Teamsters say local bosses used positions to 'enrich themselves'
Citing concerns about thousands in unauthorized bonuses and lavish spending by executives at a suburban union local, the International Brotherhood of Teamsters ousted its leaders and appointed an emergency trustee to manage operations Tuesday.
Audits of Burr Ridge-based Teamsters Local 731, which serves about 6,000 workers, showed "a deeply troubling pattern of repeat violations" and "significant financial wrongdoing," IBT General President Sean M. O'Brien said in a statement.
Auditors said they found cases of credit card misuse by Local 731 board officers and President Terrence Hancock that included charges for a leather Coach bag, a pedicure, and nearly $16,000 for alcohol at Gibson's and other bars and steakhouses.
The executive board also paid themselves about $304,000 in year-end bonuses between 2018 and 2022, without approval from members, IBT officials said.
There was a "yearslong pattern of using their positions to enrich themselves at the expense of the local and its membership," O'Brien said.
Hancock, who until Tuesday also served as president of Teamsters Joint Council No. 25 that represents more than 100,000 members in Illinois and Indiana, did not return calls seeking comment.
Local 731 represents a wide variety of members ranging from construction workers to waste disposal truck drivers.
The emergency trustee will review Local 731's books and "bring everything into order," Teamsters International spokeswoman Kara Deniz said. A hearing will take place to determine next steps for the trusteeship and allow members to raise concerns.
"This is a process so we can bring things up to the standards our members deserve and expect and so there will be accountability," Deniz said.
Other concerns raised by auditors included 198 instances of missing credit card receipts, charges showing more than $26,000 in inappropriate expenditures, and expense reimbursements for two visits to Gibson's totaling $18,813 and $18,221.
Also, a review of 26 recent contracts showed 25 were not in compliance, officials said.
The executive board at Local 731 had been "repeatedly been instructed to stop their violations and correct these matters over multiple audit periods. They have failed to do so," O'Brien said.
Hancock has been removed as president of Joint Council 25, Deniz said.