Appeal Hearing On 'Mob' ATU Local's Election

By RICHARD STEIER

The union representing school bus drivers, whose president is supposed to begin his racketeering trial in two weeks while two other top union officials have already pleaded guilty to criminal charges, is holding a hearing Oct. 31 on an appeal by dissidents of last year's officers election.

RAYMOND LaROCHE: International ATU no help.

The challengers to the union's leadership, known as Members for Change, appealed the June 2005 election results, alleging improprieties that ranged from interference in the campaign process by bus companies to the casting of fraudulent ballots in the names of drivers and matrons who were then denied the right to vote.

Took Case to International

One dissident, veteran driver Warren Zaugg, said during an Oct. 24 interview that the board of Amalgamated Transit Union Local 1181 failed to hear the appeal at a meeting in January called for that purpose. "They held their usual meeting, said a few words and took the vote," he said.

The dissidents went to Orlando, Fla. Oct. 10 to press their case with the International ATU, which ordered the appeal hearing.

EDDIE KAY: Throw the bums out.

Members for Change has raised questions about what it claims are inadequate pension allowances and money it alleges is missing from a Local 1181 "defense fund" that was started 25 years ago. The dissidents have also asked the International to remove Local 1181 President Salvatore Battaglia based on Federal prosecutors' allegations that he is among those who has allowed the local to be controlled by organized crime.

Crime Boss Admits Role

Those charges have taken on substantial credibility during the past three months. Two veteran union officials, Julius "Spike" Bernstein and Ann Chiarovano, who were indicted along with Mr. Battaglia as part of a sweeping racketeering case brought by the U.S. Attorney's Office in Manhattan, have pleaded guilty to some of the allegations.

Even more significantly, Matthew "Matty the Horse" Ianniello, whom Federal investigators have described as one of the bosses of the Genovese Crime Family, in mid-September pleaded guilty to assisting officers of the local to receive illegal payoffs from bus company owners to allow their operations to remain nonunion.

During an ongoing trial of others charged in the case, including Genovese family capo Ciro Perrone, FBI agents have testified that Mr. Bernstein, the longtime Local 1181 secretary-treasurer whose guilty plea is sealed, was Mr. Ianniello's conduit to the local for the past three decades.

Mr. Zaugg said Mr. Bernstein's role in the local came up during the dissidents' appearance before the International ATU.

Unusual Route to Job

"They asked, 'How did Spike get into the union? He never was a bus driver,"' he recalled. "I said, 'Ask the Mafia.''' International ATU President Warren George, who has declined to comment on the situation within the 14,500-member local - the ATU's largest - has not taken any action against the two convicted officials. He appointed an International vice president, Joseph Welch, to oversee the local's affairs after Mr. Bernstein early this summer took a leave of absence from his post as a condition of being granted bail when he was charged in a related extortion scheme.

Mr. Zaugg said this move had no impact on the local's operations, pointing out that Mr. Welch has been based at its Ozone Park, Queens headquarters for at least a decade and never took steps to deal with possible corruption.

A Battaglia Fan

"There's never a comment from him except to talk about what a good job Battaglia is doing," he said. "They're putting out a newsletter praising Battaglia for increasing the membership at the same time that Spike was taking money not to add members."

Mr. Zaugg showed a reporter a flyer containing a letter from Mr. Welch that stated, "Winners have goals/Losers make excuses and have no goals."

"Why are we losers here?" said Raymond LaRoche, alluding to the flyer. "They're in bed with these people. They're not helping us in any way." He noted that despite her guilty plea, Ms. Chiarovano has continued doing her duties as the director of the union's pension and welfare funds, and Mr. Battaglia, whose trial begins Nov. 13 in U.S. District Court in Manhattan, continues to serve as president.

Pulled a Fast One

Mr. George and Local 1181 attorney Ronald Straci did not return calls regarding the dissidents' complaints.

In mid-July, during a ratification vote on a tentative contract deal with the bus companies, a reporter who gained admission to the meeting saw Mr. Welch sit silently while Mr. Battaglia, after telling the dissidents they would be given a chance to express their opinions about the deal's terms, rammed through a vote on the pact without any discussion.

It was subsequently learned that while Mr. Battaglia had told those at the meeting that the contract included no givebacks in the area of health benefits, there is a clause that would either limit benefits or increase member contributions if a spending cap is exceeded during the three years of the pact.

Several dissidents questioned Mr. Battaglia's decision to agree to a provision under which members could "opt out" of their health-benefits programs in return for two cash payments during the course of a year.

Forsake Key Protections

Brijida Pilgrim, a veteran matron, said union members weren't told that opting out would make them ineligible for disability and death benefits and a company-paid life insurance program. "As our president, why would you negotiate something like that for your members?" she asked.

"Members are finally figuring out they were lied to about the contract," said Eddie Kay, a veteran union organizer who has been assisting Members for Change. He contrasted the International ATU's lack of action against Mr. Battaglia, who was indicted 16 months ago, with the decision by the AFL-CIO New York City Central Labor Council to suspend without pay its president, Brian M. McLaughlin, two days after his criminal indictment Oct. 17.

"We believe everyone connected with this [Local 1181] administration should be voted out or thrown out," Mr. Kay said.