Racketeering Case against SEIU Will Proceed

Dirty tactics 0

business wireA federal judge has denied a motion to dismiss a racketeering case against SEIU and two of its affiliates for the second time.

In a setback for the Service Employees International Union (SEIU) and two local affiliates, the unions’ motion seeking dismissal of a federal RICO [Racketeer Influenced and Corrupt Organization Act] suit against them has been denied.

On Oct. 10, 2012, HealthBridge Management, LLC and CareOne Management, LLC, and others jointly filed the RICO suit, claiming that the unions deemphasized traditional labor relations in favor of a coordinated corporate campaign involving extortionate threats and acts of mail and wire fraud. Late last week, a federal judge denied a motion by the SEIU, United Healthcare Workers East, SEIU, 1199 (UHWE) and New England Health Care Employees Union, District 1199, SEIU (NEHCEU), to dismiss the RICO suit.

This follows a decision in 2013 rejecting the UHWE and NEHCEU’s motion to dismiss the case in its entirety and allowing certain claims under RICO to proceed. The case is being heard by United States District Judge for the District of New Jersey…

In their October 2012 statement announcing the RICO suit, the two companies stressed that they have worked cooperatively with unions in the past and fully respect and embrace the collective bargaining process. They said the suit is not about collective bargaining or other traditional labor activity but instead involves what they claim is a campaign of extortionate demands and myriad unlawful tactics used against the companies by the unions.

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