NCJ Number
96193
Date Published
1985
Length
17 pages
Annotation
This examination of organized crime's involvement in the legitimate economy argues that corrupt unions may be the unique instrument for the exertion of such control and that it may be optimal for labor racketeers to operate a cartel rather than coerce all competitors from the market.
Abstract
The article classifies racketeer involvement in legitimate enterprises on a spectrum, with passive investments on one end, businesses complimentary to the rackets in the middle, and racketeer control of a market industry on the other extreme. Research suggests that corrupt labor unions have played a dominant role in helping racketeers achieve control over an entire industry because they are a perfect tool for disciplining firms that will not follow the racketeers' rules. It is in the fresh produce, garment trucking, and garbage collection markets, all characterized by small enterprises and low-skills labor, in which racketeers through union powers have acquired greatest control. Certain legal risks exist when racketeers try to create a monopoly through intimidation. An alternative is racketeer instigation and taxation of an industry-wide cartel. The article explores the benefits of such cartels, as well as relationships within the Mafia and between it and other criminal groups. 23 footnotes and 17 references.