Legal updates, new research, interesting ideas for students-- past and present-- of LER Prof. Michael H. LeRoy, University of Illinois at Urbana-Champaign. Welcome, also, to friends who are curious about employment and labor law.
Saturday, October 17, 2015
Two Corporate Leaders Face Federal Indictments … and the Phony Meme on Union Corruption
You don’t want to be Barbara Bennett-Byrd right now. Or
ever. She worked as an executive for SUPES, a highly touted private-sector educational
consulting firm. When she was hired to be the CEO of the Chicago Board of
Education, she received secret promises of $2.3 million in kickback money from
her SUPES bosses. To get the money, she steered a $20 million no-bid consulting
contract to her former employer. SUPES, by the way, has an all-star board of
trustees that included Bruce Rauner at the time that SUPES won the grant.
Bennett-Byrd pleaded guilty to federal corruption charges this week. She will
do a lot of talking to U.S. attorneys in the comings weeks and months. You also
don’t want to be Don Blanckenship. He’s the former CEO of a large coal mining
company, Massey. He is on trial for violating safety rules that led to an
explosion that killed 29 miners in West Virginia. He’s the same CEO who bought—that
is, contributed to— a state supreme court justice for $5 million. That justice
cast the deciding vote in a civil lawsuit that originally led to a $50 million
judgment against him. He made a ten-fold return on that investment; but now,
tape recordings of his meetings with company safety managers show that he
ordered officials to bypass safety procedures. He faces 31 years. What makes these two stories so
interesting is the unions who dealt with these CEOs—the Chicago Teachers Union,
and United Mine Workers—are frequently portrayed by Gov. Rauner and Blanckenship as corrupt. The
facts show otherwise. See here.
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