SEIU Boss Indicted

SEIU Boss Indicted

After a four-year investigation, federal authorities have charged the former powerful SEIU union boss with corruption. The Los Angeles Times describes Tyrone Freeman as "a rising young star in the national labor movement, already the head of California’s biggest union local and a force in Democratic politics from Los Angeles to Washington, D.C." The Times reports: Freeman’s quick climb up the ranks of the powerful Service Employees International Union burnished his reputation as an effective advocate for the disadvantaged, a man who helped improve the lot of about 190,000 workers paid about $9 an hour to provide in-home care for the infirm. On Tuesday, however, Freeman was indicted on federal charges of stealing from those workers to enrich himself, including by billing the union for costs from his Hawaii wedding. The 15-count indictment secured by the U.S. attorney’s office in Los Angeles also alleges that Freeman violated tax laws and gave false information to a mortgage lender. If convicted on all counts, he could face maximum prison sentences in excess of 200 years. The charges resulted from a nearly four-year investigation by the U.S. Labor Department, FBI and Internal Revenue Service that grew out of a series of reports in the Los Angeles Times on Freeman’s financial dealings as president of SEIU Local 6434. The resulting scandal spread through the 2-million-member SEIU and cost several other union officials their jobs. Citing records and interviews, The Times reports showed that Freeman, 42, funneled hundreds of thousands of dollars of his union members’ hard-earned dues to his relatives and lavished similar sums on golf tournaments, expensive restaurants and a Beverly Hills cigar club. Last month, his wife pleaded guilty to an income tax charge in connection with more than $540,000 she received in union consulting payments at Freeman’s direction.
New Mexico is Right for Right to Work

New Mexico is Right for Right to Work

[media-credit id=7 align="alignright" width="300"][/media-credit]Eric Fruits, the president and chief economist at Economics International Corp., an economics consulting firm, makes the case on why passing a Right to Work statute in New Mexico would help create jobs and prosperity: Right-to-work legislation is one of the very few pro-growth policies that is virtually costless to enact. And a large body of research has found that it benefits states economically. New Mexico, along with much of the country, still struggles to recover from a recession that began more than four years ago. While the state has benefited from the recent energy boom, states like New Mexico have struggled to cope with the employment consequences of the recession. In response, policymakers have tended to focus on fiscal policies such as tax cuts and “stimulus spending” rather than market structural solutions. Right-to-work laws can be a key component of a pro-investment and pro-employment package for New Mexico that encourages firms to locate and expand in the state. A large body of research has found that, as a group, right-to-work states have enjoyed more rapid employment growth, better job preservation and faster recoveries from recession that states without right-to-work laws in place. New Mexico has recognized this when the Legislature passed right-to-work legislation twice – in 1979 and 1981 – only to see the legislation vetoed by then-Gov. Bruce King. Proponents of right-to-work legislation argue that individuals should have the choice of whether or not to join a union and that the choice of whether to join a union should not be a condition of employment. They point to the relatively rapid growth in employment and incomes in right-to-work states relative to non-right-to-work states.