This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Push To Cripple Labor Clout Extends To California

Stocks in this article: BRK.B

JUDY LIN

LOS ANGELES (AP) â¿¿ A national effort to cripple organized labor has crossed into California as voters Tuesday consider a ban on the way unions have traditionally raised money for political causes.

Following up on recent efforts to dilute the strength of unions in Wisconsin, Ohio, Indiana and elsewhere, business interests and wealthy Republicans have contributed tens of millions of dollars to pass Proposition 32. California's major labor groups have responded with equal force, spending at least $75 million to defeat it.

Supporters describe Proposition 32 as a cure-all for special-interest politics by prohibiting corporations and unions from collecting money for state political activities from employees or members through paycheck deductions. But it would hit unions the hardest because corporations do not typically deduct money from employee pay for state political activities and because there are few unionized employees left in the private sector.

The initiative would prohibit unions and corporations from making donations directly to state candidates but would not stop corporations, the wealthy or unions from spending unlimited amounts of money on political campaigns through so-called independent expenditure committees. Yet because unions would have a much harder time raising money, the political playing field would be tilted heavily in favor of corporations and rich individuals.

Overall, there are about 2.4 million union members in California, and the money collected from them has helped make teachers, prison guards and nurses among the most powerful interest groups in Sacramento. They overwhelmingly support Democrats, who control both chambers of the Legislature and every statewide office.

Labor leaders are asking California voter to reject an initiative they say would silence workers. Voters rejected similar ballot questions in 2005 and 1998.

The California Teachers Association, the state's largest teachers union, has led the charge against Proposition 32.

A number of committees have been formed to support it. More than $4 million has come from the American Future Fund, an Iowa-based organization that supports conservative causes with ties to billionaires Charles and David Koch, who have provided crucial support to the tea party.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,849.28 +21.53 0.12%
S&P 500 2,069.96 -2.87 -0.14%
NASDAQ 4,803.0540 +15.7370 0.33%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs