Andy Stern 

FEC Refuses to Issue Stern Warning Against Illegal SEIU Union PAC Fundraising Scheme

Yesterday, former Service Employees International Union (SEIU) chieftain and appointment to President Obama's "Deficit Panel" Andy Stern was reportedly being investigated by the FBI for his role in a couple of shady dealings while he was at the helm of the forced unionism leviathan.  But that wasn't the only big story coming out yesterday about widespread SEIU union hierarchy corruption during his tumultuous reign. From Ed Barnes on FoxNews.com:

Despite a finding by the Federal Election Commission's general counsel that the Service Employees International Union violated election law when it required local affiliates to contribute to its political action fund, the FEC's full board nonetheless quietly voted to overrule its staff attorney and dismissed the original complaint -- clearing the way for the union to squeeze its locals to amass a $9 million war chest for the next election.

Moreover, the group that filed the complaint, the National Right to Work Foundation (NRWF), didn't receive a full explanation of the FEC's decision in the case until after 111 days had passed, ensuring that its right to file an appeal had lapsed.

...

The NRWF, long a thorn in the side of the 1.8 million-member union, filed its complaint in October 2008, challenging an amendment to the union's constitution that required each local to contribute $6 per member to the international's political action committee. Those locals that didn't comply would be charged the difference between what they owed and what they raised -- plus, a 50 percent penalty.

"To us it was a prima facie case for coercion," [National Right to Work President Mark] Mix said. "Plus, it looked like a money laundering scheme as well, because locals would pay the penalties from their general funds into the political action committee. General union treasury funds are not allowed to be used for political purposes," he said.

Frankly, it's very unfortunate that the FEC seems interested in allowing Big Labor political corruption.  As Mark Mix explained in the Washington Examiner earlier this month:

Imagine the outcry if McDonalds executives demanded that franchise owners collect “voluntary” contributions totaling $25,000 for the company’s Political Action Committee (PAC) from employees at every restaurant.

What if the fast food titan’s headquarters followed up with a threat - pay us, or face a $37,500 fine? Do you think this heavy handed scheme would raise a few eyebrows at the Federal Election Commission (FEC)?

Replace “McDonalds” with “SEIU” in that description and you’ve got a pretty good idea of Big Labor’s latest political fundraising strategy. To meet their ambitious fundraising targets, Service Employees International Union bosses are now threatening to fine any local affiliate that doesn’t meet its PAC contribution requirements.

The only problem with this racket is that FEC guidelines explicitly prohibit organizations from collecting PAC funds by threatening members with financial reprisals. SEIU bosses aren’t exactly hiding their intentions, either – they actually wrote this fundraising provision into the union’s constitution at their annual convention.

If McDonalds had the nerve to collect contributions from employees using similar threats, you can bet the FEC would be all over the case. The SEIU, however, seems to have gotten away scot-free.

Stern, of course, was one of the nation's most politically powerful union barons.  Stern's ruthless crusade to lock workers into forced dues ranks at any cost while in power left behind a legacy marked by scandal after scandal, dissatisfied and unhappy workers and union members, vicious campaigns against workers and job providers, and even a record fine against an SEIU-backed “527” group following a complaint filed by the National Right to Work Foundation.

Meet the New Boss... Same as the Old Boss: SEIU Regime Change More of a Lateral Move

In the wake of Service Employees International Union (SEIU) boss Andy Stern's retirement, SEIU Executive Vice President Mary Kay Henry was ushered in as the new chief of the notoriously corrupt and predatory union hierarchy.

Despite the mainstream media's portrayal of Henry's coronation as a change in the way SEIU union organizers coerce workers into dues-paying union ranks through intimidation or political deal-making, nothing could be further from the truth.

From National Right to Work's contribution to BigGovernment.com:

Don’t let the cheery atmosphere surrounding her anointment ease concerns about her nor the SEIU and its agenda; because for her, ObamaCare and its potential for 21.1 million forced unionism conscripts are just the beginning steps for SEIU’s steady march towards domination of U.S. labor markets.

Mary Kay Henry’s intentions to further radicalize the labor movement and the American economy are clearer than Stern’s vision. With the hundreds of millions of union dues and fees flowing into SEIU’s treasury, she has the financial fuel needed to fund her ambitious desires...

Mary Kay Henry has been credited with most of SEIU’s membership growth for more than a decade; however, that growth did not come from the grassroots; it was top down.

From 1996-2007, SEIU claimed 900,000 “new members” and Mary Kay Henry’s healthcare division provided almost all its growth...

In 2006, Mary Kay Henry laid her plan on the table:

More central power is needed, said Henry. “We believe the American labor movement needs to move beyond voluntarism [joining voluntarily?] … SEIU aims to increase the union rate of health care workers from its current 20 percent to 50 percent.[iii]

SEIU’s game plan is simple and reminiscent of the 1950s: create the allusion that it has the power to subjugate employers by region and couple it with SEIU’s willingness to ignore election rules to intimidate and control almost every elected and appointed Democrat in the United States. If the plan works, SEIU organizations gain control of workers in an entire region of the country.

After creating mega-locals, SEIU begins to sign-up smaller workplaces and move these units into the appropriate mega-local conflating contracts into its master contract for the region.

In the end, SEIU’s mega-local contract spans across numerous states and worksites making it virtually impossible for individual workers to mount a successful decertification or deauthorization NLRB election.

(Emphasis in original)

To view the National Right to Work Committee's latest video, "SEIU's Mary Kay Henry: Meet the New Boss, Same as the Old Boss"click here or you can watch it below:


Denver Post: Becker's Recess Appointment "Troubling," "Makes Little Sense"

Today, the Denver Post questioned President Obama's recess appointment of radical SEIU union lawyer Craig Becker to the National Labor Relations Board, noting how Becker's biases against workers' rights:

From the Denver Post:

We question Becker's ability to be an arbiter enforcing fairness in union elections...Becker served as counsel to both the Service Employees International Union (SEIU) and the AFL-CIO. It was [SEIU] president Andy Stern who visited the Obama White House 38 times (at last count), and his union spent a reported $66 million to help the president win election.

The Post continues:

He not only supports so-called "card check," the Employee Free Choice Act that which would effectively eliminate secret ballots and strip away worker privacy when forming a union, he also advocates for the elimination of the "no union" option from workers' ballots. And he thinks employers should have no "role in union organizing campaigns and in union representation elections."

How can Americans expect Becker will exhibit impartiality?

The National Right to Work Legal Defense Foundation, for instance, already has asked Becker to recuse himself from 12 cases because "his prior writings demonstrate a bias against the group."

Read the whole Denver Post editorial here.

Irony: Obama Names Andy Stern to Deficit Panel

If the goal of Obama's Deficit Panel is to increase government budget deficits then naming SEIU top boss Andy Stern makes perfect sense. But since the supposed goal is to reduce the record budget shortfalls, Stern's nomination is a real head-scratcher.

As many union members know, the self-interest of union bosses to corral more workers into dues-paying ranks often has severe costs.  And now that more than half of our nation's government workers are now under union boss monopoly bargaining control, it's becoming abundantly clear that one of these costs is the growth of government to fiscally unsustainable levels.

It's no wonder mayors from across the country are standing up to oppose the Police & Firefighters Monopoly Bargaining Bill, currently pending in Congress, which would force first responders into forced-dues-paying ranks by federal fiat.  As Charleston, WV, mayor Danny Jones told the Charleston Daily Mail

If you look around the states, the most unionized states are the ones that are the most broke.

So while SEIU boss Andy Stern continues his using his frequent White House visits to push for a new federal policy that could add $100 billion a year to the federal budget (while forcing employees of federal contractors into union coffers) and the costs of Big Labor's public sector growth become more clear, concerned citizens can only wonder what kind of recommendations Andy Stern will make on President Obama's deficit panel.

SEIU Union Czar Andy Stern: Most Frequent White House Visitor

Here on Freedom@Work, we've kept you updated about the Obama Administration's payback after payback to the union bosses who spent over one billion dollars in 2008 getting Barack Obama and other forced unionism proponents elected.

From rolling back union disclosure guidelines to slashing the budget of the Department of Labor's union watchdog agency to blacklistining nonunion construction workers from "stimulus" projects, the Obama Administration hasn't been shy about rewarding union brass.

So Friday's news about the White House's visitor list isn't exactly a shocker, but it says an awful lot about the Administration's priorities: no one has visited the White House more than Service Employees International Union chief Andy Stern.

Stern, of course, is one of the nation's most politically powerful union barons.  Under Stern's reign, the SEIU has also been marked by scandal after scandal, dissatisfied and unhappy workers and union members, and vicious campaigns against workers and employers.

SEIU Bosses Put Politics Before Workers' Jobs - Literally

Here at Freedom@Work, we spend a lot of time documenting union bosses' shameless hypocrisy, but this latest incident (almost) surprised even us. The powerful Service Employees International Union (SEIU) recently fired 75 staffers. But why is an organization that collects hundreds of millions of dollars in easy money (forced dues) per year cutting jobs now, in the midst of a devastating economic recession? Simple - they want even more cash for political lobbying:

"It's completely hypocritical," said staff union President Malcolm Harris...

Harris said his union's understanding is that the layoffs are the result of budget troubles faced by SEIU, which, on top of the California dispute, spent $80 million during the 2008 election and is planning to spend tens of millions more to advocate on behalf of Obama's health-care plan and card check.

The entire sordid episode is sadly reminiscent of the SEIU's election-year shenanigans, when the union hierarchy threw in the towel on the notion of hands-on employee assistance, replacing a help line with a remote call center -- the goal being to free up even more resources for political campaigning.

And now, yet again, SEIU bosses are demonstrating that they are more concerned with politics and forced-dues dollars than looking out the working man. 

(Via National Review)

BlagoGate II - Podcast Edition

Foundation VP Stefan Gleason sits down with Hot Air's Ed Morrissey to discuss disgraced Illinois Governor Rod Blagojevich's connection to union corruption:

You can also listen to the Foundation's podcast via iTunes or manually subscribe to the feed. The Foundation's previous coverage of Blagojevich can be found here, here, and here.

[Note: Some listeners have reported technical difficulties while using the Firefox web browser. If you're having problems, click here to listen.]

Blagogate: Stern's SEIU Got Tens of Millions in Forced Dues Revenue After Giving Campaign Support

Today's Washington Post has a good rundown of Illinois Governor Rod Blagojevich's alleged pay-for-play deal with a high-ranking Service Employees International Union boss we've been telling you about. This paragraph is particularly revealing:

[SEIU president Andrew] Stern has emerged as a central player in the labor movement by pressing aggressively to expand union rolls, along the way irritating AFL-CIO leaders, whom he accused of being complacent, and leaders of some SEIU chapters who accuse him of cutting deals with business and government that enhance his profile while undercutting local chapters. Among his victories was Blagojevich's decision to let SEIU, and not the American Federation of State, County and Municipal Employees, organize Illinois' child-care workers.

Stern's personal machinations to secure his own PR are entirely at odds with workers' interests. But more importantly, take a look at that last sentence again: "Among his victories was Blagojevich's decision to let SEIU, and not [AFSCME], organize Illinois' child-care workers."

Far Left magazine The American Prospect summarized the SEIU-AFSCME battle in 2005. In Blagojevich's first race for governor in 2002, the SEIU provided a thousand volunteers in the weeks before the primary election, enough to push the Congressman over his nearest rival by just one percent. As governor, Blagojevich repaid the SEIU by issuing executive orders that effectively ensured that the SEIU (and not AFSCME) would "represent" the 5,000 home-care workers and 48,000 child-care workers in the state.

This potentially unconstitutional scheme to impose monopoly bargaining on home care providers has resulted in many hundreds of thousands of new forced union dues payers across America. It's a huge new cash cow for union bosses.

The fact is, if union bosses spend millions of dollars to get a candidate elected, they expect something in return. Blagojevich was happy to oblige.

Sometimes, that means giving union bosses like Andy Stern and his ilk close access to governors like Blagojevich to let them pick political appointments. Sometimes, it means legislative power grabs like the misnamed Employee Free Choice Act (aka the Card Check Forced Unionism Bill). And, of course, union bosses use their political power precisely to gain even more revenue and political power.

And that's the bigger picture in the Blagojevich scandal -- Big Labor's influence wouldn't be possible without forced unionism.

Foundation Action: Foundation Seeks Federal Investigation into Union Political Fundraising

The cover story of the September/October issue of Foundation Action covers efforts by the Foundation to expose an SEIU union political fundraising scheme that coerces workers to support union politics, and to get the Department of Labor and Department of Justice investigate the scheme.

Read the whole story here (pdf) and sign up today for a free print subscription.

To receive the entire issue via email, just type your email address into the box in the top right corner of this page.

Even a Big Labor Ally Concedes the SEIU May Be Breaking Federal Election Law

Yesterday, a pro-Big Labor blogger at OpenLeft inadvertently highlighted the absurdity of the SEIU's apparently illegal fundraising scheme (emphasis mine):

If the local doesn't put enough money into the national PAC, they will have to pay a penalty of regular funds out of union dues to the international. PAC contributions are voluntary and only come when members feel empowered, whereas union dues are automatic, so this is a strong incentive for locals to organize and empower their members. It's a good policy move, and it was voted on and ratified at the SEIU Convention.

Surely the author realizes that there's some tension between "voluntary contributions" and an SEIU policy that penalizes local affiliates for failing to meet MANDATORY political fundraising targets? Actually, he does:

The requirement and penalty do somewhat cut against what it means to voluntarily give to political causes. A possible lawsuit might be viable.

For sure. Here's the relevant section of US code quoted in the National Right to Work Foundation's letters (.pdf) to the Departments of Justice and Labor (emphasis mine):

(2) For purposes of this section and section 79l(h) of title 15,[1] the term “contribution or expenditure” includes a contribution or expenditure, as those terms are defined in section 431 of this title, and also includes any direct or indirect payment, distribution, loan, advance, deposit, or gift of money, or any services, or anything of value (except a loan of money by a national or State bank made in accordance with the applicable banking laws and regulations and in the ordinary course of business) to any candidate, campaign committee, or political party or organization, in connection with any election to any of the offices referred to in this section or for any applicable electioneering communication, but shall not include

. . .

It shall be unlawful—

(A) for such a fund to make a contribution or expenditure by utilizing money or anything of value secured by physical force, job discrimination, financial reprisals, or the threat of force, job discrimination, or financial reprisal; or by dues, fees, or other moneys required as a condition of membership in a labor organization or as a condition of employment, or by moneys obtained in any commercial transaction;

No political expenditures " . . . secured by financial reprisals or the threat of financial reprisals?" Sounds like a pretty explicit violation of U.S. law.

The SEIU's political fundraising apparatus is absolutely enormous. As the author of the OpenLeft post notes, its institutional clout and massive campaign expenditures dwarf other organizations' contributions. But coercing local SEIU affiliates into bankrolling a national campaign strategy has the potential to irreparably taint our electoral process. When even a pro-Big Labor mouthpiece concedes the viability of the Foundation's case, it's time for the Departments of Labor and Justice to take action.

ADDENDUM: Here's more commentary on the political implications of the SEIU's fundraising from QandO and Protein Wisdom.


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