Sheng Thao and those unions

At the Coalition for a Better Oakland, we’ve worked hard to get rid of the likes of Sheng Thao, who we correctly perceived as a crass, manipulative politician, entirely owned by private interests, and with no particular moral beliefs or intellectual skills. She was one of those grifters who went along with whoever gave her the most money, especially corporations and labor unions. The result, as we’ve seen, has been disastrous for Oakland.

Now we’re learning just how deeply she was in the pockets of private, secretive entities looking to trade cash for influence: not only California Waste Solutions but the SEIU as well, and particularly its local 1021.

What is SEIU Local 1021 anyway? It represents over 60,000 employees in local government, non-profits, healthcare companies and schools throughout Northern California. That makes 1021, which is headquartered in Oakland, a major power player in politics. Early on in Thao’s career, Local 1021 saw that the rising politician would be a good investment. As Thao’s first term on the City Council neared its end, she decided to run for Mayor. “What propelled Thao to victory in 2022,” the San Francisco Chronicle reported, “was the near uniform support of organized labor, which is huge in the Town, where 60% of voting households contain at least one union member. Labor raised more than $800,000 for Thao.” Oaklandside added that “Thao, the District 4 councilmember, is benefitting from the support of most of the unions that represent city employees, as well as unions for the building trades, healthcare workers, and teachers.”

While it’s impossible to account for every dollar Local 1021 gave to the Thao campaign, we do know that it was decisive in determining the election’s outcome. In 2022, the average Local 1021 member paid $968 in dues and fees to the union. That year, Local 1021 collected $50.1 million from its members, with $3.4 million going to “political activity and lobbying” and another $537,000 for “contributions, gifts and grants” in “cash disbursements.” If 2022, the year Thao ran for Mayor and won, with Local 1021’s support, was similar to 2023 (for which we have audited financial results), a huge chunk of that $4 million went for “advocacy” (“donations for politically motivated organizations or ideologically-aligned groups or other political advocacy”), as well as other costs associated with supporting political candidates (hotels, public relations, restaurants, lawyers, and travel). A close examination of all contributions to “Sheng Thao for Oakland Mayor 2022” (according to campaign statements provided by the Thao campaign to the City of Oakland, as required by ethics laws) shows scores of union donations, including from SEIU Local 1021 but also including California Nurses Association, the International Brotherhood of Electrical Workers, United Healthcare Workers, the Bricklayers & Allied Craftworkers, Transport Workers Unions, United Food and Commercial Workers, as well as from one Nathan Duong, who may be related to the Duong family that was raided by the FBI along with Thao. The many hundreds of donations are all for less than $1,800, as required by the Oakland Campaign Reform Act (OCRA), but together they represent a substantial amount of money.

That the unions exulted when Thao won came as no surprise. “Sheng Thao will be the next Mayor of Oakland,” Local 1021 trumpeted shortly after the 2022 election, adding, “From the moment she announced her candidacy, SEIU 1021 members have been on the front lines doing the work to talk to voters and support her candidacy.” But what did SEIU and Local 1021 get for all their campaign contributions? Certainly a guarantee from the candidate that she would support hiring as many SEIU employees for city-contracted jobs as she could. Also that she would support efforts to increase the minimum wage. Also that she would turn a blind eye to ongoing scandals at SEIU, including allegations of wrongful terminations, sexual harassment and, lately, SEIU support of anti-Israel protests.

Certainly, unions have the right to fight hard for their members. But when the deals are struck in darkness, behind closed doors, and the public is not permitted to know anything about them, then a line has been crossed. This is evident from what appear to be financial crimes committed by Thao and her team and their corporate donor, California Waste Solutions—crimes that were big enough to bring in the FBI. All this simply adds to the impression that there’s something sleazy about Sheng Thao.

It’s only fair to point out that no one has yet been charged in this case, and Thao (and the Duongs) must be presumed to be innocent. But our local media has done a piss-poor job investigating the outsized role that unions play in Oakland politics. It’s time for the Chronicle, KTVU-TV, Oaklandside, KQED and all the other liberal outlets to stop being so obsessed with race and equity, and look into who’s giving tons of money in “cash disbursements” to people like Thao, and what they’re getting for it. That would be real reporting, instead of the ideological cheerleading they now practice.

Steve Heimoff