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A 1930s Law Enables Workers’ Compensation Czar Alderman Ed Burke to Circumvent and Violate the Shakman Decree

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Political Hacks Run Chicago’s $100 Million a Year Workers’ Compensation Program

Instead of professional employees managing Chicago workers’ compensation, only Alderman Ed Burke’s handpicked political appointees administer the program. Burke has served as Chairman of the City Council Finance Committee for 31 of his 47 years as alderman. According to Burke’s own bio, he is the man who, “holds the city’s purse strings and is responsible for all legislative matters pertaining to the city’s finances, including municipal bonds, taxes and revenue matters.” The problem with Burke’s aforementioned statement is that Burke is using more than city council legislation to oversee workers’ compensation. Burke’s patronage workers administer the entire workers’ comp program. Furthermore, given Chicago’s dire financial problems, if I were Burke I would not brag about controlling the city’s purse strings for 31 years!

Municipal Code Section 2-152-430 states, “The bureau of workmen’s compensation shall be composed of such persons as may be designated or appointed by the chairman of the committee on finance.” Finance Chairman Burke let’s his website readers know that the Chicago municipal code gives him sole authority to administer the workers’ compensation program, but Burke doesn’t tell his readers that an antiquated law wrongfully entitles him to become the workers’ compensation czar. Currently Burke is the only person allowed to approve or disapprove disability pay and medical expense payments for city employees.

There is a zero chance of Burke hiring professional workers’ compensation employees to optimally manage Chicago’s $100 million a year workers’ compensation program. Burke’s handpick employees are mainly political insiders, or they have close ties to political insiders. Burke is an old school, “We Don’t Want Nobody, Nobody Sent” politician. Burke selects employees for his staff on the basis of their political clout or political bloodlines, not on their professional qualifications.

Burke hiring and firing his staff for political reasons is all seemingly legit because the salaries of workers’ compensation employees are funneled through Burke’s finance committee. There is no debate here. Aldermanic and city council committee staff are Shakman exempt employees. However, there are legal questions about the municipal code that need answers: Does Chicago municipal code 2-152-430 that provides Burke with the authority to hire workers’ compensation employees circumvent and violate the Shakman Decrees that the City of Chicago and plaintiff Michael Shakman agreed to in federal court? Do the municipal codes 2-152-430 , 2-152-440, and 2-152-450 violate the venerated separation of powers principle for which all local, state, and federal follow?

This is where Burke and the city run into trouble. Burke’s finance committee has no business running workers’ compensation. Burke is a legislator whose main job is to write, amend and repeal city ordinances. The workers’ compensation program belongs in the executive branch of government since the executive branch is charged with managing city employees and programs. In all other major U.S. cities, the executive branch oversees workers’ compensation (see table below). As a legislator Burke should only be allowed to check and balance workers’ compensation through the budgeting process, committee hearings, and city ordinances. Chicago would be no different than other cities if Chicago’s 80 year municipal code had not allowed finance chairman Burke to improperly conduct business for the executive branch.

This won’t be the first time public officials were caught for improper Shakman exempt job classification for government positions. The Illinois Department of Transportation (IDOT) wrongfully classified hundreds of jobs as “staff assistants” so that politicians could fill staff assistant jobs with political appointees. The improperly classified staff assistants did little or no work related to their staff assistant’s job title and job description. Because of IDOT’s wrongful job classifications, both Governor Rod Blagojevich and Governor Pat Quinn hired politically connected job seekers for IDOT staff assistants regardless of the job seekers’ qualifications or abilities. The Chicago municipal code has allowed Burke to do the same. Chicago municipal code has turned obvious Shakman non-exempt jobs into Shakman exempt jobs by improperly budgeting workers’ compensation for a legislative committee instead of the city’s executive branch of government. Other than policy making positions, the type or nature of workers’ compensation employees work is that of Shakman non-exempt duties. And Burke’s workers’ compensation employees have little or nothing to do with financial legislation that Burke’s committee handles. Since the code requires the city council finance chairman to select the workers’ compensation staff, Burke assumed he was free to hire employees as his handpick political hacks. The archaic municipal code stopped the city’s Human Resources Department from hiring the most qualified and abled employees from managing Chicago’s workers’ comp. Chicago’s municipal code permitting Burke’s finance committee to circumvent Shakman is not about finding a successful loophole to avoid Shakman, rather it’s about the municipal code and Burke’s blatant and wanton violation of Shakman and separation of powers.

Table

To view the department that each city uses to manage its workers’ compensation, click on the department listed in column two on the right hand side of the table. All major U.S. cities’ executive branch of government administers its workers’ compensation program except Chicago which Burke’s legislative committee supervises.

Note

San Diego and Dallas each have separate risk management departments. Risk management is part of Philadelphia’s Finance Department. San Antonio’s risk management is in under both its Finance and Office of Management and Budget departments. Chicago’s Risk Management is currently in the Finance Department. Chicago’s Finance Department is different than Burke’s city council finance committee. Ideally Chicago’s workers’ compensation would move from Burke’s legislative committee to the city’s Human Resources or Risk Management department which are in Chicago’s executive branch of government.

Once Chicago’s workers’ compensation program moves from the legislative branch of government to the executive branch of government, then the designation of workers’ compensation employees will change to the proper classification of Shakman non-exempt, and the city will have to hire the most qualified and abled employees to run the program. A few policy making jobs at the top of the workers’ compensation organizational chart may remain classified as Shakman exempt.

Complaint

Alderman Ed Burke’s has appointed numerous employees to run Chicago’s workers’ compensation program. Burke’s hiring of workers’ compensation employees are Shakman violations. Chicago Municipal Code Section 2-152-430 is 80 years old, predates the Shakman settlements, and authorizes the City Council finance chairman to hire all workers’ compensation employees. However, Chicago’s Municipal Code Section 2-152-430 does not have the power or authority to supersede the Shakman Decrees. Burke’s workers’ compensation hirings violate Shakman because Burke’s workers’ compensation exempt jobs should have been classified as Shakman non-exempt jobs based on the type of work that the workers’ compensation employees are doing (see attached).

Alderman Burke is a legislator whose job is to write, amend and repeal city ordinances. The workers’ compensation program belongs in the executive branch of government as it is with every major city except Chicago. As a legislator, Burke is not entitled to run a City of Chicago bureau, department, or division as he is doing. Because Alderman Burke is fulfilling the executive branch’s duties and responsibilities, he is violating the separation of powers principle that all city, state and federal governments follow. As a legislator Alderman Burke should only be allowed to check and balance workers’ compensation through the budgeting process, committee hearings, and city ordinances.

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Seeking Chicago Employees Who Have Workers’ Compensation Horror Stories

Mayor Emanuel’s Workers’ Comp Unjustly Denying Disability Pay and Benefits

Mayor Rahm Emanuel said, “We are aggressively pursuing $15 million in savings from workers’ comp.” Emanuel added, “I know that it (workers’ compensation) needs reforms.” Emanuel did not tell the public how his administration is saving $15 million a year in workers’ compensation, nor has he provided details of his workers’ compensation reforms. Since Emanuel won’t tell you about his dirty secrets and dirty dealings, I will. Emanuel is saving tax dollars by taking money away from a significant number of city workers who are deserving of their disability pay and benefits. Emanuel’s saving plan is to deny as many city employees of their disability pay and benefits as possible, regardless of whether cutting off city employees’ disability pay and benefits is justified or not. Emanuel’s workers’ compensation department is now operating like greedy health insurance companies. The goal is to deny both legitimate and illegitimate claims for the sake of reducing expenses and increasing the bottom line.Rushing mending city workers into lower paying jobs is another way Emanuel’s administration is meeting its goal of saving $15 million a year. The city is involuntarily forcing injured or ill city workers into job retraining without giving city workers enough time to fully recuperate and return to their old jobs. The city doesn’t consult or inform employees of their vocational retraining; instead the city sends injured employees to a contractor who performs job retraining on behalf of the city. Job retraining for injured workers sounds great, but when the city does it without first consulting employees or providing them with informed consent, it smacks of manipulation and deceit.

The most damning evidence of Emanuel unjustly denying disability pay and benefits are his own words. Emanuel said, “We are aggressively pursuing $15 million in savings from workers’ comp.” Emanuel made a priori decision that his administration was going on the offensive to cut $15 million without first determining where or how he could save money. Once Emanuel made the decision to cut $15 million, his hatchet men and women started to deny some city employees’ of their legitimate disability claims.

Emanuel has a reputation for being an obnoxious and aggressive politician, but usually he doesn’t come out and directly say he is planning an attack like he did with city employees’ receiving workers’ compensation. Emanuel purposely prefaced his actions with the word “aggressively” in his statement, “We are aggressively pursuing $15 million in savings from workers’ comp.” The word aggressively means, “Likely to attack or confront. or pursuing one’s aim’s forcefully.” Emanuel used his authority as mayor to forcefully save $15 million from workers’ comp regardless if it was justified or legal.

The way Emanuel proposed and spent Chicago’s yearly budget also led to the unjust denial of workers’ comp claims. Emanuel creates his budget the year before the city actually spends the money. For example, Emanuel submitted his 2016 budget to the Chicago City Council in 2015. When Emanuel decided to cut $15 million from workers comp, Chicago’s Workers Compensation Division was then forced to deny $15 million in claims so as not to exceed its allotment of money in Emanuel’s budget. Legitimate workers’ comp claims were in jeopardy the moment Emanuel reduced the Workers’ Compensation Division’s budget.

Past and Present Workers’ Compensation Investigations

Federal agents have investigated Chicago workers’ compensation two times before. The last time a federal grand jury subpoenaed six years of workers’ compensation records was in 2012. The previous federal investigation occurred in 2006 when the feds were looking for a connection between the Chicago “clout list” and workers’ compensation claims. FBI agents originally discovered the clout list on the City Hall computer of Robert Sorich, who was an aide to Mayor Richard M. Daley. About 60 city employees either plead guilty or were convicted in Chicago’s hiring and job rigging scheme. Almost one in five names on the clout list received workers’ compensation benefits.

Emanuel himself was implicated in Chicago’s hiring and election rigging scheme at two federal court trials. Federal Court witness Donald Tomczak testified that his patronage army consisting of 225 city employees campaigned to elect Emanuel to the U.S. Congress. Another federal court witness said Emanuel went out for beers with the illicit patronage workers after they campaigned for him. Emanuel’s assertion that he wants to clean up workers’ compensation is ridiculous given his previous involvement in its corruption.

Alderman and City Council Finance Committee Chairman Ed Burke is the sole person in charge of processing and settling workers’ compensation claims. Burke is the man who greases and fuels the Chicago machine. At age 24 Burke took over as ward committeeman when his father died in 1968. The following year he became an alderman. Burke has held his two positions as committeeman and alderman for nearly 50 years. Burke has close to $15 million dollars in campaign funds for two jobs that pay a combined $110,000.00 a year. Many of Burke’s campaign contributions are from city contractors, city employees, lobbyists, or other people who have business with the city. Burke used his political connections and organization to get his brother Daniel elected and reelected as a state rep since 1991. Burke’s wife Anne went from law school to an Illinois Supreme Court Justice in 13 years on the strength of husband’s political muscle.

Having Alderman Burke in charge of workers’ compensation and guarding taxpayers money is like having the fox guard the hen house. In 2006 Mayor Richard M. Daley’s chief of staff blamed Burke for city patronage employees exploiting workers’ compensation. There is a major problem of having Mr. Chicago politics running workers’ compensation. Burke in a position to reward the machine’s precinct workers with workers’ compensation when necessary and punish those who dare to challenge the Chicago machine. If another alderman and Burke ally such as Alderman Patrick O’Conner goes to Burke and says keep my precinct caption on workers’ compensation, you can count on Burke keeping O’Conner’s precinct captain on workers’ compensation for as long as O’Conner wants. When it comes election time, O’Conner will return the favor by supplying campaign contributions and precinct workers to help Burke’s wife and brother get reelected to the Illinois Supreme Court and Illinois House of Representatives.

In 20012 Alderman Burke denied Chicago’s Inspector General Joe Ferguson access and oversight of workers’ compensation claims. The Inspector General’s authority to investigate workers’ compensation hovered over today’s city council meeting (Feb..10, 2016) like a plague. The city council voted 25 to 23 to reduce the power and scope of the inspector general. Burke and the rest of his old guard used their influence to protect themselves and workers’ compensation from the prying eyes of the IG. Burke is truly untouchable but for all the wrong reasons.

I have been a thorn in the machine’s side. My website is one example of how I stick it to the machine when I should. I’m also CAN cable TV show producer. I have hosted many cable shows which have exposed Chicago corruption. The machine is using my unfortunate injuries to get me fired from my city job as a plumber. Had I been one of the machine’s good fellas, my workers’ compensation would continue without question. I also have a wife and five children to support.

Help Yourself, Help Me

It’s virtually impossible for one of us to take on the machine’s corrupt policies and practices. If we join together and tell our stories, we may have a chance to right the wrongs that have been done to us. If you are a City of Chicago employee who has been unjustly denied workers’ compensation or benefits, please contact me at workerscompensationrights@gmail.com . I will keep your information strictly confidential unless I have your permission to share your information with attorneys, investigators, or other recognized agencies or authorities.

Links:

http://chicago.suntimes.com/news/7/71/793847/rahm-determined-to-save-15-million-from-workers-comp-under-fed-scrutiny

http://chicago.suntimes.com/chicago-politics/7/71/1316321/council-poised-approve-watered-inspector-general-ordinance

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Pat “Daley” Thompson 31st Ward Rahm’s replacement

Pat thompson Ballon Head Chicago 31st Ward Rahm Emanuel is hiding in Cuba and the Chicago media is keeping it quiet. Many Chicago Alderman have circled around Patrick “Daley” Thompson to replace embattled Rahm Emanuel. The noose is slipping around Rahm’s neck and he needs to return soon. The folks in the 44th ward are cutting deals and Rahm is none the wiser. Rahm’s is not able to raise the money he once could and is counting on short term memories from taxpayers. Rahm is also putting his media queen Joe Ferguson on boards despite his major failures. As long as they have the Sun-Times, Rahm might have a chance. The biggest problem is a major group of protests that make Rahm look like a hurt dog. Chicago is the worst shape ever. Is Pat Thompson the answer? Does he have the balls to raise the taxes again in a few short months? So far 15 Alderman are backing him up. WOW. Will “Balloon head” have the moxie to overthrow Rahm? Let’s see.

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Chicago Dumps Top Cop McCarthy give job to John Escalante

Bill Bresnahan Final.jpg Many Chicago Citizens are relieved McCarthy is fired from the City of Chicago as top cop. McCarthy was not liked by the rank and file, but he covered up more wrongdoing than any other Police Superintendent I ever knew. He always had a big posse of goons with him when he went to the Chicago Personnel Board and entered in the private rear doors. Even Joe Ferguson, the inept Inspector General had to wait in the entrance area where all the other peons waited. McCarthy has clout so he will end up with a contract to keep his yap shut. His new young wife is from a clout family, so he will be fine.
In the picture is the interim Chicago Police Superintendent John Escalante. He will not get the Superintendent position because he has little clout. In the Picture with John is City of Chicago ex-cop William “Butch” Bresnahan. Bill has been floating around department to department as the police presence Daley and Rahm wanted after Hired Trucks. In this picture Bill was running to the cameras again despite the fact he docks workers for exercising their first amendment rights. Bill was working the sewer pumps to empty a marsh for the police in this picture. Bill is currently the top sewer guy at the Department of Water Management. According to unnamed sources, Bill wanted a top position at the Police Department but was passed over. Some folks are never happy, Sewer pays real good. Good luck to John Escalante, you will need it.

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Chicago Wants Rahm Emanuel to Step Down Now Cops execute Black Kid

Chicago Negroes are having buyer’s remorse electing a very corrupt Mayor Rahm Emanuel. His shallow words fail to comfort, a Chicago Police Officer riddle a very young man with bullets. According to three cops at the Steak Sandwich shop on the Northwest said, “The kid was a fucking nigger, too bad”. Nice opinion from a few white cops, eh? The irony of the entire event, is Chicago Cops will make a fortune in overtime to control the mess they made. Most blacks will accept the white man’s actions as par for the course. I wonder when Blacks will rise up, elect their own Black Mayor, and then get those nice gravy jobs at the City. For far too long, the Chicago Media has covered up for the actions of a few cops. In fact, most cops lie and look the other way when one of their own breaks the law. Most cops figure they are doing the same thing at one point or another. I put another FOIA into the Chicago Police Department about Chicago Detective Mullane and will have a show on him. Funny how that dash cam disappeared. Chicago Super Phony Joe Ferguson has cover-up for dirty cops for a long time. Joe just got his just desserts. What comes around goes around. Last time, Chicago does not promote the best cops, it politics as usual. Some you get lousy results. More stories when I feel better. Make sure you watch this video and learn. Laquan McDonald, rest in peace.

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Lori Schlossberg, Jay Stone, Ilana Feketitsch at Alderman Stone Invocation

DSC_0223 12.jpg On April 15, 2015, the City of Chicago had an Invocation for the late Bernard Stone. It has taken me a while to publish this on Chicago Clout because I want to have reflection on the life of Alderman Stone. I thank Jay Stone and his sisters for their patience. I made fast friends with Mr. Stone. I enjoyed my lunches with Jay and Berny in Lincolnwood. Berny always returned my calls and always treated me great. It sometimes takes a while to figure out what a person’s life has meant to you. Since I gave myself some time to ponder, I smile. When I think of Berny, I just crack up. Still. He knew more about politics and insider information that anyone I ever met. He was going to write a book and I wish he did. He told me so many stories about people in office, I could write that book. I never wrote about these tales because it would have been better coming from him. Berny, Jay, and myself would laugh and laugh. I still see Berny now and always will. The world is a better place because of Berny. Chicago is a better place because of Berny. Thanks for everything Berny, thanks for being yourself. Thanks for your son’s friendship and wisdom. Patrick McDonoughBernard Stone Invocation April 15 2015.pdf

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Brian P. Tierney Department of Water Management Update Prostitution Charges

Brian Tierney City of Chicago.jpg
According to insider information, the Inspector General was told to back off investigations that include high profile city workers. It is no secret, many investigations are snuffed out because Joe Ferguson got his ass handed to him when he went after clouted people.
One of the toughest stories on Chicago Clout was the arrest by Brian Tierney, a clout heavy hoisting engineer, employed by Rahm Emanuel at the Department of Water Management. One employee said, Your a motherfucker for ratting out Tierney, he just wanted his dick sucked”. If you look at prior stories, Brian was charged with 720-5/11-14-A Prostitution. Many Chicago City workers are upset because they pay for sex and do not see anything wrong with visiting a whore. On or about May 29, 2015 Judge William R. Jackson gave 60 hours of community Service. I think Brian needed to go back to court on August 4, 2015 to follow-up. Most folks would agree, that Brian’s conduct is “conduct unbecoming a city employee”. Insiders said Brian had to see Billy Bresnahan a water department supervisor and then things disappeared. On June 29, 2015, a report was filed with the Chicago Inspector General’s office, and an employee by the name of “Jeff” refused to give his real name or entire name. He also refused to spell his name and refused to get a supervisor. The Chicago Inspector General expect cooperation from employees, but the rules do not apply to these rats. I made a complaint to a higher ranking I.G. employee that identified himself and conducted himself in a professional manner. If anyone is suing the City of Chicago make sure you contact me. I can help your case. Joe Ferguson should be fired and removed from office. Inspector General Khan would be a great replacement. We will keep following up with this case. So far the City of Chicago has still covered up for Paul Hansen and his DUI. Thanks Joe, you failed.

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More Pope on Department of Water Management Payroll Sun-Times Story

Rahm Emanuel sidesteps Shakman Rules again to reward friends with taxpayer money.
Former Ald. John Pope (10th) didn’t miss a beat or a buck before landing on his feet after losing his runoff April 7 to challenger Susan Sadlowski Garza by just 20 votes.
Pope is back where he started — in the City Hall bureaucracy — as a $116,856-a-year deputy commissioner of the Department of Water Management, which has been at the center of the Hired Truck and city hiring scandals.
The hiring of Pope comes as Mayor Rahm Emanuel has talked about scouring the budget for every available dollar before raising taxes to solve the combined, $30 billion pension crisis at the city and public schools that has dropped Chicago’s bond rating to junk status.
The former alderman started his new job last week. The position had been vacant since March 2013.

“He is assigned to the Bureau of Water Supply and will be working on the administration and staffing of the two water filtration plants and DWM’s other pumping facilities,” Water Management spokesman Peter Scales wrote in an emailed statement.

“John has decades of administrative experience, having spent several years of his career as a budget analyst . . . and in the mayor’s office overseeing the construction and management of Chicago’s infrastructure. DWM will benefit from his vast experience and expertise to analyze . . . facility staffing needs, hiring plans and use of overtime.”
Pope could not be reached for comment. Aldermanic salaries range from $106,558 to $117,333 a year, depending on whether City Council members chose to accept their annual cost-of-living pay hikes. No matter where Pope landed in that range, the new job makes him whole.

It’s not the first time Emanuel has ridden to Pope’s rescue.

The $4 million super PAC created to re-elect the mayor and strengthen his City Council majority contributed $75,000 to Pope’s losing aldermanic campaign. Chicago Forward got involved in 38 ward races. Pope was fourth on the list of beneficiaries. Only former Ald. Deborah Graham (29th) ($110,000), Ald. James Cappleman (46th) ($98,000) and Ald. Michele Smith (43rd) ($79,000) received more.

Shortly after taking office, Emanuel embarked on a massive rebuilding of Chicago’s water system bankrolled by a four-year doubling of water rates, followed by annual cost-of-living increases.

Last year, operating revenues in the water fund increased by $80.9 million or 13.2 percent thanks to a 15 percent increase in water rates offset by the conversion of 20,256 accounts from non-metered to metered, according to the 2014 city audit.

Operating expenses before depreciation and amortization increased by $23.5 million or 8.6 percent, thanks, in part, to an $14.2 million increase in transmission and distributions expenses. Operating revenues in the city’s sewer fund increased by $42.5 million or 15.2 percent, thanks to a companion increase in sewer fees.

The bottom line is that the water and sewer funds are in relatively good shape compared with the rest of city government.

But that doesn’t change the perception that, at a time when bureaucratic belt-tightening could force layoffs of rank-and-file city employees, a former alderman who’s close to the mayor just landed a six-figure job.

“The fact that we don’t have a lot of money doesn’t mean that all jobs are left unfilled,” said Ald. Pat O’Connor (40th), Emanuel’s City Council floor leader.

“There was an opening. [Pope] applied. He’s got budget experience. He came from the [Daley] administration years ago. He’s gone back to the type of work he did before. If the guy came from the bureaucracy of the city before and dealt with that department and did budgets and applies for a job” then he’s qualified.

Last year, Pope came under fire for hiring as a $57,048-a-year staff assistant, a former Streets and Sanitation worker, who had landed on the city’s “do not hire” list after being accused of sexually harassing a female co-worker and threatening to rape her when she complained about him.

Pope fired Thomas J. Sadzak only after the Chicago Sun-Times reported that the woman had won a $99,000 settlement from City Hall.

During his losing aldermanic campaign, Pope enlisted snow removal help from a corrupt city contractor and thanked him publicly on Facebook.

After getting elected with help from the now-defunct Hispanic Democratic Organization at the center of the hiring scandal, Pope returned the favor by hiring the mother of HDO Southeast chieftain Al Sanchez.

Sanchez, a former Streets and Sanitation Commissioner under Daley, was subsequently convicted of rigging city hiring to benefit HDO and other pro-Daley armies of political workers.