Report: Teamsters' Finances Down
Nov. 04, 1997
DETROIT (AP) _ The Teamsters union has drawn down its financial resources sharply since Ron Carey became president in 1991, The Detroit News reported today.
The union's net worth has fallen to $11.3 million, down 92 percent from $150 million when Carey took over, the newspaper said.
An internal report prepared by Teamsters secretary-treasurer Tom Sever shows that the union suffered $5.2 million in losses the first six months of this year alone, the News said.
Under Carey, the Teamsters have accelerated expensive attempts to sign up new recruits for the 1.4-million member union. The union also faces high strike-related costs, including an estimated $10 million tab from a United Parcel Service strike in August.
In addition, the Teamsters spent $10 million in 1995 and 1996 on political campaigns, including $500,000 to various Democratic state parties.
The Teamsters also gave $475,000 to Citizen Action, a liberal advocacy group. Federal prosecutors say part of that money was funneled back to Carey's 1996 re-election campaign. Carey won but a court-appointed overseer ordered a new election.
With his election opponent James P. Hoffa continuing to challenge him for leadership, Carey has not raised the dues kept by the union's international headquarters in Washington, D.C.
Most of the net worth the Teamsters still have is tied up in Washington real estate and the $6.8 million ``marble palace'' headquarters.