Obama Caught Between Two Masters - Goldman Sachs & SEIU - Part 2. SEIU

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First Published September 24, 2009

Obama Caught Between Two Masters - Goldman Sachs & SEIU - Part 2. SEIU

Radical even among unions, the Service Employees International Union has staked a name for itself building it's two million members not just by organizing the workplace but by stealing members from other long established unions.

The genius behind this radical labor movement is Andy Stern, yet another of the many Obama backers who were youthful members of the most radical organizations of the 1960's. Andy was in the socialist SDS, Students for a Democratic Society, before setting off on a life of organizing. To his credit, SDS was rather radical but never endorsed the use of terrorist bombings like other socialist groups.




Stern, perhaps the most loved and most hated member of the labor movement in modern America, began his career as a community organizer and never looked back. During his years as recruitment coordinator for the President of the AFL-CIO he consistently pushed for revitalization of the labor union movement and refocusing American unions to consolidate and gain bargaining power.

By 2005 he was head of the SEIU and was pushing his boss, John Sweeny, President of the AFL-CIO to make reforms or he would lead a walkout from the union federation. Sweeny balked and Stern made good on his threat. Within a year he formed the Change to Win (CTW) Labor Federation, getting the powerful Teamsters and five other unions to join forces with the SEIU. It was the first new labor federation in America in 50years.



Meanwhile he targeted other unions in a radical move to build his SEIU and his membership soared to 2 million this year, the largest labor union in America, with nearly 1 million health care workers. Parlaying the millions of dollars in membership dues and lack of unions in the health care industry Stern claims he spent $60.7 million to get Obama elected. It would be the largest union and special interest campaign financing ever given to a single candidate.

What was the price of the financing for Obama? Perhaps it is most obvious in the actions by the new president. Within ten days of becoming president, on January 30, 2009, Obama signed the first three Executive Orders wanted by the unions.

The first executive order requires employers with federal contracts above $100,000 in value to post a notice in the workplace informing their employees of their rights under the National Labor Relations Act (NLRA), including the right to join a union. This order also repeals Executive Order 13201, issued by President Bush in 2001, that required federal contractors and subcontractors to post so-called “Beck notices.” Such notices, named after the Supreme Court’s decision in Communication Workers v. Beck, 487 U.S. 735 (1988) informed employees covered under the NLRA that they could not be required to join a union or maintain union membership in order to retain their jobs and that employees who are subject to a union security clause and choose not to be union members may object to the purposes for which mandatory union dues are used.

The second order applies to federal contractors who provide services to government buildings. While there are several exemptions, under this new executive order, when a federal agency changes contractors, the new contractor will be required to offer jobs to the non-supervisory employees of its predecessor. This order is designed to try to ensure that when a unionized contractor is replaced, its successor will be obliged under existing labor laws to bargain with the original contractor’s labor union.

Finally, the third order prevents federal contractors from being reimbursed in federal funds for money spent to oppose (or support) union organizing efforts among their employees. The First Amendment prevents government from interfering with an employer’s right to voice its opinion on the merits of unionization. Similar measures have been enacted in some states, with respect to their state contractors, but the Supreme Court ruled in 2008 that California ’s law to this effect was invalid because it was preempted by the National Labor Relations Act. Although a federal executive order is different than state legislation, there may be legal challenges to this executive order’s constitutionality, including a possible violation of the First Amendment. Unless and until the order is successfully challenged, however, federal contractors who still wish to oppose union organizing campaigns will need to consider the effects of this order on their ability to continue doing so without jeopardizing their federal contracts.




In another boost to organized labor, just six days later President Barack Obama on February 6, 2009, signed a fourth Executive Order, effective immediately, authorizing executive agencies of the federal government to require every contractor or subcontractor on a large-scale construction project to negotiate or become a party to a Project Labor Agreement (PLA) with one or more labor organizations. This is the fourth pro-labor Executive Order signed by President Obama since January 30th.

A PLA is a pre-hire collective bargaining agreement between contractors and one or more unions that establishes the terms and conditions of employment for a specific construction project. The stated rationale for this Order is that a PLA can promote the “efficient and expeditious completion of Federal construction contracts” by ensuring a “steady supply of labor” and the avoidance of “labor disputes” which can delay the project.

This Executive Order, which specifically revokes contrary Executives Orders issued by former President George W. Bush in 2001 and reinstates a Clinton-administration rule, was immediately hailed by organized labor. "This is yet another reason for working families to be grateful that we have a champion in the White House," Teamsters General President Jim Hoffa stated. In the same vein, Mark H. Ayers, president of the AFL-CIO Building and Construction Trades Department (BCTD), praising President Obama, stated: “The Bush anti-PLA executive order was exactly the type of special interest-driven politics and policy that American voters rejected overwhelmingly last November…. [Project Labor Agreements] provide maximum benefit to construction users; union and non-union workers; union and non-union contractors; lenders and insurance companies; and taxpayers.”




This was only the beginning.

Though stymied on the Employee Free Choice Act, (the Card Check Act), abolishment of the secret ballot in elections which would make it easier for workers to form unions, organized labor claimed a big consolation prize: the massive application of a law guaranteeing “prevailing wages” for hundreds of thousands of construction workers hired under President Obama’s economic stimulus program.

Secretary of Transportation Ray LaHood implemented guidelines to expand the scope of the 1931 Davis-Bacon Act, according to a department spokesperson. LaHood’s action will put a floor under wages paid for the more than 578,000 construction jobs that the White House estimates will be created by the end of 2010. It also marks a sharp reversal of U.S. policy on public works projects under President Bush, who in September 2005 suspended Davis-Bacon in the Gulf States after Hurricane Katrina.

Such is the power of Stern that Obama once said he consulted with SEIU on every major decision he makes. Proof of the power is that the White House, when it became obvious that the Obama healthcare initiative was in danger of losing support and faced with a series of contentious town hall meeting in August, brought Stern and SEIU in to manage the campaign for approval.




Stern dispatched the SEIU mobile centers to coordinate town halls for nervous members of the House and Senate all over the nation. They were to control and counteract the opponents to the Obama healthcare proposals including filming events with their own video teams and feeding footage to the media to make the opponents look bad. Some say the tactics of the purple clad SEIU operatives was like thugs and one SEIU staffer was arrested for beating up an older man.




Even House Majority leader Steny Hoyer was fearful enough to hire SEIU to manage his town hall where they limited questions from the crowd to 20 total when over 1500 people were at the meeting and several hundred more were outside. Hoyer spent over one hour spouting the benefits of the Obama plan before people were allowed to take the mike and in spite of the SEIU efforts to control things the crowd began to boo his responses.

In September another victory for the unions when Obama imposed heavy import tax duties on imported Chinese tires at the request of labor unions, an action against that threatens to spark a trade war between the US and China. China has already threatened to add a tariff to imports of US poultry and vehicles. The action by Obama increased the 4% tariff on Chinese tires by 35%.

Now Congress is back and it is time to see if the big payoff is made to the SEIU, passage of health care reform that allows, even gives favorable treatment, to allow Stern to organize the health care industry in America. Over 17 million people work in health care and related social services in America. SEIU now represents about 1 million of these workers while the Communications Workers of America represents about 140,000 meaning the pool of non-unionized health care workers is huge.




SEIU expects to be the primary beneficiary of the health care reform using it to open doors to unionizing this massive prize. The union dues and lobbying wealth it would generate would dwarf current spending by the unions. A public option would make it even more desirable as public workers would be much easier to organize.

Unfortunately, the more SEIU has tried to function like a well oiled corporation the more difficulties it has encountered so it remains to be seen if Stern can wrap up the gigantic payback. If anyone can he can. However, his aggressive tactics have alienate many other unions and even some of the unions he has swallowed up are now protesting their treatment and threatening to withdraw from SEIU because of his heavy-handed tactics.

Corruption in SEIU is extensive, especially in California where battles between unions and between union leaders, most instigated by SEIU, threaten to tear apart the move to grow the unions. One union official in California calls Stern a "threat to the soul" of the union movement. Claims that members dues are being used to foster socialism and other causes not approved by members, even funding programs like the disgraced ACORN program, are a source of concern.




But the most serious threat to SEIU controlling the union movement in America may be the lavish spending to buy politicians, like the $60.7 million spent on Obama. Ironically, Obama and Congress may be the only thing standing between the union and bankruptcy. Stern led the condemnation of the greed and mismanagement on Wall Street. Now he stands to fall into the same trap as his Wall Street enemies.

According to the New York Daily News, in spite of the fact Stern undertook a bitter campaign against the Bank of America and even got the CEO thrown out last spring he was borrowing an astonishing $87.7 million from the bank at the same time. In another industry it would probably be called protection money. He borrowed another $15 million from the only union owned bank in America, the Amalgamated Bank. SEIU recently reported $33 million in assets and $102 million in liabilities.

The SEIU cannot afford delays in the payback by Congress and Obama, they need money and they need it fast. There are times the investor better have the money to invest before making the big jump. If SEIU spent $60.7 million on Obama and health care yet had to borrow $102 million to cover it the accounting does not seem to add up. It will be interesting to see if Obama, Pelosi and the Democrats can maintain the sense of urgency they need to approve the bill and help SEIU or if the public discovers the truth first.

In the tale of the two Masters, the SEIU has no chance against Goldman Sachs when it comes to deciding which master will win out with the Obama administration. Goldman has billions to manipulate while SEIU must borrow money to play the money game. So far the return to Goldman has already been in the billions of dollars while the token victories given to SEIU have not even made a dent in paying their debts.

Nor can SEIU match the vast army of former Goldman executives strategically placed throughout the Obama administration and throughout the world of finance and politics. No one has ever questioned the loyalty of this massive force. Andy Stern may have attended the Wharton School of Finance but Goldman wrote the course and probably financed the school's endowment fund.

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Obama Gets Financial Reform as Wall Street Giant Goldman gets off the Hook again!

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The same day President Obama got his watered down Financial Reform bill through Congress his Administration let the top Wall Street contributor to his campaign, bad boy Goldman Sachs, off the hook with a paltry settlement for financial misconduct to the surprise of Wall Street watchers.

While claiming victory with the financial regulations, it might prove bittersweet to the Administration since Goldman, whose reckless investing many believe nearly brought down the economy, was given a paltry fine of $550 million for stock fraud and lying to investors.



The total fine for Goldman, while not admitting guilt, was half of what the street expected and amounted to just 15 days profit at Wall Street's most profitable bad boy. Since the American public lost trillions of dollars because of this and other actions by Goldman and others it was sorry testament to the enforcement capability of the Administration as they failed to make Goldman an example of Wall Street excess.

To add insult to injury for the American public, the terms of the settlement which allowed Goldman to pay the fine but plea no contest, thus avoid pleading guilty, also allows Goldman to write off the entire cost of the fine, all $550 million, as a business expense thus gaining a huge tax windfall for defrauding investors. Some punishment.



The Obama administration already let Goldman recover 100% of their derivative exposure, which did bring down the economy, when Goldman received $12.9 billion, yes billion, from the federal money going to AIG. In addition Goldman was granted access to discounted Fed funds thus insuring they would make billions of dollars in profits, and spend billions of dollars on executive bonuses, even though their actions helped cause the world economic collapse.

It is clear the Democrats are incapable of launching any kind of reasonable investigation of Goldman with all the former Goldman employees working for the Obama administration, so maybe a Republican victory in the midterm elections could finally result in unveiling the deep, dark secrets of the relationship between Barack Obama and Goldman Sachs.



No answers have ever been offered to questions like the role Goldman played in Obama's 2006 Illinois Senate race when Obama was an underdog and his opponents in the democratic primary and the general election both withdrew from the campaign at the last minute. There are claims one sold his business to Goldman and the other worked for Goldman.

Goldman secretly met with Obama in Chicago before the presidential campaign and became his largest Wall Street contributor as well as bundler for many millions more in contributions. They also sponsored a secret debate in NYC for Obama with Tom Brokaw as moderator to prep him for debating Hillary Clinton in the primary.

Was there any coincidence that the Goldman settlement came the same day as the new financial regulations were approved to crack down on Wall Street? Of course the new regulations are not effective until Obama signs them and he won't do that until next week.



How did Goldman manage to do what they did and only get a slight slap on the wrist when it cost the taxpayers trillions of dollars in losses? Was there any discussion about Goldman between Obama and Warren Buffett, one of the largest stockholders in Goldman, when they met privately the day the settlement was announced.

If the Democrat leaders in Congress are going to ignore the suspicious activity between Goldman and Obama and his campaign, not to mention their influence on his staff which has benefitted Goldman to the tune of billions of dollars since Obama got elected, then what value is any financial reform?

When the truth about what transpired comes out it may indeed be a bittersweet victory for the administration for how can they claim they have cracked down on Wall Street when they just allowed their biggest Wall Street campaign contributor to raid the public treasury for billions of dollars while costing Main Street trillions of dollars in losses?

People should demand Congress rip the veil off of any misconduct that might have taken place between the Obama campaign and Goldman, the billion dollar beneficiary of the Obama Wall Street crackdown.

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New Jersey Stuck in Political Quagmire - Payoffs Abound for Democrats Menendez & Staff

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Just when we thought our politicians were starting to get the message that payoffs and campaign bribery have no business in our government we learn that Robert Menendez, Senator from New Jersey, was in the midst of securing $8 million in federal special earmark money to pay for corporate work that had already been promised from developers.



In fact, the multi-million dollar luxury condo complex on the New Jersey - New York waterfront required the private financed park as a condition of approval back in 2003, a fact that Menendez says he did not know. What kind of staff work was involved that led him to get $8 million in federal money for a luxury development when hundreds of teachers are being laid off in New Jersey and jobs could have been saved with the same money?

Maybe the problem with Washington politicians can be best seen by this fact. Menendez and former Senator Frank Lautenberg received over $100,000 in campaign contributions from the owners and employees of the privately owned complex. A former member of the Menendez staff received over $200,000 as a lobbyist for the project.



Menendez is quit to point the finger and lay the blame on Wall Street or BP for the problems we face as and he wants to be the leader in fighting to save jobs for the teachers yet he quietly, behind the scenes, is steering $8 million to huge developers and $200,000 to former staff members to pay for a park in one of the most luxurious condo complexes on the Hudson waterfront.

Liberals and Democrats including the powerful teachers union should be outraged at the hypocritical action by their advocate and the people of New Jersey should be disgusted by the continued efforts of the political machine in Washington to steer limited funds to special interests. Wake up New Jersey, you have been sold out again!



Apparently cleaning out the Governor's mansion with the election of Governor Chris Christie was just the first step in cleaning out the horrible mess in the Democrats stranglehold on the state and their disregard for the needs of the people of New Jersey. Using grey areas of the law to benefit huge corporations was supposed to be a thing of the past. Maybe Menendez should become a thing of the past as well to make sure people are heard.



The following is a report on the funding scandal that appeared in the Washington Times online.

By Jim McElhatton

HOBOKEN, N.J. | With a rooftop pool and 24-hour concierge service, the new luxury condominiums off Frank Sinatra Drive here seem an unlikely spot in need of a multimillion-dollar federal giveaway.

Yet U.S. taxpayers doled out at least $8 million on a public walkway and park space in front of the Maxwell Place development here overlooking the New York City skyline - an amenity the development touts alongside its entertainment lounge, rooftop hot tub and theater screening room.

But the decision to use tax dollars to fund the walkway project was made after private developers had already agreed in 2003 to pay for it - indeed, it was a key condition for getting the project off the ground, according to public records and interviews.



Still, under the so-called earmarking process, by which Capitol Hill lawmakers slip requests for pet projects into larger spending bills, Sens. Frank R. Lautenberg and Robert Menendez, New Jersey Democrats, later pushed for millions of dollars in federal funding for the project.

In the swamp of federal earmark funding, $8 million isn't a lot. But critics say the project is emblematic of why the earmark process so enrages many taxpayers.

Mr. Lautenberg and Mr. Menendez combined have received approximately $100,000 in campaign donations from executives of past and current developers of the Hoboken project and their employees over the years, federal election records show.

What's more, the developers' lobbyist, whose firm reaped more than $200,000 in lobbying fees, was a longtime senior aide to Mr. Menendez, who was a member of the House when the lawmakers secured funding for the project in 2005.

Neither Mr. Menendez nor Mr. Lautenberg said the donations influenced their decisions. They also said they were unaware that the developer had already agreed to spend millions of its own dollars to complete the walkway.

The public walkway and park were dedicated by city officials last year, and developers, on top of the money from the federal government, separately paid out millions of dollars for the project. But questions persist. Watchdog groups, while noting there was nothing illegal about earmarking federal funds for the project, question the push for taxpayer money if developers already were obligated to foot the bill.

"If it already was going to be done by the private sector, why would we swoop in and pick up the majority of the costs?" said Steve Ellis, vice president of Taxpayers for Common Sense. "That same $8 million could have been used on other worthwhile projects."

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Obama Again Fiddles in California as Gulf Coast Burns over Inaction on Oil Spill

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It seems to be a habit with the Obama administration. Just when he is getting pressure from the left and right wing media to do something about a grave crisis he jumps his jet for California and holds million dollar fund raisers. While Obama fiddles Rome burns and millions of more special interest dollars are poured into Democrat campaigns.

Today Obama again flies over a disaster area on his way to the golden state of California where he can mine gold for campaigns. It is his third cross country flight to shake the big bucks out of California and a pattern seems to be developing. It seems every time the Gulf coast or America needs an explanation from the president on what he is doing to help us, the president is not available.



Today it is the BP oil spill in the Gulf which happened over one month ago. The only people who failed to act more than BP to avoid this environmental tragedy was the Obama Interior department, Homeland Security and White House. Obama, as president, not BP, was responsible for approving permits, approving the installation of the deepwater rig, making sure contingency plans were in place and monitoring every step of the drilling process.

Try as they may to place the total blame on BP it was the federal regulatory and safety role, or lack of one, that enabled this to happen. BP should have been prepared for a disaster, but the federal government was responsible to make sure the plan existed. Both failed. In fact 34 days later the Obama people are still bumbling around trying to figure out what to do. This week they say they are relying on BP expertise after raking BP over the coals the last week.



So rather than go to the disaster area and take charge, Obama is flying over the disaster on the way to multi-million dollar campaign fundraisers in California. Instead of walking the beaches and encouraging workers, many of them volunteers, who are cleaning up the oil he is charging $2,000 a person to join him for cocktails or $35,200 to join him for dinner in San Francisco.

Does this sound vaguely familiar? It should.

Just a few months earlier, in October Obama made his first visit to New Orleans. During the campaign and after taking office as president Obama’s steady criticism of how former President George W. Bush’s administration ignored the Gulf Coast after Hurricane Katrina was a shrewd political move that helped propel him into the White House. Unfortunately, the people of New Orleans only got a photo op and more words, not action, as he quickly hopped the jet for the west coast.



Once safely in lala land with Nancy Pelosi citizens could see the president and actually spend time with him, if they paid $34,000 per couple for dinner with Obama or $1,000 for a concert ticket with him. As he was behind closed doors in San Francisco hobnobbing with contributors the BBC on the other side of the world was announcing that Obama was going to send 45,000 more troops to Afghanistan. Obama did not confirm the exact number of troops until December 2.



Just last month Obama was back in California raising $3 more millions on April 19, just a day before the BP oil rig explosion on April 20. This trip fell between Obama's toothless Nuclear Summit April 12-13 and his speech to Wall Street on April 22.

When things get tough the president heads out for California fundraisers where the millions he rakes in for the political fat cats seems a lot more important than what is happening in the Gulf, or Afghanistan, or the economy.



Had we been paying attention we would know the White House was great at making the president disappear when the heat is on. Back on February 17, 2009, just a couple of weeks after becoming president, Obama signed the controversial economic stimulus bill at a cost of $787 billion. The same day he also announced the $245 billion housing and mortgage bailout which has largely failed.

Quietly the same day the Pentagon, not president, announced a 17,000 troop increase in Afghanistan while Bill Clinton was saying he was not responsible for the economic crisis even though he apologized for allowing his staff to change federal regulations that allowed the economic crisis to happen.



Perhaps our national priorities have suffered from lack of presidential attention and focus but at least the political campaigns are getting all the money they need from Obama. The people of America, it seems, are still waiting to get the president's attention.

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Obama Caught Between Two Masters - Goldman Sachs & SEIU - Part 2. SEIU

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Radical even among unions, the Service Employees International Union has staked a name for itself building it's two million members not just by organizing the workplace but by stealing members from other long established unions.

The genius behind this radical labor movement is Andy Stern, yet another of the many Obama backers who were youthful members of the most radical organizations of the 1960's. Andy was in the socialist SDS, Students for a Democratic Society, before setting off on a life of organizing. To his credit, SDS was rather radical but never endorsed the use of terrorist bombings like other socialist groups.




Stern, perhaps the most loved and most hated member of the labor movement in modern America, began his career as a community organizer and never looked back. During his years as recruitment coordinator for the President of the AFL-CIO he consistently pushed for revitalization of the labor union movement and refocusing American unions to consolidate and gain bargaining power.

By 2005 he was head of the SEIU and was pushing his boss, John Sweeny, President of the AFL-CIO to make reforms or he would lead a walkout from the union federation. Sweeny balked and Stern made good on his threat. Within a year he formed the Change to Win (CTW) Labor Federation, getting the powerful Teamsters and five other unions to join forces with the SEIU. It was the first new labor federation in America in 50years.



Meanwhile he targeted other unions in a radical move to build his SEIU and his membership soared to 2 million this year, the largest labor union in America, with nearly 1 million health care workers. Parlaying the millions of dollars in membership dues and lack of unions in the health care industry Stern claims he spent $60.7 million to get Obama elected. It would be the largest union and special interest campaign financing ever given to a single candidate.

What was the price of the financing for Obama? Perhaps it is most obvious in the actions by the new president. Within ten days of becoming president, on January 30, 2009, Obama signed the first three Executive Orders wanted by the unions.

The first executive order requires employers with federal contracts above $100,000 in value to post a notice in the workplace informing their employees of their rights under the National Labor Relations Act (NLRA), including the right to join a union. This order also repeals Executive Order 13201, issued by President Bush in 2001, that required federal contractors and subcontractors to post so-called “Beck notices.” Such notices, named after the Supreme Court’s decision in Communication Workers v. Beck, 487 U.S. 735 (1988) informed employees covered under the NLRA that they could not be required to join a union or maintain union membership in order to retain their jobs and that employees who are subject to a union security clause and choose not to be union members may object to the purposes for which mandatory union dues are used.

The second order applies to federal contractors who provide services to government buildings. While there are several exemptions, under this new executive order, when a federal agency changes contractors, the new contractor will be required to offer jobs to the non-supervisory employees of its predecessor. This order is designed to try to ensure that when a unionized contractor is replaced, its successor will be obliged under existing labor laws to bargain with the original contractor’s labor union.

Finally, the third order prevents federal contractors from being reimbursed in federal funds for money spent to oppose (or support) union organizing efforts among their employees. The First Amendment prevents government from interfering with an employer’s right to voice its opinion on the merits of unionization. Similar measures have been enacted in some states, with respect to their state contractors, but the Supreme Court ruled in 2008 that California ’s law to this effect was invalid because it was preempted by the National Labor Relations Act. Although a federal executive order is different than state legislation, there may be legal challenges to this executive order’s constitutionality, including a possible violation of the First Amendment. Unless and until the order is successfully challenged, however, federal contractors who still wish to oppose union organizing campaigns will need to consider the effects of this order on their ability to continue doing so without jeopardizing their federal contracts.




In another boost to organized labor, just six days later President Barack Obama on February 6, 2009, signed a fourth Executive Order, effective immediately, authorizing executive agencies of the federal government to require every contractor or subcontractor on a large-scale construction project to negotiate or become a party to a Project Labor Agreement (PLA) with one or more labor organizations. This is the fourth pro-labor Executive Order signed by President Obama since January 30th.

A PLA is a pre-hire collective bargaining agreement between contractors and one or more unions that establishes the terms and conditions of employment for a specific construction project. The stated rationale for this Order is that a PLA can promote the “efficient and expeditious completion of Federal construction contracts” by ensuring a “steady supply of labor” and the avoidance of “labor disputes” which can delay the project.

This Executive Order, which specifically revokes contrary Executives Orders issued by former President George W. Bush in 2001 and reinstates a Clinton-administration rule, was immediately hailed by organized labor. "This is yet another reason for working families to be grateful that we have a champion in the White House," Teamsters General President Jim Hoffa stated. In the same vein, Mark H. Ayers, president of the AFL-CIO Building and Construction Trades Department (BCTD), praising President Obama, stated: “The Bush anti-PLA executive order was exactly the type of special interest-driven politics and policy that American voters rejected overwhelmingly last November…. [Project Labor Agreements] provide maximum benefit to construction users; union and non-union workers; union and non-union contractors; lenders and insurance companies; and taxpayers.”




This was only the beginning.

Though stymied on the Employee Free Choice Act, (the Card Check Act), abolishment of the secret ballot in elections which would make it easier for workers to form unions, organized labor claimed a big consolation prize: the massive application of a law guaranteeing “prevailing wages” for hundreds of thousands of construction workers hired under President Obama’s economic stimulus program.

Secretary of Transportation Ray LaHood implemented guidelines to expand the scope of the 1931 Davis-Bacon Act, according to a department spokesperson. LaHood’s action will put a floor under wages paid for the more than 578,000 construction jobs that the White House estimates will be created by the end of 2010. It also marks a sharp reversal of U.S. policy on public works projects under President Bush, who in September 2005 suspended Davis-Bacon in the Gulf States after Hurricane Katrina.

Such is the power of Stern that Obama once said he consulted with SEIU on every major decision he makes. Proof of the power is that the White House, when it became obvious that the Obama healthcare initiative was in danger of losing support and faced with a series of contentious town hall meeting in August, brought Stern and SEIU in to manage the campaign for approval.




Stern dispatched the SEIU mobile centers to coordinate town halls for nervous members of the House and Senate all over the nation. They were to control and counteract the opponents to the Obama healthcare proposals including filming events with their own video teams and feeding footage to the media to make the opponents look bad. Some say the tactics of the purple clad SEIU operatives was like thugs and one SEIU staffer was arrested for beating up an older man.




Even House Majority leader Steny Hoyer was fearful enough to hire SEIU to manage his town hall where they limited questions from the crowd to 20 total when over 1500 people were at the meeting and several hundred more were outside. Hoyer spent over one hour spouting the benefits of the Obama plan before people were allowed to take the mike and in spite of the SEIU efforts to control things the crowd began to boo his responses.

In September another victory for the unions when Obama imposed heavy import tax duties on imported Chinese tires at the request of labor unions, an action against that threatens to spark a trade war between the US and China. China has already threatened to add a tariff to imports of US poultry and vehicles. The action by Obama increased the 4% tariff on Chinese tires by 35%.

Now Congress is back and it is time to see if the big payoff is made to the SEIU, passage of health care reform that allows, even gives favorable treatment, to allow Stern to organize the health care industry in America. Over 17 million people work in health care and related social services in America. SEIU now represents about 1 million of these workers while the Communications Workers of America represents about 140,000 meaning the pool of non-unionized health care workers is huge.




SEIU expects to be the primary beneficiary of the health care reform using it to open doors to unionizing this massive prize. The union dues and lobbying wealth it would generate would dwarf current spending by the unions. A public option would make it even more desirable as public workers would be much easier to organize.

Unfortunately, the more SEIU has tried to function like a well oiled corporation the more difficulties it has encountered so it remains to be seen if Stern can wrap up the gigantic payback. If anyone can he can. However, his aggressive tactics have alienate many other unions and even some of the unions he has swallowed up are now protesting their treatment and threatening to withdraw from SEIU because of his heavy-handed tactics.

Corruption in SEIU is extensive, especially in California where battles between unions and between union leaders, most instigated by SEIU, threaten to tear apart the move to grow the unions. One union official in California calls Stern a "threat to the soul" of the union movement. Claims that members dues are being used to foster socialism and other causes not approved by members, even funding programs like the disgraced ACORN program, are a source of concern.




But the most serious threat to SEIU controlling the union movement in America may be the lavish spending to buy politicians, like the $60.7 million spent on Obama. Ironically, Obama and Congress may be the only thing standing between the union and bankruptcy. Stern led the condemnation of the greed and mismanagement on Wall Street. Now he stands to fall into the same trap as his Wall Street enemies.

According to the New York Daily News, in spite of the fact Stern undertook a bitter campaign against the Bank of America and even got the CEO thrown out last spring he was borrowing an astonishing $87.7 million from the bank at the same time. In another industry it would probably be called protection money. He borrowed another $15 million from the only union owned bank in America, the Amalgamated Bank. SEIU recently reported $33 million in assets and $102 million in liabilities.

The SEIU cannot afford delays in the payback by Congress and Obama, they need money and they need it fast. There are times the investor better have the money to invest before making the big jump. If SEIU spent $60.7 million on Obama and health care yet had to borrow $102 million to cover it the accounting does not seem to add up. It will be interesting to see if Obama, Pelosi and the Democrats can maintain the sense of urgency they need to approve the bill and help SEIU or if the public discovers the truth first.

In the tale of the two Masters, the SEIU has no chance against Goldman Sachs when it comes to deciding which master will win out with the Obama administration. Goldman has billions to manipulate while SEIU must borrow money to play the money game. So far the return to Goldman has already been in the billions of dollars while the token victories given to SEIU have not even made a dent in paying their debts.

Nor can SEIU match the vast army of former Goldman executives strategically placed throughout the Obama administration and throughout the world of finance and politics. No one has ever questioned the loyalty of this massive force. Andy Stern may have attended the Wharton School of Finance but Goldman wrote the course and probably financed the school's endowment fund.

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