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Auditors Discover Mafia Ties in Longshoremen's Union Hiring Practices

 October 5, 2024

The International Longshoremen’s Association (ILA) has come under scrutiny for its long-standing connections with organized crime, particularly the Mafia.

Auditors revealed that nearly 18% of the longshoremen's union’s hires were connected to mob families, influencing hiring practices, no-show jobs, and excessive compensation packages, as the Daily Wire reports.

Despite the revelations, the union continues to exert its influence on the shipping industry, even threatening to disrupt operations unless its demands were met.

Auditors found that 1 in 5 proposed hires by the union were tied to the Mafia, with many other hires linked to other ethical concerns.

The union’s leader, Harold Daggett, is at the center of these controversies. Daggett has a history of legal trouble and was previously charged with mob-related offenses.

When shipping companies offered a 50% raise during recent contract negotiations, Daggett rejected the offer, threatening to “cripple” U.S. shipping operations if the union’s demands were not met. These demands included halting port automation and granting substantial wage increases.

Waterfront Commission's Efforts Undermined

In the 1950s, the Waterfront Commission of New York Harbor was established to combat mob activity within the ILA. However, after significant lobbying from the union, the Commission was effectively dismantled by New Jersey politicians, reducing oversight of hiring practices and port operations. The Commission had reported that many of the union’s hires had ties to notorious Mafia families such as the Genovese, Gambino, Lucchese, Bonanno, and Bruno-Scarfo crime families.

The Commission’s findings revealed disturbing hiring patterns. It reported that “special packages” with inflated pay were often directed to individuals connected to organized crime. Some of these no-show jobs paid as much as $450,000 annually, while others earned between $350,000 and $450,000. Many of these individuals performed little to no work while receiving high salaries.

Mafia Figures Benefit from Union Deals

One of the more striking cases involves Paul Moe, Sr., a longshoreman convicted of wire fraud. The Commission discovered that just a week after his conviction, his wife, who had been unemployed for 47 years, was offered a newly created $70,000-a-year position with the union’s Employee Benefit Funds. This job was not advertised and had never existed prior to her employment, raising concerns about nepotism and mob favoritism.

Another example is Peter Boragi, who earned over $350,000 a year while working questionable hours at the docks. The Commission confirmed that Boragi’s earnings were linked to his Mafia connections. The Commission also documented several other individuals receiving union support despite clear connections to organized crime.

Shipping Companies Forced into Concessions

Faced with threats from the union, shipping companies ultimately conceded to many of Daggett’s demands. These concessions came after pressure from both President Biden and Vice President Harris, who sought to avoid disruptions to the nation’s shipping infrastructure. The companies agreed to halt plans for port automation and approved significant pay raises for union members.

The influence of Mafia-connected individuals in the ILA remains prevalent. Notable figures include Stephen Depiro, a soldier in the Genovese crime family, and Anthony Pansini II, a Gambino associate, both of whom continue to benefit from union contracts and hiring practices.

Mafia Influence Over Hiring Continues

The Commission’s reports also highlighted that the mob still exercises control over who gets work at the docks, which positions are assigned, and who receives overtime. For decades, Mafia families have used their influence to determine which individuals were hired for lucrative positions within the ILA, furthering their control over the waterfront.

In one trial involving the ILA, testimony revealed that a member of the Genovese crime family, Gigante, acted as a liaison between his father and union leadership. This arrangement allowed the family to exert significant control over waterfront labor and industry. The judge presiding over the case noted that the unchallenged power of the Genovese family in ILA matters was “uncontroverted.”

Union’s Hold on Docks Strengthened After Oversight Ends

The union’s efforts to dismantle the Waterfront Commission have led to reduced oversight of hiring practices at the ports. With the Commission out of the way, the ILA now has freer reign to conduct its hiring and employment practices without fear of scrutiny. This has only strengthened the union’s ties to organized crime.

Multiple convictions involving loansharking, racketeering, and illegal employment practices further illustrate the Mafia’s deep-rooted presence within the ILA. Despite these revelations, the union remains a powerful force in the shipping industry, capable of influencing decisions at the highest levels of government.

Conclusion

The International Longshoremen’s Association’s deep-rooted connections to organized crime continue to influence its operations, despite efforts by authorities to curb Mafia involvement.

Auditors revealed that a significant portion of the union’s hires were tied to mob families, and special compensation packages allowed individuals connected to crime figures to benefit financially.

The dismantling of the Waterfront Commission has reduced oversight of these practices, allowing the union’s criminal ties to persist.

Although the union faced scrutiny, it remains a dominant force in the shipping industry, leveraging its power to negotiate favorable terms, including halting port automation and securing substantial raises for its members.