A front-page investigation in the Los Angeles Times this weekend reported that dues from Tyrone Freeman's chapter of SEIU -- based in Los Angeles and one of the biggest in the country --- "have paid hundreds of thousands of dollars to firms owned by the wife and mother-in-law of the labor organization's president."
The story goes on to document big spending "on a Four Seasons Resorts golf tournament, a Beverly Hills cigar club, restaurants such as Morton's steakhouse and a consulting contract with the William Morris Agency, the Hollywood talent shop."
Freeman denied any wrongdoing. "Every expenditure has been in the context of fighting poverty," he told the Times.
Freeman, 38, is one of the leaders of California's labor movement, as president of a 160,000-strong union composed mostly of low-wage workers. He is also close with Andy Stern, the president of the national arm of the Service Employees International Union. He has openly feuded with Sal Rosselli of United Healthcare Workers-West, the president of one of SEIU's other largest locals.
After the Times story broke, Freeman said he had "invited our International Union to review our books at its earliest convenience."
"We are confident that the findings of this review will reinforce the integrity of our organization," he said in a statement.
Joe Matthews of the New America Foundation calls Freeman a "young and talented leader," but says the financial scandal will be "a difficult test of the union movement in LA and nationally."
"Freeman needs to step down and offer a full-throated apology," Matthew concludes.
But why such a dramatic step?
"The rise of the LA unions as a labor force has been aided by the widespread perception that our unions are not old-style, corrupt empires," Matthews writes. "This is supposed to be new labor. The public needs to see transparency and accountability in the response to this."
Freeman hasn't addressed the story yet on his blog, but it's worth keeping an eye on.
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