Paycheck shock: Local 1000 dues up 50 percent

Many state workers did a double-take on their payroll stubs last week as the 50-percent increase to member dues and fair-share payments approved last year by SEIU Local 1000 took effect.

The increase, which raises dues from 1 percent to 1.5 percent of state worker salaries, has prompted an ongoing conflict among the union's rank and file over what some call an unnecessary burden on member's pocketbooks. SEIU Local 1000 has 90,000 members, both dues-paying and non dues-paying, and is state government's largest union local.

Those who opposed the increase say a significant number of state employees took notice. "The phones were ringing off the hook, even at CSEA," said Ken Hamidi, a member of Local 1000 and leader with Raise Organize Against Raise (ROAR), which seeks to roll back the dues.

He and other opponents of the increase told Capitol Weekly that friends working in both Local 1000 and its parent organization, the California State Employees Association, had reported receiving scores of complaints last week from workers taking the hit to their paychecks.

Jim Hard, President of Local 1000, confirmed that they had received "a number of calls."

Local 1000 has experienced financial strife in recent years, especially following their battle against a 2005 initiative that would have required unions obtain written consent from members before using dues money for political purposes. Though the measure ultimately lost, the campaign helped put the union $6.7 million in the red.

The plan adopted by delegates last year was considered necessary in part to relieve this debt. Raising the dues cap on the highest-paid members from $45 to $75 in January, this jumped to a $90 maximum starting with Tuesday's paychecks. Union officials argue that these measures will help create equity in the dues structure, allowing higher-earning members to carry more of the burden.

"This was the first permanent dues increase since 1990," says Doug Crook, a spokesperson for Local 1000. "Nobody wants to increase dues. But the reality is it costs a lot to defend yourself in California."

But critics allege that funds are being misappropriated by an unaccountable leadership. "To them, we are a huge ATM machine," says Hamidi. "Because of that, they spend, spend, spend. There's a lack of efficiency."

Hamidi points out that a large portion of dues are redirected to SEIU national headquarters. According to a fact sheet on Local 1000's website, its affiliation with the national organization comprised about 20 percent of the union's 2006 budget.

Many say they are unwilling to pay for such a large increase when Californians will not be reaping the benefits. Alex Hernandez, who is a member of California State Employees United (or CSEUnited), another "loyal opposition" group, says a top-heavy management structure is problematic. "Obviously, there is a spending problem."

Defenders of the increase say they're willing to pay more if it means their interests will be protected. Bonnie Greenberg, an analyst with the Franchise Tax Board and union steward, says she likes what she's seen from SEIU's negotiated contract for 2007-2008.

"This is the first contract SEIU has negotiated on behalf of state workers, and this is the first series of raises we've received in years. I don't think $90 a month is a lot of money considering what we could lose," says Greenberg.

And according to Local 1000's leadership, they stand to lose a lot. Says Crook, "There are constant attacks on state employees - contracting out their jobs, threats to cut state services, and two years ago there was an attack on their pensions."

Crook also cites an upcoming initiative that could roll back pension benefits for new state hires. The measure was filed by a foundation led by former Assemblyman Keith Richman, and is currently awaiting title and summary at the attorney general's office.

Though the raise in dues was approved by more than two-thirds of delegates gathered last October, there have been claims the decision was reached through less-than-democratic means. Hernandez, who was a delegate at the dues vote, says the wide margin of approval that officials boast of is not necessarily accurate. The 270-125 vote, he says, represented less than two-thirds of the 600 elected delegates.

"Some didn't want to deal with the pressure from Local 1000 officers, others didn't want to get pressure from the members they represented who were against [the increase]. They were kind of stuck between a rock and a hard place."

Even as the new dues are being implemented, Hamidi and his colleagues vow the issue is not dead. ROAR and CSEUnited are now promising to revive the issue at the upcoming CSEA General Council meeting in October. They plan to submit resolutions to scale back current fees and prevent further increases, which are slated for July 2010.

Leaders of SEIU Local 1000 say they are, and have always been, open to debate among their rank and file. Says Crook, "We're a democratic organization that is open to heated debate about what our future should be…We're all union together." But, he adds, he doesn't believe the self-proclaimed "reform" movement will go far.

"They don't have the votes…They don't have a program for representation, they don't have a program for negotiating contracts, or protecting our benefits against political attacks. And that's why they don't have majority support," he says.

Local 1000 President Jim Hard adds: "I don't know what they want to reform. Maybe I'd be in favor of it if I heard what it was."

U.S. Department of Labor's Office of Labor-Management Standards Reports Four Indictments, Six Convictions During July for Union Funds Embezzlement

  Court-ordered restitution from enforcement actions exceeds $101 million
                                 since 2001

    WASHINGTON, Aug. 7 /PRNewswire-USNewswire/ -- The U.S. Department of
Labor's Office of Labor-Management Standards (OLMS) today announced its
criminal enforcement data for July 2007. During July, OLMS obtained four
indictments and six convictions, for a total of 73 indictments and 100
convictions during fiscal year 2007 to date. These indictments and
convictions primarily involve union officers and employees who have
embezzled union funds.
    "We are committed to protecting union members' dues payments and
ensuring transparency in labor union reporting to allow workers to review
their unions' expenditures," said Deputy Assistant Secretary for
Labor-Management Programs Don Todd. "Since fiscal year 2001, OLMS
investigations have yielded a total of 810 indictments with 781 convictions
and court-ordered restitution exceeding $101 million."
    OLMS is the federal enforcement agency responsible for administering
most provisions of the Labor-Management Reporting and Disclosure Act of
1959 (LMRDA). The agency's criminal enforcement program includes
investigations of embezzlement from labor organizations, and its civil
program includes the collection and public disclosure of unions' annual
financial reports, compliance audits of labor unions, and investigations of
wrongdoing in union officer elections.
    OLMS's public disclosure Web page at http://www.unionreports.gov
contains union annual financial reports and additional forms required to be
filed under the LMRDA. Other information, including synopses of OLMS
enforcement actions, is available on OLMS's home page at
http://www.olms.dol.gov.
    Editor's Note: A listing of selected OLMS enforcement actions during
July 2007 accompanies this release.
                  Selected Enforcement Actions in July 2007
                     Office of Labor-Management Standards
                           U.S. Department of Labor
    On July 9, 2007, in the U.S. District Court for the Eastern District of
Michigan (Northern Division), Willie Haynes, former financial secretary of
the United Automobile, Aerospace and Agricultural Implement Workers of
America (UAW) International Union Local 362, pled guilty to one count of
willfully making false statements on the annual financial reports (Form
LM-2) filed by Local 362 for fiscal years 2001, 2002 and 2003. On June 19,
2007, Haynes was charged with making false statements and representations
of material facts. The guilty plea follows an investigation by the OLMS
Detroit District Office.
    On July 11, 2007, in the U.S. District Court for the Eastern District
of New York, Frederick Contini, developer of the 2 Broadway Project, was
sentenced to five years probation and ordered to make $8,085,000 in
restitution. On March 31, 2003, Contini pled guilty to Conspiracy to
Receive, Possess and Dispose of Money Obtained by Fraud and Transported
Across State Lines, Obstruction of Justice, and engaging in an Unlawful
Monetary Transaction. The sentencing follows a joint investigation of
members and union officials of Elevator Constructors Local One by the OLMS
New York District Office and the FBI.
    On July 23, 2007, in the U.S. District Court for the District of
Delaware, Michael A. Pingitore, former secretary-treasurer of the Delaware
Rural Letter Carriers Association, pled guilty to six counts of
embezzlement of union funds in the amount of $58,908.38. The guilty plea
follows a joint investigation by the OLMS Philadelphia District Office and
the U.S. Postal Service Office of Inspector General.
    On July 25, 2007, in the U.S. District Court for the District of
Kansas, Kelli Tyrell-Moore, former executive assistant of the Kansas State
Nurses Association, pled guilty to one count of embezzling union funds. On
April 18, 2007, Tyrell-Moore was charged with embezzling $63,397.16 in
union funds. The guilty plea follows an investigation by the OLMS Kansas
City Resident Investigator Office.
    On July 27, 2007, in the U.S. District Court for the District of
Maryland, Walter Fisher, former secretary-treasurer of United
Transportation Union Local 1949, was sentenced to six months in prison to
be followed by six months of home detention and two years probation. Fisher
also was ordered to pay $45,000 restitution to the union. On May 3, 2007,
Fisher pled guilty to one count of embezzling more than $30,000 but less
than $70,000 in union funds. The sentence follows an investigation by the
OLMS Washington District Office.
    On July 30, 2007, in Superior Court for the District of Columbia,
Bradley Burton, former executive assistant to the secretary-treasurer of
the AFL-CIO, was charged with one count of second degree theft for causing
the AFL-CIO to pay $7,663.34 in meal expenses for his wife. Subsequently,
Burton pled guilty and received a suspended sentence of 180 days in jail,
70 hours of community service, probation for one year, a $350 fine and an
order to make any restitution that had not already been repaid. The plea
and sentence follow an investigation by the OLMS Washington District
Office.
    U.S. Department of Labor releases are accessible on the Internet at
http://www.dol.gov. The information in this news release will be made
available in alternate format (large print, Braille, audio tape or disc)
from the COAST office upon request. Please specify which news release when
placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor
Department is committed to providing America's employers and employees with
easy access to understandable information on how to comply with its laws
and regulations. For more information, please visit
http://www.dol.gov/complian....

SOURCE U.S. Department of Labor