Stern in Fight with West Coast Affiliates Over Alleged Misconduct

After my recent ouster from Comments from Left Field, Rob asked me if I wanted another outlet to post from. Flattered by the attention and delighted by the chance to be seen at such a prestigious address, of course I said yes. She suggested writing about labor, and this is my first foray into the wider world of Fact-esque. Be kind.

When I searched the library's database for a subject worthy of my initial post, this one just jumped out at me: SEIU's Andy Stern was reported by the SF Chronicle yesterday to be threatening to oust the leaders of the Oakland-based United Healthcare Workers West, charging its president, Sal Rosselli with "breaches of fiduciary duty, interference with collective bargaining rights, financial irregularities and unethical conduct".

Andy Stern, president of the Washington-headquartered Service Employees International Union, sent a letter on Monday - obtained by The Chronicle - that alleges misconduct by Sal Rosselli, president of the Oakland-based United Healthcare Workers West, who has been Stern's most vocal critic.

Rosselli and other leaders of the union - which has 150,000 members, many of them in the Bay Area - said the allegations appear to be a prelude to a trusteeship, under which Stern would replace the union's elected leaders with his own appointees.

The battle between Stern and Rosselli is being closely watched by all of SEIU's 600,000 California members and could have long-term effects on how the labor movement organizes, elects its leaders and negotiates contracts nationwide. It also could have a seismic impact in the health care industry, where Rosselli's union remains a potent political and economic force.

The labor leaders have clashed in recent months over Gov. Arnold Schwarzenegger's failed health care plan (Stern backed it, Rosselli opposed it); over the union's endorsement of Sen. Barack Obama; over Stern's efforts to reorganize SEIU's California unions; and over bargaining tactics with hospitals, nursing homes and other employers.

Rosselli insists Stern is seeking to oust him for his outspoken views. Last month, Rosselli resigned from SEIU's executive committee after accusing Stern of consolidating power in the hands of his allies while marginalizing other elected leaders. He also alleges that Stern has cut deals with corporate leaders to grow SEIU's rolls at the expense of current members' contracts.

"It's retaliatory because we are speaking out against his ideology, his direction," Rosselli said. "The simplest way I can say it is, it's top-down versus bottom-up, corporate unionism versus social unionism."

Stern is no shrinking violet, that's for sure, and Rosselli's counter-charges have at least some ring of truth. But then, so do Stern's. Stern is and has been for years a Zero Tolerance guy when it comes to any form of corruption. Not from a rigid adherence to legalities so much as from a painful knowledge of the part the image of corruption played in destroying the power of unions in the 80's. Labor is still on a long road back from the damage caused by that perception and Stern has always said he would snuff it out wherever he found it rather than give anti-union conservatives another weapon.

OTOH, the rap on Stern for a couple of years now, particularly since SEIU broke away from the AFL-CIO, is that he's on the autocratic side, issuing orders he doesn't expect arguments about, and that he tends to be ruthless when dealing with opponents. In his favor, the complaints appear to have come from inside Rosselli's own union.

Andrew McDonald, an SEIU spokesman, said the letter was sent in response to complaints from union members about Rosselli's actions at United Healthcare Workers West.

"The key thing is that these are very serious allegations that have come from members and so the union is taking this very seriously," McDonald said. But he added that it's too soon to speculate whether the charges could lead to a trusteeship, saying "It's premature to talk about any formal action."

Rosselli is claiming that Stern is using the complaints to eliminate the current leadership and set up a trusteeship so he can control the union himself, thus getting rid of one of his most vocal critics inside SEIU.

Whichever it is, though, it may be the fight itself which ends up being the issue. SEIU has over 600,000 members, and if Stern is making a power-play the ramifications could be extensive. So could the damage to the fragile image of a union that just last year broke out to go it alone. Nobody wants to see a return to the days when the Labor Movement was subsumed in internecine quarrels that weakened it and allowed corporate labor raiders to split and destroy it, playing one side off another.

If this brouhaha isn't settled soon - and to most everyone's satisfaction, the great promise of Stern's bold vision could get flushed right down the toilet of public distaste with naked power grabs that don't originate with Bush.

Comments

[eRobin]

Nobody wants to see a return to the days when the Labor Movement was subsumed in internecine quarrels that weakened it and allowed corporate labor raiders to split and destroy it, playing one side off another.

Boy and how. This is a fascinating story.

5 years ago I started going to conferences… the first one was Search Engine Strategies in San Jose. I was not making much money at the time but was making enough to support myself. I attended every session and had 2 notebooks full of notes. It made all the difference in the world to me. That was 5 years ago though. Since then I have attended over 60 various industry events and I would say the 2 that have stuck out in my mind the biggest was that first one and then last year at the techcrunch40 conference.

Keep up the informative posts!