June 17 - The U.S. Justice Department on Wednesday moved to end court supervision of the International Brotherhood of Teamsters, telling a federal judge the union has cleansed itself of organized crime and corruption that once permeated its ranks.
In joint filings in Manhattan federal court, prosecutors and Teamsters officials said the 1.4 million-member union had fulfilled the goals of a settlement that was first approved in 1989. Under that agreement - which followed a 1988 lawsuit - the union was required to restore democratic governance and root out the influence of organized crime that prosecutors said had created "a campaign of fear" involving murders, bombings, theft and extortion.
The 1988 lawsuit was filed by the office of the U.S. attorney at the time, Rudy Giuliani, prior to his tenure as mayor of New York City. The suit accused the mafia of operating the Teamsters as a racketeering enterprise for decades and of depriving union members of their rights through that influence.
The settlement implemented a court-appointed monitor to oversee the union's internal affairs, required changes to the Teamsters' election procedures to help prevent corruption, and established a review board to investigate allegations of wrongdoing. According to the Wednesday filings, that review board has permanently barred roughly 400 individuals from union membership.
Prosecutors noted that in 2015 the Justice Department agreed to a gradual reduction of external oversight. On Wednesday they informed U.S. District Judge Loretta Preska that the staged wind-down has run its course and asked her to approve the termination of court supervision. "The (settlement) achieved its objectives of ridding the union of widespread corruption and organized crime," they wrote in the filings.
Founded in 1903, the Teamsters built significant influence in the mid-20th century by representing a large share of the nations truck drivers, which gave the union considerable leverage within American industry. Its membership now spans a wider set of sectors and includes more than 300,000 UPS drivers, employees at Costco warehouses, and workers in freight and airline operations.
Summary
The Justice Department has requested that a federal judge end nearly four decades of oversight of the International Brotherhood of Teamsters, arguing that the union has eliminated organized crime influence and restored democratic processes established under a settlement from 1989. The move follows a phased reduction of monitoring that began in 2015 and the review board's barring of roughly 400 people from union membership.
Key points
- The Department of Justice and the Teamsters filed joint papers asking a Manhattan federal judge to end court supervision established by a 1989 settlement.
- The settlement followed a 1988 racketeering lawsuit alleging mafia control of the union and aimed to restore democratic governance through a monitor, election reforms, and a review board.
- The Teamsters now represent a broader workforce, including over 300,000 UPS drivers, Costco warehouse workers, and freight and airline employees - sectors that could be affected by changes in union oversight and governance.
Risks and uncertainties
- Judicial approval is required - U.S. District Judge Loretta Preska must decide whether to accept the prosecutors' request to end oversight, so the outcome remains pending. This affects regulatory certainty for the union and its members.
- The union's past entanglement with organized crime and the fact that about 400 individuals have been permanently barred underscore lingering reputational and governance risks for sectors that rely on Teamsters labor, including logistics, freight, and airlines.
- Although the Justice Department began winding down external oversight in 2015 and asserts the process has concluded, the transition away from long-term monitoring introduces uncertainty about the durability of internal reforms and their enforcement over time.
Tags: Teamsters, DOJ, labor, unions, logistics