Fighting for a Better California
CA Labor Federation, AFL-CIO
2005 Legislative Agenda

Three years after this country’s recession officially ended, our members have seen little economic relief. Health care costs rose by double digits in 2004 for the seventh year in a row. Paychecks for middle-class families cannot keep pace with housing costs. The jobs lost during the recession still have not been recovered.

Meanwhile, corporate CEO pay continues to soar. In 1989, CEOs earned 71 times what an average worker earned. In 2003, CEOs earned 185 times more than a typical worker. Workers are boosting productivity levels, but share little of the financial rewards.

The economy in California rewards corporate profiteers and punishes workers – and it is time to fix it. We will fight to rein in corporations that ship our jobs overseas. We will fight to reduce workers’ prescription drug costs and protect their health care benefits. We will fight to lift the floor of wages to boost incomes for all workers. And we will fight to protect retirement security.

Together we will fight to build a fair economy and a better California for workers and their families.

KEEPING GOOD CALIFORNIA JOBS

Hire California workers. Our taxpayer dollars should be used to create good jobs in California. Companies that receive state contracts should seek to hire California workers first. AB 1654 (de la Torre) would grant a bid preference for state contractors who hire Californians to do the work. More than a dozen other states provide some sort of preference for state vendors and contractors who employ in-state workers.

Track the offshoring of our jobs. Offshoring continues to eliminate good California jobs. Even some state taxpayer funds are being used to create jobs in other countries. Yet, the state does not keep track of this data. AB 524 (Chan) would require state contractors to report back to the state (1) the number of workers they hire outside the U.S. and (2) information about any subcontracted work that is performed.

Reduce the cost of workers’ compensation insurance. The recent changes in the workers’ compensation system have denied medical treatment to injured workers and taken away permanent disability benefits from those most seriously injured. These changes were enacted to bring down the cost of workers’ comp insurance for employers, but employers are not seeing lower prices. This will bill will guarantee that these cost savings are passed on to employers. SB 46 (Alarcon) would stabilize and reduce the price of workers’ comp insurance in California.

Increase the minimum wage. California currently pays the lowest minimum wage of all West Coast states – Washington, Oregon, Connecticut, and Alaska all have higher minimum wages. The current minimum wage of $6.75 per hour falls far short of what workers need to support a family. California must increase our minimum wage. AB 48 (Lieber) would increase our minimum wage from $6.75 to $7.75 over two years, and then index it to the cost of living.

ENSURING CORPORATE RESPONSIBILITY

Enforce our state’s labor laws. Each year, scofflaw employers steal millions of dollars from our state treasury by cheating on payroll, unemployment, workers’ comp, and business taxes. In difficult economic times, the underground economy grows as employers cut corners and disobey state laws. Too often, an employer who cheats on income taxes also cheats on other required state taxes. AB 875 (Koretz) would require the Labor Agency and Franchise Tax Boards to develop protocols where certain labor law violations would trigger a tax audit of the employer. Certain tax violations would similarly trigger a labor law audit.

Require corporations to pay their fair share of taxes. Publicly held corporations report two different incomes – high profits to their shareholders and no profits to tax collection agencies. Requiring corporations to pay state taxes on the “book income” reported to their shareholders would (1) boost state revenues, and (2) reduce the incentive to mislead shareholders. Corporate meltdowns like Enron, WorldCom, and Tyco could be avoided by requiring honest reporting of corporate incomes. AB 675 (Klehs) would require public corporations to pay state taxes on their book income.

CREATING ACCESS TO AFFORDABLE AND HIGH QUALITY HEALTH CARE

Make prescription drugs more affordable. Prescription drugs are one of the primary cost-drivers behind skyrocketing health care costs. The pharmaceutical industry remains one of the most profitable in the world, and their profits continue to rise. We will continue to convene the OURx Bill of Rights coalition, an alliance of union, consumer, and senior organizations that are fighting for meaningful prescription drug reform. We will support and highlight any legislative measures to lower drug costs, expand access and improve drug safety. We will also expose any industry-backed measures that boost pharmaceutical company profits without providing meaningful benefits to individual Californians.

Provide health insurance for working families. Proposition 72, a measure that would have required medium and large employers to provide family health insurance, garnered nearly 6 million votes on the November 2004 ballot. Clearly, Californians are looking for health care reform. Voters recognize that workers, employers, and the government should share the responsibility to expand access to quality, affordable health care. We will support efforts to require certain employers to provide family health insurance. It’s good for business, good for workers, and good for California.

Prevent employers from shifting their responsibilities onto taxpayers. When businesses fail to provide their workers with good wages and health care benefits, those workers are forced on public assistance. The end result: taxpayers pay the price for workers who end up relying on public health and financial assistance programs. A recent UC Berkeley study documented nearly $100 million in California taxpayer subsidies to a single corporation – Wal-Mart. Taxpayers have a right to know which corporations are profiteering at taxpayer expense. AB 89 (Horton) would require the disclosure and annual reporting of employer names whose workers receive certain public assistance while retaining worker privacy. SB 593 (Alarcon) would require large employers to repay the state General Fund for the health care subsidy they receive.

MAINTAINING THE SAFETY NET

Oppose the privatization of Social Security. Social Security, America's most successful social program, protects families when a worker retires, becomes disabled or dies. Its benefits are lifelong, guaranteed, and unmatched by any other type of insurance or investment available on the private market. The Bush Administration is seeking to undermine Social Security by privatizing it. Privatization would force workers into risky and expensive private investment accounts with far higher administrative costs. The Bush proposal is likely to raise the retirement age, cut benefits, and raise taxes or run up huge new federal deficits. Assembly Joint Resolution 13 (Torrico) would put California on record opposing the privatization of Social Security.

[return to top]