Corruption Allegations Prompt Mary Kay Henry to Put SEIU Healthcare Michigan in Trusteeship

Notice of trusteeship posted on door of union's office

Last month, SEIU President Mary Kay Henry placed SEIU Healthcare Michigan under an “emergency trusteeship” amid allegations of financial malpractice, according to a statement from SEIU that’s posted on the local union’s website. A copy of the trusteeship order, signed by Henry, is available below.

Henry removed Marge Faville Robinson, the union’s president, who is also a member of SEIU’s International Executive Board.

Later this month, an SEIU-appointed “Hearing Officer” is scheduled to conduct a hearing where evidence will be presented about alleged corruption and improprieties.

Here’s how SEIU described the rationale behind the trusteeship in a post on SEIU Healthcare Michigan’s website. Apparently, an unknown whistleblower reported the alleged corruption. (“SEIU Healthcare Michigan Placed into Emergency Trusteeship”)

After someone with knowledge of the local reported potential financial malpractice at Healthcare Michigan, representatives of the International Union conducted a review of the local union’s books and records and found information indicating abuse of the local union’s loan and paid time off/earned vacation policy. Following this review, President Henry concluded that it was necessary to place the local into an emergency trusteeship to protect the interests of members and to allow for a full investigation to determine all the facts.

“An SEIU spokeswoman declined to comment on whether police were involved in the investigation,” according to an article published by MLive, an online news site operated by Booth Newspapers, which publishes eight newspapers in the state of Michigan. (Stephen Kloosterman, “'Financial malpractice' alleged at Michigan healthcare union,” MLive, February 22, 2017)

In comments to a Detroit TV station, Inga Skippings (Mary Kay Henry’s Chief of Staff) stated that President Marge Faville Robinson and Secretary-Treasurer Shalaya Bryant were removed from their positions while SEIU officials investigate.

"The union took steps to bring in trustees at the local and launch a pretty expansive investigation into what could have been going on here," Skippings said.

The union says a whistleblower came forward telling representatives to look at the books leading to claims of abuse of finances specifically in the union's loan and vacation policy.

"There was initial work done to suss out the credibility before we took the action we did," Skippings said.

The union won't give a dollar amount, but clearly it was enough evidence to warrant both Robinson and Bryant being removed from their position while the union looks at how long and how deep this potential fraud goes.

Henry appointed three SEIU officials to serve as trustees: Tom Balanoff (President of SEIU Local 1), Inga Skippings (Henry’s Chief of Staff) and Ed Burke (a consultant who formerly was an SEIU staff member).

Regular readers of this blog know that Faville Robinson is no stranger to controversy. In fact, allegations of nepotism and corruption have swirled about her like detritus in a toilet bowl.

For example, Faville Robinson collects an unusually fat salary from SEIU Healthcare Michigan despite the fact that the union’s membership has nose-dived from 57,239 members in 2009 to only 10,715 members in 2015. In 2015, the union paid Faville Robinson $209,889, according to the union’s annual report filed with the US Department of Labor.

The union also happens to employ Marge’s daughter and niece. In 2015, the union paid her daughter, Norma Kersting, $108,336 for being its “Director of Representation.” Meanwhile, Marge’s niece (Brenda Robinson) was paid $110,679 to be the union’s “Legal Director.” It used to employ her son, Josh, too.

In 2011, the union provided Marge with a union-paid Buick SUV. According to the union’s most recent annual report, it appears the union has continued to give her a swank car. Here’s what a note to the report states: “A vehicle provided to an Officer is used part of the time for personal transportation.”

Several years ago, the National Union of Healthcare Workers (NUHW) -- an advocate of rank-and-file democracy and union transparency -- reported that SEIU Healthcare Michigan was renting a luxury apartment for Marge’s use when she traveled to Detroit.

In 2015, SEIU Healthcare Michigan received a flood of cash when it sold four buildings and properties for $2.3 million, according to reports filed with the Department of Labor.

Faville Robinson has served as the union’s president since 2008.

Andy Stern and Mary Kay Henry

In October 2008, SEIU President Emeritus Andy Stern appointed her to the union’s presidency after her predecessor, Rickman Jackson, was removed from office when the Los Angeles Times revealed he’d stolen more than $33,000 from low-wage homecare workers as part of the Tyrone Freeman corruption scandal.

Stern appointed Jackson and Freeman to their positions atop SEIU locals, where they served as his loyal allies while stealing from SEIU’s members. Jackson, despite his corruption, continues on the payroll of SEIU International, where he collected $138,000 as a “Campaign Organizing Director” during 2015.

In addition to her roles at the local union and SEIU’s International Executive Board, Faville Robinson also served as the President of the “Cassie Stern Healthcare Workers Education and Training Center.” Rickman Jackson named the center for Andy Stern’s deceased daughter.

In 2010, the Cassie Stern Training Center was dissolved by state officials while Faville Robinson served as its president, according to IRS records.

SEIU Healthcare Michigan is the third SEIU local union to be placed in trusteeship or under "monitorship" in recent months. 

In August of 2016, SEIU imposed an emergency trusteeship on SEIU Local 73 in Chicago. In December of 2016, Mary Kay Henry remove the president of Los Angeles-based SEIU Local 99 and placed the union under the control of an SEIU-appointed monitor, Eliseo Medina. In October of 2016, SEIU's International Executive Board held two days of hearings in Las Vegas, Nevada to investigate charges filed against the top officials of SEIU Healthcare Nevada.

More news to follow.

  SEIU's order imposing an emergency trusteeship on SEIU Healthcare Michigan: February 14, 2017 by tastysternburger on Scribd

SEIU Convention Resolution on Democratizing U.S. Presidential Endorsement Process Is Sent to SEIU's Circular File

At SEIU’s 2016 convention in Detroit, SEIU members raised concerns about union democracy inside SEIU… which were quickly quashed by a committee headed by members of SEIU’s International Executive Board.

Here’s what happened.

SEIU Local 1021 -- which represents 45,000 public-sector workers in Northern California -- presented a convention resolution that would have given rank-and-file union members a say in determining SEIU’s endorsement of US presidential candidates instead of simply allowing SEIU’s International Executive Board (IEB) to make the decision.

Local 1021’s resolution follows months of criticism directed at SEIU’s endorsement of Hillary Clinton.

On November 17, 2015, SEIU’s IEB endorsed Clinton even though large numbers of SEIU members had submitted petitions requesting a postponement of any endorsement due to support for Bernie Sanders.

A Politico article published in late 2015, “SEIU Battles over Bernie,” summarized the developments this way:

Fearful that the powerful labor union could soon endorse Hillary Clinton, supporters of Vermont Senator have petitioned top leaders to hold off on endorsing a candidate.

In another sign of discontent, SEIU Local 1984 -- which represents public-sector workers in the state of New Hampshire -- announced its endorsement of Sanders just two days after SEIU International endorsed Clinton ("New Hampshire SEIU Branch Backs Sanders”).

This recent history appears to be what caused SEIU Local 1021 to propose “Resolution 223” to the SEIU convention in Detroit, which ended earlier this week. The resolution reads in part as follows (full copy is below):

Clinton at SEIU's 2016 Convention in Detroit

Whereas: the democratic tradition in our nation and in our labor movement is founded on the idea that every person, every voice, every voter has a right to be heard; and…

Whereas: there is a crisis in government and voting with many feeling that the system is rigged, that their vote does not count and their voices not heard in the electoral process; and…

Whereas: the institution of the union must trust and engage the rank and file to discuss, debate and vote on their endorsement recommendation for President of the United State; and

Whereas: the union must demonstrate to the candidates for President of the United States the importance of being accountable to working people and our families by creating a process for endorsement for President of the United States that is democratic, inclusive, and accountable to the rank-and-file;

Therefore be it resolved that: SEIU International will develop a direct system of voting where all members may cast a vote for their preferred candidate for President of the United States using technology or another tool for vote casting and counting; and

Therefore be it further resolved that: the SEIU International will develop a committee of members from throughout the country to create an endorsement process and timeline, and the necessary infrastructure for direct member feedback on issues and endorsements for the President of United States and a process for the 2020 election cycle.

So what happened to the resolution?

It never saw the light of day.

Under SEIU’s rules, only resolutions approved by a small committee of SEIU officials are permitted onto the convention floor for debate and voting by delegates.

In this case, SEIU’s 19-person “Resolutions Committee” -- headed by SEIU IEB member Hector “AirBnB” Figueroa and including IEB members Meg Niemi and Marge Faville Robinson -- refused to send the resolution to the convention floor and instead “referred” it to the IEB for future discussion.

Translation?

It was sent to the circular file.

  SEIU Convention Resolution 223 on Democracy and Member Voices: May2016

SEIU Fatcats Sue Each Other in Michigan

Two factions inside SEIU Healthcare Michigan are brawling in federal court over upcoming union elections, according to a lawsuit filed in U.S. District Court (see copy below). The SEIU officials are apparently battling over who gets to stay on the union’s payroll after the union loses 45,000 of its members.

Here’s what’s going on:

Next year, SEIU Healthcare Michigan will hold internal elections for its officers, including president, secretary-treasurer, etc. In advance of the upcoming election, one faction of the union's officials -- headed by current President Marge Faville -- is trying to amend the union's constitution so as to change the rules by which candidates can be nominated for the election.

That's how the court brawl erupted.  Faville's faction wants to conduct a mail-in vote to approve the re-written constitution. A second faction -- headed by Secretary-Treasurer Johnnie Jolliffi and Recording Secretary Sheila Guinn -- says a mail-in ballot would violate the union's constitution. According to them, the constitution strictly requires an in-person membership meeting and a two-thirds majority vote before the constitution can be altered.

Last month, the Jolliffi/Guinn faction sued Faville and SEIU Healthcare Michigan in federal court. The lawsuit seeks an injunction to block SEIU Healthcare Michigan from conducting an illegal mail-in vote. Various Purple Palace officials are named in the court action, including SEIU President Mary Kay Henry and Executive VP Kirk Adams.

Here’s an excerpt from “Jolliffi el al (Plaintiffs) vs. SEIU Healthcare Michigan (Defendants).”

The Local Union, SEIU Healthcare Michigan, is trying to amend its Constitution without following the provisions of its Constitution and Bylaws. The main purpose is to change the procedures for nominating officers to be elected to the Local... Plaintiffs have complained to both the Local Union and the International Union about this action, but have received no satisfactory response. This matter is very urgent...

Defendant is violating the Local Constitution... Defendant's actions are illegal... Defendant is violating the Labor-Management Reporting and Disclosure Act of 1959... In total disregard of the provisions of its constitution, Defendant is preventing its members from discussing at a union meeting the important matter of an amendment to the union constitution… Defendant is violating Section 301 of the Labor-Management Relations Act of 1947… Defendant is liable for a breach of contract under state law.   

In order to bring this matter before the membership in the manner required by the local Constitution and Bylaws, Plaintiffs request a temporary restraining order and preliminary injunction.

So what’s fueling the bitter courtroom brawl? Apparently, the lawsuit is simply the public face of a much deeper battle for control over the rapidly dwindling membership of SEIU Healthcare Michigan. Tasty hears that the leaders of both factions -- Marge Faville, Johnnie Jolliffi and Sheila Guinn -- are all ineffective fatcats.

Faville, for example, pockets $172,000 a year from union members who mostly earn minimum wage. Do you remember SEIU’s famous slogan of “Fight for a Fair Economy?” Well, apparently the Purple Palace forgot to look in the mirror -- especially at the fact that SEIU officials are “living large” off the paychecks of impoverished workers, including the 45,000 members of SEIU Healthcare Michigan who earn only $8 an hour.

Jolliffi and Guinn are no better. Here’s what this trio of purple officials earned in 2011, according to the union’s filing with the U.S. Department of Labor. (Click on the image to enlarge it.)

SEIU Healthcare Michigan's Form LM-2 for 2011

Finally, here’s a full copy of the lawsuit:

JolliffiVsSeiuMichigan10-11-12

 

Election Aftermath: SEIU to Lose 45,000 Members in Michigan

The New York Times reports that SEIU suffered a massive defeat in Michigan during last week’s elections.

On Tuesday, voters in the Wolverine State soundly rejected SEIU's statewide ballot initiative, called “Proposal 4,” by a margin of 57% to 43%. The ballot measure -- backed by at least $15 million of SEIU’s campaign spending -- sought to re-write Michigan's state constitution in order to allow SEIU to continue representing the state’s 45,000 publicly funded in-home care workers. With the ballot measure voted down by a wide margin, SEIU Healthcare Michigan will now lose the 45,000 members -- or more than 80% of the union's statewide membership of 55,0000 members.

Here’s what’s happened:

Back in 2005, SEIU engineered a top-down deal with Michigan’s then-governor in order to allow the Purple Palace to unionize the state’s in-home care workers. But in the ensuing seven years, SEIU failed to win any real improvements for the workers. In fact, today the workers earn only $8 an hour -- little more than the minimum wage. Meanwhile, the homecare workers must pay 2.75% of their monthly wages in union dues to a notoriously corrupt local of SEIU headed by Marge Faville.

Recently, the state’s top political offices were captured by Republicans, who quickly worked to reverse SEIU’s top-down deal with the former Democratic governor. SEIU officials, with their backs against the wall, dreamed up a hail-mary effort to try to keep ahold of the 45,000 homecare workers.

Their solution? Change the state’s constitution through a ballot measure. Last Tuesday, SEIU’s effort suffered a resounding defeat despite $15 million of SEIU campaign spending, according to the Detroit News. SEIU’s gamble was giant. After all, in 2008 the Purple Palace spent $60 million across the entire U.S. to back Obama’s election campaign.

Since Tuesday, Tasty hears there’s been lots of finger-pointing inside the Purple Palace. One of the SEIU fatcats who’s sure to face a reckoning is Marge Faville, the president of SEIU Healthcare Michigan. Faville has pocketed more than $170,000 a year… along with a union-paid SUV that costs $47,242 and a union-paid corporate apartment that costs $17,600… but will soon see her local's membership shrink by more than 80%.

And that’s not all. Tasty hears that SEIU has a seriously bad rep among the state's homecare workers. In fact, with homecare workers earning near minimum wages after seven years under SEIU, observers speculate that many of SEIU’s own members voted against the Purple Palace’s ballot initiative.

A Trail of SEIU Corruption in Michigan... from the Rickmaster to Policicchio

Backroom deals with employers... No-show jobs for union officials... Nepotism... Money stolen from union members... These are just some of the details of SEIU's long trail of corruption in Michigan.

And there's more... An SEIU staffer reveals that one of SEIU's most corrupt fat cats -- Paul Policicchio -- is still pocketing $54,000 a year from SEIU's members through a "no-show" consulting contract with SEIU's local union in Michigan!

Policicchio was the union's president from 1988 until 1999, at which point he was pushed out of office for corruption. At the time, he was best buddies with Mary Kay Henry, Eliseo Medina and Andy Stern, who appointed Policicchio as an "Executive Vice President" for SEIU International in 1996.

Check out these excerpts from the SEIU staffer's email.  (B/t/w, "SEIU-HC-MI" refers to "SEIU Healthcare Michigan," which is the name of SEIU's local union in Michigan.)

The corruption at SEIU-HC-MI goes back way further than Marge [Faville] and Rickman [Jackson].  Rickman took over from Willie Hampton who was actually, believe it or not, more corrupt than Rickman, going around splitting charitable deductions that the union made with himself and making sure his relatives always got the local's scholarships every year.  His daughter was on the payroll for years even after Willie was long gone and she did absolutely zip, nothing, no one ever even saw her. 

But people used to say Willie was still better than PAUL POLICICCHIO who was the president before Willie.  Policicchio was pushed out of office for corruption and he is still showing up on the local's LM2s as a "consultant" being paid 50,000 a year and he hasn't been anywhere near the union in at least fifteen years.

Tasty checked up on the facts, and our source is right on! Here's an excerpt from SEIU Healthcare Michigan's most recent filing with the U.S. Department of Labor (you can click on the image below to see it better):

According to the government records, Policicchio also pocked $53,400 in annual "consulting" fees in 2008 and 2009. That's $160,000 in just three years for a no-show job... while most of the union's members -- who're homecare workers -- make little more than the minimum wage.

So how corrupt is Policicchio? Check out this blockbuster article in Labor Notes about his backroom deals with bosses and fat-cat thievery.

What other news does Tasty's source have to offer? Well, check out this description of an incident involving Rickman "The Rickmaster" Jackson, who was appointed as the president of SEIU Healthcare Michigan by Andy Stern. The Rickmaster served as president until 2008, when he was forced from office when the Los Angeles Times revealed how he'd stolen more than $30,000 from low-wage union members. 

When Rickman Jackson turned in his blackberry for a new phone, he forgot to clear out the text messages.  The employee who got his old phone turned it on and found dozens of sex-texts from five different women, none of them his wife, including a video of one of his girlfriends pleasuring herself for him.  But when the Rickmaster was being investigated for his double dipping, Gerry Hudson gushed to the executive committee that HE KNEW Rickman was "a man of the highest personal integrity".  I will never forget hearing that because this was after the phone thing which he got in trouble with the International over.

Ewww!... It's hard to imagine what else will emerge from the fetid cesspool that's inhabited by SEIU's top-paid officials.

Michigan Hospital Workers Join NUHW in Landslide Vote!

Today, technical workers at Mercy Health Partner's Hackley Hospital in Muskegon joined NUHW in a blow-out election victory over SEIU. The final tally of the NLRB election was 65 (NUHW), 9 (SEIU) and 3 (No Union). A total of 92 workers were eligible to vote in the election.

The technical workers first asked the NLRB to hold an election nine months ago, but SEIU officials worked overtime to block and stall the election while they ran rigged contract-ratification votes. Meanwhile, Dave Regan flew Amado David and other California staffers to Michigan to beg workers to stay in SEIU.

The Hackley caregivers are the second group of Michigan workers to join NUHW in recent months. In September, workers at Luther Manor Nursing Home in Saginaw voted by a two-to-one margin to join NUHW.

SEIU's local union in Michigan is well-known for its corruption and ineffectiveness. In 2008, Rickman Jackson was removed as President of SEIU Healthcare Michigan after stealing more than $30,000 from SEIU members. SEIU’s top officials promptly appointed him to a $130,000-a-year staff position inside the Purple Palace.

Jackson’s replacement in Michigan, Marge Faville, is well known for nepotism and corruption… including a $160,000-a-year salary, a union-paid SUV and a union-paid apartment -- despite the fact that most of the union’s members earn only $8 an hour.

Faville is reportedly so busy stuffing wads of cash into her pockets that she's forgotten to have SEIU staffers actually respond to members’ calls for help or to make sure employers are actually honoring their union contracts.

Sounds like NUHW members will be getting more calls from Michigan workers! Congratulations, Hackley workers!

Michigan Workers Vote NUHW!

This just in. The NLRB finished counting the ballots from today’s election at Luther Manor Nursing Home and… workers voted by more than a two-to-one margin to leave SEIU and join NUHW! The final tally was 47 (NUHW), 22 (SEIU), 1 (No Union) and 4 challenged ballots.

Sounds like it’s been quite a week for Luther Manor workers. Last weekend, SEIU tried to lure workers to a barbeque where SEIU promised to raffle off a flat-screen TV. Then, SEIU deployed 15 organizers who knocked on workers’ doors and pushed a fear campaign to try to convince them to stay in SEIU. This morning, when workers arrived at work, they found 8 purple-shirted SEIU organizers standing on the corner near the nursing home trying to offer workers free coffee and donuts.

In the end, all of SEIU’s tricks, bribes and threats weren’t enough to overcome workers who stood strong through repeated rounds of SEIU’s hookin’ & crookin’ … from backroom deals with the boss … to ballot-box stuffing … to SEIU’s forced re-votes of already-rejected contract deals.

The workers are NUHW’s first members in Michigan.  Although not for long. Workers at CHP’s Hackley Hospital are waiting for the NLRB to cut through SEIU’s stalling tactics so they can have their vote. Congrats, Luther Manor workers!!