A handful of powerful statewide unions broke with the larger labor movement to oppose a proposed tax on California billionaires. Now, their own locals are rebelling in support of the measure.<\/p>\n
Proposition 40 divided labor groups from the start, a rift opponents seized upon as a sign that the measure\u2019s organizers could not line up support on the left. But Prop. 40 supporters argue the latest divisions tell a different story: union locals and rank-and-file members are at odds with their Sacramento leaders, who have joined establishment Democrats like Gov. Gavin Newsom and tech billionaires in opposing the measure.<\/p>\n
Teachers\u2019 unions in San Francisco and Los Angeles recently defied statewide leaders of the California Teachers Association to endorse the billionaire tax. The CTA, one of the most formidable unions in Sacramento, had bucked much of organized labor by siding with Newsom and others opposing the billionaire-tax measure.<\/p>\n
Adding to the teacher revolt in two of the state\u2019s largest cities, several local affiliates of the State Building & Construction Trades Council have also broken with their statewide leadership to back the tax.<\/p>\n
\u201cAs more and more union members found out about Prop. 40 … it galvanized support,\u201d said Lorena Gonzalez, head of the California Labor Federation, the state\u2019s largest umbrella group of unions, which has endorsed Prop. 40. \u201cThe labor movement should always be a ground-up movement \u2014 and that just shows in what\u2019s happened recently.\u201d<\/p>\n
The CTA and the Building Trades oppose Prop. 40 alongside unions representing firefighters and domestic workers. They argue the tax would drive billionaires like Google co-founder Sergey Brin out of state and, in turn, harm California\u2019s budget, a case that hasn\u2019t held sway with many in organized labor.<\/p>\n
But unions opposing Prop. 40 say a few defections are to be expected and don\u2019t signal widespread dissent.<\/p>\n
\u201cThe majority of our members are not revolting on this; the majority of our members are no on 40,\u201d said Chris Hannan, president of the California Building Trades. \u201cFor a few [local unions] to see it differently \u2014 those things happen.\u201d<\/p>\n
Beyond the local unions, Prop. 40 has drawn a late wave of support from the broader labor movement. In recent months, the statewide Labor Federation, California Federation of Teachers (a separate educator union that had been neutral), National Union of Healthcare Workers, and California Nurses Association have all endorsed the measure.<\/p>\n
Prop. 40 would impose a one-time, 5% tax on the assets of California billionaires, including the large share of their wealth held in stock and other investments. SEIU-United Healthcare Workers West, which proposed the measure, projects it would raise roughly $100 billion over five years, most of which would offset the Trump administration\u2019s cuts to healthcare programs, including the fiscal cliff facing Medi-Cal, the health insurance program for millions of low-income Californians.<\/p>\n
A recent study (opens in new tab)<\/a> by economists at Stanford University\u2019s Hoover Institution, a conservative think tank, estimated Prop. 40 would collect only about $30 billion, while costing California $39 billion in lost income tax revenue over time due to billionaire flight from the state.<\/p>\n Polling suggests voters are closely split over the measure, and support from rank-and-file union members could be crucial in the final week before Election Day on Nov. 3. A recent Citrin-POLITICO poll found (opens in new tab)<\/a> Prop. 40 has a slight lead among likely voters, with 46% in favor and 43% opposed.<\/p>\n SEIU-UHW and its leader, Dave Regan, a firebrand who has often clashed with other labor leaders, have drawn criticism from other unions for crafting the tax without input from the rest of the labor movement. Critics also object that only a small share of its revenue would go to schools.<\/p>\n Still, Prop. 40 has seen growing support from local unions that argue the tax, although imperfect, is better than inaction. The split from local unions representing teachers in San Francisco and L.A. is perhaps the most stinging rebuke. United Teachers Los Angeles is the second largest union of its kind in the country (behind New York City), and represents about 35,000 teachers and staff.<\/p>\n Alex Schmaus, political organizer for the United Educators of San Francisco, which represents about 6,500 teachers and staff, said his local considers the CTA\u2019s stance against the billionaire tax \u201can error.\u201d He said the local union\u2019s leadership endorsed Prop. 40 unanimously, without any opposition statements.<\/p>\n \u201cWe\u2019ve got to find a way to take on these billionaires,\u201d Schmaus said. \u201cI don\u2019t think you can have democracy and solidarity in a world run by billionaires.\u201d<\/p>\n