When workers don’t have a choice whether or not to join a union and pay dues, union bosses take advantage of the situation. Case in point is California’s largest local union that has paid hundreds of thousands of workers’ dues money to firms owned by the wife and mother-in-law of the labor organization’s boss.
The Los Angeles Times discovered:
The Los Angeles-based union, which represents low-wage caregivers, also spent nearly $300,000 last year on a Four Seasons Resorts golf tournament, a Beverly Hills cigar club, restaurants such as Morton’s steakhouse and a consulting contract with the William Morris Agency, the Hollywood talent shop, records show.
In addition, the union paid six figures to a video firm whose principals include a former union employee. And a now-defunct minor league basketball team coached by the president’s brother-in-law received $16,000 for what the union described as public relations, according to the union’s U.S. Labor Department filings and interviews.
Most of the 160,000 people represented by the union, a local chapter of the nation’s fastest-growing labor organization, the Service International Employees Union [sic], earn $9 an hour or slightly more tending to the infirm and disabled in private homes under taxpayer-funded programs. The workers, whose dues fill the local’s coffers, often are described as “the poor caring for the poor.” In its Labor Department filings, the local, headed by Tyrone Freeman, has reported more liabilities than assets for each of the last three years. . . . .
Based on documents filed with the Labor Department and Internal Revenue Service, the Guidestar nonprofit database, business records submitted to several state and local agencies and numerous interviews, a Times investigation has also found that:
* Payments to the company owned by Freeman’s wife were among the local’s largest single expenses last year. Payments by the charity, the Homecare Workers Training Center, to his mother-in-law’s firm represented more than 10% of the nonprofit’s total annual expenditures.
* A housing corporation that Freeman helped found as a nonprofit has not been granted the IRS tax-exempt status it sought and was suspended from doing business in California. It also has claimed on its website to have a “strong relationship” with the prominent California Community Foundation, which says it has no such relationship.
* The union spent at least $123,000 more on the fund-raising tournament at the Four Seasons Resort in Carlsbad than it received in reimbursements, according to Labor Department filings and interviews. Freeman said the event made money for the charity. The union’s expenditures included $100,000 in payments to entities associated with former professional football star Eric Dickerson, which have been suspended from doing business in California. The payments were listed as donations to nonprofits, not as fund-raising expenses.
* The local’s nearly $10,000 tab at the Grand Havana Room, a cigar lounge known for its celebrity clientele and invitation-only memberships, was for “lodging,” according to the union’s annual financial report. A Grand Havana spokeswoman said the club does not provide accommodations. Freeman declined to characterize the expenditure, and after The Times inquired about it, he said he had refunded it.
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