'An unlimited piggy bank:' Exploring the extravagant expenditures of a powerful union

Labor leader George Gresham has a history of utilizing union funds for his own personal gain, as well as for the benefit of his family and political associates.

'An unlimited piggy bank:' Exploring the extravagant expenditures of a powerful union
NEW YORK — Jesse Jackson faced a significant financial burden two years ago due to mounting medical bills, and fortunately, he had an unexpected source of assistance: the largest health care union in the United States.

George Gresham, president of 1199SEIU United Healthcare Workers East and a longtime ally of Jackson, allegedly sent him $50,000 from the union’s funds, as revealed by public financial disclosures and corroborated by four union staffers who were present during the discussion regarding the payment.

Union officers were not taken aback by Jackson’s request, but they were reportedly surprised that Gresham insisted on holding a vote regarding the funds. “Whatever George needs, they find the money to do it,” said a staffer involved in the conversation.

However, a nine-month investigation by PMG uncovered that Gresham has used the union’s influential financial resources to benefit himself, his family, and political associates over several years. In numerous instances, Gresham bypassed necessary approvals for significant expenditures, leading to instances where he needed to later seek retroactive permissions or reimburse the union.

PMG conducted interviews with over 20 current and former union employees and examined thousands of pages of financial reports filed with the U.S. Department of Labor and the IRS, along with internal communications and invoices. Most interviewees requested anonymity to avoid retaliation from Gresham and his supporters.

As 1199SEIU prepares for its first competitive leadership election in decades, there’s growing scrutiny over Gresham's spending practices. The union, representing 450,000 health care workers across five East Coast states, is at a pivotal moment. It faces a backdrop of declining overall union membership and impending attacks on collective bargaining rights, particularly from the Trump administration.

Gresham and his supporters contend that he is best equipped to advocate for union members against potential threats from Republicans in Congress regarding immigration and healthcare policy. Conversely, those aiming to dethrone him during the upcoming election argue that Gresham's attempts to retain power exemplify the broader challenges facing organized labor—specifically, leaders prioritizing personal interests over the welfare of dues-paying members.

Critics have pointed to Gresham's expenditures as key examples of these issues, including the union's investment of over $60,000 for his daughter’s living expenses while she serves as his caregiver on business trips. Reports indicate that two logistics employees essentially act as Gresham’s personal drivers. Additionally, expenditures have tied Gresham to activities worldwide, including trips to South Africa for commemorative events and concerts that coincided with family reunions in Virginia.

Federal labor regulations dictate that union officers must manage funds solely for the union's benefit, ensuring proper authorization and reporting of all expenses—backgrounds rooted in historical concerns over corruption within unions during the 20th century. These guidelines exist to keep unions accountable for how they utilize member dues.

In response to PMG’s findings, union spokesperson Bryn Lloyd-Bollard asserted that the organization complies with legal requirements, characterizing the expenses as either normal operational costs or explicitly sanctioned by the union’s Executive Council. “Allegations of financial impropriety are categorically false,” Lloyd-Bollard stated. He further noted that they would not comment on what he labeled “false claims” regarding properly vetted expenses.

The union defended several transactions as necessary business expenditures, suggesting initiatives like a “legacy award” for Jackson and a “get out the vote” concert series linked with family reunions. Yet it remains ambiguous how these expenses benefitted the union’s members, many of whom are low-wage, hourly workers.

Notably, the financial benefaction reportedly favored Gresham’s allies, such as Jackson, and other individuals also received financial support without clear ties to union work. Veteran political activist Carmen Perez was on the payroll despite allegations of not contributing directly to the union, while a production company associated with a former union driver received substantial payments for organizing events, including those featuring high-profile artists.

“They would be better off taking that money and buying lotto tickets,” remarked a current staffer involved in discussions about the payments to Jackson.

Legal experts familiar with the findings expressed skepticism about how the spending would be justified to benefit union members. Andriana Vamvakas, who previously supervised inquiries into union finances for the U.S. Department of Labor, categorized the transactions highlighted by PMG as inherently "red flags."

As Gresham's high-profile spending continued, tensions within the union escalated. Last year, during a retreat at a luxurious New Jersey golf resort, officers raised concerns about pressing union issues during an otherwise tranquil agenda.

Despite attempts to address their frustrations, some executives pressed for strategic frameworks to enhance advocacy efforts as issues surfaced regarding staffing and organizational structure. Yet as they convened for a wellness event, dissatisfaction lingered.

Gresham, respected for his decade-spanning tenure, faced his own health challenges, often arriving late or participating virtually due to his medical needs. His declining health led others in the union to tread carefully when voicing apprehensions regarding his spending decisions.

Tensions reached a boiling point before the officers’ retreat earlier this year, when a lawyer proposed that union funds continue to cover “supportive services” for Gresham, retroactively from January 2023.

This resolution would permit union staff to assist him with transportation and daily medical needs, escalating past expenditures exceeding $60,000 without executive approval. Staffers reported that Gresham's personal needs took precedence, drawing resources away from necessary support across the union.

Despite ongoing scrutiny, Gresham’s health issues were cited as a justification for prioritizing certain spending. Yet issues such as staffing vacancies and the union’s financial condition persisted.

In a situation where Gresham’s family needs sometimes superseded broader organizational work, Lloyd-Bollard declined to address concerns about unfilled leadership positions and resource allocation in the union.

Amidst these challenges, the union's top leadership is now confronting an election for the first time in decades. Gresham's administration faces a formidable challenge from the Members First Unity Slate, led by former allies Yvonne Armstrong and Veronica Turner-Biggs, seeking to highlight transparency and accountability in union expenditures.

“The pattern of financial misappropriation and lack of transparency is exactly why we are running,” explained an official from the Members First Unity Slate, noting historical concerns raised regarding Gresham’s financial decisions and unaddressed demands for clarity on expenses.

Meanwhile, Gresham maintains that his track record speaks volumes about his impact within the union, asserting unwavering support from members who attribute their successes to his leadership.

As both camps gear up for a major election, turnout is critical, with each side advocating for distinct visions about the future and direction of the union.As the upcoming election looms, the stakes are high for both Gresham and the Members First Unity Slate. This election represents not just a contest for power but a pivotal moment for 1199SEIU as it navigates significant internal challenges alongside external threats to labor rights.

Members are becoming increasingly engaged, fueled by the rising discourse surrounding transparency and accountability within their union's leadership. The tension between Gresham's established leadership and the new slate's push for reform has created a climate of urgency, as union members look for a clear vision amid uncertainties about financial decision-making and operational priorities.

The election process will unfold through a mail-in voting system, where union members will evaluate the competing platforms and ideologies. Each faction presents its narrative, emphasizing their plans for the union's future while addressing the past controversies surrounding finances.

In promotional efforts, Gresham's supporters highlight achievements made under his stewardship, asserting his ability to lead through challenging times, especially in the face of political opposition. They argue that Gresham's intimate knowledge of the health care sector, gained through decades in the field, uniquely positions him to negotiate effectively on behalf of members.

Conversely, the Members First Unity Slate is rallying support around their commitment to instigate systemic changes within the leadership structure, emphasizing the need for enhanced checks and balances that align with the principles of democratic governance. They are calling for increased member involvement in decision-making processes and greater financial transparency, which they believe are vital to restoring trust in the union’s leadership.

In preparation for the election, both sides are mobilizing their bases, leveraging social media platforms to connect with union members, engage in discussions about the future of organized labor, and encourage turnout. The engagement of younger members, who may have different expectations regarding union operations and priorities, is particularly critical for both factions.

With the backdrop of declining union membership nationally, the necessity for robust internal cohesion becomes increasingly apparent. If the union cannot unite its leadership and foster transparency, it may struggle to maintain relevance and support among its members in the long run—especially as political tides shift and potential legislation seeks to constrain union powers.

As Gresham prepares for the looming vote, he must contend with an array of dissenting voices from within the union, even from some who have respected his leadership for years. The challenges posed by internal factions may lead to not only a memorable election but also deeper introspection about what the union stands for and how it can evolve in a rapidly changing political landscape.

The decisions made in this election could set a precedent for the future direction of 1199SEIU and may reverberate through the broader labor movement. Both sides recognize that this moment is not merely about who will lead the union—it is about redefining the legacy and mission of an organization that plays a crucial role in the lives of health care workers across the East Coast.

As ballots are mailed out and members prepare to cast their votes, the spotlight on 1199SEIU continues to shine, illuminating both the potential for renewal and the stark realities of the challenges faced in maintaining a united front for labor rights. The outcome of this election, whether it entails the reinforcement of Gresham’s leadership or a shift towards new governance with the Members First Unity Slate, will undoubtedly shape the union’s journey moving forward. Only time will reveal the resolution of this critical moment in the history of 1199SEIU and its members.As election day approaches, tensions within the union have reached a boiling point, prompting discussions about not only the future leadership but also the core values that define the organization. Members are increasingly vocal about their desires for a union that prioritizes transparency and accountability, with many expressing a need for a more responsive leadership that listens to their concerns.

The shift towards greater member engagement can be seen in the various grassroots campaigns sprouting across the union. Many rank-and-file members have taken it upon themselves to organize forums, town halls, and informational sessions aimed at educating their peers about the stakes of the election. These initiatives reflect a burgeoning desire among members to have greater agency in the decision-making processes that directly affect their lives and livelihoods.

The ideological divide between Gresham and the Members First Unity Slate has sparked passionate debates among members. Advocates for Gresham emphasize continuity and the necessity of experienced leadership, especially as external pressures threaten the stability of union negotiations with employers. They argue that Gresham's experience and established relationships are invaluable assets for navigating the political landscape.

Conversely, supporters of the Members First Unity Slate are capitalizing on a growing sentiment that prioritizes reform and transformation within the union’s leadership culture. They argue that the current leadership has strayed from the fundamental mission of serving union members first and that fresh perspectives are essential to reinvigorate the union’s purpose.

One area where this debate is particularly acute is in discussions about union spending. Many members have expressed frustration over expenditures perceived as excessive or disconnected from the union's core mission. Concerns about lavish spending on events and the use of union funds for personal support have intensified calls for reforms aimed at establishing clearer financial oversight.

Supporters of the reform slate contend that fiscal transparency is critical not just for accountability but for rebuilding trust among members. They seek to implement mechanisms that would require regular financial reporting and collective input on major expenditures. By fostering a culture of openness, they hope to reengage disenchanted members and attract new ones, especially in a climate where union membership is at a historic low.

As both factions prepare for the final push leading up to the election, they are acutely aware of the need to mobilize every vote. The potential implications of this election extend far beyond the immediate leadership structure; they resonate throughout organized labor, where unions are grappling with existential challenges in the face of political, economic, and social changes.

Amid these discussions, union members are increasingly recognizing the interconnectedness of local issues with broader labor movements. Many are advocating for policies that not only protect their rights at work but also engage with wider social justice issues, reflecting a growing awareness that the struggle for labor rights is part of a larger societal battle for equity and justice.

The tension is palpable as members await the election results, knowing that the outcome will set the course for the union's future. Whether Gresham retains his position or a new leadership team emerges, these decisions will shape not only the immediate operational approach of 1199SEIU but also possibly influence labor movements across the nation.

As the count begins and the future of 1199SEIU hangs in the balance, members are hopeful that whatever the outcome, it will lead to a revitalized commitment to their collective purpose. The importance of unity, transparency, and accountability within the union cannot be overstated, and as they prepare for this critical turning point, there is a palpable hope for a strengthened labor movement that truly represents the voices of its members. Regardless of the election's results, what is clear is that the conversation around labor rights, financial responsibility, and member engagement is only just beginning.

Sophie Wagner for TROIB News