Second Hanley to Resign Over Criminal Charges

The son of Edward T. Hanley, the disgraced former President of the Hotel Employees & Restaurant Employees Int’l Union, has reportedly settled charges of embezzlement and misuse of union funds. Thomas Hanley has resigned as HERE’s director of organization and as president of Local 1 in Chicago. Kurt Muellenberg, HERE’s monitor under the 1995 consent agreement with the Justice Dep’t, confirmed that Hanley’s resignation was stipulated under an agreement settling various charges of misconduct. But, Muellenberg refused to give further details until U.S. Dist. Judge Garrett E. Brown has reviewed the agreement.

However, a government source familiar with the agreement told the Bureau of National Affairs that Hanley agreed to relinquish his two positions and pay a $25,000 penalty. But Hanley would be able to retain his HERE membership (thus his pension), and after Aug. 31, 1999, he could participate in HERE without restriction the source said. Hanley’s ouster comes a month after his father resigned as general president under similar circumstances (see UCU 1.4 7/27/98). There was no mention of criminal prosecution against either Hanley. But a May 20 statement U.S. Atty. for the Dist. of N.J. noted that charges were pending against union bosses including Thomas Hanley for “embezzlement of union funds and a scheme to defraud the members of the union of money and property.” [BNA 9/10/98]