New York Area Unions and the Mafia

Can Labor Unions ever escape the influence of organized crime? Recent indictments show that two labor unions were plagued by mafia influence:

A trucking company owner, Joseph Spinnato, together with unnamed others, repeatedly embezzled money from Local 282’s health and pension funds. The charges detailed an enduring practice in which construction and trucking companies contribute less money to union benefit funds than is required, usually by underreporting the hours that employees work. While the scheme often operates with the complicity of union stewards, officials with Local 282 and its benefits funds were not accused of wrongdoing.

Louis Mosca, the business manager of Laborers’ Local 325 in Jersey City, was charged with taking a $2,000 bribe to give someone a union card, a move often done to help someone qualify for a construction job or union benefits. Michael King, a shop steward of Laborers’ Local 731 in Queens, was also accused of selling a membership.

Prosecutors say the unions that deliver cement and other building supplies have long been a magnet for Mafia involvement because mob officials know that if they delay deliveries, construction companies can lose large amounts of money. Those union locals thus become an ideal pressure point for extortion.