Must Repay $100G-Plus
Ex-Local 237 Head Got Improper Fees

By MEREDITH KOLODNER

Former Teamsters Local 237 President Carl Haynes has agreed to repay more than $100,000 he received while president from the company that manages the union's health plan.

CARL HAYNES: A conflict of interest.

The local hired outside counsel in June to determine if the payments from the Health Insurance Plan of Greater New York (HIP) and EmblemHealth, where Mr. Haynes was a board member, violated its bylaws or constitution. Mr. Haynes, who retired from Local 237 in April, agreed to make the payments after the review by attorney Bruce Maffeo was completed.

Waiting on '07 Figure

His final obligation is still being determined. The total from 2005 and 2006 is estimated at $106,000, but the repayment for 2007 has not yet been calculated. The money will be returned to HIP and EmblemHealth.

"To ensure the highest ethical standards," stated Local 237 spokesman Hank Sheinkopf in an e-mail, "outside counsel was retained to examine and report the facts surrounding the former Local 237 Teamster president's receipt of stipends from the HIP and EmblemHealth boards. After extensive review, Carroll Haynes has agreed to repay all stipends provided him by HIP and EmblemHealth. The matter is concluded."

GREG FLOYD: No stipends for him.

Current President Greg Floyd, who was secretary-treasurer while Mr. Haynes was president, has said that he was not aware that Mr. Haynes had collected the payments until he received a phone call alerting him on June 15.

Mr. Haynes is still a vice president of the Teamsters international union. He did not return phone calls requesting comment.

No Stipend for UFT Head

Many municipal unions contract with HIP for health care and prescription coverage, and officers of Local 237, the United Federation of Teachers and District Council 37 have long served on its board of directors. UFT President Randi Weingarten did not take a stipend when she was a board member. Current board members Oliver Gray from DC 37 and Mr. Floyd do not receive stipends.

The organization Teamsters for a Democratic Union first publicized the payments on its Web site in June.

One of the group's organizers noted that this was the second time Mr. Haynes had been forced to repay funds. Previously, it was discovered that he was making more than the Teamsters General President, a violation of the union's bylaws.

'Not Likely to Deter'

"Making a millionaire pay back the money he was caught taking is not much of a deterrent," said David Levin. "Haynes is one of the top officials in the Teamsters Union. What happens to him is going to send a message to other Teamsters officials. Will Hoffa's message be, 'You will be held accountable,' or 'Go ahead, take your shot at the cookie jar because nothing really bad happens if you get caught'?''

Mr. Haynes reported the income on March 30. By law, union officials must report any income that comes from an entity that does business with their union. The law is intended to flag any conflicts of interest or undue influence that could compromise a union's ability to properly serve its members.