Labor’s Heavy Workload

State labor leaders say the political climate is right for a ballot initiative that would restore California’s law requiring daily overtime pay after eight hours of work. But fierce battles over possible ballot initiatives that would restrict political contributions by unions and business alike could force organized labor to put the daily-overtime issue on the back burner.

In April, the state’s Industrial Welfare Commission voted to revoke daily overtime rules in a variety of industries employing more than half of the state’s work force. Instead, these industries were switched to the federal standard, which calls for overtime pay only when a worker puts in more than 40 hours in a single week. Democrats in the Legislature responded with bills to overturn the ruling.

Those efforts, as expected, were rejected last month when Gov. Pete Wilson vetoed the principal bill, SB 680 by Sen. Hilda Solis (D-El Monte).

Lawmakers talked tough about taking the issue to the voters next year. They cited the approval last year of an initiative to raise the state minimum wage, which was approved by more than 60% of the state’s voters. And labor leaders during the summer commissioned surveys showing that 74% of California voters would approve an initiative to restore daily overtime pay after eight hours of work.

But privately, some union leaders are fearful they won’t have the financial resources to fight the battle because they will have to spend millions to thwart another initiative--one that seeks to cut their political influence.

Business interests and Republican lawmakers are mounting an initiative drive aimed at the June ballot that would prohibit unions from using members’ dues for political influence without written permission. Labor, a traditional Democratic ally, could see its political operations crippled by passage of the measure. And in retaliation, labor is pushing a counter-initiative that would end corporate political contributions. The counter-initiative campaign would further deplete labor’s coffers.

For now, labor officials are noncommittal about an overtime initiative. But protecting their ability to use union dues will be labor’s No. 1 priority, and estimates indicate labor could spend as much as $30 million to defeat the measure.

Packaging Lawsuits

Bottom Line: Software manufacturers have been hit with numerous lawsuits claiming that their containers were too large for the palm-size CD-ROMs and other diskettes housed inside, a violation of the state’s Fair Packaging and Labeling Act. The software makers joined forces with other industries facing similar suits, including toy companies, soap and cosmetic makers, and with local prosecutors to sponsor legislation that would halt the lawsuits while maintaining protections against fraudulent packaging.

Chances: The bill initially drew opposition from consumer advocates who worried “slack fill” laws might be gutted. But they ultimately backed off when the bill was modified. The bill passed both houses of the Legislature in September and was signed by the governor on Sunday.

Next Step: Takes effect Jan. 1.

Details: AB 1394 authors Assemblywomen Liz Figueroa (D-Fremont) and Martha Escutia (D-Bell) can be reached at (916) 445-7874 and (916) 445-8188, respectively.