Friday, February 16, 2018

Dave Regan's Chickens Come Home to Roost for 15,000 SEIU-UHW Members at Dignity Health

In another sign of trouble, SEIU-UHW is reportedly facing demands for takeaways from Dignity Health during contract negotiations that began last month. The current contract, which is set to expire April 30, covers 15,000 workers and is SEIU-UHW’s second largest contract after Kaiser Permanente.

According to SEIU-UHW, Dignity wants to eliminate SEIU-UHW members’ access to fully employer-paid family health insurance, which has been a standard benefit at unionized California hospitals since the 1970s. Instead, management wants SEIU-UHW members to pay $125 per month to get health insurance for a spouse, and $175 per month for a spouse and children. Only “employee-only” coverage would be free to workers.

The demands spell trouble for Dave Regan.

SEIU-UHW members are already reportedly facing takeaways from Kaiser, which is the union’s largest employer. According to Regan, Kaiser wants 10%-20% cuts to the wage scales for future hires in California’s Central Valley, stretching from Sacramento to Fresno. Kaiser says it hasn’t begun negotiations with SEIU-UHW and has not yet put any proposals on the table.

So... in 2018, Regan will be in defensive bargaining covering more than 70% of the union’s membership even though both Kaiser and Dignity are flush with profits.

What’s going on?

The two companies apparently see Regan as vulnerable.

And Regan is vulnerable. But he can only blame himself for SEIU-UHW’s current problems. Why?

Because he laid the groundwork for the cuts by negotiating similar benefit cuts and wage freezes with other hospital companies. “We want the same cuts you gave to the other companies,” the execs at Dignity and Kaiser seemed to be telling Regan.

Soon after parachuting into California in 2009, Regan quickly began slashing workers’ long-established contract standards. Alameda Hospital was the first hospital where Regan agreed to eliminate SEIU-UHW members’ fully employer-paid family health benefits. Instead of paying $0 for family health coverage, Regan required SEIU-UHW members to pay $170 per month to get coverage for their children. Once the ink was dry on Dave’s signature at the bottom of the contract, Alameda Hospital executive Kerry Easthope told the San Jose Mercury News that Regan’s cuts were “a groundbreaking concession.” (Michele Ellso, “Alameda Hospital employees to get pay raise,“ San Jose Mercury News, 04/30/2009)

Next, Regan negotiated similar cuts to health insurance with entire hospital chains like the Daughters of Charity Healthcare System. In 2012, Regan used ramrod ratification votes to force massive concessions down the throats of thousands of thousands of Daughters of Charity workers. Regan tossed their fully employer-paid family health coverage in the trash can. Instead, SEIU-UHW members were forced to pay 25% of the monthly health insurance premiums -- or hundreds of dollars a month.

Regan also eliminated workers’ defined-benefit pension plan (he replaced it with a 401k plan), implemented an invasive corporate wellness program, and allowed the company to double workers’ out-of-pocket costs for prescriptions, doctors visits and other healthcare procedures.

At Dignity, Regan agreed to eliminate workers’ defined-benefit pension plan and accepted wage freezes for 15,000 SEIU-UHW members... even though the company was making profits.

So… is it a shocker that Kaiser and Dignity are now coming to Regan for more cuts?

Thursday, February 8, 2018

SEIU-UHW’s Dave Regan Withdraws Ballot Initiative Targeting Kaiser Permanente

As Tasty’s internal sources predicted, Dave Regan has withdrawn his California ballot initiative targeting Kaiser Permanente, according to an e-mail distributed today by Kaiser executives to employees.

The e-mail, sent by Kaiser’s Chief Human Resources Officer Chuck Columbus, states:
We wanted to let you know that the leadership of SEIU-UHW has notified Kaiser Permanente that the union has withdrawn its proposed ballot initiative that would have affected Kaiser Permanente if it became law.
We acknowledge the union’s decision to set aside the ballot initiative. There is more work to be done in reaffirming our Labor Management Partnership, and recommitting to our core principles of partnership, and that work is underway.

One day before the announcement, Regan launched a hastily choreographed maneuver aimed at trying to convince SEIU-UHW’s members that he’s not weak and isn’t in fact scurrying away from a fight with Kaiser with his tail between his legs. 

With much chest-pumping, Regan yesterday announced that SEIU-UHW will hold “protests” at 32 Kaiser hospitals between February 14 and March 9. It’s unclear what the “protests” will be.

What’s behind Regan’s “protest” announcement?

Since last summer, Regan has been telling SEIU-UHW members that his ballot initiative is the secret weapon that’ll prevent Kaiser from implementing cuts to SEIU-UHW members’ wage scales for future hires in California’s Central Valley. Now that Regan is dropping the ballot initiative, workers will inevitably ask: “Did Dave just cave into the boss? Did he just throw us under the bus? If we no longer have a ballot initiative, then what’s the plan?”

Will workers actually buy Regan’s damage-control maneuver? It remains to be seen.

Better yet… does Regan actually have a “Plan B” to confront Kaiser’s demand for wage cuts?

Lastly, will Regan ever have a successful ballot initiative... which he's spent tens of millions of union members' dues money on, according to Politico?

What's next?

It appears that Regan wants to rejoin the partnership unions’ 2018 national bargaining process, which is scheduled to begin next month. However, Regan and SEIU-UHW’s members will join the negotiations with a much diminished stature after Regan torched relationships with other partnership unions and burned a bunch of bridges with his former pals at Kaiser. For example, for months Regan has demanded that the other partnership unions allow him to take control of the national bargaining, which was strongly resisted by the unions.

Here’s a copy of the e-mail sent today by Kaiser’s Chuck Columbus:

Tuesday, February 6, 2018

Source: Dave Regan Will Withdraw Ballot Initiative Targeting Kaiser Permanente

According to an internal source, SEIU-UHW’s Dave Regan will soon withdraw the California ballot initiative he recently filed against Kaiser Permanente.

There’s no official confirmation of the withdrawal yet, but Tasty’s internal sources say it’s coming.

Last week, top officials from the labor-management partnership unions convened in Washington DC for a closed-door meeting with Kaiser CEO Bernard Tyson

At a pre-meeting, some union leaders reportedly discussed the idea of tossing SEIU-UHW out of the labor-management partnership. Kaiser earlier barred SEIU-UHW from participating in the partnership’s 2018 national bargaining.

Meanwhile, last week Kaiser mounted a direct-mail campaign targeting SEIU-UHW’s members with news that Regan’s initiative -- which could place a cap Kaiser’s future revenues -- would undermine the HMO’s ability to fund SEIU-UHW members’ pensions and other benefits.

Regan’s withdrawal of the initiative is not a shocker. After all, Regan has a track record of committing a staggering series of f*uck-ups when it comes to is ballot initiatives.

In 2016, Regan was forced to withdraw an Arizona ballot initiative targeting the hospital industry after hiring paid circulators who collected 281,000 signatures from voters. Why? Regan apparently forgot to make sure the signature-gatherers were legally qualified to collect signatures. Whoops!

Also in 2016, Regan was forced to drop a California ballot initiative against the California Hospital Association because it violated a gag clause that Regan himself had earlier signed as part of his secret deal with hospital executives.

In each withdrawal, Regan had already spent millions of SEIU-UHW members’ funds on the failed efforts.

On Monday, Politico’s Victoria Colliver also noted Regan’s record of misfiring on his million-dollar ballot initiatives.
SEIU-UHW has a history of filing ballot measures that would affect organizations whose workers it represents, or wants to. Most of them never actually get voted on: The union has often dropped them partway through the arduous ballot-qualification process…
The referendum strategy doesn't come cheap. It costs money to file measures, pay people to gather signatures, hire lawyers to review language and fend off challenges, and foot the bill for advertising and other expenses associated with mounting what is basically a political campaign.
The union has spent $21.2 million on ballot measures in California since the 2012 election cycle…

Politico: SEIU-UHW’s Dave Regan Spent $21.2 million on Ballot Initiatives

$21.2 million on ballot initiatives
SEIU-UHW President Dave Regan has spent $21.2 million on ballot initiatives since the 2012 election cycle, according to an article published this week in Politico. (Victoria Colliver, “California union leverages ballot initiatives for health care on its own terms,” Politico, February 5, 2018).

And, says Politico, he’s about to dip even deeper into the SEIU-UHW’s coffers.

This year, Regan has filed 10 initiatives for the November 2018 ballot -- “more referendums than in the past six years combined.” Yesterday, SEIU-UHW announced it’ll spend $3.5 million on advertising this year for just one of its 10 initiatives.

What does SEIU-UHW have to show for Regan’s multi-million dollar ballot-initiative bonanza?

Not much, says Politico.
Not a single one of its initiatives in recent years has taken effect. Of the seven statewide measures filed between 2012 and 2016, five were dropped before submitting signatures to qualify… [A sixth] was pulled before voting when an arbitrator ruled it violated an earlier agreement between SEIU-UHW and the hospitals.
 In a rare local victory, Santa Clara County voters in 2012 approved a salary cap at El Camino Hospital — but a judge later ruled the initiative process did not apply to health care districts.

If Regan is so fascinated with ballot initiatives, shouldn’t he be running a political consulting firm instead of a labor union?

After all, imagine if he’d spent those $21.2 million on worksite organizing, mounting aggressive contract fights to win better wages and workplace standards, training rank-and-file leaders, enforcing workers’ contracts…

So why is Regan pouring tens of millions of dollars of SEIU-UHW’s budget into ballot measures?

First, it keeps all of the power in his hands and those of his consultants and lawyers.

And it keeps the union’s members demobilized. No need to create strong shopfloor organization at Kaiser Permanente to fight concessionary bargaining when, according to Dave, you can simply file a ballot initiative. A demobilized membership means no threat to Dave's hold on power.

Thirdly, it lets Regan tell the membership he actually has some sort of plan to win. “Ballot initiatives – the new multi-million dollar miracle pill to solve all our problems!”

Of course, Regan’s ballot initiative strategy has another massive weakness. Laws can change. At some point soon, Tasty predicts the corporations will pass laws outlawing Regan’s use of California’s voter-initiated ballot measure system as a tool for exerting leverage on companies.

What’ll Dave do at that point?

Friday, February 2, 2018

Union Heads Meet with Kaiser CEO in D.C. over Dave Regan’s Ballot Initiative

SEIU's Mary Kay Henry and AFSCME's Lee Saunders

Dave Regan’s ballot initiative against Kaiser Permanente prompted a secret confab this week in Washington DC, say Tasty’s sources.

On Monday, Kaiser Permanente CEO Bernard Tyson reportedly met with top officials from the partnership unions, known as the Coalition of Kaiser Permanente Unions.

Who was in the room?

The presidents of many of the international unions that participate in the partnership including the AFT’s Randi Weingarten and AFSCME’s Lee Saunders

SEIU’s Mary Kay Henry reportedly attended a pre-meeting, but then ducked out of the room before the Kaiser CEO showed up. It looks like Mary Kay Henry didn’t want to face Tyson, who says SEIU-UHW’s ballot initiative would jeopardize the future financial stability of the HMO.

Meanwhile, Kaiser took another shot at Regan this week.

The HMO mailed a two-page letter to the homes of tens of thousands of SEIU-UHW members with the heading, “We need your help securing our future together: Help stop an attack on Kaiser Permanente.” The letter calls on the union’s members to contact Regan and tell him to “stop putting our future at risk.” Tasty guesses this is one piece of what’ll likely be a campaign to turn the hearts and minds of SEIU-UHW members against their erratic president.

Regan, after parachuting into California into 2009, surgically attached himself to the hips of Kaiser’s execs… even working with them to try to break strikes by NUHW and the California Nurses Association. So it’s not hard to understand why Regan’s recent attack on Kaiser -- which caused Kaiser execs to block SEIU-UHW from participating in upcoming national bargaining -- is causing SEIU-UHW’s members to scratch their heads.

Here’s a copy of the letter Kaiser sent to SEIU-UHW members:

Friday, January 26, 2018

SEIU-UHW Revises its Ballot Initiative as Kaiser Permanente Fires Back

 Dave Regan and KP's VP of HR Chuck Columbus during friendlier times
Here’s the latest on Dave Regan’s ballot-initiative battle with his erstwhile pals at Kaiser Permanente.

It appears that Regan’s team bungled the writing of the ballot initiative. More than a month after SEIU-UHW filed its initiative with the California Attorney General’s office, Regan’s lawyers notified the Attorney General that, umm, they were changing the initiative’s language.

On December 22, Regan’s lawyers sent a letter (see below) with “amended text” that that includes a bunch of changes and brand-new language that boost the length of the proposed initiative by 50%.

On January 22, the Attorney General’s office issued “title and summary” to SEIU-UHW’s ballot initiative.

The following day, Kaiser attacked the initiative in materials posted on its website.

Kaiser’s materials hint at one of the many obstacles SEIU-UHW will face. 

If Regan is successful in winning a very expensive election campaign to convince California voters to approve the initiative, the initiative could block Kaiser from increasing its monthly insurance premiums – which means no new money for pay increases and pension contributions for Kaiser workers, including SEIU-UHW’s members. Here’s an excerpt from the materials that Kaiser posted earlier this week:
The official analysis by the California Department of Finance and Legislative Analyst Office… confirms the negative effects that the measure would have on Kaiser Permanente. If enacted into law, the measure could… decrease the funds needed to support employee benefits including pensions and post-retirement medical benefits…”

Now... many unions -- including the hotel workers -- have run successful boycott campaigns in which unionized workers threaten the revenue stream of their own companies. But this requires high levels of organization among workers so they’re willing to threaten the so-called hand that feeds them. Are SEIU-UHW’s members well organized?

Another obstacle: Can Regan convince California voters to approve the initiative even as Kaiser (and presumably other insurance companies) mount a well-funded campaign to oppose it?

Finally, here’s one more excerpt from the materials Kaiser published this week:

What Is Really Going On Here?
The backers of this initiative claim their measure is needed because too many health plans are stockpiling cash while continuing to raise rates. But this initiative is written to leave out almost every health plan in California. And the one hit hardest, Kaiser Permanente, is hurt because of its hospital system, not because it has too much cash.
The truth is that this initiative was sponsored by the leadership of SEIU-UHW as retaliation after Kaiser Permanente refused to agree to the union’s inappropriate demands involving an inter-union dispute. In late 2017, SEIU-UHW requested that Kaiser Permanente bargain with them as the sole representative of the Coalition of Kaiser Permanente Unions (“the Coalition”). It would have been inappropriate — and a violation of our agreements with the Coalition — for Kaiser Permanente to negotiate with SEIU-UHW as the sole representative for the Coalition without explicit consent of the other nearly three dozen Coalition unions. When Kaiser Permanente refused SEIU-UHW’s request, SEIU-UHW filed this ballot initiative.

Friday, January 19, 2018

Insiders: SEIU Trustees Fire 10 Staffers Seeking to Run for Officer Positions at SEIU Local 73

At SEIU Local 73 in Illinois, two trustees appointed by SEIU President Mary Kay Henry have reportedly fired about ten members of the union’s staff after they announced plans to stand as candidates for the union’s executive board and top officer jobs as part of an opposition slate of candidates, according to insiders.

The firings by SEIU trustees Dian Palmer and Denise Poloyac come just weeks after more than a dozen members of SEIU Local 73 sued Mary Kay Henry in federal court in an attempt to force SEIU to end its trusteeship and to allow Local 73’s members to elect an executive board and officers to run the union of approximately 25,000 public-sector workers in Illinois and northwestern Indiana.

The fired staffers are part of a slate of candidates called “Members Leading Members,” which recently launched a website describing its candidates and platform. The website, which criticizes SEIU’s “disastrous trusteeship,” includes language like this:
instead of preparing the membership for self governance, like they promised, the Trustees are trying to extend the trusteeship or merge our local with [SEIU] Local 1 and/or HCII [SEIU Healthcare Illinois-Indiana].  All of this in spite of the fact that Local 73 members have repeatedly demanded elections and have expressed their anger clearly in the past 4 membership meetings in 2017. It is unfortunate that the International Union and the Trustees are not listening. For these reasons, we have launched our slate and have sent a strong message to the International Union in a petition that this Union belongs to us. We demand an election right now.
…Join the "Members Leading Members Slate" in our fight to restore the power of our Local to those who make it great: our very own members, not individuals selected by the International (SEIU).  We deserve the right to chose who leads our Union, not be dictated to by the International.

On January 8, Palmer and Poloyac sent an e-mail to all Local 73 staffers announcing the immediate suspension of staff members for “launch[ing] an attack on the Union that is seriously divisive to our unity…” (See a copy of the e-mail below.) 

Subsequently, approximately 10 staff members were fired from their jobs, according to internal sources.

Among the fired staffers is Remzi Jaos, who says he plans to run for Local 73’s president. Until his firing, Jaos directed Local 73’s Higher Education Division and earlier was a staffer at SEIU Local 1 and the Illinois Nurses Association, according to his bio on the “Members Leading Members” website.

Other fired staffers reportedly include Willie English (running for Secretary-Treasurer), Brenda Woodall (running for Vice-President, and Rick Loza (also running for Vice-President).  

When will internal officer elections at Local 73 actually take place?

Not clear.

A lawsuit, filed by 13 rank-and-file members of Local 73 on December 14th, asked a federal judge to order elections sometime in February 2018. In court filings, however, SEIU’s attorneys denied multiple allegations in the lawsuit and asserted that the court has no jurisdiction over this issue.

Meanwhile, SEIU officials have scheduled a “Leadership Conference” for January 27 and a membership meeting for February 10.

Stay tuned.