"Paycheck Protection" Bill Defeated in California Unfair Proposition Aimed at Unions

Many Corporations, Charities Also Opposed

At the July ARCC meeting in Washington, D.C., union representatives talked about the labor movement's victory in defeating Proposition 226 in California. Known as the "Paycheck Protection Act," Prop 226 would have forced national unions to contact each local union member individually and ask permission to use a portion of that member's dues for political activity.

The "Paycheck Protection Act" was aimed only at unions and did not require that corporations should be subject to similar restrictions - for example, that a corporation should be made to contact each of its stockholders to get personal permission for the company to use corporate funds for political activity. According to an ARCC union rep, "When we [unions] called employers in California and told them that some legislators were ready to expand Prop 226 to include other organizations - corporations, charities and foundations - which use individuals' money to undertake political activities, they helped us stop Prop 226." Charitable organizations and foundations joined in opposing Prop 226.

"By calling it the 'Paycheck Protection Act,' the bill's supporters made it sound like something people should support, so initial backing was high," said an ARCC union representative. "Once voters learned about the inequality of it and what it was actually designed to do - punish organized workers - they rejected it. Californians did a huge about-face to beat 226."

It was a true 'come from behind' win. Polls showed that 71 percent of voters favored the "Paycheck Protection Act" in February, less than four months before the ballot. But after a massive educational effort by California unions - which, according to the AFL-CIO, included 650,000 phone calls and 18,000 worksite visits made by union volunteers - voters changed their minds. Twenty-four thousand union members and their families participated in phone banks, precinct walks or workplace visits. On June 2, Prop 226 was defeated by a margin of 54% - 46%. While unions and companies may disagree on political issues, the long-recognized right of each group to make political statements on behalf of its constituency - without undue or unequal restrictions - should be preserved in the United States.