NYT: Local in Largest City Union Is Put Into Trusteeship

[Omaha Steve]

I'm a member of AFSCME local 251.


http://www.nytimes.com/2009/09/05/nyregion/05union.html

By STEVEN GREENHOUSE
Published: September 4, 2009

In an unusual move, one of the locals in New York City’s largest municipal union was placed in trusteeship late Friday after its embattled president was faulted for losing $1 million in members’ dues in the stock market and buying a $41,000 Cadillac for her predecessor as a retirement gift.

Pointing to continued corruption problems at the municipal union, District Council 37, its Washington-based parent imposed a trusteeship on Local 2054, which represents 5,000 administrative assistants at City University, City College and city-run community colleges.

As reasons for the trusteeship, the parent union, the American Federation of State, County and Municipal Employees, cited a substantial operating deficit, the lack of written procedures to ensure proper use of union credit cards and the $1 million loss in the value of the local union’s investments over a 14-month period.

The trusteeship, under which the parent union will appoint an outsider to run the local, was announced three days after the local’s executive board voted on Tuesday to oust the local’s president, Colleen Carew-Rogers. The board brought union charges against her alleging that she misspent money and flouted democratic rules.

Among the accusations are that she had misspent members’ dues money, without the executive board’s approval, to buy the Cadillac for her predecessor and mentor, Joan Reed, in 2007 and to throw a $30,000 going-away party for Ms. Reed, who died last year.

On June 22, an audit ordered by the parent union criticized Ms. Carew-Rogers for violating the union’s financial policies by investing members’ dues money in risky stock funds.

FULL story at link.

[demosincebirth]

1. My sympathy to the rank and file