September 4, 2008
The Service Employees International Union (SEIU), the parent union of United Healthcare Workers (UHW), has accused the California-based UHW union of fraud and misuse of money and is seeking to put the UHW union in trusteeship, meaning that that UHW could be taken over by the SEIU.
UHW is the union that is seeking to represent workers at Stanford and Packard Hospitals.
The SEIU said it has “serious concerns regarding the conduct of UHW’s leadership and on the basis of significant evidence that the leadership of the Local engaged in a pattern of financial malpractice and fraud involving the diversion of millions of dollars of union treasury monies and property, in possible violation of federal law. The allegations against UHW include:
- An illegal scheme to divert $6 million dollars of members’ money off the union’s books into an outside fund conceived for the personal and political benefit of the leadership;
- Improper use of $500,000 of members’ funds to create a legal defense fund for the protection of the union leadership, circumventing democratic processes and investigations into the abuses;
- The unlawful misappropriation and misuse of proprietary electronic records;
- Allegations by UHW members that they have been retaliated against for expressing their views on union affairs”
The UHW has shot back claiming that the SEIU President is corrupt and is taking action "to retaliate against UHW for exposing his corrupt practices." UHW also accuses top SEIU leaders of engaging in “undemocratic practices, forced mergers and cronyism within our union.” The UHW says it “wants an independent agency to investigate the financial practices and cronyism of the officers of the International Union.”
On Sept. 10 and 11, formerly represented employees can either vote “yes” to join UHW or vote “no” to retain an independent relationship with the Hospitals.
We urge you to read the newspaper, the web and blogs and learn more about the battle between the SEIU and UHW before you vote. Know who and what you are voting for on Sept. 10 and 11.
Download the PDF
Read a letter from Andy Stern, President, SEIU International, here.
Read articles relating to the issue below.
SEIU Creates Ethics Panel to Boost Oversight, The Wall Street Journal
Union Seeks Stronger Ethics Rules Amid Scandals, The New York Times
Service Union Vice President Steps Down Amid Probe, The Associated Press
3rd Union Official Gives up Her Post, Los Angeles Times
