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Election Fundraising Fraud: Granite State Union Bosses Illegally Divert Worker's Dues Money to Union PAC

When Nashua, New Hampshire postal worker Philip Wakeman paid dues to the National Post Mail Handlers Union (NPMHU), a division of the Laborers' International Union, he had no idea that union bosses would illegally launder his money into their political coffers.

In July 2006, Mr. Wakeman gave a check to the NPMHU union for the full amount of his annual union dues. On the "Memo" line at the bottom of the check, he wrote "Union Dues."  A union official later acknowledged receipt of the dues and everything seemed fine – that is – until he received a bizarre phone call.

In October 2008, over two years after submitting the check to the NPMHU union, a stranger informed Wakeman that she found his information on the internet and suggested he do a "Google" internet search of his name. The search results were astounding:  Mr. Wakeman found his name disclosed as making a contribution in the exact amount of his annual NPMHU union membership dues to the NPMHU Political Action Committee (PAC) – all without his knowledge.

Apparently NPMHU union bosses had illegally diverted his dues payment to the union's PAC.  Wakeman contacted the National Right to Work Legal Defense Foundation and Foundation attorneys filed a complaint with the Federal Election Commission. 

It is illegal for union officials to fund union PACs using "dues, fees, or other moneys required as a condition of membership in a labor organization."  NPMHU union bosses are also accused of violating federal election law by making a political campaign contribution in another person's name and failing to inform Mr. Wakeman that his membership dues would be used for political purposes.

To read the Foundation's media release regarding the FEC complaint, click here.

To read the FEC complaint, click here.

Obama: "Tear Down This Notice!" Executive Order To Keep Employees In the Dark Takes Effect

Regular Freedom@Work readers will remember our extensive coverage of Barack Obama's numerous executive orders (during the first month of his Presidency) paying back union bosses for their efforts getting him into the White House.

Yesterday, a provision in Obama's January 30 executive order took effect -- revoking former-President Bush's February 2001 executive order which required federal contractors to post notices in the workplace simply informing employees of their right to refrain from formal, dues paying union membership and withhold forced dues for everything but the documented cost of collective bargaining. 

The Obama directive is intended to ensure millions of workers do not learn of their right, won in the National Right to Work Foundation's precedent-setting U.S. Supreme Court victory Communication Workers v. Beck, to withhold forced union dues earmarked for union politics, lobbying, and other non-bargaining activities.

This is just the first of many steps by Barack Obama and his Big Labor cronies (for example, his Labor Secretary Hilda Solis) are already taking to help union bosses to seize more forced dues revenue to fund Big Labor’s political agenda.

U.S. Supreme Court Agrees With Right to Work Foundation: Unions Have No Right to Payroll Deduction

News Release

U.S. Supreme Court Agrees With Right to Work Foundation: Unions Have No Right to Payroll Deduction

More effective alternative would have been stopping government payroll deduction for all union dues

Washington, DC (February 24, 2009) — The U.S. Supreme Court today ruled 6-3 in Ysursa v. Pocatello Education Association that states may prohibit union officials from using payroll deduction to divert government workers’ money into union coffers.

In overturning a Ninth Circuit appeals court decision and upholding an Idaho law banning payroll deduction for union political dues from state and local government employees, the majority opinion, written by Chief Justice John Roberts, agreed with arguments made by National Right to Work Foundation attorneys. The lower court had blocked the state from requiring local government bodies to comply with the state law.

National Right to Work Legal Defense Foundation attorneys – joining with the Sutherland Institute, Utah Taxpayers Association, and the National Federation of Independent Business – successfully argued in their amicus brief (pdf) that unions, in fact, have no constitutional right to use government resources to deduct dues from workers’ paychecks.

“The Supreme Court's decision makes clear what should be obvious, that union officials have no constitutional right to use government resources to line their pockets,” said Stefan Gleason, vice president of the National Right to Work Foundation. "It is bad public policy for government bodies essentially to act as bagmen for union political monies.”

(Continue reading this news release...)

National Right to Work Podcast - Episode 2: Big Labor's Political Spending Machine At Full Tilt

Episode 2 of the Foundation's weekly podcast is now available online for download.

Foundation VP Stefan Gleason discusses union politics and Big Labor's massive fundraising apparatus with Stanley Greer, program director at the National Institute for Labor Relations Research. Greer pegs the amount of money (largely funded with dues collected under from workers forced to pay) that Big Labor will be spending on this election at $1.2 billion or more, and explains the many ways union bosses funnel money to their hand-picked candidates. Listen here:


You can also subscribe to the Foundation's podcast via iTunes or manually subscribe to the feed.

NEA Bigwig Owes Teachers an Apology

Considering the record electioneering by Big Labor in 2008, it should be no surprise that union bosses were well-represented at this week's convention. NEA President Reg Weaver was one of the many union officials awarded for his union's political expenditures with a prime speaking slot.

Larry Sand, a teacher for 27 years and former NEA member, sent Weaver an e-mail after listening to a gross misrepresentation of reality in Weaver's DNC speech:

In the first paragraph you say, "I am here today on behalf of 3.2 million NEA members to tell you why we support Barack Obama for President of the United States." Wait a minute. It sounds as if all 3.2 million members of the NEA are supporting Obama. Then in the last sentence, you leave no doubt. "That, my friends, is why the 3.2 million members of the National Education Association are organized, energized and mobilized to help elect Barack Obama as the next president of the United States of America." This last statement is an outrage.

You have been quoted on more than one occasion that "the NEA is one-third Republican," which means that there are over one million Republican NEA members. It is audacity of the highest order to state unequivocally that these people will be "organized, energized and mobilized" to vote for a Democrat. I have been a classroom teacher for over 27 years and for many of those an NEA member, before resigning from the "Association" several years ago. I would strongly urge you to issue an apology to those Republicans still in the NEA and the American public in general for what really is a ludicrous statement.

If Weaver ever gets around to apologizing, he shouldn't only do so to the million-plus members who are Republicans since as many more are independents. Not to mention the countless Democrats who aren't in lockstep with the radical agenda of Weaver and the NEA's top brass -- many who may not even be supporters of Reg Weaver's presidential pick. And remember, these teachers are forced to finance the NEA's political activism.

As it happens, Mark Mix, President of the National Right to Work Foundation, has an op-ed on the problems of teacher union monopoly power in today's Pittsburgh Tribune-Review. Also check out this column in the Providence Journal from Gary Beckner, executive director of the Association of American Educators, a nonprofit professional teachers association that is entirely voluntary.

SEIU Insider Blows the Whistle on Union's Dirty PAC Fundraising Scheme

The National Right to Work Foundation's letters calling for an investigation of the SEIU union's apparently illegal scheme to coerce "donations" for its Political Action Committee (PAC) prompted this excellent editorial in the Wall Street Journal.

Now that editorial has caused a local union official to blow the whistle in this letter to the editor. Aside from cheering the Foundation's efforts, her letter alludes to another problematic aspect of the SEIU union's dirty political fundraising scheme.

Marlene Jones, a registered nurse who is also the head of her Pennsylvania-based SEIU local, writes the following:

I have been a member of the Service Employees International Union (1199P) for 27 years. I am the president of a local nurses union in Pennsylvania. Every day I experience the pressure for our local nurses union to have all of our members contribute to the Political Action Committee fund. SEIU even goes as far as telling its locals that if a percentage of its members contribute, they will receive 1% of their high union dues back to the locals.

[emphasis added]

So on top of the SEIU constitutional amendment penalizing SEIU locals by seizing dues money when they don't hit PAC fundraising goals, Ms. Jones says top SEIU bosses are promising conditional kickbacks of certain union dues seized from workers and sent to the International affiliate. But those kickbacks apparently do not occur if the local union fails to meet the SEIU's PAC fundraising mandates. This could be yet another way SEIU bosses are in violating federal law by securing PAC "contributions" with the threat of financial reprisals.

Nurse Jones ends her letter with the following plea:

When will it end? Good luck with the investigation. Our members do not want to contribute to the PAC fund.

Even a Big Labor Ally Concedes the SEIU May Be Breaking Federal Election Law

Yesterday, a pro-Big Labor blogger at OpenLeft inadvertently highlighted the absurdity of the SEIU's apparently illegal fundraising scheme (emphasis mine):

If the local doesn't put enough money into the national PAC, they will have to pay a penalty of regular funds out of union dues to the international. PAC contributions are voluntary and only come when members feel empowered, whereas union dues are automatic, so this is a strong incentive for locals to organize and empower their members. It's a good policy move, and it was voted on and ratified at the SEIU Convention.

Surely the author realizes that there's some tension between "voluntary contributions" and an SEIU policy that penalizes local affiliates for failing to meet MANDATORY political fundraising targets? Actually, he does:

The requirement and penalty do somewhat cut against what it means to voluntarily give to political causes. A possible lawsuit might be viable.

For sure. Here's the relevant section of US code quoted in the National Right to Work Foundation's letters (.pdf) to the Departments of Justice and Labor (emphasis mine):

(2) For purposes of this section and section 79l(h) of title 15,[1] the term “contribution or expenditure” includes a contribution or expenditure, as those terms are defined in section 431 of this title, and also includes any direct or indirect payment, distribution, loan, advance, deposit, or gift of money, or any services, or anything of value (except a loan of money by a national or State bank made in accordance with the applicable banking laws and regulations and in the ordinary course of business) to any candidate, campaign committee, or political party or organization, in connection with any election to any of the offices referred to in this section or for any applicable electioneering communication, but shall not include

. . .

It shall be unlawful—

(A) for such a fund to make a contribution or expenditure by utilizing money or anything of value secured by physical force, job discrimination, financial reprisals, or the threat of force, job discrimination, or financial reprisal; or by dues, fees, or other moneys required as a condition of membership in a labor organization or as a condition of employment, or by moneys obtained in any commercial transaction;

No political expenditures " . . . secured by financial reprisals or the threat of financial reprisals?" Sounds like a pretty explicit violation of U.S. law.

The SEIU's political fundraising apparatus is absolutely enormous. As the author of the OpenLeft post notes, its institutional clout and massive campaign expenditures dwarf other organizations' contributions. But coercing local SEIU affiliates into bankrolling a national campaign strategy has the potential to irreparably taint our electoral process. When even a pro-Big Labor mouthpiece concedes the viability of the Foundation's case, it's time for the Departments of Labor and Justice to take action.

ADDENDUM: Here's more commentary on the political implications of the SEIU's fundraising from QandO and Protein Wisdom.

"Union Bosses of the World Unite!"

Last week, officials from the United Steelworkers union and "Unite the Union" -- among the largest unions in North America and the United Kingdom -- announced that they had signed an agreement to merge into a single, global union. From their joint press release:

Consistent with this calling, Workers Uniting will "match our words with action and resources, utilizing our collective expertise and knowledge through collective bargaining, organizing, global political action and international solidarity."

What might this "global political action" include? Among other activities... "Exposure to the political processes in each other's countries, including Democratic Party primaries and Labour Party conferences."

Initially, the two unions claim, "Workers Uniting" (though "Union Bosses Uniting" would be a more accurate name) will operate with a budget of several million dollars.

Of course, the press release fails to mention that the bulk of the budget will be funded by forced union dues from American workers who never asked for globalist union "representation" in the first place.

Big Labor Unleashes Record Political Activisim

Yesterday, the AFL-CIO officially endorsed its candidate for president. The endorsement should come as no surprise, of course, since Big Labor has always used member dues -- and forced dues from nonmembers -- to support its Far Left political agenda. But this year's campaign will apparently be the largest and most expensive yet:

This year, the AFL-CIO is carrying out its largest grassroots political mobilization in history. Thousands of volunteers are helping educate millions of workers and mobilizing them to get to the polls to elect Barack Obama and a working family-friendly Congress. The AFL-CIO union movement is focusing on mobilizing more than 13 million union voters―including union members, families of members, retirees and members of the AFL-CIO community affiliate Working America―in 24 priority states, working to elect U.S. senators and representatives, as well as state and local candidates.

An Associated Press report reports how much money Big Labor is admitting it will spend on electioneering. (While large, the numbers below understate by several hundred million dollars Big Labor's true political spending this year, according to our research.):

As expected, the leaders of the nation's largest labor organization voted unanimously to endorse Obama, freeing the organization and its 56 unions to spend some of its $200 million war chest on his campaign.
...
Between the AFL-CIO and its chief rival, the Change to Win labor organization, the nation's labor movement plans to spend around $300 million on the 2008 elections. Change to Win, made up of seven powerful unions that broke away from the AFL-CIO in 2005, already has endorsed Obama. The AFL-CIO represents 9 million union members; Change to Win, 6 million.

Big Labor "represents" so many workers because forced unionism laws compel workers in 28 states to join or pay dues to a union. Even in Right to Work states, many workers are unaware of their rights, and in some cases union bosses pretend Right to Work laws don't even exist. Legally, thanks to Foundation-won Supreme Court cases Abood v. Detroit Board of Education, Chicago Teachers Union v. Hudson, and Communications Workers of America v. Beck, workers can be forced to pay dues for unwanted bargaining, but may opt out of paying dues which union bosses use on non-bargaining activities such as union politics, lobbying, and member-only events.

But as we so often see, union officials frequently trample these constitutional rights. Last week, the Foundation announced a settlement reached between an Alaska state employee and the Alaska State Employees Association union, an AFL-CIO affiliate. ASEA union officials threatened Hunsick's dismissal for refusal pay full union dues. Hunsick did not want to support the union's political and ideological agenda, but union bosses continually denied him the procedural safeguards guaranteed under Hudson.

When an AFL-CIO activist knocks on your door and hands you a pamphlet explaining who to vote for, keep in mind that the funding behind it all might just be seized at gunpoint (figuratively speaking, in most cases) from folks like Robert Hunsick.

WSJ: Repeal of Right to Work Laws High on Union Officials' 2008 Agenda

 

Today's Wall Street Journal points out that union officials are pouring upwards of a billion dollars, much of it in compulsory dues, into the 2008 election cycle. The goal? A sea change of American labor law.

"This is an all-in bet for them in 2008," says Mark Mix, president of the National Right to Work Committee, a group that fights down in the trenches against coercive union power. "As market cycles go, they're in their peak, we're in our trough, and they're looking for a clear two-year run" in an all-Democrat Washington.

Then there's the crown jewel:

Tucked into the 1947 Taft-Hartley Act is a provision called 14(b), which allows for "right to work" states. Big Labor last took a run at deleting this section, and forcing more unionization, in the Johnson administration.

Aside from abolishing employees' free choice of whether or not to join or pay dues to a union, wiping the current 22 state Right to Work laws off the map would deal a crushing blow to the American economy.

According to a recent study by the National Institute for Labor Relations Research, forced unionism cost the American economy upwards of $436 billion in GDP between 2000-2006 alone.

The yoke of compulsory unionism already takes a severe toll on states without Right to Work laws, the last thing America needs is to expand its reach.


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