SEIU’s Bold New Vision for the Future?

Ever wonder what SEIU will look like in the future? Well, it may look a lot more like “AETNA” than the “AFL-CIO.” That’s according to internal documents that offer a revealing glimpse into SEIU’s newest local union.

At SEIU’s most recent convention in Puerto Rico, Andy Stern and Mary Kay Henry literally gushed about SEIU’s newest affiliate, the “State Employees Association of North Carolina” or “SEANC.”  The local, which represents 55,000 state employees, is now called “SEIU Local 2008.”

What does Local 2008 actually do? According to memos penned by two officials at SEIU Local 521, SEIU’s newest union is pretty much a giant insurance company that spends its time selling insurance products to workers. The two California officials visited North Carolina and then wrote memos for Local 521’s president, Kristy Sermersheim, about their experiences.

According to a memo authored by Chuck Waide (Regional Director of SEIU Local 521), “the primary function” of Local 2008 is “selling insurance.” In fact, Local 2008 has 14 insurance salespeople and, says Waide, is “very efficient and well organized in marketing voluntary insurance programs” to the union’s members. Here’s an excerpt from Waide’s memo:

And how many staff people are actually available to help the union’s 55,000 members with grievances, arbitrations, contract enforcement, bargaining, etc?  According to Waide:

 Waide, in an apparent effort to reassure his readers, then writes:  

Now, Tasty ain’t no Einstein, but how can you be a union if you have no “member committees dealing with labor relations,” “no shop steward program” and just 3 Union Reps for 55,000 members?

So where does workers’ dues money go? Good question. Perhaps it pays the salaries of all the insurance salespeople and bill collectors.

In Tasty's book, this ain't no "bold" and "visionary" future for the labor movement. It's a frickin' nightmare on Elm Street! The memos offer one more sign of the ongoing AETNA-ization of SEIU. After all, SEIU’s “call centers” for handling workers’ grievances fit neatly into this vision that's styled on the insurance industry.

Now, that's not to say that this new direction may be plenty "bold" and "visionary" for certain of SEIU's elite officials. After all, Mary Kay Henry and President Emeritus Andy Stern would be next in line to become the CEO of this giant insurance company (a.k.a. “union”). In fact, Tasty bets that Dave Regan is simply salivating at the chance to pocket more money, on top of his $300,000 salary, once he gets a seat on the insurance company’s board of directors!

P.S. In case you wanna read the full memos from the officials at SEIU Local 521, you can find them here.

SEIU Hit by Multi-Million-Dollar Spending Scandal

SEIU officials are pulling the plug on a failed scheme that wasted an estimated $20-$25 million of members’ dues dollars over the past three years, according to this internal SEIU memo that's discussed in this recent article. Here's what happened.

Remember the 2008 SEIU Convention in Puerto Rico? That’s where SEIU officials pushed through their “bold” idea of building nationwide 1-800 call centers to handle members’ grievances. They also decided to centralize local unions’ accounting, dues-collection and other "back-office services" into a national business office controlled by SEIU International.

Stern and Mary Kay Henry predicted that, by 2012, one million SEIU members would be participating in this new scheme. They even re-wrote SEIU’s constitution to permanently cement the new centralized system into SEIU.

After the 2008 convention, they set up a for-profit corporation called “Member Action Service Center (MASC).” They then got $2 million in tax breaks from the State of Michigan and pumped millions of dollars of SEIU members’ dues money into their for-profit venture.

One small problem: it was a massive failure. The price? An estimated $15-$20 million of wasted dues. Check out SEIU’s internal memo, which has statements like this:

“SEIU’s finance staff estimates that we will have spent $14 million in setting up and operating the MASC in its first year.” (p. 6)

“In no scenario we reviewed was the MASC self sufficient and no scenario included any possibility that SEIU’s investment would be recovered in the foreseeable future.” (p. 6)

"The President should appoint someone to develop a contingency plan that will prepare us for shutting down the operation... a course of action to mitigate the financial impact of a shutdown and the impact on locals already enrolled." (p. 11)

Tasty's got a few simple questions:

Will SEIU officials be held accountable for flushing $20-$25 million of members' dues money down the toilet?

If Bruce Raynor got axed for $2,300 in dinner receipts, shouldn't Mary Kay Henry, Eliseo Medina and Tom DeBruin pay a price for flushing millions of dues dollars down the drain?

Why have SEIU officials hidden the news of this financial fiasco from the membership?

Mary Kay? Eliseo? Tom? Your turn now…

Where did all the organizers go? Outsourced for something cheaper!

Apparently the state of Michigan's Economic Development Corporation gave $2 million to SEIU to locate a call center in the state. This will create hundreds of jobs for organizers? Nope, the staff will be operators to "service" the Michigan members.

SEIU lays off the organizers and get Redevelopment $ for call center operators?

Let's hope that SEIU Michigan members hold these call centers accountable...

check out the story here