Esperanza Maciel, an employee of Flying Food Group, has raised concerns about the deduction of money for health insurance without receiving coverage. In an interview, she said that workers had money deducted for health insurance for years but were denied coverage despite the union collecting payments.
“They were taking money out for medical insurance, but a lot of us never received it,” said Maciel. “Some people have gone five, even seven years without insurance.”
Recent reports have brought to light several union health fund scandals involving the mismanagement of worker contributions intended for medical coverage. According to WSWS, Politico, and congressional records, the president of 1199SEIU United Healthcare Workers East was removed following revelations of embezzlement related to luxury travel expenses. Additionally, the House Education & Workforce Committee has initiated inquiries into the misuse of medical benefit funds in multiple unions. These cases underscore ongoing concerns over accountability within union-run benefit systems.
In a significant case, federal investigators from the Department of Labor’s Employee Benefits Security Administration detailed how funds meant for worker medical benefits were diverted for personal gain by the former president of the United Industrial and Service Workers Union. He was convicted of embezzling approximately $785,000 from the union’s health plan through rental payments, defense costs, inflated salaries, and loans.
Studies indicate that employer-sponsored insurance plans covering most unionized workers are not immune to systemic challenges. National health insurance research and industry studies show that around 17% of employees experience claim denials or partial denials each year, while about 10% remain underinsured or face gaps in coverage.
Maciel has filed multiple unfair labor practice charges with the National Labor Relations Board against Unite Here Local 11. She alleges intimidation and retaliation by union officials at Los Angeles International Airport. Her role has been documented through labor dispute filings since late 2024, as reported by the National Right to Work Committee.
Flying Food Group is a major airline catering and prepared-foods supplier founded in 1983 and headquartered in Chicago. The company serves more than 100 airline, retail, and institutional clients and employs between 1,000 and 5,000 workers. It generates an estimated $570 million annually by providing in-flight meals and airport food service solutions. This information is documented by Datanyze and Growjo company profiles.
