New York: lax labor laws lead to big corruption

Paul Kersey

Labor law expert, occasional smart-aleck, defender of the free society.

Paul Kersey
June 5, 2013

New York: lax labor laws lead to big corruption

Among the many problems created by labor law across the country is the temptation for union officials to embezzle funds. A spectacular case came up in Auburn, N.Y., where the late Sally Jo Widmer, who had been the long-time president of the Auburn Teachers Association, was found to have siphoned off $800,000 from the union....

Among the many problems created by labor law across the country is the temptation for union officials to embezzle funds. A spectacular case came up in Auburn, N.Y., where the late Sally Jo Widmer, who had been the long-time president of the Auburn Teachers Association, was found to have siphoned off $800,000 from the union.

According to Mike Antonucci of the Education Intelligence Agency:

Members were informed this week that Widmer misappropriated at least $800,000 in union dues during the period 2006-2012. “It appears that money earmarked for the Association was instead used for meals, gasoline, trips, gambling, clothing, grocery shopping – and for cash advances,” wrote new ATA president Cheryl Miskell. ”Because some old financial records are unavailable, we may never know the full extent of the misappropriations.”

In life, Widmer was considered a model teachers union official – the high school where she taught closed on the day of her funeral. But apparently she had her hand in the till for close to six years. Widmer was helped by lax union accounting practices. The New York State Union of Teachers, an affiliate of the American Federation of Teachers, failed to follow up when Widmer did not turn over dues payments that her local was expected to make to them.

Like New York, Illinois does not have any union financial reporting laws, increasing the likelihood that union workers in this state will be the victims of this sort of scam.

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