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California | Labor & Workers

UFCW Local 5's New Ponzi Scheme?
by Outraged inside Local 5
Tuesday Feb 23rd, 2010 6:30 PM
Once again, we've been provided with information "alleging" some very serious and questionable behavior by our Leadership / Executive Board at UFCW Local 5. Before we share the most recent "allegations" concerning UFCW Local 5, we thought it would be important to review how this all started.
Awhile back, we were provided with a letter
written by Ron Lind
, our President at UFCW Local 5 dated September 18, 2009. President Lind had written to John Heise, President of F.A.I.R. requesting "Contract Modifications". F.A.I.R. is the Union representing the Union Representatives and some of the Office Clerical at Local 5.

Based on many Local 5 members outrage concerning our President, Ron Lind's September 18, 2009 letter, the following thread was started at http://www.uncharted.ca

Fast forward a couple of months and we are now in the month of February 2010. We were "blown away" when we heard these most recent "rumors" / "allegations" concerning UFCW Local 5.

According to numerous insiders at UFCW Local 5, President Lind and Local 5's Executive Board have "allegedly authorized" a "creative borrowing scheme" wherein Local 5 will "allegedly" borrow money from Local 5's "Strike Fund" to pay for the Greedy Scheme previously exposed with F.A.I.R., detailed in President Lind's 9/18/09 letter to Mr. Heise.

Our sources within Local 5 tell us that once Local 5's sub-office in Vallejo, Ca. (formerly UFCW Local 373r) is sold, then those monies received from that sale are "allegedly" required to immediately "pay back" Local 5's Strike Fund. If these allegations are correct, this is absolute insanity!

With Contract Negotiations right around the corner in 2011, one would think that we shouldn't be "raiding" our "Strike Fund" to pay for "additional perks" that Local 5's staff currently enjoy, which ultimately is paid for by our DUES MONEY!

How much money did Local 5 "allegedly borrow" from our "Strike Fund" to pay for their Greed? Has Local 5 finalized the "Contract Modifications" with F.A.I.R.? If so, what was the outcome? If not, why not? What "if" the Vallejo office doesn't sell anytime soon? How will Local 5 members know "if" and "when" their "Strike Fund" will be paid back? How much money do we have in our Local 5 "Strike Fund"?

These are just a sample of numerous questions Local 5 members should be asking their Local Union Leadership / Executive Board, including demanding that these questions be answered immediately!

If these "allegations" are correct, every Local 5 member should be demanding some answers as to the "legality" of any action authorized and or taken by UFCW Local 5's Executive Board / President Ron Lind concerning any "Strike Fund" monies "allegedly" that may have been used "improperly" in violation of Article X, (Local Union Funds) Section B. in UFCW Local 5's Bylaws.

Article X (Local Union Funds)
Section B. "The Local Union shall maintain a Strike Fund, which shall be separate from all other funds of the Local Union and shall be used for the purpose of supplementing members while on strike or lockout. The Executive Board shall determine the manner in which the Strike Fund is funded."

Another bit of information that was provided concerns allegations that Local 5's Executive Board recently authorized salary increases for Local 5's President Ron Lind and Secretary Treasurer, Tim Hamann.

Once again, "if" these allegations are correct and in light of the recent "hefty" Dues Increases at UFCW Local 5, including the recent allegations of "raiding" our "Strike Fund", there is some serious "Bull Shit" taking place within our Local Union.

Speaking of UFCW Local 5's recent Dues Increases, here is a letter from our President Ron Lind, notifying the members at UFCW Local 5 of our Dues Increase.

Followed by this thread at http://www.ucharted.ca pertaining to this same topic.

To get a better understanding of the "allegation" concerning the possibility of recent salary increases for UFCW Local 5's President, Ron Lind (former President at UFCW Local 428) and UFCW Local 5's (recently appointed) Secretary Treasurer, Tim Hamann (former President at UFCW Local 120). We need to review their respective salary, pre merger and post merger in order to obtain a better understanding how their salaries have improved over the years.

For those individuals who may not be aware of it, UFCW Local 5 was created following the merger of seven (7) Bay Area Local Unions (Local's #120,373r,428,839,870, 1096 and 1179) effective January 1, 2007.

To access LM2 information here is the link:
http://erds.dol-esa.gov/query/getOrgQry.do

Pre Merger:

1. UFCW Local 428 LM2 (File #027-504)
2. UFCW Local 120 LM2 (File #047-332)

1 (a). Former UFCW Local 428 President Ron Lind's Salary for the following years:

Pre Merger:

2006= $100,700.00 (gross) + $20,550.00 (disbursements) = $121,250.00 (total)
2005= $98,800.00 (gross) + $14,315.00 (disbursements) = $113,115.00 (total)
2004= $99,559.00 (gross) + $8909.00 (disbursements) = $108,468.00 (total)

1 (b). Former UFCW Local 120 President Tim Hamann's Salary for the following years:

2006= $101,023.00 (gross) + $7,014.00 (disbursements) = $108,037.00 (total)
2005= $ 86,562.00 (gross) + 6,251.00 ( disbursements) = $92,813.00 (total)
2004= $ 88,577.00 (gross) + 5,042.00 (disbursements) = $93,619.00 (total)

Post Merger:

2. UFCW Local 5 LM2 (File #543-632) / UFCW Local 5 Created Effective 1/1/07

2(a). UFCW Local 5 President Ron Lind's Salary for the following years:

2009= ***** Pending LM2 Filing *****
2008= $139,808.00 (gross) + $37,524.00 (disbursements) = $177,332.00 (total)
2007= $127,500.00 (gross) + $34,699.00 (disbursements) = $162,199.00 (total)

2(b). UFCW Local 5 Secretary Treasurer Tim Hamann's Salary for the following years:
(Prior to Tim Hamann's recent appointment (2009) as Local 5's Secretary Treasurer, Mr. Hamann was an Area Director.

2009= ***** Pending LM2 Filing *****
2008= $92,250.00 (gross) + $14,821.00 (disbursements) = $107,071.00 (total)
2007= $86,830.00 (gross) + $12,936.00 (disbursements) = $ 99,766.00 (total)

UFCW International Union:

***** Additionally, it is important to note that UFCW Local 5 President Ron Lind, is also a UFCW International Vice President (recently appointed in 2009). As a I.U. V.P., President Lind receives a "stipend" in the amount of $20,000.00 per year.

It is important to keep in mind that whatever UFCW Local 5's President Ron Lind, earns as his yearly salary at UFCW Local 5, you must also"add" and additional $20,000.00 dollars ( President Lind's UFCW I.U. / V.P. Stipend) to his Local 5 yearly salary. The combined figures will provide you with President Lind's total yearly salary.

Here is the applicable UFCW International Constitution language that applies:

Article 8 (International Executive Board)
As amended and revised at the 6th Regular Convention 2008 (pages 4&5)

(C) The International Union shall pay the authorized expenses of the International Executive Board in connection with its meetings or other authorized work performed by it. Such expenses shall be paid for on a reimbursement and/or per diem basis, and, in addition, a stipend shall be paid to those International Vice Presidents not in the primary employment of the International Union.

Keeping in mind that these are very serious "allegations" and Local 5 Members have a right to know exactly how our Local Union Leadership / Executive Board are spending our Dues Money!

We welcome and encourage our President, Ron Lind and our entire Executive Board at UFCW Local 5, to respond to these serious allegations and finally "set the record straight" with the entire membership here at UFCW Local 5.