Virginia Port Union Official Resigns After Audit Finds Unauthorized Fund
The business agent for one of six dockworker union offices in the Port of VirginiaÌęhas resigned and will be removed from other union posts he holds after an internal audit found an âunauthorized and previously undisclosed account,â the portâs top labor official confirmed April 19.
Robert J. Smith III, business agent-financial secretary of International Longshoremenâs Association Local 970, resigned after the audit found that âunion funds were deposited and withdrawn allegedly for nonunion purposes,âÌęThomas Little, international vice president for ILA in Hampton Roads,Ìęwrote in an e-mail.
Local 970 has not filed any financial reports with the U.S. Department of Labor for 10 years, according to a spokeswoman.
The amount of money involved could be as much as several hundred thousand dollars, sources familiar with the matter said.
The account was discovered within the past week, and the Norfolk Police Department is investigating. The money that moves in and out of Local 970 comes from union membersâ dues and is used to pay forÌęexpenses such as rent and salaries of union officers.
âILA Local 970 is required to file annual financial reports with the U.S. Department of Labor,â wrote Joanna Hawkins, a department spokeswoman. She added that Local 970 has not filed any of the required reports from 2006 through 2015.
âIt is unusual for a union to not file for that length of time,â Hawkins wrote in a follow-up e-mail. âTo date, there have been no criminal or civil actions against this union.â
The last filing with the Department of Labor by Local 970 was its fiscal 2005 report, received April 12, 2006, department records show. It reported a membership of 559, assets of $598,507, liabilities of $1,561, receipts of $472,546 and disbursements of $378,491.
Smith, who signed the report as treasurer, received a gross salary of $99,683 for the year, along with âdisbursements for official businessâ of $5,281, for a total of $104,964.
Total officer disbursements for the year came to $161,456, the 2005 report says.
Little, the vice president, oversees about 2,100 dockworkers in the port, who are represented by six union âlocalsâ or units, including Local 970, made up of dockworkers who load and unload ships that call on the port.
They, in turn, are part of the New Jersey-based International Longshoremenâs Association, a union whose members includeÌęan estimatedÌę15,000 dockworkers at ports from Maine to Texas.
Smithâs office is at the ILAâs complex on Princess Anne Road in Norfolk. Little said Smith will be removed from other positions he holds within ILA.
Those positions include serving as a âlabor trusteeâ on the board of the Hampton Roads Shipping Association-International Longshoremenâs Association Pension and Welfare Funds, which is funded by deductions from dockworkersâ pay and used to cover health and dental benefits, among other things. Those funds are unrelated to those involved in the pending investigation.
Local 970 members are paid by port employers.
They include Virginia International Terminals, the Virginia Port Authorityâs operations affiliate, and Ceres and CP&O, stevedoring companies that have a contract to hire workers who load and unload ships at Norfolk International Terminals and Virginia International Gateway, the portâs two largest container facilities.
âLocal 970 and the International Longshoremenâs Association are taking every action necessary to determine the extent to which membersâ funds have been misappropriated,â Little said.
He said âthis unfortunate situationâ will not interfere with the ILAâs commitment to serve the Port of Virginia.
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