California's Union Showdown

At Wall Street Journal:

Next month in California, nearly 45,000 Kaiser Permanente health-care workers will choose their union. America hasn't seen a private-sector labor election this big since the United Auto Workers organized Ford in 1941. By the time ballots are cast, tens of millions will have been spent on a six-week campaign as brutal as any political race this year. At stake? No less than the future of America's most powerful labor group, the Services Employees International Union.

What's also unusual about this election is that it doesn't pit union against employer, but union against union. Kaiser's workers were organized years ago by the SEIU. The drama started last year when Sal Rosselli, who ran the SEIU's huge California health-care local from Oakland, left to found a rival outfit called the National Union of Healthcare Workers (NUHW). His union has but 6,000 members; the SEIU claims 2 million. Mr. Rosselli has spent the last 18 months trying to steal away as many of the 150,000 members from his old SEIU local as possible through a series of union elections. "It's a real David and Goliath story," he says.

Kaiser—the SEIU's crown jewel in health care—is a possible game changer. Employees who hold some of the best-paying unionized jobs around will have the choice to switch from the SEIU to Mr. Rosselli's group. Californians make up a third of the union's members, so losing Kaiser would be a grave blow.

Of course, no union can afford to lose dues-paying members in a shrinking market for organized labor. Only 12% of the American workforce (7% in the private sector) belongs to a union today, down from 34% in the 1950s. Some see salvation in health care. America is aging, and ObamaCare will eventually push 30 million Americans into the health-insurance system, creating scores of new jobs along the way. "Outreach to nonunion workers is our top priority," says Mary Kay Henry, who took the helm of the SEIU in April.

First Ms. Henry must douse the fires started by Andy Stern, her controversial predecessor. In 14 years atop the SEIU, Mr. Stern pioneered a new labor strategy: Size brings power, so grow at all costs. He bullied and charmed companies to get them to unionize—often, claimed his critics, in exchange for weak contracts for the workers. He raided smaller unions. And he centralized power around the group's Washington headquarters. In a decade, the SEIU doubled its membership and became the single biggest contributor to the Democratic Party.

But Mr. Stern made powerful enemies in the House of Labor, which was one of the reasons cited for his surprise decision to step down this spring. California is the most fiercely fought campaign left over from his tenure.

More at the link.