaborates her belief “He had the government and politicians asking him to stop the strike, but he soldiered on. We were scared because we knew they would come after him and the backlash came right after that strike, which was a touchstone for the labor movement. They told him, ‘If you go through with this strike, you’ll be done. “They were afraid of him and wanted him out” (Duke, 2009). At the funeral she tells that “Grown men with tears in their eyes told my mother that if it weren’t for him, they wouldn’t have had a job” (Duke, 2009). It is very convenient that after Hoffa and cohorts lost the election he knew exactly what to bring to the Election Officer against Ron Carey. I would also like to point out that James Hoffa himself was accused of campaign fraud with proof but no action was taken against him by the Election Officers. Hoffa’s fraud was alleged to be campaign funds fraud. Apparently, if the contribution is $100 or less than it is considered a small donation so no documentation is required. This wouldn’t normally be a problem but the fact that he had a large sum of “small” donations is what raised a red flag. It was such a number that you could not help but question where it came from (Corn, 1998). It is funny to me that no investigations or charges were brought up against Hoffa and that action is ultimately controlled by the government through the Consent Decree. There is recent talk that Hoffa would like to get rid of the IRB. This makes me wonder why, is there something to hide? It is no secret that the “old guard”, UPS and Hoffa wanted Carey out of the picture. If you look at the big picture of the series of events leading up to Carey’s demise it is clear that this conspiracy could be valid. This is highly plausible since all the members involved with the re-election campaign funds scheme pleaded guilty for conspiracy. Two of those members implicated the Democratic National Committee, the Clinton/Gore campaign and AFL-CIO as being a part of the scheme (Galvin, 1997). It is strange how a man who is so against organized crime and has never been associated with crime itself, be all of a sudden accused of fraudulent activity. When Ron Carey found out what happened he stopped everything and gave investigators his full cooperation. This right after the successful strike against UPS and Carey winning the approval of the American people. I stumbled across the TDU memorial page to Ron Carey and I read through the comments left by people he had come in contact with and inspired in some way. All these comments end with the belief that The IBT was behind Carey’s demise. One commenter is quoted as saying “He was taken too early, not just with his death, but he was taken from us ten years ago by a system that didn’t allow anyone as good as he was to remain in power in our union” (Sylvester, 2008). On August 22nd, 1997 PBS news reporter Charles Krause interviewed the Teamster Election Monitor Barbara Zack Quindel. Charles Krause asked about the investigation into the scheme, he asked “Who was responsible for the scheme?” Barbara Quindel responded “A number of people are identified in the decision, as our investigation found. We interviewed dozens of people in order to reach our conclusions as to how this scheme was implemented.” Charles Krause follows up with the question of whether Mr. Carey himself knew about the scheme. In turn she replied “My decision finds that from the evidence that we have that Mr. Carey himself did not know or participate in the scheme. We do, however, find that there are questions that remain unanswered and that my investigation as to Mr. Carey’s participation would remain open as to any issue of disqualification. This decision does not disqualify Mr. Carey” (Krause, 1997). Come to find out that Barbara Zack Quindel resigned after learning that the Teamsters had arranged to make a contribution to the New Party, a small political organization to which her and her husband belonged to. The way it was done made it appear that Carey had signed off on the contribution just as she started to carry out her investigation (Barnes, 1997). Conclusion Needless to say Ronald “Ron” Carey was a great man who in my eyes was doomed from the beginning because of the amount of corruption that was and is within the International Brotherhood of Teamsters. Even with all of the plots against him from organizations both political and business along with his fellow members he still came out on top in the end. He helped improve the quality of life for many of his brothers and destroy some of the corruption within his Teamsters. He was a man that never backed down or gave up; he kept to his guns until the very end. Even though he was still banned from ever being part of the Teamsters again. He is still revered as a great man in the eyes of a lot of its members and non-members for his contributions while apart of the Teamsters. Despite all the efforts of the Teamsters’ “old guard” and the government he was found to be innocent on all charges by the federal court system. From everything that you as the reader now know of Ron Carey from the facts and speculation stated in this paper, it is up to you to decide now whether or not Ron Carey was set up from the beginning. As for many others as well as myself now we indeed believe that he was. Ronald Robert Carey will be missed and has earned his place in history. His legacy will live on through his wife, his five children and his thirteen grandchildren.

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