Hearing Officer to Review Evidence of Fraud, Retaliation and Misappropriation

Washington, D.C. - The Service Employees International Union (SEIU) today announced the selection of nationally respected labor expert and former US Labor Secretary Ray Marshall to act as outside hearing officer in the International's proposed trusteeship over its Oakland-based local, United Healthcare Workers-West (UHW-W).  The International notified UHW-W last month that it would seek oversight of the Local following allegations that its leaders engaged in a pattern of retaliation, financial malpractice and fraud involving the diversion of millions of dollars of union treasury monies, in possible violation of federal law.

Currently Audre and Bernard Rapoport Centennial Chair in Economics and Public Affairs at the University of Texas LBJ School of Public Affairs, Secretary Marshall served as U.S. Secretary of Labor under President Jimmy Carter between 1977 and 1981.

As a labor arbitrator, Secretary Marshall has served on the panels of the American Arbitration Association and Federal Mediation and Conciliation Service.  He is active on numerous boards, including the National Center on Education and the Economy and the Work in America Institute.  Past and present memberships include the Citizens Commission on Civil Rights, the State Department's Advisory Council on Labor Diplomacy, City of Austin's Social Equity Commission; the National Manpower Advisory Committee; and the National Manpower Policy Task Force.

Secretary Marshall has authored or co-authored over 30 books and monographs and is a recipient of the AFL-CIO's Lewis-Murray-Reuther Social Justice Award.  He received his Ph.D. in economics from the University of California at Berkeley.

At a hearing set for September 26-27, Secretary Marshall will review significant evidence in support of allegations set forth in the Union's Notice that UHW-W leaders created an illegal scheme to divert $6 million dollars of members' money off the union's books into an outside fund; improperly used $500,000 of members' funds to create a legal defense fund for their protection; unlawfully misappropriated and misused proprietary electronic records; and retaliated against UHW-W members who expressed their views on union affairs.  The hearing officer will review the evidence and make a formal recommendation to SEIU regarding the proposed trusteeship.

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