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I N T E R N A T I O N A L B R O T H E R H O O D O F T E A M S T E R S S U M M E R 2 0 1 2www.teamster.orgIF ROMNEYWINS,WORKERSLOSE

IN THIS ISSUE8 Romney ExposedIf Romney Wins, Workers Lose12 Voter RegistrationDeadlinesState-By-State Guide14 Beyond Right To WorkWhat’s At Stake InThe War On Workers22 There Is SafetyIn A UnionStudy Finds RepresentationAnd Safety Linked24 All Aboard ForJob SecurityRail Members RatifyNational Contract26 A Strong StartFDOC Teamsters RatifyFirst Contract8142 TEAMSTER NEWS• Registering Members To Vote• Teamsters Call On NationalExpress to Respect Rights• Waste Proposal Gets Trashed• Hollywood TeamstersRatify Contract• Remembering James “Woody”Woodward20 ORGANIZING• Allied/Republic WorkersJoin Teamsters• Local 175 Welcomes PepsiWorkers• Teamsters Welcome MoreDurham Drivers• Atlantic Aviation WorkersJoin Local 89• Local 727 OrganizesShuttle Drivers• Sun Belle ProduceWorkers Join Local 7028 FINANCIALS41 COURT MATERIALTEAMSTERwww.teamster.orgInternational Brotherhoodof Teamsters25 Louisiana Avenue, NWWashington DC 20001-2198202-624-6800The Teamster (ISSN 1083-2394) is the official publicationof the International Brotherhood of Teamsters,25 Louisiana Avenue, NW, Washington DC 20001-2198. Itis published four times a year. Periodical postage paid atWashington, DC and at additional mailing offices.SUMMER 2012 / VOLUME 109, NO. 3© 2012 International Brotherhood of Teamsters. All rightsreserved. Reproduction in whole or in part without writtenpermission is prohibited. Postmaster: Send addresschanges to The Teamster, Affiliates Records Department,25 Louisiana Avenue, NW, Washington, DC 20001-2198.Subscription rates: $12 per year. Single copies, $2.(All orders payable in advance.) Members should sendaddress changes to their local union.Cover Illustrated by Chad Crowe26Like us on Facebookwww.facebook.com/teamstersand Follow @Teamsters on Twitter.SIGN UP FOR UPDATES—Text “IBT” to 64336(message and data rates may apply)

The Billionaires’ CandidateA M E S S A G E F R O M G E N E R A L P R E S I D E N T J A M E S P. H O F F AThe billionaires fueling Mitt Romney’s presidentialcampaign don’t like American workers, except toexploit them. And they clearly know a soul matewhen they see one.At last count, 33 billionaires have donated to Romney’s“Restore Our Future” PAC.Few of Romney’s billionaire backers make actualproducts—most simply siphon income from ordinaryworkers into their Swiss bank accounts.Romney’s most prominent backer is Macau casinooperator Sheldon Adelson, who is expected to giveRomney’s PAC as much as $100 million.America’s aristocrats of inherited wealth are alsobacking Romney—the Marriott hotel heirs, the Wal-Mart heirs, a Mellon Bank heir and an heir to a billionairecoal mining family.What is so troubling about Romney’s backers is nottheir wealth but the source of their wealth. These corporatepredators siphon income out of workers’ pockets,out of communities and out of the country.Romney’s predatory backers want to consolidatetheir power so they can continue funneling America’swealth into their own investment portfolios.History shows us that nations collapse when a smallelite controls the government and runs an economicsystem for its exclusive benefit. Nations prosper whentheir economies reward broad groups—not just thewealthy, but merchants, traders, inventors, manufacturersand workers.A Romney donor unintentionally exposed the elite’sview of ordinary people at David Koch’s Southamptonestate at a Romney fundraiser recently: “I don’t think thecommon person is getting it...My college kid, the babysitters, the nails ladies—everybody who’s got the right tovote—they don’t understand what’s going on. I justthink if you’re lower income—one, you’re not as educated,two, they don’t understand how it works, theydon’t understand how the systems work, they don’t understandthe impact.”Actually, they do understand it. Workers know they’reunder attack by America’s elite. But so are small businessowners, community banks, factory owners and entrepreneurswho want to make a product in America. But theelite’s powerful propaganda machine turns our attentionto the teacher, the police officer and the nurse. It’s therich telling the middle class that the poor are to blame.What our government should be doing is reformingWall Street, providing relief to the middle class andworking families, and grounding the vulture capitaliststhat plunder working families and send jobs overseas.But be assured, a President Mitt Romney would makesure that never happens.

TEAMSTER NEWSREGISTERING MEMBERS TO VOTECombating the Attack on Workers’ RightsCoast-to-coast efforts are under wayat locals and Joint Councils to registervoters and increase participation inthis year’s election. It’s especially importantfor Teamsters to be voters this fall. Opponentsof labor are still mounting an all-outwar on workers. The high-profile attacksin Indiana, Ohio and Wisconsin were justthe beginning.California Teamsters from Local 856in San Bruno were out recently registeringmany of their their union brothers andsisters. They set up tents and tables in theparking lot outside Delta Dental, whereLocal 856 members work. Elsewhere inCalifornia, locals 986, 572, 630, 63, 396and 853 have been charging ahead withvoter registration by having their businessagents sign up members at their worksitesat a nearly nonstop pace.“Our state has a lot on the line andour members know that,” said RandyCammack, International Vice Presidentand Secretary-Treasurer of Local 63.“By going facility to facility, our businessagents have registered hundreds ofnew voters,” said Randy Korgan, Trusteeof Local 630.Washington state Teamsters are reachingout in new ways to members. JointCouncil 28 in Seattle is working with acoalition partner to test messages andoutreach to their members who haven’tregistered to vote or have changed theiraddresses.“We are alsotrying out a phoneapp provided by theWashington Secretaryof State called‘WA Votes’ to helpmembers registerto vote online andupdate their mailingaddresses,”said Rick Hicks,President of JointCouncil 28. “BusinessAgent Abe Taylor of Local 174 walkedaround warehouses and driver bays withhis phone app and resolved hundreds ofvoter registration issues in just a few days.”Boots on the GroundGreg Floyd, President of Local 237 in NewYork City, is planning a September voterregistration drive. With more than 14,000registered voters, Local 237 takes votingvery seriously. “Our local has traditionallyhad an aggressive voter registrationprogram,” Floyd said. “Our membersunderstand how important is to vote sincemany of their departments’ budgets arecontrolled by elected officials.”In New Jersey, Local 469 is planning fora voter registration drive to coincide with ashop steward meeting. “In addition tomaking sure our members are registered tovote, we will also have another drive at alocal shopping mall,” said Fredrick Potter,International Vice President and Presidentof Local 469.Voters in Michigan are planning tomake a change in their state constitutionthat supports collective bargaining.“Last year, Michigan public servicesworkers lost a great deal when the right tocollectively bargain was taken away,” saidDavid Robinson, President of Joint Council43 in Detroit. “Now we are working withall the trade unions in the state to reversethat decision with a constitutional amendment.Re-establishing collective bargainingrights is one of the most important fightswe’ve ever had.”If you would like to volunteer to helpwith a voter registration drive in your area,please contact your local union.GENERAL EXECUTIVE BOARDJames P. HoffaGeneral President25 Louisiana Ave. N.W.Washington, D.C. 20001Ken HallGeneral Secretary-Treasurer25 Louisiana Ave. N.W.Washington, D.C. 20001VICE PRESIDENTSAT-LARGERome Aloise2100 Merced St.,Suite BSan Leandro, CA 94577Ferline Buie2120 BladensburgRd. N.E.Washington, D.C. 20018George Miranda110 Wall St., 3rd FloorNew York, N.Y. 10005Al Mixon5425 Warner Rd., Unit 7Cleveland, OH 44125Fredrick Potter3400 Highway 35Executive Plaza, Suite 7Hazlet, N.J 07730Fred Simpson41475 Gardenbrook RoadNovi, Michigan 48375George Tedeschi25 Louisiana Ave. N.W.Washington, D.C. 2TEAMSTERSCANADARobert Bouvier,PresidentTeamsters Canada2540 Daniel Johnson,Suite 804Laval, QuebecCanada H7T 2S3Stan Hennessy1 Grosvenor SquareDelta, B.C.Canada V3M 5S1Craig McInnes275 Matheson Blvd. E.Mississauga, OntarioCanada L4Z 1X8CENTRAL REGIONBrian Buhle1233 Shelby St.Indianapolis, IN 46203John Coli1300 W. Higgins #220Park Ridge, IL 60068Becky Strzechowski1300 W. Higgins,Suite 301Park Ridge, IL 60068Gordon SweetonP.O. Box 99Saginaw, MO 64864EASTERN REGIONWilliam Hamilton2845 Southampton Rd.Philadelphia, PA 19154Dan Kane Sr.1308 Pierce St.Rahway, N.J. 07065John Murphy348 D St.Boston, MA 02127Sean M. O’Brien544 Main St.Boston, MA 02129SOUTHERN REGIONTyson Johnson1007 Jonelle St.Dallas, TX 75217Ken Wood5818 E. MLK Jr. Blvd.Tampa, FL 33619WESTERN REGIONRandy Cammack845 Oak Park Rd.Covina, CA 91724Rick Middleton460 Carson Plaza Dr.Carson, CA 90746Steve Vairma10 Lakeside Lane,Suite 3-ADenver, CO 80212TRUSTEESRon Herrera880 Oak Park Rd.,Suite 200Covina, CA 91724Jim Kabell1850 E. DivisionSpringfield, MO 65803Kevin Moore2741 Trumbull Ave.Detroit, MI 482162 TEAMSTER | SUMMER 2012 | www.teamster.org

GOING GLOBALTeamsters Call on National Express to Respect Workers’ RightsTeamster school bus drivers and representativesfrom the United States andCanada recently called on NationalExpress Group (NEX), a large UnitedKingdom-based multinational corporation,to honor the human rights of itsNorth American transportation workers atthe company’s annual shareholder meetingin London.“We traveled to London to let the companyand their shareholders know that NationalExpress is not treating its workersright,” said Linda Aguiar, a 25-year driverwith Durham and member of Local 853 inSan Leandro, Calif.The delegation traveled to the UnitedKingdom over serious concerns about NationalExpress’s negative human rights andlabor relations record at its North Americansubsidiaries, Durham School Services in theU.S. and Stock Transportation in Canada.“I want this company to be held accountablefor everything they do againstworkers,” said Sebrina Isom, a 27-yearschool bus driver and member of Local509 in Cayce, S.C. “Our goal is to have areal workplace rights policy.”At last year’s annual shareholder meeting,National Express introduced a purportedglobal “Workplace Rights Policy,”which was seemingly prompted by an upsurgein interest among U.S.-based workersto form a union, and was implementedin a bid to preempt criticism of NationalExpress’s questionable labor relationsrecord in the U.S.The company has been the recipientof National Labor Relations Board complaintsand charges that include unlawfulterminations, surveillance, retribution anddisparate treatment of its employees whosupported unions.The Teamster delegation bravely questionedNational Express Chief ExecutiveDean Finch about worker treatment at hissubsidiaries. While Finch avoided answeringtheir questions, the delegation received supportand rounds of applause from companyshareholders attending the meeting.“The shareholders really stood up inour defense, which was great. They saidthey hope to see us next year, and told theboard they they’ve got problems in Americaand need to work it out,” Isom said.The Teamster delegation from the U.S.and Canada was joined at the meeting byglobal alliance partners, including UK-basedUnite the Union, the Change to Win Federation,the Transport Workers Union and InternationalTransport Workers’ Federation.“It felt good to know that we wereheard by the shareholders, and to knowthat we are not just standing up for ourselves,but for all bus drivers,” said RosieMiranda, a Durham driver and member ofLocal 287 from San Jose, Calif., who spokeat the meeting. “We’re not going away untilwe get a genuine policy that protects allworkers’ rights.”www.teamster.org | SUMMER 2012 | TEAMSTER 3

TEAMSTER NEWSWaste ProposalGETS TRASHEDLocal 350 Helps Defeat Bad Ballot MeasureWhen a proposal to overhaul SanFrancisco’s waste collectionprocess became a threat to Local350 members and to the city they serve,Bob Morales and his team went to work.Morales, Secretary-Treasurer of Local350 who also serves as Director of theTeamsters Solid Waste, Recycling and RelatedIndustries Division, worked hand-inhandwith allies from labor, the communityand across the political spectrum to soundlydefeat the measure, Proposition A. In fact,77 percent of the city’s voters rejected theproposal.“Proposition A would have severely hurtour members who work at the currentwaste company, Recology, and would havehurt their families,” Morales said. “Plus, SanFrancisco has the most successful recyclingprogram in the country, with a recyclingrate of nearly 80 percent, and city residentsare happy with their service. So this wouldhave had a huge negative impact on residentsand businesses in the city.”Morales said the community and politicalsupport was outstanding, especially thesupport from the San Francisco LaborCouncil. In addition, 99 percent of the city’selected officials, including the local RepublicanParty, opposed Proposition A.“This measure was a direct attack onour members who collect the garbage andrecycling,” Morales said. “Like the morethan 30,000 Teamsters across the countrywho do this job, they work hard every dayperforming one of the most dangerous jobsin our communities. Recology is a localcompany that is owned entirely by its employees,so this situation here is unique.The company is a major job provider and ithas some of the best labor practices. Thisproposition would have destroyed thestrong bond between Recology and its customers.Fortunately, city voters realized thisand firmly rejected Proposition A.”4 TEAMSTER | SUMMER 2012 | www.teamster.org

“COLLISION COURSE”A REVIEW OF JOSEPH McCARTIN’S BOOK ON THE PATCO STRIKEJoseph A. McCartin, Collision Course: Ronald Reagan, the Air TrafficControllers, and the Strike that Changed America (New York: OxfordUniversity Press, 2011)To veterans of the labor movement, the words “PATCO strike”require no further explanation: They conjure up unpleasant memoriesof one of the worst disasters to befall organized labor in thelate 20th century. Tackling a powerful employer—the U.S. government—arecently formed union of air traffic controllers engagedin an illegal strike in 1981 to compel the Federal Aviation Administration(FAA) to address its longstanding grievances. Approximately12,000 controllers struck, temporarily tying up travelacross the nation’s skies. Convinced that the air traffic systemcould not operate without their highly skilled labor, the strikersgambled that President Ronald Reagan’s administration wouldquickly back down. They were wrong. Reagan held firm. Strikerswere fired and barred from ever again working in their profession.PATCO was destroyed.Reagan’s anti-labor move signaled to private-sector employersthat strikes could be effectively fought and the tables turned ontheir unions. For organized labor, it was downhill from there.The “memory of PATCO’s destruction long haunted Americanworkers,” argues historian Joseph McCartin. In subsequent years,“PATCO’s ghost still had the capacity to instill fear” among tradeunionists.McCartin, a professor of history at Georgetown University anddirector of the Kalmanovitz Initiative for Labor and the WorkingPoor, revisits the strike, as well as its origins and consequences, inhis important and highly readable book, “Collision Course.” Heskillfully reconstructs the world of air traffic controllers from the1960s through the 1980s, capturing the emotional and physicaltensions of their work, their on-the-job frustrations, their aspirationsand strategies, and political efforts to improve their workingconditions and the safety of America’s skies. Equally important, hepieces together a fascinating picture of the federal government’sbehind-the-scenes maneuvering that significantly complicatesthe all-too-popular image of a principled President Reaganstanding firm against a union holding air traffic hostage to itsunreasonable demands.The significance of the PATCO strike lies not simply in theunion’s loss but in its consequences for the labor movement andthe nation as a whole. It “acted as a powerful catalyst that magnifiedthe effects of the multiple problems that beset Americanunions.” American employers increasingly resorted to strikebreakingand permanent replacements in their conflicts with theirunion members; the number of strikes fell precipitously in theyears to come. One of the strike’s “underappreciated politicalconsequences” was the “rise of avowedly antiunion conservatives”among Republican Party ranks, as support for Reagan’s hard linebecame a “litmus test of Republican loyalty.”That legacy is glaringly on display in the war on public sectorworkers in Wisconsin and elsewhere, where anti-union Republicansinvoke Reagan’s steely resolve in defeating PATCO. In sodoing, they engage in mythmaking by concealing an importanttruth. As McCartin shows, Reagan had “not set out to ‘drop abomb’ on PATCO”; he accepted the legitimacy of public sectorunions and initially engaged in extensive (and, McCartin notes,unprecedented) bargaining with the air traffic controllers. Onlyhis hard line against what was universally acknowledged as anillegal strike is recalled, not his willingness to bargain.Effectively bridging the gap between academic history andgeneral readers, “Collision Course” is a clearheaded and oftenmoving account of a decisive event in American labor historywhose complex origins and legacies remain relevant today.By Eric Arnesen, who teaches labor history at The George Washington University andserves as a member of the Teamsters Labor History Research Center Advisory Board.www.teamster.org | SUMMER 2012 | TEAMSTER 5

TEAMSTER NEWSLIGHTS, CAMERA,CONTRACT!Hollywood Teamsters Ratify Three-Year PactTeamsters at Local 399 in Hollywood, Calif. overwhelminglyvoted to ratify a new three-year contract thatincludes solid wage increases and maintains one of thebest health care plans in the country.Approved by 86 percent of the voters, the contract coversthe more than 3,500 members that handle transportationfor the motion picture and television industry in Hollywood.This includes drivers, mechanics, auto service anddispatchers on a wide range of projects from network, cableand reality television to independent films and big-budgetmotion pictures.“There were no takeaways or rollbacks,” said LeoReed, Motion Picture and Theatrical Trades DivisionDirector. “Given the current economic climate, thatwas a real victory.”A ‘Healthy’ AgreementLocal 399 was able to negotiate an agreement with theAlliance of Motion Picture and Television Producers(AMPTP) that will go a long way to cover a $425-millionshortfall in the health and pension plans. The majorityof the deficit in the funds will be covered through employercontributions.“By ratifying this contract, our members will still havethe same premium health care plan they had for years withlittle to no impact on their wallets,” Reed said.The contract, which took effect on Aug. 1, 2012, alsoincludes annual wage increases of 2 percent compoundedeach year.“I think our union did a great job negotiating the contract,”said David Cohen, an eight-year member of Local 399who is currently working as a studio driver at Universal. “Ibelieve that with the way the economy is right now we couldhave lost a lot—especially with our health care plan, butI believe the local did a great job protecting our benefits andmaintaining our medical insurance.”With contract negotiations for location managers andcasting directors on the horizon, Local 399’s work is not done.“With this agreement, I believe we have set thefoundation for successful negotiations with the AMPTP forour location managers and casting directors,” Reed said.“There is no doubt in my mind that we can continue ourunion’s tradition of offering the best representation in themotion picture and theatrical trades.”6 TEAMSTER | SUMMER 2012 | www.teamster.org

In MemoriamTeamsters RememberJames “Woody” WoodwardOn May 29, James “Woody” Woodward, 61,passed away peacefully at Capital Hospiceafter a vigilant fight against cancer. Woodwardwas the Director of the Teamsters BuildingMaterial and Construction Trade Department.He began a long and distinguished career asa Teamster in January 1973. During more than35 years as a Teamster, he served as Trustee forLocal 639; as Business Agent and RecordingSecretary for Local 639; and International Representativefor the International Brotherhood ofTeamsters. While at Local 639 in Washington,D.C., he represented the construction industry,the trade show industry and other various industries.He also served as Trustee for the Health andPension Trust and as a delegate to six InternationalConventions from 1981 to 2001.“Woody was a great Teamster who neverstopped working on behalf of the members,”said Jim Hoffa, Teamsters General President.“He dedicated his life to lifting hard-workingAmericans out of poverty and helped make theworld a better place for us all. He was a caring,determined and selfless man.”“Woody was a good friend and one of thegreatest and most dedicated Teamsters I’ve metin my 32 years as a Building Material and ConstructionTrade Teamster,” said Marion Davis Jr.,the new Director of the Building Material andConstruction Trade Division.Woodward is survived by his wife, DebraWoodward, and his children, James “Pete”Woodward and Nicole Woodward Felise.“He dedicated his life to lifting hard-workingAmericans out of poverty and helpedmake the world a better place for us all.He was a caring, determinedand selfless man.”–JIM HOFFA, Teamsters General PresidentTHAZMAT SAFETY UPDATEhree years ago, Jody Johnson, a YRC Freight clerk and memberof Sacramento’s Local 150, participated in a program onhow to train others in hazardous material instruction. Beforethat, her co-workers were continually asking her questions aboutcompliance, loading, handling and general safety.“I think about the things I did both at work and in daily life beforethe training, and I realize that I was constantly putting myself indanger,” Johnson said.Thanks to the hazmat training, she is now able to provide herco-workers with the correct answer and thus advance safety in herworkplace. “I have been able to go back to my job and help on a dailybasis,” Johnson said.The U.S. Department of Transportation’s Pipeline and HazardousMaterials Safety Administration has recently awarded the TeamstersSafety and Health Department a $1-million grant to continue theDOT Hazardous Materials Instructor Training (HMIT) program.“The DOT-HMIT program is an excellent program that providesour members with knowledge and skills to effectively provide trainingto their co-workers. We strongly encourage members of safety andhealth committees, stewards and rank-and-file members who have aninterest in safety and health to consider participating in our trainingprogram,” said LaMont Byrd, Director of the Teamsters Safety andHealth Department.This will be the fourth year that the grant will allow the InternationalBrotherhood of Teamsters to provide members throughout thecountry with advanced hazmat safety training. The training, designedas a “train the trainer” program, aims to train those who will providehazmat safety training to their co-workers.Thomas Folchetti, a Local 282 driver for Empire Transit Mix,participated in the DOT-HMIT program the first time it was offeredat his local in 2011. The training provided Folchetti with a wealthof new skills and hazards prevention strategies related to hazmatactivities. Additionally, Folchetti was given instruction in how to sharethese skills and strategies with his co-workers.“I am passionate about teaching,” Folchetti said. “I valued theopportunity to build my own presentation based on the materialpresented during the training.”For more information, visitwww.teamsterworkertrainingprogram.org.www.teamster.org | SUMMER 2012 | TEAMSTER 7

ROMNEYExposedIF ROMNEY WINS, WORKERS LOSE8 TEAMSTER | SUMMER 2012 | www.teamster.org

The last thing this country needs isa president who spent his businesscareer systematically impoverishingAmerican workers.That’s exactly what Mitt Romney didas co-founder of Bain Capital, a privateequity firm. Bain bled companies dry.Romney devised methods of pullingcash out of companies that Bain eitherbought or invested in, usually to the detrimentof the workforce. He slashed costs,fired workers, shipped jobs overseas andhalted investment and modernization. Itdidn’t matter to him if a company failedbecause Romney won either way.As a politician, Romney has beeninconsistent on every issue but one: cheaplabor. And that’s a big reason he attractsthe backing of David Koch and 33 billionairesfrom the Forbes billionaire list. Hispolicies would expand the reservoir ofcheap labor available to billionaires.America needs a vibrant middle classfor our economy to work. America doesnot need a cheap-labor conservative in theWhite House—one who doesn’t understandthat prosperity depends on manypeople making things and many peoplebuying them.If Mitt Romney wins, American workerslose.Private EquityRomney’s career as a vampire capitalist lefta trail of empty factories and bankrupt enterprises.One in five of Bain’s investmentsunder Romney went bankrupt or liquidatedwithin nine years.Between 1987 and 1995, Bain made$587 million from five businesses and allfive eventually went bankrupt.In 1992, Bain bought a hanging filefolder company in Indiana called SCM. OnJuly 5, 1994, security guards surroundedthe building and told all 258 union workersthey were fired. They were told theycould reapply for their jobs at lower wages.Some did. Eventually the workers went onstrike, and Bain closed the plant. It’sagainst the law, but Bain got away with it.In 1993, Bain purchased a Kansas Citysteel mill, GS Industries, and drove it intobankruptcy. Bain partners did just fine,making $50 million. But more than 700workers lost their jobs, their health insurance,their severance pay and some of theirpension benefits. Then taxpayers picked upthe tab for the company’s underfundedpension plan.In 1994, Bain led a group of investors tobuy Dade International, a medical technologyfirm in Miami. They fired close to2,000 workers and loaded the companywith debt—while taking hefty managementfees, of course. Dade went bankruptwithin eight years.Romney: Outsourcing PioneerWhile at Bain, Romney was as happy toplunder the taxpayer as he was to loot thecompanies he bought. He relentlesslysniffed out tax breaks, subsidies and bailoutseven as he stashed his money in a Swissbank account. Meanwhile, Bain set up 138offshore accounts in the Cayman Islands.Romney’s indifference to the Americanworker was also evident in his willingnessto buy companies that sent jobs overseas.The Washington Post reported that in1993 Bain bought a portion of CorporateSoftware Inc., which outsourced customersupport services for high-tech companieslike Microsoft. A few years later, the companybegan setting up call centers overseas.It merged with another company and continuedto offshore call centers. By 1998, thecompany spun off Modus Media, withBain as its biggest shareholder.Romney’s campaign tried to suppressthe Washington Post story that describedModus Media as specializing in helpingcompanies send manufacturing jobs overseas.According to the Post, it producedsoftware and training products in Australiafor Microsoft. It also did packaging and assemblyoverseas for companies such asIBM, Sun Microsystems, Hewlett-PackardCo. and Dell Computer Corp.Companies like Modus Media are thereason manufacturing employment in theU.S. computer industry was actually lowerin 2010 than it was in 1975.Etch A SketchRomney the presidential candidate soundsmuch different than Romney the vampirecapitalist. At a metalworking factory inwww.teamster.org | SUMMER 2012 | TEAMSTER 9

Cincinnati in June, he told the crowd, “Forme it’s all about good jobs for the Americanpeople and a bright and prosperous future.”That was not Mitt Romney’s first flipflopand it was far from the last. Romneychanges positions the way a traffic lightchanges color. His lack of principles,along with his passionfor cheaplabor, may bethe onlythings thatstayed constantabout him.Romneylaunched hispolitical careerin 1994. Thoughit was unclear that he was a resident ofMassachusetts, he challenged U.S. Sen.Edward M. Kennedy for re-election. Helost, but not before taking positions atodds with his current self-identificationas a conservative.To win votes in deep-blue Massachusetts,he portrayed himself as a social moderateon issues such as health care,reproductive rights and immigration.Back then, he said, “I believe that sinceRoe v. Wade has been the law for 20 yearswe should sustain and support it.”He’s changed his tune since then.“Roe v. Wade has gone too far,” he saidduring his campaignIn 1996, Romney called the flattax a “tax cut for fat cats.” In 2011,Romney said “I love a flat tax.”for president in 2007.Romney told the Log Cabin Republicansthat he'd be better than Ted Kennedyon gay rights. In 2002, he passed out a flyerin Boston’s gay community saying “Mittand Kerry wish you a great Pride Weekend!All citizens deserve equal rights, regardlessof their sexual preference.” (Kerry is KerryHealey, his lieutenant governor.)Six years later, Romney donated $10,000to the anti-gay National Organizationfor Marriage.Candidate Romney said in 1994, “Idon’t line up with the NRA.” Today, he’s alifetime member of the NRA. In 2007 hesaid he supported the assault weapons ban.Months later, hesaid he didn’tsupport any guncontrol legislation.He even told agun story thatchanged withina week. OnJanuary 10,2007, heclaimed to own a gun. Fourdays later, he said he didn’t.Romney’s memory is equally trickywhen it comes to his military service—orlack thereof. In 1994, he told the BostonHerald, “It was not my desire to go off andserve in Vietnam.” Fourteen years later,during a presidential debate, he remembereddifferently. “I longed in many respectsto actually be in Vietnam and berepresenting our country there,” he said.The list goes on and on. In 1996, Romneycalled the flat tax a “tax cut for fatcats.” In 2011, Romney said “I love a flattax.” During a debate in 2008, he said, “I10 TEAMSTER | SUMMER 2012 | www.teamster.org

Photo via AP/Wide World Photoslike mandates. The mandates work.” Twoyears later he told the Manchester UnionLeader, “I think it’s unconstitutional onthe 10th Amendment front.” He’s done acomplete 180 on a capital gains tax cut. “Ibelieve the tax on capital gains should bezero” became “It’s a tax cut for fat cats.”Romney’s spokesman, Eric Fehrnstrom,recently shrugged off his boss’s chameleonlikepersonality. “Everything changes,”Fehrnstrom told CNN. “It’s almost like anEtch A Sketch. You can kind of shake it upand restart all over again.”Governor of MassachusettsOne thing Romney can’t shake up is hisrecord as governor of Massachusetts. Asthe state’s chief executive from 2002-06,he systematically tried to lower workingfamilies’ standard of living. The resultsin Massachusetts were the same as theywere for the companies that Bain exploited:less prosperity for broad groupsof workers.Massachusetts ranked 47th among the50 states in job creation during Romney’stenure in office. Though the national rateof job growth was over 5 percent, Massachusettslagged far behind at 0.9 percent.A Northeastern University economistfound that Massachusetts was behind onevery economic indicator while Romneywas in office.He raised taxes, vetoed an increase inthe minimum wage and presided overanemic job creation. He tried to weakenworkers’ rights. He vetoed a card checkbill as well as a measure that would haveprevented state vendors from sendingwork overseas. He tried to prevent unionmembers from becoming managers instate government and to exempt publicconstruction projects from the prevailingwage law.His first budget as governor included$240 million in fee increases. He raised thecost of ice skating, registering a boat, takingthe bar exam, hauling hazardous wasteand many other activities.Billionaire BuddiesRomney panders to super-rich donors whowant to impoverish and exploit America’smiddle class.He embraces the U.S. Supreme Court’sCitizens United decision, which openedthe floodgates of corporate cash into thepolitical system. In one of his most repeatedcomments, he told a voter, “Corporationsare people, my friend.”Billionaire David Koch hosted one ofMitt Romney's first fundraisers for his2012 campaign and recently held anotherat $50,000 a head. One protester’s signread, “I don’t mind you being rich, I mindyou buying the government.”Dozens of billionaires are backingRomney’s bid for the presidency. Theypledged to contribute $1 billion to put himin the White House. They may come upwith even more, due to the largesse of theU.S. Chamber of Commerce, Karl Rove’sAmerican Crossroads and the Koch brothers.The Kochs, in fact, pledged to spend$400 million on this election cycle, morethan John McCain spent in his entire presidentialcampaign.The billionaires expect a big payback ontheir investment. If Romney does as promisedhe’ll gut environmental regulations, repealthe Dodd-Frank financial reforms andslash corporate tax rates. He would divertuntold billions from the U.S. Treasury intothe wallets of the 1 percent. The Wal-Martheirs alone would save $32.7 billion if aPresident Romney eliminates the estate tax,as he has promised.Workers would not receive the kindof loving treatment that Romney plansto lavish on his rich buddies. He supportsright-to-work-for-less and opposes theEmployee Free Choice Act. He wants toweaken unions by making automaticpaycheck deductions of dues illegal. Andhe strongly supports privatization ofgovernment functions.As a businessman and as a politician,Mitt Romney has ruthlessly exploitedworking Americans for his own enrichment.His legacy is one of prosperity forhimself and hardship for workers. As president,no one should expect any different.www.teamster.org | SUMMER 2012 | TEAMSTER 11

★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★VOTERRegistrationDeadlinesElection Day 2012 is on Tuesday, November6. With all the coverage of the election,it’s unlikely that you’ll forget whenthat important day is. What you mightnot know is that, in states across thecountry, new laws have gone into effectthat could potentially prevent you fromvoting. The conservative crusade for voteridentification laws is little more than away to disenfranchise poor people andminorities. It’s important to know thelaws in your state.At right is a list of registrationdeadlines for each state, plus the websitewhere you can go for more information.ALABAMARegister By: October 26For more information:www.sos.state.al.us/electionsALASKARegister By: October 7For more information:www.elections.alaska.govARIZONARegister By: October 8For more information:www.azsos.gov/electionARKANSASRegister By: October 7For more information:www.sos.arkansas.gov/electionsCALIFORNIARegister By: October 22For more information:www.sos.ca.gov/elections/COLORADORegister By: October 9For more information:www.sos.state.co.us/pubs/electionsCONNECTICUTRegister By: October 30For more information:www.ct.gov/sotsDELAWARERegister By: October 13For more information:www.elections.delaware.govDISTRICT OF COLUMBIARegister By: October 15For more information:www.dcboee.usFLORIDARegister By: October 9For more information:www.election.dos.state.fl.usGEORGIARegister By: October 8For more information:www.sos.ga.gov/electionsGUAMRegister By: October 26For more information:http://gec.guam.gov/HAWAIIRegister By: October 8For more information:www.hawaii.gov/electionsIDAHORegister By: Election DayFor more information:www.idahovotes.govILLINOISRegister By: October 9For more information:www.elections.state.il.usINDIANARegister By: October 9For more information:http://www.in.gov/sos/electionsIOWARegister By: Election DayFor more information:www.sos.iowa.govKANSASRegister By: October 16For more information:www.kssos.org/elections/elections.htmlKENTUCKYRegister By: October 9For more information:www.sos.ky.gov/electionsLOUISIANARegister By: October 8For more information:www.sos.la.gov/tabid/68/default.aspxMAINERegister By: Election DayFor more information:www.maine.gov/sos/cec/elecMARYLANDRegister By: October 16For more information:www.elections.state.md.us12 TEAMSTER | SUMMER 2012 | www.teamster.org

★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★★MASSACHUSETTSRegister By: October 17For more information:www.sec.state.ma.us/eleMICHIGANRegister By: October 9For more information:www.michigan.gov/sosMINNESOTARegister By: Election DayFor more information:www.sos.state.mn.us/index.aspx?page=4MISSISSIPPIRegister By: October 6For more information:www.sos.ms.gov/elections.aspxMISSOURIRegister By: October 10For more information:www.sos.mo.gov/electionsMONTANARegister By: Election DayFor more information:www.sos.mt.gov/electionsNEBRASKARegister By: October 26For more information:www.sos.state.ne.us/elecNEVADARegister By: October 16For more information:www.nvsos.gov/electionsNEW HAMPSHIRERegister By: Election DayFor more information:www.sos.nh.gov/elections.aspxNEW JERSEYRegister By: October 16For more information:www.nj.gov/state/electionsNEW MEXICORegister By: October 9For more information:www.sos.state.nm.usNEW YORKRegister By: October 17For more information:www.elections.ny.govNORTH CAROLINARegister By: October 12For more information:www.ncsbe.govNORTH DAKOTARegister By: Election DayFor more information:www.nd.gov/sos/electvoteOHIORegister By: October 9For more information:www.sos.state.oh.us/elections.aspxOKLAHOMARegister By: October 12For more information:www.ok.gov/electionsOREGONRegister By: October 16For more information:www.oregonvotes.orgPENNSYLVANIARegister By: October 9For more information:www.dos.state.pa.us/bcelPUERTO RICORegister By: September 18For more information:www.ceepur.org/RHODE ISLANDRegister By: October 6For more information:www.elections.state.ri.usSOUTH CAROLINARegister By: October 6For more information:www.scvotes.orgSOUTH DAKOTARegister By: October 22For more information:www.sdsos.gov/electionsTENNESSEERegister By: October 9For more information:www.tn.gov/sos/electionTEXASRegister By: October 9For more information:www.sos.state.tx.us/electionsUTAHRegister By: October 22For more information:www.elections.utah.govVERMONTRegister By: October 31For more information:www.vermont-elections.orgVIRGINIARegister By: October 15For more information:www.sbe.virginia.govVIRGIN ISLANDSRegister By: October 3, 2012For more information:http://www.vivote.gov/WASHINGTONRegister By: October 29For more information:www.sos.wa.gov/electionsWEST VIRGINIARegister By: October 24For more information:www.sos.wv.gov/electionsWISCONSINRegister By: Election DayFor more information:gab.wi.gov/elections-votingWYOMINGRegister By: October 22For more information:soswy.state.wy.us/elections/elections.aspxSign up for updates–Text IBT to 64336(message and data rates may apply)www.teamster.org | SUMMER 2012 | TEAMSTER 13

BEYONDRIGHTTOWORK▲CORPORATE PROFITSWORKERS’ WAGES▲14 TEAMSTER | SUMMER 2012 | www.teamster.org

WHAT’S AT STAKE INTHE WAR ON WORKERSOn May 6, a United States senatorfrom Ohio took to the lectern onthe Senate floor to make his casefor a piece of legislation bearing his name.“As long as [the unions] have the power theyhave had, they are bound to make unreasonabledemands,” he said. “One of the purposesof this bill is to cut that power downsomewhat.”The year was 1947 and the lawmaker wasSen. Robert A. Taft. He was arguing for a billknown as the Taft-Hartley Act, a law writtento limit the power of workers to effectivelyorganize and bargain collectively. With thislaw, Taft and his colleagues planted the seedof the modern war on workers. Their efforts65 years ago are the reason why earlier thisyear Indiana could call itself the first right-toworkstate in America’s industrial heartland.Sen. Taft armed corporate America withone of the most powerful weapons againstorganized labor. By financially handicappingunions, right-to-work laws have beenwielded against workers in an effort to crippletheir bargaining power and shift evermore power and resources to the 1 percent.Twenty-two predominantly Southernstates enacted right-to-work laws long ago,stifling unionization and driving downwages in those states. After a decade of dormancy,right to work—more aptly calledright to work for less—has been revived by acoalition of lawmakers, tea party groups,manufacturers and conservative think tanks.In 2011, anti-worker politicians were pushingfor these laws in 10 states.Still, many people are unclear about whatright to work actually means. Its misleadingname only adds to the confusion.Right-to-work laws don't give workersthe right to refuse to join a union—theyhave always had that right. By outlawingunion security clauses, right-to-work lawsprohibit agreements that require all workerswho benefit from union representation toshare in the costs of the union. Even underright to work, unions have to represent allworkers covered by a collective bargainingagreement. Right-to-work laws simplyallow workers to refuse to pay dues for thatrepresentation and to get a free ride. Thismeans that workers who enjoy the benefitsof a union contract can force their co-workersto subsidize the costs of their representation,which ultimately weakens the union’sability to represent its members.It was Taft-Hartley that granted statesthis power and set the stage for right-toworklaws that swept through the Southand parts of the West. And the effects havebeen devastating for the American worker.“Wall Street and right-wing politicianssee right to work as the most effective way toshrink the middle class by starving theunions,” said Jim Hoffa, Teamsters GeneralPresident. “They have been taking advantageof the bad economy and using a crisis createdon Wall Street to go after workers and permanentlylower workers’ living standards.”The groups behind right to work claimthat their intent is to spur job growth.The average worker in right-to-work statesmakes about $1,500 less per year thanworkers in other states. These lower laborcosts supposedly attract businesses to stateswith anti-union laws. But it turns out thatjob creation in right-to-work states isn’texactly stellar.Of the 12 states with the highest unemploymentin the nation, eight of them arewww.teamster.org | SUMMER 2012 | TEAMSTER 15

ight to work. Oklahoma, the last state tobecome right to work before Indiana, hasseen the number of manufacturing jobsdrop by a third since it adopted right towork in 2001.From Corporate Offensiveto Great RecessionFor the Wall Street-backed forces that havesuch overwhelming influence in this country,laws like right to work are part of alongstanding campaign against the middleclass that has been under way for at leastthe last 30 years. Since 2008, that campaignhas taken a new turn with the latest war onworkers, hitting public sector employeesespecially hard. While it is a relatively newthreat that these workers are facing, the attackson public sector workers are really anextension of the long-term corporateagenda against unions.Until now, unions in the public sectorhave been mostly spared from the sharpdecline in membership experienced by privatesector workers since the 1970s. A deeprecession took hold during that decade andwith it came a commitment by corporateAmerica to permanently lower the livingstandards of workers.A Business Week article at the timesummed up the challenge for big business:“It will be a hard pill to swallow—the ideaof doing with less so that business can havemore...Nothing that this nation, or anyother nation, has done in modern economichistory compares to the difficultywith this selling job that must now be doneto make people accept the new reality.”This was part of the battle cry for thecorporate offensive that continues today,an offensive that has been steadily erodingwages and benefits for the middle class byattacking private sector unions. The waron unions in the private sector was thrustinto high gear a few years later whenJimmy Carter deregulated the truckingindustry and Ronald Reagan broke theair traffic controllers strike in 1981 (seepage 5).Over the last three decades, the declinein private sector union membership—from 30 percent to less than 7 percent—ledto a sharp rise in income inequality. In1980 the average CEO was paid 42 timesmore than the average blue-collar worker.Today, the average CEO makes more than380 times what the average worker makes.Unions in the public sector had faredbetter by comparison since the 1980s.Membership for public sector unions moreor less held steady at 36 percent of theworkforce. But all that changed with theonset of the financial crisis in 2008. States,counties and municipalities absorbed massivelosses and bad debts created in the privatesector by Wall Street. Government atall levels was hit with huge budget shortfallsand union-busters saw an opportunity tolaunch a war against public sector workers.Extremist right-wing politicians, manyof them swept into office by tea party conservativesin the 2010 midterm elections,have put public employees in their crosshairs.Suddenly teachers, firefighters, policeofficers and first responders are cast as enemiesof the American people. The narrativeabout the overpaid, lazy public workeris being peddled by anti-union groups thatwant to turn public and private sectorworkers against each other. This divideand-conquerstrategy is designed toadvance anti-worker legislation, includingright-to-work laws.One of America’s most notoriousunion-busters made this clear last yearwhen he was asked about the possibilityof his state becoming right to work.“Well, we’re going to start in a coupleweeks with our budget adjustment bill,”Wisconsin Gov. Scott Walker said to abillionaire campaign donor. “The first stepis we’re going to deal with collective bargainingfor all public employee unions,because you use divide and conquer.”Right to work in the private sector is essentiallythe counterpart to attacks on publicsector workers, explains Dr. GordonLafer, a political economist with theEconomic Policy Institute and an associateprofessor at the University of Oregon. “Allof these policies are geared toward thesame goal and that's to cripple the labormovement in this country,” he said.A Question of Economic FairnessThe political motivation behind antiunionlaws like right to work is difficult toignore. Corporate America is consistentlycampaigning for laws and regulations affectingworkers and unions which businesseswould never accept for themselves.In 2005 the Kentucky Chamber ofCommerce, a strong supporter of right-toworklaws, was asked by a union employerif the Chamber would continue to provide16 TEAMSTER | SUMMER 2012 | www.teamster.org

services to businesses that did not paydues. The Chamber's response? “The vastmajority of the Chamber’s annual revenuescome from member dues, and it would beunfair to the other members to allow anorganization not paying dues to be includedin member benefits,” it said.Yet this is exactly what groups like theChamber of Commerce insist unionsshould be required to do under right towork. Corporate lobbyists promoting rightto work would never support rules requiringthem to serve the interests of companiesthat don't pay dues to theirorganizations.This kind of double-standard for businessand workers gets to the heart of thepolitics underlying right to work. In fact, it’sa recurring theme in the ongoing war onworkers. And underlying the political aimsof anti-union laws is the more fundamentalquestion of economic fairness, which bigbusiness is determined to destroy.As Lafer explained, private corporationsbacking the attacks on public sector unionsare motivated by the same agenda as conservativepublic policymakers pushing forright-to-work laws in the private sector.“They know that the labor movement isthe one thing standing in the way of corporationshaving a free hand against theworking class,” he said.Stacking the odds against working peopleis central to the project of corporateAmerica. This is why organized labor isseen as such a threat to the 1 percent andits desire for absolute control. So whenright-wing politicians talk about “sharedsacrifice,” they are really talking about sacrificesto be shared among workers andtheir families, not between the middle classand the wealthy.It's been nearly four years since thehousing bubble popped on Wall Street,sending the global economy into a tailspin,and today the largest firms and banks aremore profitable than ever before. In fact,they are sitting on $2 trillion in wealth, anincomprehensible amount of money thatbig banks refuse to put back into the economy.Meanwhile the average working familylost nearly 40 percent of its net worthfrom 2007 to 2010.Last year, 1.35 million Americans filedfor bankruptcy. But once again, the rulesare different for big business, which is increasinglyusing Chapter 11 bankruptcy totear up union contracts and walk awaywith huge assets while workers are left tosuffer. When working Americans declarebankruptcy, they risk losing their homesand having their bank accounts seized. Butwhen the average CEO files for corporatebankruptcy, it’s an opportunity to breakthe union, gut employee pensions and rewardexecutives with raises and bonuses.This is what American Airlines has beentrying to do to its workforce. And Teamstershave faced the same greedy manipulation atHostess, where management looted thecompany, drove it into bankruptcy and nowwants its workers to sacrifice even more.As Teamsters Secretary-TreasurerKen Hall observed, this is the same typeof unethical management championedby private equity firms like Bain Capital,where Republican presidential candidateMitt Romney earned his credentials as avampire capitalist.“The executives at Hostess basicallytook a page out of the Romney playbook,”Hall said. “They managed to give themselvesnice raises while driving what wasonce a great American company intobankruptcy. It’s no different than whatcorporations are trying to do across thecountry. They want to take more moneyout of workers’ pockets by filing forbankruptcy. And with laws like right towork, wealthy CEOs are going after theone thing that stops them from robbingworkers—that’s the unions.”The Big PictureAt the end of 2009, YRC was headed forbankruptcy unless its bondholders wouldagree to an exchange of debt for stocks. Butcredit default schemes made bondholdersmore interested in seeing the company gobust. That is, until Hoffa put his foot downon behalf of more than 30,000 YRC Teamstertruck drivers. Hoffa put GoldmanSachs and other hedge funds on notice,raising the specter of hundreds of 18-wheeltrucks blockading Wall Street in protest.It wasn’t long before nearly 90 percentof bondholders agreed to the exchange,averting bankruptcy and saving tens ofthousands of jobs. This is how unions forcecorporate power to put workers’ livelihoodsover investment returns.But the system is still rigged. While itsounds like bad business to accumulate debtin the name of profit, Americans have seenin the last few years how hedge funds andprivate equity firms profit spectacularly offof failure. The more unions are stripped ofwww.teamster.org | SUMMER 2012 | TEAMSTER 17

their power, the easier it is for Wall Streetto get away with their parasitic ventures.That’s why corporate interests havemade the attack on unions so central totheir agenda. Their success has opened theway for even more brazen attacks on workers’wages. In the construction industry, forexample, CEOs are getting help from corporate-backedlawmakers to drive downwages by eliminating prevailing wage lawsand project labor agreements.After the 2010 midterm elections, theright wing declared open season on workers.Conservative groups like the AmericanLegislative Exchange Council (ALEC) andthe billionaire Koch brothers have authoredand bankrolled hundreds of anti-workerinitiatives from Maine to Minnesota, hijackingour democracy in the process.Not satisfied with buying off politicians,this anti-union coalition is also pushingschemes like paycheck deception laws inplaces like California in order to silence thepolitical voice of workers. Paycheck deceptionmeasures take away union members’right to use payroll deductions for politicalpurposes. These laws also weaken the abilityof working people to advance workingfamily issues such as legislation that wouldcreate jobs and stop job outsourcing.If it seems like the enemies of laborare using these difficult economic timesto bludgeon American workers, inEurope they are using the crisis to bleedworkers dry. Austerity in Europe has devastatedworking people with massive cutsto jobs, wages and pensions, leaving theireconomies reeling. Greece is on life supportand hanging on by a thread as theeconomic crisis has given way to politicalchaos. In Spain, austerity has resulted ina jaw-dropping 50 percent unemploymentrate among the youth. But noneof this seems to bother anti-workerpoliticians in the U.S. who are pursuingausterity with a vengeance while doingnothing about the too-big-to-fail banksthat are now even bigger than they werebefore the 2008 crash.And despite recordprofits and an unprecedentedtransfer ofwealth from workers tothe rich, overall Americanwages remain stagnant—asthey have forthe last 30 years. Globalizationand unfair tradeagreements continue toravage the middle class,outsourcing workers’jobs and making Americanscompete withworkers in low-wage countries like China.“The stakes really couldn’t be higher,”Hoffa said. “What we are facing is the threatof America becoming a kind of banana republicwith a small oligarchy of the richrunning everything—that means no middleclass and no democracy. Without the rightlaws, regulations and organized labor holdingcorporate America’s feet to the fire, thesecompanies will do anything to lower laborcosts, even if it means bringing third-worldpoverty wages here to the U.S.”Indeed, it’s no mystery why unions arebeing attacked with laws like right to work.“We are the last force holding the linefor working people in this country,” Hoffasaid. “Groups like ALEC want to turn backthe clock to the days when Americanworkers had few rights and no protectionsin the workplace. Unions are the mostpowerful thing standing in their way andthat’s why they are attacking us.”Don’t Mourn, OrganizeFortunately, there is reason to be hopefulthat unions and labor allies can turn thetide and save the middle class. In the lastyear, the labor movement successfully beatback right to work in Minnesota, Michigan,Missouri, Pennsylvania, Maine andNew Hampshire. And in Ohio, workingfamilies came together and defeated SenateBill 5, legislation that would have curbedcollective bargaining rights for 350,000public employees.In Indiana, history suggests there is astrong chance of repealing the recentlypassed right-to-work law there. A similarright-to-work bill was passed in 1957 in18 TEAMSTER | SUMMER 2012 | www.teamster.org

ALEC RAP SHEETConservative GroupPushing Anti-WorkerLegislationthe state and was repealed a few years later.With the upcoming presidentialelection, workers have an opportunity todefeat right to work and the larger antiunionagenda. Mitt Romney endorsedright-to-work efforts in Michigan andmade it clear that imposing a nationalright-to-work law would be a real priorityfor him as president. This is a dangerousidea, but it can be beaten in November.Beyond the elections, struggles in theworkplace and grassroots activism on thestreets have galvanized labor in a way thathas not been seen in decades. From thepowerful protests in Wisconsin to theelectrifying Occupy Wall Street movementthat rocked the country last year, there is astrong sense that workers and the 99 percentas a whole are not just fed up, but theyare ready to organize and fight back.Workers everywhere have seen thecollective power they hold and realize thattheir livelihoods and dignity depend onthat power.“In spite of the powerful enemies weface, workers are continuing to standtogether against the odds,” Hoffa said.“The Teamsters have been leading the wayin organizing in industries throughout thecountry to win more power for our sideand we’ve had some incredible victoriesin the last year.”By themselves, some of the unionvictories may seem small in the largercontext of the war on workers. For theworkers involved, they are anything butsmall. These are the kind of triumphsthat add up to the ultimate win forworkers: shifting the balance of powerand saving the middle class.The right-wing, corporate lobbying group, the American Legislative ExchangeCouncil (ALEC), has had a hand in almost every piece of anti-worker legislationin recent history. This is just a small sampling of their model legislationattacking workers and their families:Paycheck Protection Act: A bill aimed at inhibiting public employee unionsfrom raising funds for political activities.Competitive Contracting of Public Services Act: A bill designed to promoteprivatization by implementing cost requirements on government entities.Prevailing Wage Repeal Act: A bill calling for the repeal of “prevailing wage”requirements in state laws, lowering wage standards and undermining theability of union contractors to compete for bids.Resolution Urging Congress to Pass the Colombia Free Trade Act:A resolution in favor of the Colombia Free Trade Agreement, promotingthe “free trade” agenda that has led to the loss of millions of American jobs.These agreements give companies greater freedom to offshore jobs to countrieswith low to nonexistent labor standards and, in Colombia’s case, extremeviolence against trade unionists. ALEC also authored resolutions insupport of the Panama Trade Promotion Agreement and the US-Korea FreeTrade Agreement.Resolution in Opposition to Any Increase in the Starting (Minimum)Wage: While the federal minimum wage ($7.25) has not been raised in years,ALEC has written and pushed legislation against any increase in state andfederal minimum wage rates.Resolution Opposing Employer-Paid Health Care Mandates: A resolutionin opposition to state legislative efforts to require employers to purchasehealth insurance for their workers.Resolution Opposing Card Check: A resolution opposing the EmployeeFree Choice Act that would remove barriers to union organizing.Right to Work Act: Legislation prohibiting unions and private sectoremployers from making membership or payment of union dues a conditionof employment.For more information on ALEC, visit www.alecexposed.org.www.teamster.org | SUMMER 2012 | TEAMSTER 19

ORGANIZING ROUNDUPWASTE WORKERS UNITEAllied/Republic Workers Join TeamstersSanitation workers at Allied Waste in Fall River, Mass.voted recently to join Local 251 in East Providence, R.I.The 113 employees in the bargaining unit work as commercialdrivers, residential drivers and shakers.“We are happy that these dedicated workers chose to berepresented by the Teamsters Union,” said Joe Bairos, Secretary-Treasurerof Local 251. “Sanitation work is one of themost dangerous jobs in America, and they deserve the protectionsof a contract. We look forward to improving their workingconditions.”“My co-workers and I work hard and have been servingour communities for years,” said Marco Madeiros, a 20-yearfront-load driver at Allied/Republic. “Some of us have beenhere 20, 30 years. We had enough of the bullying and favoritism,so we chose to organize and form a union to negotiatewith the company as a group.”‘About Respect’“From the beginning, this was always about respect,” saidManny Alexander, a 10-year residential driver. “Allied/Republicdid not respect us and the work we do. Now we can negotiatea contract with the company that will protect our rightsand stop the unfair treatment.”“Standing up to a huge company like Allied/Republic canbe scary,” said David W. Laughton, Secretary-Treasurer ofJoint Council 10 of New England. “Republic has been bullyingand harassing workers in Fall River and all across the country.These workers put their bodies in harm’s way every day toprotect the public health. They should be proud of themselvesfor standing strong and sticking together to fight for theirrights.”Republic Services/Allied Waste is America’s second largestsolid waste and recycling company. In 2011, Republic earned$8.2 billion in revenues and declared profits of $589 million,up 15 percent per share from 2010.The Teamsters represent approximately 9,000 employees atRepublic Services and its subsidiaries at more than 150 facilitiesthroughout the U.S., Puerto Rico and Canada.For more information, visit www.facebook.com/Republic-ServicesTeamsters and follow twitter.com/repubteamsters.20 TEAMSTER | SUMMER 2012 | www.teamster.org

L O C A L 1 7 5PepsiA majority of warehouse, delivery, mechanicsand customer representatives workingat the Pepsi Beverage Company in Huntington,W.V., voted to join Local 175 recently.“These workers voted for the Teamstersbecause they wanted better working conditions,a voice on the job and protections forthe benefits they already have,” said RalphWinter, Local 175 Secretary-Treasurer.These new members join the nearly4,000 other members of the Brewery andSoft Drink Workers Conference who alsowork at Pepsi across the U.S.L O C A L 8 3 8Durham School ServicesSchool bus drivers and monitors withDurham School Services in Grandview,Mo., have voted to join Local 838. Thereare 93 workers in the bargaining unit.“I’m very happy that we are Teamsters!”said Sakethia Humphrey, a monitor. “I’vebeen with the company for more thanfive years and I want us to be protectedon the job. We do important work transportingchildren.”The drivers and monitors were determinedto form their union in the face ofresistance by the company to their effortsto organize. The company tried to delaythe union election until the fall, but theworkers fought back before the NationalLabor Relations Board (NLRB) and wonthe right to have their election in June.“We welcome these workers to theTeamsters and we look forward to gettingthem on the road to better wages, benefitsand treatment,” said Billy Thompson,President of Local 838 in Kansas City, Mo.The victory is the latest in an effort to organizeprivate school bus and transit workersacross the country. Drive Up Standardsis a national campaign to improve safety,service and work standards in the privateschool bus and transit industry. Since thecampaign began in 2006, more than 34,000drivers, monitors, aides, attendants andmechanics have become TeamstersL O C A L 7 2 7O’Hare Shuttle DriversNine new Teamsters who work as shuttlebus drivers with InterContinental ChicagoO’Hare recently joined the union. Theyvoted overwhelmingly to join Local 727 inPark Ridge, Ill.This new unit of shuttle bus drivers,employed by United Temps, is joiningmany of their counterparts from a widerange of major hotel chains. Local 727represents shuttle bus drivers, valets, doormen,bellmen and housekeepers at hotelsacross the Chicago area.“As our Teamster family—and ourhotel membership—grows, our uniongrows stronger,” said International VicePresident and President of Local 727John Coli. “We are proud to welcome ournewest members and proud to see themstand up for themselves in the workplace.”L O C A L 8 9Atlantic AviationOn April 17, workers at Atlantic Aviationin Louisville, Ky., voted in favor of joiningLocal 89 by a 3-1 margin. The new bargainingunit includes 24 workers whofuel private and commercial aircraft atStandiford Field in Louisville.The workers sought representation bythe Teamsters after Atlantic Aviation tookaway their overtime pay, insurance benefits,seniority rights and job security.“One prime example was when thecompany fired a 23-year worker for economicpurposes,” said Kevin Evans, anorganizer for Local 89, which is based inLouisville. “This worker, who had earneda lot of vacation time and was making$19 per hour, was terminated and replacedwith a worker earning only $10.50.”The Local 89 representatives welcomethe new Teamsters and look forward tonegotiating a decent contract for theseworkers.L O C A L 7 0 3Sun Belle ProduceManufacturing employees with Sun BelleProduce recently voted to join Local 703in Chicago. There are 44 new Teamsters inthe bargaining unit.This new unit of produce employeeswill join four Sun Belle Produce distributiondrivers already under contract withthe Teamsters. For the past decade driversat the company have enjoyed regular wageincreases and strong health and welfarebenefits as Teamster members.Local 703 Business Representative SamScianna explained that the Teamsters wereready to go to bat for the inside workers atSun Belle as soon as they reached out tothe union.“They saw the job security and benefitsavailable to the Sun Belle drivers and knewthey deserved the same chance to improvetheir circumstances at work,” Scianna said.These new employees bring renewedstrength to the bargaining unit in suburbanFranklin Park. This is especially importantas Local 703 prepares to negotiateSun Belle’s new contact in fall 2013.Scianna encouraged Teamsters tolook for the yellow and red Sun Bellelabel on fruits and vegetables at thegrocery store. “When you buy theseproducts, you’re supporting hardworkingTeamsters and growing good-payingTeamster jobs,” he said.www.teamster.org | SUMMER 2012 | TEAMSTER 21

There is------------Study Finds Union Representationin Trucking Linked to HigherSafety Performance------------In case there was any doubt, a recent study by researchers atthe University of Maryland confirmed that unionized motorcarriers are superior to nonunion carriers when it comes tosafety performance on our nation’s roads and highways.“Union membership has a statistically positive impact onboth driver and vehicle safety performance,” the study found.Led by Dr. Thomas M. Corsi and his colleagues at the UMDRobert H. Smith School of Business, the researchers looked at existingsafety performance data for more than 150,000 interstatecarriers to determine if there was any link between unionizationand the safety performance of trucking companies.“After reviewing a substantial amount of crash data andother safety performance indicators that were collected by thefederal government, the researchers concluded that unionizedmotor carriers demonstrate better safety performance thantheir nonunion counterparts,” said LaMont Byrd, Director ofthe Teamsters Safety and Health Department.While it’s not surprising that safety standards tend to behigher among union carriers, Dr. Corsi’s report is the first ofits kind to look directly at the relationship between unionizationand actual performance data.In addition to reviewing records from the U.S. Departmentof Transportation’s SafeStat performance ranking system, thestudy examined health and safety provisions in Teamster masteragreements with carriers like UPS and others covered in theNational Master Freight Agreement.The study has important implications for the trucking industry.Even though fatal motor carrier crashes have decreasedover the last 12 years, accidents continue to have aserious impact on the business. And while the 1980 MotorCarrier Act led to a huge drop in union membership, the bettersafety performance of unionized carriers makes the casefor why it is in the public interest to reverse deregulation.---Night and DayLow rates of safety violations and crashes can be directlylinked to collective bargaining. As the study noted, contractlanguage typically requires compliance with governmentsafety regulations related to equipment standards, driversafety, and hours-of-service regulations. Defining “workday”and “workweek” limitations in a union contract goes a longway in reducing the risks associated with driver fatigue.Dr. Corsi’s research team confirmed what union truckdrivers have known for a long time.“It stands to reason,” said John Hasley, a 33-year veterancarhauler who has seen both sides of the industry. “Highersafety procedures secured and enforced by a contract meansbetter safety performance.”22 TEAMSTER | SUMMER 2012 | www.teamster.org

SAFETY-in aUNION-Hasley, who has since retired, worked as a nonunionowner-operator for several years before becoming a Teamsterin 1978.“The difference between professional and cut-rate carriers isnight and day. With a union, the drivers are protected. Theycan say to the boss, ‘No, this equipment is not safe.’ Without thebacking of a union, you could be fired for doing that.”Of the 157,292 firms whose safety records were reviewedby Dr. Corsi and his colleagues, 78 were union carriers. Theyconsistently had better scores than the nonunion companiesin data measuring unsafe driving, fatigued driving, driverfitness, vehicle maintenance and cargo securement.According to the study, the difference can be attributed toformalized safety procedures written into collective bargainingagreements in the industry. For example, the nationalmaster agreement for UPS Teamsters prevents the companyfrom requiring drivers to operate unsafe equipment, givingworkers the right to refuse to drive a vehicle that is not up togovernment regulatory standards.Workers are required to report all accidents and the employeris responsible for investigating reported accidentswithin a 20-day period.“Drivers are on their own without a contract,” Hasleypointed out. “At union firms, you have more supervision andother folks checking equipment and making sure loads aresecured properly.”Better overall working conditions secured in a contract areanother likely factor that raises safety performance amongunion carriers.As Dr. Corsi’s team noted in their report, “Unionizedmotor carrier drivers contribute to, and help ensure, a morestable and structured working environment which, in turn,contributes to increasingly safe operations.”Drivers protected by a union contract tend to enjoy betterpay and benefits in addition to more regular hours. By contrast,nonunion drivers are more likely to experience dissatisfactionwith their compensation and other workplaceconditions, resulting in higher turnover rates for nonuniontruckload carriers. And high turnover, the study observes, significantlyimpacts on-the-road safety as companies need tospend more money on recruitment and training instead of---transportation safety.The Union DifferenceDr. Corsi’s study is an academic validation of the union difference.And longtime drivers like Hasley are personal illustrationsof that difference.After more than three decades in the industry, Hasley sayshe is “living the dream” in retirement, enjoying his golden yearsat his lakeside home and spending afternoons on his boat. Thesafety protections that a union brings on the job contribute inno small way to the benefits of a healthy retirement.“The fact is the companies always want to take shortcutsbecause of economics,” Hasley said. “The union is really abuffer against these companies’ desire to cut corners forprofit. That means the drivers’ desire to ensure the safe deliveryof goods is more of a priority. Workers and the public arebetter off because of that.”www.teamster.org | SUMMER 2012 | TEAMSTER 23

Rail Members Ratify National Contract, Win Wage Increases and Secure BenefitsHigher pay, job stability and strong benefits are the key ingredientsfor a contract and the core of the new freightrail contract ratified this year by members of the TeamstersRail Conference. The nearly 70,000 members of the RailConference (about 35,000 in the Brotherhood of LocomotiveEngineers and Trainmen, or BLET, and 34,000 members ofthe Brotherhood of Maintenance of Way Employes, orBMWED) have a personal commitment to the industrywhich is mirrored by the new freight rail agreement.Freight rail traffic in the U.S. has been growing in recentyears as industries such as coal and gas have needed to movelarge amounts of product across country on a reliable transportationnetwork. Yet, negotiations for a national freight railcontract this past year, which was ratified in 2012, was rifewith claims by the rail corporations that they couldn’t possiblyafford wage increases for unionized workers.Members of the Teamsters Rail Conference persevered andwon wage increases for the entire term of the six-year contract,along with maintaining a strong health care plan. Boththe BLET and the BMWED participated in the Rail LaborBargaining Coalition, along with five other rail unions. Thiscombined strength allowed the coalition to reach a goodagreement with the railroads, who, by the way, have beenmaking record profits now for several years.The wage portion of the contract provides for an average3.2 percent annual wage increase for each of the six yearsalong with a significant lump sum payment during the firstyear. Health care benefits are maintained at the same level asbefore, but with some cost adjustment for particular expenses.This benefit plan remains one of the best in the Americanlabor movement.Belonging Allows AccessCraig Thurow, a BLET engineer from North Dakota, believesthat one of the best reasons to be a rail union member is tonever have a concern about losing your health insurance. “Weare secured by a collective agreement. I am thankful for it. I’vebeen working on Canadian Pacific (CP) for the past 34 years24 TEAMSTER | SUMMER 2012 | www. teamster.org

and our benefits have always been there.”A BMWED member, Terry Barrette values the additionaltraining he has taken as a result of his union membership.Barrette is confident that it’s only due to his membership inthe union that he and his family have been provided for overthe years.“There are people who have been working and strugglingfor years, but being a union member, I’ve been able to providefor me and my family,” Barrette said. “In our lodge weeven have younger people who are able to buy a condo, allbecause they have the promise of a stable job. I’m going tobe able to retire at age 60 with a full pension and good insurance.”Barrette has been able to get extra training on a variety oftopics: hazardous materials handling, first observer, localchairmen seminars, etc. “Part of the benefit of being affiliatedwith the Teamsters Union is our access to training courses,and certainly having the political clout of the Teamsters behindus has brought our concerns for workplace safety andthe need to rebuild the rail infrastructure to the forefront,”Barrette said.Union Tradition“For me, union membership has been a tradition in my family.I know the importance of working under a collective bargainingagreement,” said Gene Thompson, a nine-yearBMWED member based in Alliance, Neb. “I work at the yardin Alliance on switch renewals and day-to-day maintenance.”Thompson, whose father-in-law and sister worked forBurlington Northern Santa Fe, said that being part of a unionwas something he learned years ago. The pay and the benefits,such as weekends off, were parts of having a union contractthat appealed to him.“With the new national freight contract we are getting a19-percent wage increase over the course of the six-yearagreement,” Thompson said. “And for the first time we willhave single-occupancy rooms when we are on long-term,away-from-home jobs. It’s been the single biggest complaintabout the job since I started nine years ago.”Retaining a strong health care plan was a concern forThompson whose family has two small children, ages 5 and 2.“Our health care plan is one of the best around,” Thompsonsaid. “We go to Denver to the doctor and I am glad we can.Everyone struggles with health care.”For Thompson and his family, having a union contract hecan depend on is far superior to other employment opportunitieswhere he lives. Largely an agricultural region, manypeople put in long hours and are not well compensated.“Being part of the union is absolutely better,” Thompson said.“I’m involved in my local lodge, too. I just got elected as anofficer in January and have since taken some training forlodge officers.”Although having a full-time job is a juggling act forThompson, his commitment to the union and his family isstrong. “I am thankful that I have a good-paying job,”Thompson said. “It allows my family and me to enjoy life.”For more than two years, Tim Smith, a BLET memberand chairman of the BLET’s California legislativeboard, has been working to educate legislatorson the crucial need to fund high-speed rail.“We were anticipating the vote this summer and arevery happy that both houses of the California legislaturegave the green light in July to high-speed rail funding,”Smith said.The new rail system would be the largest publicworks project in the state and could potentially employhundreds of unionized locomotive engineers, trainmenand maintenance of way workers. California’s systemwould be built around the Los Angeles basin from Anaheimto Merced. The next phase would be from the SanFrancisco peninsula to Merced. Although there is aheavy reliance now on cars and planes for transportation,studies show that ridership will be there as an alternativeto flying and driving.“With the passage of this legislation, we have an opportunityto show Californians the skills and hard workour members bring to the rail profession,” said FreddieN. Simpson, President of the BMWED and InternationalVice President of the Teamsters Union.Dennis Pierce, Rail Conference President and NationalPresident of the BLET, said the direction that Californiais going now will serve as a model for otherareas. “The California high-speed rail line will be a beaconof performance on the West Coast and our memberslook forward to operating equipment on thisstate-of-the-art rail line,” Pierce said.Cities from Los Angeles to San Francisco are makingpreparations for the arrival of high-speed rail. Evensmaller cities, such as Modesto, population 201,000, areholding town hall meetings to gather citizen inputabout where to locate stations. At a recent public meetingin Modesto, members of the Teamsters and Laborersunions joined other residents to look over plans onwhere to locate the city’s new rail. Even though therewere disagreements about which streets could be closedand how large the station should be, the desire for andanticipation of having high-speed rail access was palatablein the meeting room.www.teamster.org | SUMMER 2012 | TEAMSTER 25

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C O R R E C T I O N A L O F F I C E R S A N D S E C U R I T Y S P E C I A L I S T SO V E R W H E L M I N G L Y R A T I F Y F I R S T T E A M S T E R C O N T R A C TOfficers with the Florida Department of Corrections (FDOC),as well as security specialists with the Department for Childrenand Families and the Agency for Persons with Disabilities, haveratified their first Teamster contract with 84 percent of the vote.The contract victory capped a busy year for the 20,000 correctional,probation and parole officers, and security specialists.protect and maintain the rights and benefits of its union membersand to forge the best possible contract.”“The contract negotiations for this year were very contentiousand much of what the state proposed would have been devastatingto us,” said Brett Pruett, a correctional officer at Santa Rosa CorrectionalInstitution. “We fought hard to improve the contractA STRONG STARTOfficers voted to join Teamsters Local 2011 in November 2011ina decisive win over the officers’ previous association.Soon after, they made history by helping defeat a privatizationbill in the Florida Legislature that would have closed 27 facilitiesand cost about 5,000 officer jobs.The officers’ first contract will be in effect through June 30, 2013.“This contract provides notable improvements for membersand will strengthen the union’s ability to effectively representthem,” said Ken Wood, Acting President of Local 2011. “This isan important starting point that we will build on in future years.”Officers’ SupportOfficers who served on the Local 2011 Bargaining Committeepraised the one-year agreement as a solid first contract that can beimproved upon in coming years during negotiations with the state.“A number of changes for the good were made, and with membersupport we can continue to bargain for a stronger contract,”said Bill Bishop, a correctional officer at the Walton CorrectionalInstitution. “Local 2011 can prevail when we work together.”“This is a contract employees can truly call their own since forthe first time our voices were heard,” said Kimberly Schultz, a probationand parole officer. “We sat down face-to-face with the stateand negotiated for a better contract. Local 2011 fought hard tolanguage and we were successful stopping the state in the wholesaletheft of our special comp as well as protecting our rightsagainst unfair and unlawful discipline.”“By ratifying this contract we have secured the progress thathas been made and gain the opportunity to negotiate a new agreementnext year,” said Penny Reeder, a correctional officer whoworks at the Florida State Prison.“We really made great strides that can be built on in years tocome,” said Lloyd Lykins, a community corrections officer.Keeping Florida SafeThe officers and institutional security specialists work hard tokeep Floridians safe. The FDOC is the third largest state prisonsystem in the nation, with more than 100,000 inmates behindbars and another 115,000 offenders on active supervision.Teamster members work at 146 facilities statewide. This includes68 prisons, 40 work/forestry camps, one treatment center,33 work-release centers, five road prisons and one boot camp.“Many eyes are on the Teamsters in the Sunshine State,” saidMichael Filler, Director of the Teamsters Public Services Division.“The power of Local 2011 has become significant as we increaseour membership base, mobilize more members, and expand ourarmy of stewards from coast to coast.”www.teamster.org | SUMMER 2012 | TEAMSTER 27

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011Union onStrong FinancialGroundSince taking office as the GeneralSecretary-Treasurer of this greatunion, I have witnessed firsthand thecontrols put in place to ensure that yourmembership dues are used to advance thecollective bargaining process and to growour membership base. It is the representationalstrength and organizing power andsuccess that truly makes the Teamstersunique among labor organizations.It’s an honor to follow the path set byC. Thomas Keegel, whose goal was to leavethe Teamsters Union in better shape thanwhen he took office—his goal was met.And make no mistake, it will be my goal tocontinue to grow the financial strength ofthis great union to ensure that we continueto properly represent the memberswe have and organize those who don’t currentlyenjoy the benefits and protectionsof being a Teamster.At the 2011 International Convention,the delegates, alternates and guests werereminded of the dire financial straits theunion was in when the Hoffa administrationtook office in 1999. However, since1999, actions were taken to implementreal financial controls; build a networkof Benefit Fund Trustees; and strengthenand grow the Strike and Defense fund.All of this was accomplished while designatingthe necessary funds to organizethe unorganized.In 1999, the union had net assets ofonly $8.6 million and a Strike and DefenseFund that was in the red. But thanks tosmart financial planning and strong internalaccounting controls, the International’saudited 2011 financial statements reportnet assets of more than $153.5 million.Our Strike and Defense Fund continuesto grow, which has shown manyTeamster employers that our collectivebargaining strength is formidable. Thefund’s balance stood at $91.2 million atMembers of the General Executive BoardInternational Brotherhood of Teamstersthe end of 2011. A strong Strike andDefense Fund benefits everyone in theunion, whether they use it or not.Organizing and bargaining good contractscontinue to be top priorities of theTeamsters Union. All this has been madepossible by building on our union’s financialstrength.Thanks to the diversity of our membership,the current economic crisis has hadless of an impact on the InternationalBrotherhood of Teamsters than otherunions. There are signs the economy isrecovering, but it won’t happen overnight.INDEPENDENT AUDITORS REPORTWe have audited the accompanying consolidated statement of financial position of theInternational Brotherhood of Teamsters (the International Union) as of December 31, 2011, andthe related consolidated statements of activities and cash flows for the year then ended. TheseOur responsibility is to express an opinion on these consolidated financial statements based onour audit.We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the consolidated financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the consolidated financial statements. An audit also includes assessing themanagement, as well as evaluating the overall consolidated financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.In our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the financial position of the International Union as of December 31, 2011and the changes in its net assets and its cash flows for the year then ended, in conformity withaccounting principles generally accepted in the United States of America.May 31, 2012In the meantime, our members should besecure in knowing that I, along with theentire General Executive Board, recognizethat it is our fiduciary responsibility toensure that your membership dues areused to strengthen and grow the financialpower of this great union.Ken HallGeneral Secretary-Treasurer28 TEAMSTER | SUMMER 2012 | www.teamster.org

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters CONSOLIDATED STATEMENT OF FINANCIAL POSITIONDECEMBER 31, 2011ASSETSTeamsterStrike and Hoffa Disaster SupplementalGeneral Defense Scholarship Relief BenefitsFund Fund Fund Fund Trust TotalCash and cash equivalents $ 25,914,102 $ 1,187,066 $ 113,652 $ 354,605 $ 587,607 $ 28,157,032Receivables, netTrade 21,848,995 – – – 264,384 22,113,379Grants and contributions 767,446 – 31,393 – – 798,839Accrued investment income 22,417 – 60 – 19 22,496Due from/(to) related entities 827,551 (101,650) 3,905 – (319,000) 410,806Other 380,547 – – – – 380,547Inventories 542,738 – 14,161 – – 556,899Prepaid expenses 1,033,726 – 10,000 – – 1,043,726InvestmentsFirst trust notes - affiliates 1,023,521 – – – – 1,023,521Other 24,542,392 90,290,740 10,186,298 – 5,338,198 130,357,628Security deposits and other 769,665 – 27,084 – 27,500 824,249Property and equipment, net 42,842,996 – – – – 42,842,996Total assets $ 120,516,096 $ 91,376,156 $ 10,386,553 $ 354,605 $ 5,898,708 $228,532,118LIABILITIES AND NET ASSETSLiabilitiesAccounts payable and accrued expensesTrade $ 15,283,207 $ 97,549 $ 290,004 $ – $ 10,990 $ 15,681,750Loans payable 17,478,714 –- – – – 17,478,714Unexpended scholarship awards – – 235,000 – – 235,000Accrued pension cost 40,945,684 – – – – 40,945,684Accrued postretirement benefits cost 673,229 –- – – – 673,229Total liabilities 74,380,834 97,549 525,004 – 10,990 75,014,377Net assetsUnrestricted 45,465,090 91,278,607 9,861,549 354,605 5,887,718 152,847,569Temporarily restricted 670,172 – – – – 670,172Total net assets 46,135,262 91,278,607 9,861,549 354,605 5,887,718 153,517,741Total liabilities and net assets $ 120,516,096 $91,376,156 $10,386,553 $ 354,605 $ 5,898,708 $ 228,532,118See accompanying notes to consolidated financial statements.WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 29

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters CONSOLIDATED STATEMENT OF ACTIVITIESYEAR ENDED DECEMBER 31, 2011Strike and Hoffa SupplementalDefense Scholarship Disaster Relief BenefitsGeneral Fund Fund Fund Fund TrustTemporarilyUnrestricted Restricted Unrestricted Unrestricted Unrestricted Unrestricted TotalREVENUE AND OTHER SUPPORTPer capita and initiation fees $147,604,643 $ – $14,543,328 $ – $ – $ – $162,147,971Grants and contributions 4,087,993 – – 963,077 38,150 – 5,089,220Special fundraising events – – – 883,672 – – 883,672Affinity program 59,700 – – – – 2,732,335 2,792,035Investment income, net 1,600,882 – 5,647,996 598,078 – 178,602 8,025,558Sales of supplies, net 71,811 – – – – – 71,811Gain on disposal of property and equipment 2,968 – – – – – 2,968Other 8,572 – – 34,850 – – 43,422Net assets released from restrictions – – – – – – –Total revenue 153,436,569 – 20,191,324 2,479,677 38,150 2,910,937 179,056,657EXPENSESProgram servicesMember servicesCommunications, magazineand public relations 9,818,287 – – – – 125,000 9,943,287Financial assistance to affiliates 25,195 – – – – – 25,195Industry trade divisions and relations 31,561,618 – – – – – 31,561,618Out-of-work benefits 3,395,734 – 16,500,066 – – 146,303 20,042,103Research, education and training 14,440,231 – – – – – 14,440,231Retiree relations, scholarships and other 207,754 – – 426,222 – – 633,976Organizing 20,534,740 – – – – – 20,534,740Other 8,627,031 – – – 49,750 627,571 9,304,352Affiliation fees 11,764,413 – – – – – 11,764,413Government affairs 7,418,584 – – – – – 7,418,584Legal and litigation 4,144,592 – – – – – 4,144,592Civil RICO 6,590,869 – – – – – 6,590,869Teamster Affiliates Pension Fund 5,000,000 – – – – – 5,000,000Convention (5,785,157) – – – – 5,000,000 (785,157)Total program services expenses 117,743,891 – 16,500,066 426,222 49,750 5,898,874 140,618,803Supporting servicesAdministration and governance 7,355,145 – – 70,486 1,322 459,580 7,886,533Fundraising – – – 232,285 – – 232,285Total expenses 125,099,036 – 16,500,066 728,993 51,072 6,358,454 148,737,621CHANGE IN NET ASSETS 28,337,533 – 3,691,258 1,750,684 (12,922) (3,447,517) 30,319,036NET ASSETSBeginning of year 19,982,066 670,172 87,587,349 8,110,865 367,527 9,335,235 126,053,214Accrued pension liability adjustment (2,854,509) – – – – – (2,854,509)End of year $45,465,090 $670,172 $91,278,607 $9,861,549 $354,605 $5,887,718 $153,517,741See accompanying notes to consolidated financial statements.30 TEAMSTER | SUMMER 2012 | www.teamster.org

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters CONSOLIDATED STATEMENT OF CASH FLOWSYEAR ENDED DECEMBER 31, 2011TeamsterStrike and Hoffa Disaster SupplementalGeneral Defense Scholarship Relief BenefitsFund Fund Fund Fund Trust TotalCASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIESCash received fromAffiliated conferences, joint councils and local unions $ 144,344,371 $ 14,617,933 $ – $ – $ – $158,962,304Investment income 1,125,128 3,533,353 333,043 – 132,662 5,124,186Other revenue and reimbursements 3,608,621 – 1,851,749 38,150 2,734,455 8,232,975Net cash received 149,078,120 18,151,286 2,184,792 38,150 2,867,117 172,319,465Cash disbursed toService providers, suppliers, vendors and others (126,790,015) (14,249,968) (750,893) (51,072) (6,447,366) (148,289,314)Other labor organizations (2,999,563) – – – – (2,999,563)Affiliated conferences, joint councils and local unions (9,694,041) – – – – (9,694,041)Members for benefits under Strike BenefitAssistance Program – (2,302,260) – – – (2,302,260)Net cash disbursed (139,483,619) (16,552,228) (750,893) (51,072) (6,447,366) (163,285,178)Net cash provided by (used for) operating activities 9,594,501 1,599,058 1,433,899 (12,922) (3,580,249) 9,034,287CASH FLOWS PROVIDED BY (USED FOR) INVESTING ACTIVITIESProceeds from sale or redemption of investments 9,027,735 12,102,403 102,179 – 3,460,946 24,693,263Purchase of investments (2,129,188) (14,035,300) (1,557,001) – (1,177,909) (18,899,398)Purchase of fixed assets (395,982) – – – – (395,982)Payment of loans by affiliates 141,219 – – – – 141,219Net cash used for investing activities 6,643,784 (1,932,897) (1,454,822) – 2,283,037 5,539,102CASH FLOWS USED FOR FINANCING ACTIVITIESLoan repayments (600,000) – – – – (600,000)Net cash used for financing activities (600,000) – – – – (600,000)Net increase (decrease) in cash 15,638,285 (333,839) (20,923) (12,922) (1,297,212) 13,973,389CASH AND CASH EQUIVALENTSBeginning of year 10,275,817 1,520,905 134,575 367,527 1,884,819 14,183,643End of year $ 25,914,102 $ 1,187,066 $113,652 $354,605 $587,607 $ 28,157,032RECONCILIATION OF CHANGE IN NET ASSETS TONET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIESChange in net assets $ 25,483,024 $ 3,691,258 $ 1,750,684 $(12,922) $(3,447,517) $ 27,464,527Net depreciation (appreciation) of investments (528,194) (2,172,624) (285,090) – (64,792) (3,050,700)Loss (gain) on disposal of fixed assets (2,968) – – – – (2,968)Depreciation expense 2,470,576 – – – – 2,470,576(Increase) decrease in assetsReceivables (3,512,169) – (28,499) – 2,121 (3,538,547)Inventories (1,851) – 394 – – (1,457)Prepaid expenses (496,591) – (9,500) – – (506,091)Security deposits and other (376,343) – – – (20,000) (396,343)Due to/from related entities (120,866) 74,605 9,788 – (24,000) (60,473)Increase (decrease) in liabilitiesAccounts payable and accrued expenses (13,418,252) 5,819 2,622 – (26,061) (13,435,872)Unexpended scholarship awards – – (6,500) – – (6,500)Accrued pension cost (28,864) – – – – (28,864)Accrued postretirement benefits cost 126,999 – – – – 126,999NET CASH PROVIDED BY (USED FOR)OPERATING ACTIVITIES $ 9,594,501 $ 1,599,058 $ 1,433,899 $(12,922) $(3,580,249) $ 9,034,287See accompanying notes to consolidated financial statements.WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 31

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011NOTE 1. NATURE OF OPERATIONSThe International Brotherhood of Teamsters (the International Union) is one ofthe largest labor unions in North America with a membership representing a varietyof industries and trades. The primary source of revenue is per capita taxespaid by local unions.NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESMethod of Accounting - The consolidated financial statements have beenprepared using the accrual basis of accounting in accordance with accountingprinciples generally accepted in the United States of America.Consolidation and Fund Accounting - The consolidated financial statementsinclude the accounts and activities of the International Union and related entitiesunder the International Union’s control. For purposes of presentation in theconsolidated financial statements and in accordance with requirements set forthin its Constitution, the International Union reports its accounts and activities inthe following funds:General Fund - Provides for the ongoing activities of the InternationalUnion not specifically carried out by any other fund. The General Fund alsoincludes the consolidated accounts of the Teamsters National HeadquartersBuilding Corporation, a for-profit corporation formed to be a title holdingcorporation for the International Union’s headquarters building. Allsignificant intercompany account balances have been eliminated inconsolidation. Included in the General Fund is the Public Services AssistanceFund. This fund provides assistance to public employees whose contractsdo not entitle them to strike benefits. Also included in the General Fund arefunds designated for organizing activities. Ten percent of per capita taxreceived by the International Union, excluding the amount received formembers in Teamsters Canada, is designated for organizing activities.Funds designated for organizing activities for the Brotherhood of LocomotiveEngineers and Trainmen, Brotherhood of Maintenance of Way EmployesDivision and the Graphic Communications/IBT Conference are governed bythe applicable merger agreements.Strike and Defense Fund - The Strike and Defense Fund was created in2002 to support members engaged in collective action to obtain recognition,obtain and/or protect wages and benefits through the negotiation of collectivebargaining agreements, enforce collective bargaining agreements,and/or members who have been locked out by their employers.Fifteen percent of per capita tax received by the International Union, excludingthe amounts received for members in Teamsters Canada and membersemployed in the public sector who do not have the legal right to strike, aretransferred to the Strike and Defense Fund. Participation in the Strike andDefense Fund for the Brotherhood of Locomotive Engineers and TrainmenDivision, Brotherhood of Maintenance of Way Employees Division and theGraphic Communications Conference are governed by the applicable mergeragreements.Hoffa Scholarship Fund - The Hoffa Scholarship Fund represents theaccounts and activities of the James R. Hoffa Memorial Scholarship Fund,Inc., a related organization under the International Union’s control. The Fundwas incorporated in November 1999 and began operations in January 2000for the purpose of awarding scholarships to dependents of union membersin order to enable the recipients to attend accredited post-secondary educationalinstitutions. The funding for scholarships is provided by voluntarycontributions to the Fund, the net proceeds of annual fund raising events,and the sale of promotional materials. As a form of financial assistance tothe Hoffa Scholarship Fund, the International Union provides facilities, management,administrative, accounting and clerical assistance.Teamster Disaster Relief Fund - The Teamster Disaster Relief Fundrepresents the accounts and activities of the Teamster Disaster Relief Fund,a related organization under the International Union’s control. The Fund wasincorporated in September 1992 and began operations in 1992 for the purposeof providing monetary and non-monetary relief directly or indirectly toindividuals who are victims of hurricane, flood, earthquake, fire, accident orother disaster. Funding is provided by monetary and non-monetary contributionsfrom individuals or organizations affiliated with the International Unionand the general public. As a form of financial assistance to the DisasterRelief Fund, the International Union provides facilities, management, administrative,accounting and clerical assistance.Supplemental Benefits Trust - The Supplemental Benefits Trust representsthe accounts and activities of the International Brotherhood of TeamstersSupplemental Benefits Trust, a financially inter-related organizationunder the International Union’s control. The Trust was established onJanuary 1, 2003 to serve as a vehicle for the coordination of several creditcard, insurance and other programs offered to members of the InternationalUnion and their families by third party vendors. The Trust is funded primarilythrough royalty payments payable in accordance with the provisions ofvarious agreements between the International Union and third party vendorswhich have been assigned by the International Union to the Trust.Cash and Cash Equivalents - Cash and cash equivalents consist of amountsheld in demand deposit accounts, money market accounts and funds.Inventory - The International Union maintains an inventory of supplies forresale to local unions and individual members. Inventory is stated at costwhich approximates the selling price of items held.Investments - Investments in the limited partnerships (See Notes 7 and 9) arecarried at estimated fair value. All other investments are reported at their aggregatefair value. The fair value of investments in common and capital stocks, corporatebonds, mutual funds and U.S. Treasury and Government Agency securitiesare determined by quoted market prices as reported by the investment custodian.Property and Equipment - Property and equipment are carried at cost. Majoradditions are capitalized while replacements and repairs that do not improveor extend the lives of the respective assets are expensed. Depreciation andamortization expense is computed using the straight line method over thefollowing estimated useful lives of the assets:Building and improvementsData processing equipmentOffice equipment and capitalized softwareFurniture and fixturesAutomobiles39 years5 years3-10 years10 years5 years32 TEAMSTER | SUMMER 2012 | www.teamster.org

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011Canadian Currency - The International Union maintains checking and savingsaccounts in Canada as well as the United States. For financial statement purposes,all assets are expressed in U.S. dollar equivalents.Canadian currencies included in the consolidated statement of financial positionare translated at the exchange rates in effect on the last day of the year. Unrealizedincreases and decreases due to fluctuations in exchange rates are includedin the consolidated statement of activities.Funds received and disbursed in Canada are stated in U.S. dollars based on theaverage exchange rates in effect during the year when reported in the revenueand expenses included in the consolidated statement of activities.Use of Estimates in the Preparation of Financial Statements - The preparationof financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilitiesand disclosure of contingent assets and liabilities at the date of thefinancial statements and reported amounts of revenues and expenses during thereporting period. Actual results could differ from those estimates.Financial Presentation - The International Union’s consolidated financialstatements present its net assets, revenues, expenses, gains and losses, classifiedbetween unrestricted, temporarily restricted, and permanently restrictedbased on the existence or absence of donor-imposed restrictions.NOTE 3. TAX STATUSThe International Union is exempt from Federal income taxes under Section501(c)(5) of the Internal Revenue Code, except on any income derived fromactivities unrelated to its exempt purpose.Income taxes on net earnings are payable by the Teamsters National HeadquartersBuilding Corporation pursuant to the Internal Revenue Code. All operatingcosts of the Corporation are fully reimbursed by the International Union resultingin no net income or loss. Accordingly, no provision has been made for Federalincome taxes.The Hoffa Scholarship Fund and Teamster Disaster Relief Fund are exempt fromFederal income taxes under Section 501(c)(3) of the Internal Revenue Code and arereasonably expected to be publicly supported organizations and not private foundations.The Funds are subject to tax derived from unrelated business activities.The Supplemental Benefits Trust is exempt from Federal income taxes underSection 501(c)(5) of the Internal Revenue Code and is, therefore, not subject totax under present income tax laws.Management has evaluated the International Union’s tax position and concludedthat it had maintained its tax exempt status and had taken no uncertain tax positionsthat require adjustment to the financial statements. Therefore, no provisionor liability for income taxes has been included in the financial statements. At thepresent time, the International Union is no longer subject to income tax examinationsby the U.S. federal, state, or local tax authorities for years before 2009.NOTE 4. TRADE RECEIVABLESTrade receivables consist of the following at December 31, 2011:Per capita and initiation fees $ 20,390,492Unsecured notes receivable 765,361Affinity program 264,384Other 715,34422,135,581Less allowance for doubtful accounts ( 22,202)$ 22,113,379NOTE 5. UNINSURED CASH BALANCES ANDINVESTMENT CONCENTRATIONSThe International Union maintains cash equivalents with various financial institutionsas of December 31, 2011 totaling approximately $25,900,000 whichwere not insured by the Federal Deposit Insurance Corporation.The International Union also maintains cash at a Canadian financial institution,which is insured up to $100,000. As of December 31, 2011, the InternationalUnion’s cash in the Canadian financial institution in excess of insurance coveragetotaled approximately $1,830,000 in Canadian dollars (approximately$1,870,000 U.S. Dollars).The Supplemental Benefits Trust maintains its cash at two financial institutions.As of December 31, 2011 the Supplemental Benefits Trust’s cash in excess ofFDIC insurance coverage totaled approximately $320,000.The Teamster Disaster Relief Fund maintains cash primarily with the same financialinstitution. As of December 31, 2011 the Teamsters Disaster Relief Fund’scash in excess of FDIC insurance coverage totaled approximately $104,000.NOTE 6. GRANTS RECEIVABLEAmounts due under grant agreements with the U.S. Government totaled$767,446 and are due to be received within one year.NOTE 7. INVESTMENTSThe fair value and cost of investments held by the International Union atDecember 31, 2011 is summarized below:CostFair ValueCommon stock $ 415,872 $ 721,370Corporate bonds 62,852 15,060Mutual funds - equity 833,015 943,585Mutual fund - fixed income 126,404,602 128,677,613$127,716,341 $130,357,628WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 33

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011Investment income for the year ended December 31, 2011 consisted of the following:HoffaSupplementalGeneral Scholarship BenefitsFund Strike Fund Fund Trust TotalInterest and dividends $ 1,133,913 $ 3,533,353 $ 332,988 $ 132,661 $ 5,132,915Net realized and unrealizedgain (loss) on investments 528,194 2,172,624 285,090 64,792 3,050,700Investment expenses ( 61,225) ( 57,981) ( 20,000) ( 18,851) ( 158,057)$ 1,600,882 $ 5,647,996 $ 598,078 $ 178,602 $ 8,025,558NOTE 8. FAIR VALUE MEASUREMENTSFair Value Measurements and Disclosures establishes a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levelsof the fair value hierarchy are described below:Basis of Fair Value MeasurementLevel 1 - Unadjusted quoted prices in active markets for identical assets that are accessible at the measurement date.Level 2 - Quoted prices in markets that are not considered active or investments for which all significant inputs are observable.Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.Fair Value Measurements at December 31, 2011Total Level 1 Level 2 Level 3Common stock - all cap value $ 721,370 $ 721,370 $ – $ –Corporate obligations 15,060 – 15,060 –Mutual funds - equity 943,585 943,585 – –Mutual funds - fixed income 128,677,613 128,677,613 – –$ 130,357,628 $130,342,568 $ 15,060 $ –Level 3 Fair Value MeasurementsGov’t Agency Corporate LimitedTotal securities obligation partnershipBeginning balance $ 6,163 $ – $ 6,163 $ –Realized gains (losses) – – – –Unrealized gains (losses) – – – –Purchases – – – –Sales – – – –Transfers to Level 2 ( 6,163) – ( 6,163) –Ending balance $ – $ – $ – $ –NOTE 9. INVESTMENTS IN FIRST TRUST NOTESThe International Union provided loans to affiliates for financial assistance. These loans are secured by real estate and are carried at their unpaid principal balanceof $1,023,521. No allowance for uncollectible accounts was deemed necessary as of December 31, 2011.34 TEAMSTER | SUMMER 2012 | www.teamster.org

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011NOTE 10. PROPERTY AND EQUIPMENTProperty and equipment held by the International Union consists of the followingas of December 31, 2011:Land - headquarters $ 794,117Headquarters building 51,339,942Leasehold improvements 26,000Furniture and fixtures 5,589,506Equipment 3,933,382Data processing equipment 2,324,331Computer software 4,127,660Automobiles 174,482Working in process 181,67568,491,095Less accumulated depreciation (25,648,099)Net property and equipment $ 42,842,996Depreciation expense for the year ended December 31, 2011 was $2,470,576.NOTE 11. THE TEAMSTER AFFILIATES PENSION PLANThe Teamster Affiliates Pension Plan (the “Plan”) provides defined benefits toeligible officers and employees of the International Union’s affiliates.The General Executive Board elected to curtail the Plan effective December 31,1994, thus freezing benefits for most participants at the then accumulated level.Effective January 1, 1995, the Plan was amended to allow the affiliates tocontribute on behalf of their employees. For those participants whose employercontinued to contribute, benefits were not frozen until December 31, 2001.Effective as of January 1, 2002, no additional retirement or other benefit willbe accrued under this Plan by any participant of the Plan. Any participationagreement which may have been submitted by an affiliate to, and accepted by,the Trustees of this Plan at any time on or after January 1, 1995 shall be terminatedeffective as of January 1, 2002 and no contribution shall be accepted bythe Trustees from an affiliate on behalf of a participant employed by that affiliatewith respect to any period of time beginning on or after January 1, 2002.Prior to January 1, 2008, the International Union accounted for the TeamsterAffiliates Pension Plan in accordance with “Compensation-Defined BenefitPlans”. Under the provisions of the Pension Protection Act of 2006, the InternationalUnion was able to convert the Plan from a multiple - employer plan toa multiemployer plan. As a result of this conversion, the International Unionaccounts for the Plan in accordance with “Compensation - MultiemployerPlans”.The Plan’s consulting actuary will determine the Plan’s funding requirement onan annual basis. The funding requirement has been zero since at least 1994.If the consulting actuary determines that a contribution must be made to thePlan, the International Union will determine the method for funding the Plan.No individual who was initially employed by an affiliate on or after January 1,2002 was eligible to become a participant of the Plan. No compensation thatwas received by a participant of the Plan with respect to any period of timebeginning on or after January 1, 2002 was considered to be the earnings of thatparticipant for purposes of the Plan. Any periods of credited service and/orvesting service earned by a participant on or after January 1, 2002 shall continueto be used to determine the eligibility of that participant to receive a retirementor other benefit under this Plan but shall not be used to determine theamount of any retirement or other benefit which that participant may otherwisebe entitled to receive under this Plan.The information on benefit costs for the year ended December 31, 2011, as determinedby the consulting actuary, is as follows:Employer contributions $ 5,000,000Plan participants’ contributions –Benefits paid 44,032,464In computing the funded status of the Plan as of December 31, 2011, the consultingactuary used the following assumptions:Discount rate 4.50%Average rate on compensation increasesN/AThe funded status of the Plan as of December 31, 2011, as determined by theactuary, is as follows:Projected benefit obligation $(496,546,033)Fair value of Plan assets 294,016,904Funded status $(202,529,129)Accumulated benefit obligation $(496,546,033)The Plan’s expected long-term rate of return on assets assumption is 8.00%.As defined in “Compensation-Multiemployer Plan”, this assumption representsthe rate of return on Plan assets reflecting the average rate of earnings expectedon the funds invested or to be invested to provide for the benefits includedinthe benefit obligation. The assumption has been determined by reflectingexpectations regarding future rates of return for the investment portfolio, withconsideration given to the distribution of investments by asset class andhistorical rates of return for each individual asset class.The Plan’s overall investment strategy is to invest in securities that will meet orexceed an absolute return of 8%. In order to meet its needs, the Plan’s investmentstrategy is to emphasize total return primarily by emphasizing long-termgrowth of principal while avoiding excessive risk and secondly by achievingreturns in excess of the rate of inflation over the investment horizon in orderto preserve purchasing power of Plan assets. In general, the Plan’s goal is tomaintain the following allocation ranges for investments:Equity securities 55% –70%Debt securities 30% –45%Cash and equivalents 0% – 7%The major classes of plan investments at December 31, 2011 are:Fair ValueCollective trust fund-equity $139,309,270Common stock 60,778,149103-12 investment entity-fixed income 63,904,855Corporate obligations 18,693,217Mutual fund - fixed income 7,361,954Money market mutual funds 2,810,076$292,857,521WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 35

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011Fair Value Measurements and Disclosures establishes a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value.The three levels of the fair value hierarchy are described below:Basis of Fair Value MeasurementLevel 1 - Unadjusted quoted prices in active markets for identical assets that are accessible at the measurement date.Level 2 - Quoted prices in markets that are not considered active or investments for which all significant inputs are observable.Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.Fair Value Measurements at December 31, 2011Total Level 1 Level 2 Level 3Collective trust funds:Equity index fund - all cap $ 28,345,447 $ – $ 28,345,447 $ –Equity index fund - large cap 110,963,823 – 110,963,823 –Common stock:Small cap growth 29,654,723 29,654,723 – –Small cap value 27,826,177 27,826,177 – –Large cap value 3,297,249 3,297,249 – –103-12 investment entity - fixed income 63,904,855 – – 63,904,855Corporate obligations:Corporate bonds 18,109,980 – 18,109,980 –Collateralized mortgage back obligation 250,000 – 250,000 –Corporate variable rate obligation 333,237 – 333,237 –Mutual fund - fixed income 7,361,954 7,361,954 – –Money market mutual funds 2,810,076 2,810,076 – –$ 292,857,521 $ 70,950,179 $158,002,487 $ 63,904,855The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy.Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level toanother. In such instances, the transfer is reported at the beginning of the period.We evaluated the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total netassets available for benefits.During 2011, significant transfers from Level 1 to Level 2 were as follows:Level 1 Level 2Corporate obligationsFrom Level 1 to Level 2 $(17,509,906) $17,509,906Transfers to Level 2 from Level 1 were made at the beginning of the year January 1, 2011 because of the absence of quoted prices in active markets forthe securities. The Plan’s policy is to recognize transfers between levels as of the actual date of the event or change in circumstances valuation by theinvestment manager.Level 3 Fair Value Measurements103-12investmententityBeginning balance $ 67,675,653Realized gains 440,686Unrealized gains 391,751Purchases 3,837,451Sales ( 8,440,686)Ending balance $ 63,904,855The International Union has committed to contribute $24,000,000 to the Plan. The amount is payable as $5,000,000 per year in 2010, 2011 and 2012and $9,000,000 in 2013. The International Union made the first and second $5,000,000 payment in December 2010 and 2011. At December 31, 2011,the International Union’s remaining commitment is $14,000,000.36 TEAMSTER | SUMMER 2012 | www.teamster.org

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011Benefits expected to be paid by the Plan during the ensuing five years andthereafter are approximately as follows:2012 $ 45,162,4922013 44,160,9812014 43,046,7932015 41,847,2492016 40,309,631Aggregate for fiveyears beginning 2017 180,237,705NOTE 12. RETIREMENT AND FAMILY PROTECTION PLANThe International Union is the sponsor of the Retirement and Family ProtectionPlan (the “Plan”), a defined benefit plan that covers the employees of the InternationalUnion and the Teamsters National Headquarters Building Corporation(a wholly owned subsidiary). Substantially all of the employees participate inthe Plan. Benefits provided by this Plan are determined based on years of service,level of compensation, and date of employment. The International Unionpays the full cost of the Plan and annually determines the amount, if any, tocontribute to the Retirement and Family Protection Plan based on the advice ofconsulting actuaries.The International Union reports in accordance with Financial AccountingStandards Board “Compensation-Defined Benefit Plans” requires that the fullfunding status of defined benefit pension and other postretirement plans berecognized on the statement of financial position as an asset (for overfundedplans) or as a liability (for underfunded plans).In computing net periodic pension costs as of January 1, 2011 to be recognizedfor the year ended December 31, 2011, the consulting actuary used thefollowing assumptions:Discount rate 5.75%Average rate of compensation increase 5.00Expected return on Plan assets 8.00The information on benefit cost for the year 2011, as determined by theconsulting actuary, is as follows:Employer contributions $12,582,956Plan participants’ contributions –Benefits paid 3,316,667In computing the funded status of the Plan as of December 31, 2011, theconsulting actuary used the following assumptions:Discount rate 4.50%Average rate of compensation increases 3.75The funded status of the Plan as of December 31, 2011, as determined by theconsulting actuary, is as follows:Projected benefit obligation $(124,863,205)Fair value of plan assets 83,917,521Funded status $( 40,945,684)Accumulated benefit obligation $( 100,100,584)Amounts recognized in the statement of financial position as of December 31,2011 consists as follows:Non-current assets $ –Current liabilities –Non-current liabilities (40,945,684)Amounts recognized in net assets as of December 31, 2011 consist as follows:Transition obligation $ –Prior service cost ( 545,214)Net loss 35,067,883$ 34,522,669Net periodic benefit cost $ 9,783,109Other changes in Plan assets and benefit obligations recognized in net assetsas of December 31, 2011:New transition obligation $ –New prior service credit –New net gain 4,821,249Amortization of transition obligation –Amortization of prior service cost ( 245,231)Amortization of net loss ( 1,805,035)Total recognized in net assets $ 2,770,983Total recognized in net periodic benefit cost and net assets: $ 12,554,092The amounts that will be amortized from net assets into net periodic benefitcost over the next fiscal year are:Transition obligation $ –Prior service cost 245,231Net loss 2,028,891$ 2,274,122The Plan’s expected long-term rate of return on assets assumption is 8.00%.As defined in Financial Accounting Standards Board “Compensation-DefinedBenefit Plans”, this assumption represents the rate of return on Plan assetsreflecting the average rate of earnings expected on the funds invested or tobe invested to provide for the benefits included in the benefit obligation. Theassumption has been determined by reflecting expectations regarding futurerates of return for the investment portfolio, with consideration given to thedistribution of investments by asset class and historical rates of return foreach individual asset class.The Plan’s overall investment strategy is to invest in securities that will meetor exceed an absolute return of 8.00%. In order to meet its needs, the Plan’sinvestment strategy is to emphasize total return primarily by emphasizinglong-term growth of principal while avoiding excessive risk and secondly byachieving returns in excess of the rate of inflation over the investment horizonin order to preserve purchasing power of Plan assets.WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 37

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011NOTE 12. RETIREMENT AND FAMILY PROTECTION PLAN (CONTINUED)Effective October 2009, the Plan’s goal is to maintain the following allocation ranges for investments:Fixed income securities 95% – 100%Cash and equivalents 0% – 5%Prior to October, 2009, the Plan’s goal was to maintain the following allocation ranges for investments:Equity securities 60% – 80%Fixed income securities 30% – 40%Cash and equivalents 0% – 5%The major classes of plan investments at December 31, 2011 are:Fair ValueCollective trust fund-fixed income $63,641,530Mutual fund-fixed income 14,691,936Corporate obligations 4,920,549Money market mutual fund 286,484$83,540,499Fair Value Measurements and Disclosures establishes a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levelsof the fair value hierarchy are described below:Basis of Fair Value MeasurementLevel 1 - Unadjusted quoted prices in active markets for identical assets that are accessible at the measurement date.Level 2 - Quoted prices in markets that are not considered active or investments for which all significant inputs are observable..Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.Fair Value Measurements at December 31, 2011Total Level 1 Level 2 Level 3Collective trust fund - fixed income $ 63,641,530 $ – $ 63,641,530 $ –Mutual fund - fixed income 14,691,936 14,691,936 – –Corporate obligations:Corporate obligations 4,781,505 – 4,781,505 –Asset backed obligations 89,044 – 89,044 –Mortgage backed securities 50,000 – 50,000 –Money market mutual funds 286,484 286,484 – –$ 83,540,499 $14,978,420 $ 68,562,079 $ –The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes ineconomic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances,the transfer is reported at the beginning of the reporting period.We evaluated the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets availablefor benefits.38 TEAMSTER | SUMMER 2012 | www.teamster.org

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011During 2011, significant transfers from Level 1 to Level 2 were as follows:Corporate obligations Level 1 Level 2From Level 1 to Level 2 $ (4,885,442) $ 4,885,442Transfers to Level 2 from Level 1 were made at the beginning of the year January 1, 2011 because of the absence of quoted prices in active markets for the securities.The Plan’s policy is to recognize transfers between levels as of the actual date of the event or change in circumstances valuation by the investment manager.The International Union’s expected contribution to the Plan for the year ended December 31, 2012 has not yet been determined. Benefits expected to be paid by thePlan during the ensuing five years and thereafter are approximately as follows:2012 $ 9,485,1792013 9,105,5152014 9,346,9402015 9,904,5042016 10,563,145Aggregate for fiveyears beginning 2017 54,491,554NOTE 13. TEAMSTERS NATIONAL 401(K) SAVINGS PLANIn 1996, the International Union entered into a trust agreement to participate in the Teamsters National 401(k) Savings Plan (the Plan). Beginning in April 1997, employeesof the International Union who have completed 30 days of service may contribute to the Plan through payroll deductions. Participants may contribute up to89% of their pretax salaries up to the maximum prescribed by law and an additional 5% of after-tax salaries. The International Union, as a Plan sponsor, does notcontribute to the Plan and assumes no liability for the Plan’s administrative costs.NOTE 14. RELATED ENTITIESThe International Union has various related entities not included in the consolidation, which include a political and education fund (a separate, segregated fund ofthe International Union), two defined benefit pension plans, a defined contribution pension plan, a legal defense fund, and a voluntary employee benefits trust.These entities, as well as the Strike and Defense Fund, Supplemental Benefits Trust, Teamster Disaster Relief Fund and James R. Hoffa Memorial Scholarship Fund,Inc., which are included in the consolidated financial statements, and amounts due to (from) the International Union at December 31, 2011 are as follows:Strike and Defense Fund $ 101,650Teamster Affiliates Pension Plan 6,497Hoffa Scholarship Fund ( 3,905)Retirement and Family Protection Plan 294Voluntary Employee Benefits Trust 379,000Supplemental Benefits Trust 319,000Teamsters Legal Defense Fund 25,015Total $ 827,551The International Union absorbs the administrative costs applicable to the operations of these related entities. All but the political and education fund, TeamsterDisaster Relief Fund and James R. Hoffa Memorial Scholarship Fund reimburse the International Union for those administrative costs through cost sharing arrangements.NOTE 15. POSTRETIREMENT BENEFITSThe International Union provides life insurance benefits for retired employees meeting the requirements of a normal pension or becoming disabled and receiving adisability pension. Spouses and dependent children of these retirees are also eligible to participate. In addition, certain spouses and dependent children of deceasedactive employees are eligible to participate in the plan.In accordance with applicable accounting standards, the International Union has recognized a liability of $673,229 which represents the actuarially calculated accumulatedbenefit obligation. The accumulated benefit obligation represents the present value of future premiums to be paid by the International Union calculatedusing various assumptions for matters such as mortality and discount rate. The total recognized in net periodic benefit cost and other comprehensive income for theyear ended December 31, 2011 totaled $130,411.WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 39

INTERNATIONAL BROTHERHOOD OF TEAMSTERS FINANCIAL REPORT 2011International Brotherhood of Teamsters NOTES TO CONSOLIDATED FINANCIAL STATEMENTSYEAR ENDED DECEMBER 31, 2011NOTE 16. ACCRUED LEAVEIn compliance with “Compensated Absences” the International Union has establisheda liability of $3,052,008 representing accumulated future absences of itsemployees through the year ended December 31, 2011, which is included under“accounts payable and accrued expenses” in the consolidated statement of financialposition.NOTE 17. COMMITMENTS AND CONTINGENCIESThe International Union is involved in litigation arising in the normal course of operations.Some of the litigation involves matters common to any organization ofcomparable size, including personnel, employment, contract, and trademark issues.Other litigation relates to the International Union’s status as a labor organization.Much of this latter litigation is strategic, pursued by employers intent onpressuring the International Union with respect to its conduct as a bargainingrepresentative pursuing better wages, hours and working conditions for themembers of the International Brotherhood of Teamsters.None of the litigation involves any substantial liability on the part of the InternationalUnion. Accordingly, no provision for any liability that may result upon finaladjudication of any pending litigation has been made in the accompanying consolidatedfinancial statements.NOTE 18. AFFINITY PROGRAMThe International Union entered into agreements with HSBC Finance Corporation(HSBC) and GMAC Insurance Company (GMACI) under which royalty paymentsare received. The International Union assigned any and all rights andinterests it may have related to these royalties to the Trustees of the InternationalBrotherhood of Teamsters Supplemental Benefits Trust. On August 9,2011, Capital One Financial (COF) announced the acquisition of HSBC’s U.S.credit card portfolio. Accordingly, COF is legally obligated to assume all of theobligations and responsibilities of HSBC under its agreement with the InternationalUnion.The agreement with HSBC provides that HSBC will pay royalties in exchange forthe right to use the International Union’s intangible property including name,logo, and membership lists, in connection with the marketing of credit cards andother financial products to members of the International Union. Under thisagreement, HSBC has agreed to pay the International Union certain royaltiescommencing as of September 1, 2007, in part to ensure that the InternationalUnion will continue to maintain its credit card and loan program with HSBC atleast until the agreement’s scheduled expiration date of February 28, 2019. Thisagreement will renew automatically for successive periods of one year each unlessthe International Union or HSBC notifies the other party of its intent not torenew the agreement at least twelve months prior to February 28, 2019.The agreement with GMACI provides that GMACI has the exclusive rights tomarket and sell insurance coverage to International Union members in exchangefor a fee of 3% of the direct written premium on policies underwritten for theplan by GMACI. The fees represent reimbursement for administrative expensesincurred by the International Union, list management services in connection withmarketing the insurance plan and for the use of the International Union nameand logo.The Supplemental Benefits Trust also has an agreement with Nu Travel anda joint agreement between the International Union and Affinity Financial Corporationunder which royalty payments are received.NOTE 19. LEASESThe International Union leases office equipment, office space, and residentialspace. Monthly lease and maintenance payments are allocated to program expensesin the consolidated statement of activities. Lease obligations under noncancelableoperating leases are as follows:Year ending December 31, 2012 $ 872,0722013 661,8412014 368,9902015 174,9732016 92,180Total 2,170,056Thereafter –$ 2,170,056Rental payments totaled $2,932,417 for the year ended December 31, 2011.NOTE 20. RESTRICTIONS ON NET ASSETSTemporarily restricted net assets in the General Fund as of December 31, 2010resulted from contributions from local union members, local unions and otheraffiliates for member-to-member communications through a newly created FieldAction Fund run by the International Union. At December 31, 2011 temporarilyrestricted net assets consisted of $670,172 for these activities.NOTE 21. LOAN PAYABLEDuring the year ended December 31, 2011 the International Union entered into aloan agreement (line of credit) and executed a promissory note with WachoviaBank to borrow amounts up to $22,000,000. Interest is due monthly on the outstandingbalance of the note and the principal payment is due by June 30, 2012.As of December 31, 2011, the outstanding principal balance due on the notewas $17,478,714 at a variable interest rate of .745303%.Interest expense totaled $123,870 for the year ended December 31, 2011.NOTE 22. RISKS AND UNCERTAINTIESThe International Union holds diversified investments which are exposed to variousrisks including economic, interest rate, market, and sector. Such risks couldcause material near term fluctuations in the market value of the investments asreported in these financial statements.NOTE 23. SUBSEQUENT EVENTSThe International Union has evaluated subsequent events through May 31,2012, the date the financial statements were available to be issued, and theyhave been evaluated in accordance with relevant accounting standards.40 TEAMSTER | SUMMER 2012 | www.teamster.org

IRB REPORT 3REPORT TO ALL MEMBERSOF THE INTERNATIONALBROTHERHOOD OF TEAMSTERSFROM: Independent Review BoardBenjamin R. CivilettiJoseph E. diGenovaWilliam H. WebsterDATED: July 2, 2012I. INTRODUCTIONThis is Report Number 3 of the Independent ReviewBoard ("IRB") for 2012 regarding activities conducted pursuantto the Consent Order. In this Report we will discuss matterscurrently before us including three new reports. In some detail,you were previously informed of prior charges against IBTofficers and members and recommended Trusteeships by IRB.This report will provide the status of those prior charges andTrusteeships.II. NEW REPORTSA. MIA LLOPIZ - LOCAL 272, NEW YORK, NEW YORKOn May 3, 2012 the IRB issued an Investigative Reportto the Executive Board of Local 272 concerning member MiaLlopiz. The report recommended that Ms. Llopiz be charged withbringing reproach upon the IBT by willfully and without justificationfailing to appear for her scheduled in-person sworn examination.The Executive Board was given 90 days in which to filethe charge, hold a hearing, submit its finding and decision to theIRB. On June 15, 2012 a hearing was held. Ms Llopiz did not appear.A hearing transcript and decision are in process.B. SIAMAK SHOKOUFANDE - LOCAL 272,NEW YORK, NEW YORKOn April 5, 2012 the IRB issued an Investigative Reportto the Executive Board of Local 272 concerning member SiamakShokoufande. The report recommended that Shokoufande becharged with bringing reproach upon the IBT by willfully andwithout justification failing to appear for his in-person swornexamination. The Local 272 Executive Board was given 90 daysin which to file the charge, hold a hearing, submit its findingsand decision to the IRB.On May 29, 2012, by letter from Bruce J. Cooper, Esq.,an agreement signed by Shokoufande was submitted to the IRBfor review, approval and submission to the Court. The Agreementwas approved by the IRB and submitted to Chief Judge Preskaon June 21, 2012, by way of Application 159. This agreement wasapproved by Judge Preska on July 2, 2012.C. NICHOLAS BERNHARD - LOCAL 917,FLORAL PARK, NEW YORKOn April 25, 2012 the IRB issued an InvestigativeReport to the Executive Board of Local 917 concerning NicholasBernhard, President of Local 917. The report recommended thatMr. Bernhard be charged with bringing reproach upon the IBTby willfully and without justification refusing to answer questionsduring his in-person sworn examination. The Executive Boardof Local 917 was given 90 days in which to file the charge, holdthe hearing, submit its findings and decision to the IRB.In a letter dated May 2, 2012, from Ralph Natale,Secretary-Treasurer of Local 917, the IRB was informed that theExecutive Board of Local 917 determined to adopt and file thecharges against Mr. Bernhard and referred the matter to IBTGeneral President, James P. Hoffa, for adjudication. On May 22,2012, Mr. Hoffa issued Notice of the June 14, 2012 Hearing toMr. Bernhard and also appointed a Hearing Panel. The hearingwas cancelled because an agreement is in process.III. PROGRESS OF EXISTING CHARGESA. IRB HOLDS HEARINGS AND MAKES FINALDETERMINATIONS ON LOCAL 82, SOUTHBOSTON, MASSACHUSETTSIRB hearings were held on October 11, 2011 at the SheratonBoston Hotel, in Boston Massachusetts to address remainingunresolved charges against officers and members of Local 82.Unresolved charges addressed at these hearings involvedmembers Thomas Flaherty and James Deamicis, five Officersof the Executive Board: Leif Thornton, Cheryl Milisi, FrancisDizoglio, John Logan, and Nicholas Murphy; and memberLawrence Maguire, as discussed below.James Deamicis and Thomas FlahertyOn January 24, 2012, the IRB issued its opinion anddecision regarding charges against Messrs. Deamicis and Flahertyas follows:Messrs. Deamicis and Flaherty were charged with actingin concert, with two former principal officers of Local 82 to arbitrarilyand selectively enforce unauthorized voting rules by knowinglyallowing favored ineligible members to vote on a proposedcollective bargaining agreement with a trade show contractor.These actions brought reproach upon the Teamsters while injuringfellow members. Mr. Deamicis also brought reproach uponthe IBT because he knowingly violated the terms of a priorsuspension by exercising all rights of membership, includingattending meetings, voting on collective bargaining agreementsand serving as a chief steward.Among the penalties determined for these individualswere the following:Because Mr. Flaherty has no prior record of bringingreproach upon his Local, he was barred for a period of five yearsfrom holding membership in or any position with the IBT or anyIBT-affiliated entity.Since Mr. Deamicis also knowingly violated the terms ofa prior suspension, among the penalties imposed was that he waspermanently barred from holding membership in or any positionwith the IBT or any IBT-affiliated entity.On January 24, 2012, the IRB submitted Application156 on this matter to Chief Judge Preska for review, and if affirmed,to be entered as an order of the Court.WWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 41

IRB REPORT 3On April 17, 2012 Mr. Deamicis filed an appeal withChief Judge Preska. The Chief Investigator and the AssistantUnited States Attorney have filed their responses. On June 20,2012 Mr. Deamicis filed a request for a 30-Day extension.Leif Thornton, Cheryl Milisi, Francis Dizoglio, John Loganand Nicholas MurphyOn January 25, 2012, the IRB issued its opinion andDecision on charges against members of the Executive Board ofLocal 82 as follows:All members of the Executive Board of Local 82 wereCharged when significant non-routine expenditures were neverput to a vote before the members, nor were their actual costs disclosedto the membership. A second charge applicable to Messrs.Dizoglio, Logan and Murphy, is that they signed approval of financialreports without first verifying the bank account balancesor any supporting financial documentation.The IRB decided that each of the five respondents bebarred permanently from holding office or employment withLocal 82 or any successor union.On January 25, 2012, the IRB submitted Application155 on this matter to Chief Judge Preska for review, and ifaffirmed, to be entered as an order of the Court.The IRB was informed that Mr. Murphy has filed anappeal with Chief Judge Preska.Lawrence MaguireOn February 22, 2010 the IRB issued its opinion andDecision on the charges against Mr. Maguire.Mr. Maguire brought reproach upon the IBT by intimidatinga witness and assaulting a Police Officer while an IBT member.Among the penalties imposed on Mr. Maguire was thathe be permanently barred from holding membership in or anyposition with the IBT or any IBT-affiliated entity.On January 22, 2012 the IRB submitted Application 158on this matter to Chief Judge Preska.B. BERNARD PISCOPO - LOCAL 82, SOUTHBOSTON, MASSACHUETTSOn February 2, 2012, the IRB issued its opinion and decisionon the charges against Mr. Piscopo.Mr. Piscopo was charged with bringing reproach uponthe IBT by killing a man with a weapon while an IBT member, asevidenced by his conviction for manslaughter.Among the penalties imposed on Mr. Piscopo was thatMr. Piscopo be permanently expelled from holding membershipin Local 82, the IBT and IBT-affiliated entities and permanentlybarred from holding office or employment (including as an independentcontractor or consultant) with Local 82, the IBT and allaffiliated entitiesOn February 2, 2012 the IRB submitted Application 157on this matter to Chief Judge Preska.C. PARTIAL TRUSTEESHIP – LOCAL 107,PHILADELPHIA, PENNSYLVANIAIn a letter dated May 15, 2012 from Mr. Bradley Raymond,IBT General Counsel, the IRB was informed that the Trustee ofLocal 107 has continued to monitor the convention/ tradeshow referral practices. This process was somewhatprotracted due to the fact that this business has been sporadic.IBT staff counsel participated in a meeting with Local 107in which new referral rules were explained. Local 107 updatedthe referral list to reflect the days worked by employeesduring 2011.After further updating the referral list, and its distributionto the membership, Local 107 was released from partialtrusteeship on May 31, 2012 by General President Hoffa.D. SCOTT L. AARON - LOCAL 272, NEW YORK,NEW YORKOn March 1, 2012 the IRB issued an InvestigativeReport to the Executive Board of Local 272 concerning Scott L.Aaron, a member of Local 272. The report recommended thatMr. Aaron be charged with bringing reproach upon the IBTby willfully and without justification failing to appear for hisin-person sworn examination.A hearing of the charge was held on March 28, 2012,Mr. Aaron failed to appear or to notify the Local that he was notavailable. Mr. Aaron was found guilty and permanently expelledfrom membership in Local 272 and permanently barred fromparticipating in any manner in any of the activities or affairs ofLocal 272 or any other IBT entity.On May 21, 2012 the IRB sent a letter to Mr. FredAlston, President of Local 272, and informed him that the IRBhas reviewed the Local 272 Executive Board’s April 16, decisionson the IRB-recommended charge against Mr. Aaron. The IRBfound the decision to be inadequate because the decision statesthat the appeal of the decision can be taken to the ExecutiveBoard of Joint Council 16 and because the decision containsexcess verbiage on a matter of labor law. Pursuant to the ConsentOrder and of the Rules and Procedures for Operation of theIndependent Review Board, the IRB is the sole review of IBTdecisions on IRB-recommended charges.Local 272 was given ten days from receipt of IRB’s letter,to notify the IRB in writing of what actions, if any, have beentaken to correct the deficiencies. On May 29, 2012 the Local 272Executive Board submitted its amended decision to a permanentbar of Scott L. Aaron and Richard Levy (below) from the IBT.After review of the amended decision the IRB issued a not-inadequateletter to the Local 272 Executive Board.E. RICHARD LEVY - LOCAL 272, ALBANY,NEW YORKOn March 1, 2012, the IRB issued an InvestigativeReport to the Executive Board of Local 272 concerning memberRichard Levy. The report recommended that Mr. Levy becharged with bringing reproach upon the IBT by willfully andwithout justification failing to appear for his in-person swornexamination.The reader is referred to Section D. above wherein thediscussion described for Mr. Aaron also applies to Mr. Levy.42 TEAMSTER | SUMMER 2012 | www.teamster.org

IRB REPORT 3F. TRUSTEESHIP - LOCAL 630, LOS ANGELES,CALIFORNIAIn a letter dated September 27, 2011 from James P.Hoffa, IBT General President, to the Co-Trustees of Local 630,Mr. Hoffa, decided to continue the Trusteeship.In a notice dated September 26, 2011 to the officers andmembers of Local 630, Mr. Hoffa pointed out that the trusteeshad begun to adopt procedures ensuring that the excesses of thepast are not repeated.In a letter dated May 15, 2012 from Mr. Raymond tothe IRB, reference is made to a report prepared by the Trusteeof Local 630 as of April 2012. The report provides a listing ofimprovements that were implemented in several areas includingfinances, litigation, contract and bargaining, participation meetings,and staffing.For example, at the beginning of the Trusteeship in June2011 the Local did not have sufficient funds to make their payrollin the General Fund. In the six months prior to April 2012, theLocal was running an average net surplus of $36,466 per month.In addition, several staff changes included the release of severalstaff members, the hiring of new staff, and the completion ofseveral staff training sessions.The report recommends that the Local be released fromTrusteeship after officer elections are conducted in September2012 and that the 24 month rule be lifted to allow election participationof the entire membership.G. OSWALD MARTUCCI - LOCAL 669,ALBANY, NEW YORKOn December 22, 2011 the IRB issued an InvestigativeReport to General President Hoffa concerning Oswald Martucci,Secretary-Treasurer and Principal officer of Local 669. Thereport recommends that Mr. Martucci be charged with thefollowing two charges:Charge OneWhile the principal officer and a member of Local 669,Mr. Martucci violated his fiduciary duties to the Local and itsmembers, embezzled and converted Local 669 funds to his ownuse, and brought reproach upon the IBT in violation of the IBTConstitution and Local 669 Bylaws, to wit:Between approximately February 2006 and May 2010,while Secretary-Treasurer of Local 669, you embezzled approximately$6,184 from Local 669 as described in the report.Charge TwoWhile the principal officer and member of Local 669,you brought reproach upon the IBT and violated the Local’s Bylawsand the IBT Constitution, to wit:Between July 2010 and August 2011, you took $1,950 intravel allowances without submitting receipts as the travel policyof the Executive Board required and approved on May 8, 2004, asdescribed in the report.In a letter dated January 4, 2012 Mr. Hoffa informed theIRB that he adopted and filed the charges against Martucci. OnMarch 1, 2012 a hearing was conducted on this matter at the officesof Joint Council 18 in Albany, New York. On April 2, 2012,James P. Hoffa reviewed the hearing Panel’s findings and conclusionsand adopted them as his own. The penalties recommendedby the Panel included the following:• That Mr. Martucci should be barred from holding any officeor employment with Local 669, the IBT or any affiliate of theIBT, including benefit funds, and including any employmentas a contractor or consultant, for a period of two years, effectiveimmediately.• That Mr. Martucci should be suspended from membershipin Local 669, the IBT or any affiliate of the IBT for a periodof two years, effective immediately, or until he pays therestitution set forth below, whichever occurs later.• That Mr. Martucci should pay to Local 669 the sum of$6,148.00 in restitution for the amounts he has been foundimproperly to have been received and retained in the form ofexpense payments that were provided to, and retained by, himcontrary to Local Union’s policy between 2006 and 2010.The Panel did not believe that Mr. Martucci shouldrepay the Local for the additional $1,950.00 he received in unapproved“per diem” payments between 2010 and 2011. The Panelbelieves it would be unjust to require that he repay this amountover and above the funds he improperly received and retainedbetween 2006 and 2010 because Martucci did rely on what hebelieved was established “pre diem” practice.The IRB determined that the decision is not inadequate.On June 21, 2012, the IRB sent a letter to Mr. Hoffa advising thatthe IRB found that his decision was not inadequate.H. TRUSTEESHIP RECOMMENDED - LOCAL 669,ALBANY, NEW YORKIn a letter dated May 15, 2012 from Mr. Raymondthe IRB was informed that IBT’s General Executive Board hasapproved the merger of Local 669 with Local 294 which is also locatedin Albany, New York. Local 294 already had approximately3,000 members and ample resources to provide representationalservices to members of Local 669.On June 1, 2012 General President Hoffa released Local669 from trusteeship.I. LOUIS LOMBARDO - LOCAL 831, NEW YORK,NEW YORKOn March 1, 2012, the IRB issued an InvestigativeReport to General President Hoffa concerning member LouisLombardo. The report recommended that Mr. Lombardo becharged with bringing reproach upon the IBT and violating hisoath of membership by knowingly associating with members ofthe Gambino La Cosa Nostra Family including Joseph Julianoand Vincent Romano.In a letter to the IRB from General President Hoffa,dated March 2, 2012, Mr. Hoffa determined to adopt and file theWWW.TEAMSTER.ORG | SUMMER 2012 | TEAMSTER 43

charges against Mr. Lombardo and in accordance with past practice,these charges were referred back to the IRB for adjudication.On April 26, 2012, a Notice of Hearing was issued toMr. Lombardo regarding his scheduled hearing to be held onMay 16, 2012 at the offices of Jones Day, New York, New York,at 10:00 a.m. At the scheduled hearing site and just prior to thestart of the hearing an agreement was negotiated and the writtenagreement is under review by the IRB.IV. TOLL-FREE HOTLINESince our last report to you, the hotline has receivedapproximately 75 calls reporting alleged improprieties. As inthe past, all calls appearing to fall within IRB jurisdiction werereferred for investigation.Activities which should be reported for investigationinclude, but are not limited to, association with organized crime,corruption, racketeering, embezzlement, extortion, assault, orfailure to investigate any of these.To assure that all calls are treated confidentially, thesystem recording hotline calls is located in a cipher-locked IRBroom on a dedicated line and accessed only by an IRB investigator.The recorded information, if complete and within IRBjurisdiction, is forwarded directly to the Investigations Office inNew York City. Please continue to use the toll-free hotline toreport improprieties which fall within IRB jurisdiction by calling1-800-CALL-IRB(800-225-5472). If you are calling from withinWashington, DC, dial 202-434-8085.V. CONCLUSIONAs always, our task is to ensure that the goals of theConsent Order are fulfilled. In doing so, it is our desire tokeep the IBT membership fully informed about our activitiesthrough these reports and also through use of the website atwww.irbcases.org. The website also makes available a copy ofthe Consent Decree.If you have any information concerning allegations ofwrong doing or corruption, you may call the toll-free hotlinenumber noted above, use the IRB facsimile number 202-434-8084,or write to either the IRB Chief Investigator or the IRB office:Charles M. Carberry, Chief Investigator17 Battery Place, Suite 331New York, NY 10004Independent Review Board444 North Capitol Street, N.W.Suite 528Washington, DC 20001Get in the Teamster Network!Text IBT to 64336YOUR PHONE COULD BE YOUR BESTNEWS SOURCE ABOUT YOUR JOB,YOUR UNION AND YOUR COMMUNITY.Join the Teamsters MobileNews Network Today!Reach out and text IBT to64336 to recieve updatesdirectly to your phone.IBT offers periodic text msg updates but yourcarriers msg & data rates may apply.44 TEAMSTER | SUMMER 2012 | www.teamster.org

THE JAMES R.HOFFAMEMORIAL SCHOLARSHIP FUND2012 ESSAY CONTESTJO BSDEADLINE FOR SUBMISSIONS ISSEPTEMBER 30, 2012For students attending a community college,four-year institution or a technical/vocationalprogram, age 23 and younger, who are childrenor grandchildren of Teamster members.For an application, contact yourlocal union office or visit www.teamster.org.WHAT ROLE CAN LABOR UNIONSPLAY IN CREATING JOBS ANDJUMPSTARTING THE ECONOMY?