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AFL-CIO Has Money Problems
Six union presidents issued a statement critical of AFL-CIO President John J. Sweeney's financial stewardship of the labor federation.
(By Chris Pizzello -- Associated Press)
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The five presidents, who together with Raynor form the anti-Sweeney wing of the union movement, are Joseph T. Hansen of the United Food and Commercial Workers, James P. Hoffa of the International Brotherhood of Teamsters, Terence M. O'Sullivan of the Laborers International Union of North America, Andrew L. Stern of the Service Employees International Union, and John W. Wilhelm, Unite Here's president for the hospitality industry.
Sweeney was president of the SEIU before winning the AFL-CIO presidency. In recent years, Stern, who took over the SEIU from Sweeney, has been the harshest in his comments about Sweeney's leadership.
Hoffa and the other dissident presidents sought approval of a mandate to sharply reduce the size of the AFL-CIO and to shift $35 million into organizing campaigns, but they were rejected by a 15 to 7 vote at the federation's executive committee meetings this year in Las Vegas.
A proposal by Sweeney that was approved in Las Vegas calls for boosting spending on political and legislative mobilizing and organizing by about $15 million, split between the two activities.
In a policy statement released yesterday, Sweeney, Secretary-Treasurer Richard L. Trumpka and Executive Vice President Linda Chavez-Thompson defended spending more money to get out the vote: "We reject the notion that we should concentrate on one of these paramount goals [organizing] at the sacrifice of the other [political mobilization]."
Wilhelm is considered a probable challenger to Sweeney, but he has not said whether he will run. Yesterday, he continued to decline to comment. O'Sullivan is another possible candidate for the AFL-CIO presidency, but he is known to be reluctant to challenge Sweeney, who is a friend.
Denise Mitchell, AFL-CIO communications director, said the federation "is not in bad shape at all." She said the reserve fund is smaller than it was a decade ago. But, she said, one of the major criticisms of Sweeney's predecessor, Lane Kirkland, was that he refused to spend money while organized labor was in decline, and Sweeney is committed to using resources to stop that decline. She noted that the reserve fund is to be used when labor faces difficulties, and "George Bush is a rainy day."
AFL-CIO financial reports available on the Labor Department Web site show that from the start of 2000 to June 30, 2004, the AFL-CIO's net assets fell from $66.1 million to $29.1 million. Much of the difference results from a $25.4 million mortgage that Mitchell said was taken out to finance needed repairs and upkeep of the headquarters building.
The AFL-CIO gets its operating budget by assessing a per capita tax paid by the 58 member unions. The unions pay 53 cents for each member. The per capita tax has been raised twice, from 47 cents to 50 cents in 2000 and to 53 cents in 2001.
Washington Post researcher Lucy Shackelford contributed to this report.
