Labor racketeering can be defined as the illegal use of unions and authority for self-interest. Union labor corruption was perpetrated by, performed in collaboration with, or under the direction of organized criminal syndicates. The beginning of the 20th century set the foundation for labor racketeering and became a law and societal concern (Jacobs, 2020). Until the late 1970s and early 1980s, there was no systematic governmental or enforcement agencies effort to mitigate the issue (Jacobs, 2020).
During prohibition, criminal groups chose to generate profit from selling illicit spirits, which maintained the alcohol demand and earnings high. When prohibition was abolished in the 1930s, the mafia’s advanced business-running methods remained (Jacobs, 2020). The most potent groups turned their focus away from alcohol to business, including narcotics, gambling, and prostitution (Jacobs, 2020). However, these were not the only money-making businesses that contributed to the profit diversification. Among other beneficial businesses for the organized crime was labor racketeering through the control of labor unions.
There are many reasons why gangs prefer labor unions to other kinds of unions. For example, it can be evident from their choice to control the Teamsters and International Longshoremen’s Association (Jacobs, 2020). With the sources of such unions, members of Cosa Nostra could easily access all kinds of legitimate businesses, including waste management, construction, or demolition. Moreover, they had easy access to healthcare and pension funds from the unions. These legitimate businesses offered them ways to not only traffick illicit substances or people but also cover up their actions (Jacobs, 2020). Among other crimes, the organized groups performed extortions or threatened employers, and solicited or received bribes.
Hence, it can be seen that organized crime has always tried to control local businesses and expand their influence with the help of diversification of their profits. Among the main activities of gangs were prostitution, drug trafficking, gambling, and labor racketeering. Labor unions were beneficial to organized crime due to the sources they had. Such unions gave mobsters access to legitimate demolition, construction, and waste management businesses.