SEIU to Lead Comprehensive Ethics Reform Initiative

WASHINGTON, D.C. - The Service Employees International Union (SEIU) today announced a major new initiative aimed at bolstering the union's ethical guidelines and establishing a 21st Century model of best practices for organized labor. As part of the effort, SEIU announced the immediate formation of a Commission on Ethics and Standards with a clear 90-day mandate to deliver recommendations for improving the Union's existing ethics guidelines, practices, education and enforcement standards. SEIU also publicly called on all locals to immediately adopt as a baseline the SEIU Code of Ethical Practices to protect the interests of members everywhere.

"Reform is an ongoing business requiring constant commitment and work,"said SEIU President Andy Stern.  "We recognize that we need to change in order to win for our rank-and-file members.   Over the last 12 years, we have taken on corruption and the old political fiefdoms to build a modern organization to meet the needs of 21st Century workers and families.  As our union has rapidly grown, so has the need to establish stronger accountability mechanisms.

"We represent some of the hardest-working men and women in America, and they have an absolute right to expect that their interests are protected and that their leaders are held accountable to the highest standards of honesty and integrity."

The Commission has been given far-reaching authority by President Stern. In addition to SEIU representatives, the Commission on Ethics and Standards will include outside authorities in ethics, labor and law and will be chaired by an independent expert. The Commission will be charged with reviewing existing rules and best practices, as well as delivering a comprehensive package of recommendations on how to improve current policies and procedures to ensure SEIU and its leadership is being held accountable to the members and that the Union serves as the ethics benchmark for organized labor everywhere.

Additionally, because SEIU's democratic structure allows each local to develop and adopt their own ethics guidelines, the International is calling on every local to immediately adopt as a baseline the Code of Ethical Practices adopted by SEIU in June 2005 that protects the interests of all members by establishing:

 Prohibitions on conflicts of interest, including dealings with entities in which officers and managers have financial interests and establishing clear guidelines regarding nepotism and self-dealing;
 Prohibitions on gifts or payments from restricted sources;
 Strict standards on the use of union property for personal/other uses to avoid any self-dealing;
 Limits on officer and manager compensation from funds established for the provision of health, welfare, or retirement benefits; and
 Restrictions against those previously convicted of serious abuses from serving in officer or managerial roles.
 
Immediate adoption by SEIU local unions of the SEIU International Code of Ethical Practices - as a baseline standard - will help every SEIU member understand the basic guidelines against which their leaders' actions are judged. It will also make clear to union leadership across the country that there are unambiguous guidelines for their activities and that any violation will be met with swift and decisive action.

The ethics initiative is being launched following SEIU's aggressive actions to protect members in the face of recent allegations involving California locals.

Local 6434: In mid-August, the Union launched an investigation of Local 6434 in Los Angeles. Immediately following the launch of the investigation, the local's president went on leave for the duration of the investigation; SEIU appointed a trustee for the local; former California Attorney General John Van de Kamp was retained to assist with the investigation; and former California Supreme Court Justice Joseph Grodin agreed to serve as hearing officer in the matter.

Local 721: Following internal allegations against Local 721, the Union acted to obtain reimbursement of funds that may have been improperly paid in violation of a signed agreement to an outside party. Because of Annelle Grajeda's position as president of Local 721 and the State Council during much of this period, she has requested a temporary leave from all union positions during the International's investigation of this matter.

United Healthcare Worker-West: In response to allegations of financial malpractice and membership retaliation charges against Oakland-based United Healthcare Workers-West, SEIU called for a trusteeship hearing and placed a monitor onsite to review all financial activities.  At an upcoming hearing, an outside hearing officer will review significant evidence on whether a trusteeship is warranted at UHW-W following allegations that the leadership engaged in a pattern of misconduct, financial malpractice and fraud involving the diversion of millions of dollars of union treasury monies, in possible violation of federal law.