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Tue Dec 27, 2016, 11:46 AM

Report: Powerful labor union plans massive budget cuts in wake of Donald Trump victory

CBS News

According to an internal memo obtained by Bloomberg Businessweek, SEIU president Mary Kay Henry said the union must “plan for a 30% reduction” in its budget by the start of 2018. That number includes a 10 percent budget cut by the start of 2017.

According to Henry, the cuts are a direct result of Mr. Trump’s victory over Democrat Hillary Clinton in November’s election, along with the GOP’s continued control of Congress. With Mr. Trump and his Senate Republican allies poised to nominate dozens of judges, including a new Supreme Court justice, the SEIU fears its ability to collect dues from members will soon be significantly curtailed.

Among the biggest worries for the SEIU and other labor unions is the possibility that Republican judicial appointees will expand “Right to Work” laws nationwide, which would prohibit unions in both the public and private sector from demanding their members pay dues.

“Right to Work” laws have already proven to be a serious blow to labor union’s ability to flex political muscle in states like Wisconsin and Michigan, two longtime Democratic bastions that voted for Mr. Trump last month.

http://www.cbsnews.com/news/seiu-labor-union-massive-budget-cuts-in-wake-of-donald-trump-victory/

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Reply Report: Powerful labor union plans massive budget cuts in wake of Donald Trump victory (Original post)
yallerdawg Dec 2016 OP
Yurovsky Dec 2016 #1
MichMan Dec 2016 #2
Lee-Lee Dec 2016 #3
Amishman Dec 2016 #4
yallerdawg Dec 2016 #5
MichMan Dec 2016 #6
yallerdawg Dec 2016 #7

Response to yallerdawg (Original post)

Tue Dec 27, 2016, 12:22 PM

1. At least they are planning ahead...

and taking steps to ensure their survival. If only the Democratic Party would follow suit... and I think putting Keith Ellison in charge of the DNC would be a great start.

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Response to yallerdawg (Original post)

Tue Dec 27, 2016, 12:27 PM

2. Understand their fear, but something doesn't add up

I'm not a member, so really doesn't affect me personally, but just commenting on what was posted

Something doesn't add up here. Almost seems like they had significant expenditures in 2016 that were outpacing current dues income. Was it the "Fight for $15"?

Why make cuts now based on something that hasn't yet happened? I would be interested in seeing figures on how many SEIU members have opted out Michigan & Wisconsin to understand the effects of RTW.

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Response to yallerdawg (Original post)

Tue Dec 27, 2016, 12:34 PM

3. Kind of jumping the gun aren't they?

 

Their finances can't have taken a 30% hit already, and I doubt they will see a 30% reduction in membership is the course of one year.

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Response to Lee-Lee (Reply #3)

Tue Dec 27, 2016, 01:01 PM

4. Yes, if anything I would think they should step up their efforts

If the fear is that members will soon have a choice on membership and might leave, shouldn't the approach be to prove your value so they want to stay?

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Response to Lee-Lee (Reply #3)

Tue Dec 27, 2016, 01:07 PM

5. Fear of Trump Triggers Deep Spending Cuts by Nation's Second-Largest Union

In Michigan, for example, Republicans in 2012 passed a private sector “Right to Work” law that let workers decline to fund the unions representing them, a public sector law doing the same for government employees, and a third law stripping University of Michigan graduate student researchers and home-health aides of their collective-bargaining rights. Afterwards, SEIU's Michigan health-care local lost most of its membership.

With Republican dominance in Washington, the threats to SEIU will get more grave: Everything from slashing health-care spending to passing a federal law extending “Right to Work” to all private-sector employees could be on the table. One of the most widely expected scenarios is that a Trump appointee will provide the decisive fifth vote on the Supreme Court's labor cases. The court already ruled in 2014 that making government-funded home health aides pay union fees violated the First Amendment, and a future case could apply the same logic to all government employees, effectively making the whole public sector “Right to Work.” SEIU was bracing for such a ruling earlier this year, in a case called Friedrichs v. California Teachers Association, but got an unexpected reprieve when Justice Antonin Scalia's death left the court tied, four to four. With several similar cases brought by union opponents already making their way through lower courts, it may not last for long.

https://www.bloomberg.com/news/articles/2016-12-27/fear-of-trump-triggers-deep-spending-cuts-by-nation-s-second-largest-union

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Response to yallerdawg (Reply #5)

Tue Dec 27, 2016, 02:09 PM

6. These were people taking care of their own family members

The Michigan home health care aides referenced were family members receiving a state stipend for caring for their own disabled relatives. 80% did leave the SEIU after they were allowed by the legislature. This occurred 4 yrs ago, so not anything new related to Trump.

I am all for people having union representation if they desire, but something about this particular situation always bothered me. A parent taking care of a disabled child in their own home doesn't seem like a situation that falls under the scope of an employee with collective bargaining contracts

I am interested in knowing the affect of the RTW law in the state. How many people have opted out?

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Response to MichMan (Reply #6)

Tue Dec 27, 2016, 02:38 PM

7. This is national.

Wisconsin and Michigan are just 2 out of 50.

Union membership and dues are down annually. More and more states are going RTW.

A 10-30% decline in forecast revenue over the next two years? When growth is being inhibited and payroll deductions for dues are being stopped by courts across the nation?

How is this some 'mystery' to you?

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