Monday, Dec. 19, 1988

American Notes NEW JERSEY

After its leaders were found guilty of racketeering, murder threats and extortion four years ago, Local 560 of the International Brotherhood of Teamsters earned a dubious distinction: it became the first union local to be taken over by the Federal Government. Last week the local, based in Union City, N.J., held its first open and contested elections in more than 20 years.

The new local president: Danny Sciarra, 56, whose brother, former local president Michael Sciarra, was barred from the leadership because of his ties to Mob boss Anthony (Tony Pro) Provenzano. The new vice president: Mark Sheridan, whose uncle was barred from office for the same reason. Sciarra ran openly as a surrogate for his deposed brother and won by an almost 2-to-1 ratio. But Federal Judge Harold A. Ackerman said the court-appointed trustee for the local would retain his "investigative capacities," and gave the new leaders 60 days to report in detail on how they intend to run an honest shop.