To readers who followed Big Labor's record-breaking political contributions last election, it should come as no surprise that the AFL-CIO and the SEIU officials are hinting at big union debts. Of course, so long as the union bossses have a basically unrestricted right to to collect (and jack up) forced union dues, they will not have trouble raising revenue until most American jobs are destroyed.

But don't be surprised to see the union bosses lining up at the federal bailout trough (again) to exploit the situation.  Here's the Wall Street Journal:

Alarm is coming even from inside the AFL-CIO -- specifically, from Tom Buffenbarger, president of the International Association of Machinists and Aerospace Workers, who sits on the AFL-CIO's finance committee. Bloomberg News reports that he is circulating a report claiming the AFL-CIO engaged in "creative accounting" to conceal financial difficulties heading into last year's Presidential election. As recently as 2000, the union consortium of 8.5 million members had a $45 million surplus. By June of last year it had $90.6 million in liabilities, or $2.3 million more than its $88.3 million in assets. "If we are not careful, insolvency may be right around the corner," Mr. Buffenbarger warned.

--

As for the SEIU, as recently as 2002 total SEIU liabilities were about $8 million. According to its 2008 disclosure form, the union owed more than $156 million, a 30% increase over the $120 million it owed in 2007. Its liabilities now equal more than 80% of its $189 million in assets. Net assets fell by nearly half last year, to $34 million, from $64 million in 2007. The debt includes an $80 million loan the SEIU took out in 2003 to purchase a new headquarters in downtown Washington, D.C. But the liabilities also stem from political spending, including at least $67 million last year on political and lobbying expenses, twice what it spent in 2007.

Adding insult to injury, the SEIU is initiating another vicious "corporate campaign" to intimidate one of its biggest creditors:

By the end of 2008, the SEIU also owed Bank of America nearly $88 million, including its headquarters loan and another $10 million for unspecified purposes. This is the same BofA that the union as spent the past months attacking as the face of Wall Street excess. The SEIU has protested outside of Bank of America offices and demanded the resignation of CEO Ken Lewis.

Keep in mind that any union debt is paid off by rank-and-file workers across the country, many of whom are unwilling contributors to Big Labor's massive political apparatus. No wonder unions are having more and more trouble convincing workers to join, which is why they're going all-out to get Congress to pass "card check" instant-organizing legislation:

One irony here is that the SEIU's Mr. Stern, the most powerful labor leader in America, loudly broke from the AFL-CIO in 2005 because he said it spent too much in Washington and not enough on organizing. But unions can't resist the lure of the Beltway precisely because they fare so poorly in the private marketplace. The union red ink helps explain why Mr. Stern and AFL-CIO chief John Sweeney are lobbying so hard for Congress to rig the rules to make it easier for unions to gather more dues-paying members.

The Journal also notes that union bosses are working overtime to rollback basic transparency guidelines, something the Foundation sounded the alarm on back in March:

Unions have a long history of corruption in part because they mix large amounts of cash from dues with political purposes and little oversight. Yet the same union leaders who denounce failures of corporate governance bitterly resisted the Bush Administration's expanded disclosure, and now they want the Obama Administration to water down those rules. The news about rising union debt shows why that transparency is more necessary than ever.

Keeping basic transparency regulations in place would be marginally beneficial, but the reality is that union bosses will continue to extort money from unwilling workers for a variety of activities as long as they enjoy exclusive monopoly bargaining and forced dues privileges. Making union membership and dues-payment strictly voluntary is the only effective way to combat union corruption and encourage financial restraint, which is why state Right to Work laws are so important. 

Here at Freedom@Work, we spend a lot of time documenting union bosses' shameless hypocrisy, but this latest incident (almost) surprised even us. The powerful Service Employees International Union (SEIU) recently fired 75 staffers. But why is an organization that collects hundreds of millions of dollars in easy money (forced dues) per year cutting jobs now, in the midst of a devastating economic recession? Simple - they want even more cash for political lobbying:

"It's completely hypocritical," said staff union President Malcolm Harris...

Harris said his union's understanding is that the layoffs are the result of budget troubles faced by SEIU, which, on top of the California dispute, spent $80 million during the 2008 election and is planning to spend tens of millions more to advocate on behalf of Obama's health-care plan and card check.

The entire sordid episode is sadly reminiscent of the SEIU's election-year shenanigans, when the union hierarchy threw in the towel on the notion of hands-on employee assistance, replacing a help line with a remote call center -- the goal being to free up even more resources for political campaigning.

And now, yet again, SEIU bosses are demonstrating that they are more concerned with politics and forced-dues dollars than looking out the working man. 

(Via National Review)

Regular Freedom@Work readers already know that AFL-CIO bosses just spent a week at a luxurious beachfront resort in Miami with VP Biden and Secretary of Labor Solis. Now they want the Department of Labor to rescind simple disclosure guidelines that would help rank-and-file workers learn when they're funding extravagant union getaways. Check out the National Right to Work video with Committee and Foundation President Mark Mix for more information:

The Foundation's press release urging the Department to retain union disclosure regulations can be found here.

The National Right to Work Foundation provides free legal aid to employees so they can fight back against union coercion and abuse.

The Foundation must rely on the voluntary support of individual Americans who believe in our cause and wish to advance our strategic litigation program. To make a fully tax-deductible donation in whatever amount, please click here.

Former solicitor of labor Eugene Scalia takes to the pages of today's Wall Street Journal to argue against Big Labor's Card Check scheme. His op-ed explodes the myth that jettisoning the secret ballot will somehow reduce workplace intimidation:

...unions don't want to eliminate voter intimidation -- they want a monopoly on it. If secret-ballot elections aren't required, then employers won't get automatic notice that an organizing campaign is underway. They will have less opportunity to exercise their constitutional right to speak to employees about the legitimate reasons that many workers choose not to unionize. Union organizers, on the other hand, could visit employees at their homes or stop them in the parking lot and "encourage" them to choose to unionize on the spot. Employees are still voting -- their authorization cards are binding -- but now their vote is supervised by union organizers, not the federal government.

EFCA's supporters argue that when a worker attends a company meeting and hears how his managers dislike unions, days later when he casts a secret vote in an election overseen by federal authorities, he'll be afraid to vote his conscience. Well if that's true, imagine how much "free choice" this gentle soul will feel when four of his co-workers surround him at the hardware store, stick an authorization card and pen in his hand, and ask if he's for them or against them.

Read the whole thing here.

Lou Dobbs' recent report on Card Check featured an interview with Committee and Foundation President Mark Mix. Check out the video for a full account of union bosses' extensive political connections to the Obama Administration and Capitol Hill, as well as their ambitious legislative priorities:

The posh Miami Fontainebleu Hotel will play host to Vice President Biden, Hilda Solis, and the AFL-CIO executive council this week, as union bosses work tirelessly to spend employees' hard-earned forced dues on $1000 per night rooms and critical projects like sampling each of the facility's eleven restaurants, thoroughly testing the resort's 40,000 square foot spa, and enjoying the sights and sounds of Miami Beach:

The conference will also cover union bosses' novel approach to economic recovery, which involves forcing more unwilling workers into union collectives through the grossly misnamed "Employee Free Choice Act." But we're not quite sure how extracting millions of dollars in additional forced union dues is supposed to revive our flagging economy -- perhaps the AFL-CIO plans to single-handedly save the luxury resort business by scheduling more conferences?

Of course, history tells us handing more forced unionism power over to union bosses will only make the current economic downturn even worse.

Foundation President Mark Mix spoke on the dangers of card check legislation at the 2009 CPAC Conference in Washington, DC. Here's the video:

For previous Foundation card check coverage, click here.

Foundation VP Stefan Gleason appeared on CNN Wednesday with Lou Dobbs as part of a piece on the Obama Administration's new Project Labor Agreement Executive Order, which discriminates against the vast majority of construction workers who have not chosen to unionize. The executive order is likely to result in hundreds of millions of dollars in new forced union dues, while jacking up the costs shouldered by taxpayers. Check it out:

Dobbs sums it up nicely at the end when he observes that "this is a massive windfall for organized labor."

In 1959, well-meaning advocates of employee freedom secured passage of the Labor-Management Reporting Disclosure Act (LMRDA), a bill that promised disclosure of union finances with the (mostly unrealized) promise of weeding out corrupt union racketeers.

In 2009, President Barack Obama pledged his Administration would be on the side of disclosure -- but that has been revealed as a false promise.

The Obama Administration has moved to eliminate some modest union disclosure regulations that would allow American workers forced to pay union dues some basic information about the self-awarded “benefits” union bosses enjoy.

Of course, so long as forced unionism privileges remain intact, no amount of disclosure will meaningfully increase union accountability, but perhaps employees will gain a greater awareness of how their forced dues are spent.

Please watch the video below and then go to the Department of Labor's website to comment on these detrimental regulatory changes. All comments related to this issue must be made by March 5.

You can view the Foundation’s request for extension link or make your own comment regarding the effective date change. (Just click on the yellow comment icon in either of the above links to add your own comments about this cover-up of union boss corruption.)

Note: You should have Docket: LMSO-2008-0002 listed at the top of your comment. Please let them know how you feel about this power grab. Feel free to e-mail us a copy of your comment.

You may also visit Regulations.gov and enter LMSO-2008-0002 to comment, search comments, or read your own comment after it's been published.

###

The National Right to Work Foundation provides free legal aid to employees so they can fight back against union coercion and abuse.

The Foundation must rely on the voluntary support of individual Americans who believe in our cause and wish to advance our strategic litigation program. To make a fully tax-deductible donation in whatever amount, please click here.

As the vote on Solis's nomination approaches, Foundation Legal Information Director Patrick Semmens sits down with Stan Greer of the National Right to Work Committee to discuss the scandals surrounding her appointment and the direction of an Obama-helmed Department of Labor.