Teamsters local placed in trusteeship

June 16, 1993
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CHICAGO -- Teamsters President Ron Carey Wednesday placed the largest Teamsters union local in the Chicago area into trusteeship as a result of corruption charges leveled against its former secretary- treasurer.

Carey told a news conference he has placed Local 705, which has 14, 000 members, under the control of Ed Burke as temporary trustee.

Burke is a member of Carey's staff.

A spokesman for the local said officials would make no comment.

Former Local 705 Secretary-Treasurer Dan Ligurotis was banned from Teamster membership and all Teamster positions by a federal court in New York for embezzling union funds.

'Our union is out fighting for a better life for working people and to do that, we've got to put the problem of corruption behind us,' said Carey, who was elected to the union leadership on a reform platform.

Carey said he took the action to insure that the local's funds are spent only on programs benefiting members, to correct corruption and financial malpractice, to restore democratic procedures and to assure that the local fulfills its obligations as a labor organization and collective bargaining representative.

Carey said the Independent Review Board had presented evidence of financial malpractice and lack of democratic accountability by Local 705 leadership to the Local Union Executive Board. The board was established under a 1989 consent decree between the Justice Department and the Teamsters to settle racketeering charges.

Carey said Local 705 officials have indicated they will not cooperate with the trusteeship and the union plans to go to court to enforce Carey's action.

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