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Ask UHW-W to Account for $3 Million in Dues Money

Background

In May 2007, the executive board of United HealthCare Workers-West went into a “closed” session and created a separate organization called the “United Health Workers and Patients Education Fund” using UHW-W members’ dues.

The stated purpose of the fund was “to provide education to healthcare workers and patients concerning issues related to the healthcare crisis, as well as to other issues of importance to healthcare workers and their patients.” No reason was given why the educational activities that are already a normal part of UHW-W’s work suddenly required a special fund created behind closed

After the existence of this outside fund was exposed, SEIU investigated and received records from UHW-W suggesting that hundreds of thousands of dues money have been spent improperly and in violation of the officers’ fiduciary duties under federal law.

Top UHW-W Officers Violated Federal Law, Deceived Members in Diverting Millions in Dues Money to Outside Fund

SEIU filing lawsuit to ensure return of members’ money
to UHW-W treasury from outside fund

Washington, DC – Ten top officers of SEIU local union United Healthcare Workers West (UHW-W) violated federal law and deceived their members when they authorized and diverted millions of dollars in dues money to an outside fund under their exclusive control, according to a lawsuit being filed today by SEIU in United States District Court for the Central District of California.

SEIU is bringing the lawsuit against the ten directors of the fund seeking to return to the UHW-W treasury $3 million in UHW-W members’ money that is known to have been diverted.

In May 2007, a select group of ten top officers of UHW-W instituted a plan to divert up to $6 million -- nearly 40 percent of UHW-W’s net assets – while deceiving UHW members and the federal government about the purpose of the fund. The ten officers are UHW-W President Sal Rosselli, Executive Vice President Jorge Rodriguez, Secretary Treasurer Joan Emslie, and seven members of the local union’s executive board

“The highest ranking UHW-W officers used millions of dollars in members’ dues money to run a shadow operation off the books and they intentionally deceived their own members and the federal government about how the money would be used,” said SEIU spokesperson Andrew McDonald. “It is unacceptable for a handful of people to control nearly 40 percent of a local union’s assets with no accountability to the members, no financial safeguards, no protections against fraud, and none of oversight required by law.”

Read the full press release >>

Read the complaint that is being filed in U.S. District Court in California today (109KB PDF) >>

Read the background summary (30KB PDF) >>

Ask UHW to Stand for Inter-Con Officers
Inter-Con security officers protect Kaiser Permanente patients and workers every day but are the only workers inside Kaiser facilities without a union, fair pay and benefits, or even paid sick days.

Inter-Con officers have asked United Healthcare Workers-West to support their efforts and to call on Kaiser to ensure that Inter-Con allows them to freely unionize and if not, to switch to a contractor that will. However, for over 2 ½ years they have not seen any progress. They have had to strike and endure illegal harassment and intimidation from Inter-Con and Kaiser, and still nothing has changed.

Now is the time for UHW-West to take a stand and support these workers' efforts.

Send a message to leaders on the UHW-West Executive Board and ask them to support Inter-Con workers>>

Inside SEIU FactChecker

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