Here are the 5 main types of labor racketeering -
1. Bid-Rigging: Only pre-selected companies are allowed to bid. A company is either owned by the mob or must kickback a percentage in order to be chosen for the job. Unapproved companies trying to bid will have problems with the mob-controlled union.
2. Sweetheart: A mob-controlled union allows a company to use non-union labor or union labor for only part of the job. The company saves money and kickbacks some of it to the mob.
3. Extortion: A mob-controlled union extorts payments from a company in turn for labor peace, timely deliveries, no harrasment, etc.
4. No-Show: In turn for any of the above - being selected for a job, using non-union workers, labor peace, etc. - a company puts mob members on their payroll. The mobsters have a legitimate source of income for doing no work.
5. Embezzling: Mob guys in key union positions are able to divert union funds through ghost payrolls, use it as capital for loans or investments, force workers to kickback part of their pay to keep their jobs, etc.