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ACTING CHAIRMAN SKINNER: This morning's hearing of the President's Commission On Organized Crime will corne to order. Mr. Ryan. MR. RYAN: The Commission calls Mr. Jeffrey Schaffler. Mr. Schaffler is an agent with the Department of Labor. He has had a distinguished record of investi gations in the New York area. He has made a particular specialty of investigating a group of independent unions that are not affiliated with the AFL-CIO or any of the other large independent unions. Today he will focus his testimony on corrupt independent unions. Would you be sworn, sir? JEFFREY SCHAFFLER was called as a witness and, having been first duly sworn, was examined and testified as follows: the record, please? unions? MR. RYAN: Sir, will you state your name for MR. SCHAFFLER: My name is Jeffrey Schaffler. MR. RYAN: Mr. Schaffler, what are independent MR. SCHAFFLER: Independent unions or the ones we are referring here to today, corrupt independent unions, are those not affiliated with the AFL-CIO. This Preceding page blank 327
is a working definition that we use in the Department of Labor. These unions are characterized by a membership which is highly transient, which is composed of minori ties. To a very large extent they tend to be uneducated, unskilled or low skilled. They get very little in the way of frinqe benefits and essentially are on at the minimum wage level or, slightly highet. closer to you? MR. RYAN: Could you pull the microphone Are many of these people recent immigrants to this country and, in many cases, illegally in this country? MR. SCHAFFLER: There are many instances we have found where people are illegal aliens, yes. MR. RYAN: What are the purposes ()f these corrupt independent unions? MR. SCHAFFLER: Well, the ostensible purpose of any union is to represent the working people. Inso far as the corrupt independents are concerned, they serve as a vehicle whereby sweetheart contracts can be given to employers. And these contracts tend to have benefits accruing more to the employers than to the working people, which the unions supposedly represent. 328
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\ - If you have issues viewing or a
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APRIL 24. III e ••••••
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The President's commission on organ
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Weill also present a case study of
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speoific circumstances with them, w
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MR. HARMON; Well, they were linked
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PRESIDENT'S COMMISSION ON ORGANIZED
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and the public for destructive and
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hundred locals are heavily influenc
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with nylon rope and repeatedly stab
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MR. ETO: Yes. MR. RYAN: The structu
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MR. RYAN: What office does he hold?
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not pay me -- if he did not pay me,
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MR. RYAN: Did you report to Vincent
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I told him that I pleaded stipulate
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9th did you receive a call from Joe
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cial? MR. ETO: Yes. I-iR. RYAN: Is
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witness. MR. HARMON: Mr. Chairman,
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eport to Vincent Solano, the presid
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1983, to compel the attendance and
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in his statement are virtually the
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charges of a Grand Jury investigati
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Local I in Chicago? same grounds. M
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same grounds. MR. RYAN: Are you fam
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the construction of the building an
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construction of a building from the
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equest that he not be required to t
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that would normally perform that fu
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something? COMMISSIONER METHVIN: Di
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consideration on the job site. that
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ACTING CHAIRMAN SKINNER: The aftern
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member of the local, as a field rep
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So he asked me to go in and clean t
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worked until they was ready to drop
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epresentatives of the Laborers? MR.
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occurred in 1981 and Mr. Fosco was
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MR. FOSCO: General President of the
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I'lR. FOSCO: I exercise my rights u
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of the record. And you should advis
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MR. HARMON: Are you prepared, Mr. C
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Mr. Ryan will handle the questionin
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MR. RYAN: When you responded to thi
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other people there. A leader of the
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snapped open. Several TDU members w
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Hitt? MR. HITT: Yes, they did. MR.
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his client to exercise his constitu
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"Same answer." MR. QUILLEN: On the
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him. to organized crime? MR. HARMON
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Local l07? MR. RISPO: No, sir. MR.
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soma people in Philadelphia -- ther
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And then a couple of years later th
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Coca-Cola, Spiegel's, J.C. Penney s
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other words, whatever the drivers e
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said he would call Williams? MR. RI
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ackground when he was doing his bus
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corporations. during the mid '70s?
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I went down to the bar to talk to S
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company. The drivers -- basically w
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did enforce the contract, that hold
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So the guy lost everything. Now tha
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victed of homicide? MR. RISPO: You
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MR. RYAN: Very recently? MR. SOLOMO
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MR. SOLOMON: Yes. MR. RYAN: Were th
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period? MR. SOLOMON: Yes, sir. MR.
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figures as in the past? MR. SOLOMON
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ACTING CHAIRMAN SKINNER: I guess --
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they should be provided 48 hours in
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Page 327 and 328: MR. CLIMACO: Mr. Chairman, excuse m
Page 332: MR. PRESSER: Mr. Chairman, on the a
Page 341 and 342: ACTING CHAIRMAN SKINNER: Just a mom
Page 345: excused until tomorrow morning at 9
Page 353 and 354: Trustees unquestioningly paid milli
Page 355: Teamsters, was that a cost plus con
Page 360: MR. RYANI Mr. Schaffler, would you
Page 373 and 374: Lasky. Has he been convicted, Geral
Page 376: I have no doubt that we could have
Page 379: laws of the Department of Labor? Le
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Page 391 and 392: ought out? MR. HARMON: Will Daniel
Page 393: labor union? MR. CUNNINGHAM: Yes. M
Page 397: MR. CUNNINGHAM: Well, that wasn't n
Page 400 and 401: MR. HARMON: Every union has a right
Page 403 and 404: these companies were run by ex-law
Page 406: persons by the name of Ruben Gonzal
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MR. CUNNINGHAM: No, none at all. MR
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MR. CUNNINGHAM: Primarily, yes, in
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ACTING CHAIRMAN SKINNER: Seeing no
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MR. CONNERTON: I am the chairman of
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that law firm? firm. that law firm?
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MR. CONNERTON: That's correct. MR.
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pension fund or health and welfare
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therefore, was consistent with the
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MR. CONNERTON: Again, subject to an
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premiums paid for the coverage of t
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was about 300 pounds, nnd he put hi
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COMMISSIONER METHVIN: I think the v
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ule; that the union can provide rep
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MR. CONNERTON: That is correct, Mr.
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We'll hear testimony from the execu
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MR. WALSH: There was a dual situati
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member of La Cosa Nostra? DR. AIOSS
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figure, sir. I'm not sure of the ac
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MR. RYAN: And when you took the job
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MR. RYAN: Dr. Aiossa, is it also tr
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MR. RYAN: What did that projection
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operation, Mr. Cantazaro, with the
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surveillance from September 1974 un
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MR. RYAN: At approximately 11:15 a.
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e spoken to? MR. RYAN: Usually the
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to me. MR. RYAN: You are answering
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organization here in Chicago known
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MR. RYAN: Let's talk about some oth
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of years? Fifi Buccieri? MR. SERPIC
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MR. SERPICO: No, I didn't. MR. RYAN
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quickly. MR. SERPICO: I'm sorry. AC
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now be in recess and we are going t
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these tapes were garnered. We asked
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SALVATORE AVELLINO: Well, maybe the
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-------------- ---- THOMAS RONGA: C
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eady to go to work. The union peopl
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favor now, first of all, he admits
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What does Avellino mean by "the env
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and then because eventually Tommy w
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words. manipulate it. RICHARD DeLUC
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the results of that study. With tha
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men of honor, the people in the mob
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Goldstock, on behalf of the Commiss
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trucking company? hurt. MR. HALL: M
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50 percent more people that they we
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essential for multi-employer funds
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Mr. Dorfman was killed on January 2
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the -- Whether it be approaching us
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COMMISSIONER MANUEL: For many years
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course of the Hoffa investigation.
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information and ask the Secretary o
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ACTING CHAIRMAN SKINNER: Mr. Methvi
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on our democratic fabric. The notio
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Preceding page blank APPENDIX STATE
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I would like to welcome you to this
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y trucking fabric to non-union shop
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CCNVERSATION #: 4 DATE TAPE NUMBER
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Cc.wJ:Cru3ATIOO #: 6 DATE JUNE 28,
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SA EF SA EF 'l'R EF 'l'R EF TR EF T
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F A __ PAGE 4 CONVERSATION # 9 Sal
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SA EF SA PAGE 2 CONVERSATION #11 (c
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Corallo that a particular rebel car
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STA'I'EMENT SUBMITTED FOR THE RECOR
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with Mr. Dorfman which we had begun
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operators are able to answer the va
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The second cornerstone of the Civil
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As impressive as this litany of rac
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to the extent possible that the per
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us with investigating. Equally impo
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Commission Executive Director James
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CHICAGO Map shows areas where Vince
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Executive Director James Harmon and
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Robert E. Powell, retired First Vic
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Robert Cantazaro (left) was incarce
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Convicted racketeer Robert G. Boffa
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Samuel Solomon (foreground), accomp
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Commission investigator David Willi
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Robert Connerton (center), general
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Joseph "Doves" Aiuppa, second ranki
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Ronald Goldstock, Director of the N
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