Friday, March 17, 2017

Will Trustees Shed Light on Andy Stern's "Golden Handshake" with Former SEIU Official in Michigan?

With SEIU Healthcare Michigan under an emergency trusteeship due to allegations of financial malpractice, Tasty took a look at the union’s recent financial disclosure reports and discovered some interesting details.

During recent years, the union has paid hundreds of thousands of dollars to Paul Policicchio, the union’s former president, even though Policicchio resigned his position more than 15 years ago.

According to the union’s annual reports to the US Department Labor (Form LM-2), SEIU Healthcare Michigan has been paying Policicchio $53,400 a year for many years. 

And the payments have continued through 2015, the most recent year for which records are available, even though Policicchio died in 2013.

What are the payments for?

In some years, the union says the payments were for “Consulting Services.” In other years, it describes them as “Retiree Supplement.”

In November of 2013, when Policicchio died at age 63 following a battle with cancer, SEIU Healthcare Michigan began making the $53,400-a-year payments to his wife, according to the records.

For what alleged purpose?

In 2015, SEIU Healthcare Michigan paid her $53,400 for serving as a “Retiree Consultant,” according to the records.

What’s going on?

Tasty’s sources believe these payments are part of a “buyout” engineered by SEIU President Emeritus Andy Stern.
Andy Stern

In 1988, Policicchio became the president of Detroit-based SEIU Local 79, the predecessor union of SEIU Healthcare Michigan. He also was named an SEIU International Vice President in Washington, DC.

In 1996, Stern took office as SEIU’s president and reportedly wanted to move Policicchio out of SEIU so he could fill Policicchio’s position with one of Stern’s allies. So Stern allegedly engineered a “buyout” to coax Policicchio out the door. 

In 2001, Policicchio retired from SEIU at age 51 with an SEIU pension and Stern’s fat “golden handshake” in his pocket.

Sources believe Stern’s “buyout” likely included a “gag clause” that barred Policicchio from saying anything bad about Stern, SEIU or the buyout.

So just how big was Stern’s alleged “golden handshake?”

Hard to say.

But perhaps Mary Kay Henry and her trustees -- Tom Balanoff, Inga Skippings, and Ed Burke -- can take a look at SEIU Healthcare Michigan's books and shed some light on this six-figure, purple-hued mystery. Inquiring minds want to know.