The following excerpts are from the blistering profile of SEIU Local 79 boss Paul Policicchio in the Aug. 1999 issue of the far-left publication, Labor Notes:
“When Paul Policicchio became president of Local 79 of the Service Employees International Union in 1988, many activists saw it as a welcome change. His predecessor, Richard Cordtz, was a kindred spirit to the old guard Teamster officials he associated with. Cordtz was a highly paid…official with multiple salaries, presiding over a local full of low wage people…who had little say in the running of their union.
But although the Detroit-based local may be somewhat more activist now than in Cordtz’ day, the underlying situation has not changed that much. The well-paid Policicchio runs a highly autocratic local… And Local 79 seems to have a much-too-cozy relationship with a company that provides low-wage employees for one of Detroit’s most prominent employers.
What makes Local 79 of more than usual interest is that Policicchio is one of the top five international officials of 1.2 million member SEIU, a union that holds itself up as a model for the future of the labor movement. Andy Stern, who fought off a challenge by Cordtz to become SEIU president in 1996, made Policicchio his candidate for executive vice president, a position he still holds in addition to the presidency of Local 79…
The most striking example of Local 79’s cozy relationship with an employer involves several companies, including Arena Operators and Theater Operators, which were started by a man named James P. Foran. These companies provide service and maintenance workers, who are members of Local 79, for entertainment venues owned by the Mike Illitch family. The Illitches own the Little Caesar’s pizza chain, along with the Detroit Tigers baseball team and the Detroit Red Wings hockey team. Local 79 members at Joe Louis Arena, where the Red Wings play, are employees of Arena Operators, Ltd. At Detroit’s Fox Theater, another Illitch property, Local 79 members work for Theater Operators, Ltd.
According to state records, James P. Foran started Arena Operators in 1979 and Theater Operators in 1988. Foran is now an attorney for the company, according to the State Bar of Michigan. But James P. Foran also works for Local 79. He earned over $50,000 last year in salary and expenses for a position listed simply as “H&W” in the local’s financial records. [His] father, Jack, is president of Arena Operators and Theater Operators. Policicchio personally negotiates the contracts with the Foran companies; they do not seem to be many steps above the “sweetheart” level…
[Employees] become union members only after working a probationary period of 100 events in a 12-month period. If a worker cannot work 100 events in twelve months, [he] must start over again. Although the arena holds about 150 events a year, many workers still do not make the minimum. Overlapping show schedules and simultaneous events make it difficult. “The workers end up perpetually on probation,” said Elena Herrada, a former Local 79 business agent. “That means that while they’re on probation they are not full-fledged union members, and have no access to the grievance process and no protection under the contract.” There is also no definition in the contract of what constitutes an “event.” This can make the wage and probation provisions very flexible in the hands of the employer…
Contracts are not the only problem for Local 79 members. According the members and staffers, workers who want to assert their rights sometimes find themselves very much alone. …Local 79 staffers say that it was common for business agents to undermine or ignore workers…
Herrada believes that the local’s handling of such issues reflect the leadership’s inability to relate to the members. …[she said,] “The president does not represent the majority of the people whose lifestyles are so far removed from his.” Policicchio’s 27-year career has been spent mostly on the SEIU staff. He has been an officer of Local 79 since 1984. Last year, the international union paid him $143,502, while the local paid him just over $8,000 in salary and expenses. Herrada…was laid off in March and … she believes that it was because of her involvement [in high profile] fight [with a contractor]. With Herrada’s layoff came several others…
One SEIU staffer whose job has remained intact is Michon Policicchio, Paul’s wife. Local 79 paid her $29,000 last year, roughly the same as most full-time staffers in her job category. Both former and current Local 79 staffers, however, say that Michon Policicchio works part-time. Many staffers thought that the local was cutting back due to financial problems. Although Local 79’s 1998 financial records do not indicate any deficit, [ex-Local 79 director Ike] Townsend says that Local 79 officers and staff had meetings about the local’s money problems.
Whatever money problems there were may have resulted, at least in part, from some unusual expenditures. New furniture for Michon Policicchio’s office and others at the local, a video surveillance system in the local’s offices, the lease on Paul Policicchio’s car, catered meals, and an apartment in one of downtown Detroit’s high-rent high-rises are among the items former staffers say the local has spent its money on…
Paul Policicchio did not return repeated telephone calls. “He will not be commenting,” said SEIU Local 79 spokesperson Laura Johnstone, who also would not respond to questions. Nor would the international union. Several Local 79 staffers, former staffers, stewards, and members of Local 79 also declined to comment or be interviewed. Some former staffers were afraid that speaking out would cause them to lose their jobs, or have difficulty getting other jobs. Rank and file workers feared that the union would allow their employers to fire them. Stewards were concerned that the union would negotiate worse contracts for them…”