Fear of Trump Triggers Deep Spending Cuts by Nation's Second-Largest Union

An internal memo outlines plans to slash budgets by 30 percent at SEIU, the group behind the Fight for $15.

Fast-food workers organized by the Service Employees International Union protest outside of a McDonald's restaurant in Los Angeles in 2013.

Patrick T. Fallon/Bloomberg
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In a clear sign that labor unions are bracing for lean times under Donald Trump, the massive Service Employees International Union is planning for a 30 percent budget cut over the next year, according to an internal memo reviewed by Bloomberg Businessweek.

“Because the far right will control all three branches of the federal government, we will face serious threats to the ability of working people to join together in unions,” SEIU President Mary Kay Henry wrote in an internal memo dated Dec. 14. “These threats require us to make tough decisions that allow us to resist these attacks and to fight forward despite dramatically reduced resources.” After citing the need to “dramatically re-think” how to implement the union’s strategy, Henry’s all-staff letter announces that SEIU “must plan for a 30% reduction” in the international union's budget by Jan. 1, 2018, including a 10 percent cut effective at the start of 2017.