ULLICO is a financial services company run by labor bosses that invests pension funds. Through a scheme where directors could buy shares in ULLICO at a price set annually, and a scheme to buy them back at a price vastly in excess of their true value, the bosses ripped-off the workers and their pension funds in a manner that would make an Enron director blush. The story is here: Joel Mowbray on Labor & ULLICO on National Review Online
Sure enough, the collapse of Global Crossing’s stock dragged down ULLICO’s value, nearly halving the stock price to $74. All those who sold shares between November of 2000 and May of 2001 wound up receiving double what they would have at ULLICO’s true value.
Among the union leaders who took advantage of the sweetheart deal were the following ULLICO board members: Morton Bahr, president of the Communications Workers of America; Martin Maddoloni, president of the plumbers union; William Benard, former head of the asbestos workers union; Jacob West, former head of the ironworkers union; and Douglas McCarron, president of the carpenters’ union.
The personal profiteering of union bosses coming at the expense of rank-and-file union workers is at the heart of NRWLDF’s complaint to the NLRB. The suit charges that ULLICO’s special deal to its board members violated the Taft-Hartley Act of 1947 by “enriching union officials to the detriment of ordinary workers,” says Stefan Gleason, vice president of NRWLDF.
A grand jury is looking into ULLICO at the moment; indictments at 11.