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   UNITE HERE Local 11's nonprofit affiliate took PPP loans as it hired   
   union staff   
      
   Labor experts say a top California union used its affiliate   
   nonprofit to pocket over $250,000 in federal relief funds it was   
   ineligible for.   
      
   Labor unions were not eligible for Paycheck Protection Program loans   
   in 2020. But the Hospitality Industry Training and Education Fund, a   
   501(c)(3) affiliated with the UNITE HERE Local 11, received a   
   $258,265 PPP loan in May 2020. The nonprofit is technically separate   
   from the Los Angeles-based union, but the groups often operate as   
   one entity. The nonprofit trains Local 11 workers and hired several   
   Local 11 employees between May and July 2020. The hirings came after   
   a series of layoffs at Local 11 that spring. Members of both groups   
   often speak of them as one entity.   
      
   "So happy you are on the HTA/Local 11 Team," the nonprofit commented   
   on the Facebook page of one of the employees it hired from Local 11.   
   Several of the Local 11 employees who joined the nonprofit promote   
   the union and identify as members.   
      
   Union watchers say arrangements like this allow unions to circumvent   
   restrictions and line their pockets.   
      
   "Tricks like these allow unions to hide suspicious transactions in   
   plain sight, evading the intent of laws designed to increase   
   transparency, bring accountability, and curb corruption," the Yankee   
   Institute’s Frank Ricci told the Washington Free Beacon.   
      
   Labor unions are struggling financially after decades of declining   
   membership. In an attempt to capture dues in the face of right to   
   work laws, unions have restricted the window during which members   
   can opt out of paying dues. President Joe Biden is looking to roll   
   back a Trump administration rule that prohibits third-party payments   
   of Medicaid funds, which previously went to unions through   
   membership dues.   
      
   In order to receive PPP loans, the Small Business Administration   
   requires an organization to prove it needs federal funds to keep   
   staff on payroll. But tax forms reviewed by the Free Beacon show   
   that the union's nonprofit had a banner year.   
      
   The nonprofit received an unprecedented $34 million worth of   
   government grants in 2020. Staff salaries rose by 33 percent across   
   the board, while executive director Adine Foreman’s salary grew 75   
   percent. At $314,611, Foreman’s salary exceeds the total of the   
   group’s PPP loan.   
      
   Neither Local 11 nor the Hospitality Industry Training and Education   
   Fund responded to a request for comment.   
      
   Charlyce Bozzello, communications director for the Center for Union   
   Facts, noted that Local 11 organizers have criticized hotels for   
   using PPP loans during the pandemic closures.   
      
   "Instead of embracing the help for its-out-of-work members, Local 11   
   criticized hard-hit hotels for utilizing PPP," Bozzello told the   
   Free Beacon. "Now, we learned that the union hypocritically made use   
   of PPP funding for its own related entities, and may have even   
   skirted the rules."   
      
   Labor unions were unable to receive PPP loans in 2020 but were   
   approved for the program in March. Local 11 received a $1,851,872   
   loan in April.   
      
      
   https://freebeacon.com/coronavirus/california-union-uses-loophole-   
   to-pocket-covid-relief-funds-labor-experts-say/   
      
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