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Union Influence in the California Democratic Party’s 2013 Convention Resolutions

Can you guess which special interest group influenced many of the resolutions approved at the California Democratic Party convention on April 14, 2013?

That’s right, unions.

Here’s my annotated collection of the 2013 resolutions and the clean version of the resolutions on the California Democratic Party web site. (As the party web site says, “Click here to view the full repot.”)

Avid readers of www.UnionWatch.org articles will recognize the union objectives behind many of these resolutions, even though the resolutions often don’t explicitly state the ultimate legislative, executive, or judicial goal.

California Democratic Party Resolutions for 2013 with Obvious Union Influence

1. Resolution 13-04.3C opposes proposals to restrict “public participation” in environmental review for projects and activities under the California Environmental Quality Act (CEQA). A co-sponsor of this resolution is the State Building and Construction Trades Council of California, an organization active in identifying environmental problems with potential construction projects until the owner agrees to sign a Project Labor Agreement.

Mailers Expose Union CEQA “Greenmail” Against Solar Developers – September 26, 2012

Unions Defy CEQA Reformers with Taunting Resolution – February 12, 2013

The resolution refers to a “quantative analysis” of CEQA that allegedly shows how this law encourages economic prosperity in California. Readers of www.UnionWatch.org will recognize this study because of its connections to the California Construction Industry Labor-Management Cooperative Trust. See this article:

Opponents of CEQA Reform Cite New Study with Union Connections – March 12, 2013

2. Resolution 13-04.11 complains about the capitalists (“Captains of Industry” and others) who allegedly control the University of California and California State University systems. It calls for “representation of the public” on the boards of regents. Public means officials of unions representing faculty and staff.

3. Resolution 13-04.16 demands “all actions” to ensure that California’s 121 charter cities lose state funding if they exercise their right under the state constitution to establish their own policies concerning government-mandated construction wage rates on purely municipal government projects or private projects that only receive government assistance from that municipality. Several articles in www.UnionWatch.org have reported on charter cities freeing themselves from costly so-called “prevailing wage” mandates, as well as the union effort in 2013 through Senate Bill 7 to suppress local government authority through financial disincentives.

California Supreme Court Supports Rights of Charter Cities Over State Legislature – July 3, 2012

With Senate Bill 7, California Unions Advance Plot to Neuter City Charters – February 28, 2013

4. Resolution 13-04.35 calls for Congress to help unions that represent U.S. Postal Service workers.

5. Resolution 13-04.37 complains about a U.S. Supreme Court decision that fouls up some plans for class action lawsuits against employers for labor law violations. It decries how corporations are “increasing forcing their employees to unwittingly sign mandatory arbitration agreements.” (How can force be involved if the employee is unwitting?) Nothing is mentioned about union organizers “increasing forcing employees to unwittingly sign union representation cards” for card check purposes.

California Democratic Party Resolution Against StudentsFirst and Democrats for Education Reform

California Democratic Party Resolution against StudentsFirst and Democrats for Education Reform.

6. Resolution 13-04.47 attacks education reform organizations such as StudentsFirst (a group led by Michelle Rhee) and Democrats for Education Reform (a group led by Gloria Romero). Ironically, the resolution is poorly written and includes several grammatical errors and even a spelling error. It tries to encompass too many ideas and overreaches in its bombast. A grade of “D” for writing (but an “A” for promoting social justice) goes to the sponsors: the California Teachers Association (CTA), the California Federation of Teachers (CFT), and the California Faculty Association (CFA).

California Democrats Blast Efforts to Overhaul SchoolsLos Angeles Times – April 14, 2013

State Democrats Decide Who’s a REAL DemocratLos Angeles Times (op-ed by Karin Klein) – April 16, 2013

Breaking News! California Democratic Party Blasts Corporate Education Reform: UPDATE – Diane Ravitch’s Blog – April 15, 2013

LA Times Defends Wall Street Hedge Fund Reformers – Diane Ravitch’s Blog – April 16, 2013

7. Resolution 13-04.77 rejects the Keystone XL pipeline. It cites two unions opposed to the project and a study critical of the project prepared by the union-oriented Global Labor Institute at the Institute for Labor Relations at Cornell University. This issue divides unions: many construction unions support the Keystone XL pipeline because all contractors will be required to sign a Project Labor Agreement to work on it.

If you are a “Captain of Industry,” one of those dastardly “Republican operatives,” a citizen of “the old Confederacy,” or tend to “blame educators and their unions for the ills of society,” these hostile resolutions are directed at you. But everyone will find them entertaining, and avid readers of www.UnionWatch.org might even agree with a few of them.

In the meantime, to avoid being the target of future resolutions, pay your “fair share,” avoid “the race to the bottom,” “stabilize the planet’s climate,” protect the “culturally binding fabric,” and – of course – be a socially responsible, Democrat-supporting billionaire.

More News Coverage of California Democratic Party Resolutions for 2013

CA Democrats Take Aim at Efforts to Overhaul Education, CEQA – Sacramento Bee – April 14, 2013

Calif. Dems Back Gun Control, Prop 13 Reforms – San Francisco Chronicle (Associated Press) – April 14, 2013

Kevin Dayton is the President & CEO of Labor Issues Solutions, LLC, and is the author of frequent postings about generally unreported California state and local policy issues at www.laborissuessolutions.com. Follow him on Twitter at @DaytonPubPolicy.

Opponents of CEQA Reform Cite New Study with Union Connections

A broad coalition opposing any changes to the California Environmental Quality Act (CEQA) held a press conference today (March 12, 2013) that included the findings of a newly-released study, The Economic and Environmental Impact of the California Environmental  Quality Act.

The study was written by a University of Utah professor with a long history of academic work biased toward the construction union agenda. It was funded by the union-affiliated California Construction Industry Labor-Management Cooperation Trust. Study results were summarized at the press conference by Bob Balgenorth, chairman of the California Construction Industry Labor Management Cooperation Trust and the former head of the State Building and Construction Trades Council of California.

This March 11, 2013 Associated Press article Coalition Forms to Defend California Environmental Law reports on what happened:

Common Ground, the new coalition group opposing reforms, commissioned a report as part of its effort to emphasize the importance of the law.

The study by Peter Philips, a University of Utah economics professor, points to the state’s record in building alternative-energy projects and maintaining construction jobs as evidence that the law is working.

“Has CEQA actually hindered construction? Far from it,” said Bob Balgenorth, chairman of the California Construction Industry Labor Management Cooperation Trust. “If anything, it’s facilitated greater construction, a cleaner environment and a better quality of life for Californians.”

Brown and the Legislature’s Democratic leaders are negotiating changes after an attempt to pass a bill failed last year.

The governor’s office had no comment on the report, but Brown has advocated for more consistent standards in reviewing development projects.

It’s unlikely that Governor Brown is ever going to comment on the report. And the business coalition in support of CEQA reform appears to be strategical avoiding any references to unions and their abuse of CEQA to obtain labor agreements and other economic concessions. So far I haven’t seen any news reports taking a critical look at this study or its origins.

So here’s the scoop about this study, courtesy of www.UnionWatch.org:

The Author of the New CEQA Study

The Economic and Environmental Impact of the California Environmental  Quality Act was written by Peter Philips, Professor of Economics at the University of Utah. Professor Philips has specialized in research on construction labor issues, with particular attention to California.

For example, in 2012 Professor Philips had his paper The Effect of Prevailing Wage Regulations on Contractor Bid Participation and Behavior: A Comparison of Palo Alto, California with Four Nearby Prevailing Wage Municipalities published in Industrial Relations: A Journal of Economy and Society. This journal is published by the Institute for Research on Labor and Employment at the University of California, an affiliate of the University of California Miguel Contreras Labor Program. It is hosted on the web site of the union-backed California Construction Academy, a project of the UCLA Labor Center established within the Institute for Research on Labor and Employment, which (as stated earlier) is an affiliate of the University of California Miguel Contreras Labor Program. If this tangle of programs at the University of California confuses you, that’s probably the intent.

This paper is part of an ongoing lobbying campaign of the Santa Clara-San Benito Building and Construction Trades Council and a union-affiliated organization called www.SmartCitiesPrevail.org to convince the Palo Alto City Council to repeal its own policy concerning government-mandated construction wage rates (so-called prevailing wages) on purely municipal construction projects. This is a right granted under Article XI of the California Constitution to Palo Alto and 120 other California cities that operate under their own charters. For more information on this home-rule right, see Are Charter Cities Taking Advantage of State-Mandated Construction Wage Rate (“Prevailing Wage”) Exemptions?

As shown in his curriculum vitae, Professor Philips was the keynote speaker at the California International Brotherhood of Electrical Workers (IBEW) conference in 2012. He has spoken repeatedly at conferences about Project Labor Agreements, including the State Building and Construction Trades Council of California annual conference in 2008.

While this background doesn’t necessarily mean that Professor Philips has inaccuracies in his research and reports, one should be aware that he holds certain presuppositions and biases about economics and labor relations that may be reflected in his work.

The Sponsor of the New CEQA Study

Page 2 of The Economic and Environmental Impact of the California Environmental  Quality Act indicates that “This study was sponsored by a grant from the California Construction Industry Labor Management Cooperation Trust.” This mysterious group was described last year in www.UnionWatch.org (see Mysterious Union Slush Fund Spends $100,000 Against Costa Mesa Charter).

This is an arcane type of union-affiliated trust authorized by the obscure Labor-Management Cooperation Act of 1978, a law signed by President Jimmy Carter and implemented by the Federal Mediation and Conciliation Service. Inspired by the decline of unionized manufacturing in the Northeast, this federal law was meant to help industrial management and union officials build better personal relationships and cooperate against the threat of outside competition. There are no federal or state regulations specifically addressed toward these trusts, and these trusts do not have any reporting requirements to the U.S. Department of Labor’s Office of Labor-Management Standards. This is an ambiguous and forgotten law that’s ripe for abuse.

Here are some of the recent top recipients of funding from the California Construction Industry Labor Management Cooperation Trust:

  1. $1,095,000 – Taxpayers to Preserve Community Jobs, No on Measure A, sponsored by labor and management organizations (June 5, 2012 election in City of San Diego)
  2. $770,000 – UCLA Labor Center (aka UCLA Center for Labor Research and Education), part of the University of California Miguel Contreras Labor Program
  3. $250,000 – No 98/Yes 99 – A Committee of City and County Associations, Taxpayers and Environmental Groups, League of California Cities, Californians for Neighborhood Protection, Coalition of Conservationists
  4. $164,550 – “Other” (?)
  5. $100,000 – Committee for Costa Mesa’s Future – No on V, sponsored by labor and management organizations (November 6, 2012 election in City of Costa Mesa)
  6. $100,000 – Apollo Alliance
  7. $100,000 – Paxton-Patterson Construction Lab/Shop in San Joaquin County
  8. $50,000 – Taxpayers to Preserve Community Jobs, No On Measure G, sponsored by labor and management organizations (June 8, 2010 election in City of Chula Vista)

But what’s more interesting is the source of at least some of this money, if not all of it.

It’s Not Union Members that Give the Money to the California Construction Industry Labor-Management Cooperative Trust: It’s Utility Ratepayers and Contractors Working for Extorted Power Plant Owners

Since the 1990s, whenever an energy company or public utility submits an application to the California Energy Commission seeking approval of a new power plant, an organization called California Unions for Reliable Energy (CURE) often “intervenes” in the licensing process. Represented by the South San Francisco law firm Adams Broadwell Joseph & Cardozo, CURE submits massive data requests and environmental objections to the California Energy Commission. The applicant by law is required to answer CURE’s submissions, at significant cost and delay. The chairman of California Unions for Reliable Energy (CURE) was Bob Balgenorth (see above).

If the power plant owner agrees to require its construction contractors to sign a Project Labor Agreement with the State Building and Construction Trades Council of California or its regional affiliates, CURE’s objections fade away and the power plant proceeds unhindered through the licensing process. If the company or utility does not surrender to CURE’s demand, then CURE’s interference and lawsuits continue.

This racket – sometimes called “greenmail” because it’s the use of the California Environmental Quality Act (CEQA) and federal environmental laws to pressure developers to sign Project Labor Agreements – is well-known to the energy industry in California and has been extensively reported in the news media over the past dozen years. (For example, see Labor Coalition’s Tactics on Renewable Energy Projects Are Criticized – Los Angeles Times – February 5, 2011 and A Move to Put the Union Label on Solar Power Plants – New York Times – June 18, 2009.) It is also documented in www.PhonyUnionTreeHuggers.com.

For cases in which the power plant applicant succumbs to CURE’s harassment, the Project Labor Agreement that the power plant owner signs usually contains a provision requiring the owner or its contractors to make a lump-sum payment or series of payments to the California Construction Industry Labor-Management Cooperative Trust.

For example, the Project Labor Agreement signed by the Northern California Power Agency (a conglomerate of publicly-owned utilities) for the construction of the Lodi Energy Center required the agency to shell out $90,000 to the California Construction Industry Labor-Management Cooperative Trust. That amount was dutifully mailed to Bob Balgenorth on August 17, 2010. (For more on this payment, see High Energy: Lodi Center Designed to be a Powerhouse for Chunk of State – Stockton Record – October 4, 2011; also, the union rebuttal on the California Building Trades Council web site – ABC Falsehoods Refuted in Letter to Stockton Record.)

And Section 13.1 of the Project Labor Agreement signed by the Southern California Public Power Authority (another conglomerate of publicly-owned utilities) for the construction of the City of Anaheim’s Canyon Power Plant required the agency to shell out $65,000 to the California Construction Industry Labor-Management Cooperative Trust.

The California Construction Industry Labor-Management Cooperative Trust reports these payments as “membership dues” to the Internal Revenue Service. Which brings up a question: are the local elected officials who serve as commissioners for the Northern California Power Agency and the Southern California Public Power Authority exercising their responsibilities as “members” to approve its expenditures?

It’s a tangled conspiracy. Especially intriguing is that one union official was the head of the State Building and Construction Trades Council of California, the California Construction Industry Labor-Management Cooperative Trust, and California Unions for Reliable Energy. For more information, see the investigative report of the Coalition for Fair Employment in Construction at this September 23, 2011 post at www.TheTruthaboutPLAs.comA Genuine California Union Conspiracy: Senate Bill 790 and the California Building Trades Council’s Ratepayer Funded Political Slush Fund

Confused about the Conspiracy? Here’s a Chart.

A public utility or private energy company applies to the California Energy Commission for approval to build a power plant.

California Unions for Reliable Energy (CURE) uses its “intervenor” status at the California Energy Commission to submit massive data requests and environmental complaints about the proposed power plant, as a result gumming up the licensing process and causing costly and lengthy delays for the applicant.

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Applicant for prospective power plant surrenders and agrees to sign a Project Labor Agreement with the State Building and Construction Trades Council of California or its regional affiliates. California Unions for Reliable Energy releases its grip of legal paperwork and the project moves forward unimpeded and acclaimed as environmentally sound.

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The Project Labor Agreement contains a required payment or payments to the California Construction Industry Labor-Management Cooperative TrustCalifornia Public Utilities Code Section 3260 – enacted by Senate Bill 790 in 2011 – allows public utilities to pass costs through to ratepayers.

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The California Construction Industry Labor-Management Cooperative Trust reports those payments to the IRS as “Membership Dues,” creating questions about the rights inherent for dues-paying members.

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The California Construction Industry Labor-Management Cooperative Trust makes contributions to political campaigns and studies, including The Economic and Environmental Impact of the California Environmental Quality Act.

Solutions

Is there any way this racket can be stopped? Yes. The U.S. Department of Labor’s Office of Labor Management Standards could promulgate regulations that establish restrictions and reporting guidelines for committees authorized by the Labor-Management Cooperation Act of 1978. Even better, Congress could pass legislation amending or repealing the law, and the President could sign it. Neither solution is viable for the next four years.

Kevin Dayton is the President & CEO of Labor Issues Solutions, LLC, and is the author of frequent postings about generally unreported California state and local policy issues at www.laborissuessolutions.com. Follow him on Twitter at @DaytonPubPolicy.