Busted: ActBlue Unfairly Targets Union Members With Layoffs, Employees Say
ActBlue, a powerhouse in Democratic fundraising, recently laid off 32 of its 54 employees, which accounts for 17% of its workforce. Ironically, this happened less than two months after its union announced a collective bargaining agreement with the company that aimed to protect employee welfare, including better treatment and job security.
The ActBlue Union, representing the affected workers, disagreed with the company’s decision, claiming that the layoffs unfairly targeted union members as a result of the company’s current financial woes. The union argued that the decision to lay off workers would put the organization’s progressive accolades at risk and jeopardize its ability to finance the Democratic movement during the upcoming 2024 elections.
The union further alleged that ActBlue’s management refused to reduce its pay to avoid layoffs or job losses, stating that taking such measures would be “oppressive.” The union expressed disappointment in ActBlue’s leadership, emphasizing that prioritizing their profit over rank-and-file workers’ welfare goes against the company’s progressive values.
Meanwhile, ActBlue CEO Regina Wallace-Jones and other executives were being handsomely compensated. Around 11 ActBlue employees earned over $200,000 in 2021, according to tax forms. Wallace-Jones, the first black female CEO of the company, assumed her new role in January 2023 following the departure of her predecessor after a 14-year stint.
ActBlue defended the layoffs, stating that it was part of a restructuring program aimed at ensuring that the company provides the best possible fundraising solutions for Democrats. Nonetheless, the union’s claim that ActBlue is experiencing financial difficulties may surprise many, considering that ActBlue is the primary fundraising vehicle for progressive groups and politicians, having raised nearly $12 billion since its founding in 2004. Additionally, ActBlue charges a 3.95% flat fee on every dollar it raises, accumulating a vast amount of cash that has helped cement its monopoly in the progressive fundraising scene.
ActBlue reported having $68.7 million in cash reserves as of its most recent filing with the Federal Election Commission. However, its nonprofit sister company, ActBlue Technical Services, reportedly has a net asset worth of $92.8 million as of its latest financial disclosure.
ActBlue offered the affected employees eight weeks of pay and benefits and the option of sharing their contact info with potential employers. The company did not respond to a request for comment.
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