Upcoming Challenges for Labor in California in 2004

• Budget Cuts
  • There are number of cuts that destroy good union jobs and hurt communities. Social services will be drastically cut and state work will be contracted out.
  • The California Film Commission and the Film California First program remain un-funded in the Governor AS budget. They were moved to the Business, Transportation, and Housing Agency last year through AB 1277. Budget trailer bill legislation will be required to provide operating money for these programs.
    
• Executive Orders
  • E.O. #2 – Allows the Schwarzenegger Administration to suspend and review regulations that are vital to laws being enacted. All laws passed during the Davis Administration are targeted.
    
• Ballot Initiatives
  • Defending SB 2 – Employment-based Healthcare Coverage and keeping it off the November Ballot
  • Supporting the Proposition 56 – The Budget Accountability Act. The act would hold legislators accountable for passing a budget on time and reduce the vote required to pass a budget from 2/3 to 55%.
  • Possibly Workers’ Compensation on the Ballot if no deal worked out with the Governor
    
• Workers’ Compensation Insurance
  • In 2002 labor increased benefits (AB 749).
  • In 2003, to address concerns by employers about costs labor passed SB 228 and AB 227 to control costs.
  • Now Schwarzenegger wants further benefit cuts and wants to allow company doctors. He has said if there is not a package he likes on his desk by March 1st, he will take WC to the ballot in November.
  • Labor will seek to re-regulate the industry and cut costs to employers by going after broker fees and attorney fees which are now unregulated based on an irrational system
    
• Unemployment Insurance
  • Defending benefit levels and eligibility criteria.
  • UI Fund will become insolvent within the month and employers will see increases in their contribution rates.
  • Addressing the Fund insolvency through;
    • Increasing the taxable wage base above $7,000;
    • Changing from a ‘pay-as-you-go’ system to a system that requires employers to pay more into the fund when unemployment is low so there are funds for the lean years.
    • Increasing Employer tax rates