Union Battle in California Threatens S.E.I.U.

Published: September 13, 2010 - New York Times

OAKLAND, Calif. — During his two decades building one of the largest union locals in California, Sal Rosselli earned a reputation as a cunning strategist and street fighter — someone who often vilified hospital chains during contract battles.

These days, he is using those brass knuckles on his former colleagues at the Service Employees International Union in a battle that threatens to rip a giant hole in the most powerful union in the nationfs largest state.

The S.E.I.U.fs national leadership ousted Mr. Rosselli last year after a power struggle that ended with a jury finding that he had improperly used member dues to form a breakaway union. Shortly after being ousted, Mr. Rosselli did create a rival union, and now he is trying to lure many of his former members — 43,000 workers at Kaiser Permanente, the largest health care provider in the state.

On Monday, workers at 331 Kaiser facilities across California began voting by mail on whether to bolt the S.E.I.U. and join Mr. Rossellifs group, the National Union of Healthcare Workers.

A victory would give a vital boost to Mr. Rossellifs fledgling 6,000-member union, all but assuring its long-term survival. It would also be a huge blow to the 1.9-million-member service employees union, since Mr. Rossellifs group would gain the stature and dues money to finance a broader war for far more S.E.I.U. members.

Many in the labor movement hail Mr. Rosselli as a fearless champion of bottom-up union democracy who is challenging what he calls the S.E.I.U.fs gsweetheart dealsh with employers. But others denounce him as an ego-driven pied piper waging a wasteful civil war within the countryfs fastest-growing, most politically active union.

The Kaiser face-off is the biggest union election in the private sector since 1941, when 74,000 workers at Ford Motorfs River Rouge complex in Michigan, then the worldfs largest industrial facility, voted to unionize. The Ford vote was a giant step in building the labor movement; some see the Kaiser fight as a major step backward.

gItfs tragic that with so many workers wanting to be organized into unions, so much energy and money are being devoted to the fight at Kaiser,h said William B. Gould IV, a labor law professor at Stanford University and former chairman of the National Labor Relations Board.

With unusual nastiness, the two unions have traded accusations of lying, stealing, fraud and intimidation — not exactly the image the labor movement wants to project as it tries to improve its tattered reputation. In one instance, Mr. Rossellifs group accused S.E.I.U. activists of threatening some immigrant Kaiser employees with deportation unless they stopped supporting the rival union. Service employee officials say that is a lie concocted by Rosselli partisans with feverish imaginations.

The fratricidal war is a distraction as the November elections approach. The S.E.I.U. has dispatched hundreds of foot soldiers to defeat Mr. Rosselli. Other unions say they wish those activists were campaigning instead to elect union-friendly lawmakers.

Meanwhile, corporate executives can only gloat as they watch the S.E.I.U. — a scourge to many employers because of its aggressive tactics — spend millions of dollars battling not business, but another union. Saying gthe S.E.I.U. is putting unimagined resources into this fight,h Mr. Rosselli asserts that his nemesis will spend $40 million on the election; S.E.I.U. officials say they will spend at most one-tenth that amount.

Such intra-labor wars are fairly rare, partly because they are costly and often paralyze unionization efforts. But the service employees have been in several such fights recently, including a 2008 struggle with the California Nurses Association that resulted in the nurses blocking an S.E.I.U. effort to unionize 8,300 workers in Ohio.

The Kaiser battle resembles a political campaign. Mr. Rosselli and S.E.I.U. leaders are visiting dozens of Kaiser facilities, with their foot soldiers distributing leaflets at nursing home entrances at daybreak and buttonholing co-workers at lunchtime.

Mr. Rossellifs fliers denounce the gscandal-plagued S.E.I.U.h and accuse it of gphysically threatening behaviorh — including allegedly kicking down the screen door of a Rosselli supporter and pasting up S.E.I.U. fliers at her home. (Service employee officials say that was done by Rosselli activists masquerading as S.E.I.U. campaigners.)

The S.E.I.U. has built its campaign around one main argument: that the Kaiser workers could lose 9 percent in anticipated raises if they switch unions. The Rosselli forces say that is a lie. Outside labor specialists say that if the workers vote to leave the S.E.I.U., Kaiser can assert that the contract is void because that union no longer represents its employees. Under federal law, however, the contractfs terms would remain in force until Kaiser and Mr. Rossellifs union either negotiated a new contract or reached an impasse — at which point Kaiser could impose new terms and perhaps scrap the previously negotiated raises.

A Kaiser spokesman, John E. Nelson, declined to discuss the raises and said Kaiser was staying neutral in the election. gWe will bargain in good faith with whatever union our employees choose,h he said.

The S.E.I.U. repeatedly points out that a federal jury ordered Mr. Rosselli and his leadership team last April to repay $1.57 million that they had illegally diverted from member dues to finance their breakaway.

Mr. Rosselli dismisses all the accusations, even the juryfs findings, as gbig lies.h

Mr. Rosselli said that during his 21 years heading the local, United Healthcare Workers-West, gwe made great improvements in pensions and job security and obtained the highest wages.h

Mary Kay Henry, who became the S.E.I.U.fs president in May, said the fight with Mr. Rossellifs union was ga waste of time, energy and resources.h But she is not backing away. gI would ask N.U.H.W. to consider organizing nonunion workers if they want to revitalize the labor movement and address the crisis for working people,h she said.

For years, Mr. Rosselli had allied himself with Ms. Henryfs predecessor, Andy Stern. But the relationship broke down in 2008 when Mr. Rosselli grew convinced that Mr. Stern was marginalizing him.

Mr. Rosselli began complaining that Mr. Stern was an undemocratic, top-down leader who was not giving his Oakland-based local enough say in negotiating national contracts. He complained that Mr. Stern had bargained clandestine deals that traded away gains for current workers in exchange for making it easier to organize employersf nonunion facilities.

Mr. Stern removed Mr. Rosselli in January 2009 for misusing dues money and refusing to accept the parent unionfs decision to transfer 65,000 members to another local.

Now, Mr. Rosselli seems intent on getting back all his former members — and then some. His union has already won a dozen smaller elections against the S.E.I.U., although it has lost several contests, too.

Mr. Rosselli contends that if his union wins at Kaiser, that will be the beginning of the end of the S.E.I.U. as a national health care union. His goal is to take away S.E.I.U. members at the California operations of Tenet, Sutter and other hospital chains, diminishing the S.E.I.U.fs clout with national companies.

If Mr. Rosselli loses the election, his union could wither away. gThey canft survive without Kaiser,h said Nelson Lichtenstein, a labor historian at the University of California, Santa Barbara. gThey will become a very marginal outfit.h

Dave Regan, who was named co-trustee to run the Oakland local after Mr. Rossellifs ouster, said he had negotiated large raises at Kaiser, protected health benefits and involved rank-and-file workers in negotiations. He now leads the campaign against Mr. Rosselli and his team and calls them gfundamentally dishonest and unprincipled.h

gHow could you encourage people to put their pay and benefits at risk?h Mr. Regan said. gThis is a situation where a group of disgraced previous leaders who were rightfully removed from office have chosen to put the interests of 43,000 union members beneath their personal self-interest.h

Both unions confidently predict victory when balloting ends on Oct. 4.

Passing out leaflets recently outside Kaiserfs giant clinic building in San Francisco, Kelela Moberg, a pharmacy technician and Rosselli supporter, said the election was a valuable exercise in democracy. gHaving a choice is always a good thing,h she said. gIf you have a monopoly thatfs the only union for health care workers, thatfs not good.h

But Earlene Person, a vocational nurse in Oakland, said the contest was destructive. gA lot of us have walked picket lines together, but now we have members divided against each other,h she said.

A version of this article appeared in print on September 14, 2010, on page B1 of the New York edition.