toledoblade.com --

A former business manager for Laborers Local 500, who was fired over trips to two strip clubs, had his unemployment benefits reinstated.

A state hearing officer ruled that Steven T. Thomas was not fired with just cause from his job as business manager of the union local.

The ruling was made by Nadine S. Pettiford, who heard the case Nov. 19 for the Ohio Unemployment Compensation Review Commission.

Ms. Pettiford said Mr. Thomas's spending on strip clubs, including allegations that thousands of dollars were spent for his personal entertainment, may have been questionable but it was approved by his employer.

Mr. Thomas, 40, was removed as the business manager of the laborers union in May, 2007, for alleged misuse of funds following an audit by the international union, which temporarily assumed control of the local.

He charged the union $17,414 for 96 separate visits in 2004 to Scarlett's in Toledo and Kahoots Gentlemen's Club in Columbus, according to report obtained by The Blade.

The hearing officer said neither the secretary/treasurer nor the president objected to Mr. Thomas's spending, and there was no policy prohibiting business meetings at strip clubs.

She noted that the laborers' international union alleged Mr. Thomas spent thousands of dollars for personal entertainment on the union credit card. But she said she was not able to review the receipts.

Ms. Pettiford noted that other elected union officials, including Phil Copeland, now a Toledo city councilman, went with Mr. Thomas to Scarlett's Cabaret in Toledo on two occasions.

Mr. Copeland confirmed yesterday that he went to Scarlett's twice with Mr. Thomas, who is his cousin. He said he went only at the urging of Mr. Thomas and that he stayed 15 or 20 minutes and spent no money on both occasions.

"I just went with him because he asked," Mr. Copeland said. He said he doesn't drink, and when he went to the strip club, he was not a member of city council. He said he also didn't know Mr. Thomas was charging the union for the visits.

Since then, Mr. Copeland has succeeded Mr. Thomas as business manager.

Kenneth Ragland, the former president, said he was not aware that Mr. Thomas was charging their two visits to the union. And he said the receipts for Scarlett's were submitted as "J.B. Monroe's." J.B. Monroe Inc. owns Scarlett's.

"When I was there, Mr. Copeland and I left. We didn't know how he paid the bill," Mr. Ragland said.

Mr. Thomas declined comment.

His attorney, Richard Mitchell, said in an e-mailed comment that the import of the decision is that, "there is an expectation that these types of entertainment will occur whenever important union officials are present. No one locally or nationally cared about these types of public expenditures until public light was shined upon them."

"International representatives were also the beneficiaries of these niceties and expected to be wined, dined and otherwise entertained whenever they were present. No one can suggest shock or surprise that union funds were used when the bigwigs from out of town were lavishly entertained," Mr. Mitchell said.

Joseph Allotta, attorney for Laborers International Union of North America Local 500, was undecided whether to appeal.

"We're disappointed that the evidence that was presented at the hearing was not addressed in the decision," Mr. Allotta said. "Therefore Local 500 is reviewing its options whether an appeal should be taken to the next level."

Mr. Thomas, a Democrat, was appointed to the Toledo Board of Education in January, 2005, but was defeated in the November, 2005, election to retain the seat.

Contact Tom Troy at:
tomtroy@theblade.com
or 419-724-6058.

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