Business

COST: This Time, There is No Plan B

September 15, 2009 - 4:42pm

We posted twice today about cost trends in the employer-sponsored insurance, and it brought to mind some comments Dallas Salisbury, CEO of the Employee Benefit Research Institute, made at a recent Alliance for Health Reform briefing, called "The Next 100 Days: Some Final Hurdles to Health Reform " (He spoke from a vantage point a few days before President Obama's speech to Congress)

Plan A, simply stated, was to pass President Clinton's health reform plan after reshaping it more to business's liking. If that failed,  Plan B was to kill it. Plan B, as we all recall, prevailed.

This time around, Salisbury said, there is no Plan B.

Compromise or Bribery?

February 2, 2009 - 8:53am

Last fall's initiative campaigns in Colorado saw an extraordinary change in the ballot at the last minute. Labor unions agreed to withdraw from the ballot a package of initiatives that targeted businesses in exchange for a promise by business groups to contribute to a labor effort to defeat three business-backed initiatives. The four labor-backed measures technically remained on the ballot, but under Colorado law, without the support of their labor sponsors, the initiatives were a dead letter. The votes cast on those initiatives didn't count.

To some, it looked like business groups were bribing the labor unions to pull the measures off the ballot. So two Republican lawmakers introduced a bill that would make it a misdemeanor to withdraw a ballot initiative in exchange for money or any promise of value. The bill was defeated in committee last week on a party line vote, the Rocky Mountain News reports.

Colorado Peace: Labor Pulls Four Measures From The Ballot

October 3, 2008 - 10:43am

While I was asleep in Switzerland, peace broke out Thursday in Colorado's multi-measure labor vs. business war. As part of a deal negotiated just before the deadline for sponsors to pull their support for an initiative, business groups agreed to fund a campaign against three ballot initiatives targeting labor prerogatives, including Amendment 47, the initiative to make Colorado a right-to-work state. In return, labor agreed to drop four initiatives that it had qualified to challenge business prerogatives. More details here.

The four labor initiatives being withdrawn are Amendments 53 (making executive wrongdoing a state crime), 55 (requiring employers to show cause before firing a worker), 56 (requiring most employers to provide health insurance for workers), and 57 (permitting workers to sue employers in workers comp cases). The measures still appear on the ballots, which have been printed, but votes won't be counted.

Now business and labor will team up to defeat not only Amendment 47 but also Amendment 49, a so-called "paycheck protection" member limiting the political use of dues by public employee unions, and Amendment 54. This last is an interesting case, since it's not targeted solely at labor unions. It's an attempt to end "pay to play" politics by banning political donations from anyone -- including unions -- who has an exclusive contract with government agencies.

 

Colorado Compromise?

September 19, 2008 - 5:35pm

In Colorado, there's a multi-initiative war between business and labor interests. Each side is sponsoring multiple measures. But there are talks underway, with some participation by Gov. Bill Ritter, aimed at avoiding a full war in November. The Denver Business Journal has details. Labor has agreed to drop its initiatives -- which are aimed at business prerogatives -- if business leaders will help the unions defeat Measure 47, an initiative to make Colorado a "right-to-work," or open shop, state.

ADDED, 9/21: More details on the talks from the Rocky Mountain News, which even has some documents on the deal-making.

Greetings From Denver

September 5, 2008 - 10:28am

I'm back in Denver today and tomorrow, to do a few reporting errands. (Word to the wise: don't be like your blogger, a Socal boy who is constitutionally incapable of checking reports, and pack a jacket when you visit the Mile High City. It's darn cold here). I'm also touching base with a variety of initiative sponsors here. In a lighter-than-expected year for ballot measures nationwide (with measures failing to make the ballot or being pulled in Arizona, Nevada, Ohio, etc.), Colorado is this year's ballot champion. Nineteen -- that's right, 19 -- measures will be on the November state ballot.

But as I talk to folks on both sides of these campaigns, I feel like I'm entering a time machine -- a time machine that takes me back to 2005 California. There, we saw Gov. Schwarzenegger and his business backers qualify a number of initiatives to the ballot. Labor then countered with a fierce "no" campaign and a few counter-measures of its own. Virtually the same thing has happened in Colorado this year, the one key difference being that Gov. Bill Ritter counseled both sides against going to war. There hasn't been much public polling. Private polling that I'm seeing shows some initiatives doing better than others, but all with serious vulnerabilities. It's quite likely that history will repeat itself here and voters will shoot down both the business initiatives and the labor counter-measures. And no one will emerge a winner after a big, multi-front, expensive campaign -- well, no one except the political consultants.

What Does Walmart Know?

June 12, 2008 - 9:54pm

Last month I visited Walmart's annual sustainable packaging conference in Bentonville, Arkansas. I learned that the first such meeting took place in a conference room in Walmart's headquarters just three years ago and 50 people attended. The 2008 version needed a massive convention center and was bursting at the seams with suppliers, shippers, and buyers of eco-friendly packaging. You can see where this trend is going.

So what does Walmart know that the rest of the world may still be trying to understand? CEO Lee Scott reportedly told his employees and suppliers alike to reduce wasteful, non-recyclable packaging, because Walmart was paying for waste twice - - once when the package came in the door, and once when they paid someone to haul it away from the back of the stores. Walmart saw the opportunity to benefit the environment and their bottom line at the same time.

But how does the world's largest retailer cut the waste from so many products? They computerized a scorecard, evaluating packaging on a variety of sustainability metrics that flow all the way back down the supply chain. Vendors get a score for the packaging of each item and are then automatically directed to suppliers of products that are more sustainable any time the packaging comes up short.

Walmart took a simple problem - - but a massive one - - and created a clever, self-perpetuating solution. Bottom line? Less waste, more recyclable content (that Walmart now separates and recycles at a profit), better economics, better environment.

Department of Self Promotion: Save the Date

April 19, 2008 - 5:21pm

Here's the link to information on a Zocalo LA panel on local ballot measures and business that I'm moderating at the Autry Museum in Griffith Park at 7:30 p.m. on May 27.

Business-on-Business Warfare

March 10, 2008 - 10:27am

Now comes news that a second initiative on development in Bayview-Hunters Point has qualified for the city of San Francisco’s June ballot. Check out this story in the Chronicle.

Why should people outside San Francisco care? Because in California and around the country, local ballot measures have become a common instrument of business-on-business warfare. Lennar Corp, a national development company based in Florida, first qualified an initiative that would put in place its Hunters Point development plan, which would include a combination of retail, industrial and residential development along with a new 49ers Stadium. In response, a San Francisco supervisor -- with backing from other developers -- has qualified this second initiative, which would impose a mandate that half of the new homes in the Hunters Point area be sold or rented at below-market rates.

Such battles have come to dominate municipal ballots in California. Look at ballots this June. Wal-Mart takes on local business in Long Beach. A hardware store owner is battling Home Depot in Thousand Oaks. In Anaheim a fight between a developer and Disney produced two ballot measures, though those were recently removed after the developer, facing legal problems and an onslaught from the Mouse, surrendered.

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