Shining a Bright Light in a Very Dark Place
Word is emerging this week that a major US newspaper is conducting a thorough investigation into the finances at the IAFF, among other things.
While it’s widely known that Harold Schaitberger lives a life of luxury paid for by IAFF rank-and-file members, this is apparently the first outside look at his expenditures.
The investigation also covers the notorious unethical taking of an $80 travel reimbursement by Schaitberger and executive board members when they are not entitled to it.
Some have accrued tens of thousands of dollars using the $80 device over the years.
They continue to do so despite the fact that IAFF auditors notified the board that taking the $80 travel reimbursement without traveling is both improper and a risk to the IAFF’s tax-exempt status.
More Than Unethical
Their conduct clearly breaches the fiduciary requirements in 29 U.S.C. 501 (a) for a union “…to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and bylaws and any resolutions of the governing bodies adopted thereunder,…”
In addition, the IAFF Constitution and ByLaws states in Article I Section 4, “It is the obligation and responsibility of every officer, member and all chartered local unions, state and provincial associations and joint councils to comply with the provisions of this Constitution and ByLaws and the decisions of the Association officers in conformity therewith, and they shall refrain from any conduct which interferes with the performance by the Association or any of its subordinate bodies of their obligations under law or contract, or any conduct which defeats or subverts the lawfully declared and established policies and objectives of the Association, or which may defame it or any of its officers, members or subordinate bodies.”
Finally, the IAFF Constitution and ByLaws explicitly states in Article 5, Section 6, “…All administrative days and per diem days for Vice Presidents are abolished upon the receipt of salaries. “
Schaitberger and the board are potentially breaking federal law as well subverting the IAFF governing documents.
In addition to the newspaper investigation it is also reported that the Internal Revenue Service has been notified of the $80 skimming as it jeopardizes the tax exempt status and the loss of it would be devastating for the IAFF.
The weeks ahead are going to very interesting.
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Email to the US Department of Labor at: olms-public@dol.gov