United Healthcare Workers West put into Trusteeship

FOR IMMEDIATE RELEASE
January 27, 2009
CONTACT: Michelle Ringuette, 202-341-7057

Statement of Andy Stern, President of the Service Employees International Union,
on the Trusteeship of United Healthcare Workers-West (UHW)

Found Guilty of Financial Malpractice and Efforts to Subvert Democracy in SEIU by Outside Hearing Officer Former Secretary of Labor Ray Marshall, Rosselli and Leadership Team Removed after Rejecting Hearing Officer’s Conditions to Avoid Trusteeship

WASHINGTON, DC—“Today we bring an end to a sad chapter in the life a local union with great members, whose leadership lost their way, engaged in serious financial wrongdoing, refused to end their attempts to subvert the democratic processes of this union and failed to take action against reported decertification efforts. This trusteeship is grounded in the clear facts found in Secretary Marshall’s report and the direct actions of Sal Rosselli and the officers of UHW.

“Today’s action is being taken to correct financial malpractice, restore democratic procedures and safeguard the collective bargaining relationships of UHW. We will move now to correct these problems and we are committed to work with everyone to open a new chapter for this local union that ensures its members are protected and guaranteed the opportunity for success. At a time when our members face an unprecedented budget crisis in Sacramento and workers throughout the state are losing their jobs and seeing their healthcare and other benefits cut, we must all move forward to meet the challenges and opportunities before us.”

MEDIA NOTE: See FAQ below. Additional background and documents related to this matter, including today’s trusteeship order, Secretary Ray Marshall’s Report and Recommendations, the IEB Resolution, SEIU and UHW Hearing Briefs, and Hearing Transcripts can be found at http://www.seiu.org/a/ourunion/trusteeship-documents.php
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With 2 million members in Canada, the United States and Puerto Rico, SEIU is the fastest-growing union in the Americas. Focused on uniting workers in healthcare, public services and property services, SEIU members are winning better wages, healthcare and more secure jobs for our communities, while uniting their strength with their counterparts around the world to help ensure that workers—not just corporations and CEOs—benefit from today's global economy.

Frequently Asked Questions
What is a ‘trusteeship’?
As a protective measure for its members, an International union has the authority to place a local union under trusteeship if there is corruption, financial wrongdoing or a breakdown of representation or democracy taking place. Under trusteeship, the local’s current constitution and bylaws are suspended, elected officers are removed, and a ‘trustee’ is appointed by the International President to replace the previously elected body (the Executive Board, including the President, Executive Vice-President and Secretary/Treasurer). The trustee then oversees the daily operations and finances of the Local.

What caused SEIU UHW to be placed under trusteeship?
After overseeing six days of hearings where testimony was heard from both SEIU International and SEIU UHW leadership, former Secretary of Labor Ray Marshall issued a report confirming that top SEIU UHW leadership engaged serious financial wrongdoing, attempted to evade democratic accountability and oversight, and attempted to subvert the democratic processes of our union – all grounds for trusteeship. Furthermore, for two separate and independent reasons ground this decision to impose an emergency trusteeship. First, UHW leaders have not only failed to cooperate with, but indeed defied the International Union’s decision on California jurisdiction, despite the clear need for its effective and efficient implementation. Second, there is reason to believe that UHW leaders have fostered and/or facilitated—and in all events have failed in their duty as officers to take affirmative action to counteract—plans and proposals to decertify UHW bargaining units, de-authorize dues deductions, and/or trigger defections of UHW members to rival or new unions, thereby immediately putting at serious risk the stability of collective bargaining relationships for the affected members and undermining the lawful objects of the International Union.

Who are the trustees?
Executive Vice Presidents Eliseo Medina and Dave Regan have been named trustees of SEIU UHW.
For more than 40 years, Eliseo Medina has organized workers and served as one of the leading voices in the movement to fix our country’s broken immigration system. From his start in SEIU in 1986 reviving a local union in San Diego, Medina has earned the respect of the national labor community as an effective leader of our movement.

Dave Regan is a committed political and healthcare reform activist with nearly 20 years of leadership experience in the labor movement. Prior to being elected as an executive vice president, Regan served as president of the SEIU District 1199, a three-state local representing over 34,000 members in Ohio, West Virginia and Kentucky.
What happens next?

The elected leaders of SEIU UHW have been removed and trustees have been appointed to restore fiscal and ethical accountability. During this time, the trustees will correct serious financial wrongdoing, restore democratic procedures, protect the members’ interest, and carry out the goals of the union. Elections for new officers will be held once the local has been stabilized.
How does the trusteeship impact the long term care jurisdiction process?
It does not. Based on the recommendation made by the hearing officer, the International Executive Board has voted and determined that there will be one statewide long-term care union. Members working for home care or nursing home employers will remain members of SEIU UHW until the transition process is complete.

Michelle A. Ringuette
Service Employees International Union (SEIU)
w: 202 730 7234
m: 202 341 7057
http://www.seiu.org