Re-election campaign James P. Hoffa began seeking support for a run at the Teamsters' presidency in February 1994. Hoffa formally announced his candidacy on September 4, 1995. Carey and Hoffa battled fiercely at the Teamsters' convention in July 1996. Hoffa introduced a resolution to deny convention voting rights to 80 delegates from the union's staff, although this right had been given to all previous presidents. Carey ordered a
voice vote on the motion, announced that the motion was defeated, and ignored calls for a
division of the house. But once it became clear that Hoffa had a slim majority of the 1,900 delegates, Carey used the power of
parliamentary procedure to delay or defeat the proposals, and his supporters brought the convention to a halt by offering amendment after amendment to Hoffa's proposals. Carey's re-election campaign was an exceptionally bitter and close one. Hoffa drew strong support from Teamsters members in the Midwest and the West (with New York state a battleground), and from union leaders unhappy with Carey's anti-corruption drive and his attempt to dismantle regional and local bases of power. Hoffa attacked Carey for being a "chicken" and a "scaredy cat", and blasted Carey's campaign literature as "slimy pieces of half-truths". Carey repeatedly tried to link Hoffa to organized crime, and publicized the criminal past and mob ties of Hoffa associates and business partners. On December 16, 1996, federal election overseers announced that Carey had defeated Hoffa, 52 percent to 48 percent. The vote count proceeded very slowly, leading to protests from both candidates the vote-counting rules had been violated. Carey declared victory on December 15, 1996. Hoffa, however, refused to concede, claiming 31,000 challenged ballots remained to be counted. Federal officials overseeing the election confirmed the victory the next day, Later analyses showed that Carey drew most of his support from Teamsters locals in the
East and
Deep South and
Canada, Hoffa led in the
Midwest, and the two candidates were neck and neck in the
West. But federal officials and labor movement insiders pointed out that Carey had undermined the power, income, prestige, and perks of hundreds of
local union officials through his anti-corruption drive. Carey dismissed the allegations, claiming that it was mere "serendipity" that the donation came on the heels of the payment. On June 6, 1997, the U.S. Department of Justice indicted Davis on charges of
conspiracy,
embezzlement, and violations of federal labor law for masterminding the kickback scheme. Ansara pleaded guilty to conspiracy and admitted he had used the union's money to reimburse his wife for her donations to the Carey re-election effort.
UPS strike As the financial scandal worsened, Carey faced a major strike against UPS. Carey had ordered Teamsters staff and local leaders to begin preparing for a strike against UPS a year before the contract expiration deadline. A questionnaire was sent to all Teamster-represented workers at UPS asking them what their key contract issues were, and the union made those issues the centerpiece of its negotiation strategy and strike effort. If the union could win most of its negotiating goals at the bargaining table, Carey intended to use the new UPS contract to help organize workers at
FedEx and
Overnite Transportation. Carey focused on just a handful of contract issues: That UPS create full-time positions rather than part-time positions in the future, convert several thousand part-time workers to full-time, increase part-time pay significantly, and remain in the union's multi-employer pension plan rather than create its own. UPS executives asked
President Bill Clinton to invoke the
Taft-Hartley Act, which would force the union back to work, but the President said that the conditions required by the Act had not been met. Carey and the Teamsters also undertook a sophisticated public relations effort. They depicted the union members as average people (the union's spokespeople were often rank and file Teamsters), and mobilized the public's sympathy for UPS drivers by having strikers drive their regular delivery routes to give their customers information about the strike. They also made strategic use of the Internet, using the union's Web site to issue updates and put pressure on Congress. UPS also engaged in a strong public relations effort (using full-page newspaper advertisements and pressuring customers to ask the President to invoke Taft-Hartley), but most observers as well as some UPS officials agreed that the union had the better P.R. effort. The union agreed to a five-year contract rather than the proposed four-year deal. The 50-person Teamsters bargaining committee and conference of 200 UPS locals ratified the agreement on August 19.
Re-election financial scandal and expulsion from Teamsters The donation kickback scheme which led to Carey's eventual expulsion from the Teamsters was created in July 1996. Early internal Carey re-election campaign polls showed Carey losing badly to Hoffa. Meanwhile, Davis contacted AFL-CIO secretary-treasurer
Richard Trumka and allegedly concocted a scheme whereby the Teamsters would donate $150,000 to the AFL-CIO for spurious
get-out-the-vote efforts and the AFL-CIO would pay the same amount to Citizen Action. The August 23 report also indicated that the
Democratic National Committee (DNC) had been approached by Carey campaign officials. The report did not, however, conclude that Carey knew of the transactions and referred the matter to federal prosecutors for further investigation. The Independent Review Board opened its own inquiry into the financial scandal on August 27. The scandal widened throughout September and October. Although Carey had not been disqualified from being a candidate in the re-run election, new evidence and witnesses had caused federal officials to reconsider that opinion by mid-September. As Carey kicked off his second re-election bid, a federal
grand jury began investigating whether the Teamsters' donations to the Democratic Party violated federal law. Carey repeated the charge several times over the next few months. Hoffa said all his donations had come in sums of less than $100, which did not have to be reported. On August 17, federal prosecutors said that they had evidence that the AFL-CIO may have contributed $150,000 to Citizen Action for spurious get-out-the-vote efforts in an attempt to get Citizen Action to give $100,000 to the Carey campaign, and that AFL-CIO secretary-treasurer Richard Trumka was implicated in the scheme. On September 19, Martin Davis pleaded guilty to
mail fraud and embezzlement, and conspiracy to commit fraud, to make false statements, and to embezzling funds. On October 22, the IRB accused William Hamilton, the union's former political director, of conspiring with Nash, Davis, Ansara, and others in the donation kickback scheme. Carey contended he knew nothing of the donation kickback scheme. He testified before a grand jury in August and October 1997 that he knew nothing of the kickbacks, only the donations. In late September, the re-run of the Teamsters presidential election was set for January 1998, albeit with much stricter limits on campaign contributions and greater disclosure requirements. On November 17, 1997, a federal official overseeing the Teamsters disqualified Ron Carey from seeking elective office in the union, concluding that Carey knew of and approved the donation kickback scheme. Although Teamsters for a Democratic Union continued to support Carey as he fought the disqualification, they also debated what strategy to pursue in the event that the disqualification was upheld. Meanwhile, Carey and the Justice Department signed an agreement in which a federal monitor would oversee the union's spending to prevent any additional improper expenditures. Carey sued to have the disqualification overturned, but a
U.S. district court and the Court of Appeals for the Second Circuit both refused his request. Carey's accusations against Hoffa, however, led federal officials to seek a delay in the Teamster election to investigate these charges. A 45-day delay was granted. A second delay was sought and granted in January 1998. Hoffa was cleared of all major wrongdoing in late April 1998. On November 25, 1997, Ron Carey took a leave of absence from the Teamsters, just hours before the Independent Review Board accused him of illegally using union money to fund his 1996 re-election campaign and failing to meet his
fiduciary duties. He directly contradicted testimony by his former executive secretary, who said Carey knew of the kickbacks to his campaign. Carey's attorney pointed out that the executive secretary had changed her testimony several times the past year, and that it had been undermined by testimony from another secretary and a mail clerk who both testified that the executive secretary admitted forging Carey's initials on donation approvals. However, Carey admitted that he had not adequately overseen the union's finances, and did not know that the union had spent close to $1 million in political contributions during a 10-day period in October 1996. The IRB concluded Carey breached his fiduciary duty, but that there was insufficient evidence to conclude that he approved or knew about the donation kickback scheme. ==Post-Teamsters life and death==