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From the May-June 2006 issue of Union Democracy Review #162
Battling corruption in United Transportation Union
Two former international presidents of the United Transportation Union were convicted on federal corruption charges in 2004, sentenced to two years in jail, each forced to forfeit $100,000 in racketeering proceeds, and fined $10,000. One is Byron Boyd, Jr., who was removed from office; the other was his immediate predecessor as president, Charles Little. What makes this not a familiar yet dead story but a continuing one is this: Roger Griffeth, a former assistant president and an announced candidate for UTU international president in the 2007 election, has charged that Paul C. Thompson, the incumbent UTU president who replaced Boyd, tried fraudulently to make him eligible for disability benefits under the union pension plan. Thompson had been assistant president under Boyd and served as his defense representative when Boyd was facing disciplinary charges before the executive board.
Boyd and Little had taken advantage of the federal law which permits railroad workers far more generous payments that standard workers compensation laws, making lucrative legal fees available to lawyers. Injured rail workers are referred to lawyers who are enrolled in the union's Designated Legal Counsel Program.
Boyd and Little were charged with extracting at least $477,000 in kickbacks from participating lawyers. The racket paid off so heavily that the Houston Chronicle could report that Boyd admitted that he had promised $100,000 and a new pickup truck to persuade Little to resign as UTU president in 2001 so that Boyd could replace him.
Just before Boyd pleaded guilty on March 11, 2004, the union executive board suspended him and installed Thompson.
Thompson proceeded to do Boyd a remarkable favor. Signing himself as "International President," Thompson wrote a letter to Boyd recording that "you are medically disqualified from your position as Presidentcand may no longer perform your duties effective March 10, 2004." No mention that Boyd was facing conviction on corruption charges and had already been suspended for the duration of his term. Thompson recommended that Boyd contact the Railroad Retirement Board about possible benefits under the plan's disability provisions. Within weeks, Boyd was awarded monthly disability annuity payments of $3,250.
But things got stickier and he never got the money. In November 2004, Thompson informed Boyd that his pension benefit would be limited to a single early retirement payout of $423,409 and he would not be entitled to disability benefits. Thompson and Boyd, who were once so close and cooperative, seem to have fallen out. Roger Griffeth says a rift was caused by a pre-sentencing affidavit by Boyd stating that Thompson had been involved in the maneuvering over the kickbacks. Thompson says it was the Pension Administration Committee (made up of Thompson and the other two top UTU officers.) that rejected the disability claim. Boyd is now suing for at least $356,000 under the UTU Pension Plan plus attorney and court fees. In support of his demand he cites the March 2004 letter from Thompson.
In internal charges, Griffeth accused Thompson of violating his fiduciary responsibility to the union by helping Boyd to commit fraud by getting disability benefits he was not entitled to. The UTU Board rejected the charges and refused to order a trial.
For more on the UTU, search this site.
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