FOR IMMEDIATE RELEASE:
May 1, 2020
Contact: Tracey Conaty, [email protected]
National Union AFSCME Places UPW, Local 646, Under Administratorship “to Restore Integrity and Transparency for Members”
Move comes after severe financial and other mismanagement by UPW leadership
WASHINGTON – Today, the American Federation of State, County and Municipal Employees (AFSCME), the national union for UPW, Local 646, placed UPW under administratorship “to restore integrity and transparency for members.” This means the national union has assumed responsibility for the day-to-day affairs of UPW, including the continued representation of UPW members in the workplace.
AFSCME national president Lee Saunders has named AFSCME Area Field Services Director Liz Ho as UPW Administrator.
The action stems from an AFSCME International Union audit and the findings of AFSCME’s Judicial Panel and International Executive Board Trial Officers that UPW suffered from deficient financial management, including the opportunity for serious abuse and misuse of member dues money.
The Trial Officers issued a decision yesterday that removed UPW State Director Dayton Nakanelua and UPW Administrator of Fiscal and Membership Services Jeanne Endo from their respective positions.
In 2019, AFSCME conducted a review of UPW’s policies, minutes, financial statements and accounting records between 2017 and 2019. The review was conducted to ensure that the overall management of UPW met the high standards its members and the AFSCME Financial Standards Code require.
The audit found that “[T]here does not appear to be meaningful oversight on how funds are spent or accounted for.” The review found abuse and misuse of union funds and the existence of questionable perks and benefits. TRUSTA, UPW’s independent accounting firm, sent a letter to UPW late last year confirming AFSCME’s concerns regarding the lack of fiscal controls.
In a letter sent today to UPW’s 13,000 members, Saunders explained that in late 2019, Nakanelua acknowledged and agreed to remedy many of these findings, but he still has not taken appropriate action. Saunders announced that he has tapped Ho to assume responsibility for the day-to-day operations of the local.
“Liz Ho has a long history of tireless work on behalf of Hawaii’s public service workers,” Saunders said. “There is no one better to restore the high standards you should expect from your union.”
“I’m eager to get to work getting UPW’s financial house in order and rebuilding trust among its members,” said Ho.
Saunders also assured UPW members that, “There will be no interruption in member services. Union representatives will continue to help resolve job-related issues, and we will continue to advocate on behalf of all UPW members.” Saunders further noted, “This is especially important given the public health and economic challenges created by the pandemic, where Hawaii public service workers are on the front lines of the crisis.”
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AFSCME’s 1.4 million members provide the vital services that make America happen. With members in communities across the nation, serving in hundreds of different occupations — from nurses to corrections officers, child care providers to sanitation workers — AFSCME advocates for fairness in the workplace, excellence in public services and freedom and opportunity for all working families.
