Tag Archive for Proposition G (City of Chula Vista June 2010)

Union Operatives Infiltrate Office of San Diego Mayor Bob Filner to Push Costly and Burdensome Prevailing Wage Mandate for City Contracts

As of today, San Diego Mayor Bob Filner says he will remain in office despite women accusing him of sexual harassment. For the mayor, this is the most damaging of several recent scandals that include a mysterious trip to Paris, a generous complimentary refurbishing of the mayor’s office reception area, and alleged demands for payments in exchange for project approval.

While some of Mayor Filner’s staff have resigned in recent weeks, other people are coming into his administration to fill the power vacuum. And who better to become entrenched in this scandal-ridden administration than union officials?

Jennifer Badgley, Director of Special Projects and Labor Affairs

Apparently the mayor has brought on a former (or current) professional organizer and political director of San Diego’s International Brotherhood of Electrical Workers (IBEW) Local Union No. 569. Jennifer Badgley has recently become the “Director of Special Projects and Labor Affairs” for Mayor Filner, according to her Linked In profile.

Jennifer Badgley – San Diego Mayor’s Office and IBEW Local Union No. 569

According to a lobbying report filed by the IBEW Local 569, Badgley had lobbied Mayor Filner and staff on a few issues during the second quarter of 2013 (April 1 to June 30), including “good green local jobs and career pathways for local workers,” Community Choice Aggregation, and “responsible construction and development,” including on the San Diego Convention Center Expansion. She also “sat in with business” concerning a “potential San Diego energy project.”

She arrived just in time! A vote at the San Diego City Council is scheduled on July 30, 2013 to adopt a union-backed ordinance proposed by Mayor Filner to require construction companies with city contracts to pay wage rates (“prevailing wages”) set by the State of California. Since 1980, the City of San Diego has exercised its authority as a charter city to issue contracts for most purely municipal projects without state-mandated wage rates, as a result saving money for taxpayers. Filner’s proposal would submit the City of San Diego to state law regarding wage rates on public works projects.

Circumstances have now allowed the mayor’s Director of Special Projects and Labor Affairs to be the coauthor of a July 16, 2013 propaganda memo to the San Diego City Council arguing why city taxpayers should pay more for construction and why the city bureaucracy should be entangled in $250,000 worth of monitoring and enforcement of cumbersome unfunded state mandates per $100 million spent on construction. Some of the highlights of this memo:

  • It disparages the city’s Office of the Independent Budget Analyst, which issued a Review of Proposal to Require Compliance with the State’s Prevailing Wage Laws on All City Public Works Projects. The review estimated a cost increase of 5 to 10 percent on projects and noted “the likely trade off in the form of higher capital project costs and the resulting impact to infrastructure programs which are a high priority for the City.”
  • It claims that the state exempts volunteers from prevailing wage requirements, but doesn’t note that the exemption has an expiration date and that certain unions have objected to this exemption.
  • It cites and provides text of the 2010 Azusa Land Partners v. Department of Industrial Relations California appellate court decision that expanded prevailing wage to certain private housing developments, but it doesn’t mention the much more relevant 2012 California Supreme Court decision in State Building & Construction Trades Council of California v. City of Vista. Unions lost this case badly when the California Supreme Court upheld the right of charter cities to establish their own policies concerning government-mandated wage rates for purely municipal contracts.
  • It reports that “staff presented this proposal to construction industry stakeholders at their quarterly meeting on June 20, 2013,” apparently through a presentation by Murtaza Baxamusa, City of San Diego, Office of the Mayor, Special Advisor for Public Policy. (See more about Baxamusa below.) The association representatives at the meeting were reportedly delighted about the proposal; of course, the groups listed as attending the meeting represent and provide contract negotiation and administration services to companies that choose to be bound under the requirements of union collective bargaining agreements. They have a financial interest in government increasing project costs.

Such an rigid approach to public policy as reflected in Badgley’s memo is consistent with her history of advancing the union agenda. In the summer of 2009, at a time when 20% of IBEW Local 569 members were unemployed, Badgley expressed pride in what she identified as her greatest accomplishment: derailing the plan of Gaylord Entertainment to build a $1.2 billion hotel and convention center in Chula Vista because the company wouldn’t sign a Project Labor Agreement guaranteeing 100% of the construction trade work to unions. A July 6, 2009 profile on the now-defunct San Diego News Network web site reported her perspective as part of an interview to reveal her “journey” as she sought to “create broader social change.”

Badgley is or was married to Tefere Gebre, the executive director of the Orange County Labor Federation, AFL-CIO, who is expected to become the next Executive Vice President of the national AFL-CIO. In 2012 he proclaimed The Truth About the Right-Wing’s Latest Scheme to Punish Workers in Costa Mesa, and in 2009 he decried “The assault on Orange County by Colorado-based zealot Eric Christensen (sic) and Supervisor John Moorlach.” Gebre caused a stir in August 2007 when he sent Eric Christen of the Coalition for Fair Employment in Construction a bizarre email claiming that he saw Christen “on TV as a gay whitehouse corspondent.” (sic)

Murtaza Baxamusa, Special Advisor for Public Policy

Murtaza Baxamusa used to churn out policy reports for the union-backed Center on Policy Initiatives in San Diego. He was a founder of the phony Middle Class Taxpayers Association, which advocates for union-backed initiatives that increase costs to taxpayers. In 2011 he was hired as Director of Planning and Development for the San Diego County Building Trades Council Family Housing Corporation. The San Diego County Building Trades Family Housing Corporation contributed $85,000 to the November 2012 campaign to pass Proposition Z, a $2.8 billion bond measure with a Project Labor Agreement for the San Diego Unified School District. It’s unclear if Baxamusa is still employed at the union housing corporation.

Mayor Bob Filner’s Support for the Union Political Agenda

Bob Filner, the Mayor of the City of San Diego, has long supported the political agenda of construction trade unions. Eric Christen of the Coalition for Fair Employment in Construction wrote in an opinion piece in Voice of San Diego on July 20, 2007 that Filner had “an almost canine affection for doing the unions’ bidding.”

In 1999, then-Congressman Filner recognized Art Lujan of the San Diego-Imperial Counties Labor Council, AFL-CIO for his leadership in the San Diego labor movement. He noted that “Art successfully secured a Project Labor Agreement with the County Water Authority resulting in over $700 million in construction projects throughout the next eight years.” This was the first government-mandated Project Labor Agreement in San Diego County.

As a member of Congress in 2007, Filner blamed Chula Vista Mayor Cheryl Cox for the decision of Gaylord Entertainment to withdraw its proposal to build a $1.2 billion hotel and conference center on the Chula Vista Bayfront. Unions were threatening to block the project with environmental objections unless the company signed a Project Labor Agreement to build the project. Filner apparently felt that Cox should have pressured Gaylord to give the unions what they wanted.

A letter to the editor in the July 15, 2007 San Diego Union-Tribune explained Filner’s political attack:

So now the finger-pointing begins. And the show is being led by Rep. Bob Filner, who demonstrated political grandstanding at its finest by swooping in to defend the unions. How much has he been involved in this process before now? And without demonstrating any personal effort in advancing the project, how does he justify a self-appointed role as the arbiter of who did what wrong?

In 2010, Filner wrote a letter on Congressional stationery (in apparent violation of U.S. House of Representatives ethics rules) to the Chula Vista Chamber of Commerce telling them to oppose Proposition G. Prop G was a “fair and open competition” ballot measure to enact an ordinance prohibiting the City of Chula Vista from entering into contracts that required construction companies to sign a Project Labor Agreement as a condition of work. Filner claimed that it would be a “fool’s errand” to obtain federal funding for the City of Chula Vista if voters approved Proposition G. On June 6, 2010, 56% of Chula Vista voters supported Proposition G, and Filner subsequently played the fool and continued to send federal money there.

Of course Filner supported the Project Labor Agreement that the board of the San Diego Unified School District imposed on $4.9 billion in construction (not including state matching grants) approved by voters as Proposition S in 2008 and the subsequent Proposition Z in 2012. And citing arguments from the International Brotherhood of Electrical Workers (IBEW), he wrote letters to the U.S. Department of Energy in 2009 and 2010 opposing Sempra Energy’s construction of an electricity transmission line between Mexico and San Diego County.

And notably, he recognized Murtaza Baxamura in 2012 in the Congressional Record. Now Baxamura is on his staff, pushing for government-mandated construction wage rates.

Unions Move One Step Closer in Chula Vista to Control of Southwestern Community College District’s $389 Million Proposition R Construction with Project Labor Agreement

What will be California’s 45th educational district where contractors must sign a Project Labor Agreement with unions in order to work on construction? (Here’s the list of the 44 Project Labor Agreements used or in use for California K-12 school and community college district construction.) One candidate in the running for this shameful, costly, and discriminatory status is the Southwestern Community College District in Chula Vista.

Election results of Chula Vista’s Proposition G in June 2010 showed that the people of Chula Vista do not want their local governments to enter into contracts requiring companies to sign Project Labor Agreements. Nevertheless, the union-backed majority elected in November 2010 to the Southwestern Community College District Governing Board proceeded tonight (October 24, 2012) with its plan to impose a government-mandated union agreement before bidding begins for most work funded by $389 million in bond sales authorized by Proposition R.

On a 3-0 vote, the Southwestern College board approved up to $25,000 in Proposition R funds to hire the law firm of Atkinson, Adelson, Loya, Ruud & Romo (San Diego office) to negotiate the Project Labor Agreement with union attorneys and officials on behalf of the college district.

Atkinson Andelson beat out The Solis Group as the other finalist for the Project Labor Agreement negotiation contract, out of six applicant firms that also included Dannis Woliver Kelley, Law Offices of Julia SylvaPadilla & Associates, and Orbach, Huff and Suarez. Next, the board wants to consider awarding a contract for a Project Labor Agreement administrator.

Voters in the Southwestern Community College District approved Proposition R with 71% of the vote in November 2008. Of course, they had no idea that a future college board would give monopoly control of the work to the San Diego County Building and Construction Trades Council.

The board also received a “Proposition R – Monthly Executive Update” that consistently spelled “Quality Assurance” as “Qualilty Assurance.” (Yes, this place is truly a ripe candidate for a Project Labor Agreement.) As of September 1, 2012, the college has spent $5,888,504 from Measure R bond sales on construction, out of a total of $15,045,522 spent. Considering there is still $374 million of authorized Proposition R funds to spend, along with many millions of dollars in potential state matching grants, and this is a huge guaranteed taxpayer-funded bonanza for construction trade unions (although not as huge as what the unions are getting at the San Diego Unified School District with the Project Labor Agreement for Proposition S work).

Here are the five people who signed the ballot argument for Proposition R in 2008. (No one submitted an argument against Proposition R.) They told voters “Whatever you do, find R on your ballot and vote YES.” Where are they now that the Southwestern Community College board is cutting competition and increasing costs with a Project Labor Agreement? Ask them!

  • David Bejarano – Chief, San Diego Police Department (Retired)
  • Ditas Yamane – President, National City Chamber of Commerce (successor: Jacqueline L. Reynoso)
  • Lisa Cohen – CEO, Chula Vista Chamber of Commerce
  • Peter S. Mabrey – Physician Relations Manager, Scripps Mercy Hospital, Chula Vista (He used to be on the Citizens’ Proposition R Bond Oversight Committee for the college district.)
  • Adrian Del Rio – Former Student Trustee Chair, San Diego County Unified Disaster Council

Also at the October 24 meeting, board members received a timeline from staff indicating the Project Labor Agreement would be in effect for construction at the Southwestern Community College District by May 2013.

Finally, the Southwestern Community College District Governing Board wants to remind you: “Call It a Community Benefits Agreement, NOT a Project Labor Agreement!!!!” (And please ignore that politically undesirable but more accurate “Project Labor Agreement” terminology used in our new contract with Atkinson, Andelson.)

CEQA Greenmail Still Effective for Unions in San Diego: Just a Cost of Doing Business for Pragmatic Civic Leaders

The San Diego Daily Transcript business newspaper today (October 10, 2012) published an opinion piece from Eric Christen of the Coalition for Fair Employment in Construction entitled Unions Manipulate City Leaders with CEQA Threats.

In the commentary about union objections under the California Environmental Quality Act (CEQA) to the proposed expansion of the San Diego Convention Center, Christen contends that business, political, and community leaders in San Diego have essentially surrendered to the organizing agenda of union leaders. Unions and their lawyers have effectively exploited the California Environmental Quality Act (CEQA) to block proposed projects until the developer signs a Project Labor Agreement for construction and a neutrality agreement leading to a collective bargaining agreement for the permanent workforce. Eric writes the following:

In San Diego, the city’s civic leaders regard union CEQA abuse as a customary part of doing business. Instead of exposing it and shaming the perpetrators, they say nothing publicly and surrender to it privately. Then they pass the costs to the taxpayers and consumers.

Why aren’t San Diego business, community and political leaders — other than Councilman Carl DeMaio — holding these union officials accountable for their CEQA extortion on the proposed Convention Center expansion? Why aren’t they highlighting this incident as an outrageous example of CEQA abuse?

Apparently America’s Finest City is fine with this “cost of doing business in San Diego.” What an outrage.

I’m guessing that civic leaders and big developers closely observed how Nashville-based Gaylord Entertainment exposed and resisted the union environmental extortion in 2007 and 2008 against the proposed $1.2 billion Chula Vista Bayfront Hotel and Convention Center. The San Diego news media covered the story extensively, and ultimately it led to voters in the City of Chula Vista approving a ballot measure (Measure G) that prohibits the city from entering into contracts that require contractors to sign Project Labor Agreements.

Apparently, San Diego union leaders strategically determined that either Gaylord Entertainment would succumb to their demands to build and operate its facility exclusively with union workers, or Gaylord would never build it. After Gaylord Entertainment finally abandoned its plan to build the Chula Vista project and instead began construction of a facility in Mesa, Arizona, the Political Director/Organizer of the International Brotherhood of Electrical Workers Local Union No. 569 was proud, as she acknowledged to the now-defunct San Diego News Network in the July 6, 2009 profile Union Leader Badgley Shares Her Journey with IBEW 569:

Q: What accomplishment are you proud of?

A: Gaylord. We put a lot of resources into organizing the bay front in Chula Vista. It’s one of the last pieces of undeveloped land on the water, and we wanted something that was good for the environment and good for the workers. We worked with the environmental community, the trade show unions, the hotel and restaurant workers, and we tried to make sure that the project would be good for the environment and the workers. In some ways, I’ll take the blame. You have to respect the workers and the environment. We were asked, “Isn’t something better than nothing?” Our feeling is that if we build it right, we can build more.

(Nashville, Tenn.-based Gaylord Entertainment wanted to build a 1,500 room hotel and convention center on the Chula Vista bay front. In 2007, the company pulled out allegedly because it could not reach an agreement with labor unions. It then continued negotiating, and pulled out again a year later because it could not get financing.)

I believe we sent a strong message about the power and commitment of San Diego’s electrical workforce with the Gaylord campaign. We are committed to continue to make sure that whatever is built on the bayfront must create good, green, local careers.

Now we see San Diego developers and their community allies waving white flags, even as San Diego is close to having a free market-oriented mayor and a Republican city council majority, and even as voters in the County of San Diego and in the cities of San Diego, Chula Vista, Oceanside, and El Cajon have expressed their views on union monopolies by prohibiting government-mandated Project Labor Agreements through ballot measures.

For example, an article today in the October 10, 2012 San Diego Union-Tribune (Lane Field Hotels Approved by Port) reported that the Lane Field developers (Rob Lankford, architect John Portman & Associates and contractor Hensel Phelps) surrendered to union demands in order to get two proposed hotels approved and finally under construction:

Developers also avoided opposition from labor groups by agreeing to require union construction labor and welcome unionized workers at the finished hotels…But Trammer said underground parking could add nearly $18 million to the $115 million construction cost, roughly the same it will cost to use union labor.

So this is another Project Labor Agreement won by the San Diego County Building and Construction Trades Council (costing the developers an extra $18 million), and another neutrality agreement won by UNITE-HERE Local Union No. 30 to be imposed on a hotel operator who hasn’t even been identified yet. Again outraged by another surrender to extortion, Eric Christen posted a comment in response to the article:

Once again we see that threats of environmental lawsuits filed by labor unions would have been used had not the owner of this project not agreed to use union labor. And this is not laid out by the writer more explicitly why? This same writer just covered the Port Commission meeting two weeks ago where the unions dropped 150 pages of comments via their lawyers on the Convention Center Expansion yet these two striking similar projects but totally different union responses are not connected here.

This of course follows a decade of unions pulling this greenmail starting with Petco Park to this current project, and of course chasing Gaylord out of the state was their crowning achievement.

This extortion that unions use on projects that do not agree to use union labor is astounding. The silence form (sic) developers and the press on this is equally astounding.

As outlined in the www.PhonyUnionTreeHuggers.com article Lane Field in San Diego: UNITE-HERE Local 30 Doesn’t Like a Proposed Hotel, UNITE-HERE Local Union No. 30 had hired the law firm of Adams Broadwell Joseph & Cardozo to identify and submit substantial environmental objections to the project under CEQA.

And here is a THIRD example of union greenmail working its magic. A September 28, 2012 article in Voice of San Diego (U-T CEO Denies Threatening Port; New Email Emerges) revealed that developers who want to convert the Tenth Avenue Marine Terminal into a new sports/entertainment complex are seeking input and advice from Tom Lemmon, the head of the San Diego County Building and Construction Trades Council. The email was released by Lorena Gonzalez, the head of the San Diego and Imperial Counties Labor Council.

These three examples from just the last three weeks show that labor unions have been able to use CEQA to control anything having to do with downtown project development in the City of San Diego, particularly within the Port of San Diego‘s jurisdiction. Giving into union CEQA extortion is indeed a “cost of doing business” in San Diego (and throughout California).

Is this surprising, knowing the nature of humanity? After all, paying people off to avoid unwanted artificially-placed obstacles has probably been a standard way of doing business in most places in most times throughout human history. This country is not particularly clean: the United States is only ranked 24th in 2011 on the Transparency International annual Corruption Perceptions Index, with corruption defined as “the abuse of entrusted power for private gain.”

California’s urban local governments near the coast are generally fiscally irresponsible, mismanaged, unaccountable, and governed by pragmatists (at best) or compulsive criminals (at worst). These are ripe conditions for unions, corporate entities, and other self-interested organizations to infect and pervert government and commerce. The republican (lower case “r”) structure of checks and balances in American government works haphazardly in these cities; in particular, citizens fail to fulfill their necessary duty of educated and informed democratic participation in the process of choosing representatives and setting policies.

Nevertheless, Eric Christen is committed to fighting this urban corruption as reflected in union CEQA greenmail, according to an email he sent on October 10, 2012:

What is frustrating for myself as someone who deals with this locally and statewide every day is that I get what unions are doing and why they are doing it. What I do not get is how on earth they can keep getting away with doing it without being held accountable by an inquisitive press that asks simple questions after seeing the obvious staring them in the face.

I can fight unions and their shameless abuse of the California environmental law. I can continue to educate and inform the public about this and get them to ban PLAs when we put it on the ballot. I can continue to educate the media about this abuse. But what I cannot do is write the stories or pose the questions that help educate taxpayers, voters and citizens about exactly what is going on.

Sorry Eric, looks like few people want to join you in exposing this racket. You’re putting abstract principles ahead of tangible financial self-gain. That’s not a popular proposition.

But here is some consolation: this appeasement to union extortion recalls a well-known quotation attributed to Vladimir Lenin (but probably spurious): “the capitalists will sell us the rope from which we’ll hang them.”

Some of the capitalists to be hung will die rich. A few courageous ones to be hung will die right.

Mystical Ratios and Other Strange Excuses: San Diego’s Top Union Boss Lorena Gonzalez Explains Why San Diego Voters Approved Propositions A and B

A few people were incredulous last week when they heard the election night claims of Lorena Gonzalez – the Secretary-Treasurer/CEO of the San Diego & Imperial Counties Central Labor Council – that “corporate interests” and “huge corporations” outspent unions in a ratio of 7 to 1 in the campaign over the Fair and Open Competition ballot measure (Proposition A) in the City of San Diego. (Proposition A won with 58% of the vote on June 5, 2012.)

One person said to me, “I read your blog showing how unions spent $1.2 million against Proposition A. What is she talking about? Did the Yes on A campaign really raise more than $7 million?”

No. As shown here in the campaign finance reports of the City of San Diego Ethics Commission, unions and union-managed organizations spent more against Proposition A ($1,325,231.20) than “corporate interests” spent in support of Proposition A ($934,037.81), in a ratio of almost 3 to 2. Supporters of Prop A did not even raise $1 million for a city-wide campaign in a city with 1.3 million people. Gonzalez’s 7 to 1 ratio for spending on Proposition A could only be met with $8.2 million in additional imaginary money to the Yes on A campaign or with some sort of incredible distortion of data on campaign finance reports.

Knowing her three degrees earned from highly prestigious colleges indicate a truly superior intelligence, I concluded that Gonzalez must have used some sort of exotic algorithm to calculate the 7 to 1 ratio. I tried to figure it out, but failed. I did determine that even if she actually meant campaign spending for Proposition A combined with Proposition B (city employee pension reform), the claim is false. Add both together, and the so-called “corporate interests” outspent unions in a little more than a 3:2 ratio.

Why would someone with such prominence in a local community let out such a brazen lie? Opinions are often in the eyes of the beholder, but she presents that claim as a fact, which people can check for truthfulness and accuracy. Even more perplexing, she said it repeatedly.

A quick perusal of Gonzalez’s recent Twitter posts reveals her frequent citation of the 7 to 1 business to union campaign expenditure ratio. For example, on May 31 she responded to a taunt about her lost race for San Diego City Council with this line: “When I was outspent 7-1, everybody predicted Faulconer and I came within hundreds? Yep, I remember that!” And on May 19, she criticized the content of a KUSI Channel 10 news story with the comment “Doesn’t fit their narrative if they say business outspends labor 7 to 1.” (She was citing this specific ratio even before the campaigns for and against Proposition A submitted their later expenditure reports to the city.)

Is it possible that Gonzalez has stumbled on some sort of mystic power in the 7:1 ratio that will lead “working people” to start voting in support of the union tax-and-spend political agenda?

To examine Gonzalez’s full range of excuses after San Diego voters approved Proposition A on June 5, I looked at the election night news coverage in San Diego. Here are her standard talking points:

  1. These are “very complicated legal issues” and the voters don’t understand what they’re supporting. (Translation: voters aren’t educated enough to know what’s good for them.)
  2. Voters were distracted with so many races on the ballot. (Translation: the unruliness of democracy confuses people into voting against their interests.)
  3. We were outspent badly by huge corporations. (Translation: democracy is unfair because corporations are able to spend money in political campaigns.)
  4. We didn’t really try to win. (Translation: our political system is so fundamentally controlled by corporate interests that participation is useless, and I lied earlier to the union volunteers who helped with the campaign and lied even earlier to the union workers whose money was used – without their consent – for campaign advertising and contracts for political consultants.)
  5. We were victims of right-wing media bias. (Translation: media in a democracy should be required to present the valid position of working people. All coverage should be like Democracy Now! and Pacifica Radio.)
  6. The enacted policies are meaningless. (Translation: I lied earlier to the union volunteers who helped with the campaign and lied even earlier to the union workers whose money was used – without their consent – for campaign advertising and contracts for political consultants.)

For example, below is an election night video interview on local TV news for Channel 7 KNSD (NBC) in which Gonzalez rolls out all of her standard talking points. She claims that “we didn’t invest in those propositions in the same way as our opponents” and that “huge corporations” outspent the unions 7 to 1. She repeats the 7 to 1 lie a second time for those who didn’t hear it the first time.


Gonzalez also blames the mainstream media, even as she tries to use it. “We live in a city where we have one newspaper” with an agenda to defeat unions, working people, and Democrats. She also says San Diego has local TV stations that are anti-worker. (She has to backtrack on that statement a little in her own self-interest when she realizes she is being interviewed for local TV news, although she must be fuming after the reporter starts the interview by introducing her as “the county’s labor boss.”)

I’ll predict “corporate media bias” will be a major theme of unions in San Diego; in fact, the New York Times is helping by now being worried about it: see “Newspaper as Business Pulpit” – June 10, 2012. I would suggest that the unions establish their own competing daily newspaper targeted at “working people” in San Diego, but instead they’ll probably use the government to force ownership or content changes at the Union-Tribune. 

Here are some other Lorena Gonzalez quotes from the web and print media following the June 5 election. Remember, according to Gonzalez, all of these media entities hate working people:

Early results show voters support the idea of the City of San Diego being prohibited from using union-friendly Project Labor Agreements (PLAs)… “With so much noise going on in this election, I’m not surprised,” said Lorena Gonzalez, CEO of San Diego-Imperial Counties Labor Council. When asked her opinion on the returns for both Prop A and Prop B, Gonzalez said it’s tough for the workers’ voice to be heard. She said San Diegans are too smart to support Prop A but said the labor stance was outspent 7 to 1 by corporate interests. “When we need to, we’ll exercise our legal options,” Gonzalez said.

Source: Prop. A Passage Not Surprising to Labor – Channel 7 KNSD (ABC). (By the way, Lorena Gonzalez is one of the most relentless sources of political noise in San Diego, so maybe she’s subconsciously blaming herself.)

Lorena Gonzalez, the head of the San Diego and Imperial Counties Labor Council, told City News Service that she expects Proposition B to be overturned by the courts, and for San Diegans to repeal Proposition A in the next couple of years, once its costs become clear. “There’s a third branch of government for a reason,” Gonzalez said, referring to the court system.

Source: San Diego Voters Approve Propositions A, B – Channel 10 KGTV (ABC) – June 6, 2012; Absentee Voters Favor San Diego Initiatives Channel 5 KSWB (FOX); and Election 2012: San Diegans Favor Propositions – Channel 8 KFMB News (CBS).

Here, she decides to shift the focus from the proposition victories and instead start the general election campaign by trying to diminish the first-place showing of Councilman Carl DeMaio in the hotly-contested primary race for San Diego mayor, which had four legitimate contenders (three Republicans and a Democrat):

However, labor leader Lorena Gonzalez said the outcome of Proposition B was not unexpected considering how heavily opponents were outspent…Gonzalez, head of the San Diego-Imperial Counties Labor Council, an umbrella group that represents 133 unions, said she doubts voters realized that Proposition A could keep millions of dollars of state funds from the city. Gonzalez said the strongest message she was taking away from San Diego voters was the number who voted against mayoral front-runner Carl DeMaio. “Sixty eight percent basically told Carl DeMaio they are not in for his politics,” she said. “I think that’s great. Clearly the only person who really billed himself as anti-worker was Carl DeMaio and 68 percent of the people said no to Carl DeMaio.”

Source: Labor, GOP Draw Different Conclusions from Vote: Proposition A, B Victories Called “Taxpayer Revolution” – San Diego Union-Tribune – June 6, 2012

Here, she strangely switches focus to the California Republican Party, perhaps indicating a subconscious desire to flee San Diego and return to the comforting security of the California State Capitol, where most people are smart enough to know that free enterprise is nonsense.

Lorena Gonzalez, head of the San Diego-Imperial Counties Labor Council, countered by saying Republicans have sided with corporate interests over working people, leading to the possibility of the statewide GOP going the “way of the dodo bird.” She said DeMaio and downtown lobbyists that helped fund his mayoral campaign and Propositions A and B have used pensions and project-labor agreements as straw men they’d prefer to fight against because they make for good sound bites, no matter how inaccurate. “Measures like these don’t solve problems, they just create more,” she said…“Just as these propositions will not solve the financial problems of our city government, they do nothing to put more money back in the pockets of hardworking San Diegans or put the unemployed back to work,” she said. “We will continue to put our efforts to creating more jobs, better jobs and better lives for all San Diegans — union and nonunion — because that is what matters to us, not these cheap political games.”

Source: GOP Basks in the Election Afterglow – San Diego Union-Tribune – June 6, 2012

Note: it does not look like Gonzalez even bothered to comment about the passage of Proposition D – a charter for the city of El Cajon that includes a Fair and Open Competition provision and a provision allowing the city to establish its own government-mandated construction wage rates (prevailing wages) for purely municipal projects.

Postscript: Lorena Gonzalez was uncharacteristically silent on record after voters approved Proposition G in Chula Vista, Proposition K in Oceanside, and Proposition A in San Diego County in 2010. I did find ONE comment from Gonzalez explaining voter approval of Proposition G and Proposition K: in this case, she blamed the people again, this time by complaining about people not voting.

FUDGE: And you’re disappointed, I assume, with Proposition G in Chula Vista and Proposition K in Oceanside on the project labor agreements.

GONZALEZ: Well, especially Chula Vista, you know, we spent a lot of time down there but the turnout just – I’ve never quite seen anything like it. I think when the final numbers come in, we’ll see about, maybe 25% and in a city that is predominantly Latino and predominantly Democrat, it was – the electorate yesterday was not. It was mainly an absentee turnout and mainly a Republican turnout and, again, when people show up at the polls, when we have high turnout like we do in presidential years or in gubernatorial years when there’s a runoff, then workers win. But when people don’t come out, we can’t win.

Source: Who Won and Who Lost In Tuesday’s Primary Election – KPBS – Wednesday, June 9, 2010

Voters of San Diego (Eighth Most Populous City in U.S.) Approve Fair and Open Competition Ordinance with 58 Percent of the Vote to Prohibit Government-Mandated Project Labor Agreements

The people of California continue to demonstrate their firm support for fair and open bid competition and the best quality work at the best price for taxpayer-funded construction. On June 5, 2012, 58% of voters in the City of San Diego approved Proposition A, a Fair and Open Competition ordinance prohibiting the city from requiring contractors to enter into Project Labor Agreements (PLAs) with unions. San Diego is the eighth most populous city in the country.

Also, in the City of El Cajon (in San Diego County), 57% of voters approved Proposition D, a charter stating in Section 400 (Purchasing and Contracts) that “The City will promote fair and open competition for all City construction projects so that all contractors and workers, whether union or non-union, are treated equally in the bidding and awarding of City construction contracts.” See this June 5, 2012 article in the San Diego Union-Tribune: Proposition D Passes in El Cajon.

A Quest for Fair and Open Competition Policies in San Diego County’s Ten Most Populous Cities



Population (2010)



San Diego


58% of voters approved a Fair and Open Competition ordinance as Proposition A on June 5, 2012.


Chula Vista


56% of voters approved a Fair and Open Competition ordinance as Proposition G on June 8, 2010.




54% of voters approved a charter with a Fair and Open Competition provision as Proposition K on June 8, 2010.




Voters will approve a charter with a Fair and Open Competition provision on the November 6, 2012 ballot.




No action to date.


El Cajon


57% of voters approved a charter with a Fair and Open Competition provision as Proposition D on June 5, 2012.




No action to date.


San Marcos






National City



San Diego County


76% of voters approved a Fair and Open Competition charter amendment as Proposition A on November 2, 2010.

Where the California Construction Industry Labor-Management Cooperative Trust Spends Its Money: Now We See How Unions Spread It

As I mentioned in an earlier post, the California Construction Industry Labor-Management Cooperative Trust is an arcane entity 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. 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.

Since its founding in 2006, the California Construction Industry Labor-Management Cooperative Trust has collected $5,110,095 in receipts, consisting of $2.6 million in seed money from another trust, about $1.7 million in “membership dues” (paid by power plant owners and contractors as a condition of Project Labor Agreements extracted by California Unions for Reliable Energy), and $450,000 in net investment returns. A chart of the organization’s finances is at the end of this post.

Where does the California Construction Industry Labor-Management Cooperative Trust send its millions of dollars? I attempted to find out using the organization’s IRS Form 990s (2011, 2010, 2009, and 2008), state and local campaign finance reports, and other sources. See the list below.

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)

As of May 25, 2012, the California Construction Industry Labor Management Cooperative Trust has contributed $1,095,000 to the campaign committee opposing Proposition A, a “Fair and Open Competition” measure on the June 5, 2012 ballot in the City of San Diego that would prohibit the city from requiring construction companies to sign a Project Labor Agreement (PLA) with unions as a condition of working on a taxpayer-funded project. The California Construction Industry Labor Management Cooperative Trust has provided 92% of all receipts for this campaign committee.

2.  $770,000 – UCLA Labor Center (aka UCLA Center for Labor Research and Education), part of the University of California Miguel Contreras Labor Program

The California Construction Industry Labor-Management Cooperative Trust has contributed a cumulative total of $770,000 to the UCLA Labor Center, primarily or exclusively for the establishment and operation of the UCLA Labor Center’s California Construction Academy, a propaganda operation that issues biased studies and bogus reports about construction labor issues using the UCLA name and affiliation.

The UCLA Office of Research Administration’s Office of Contract and Grant Administration received $250,000 in 2010-11, $250,000 in 2009-10, and $150,000 in 2008-09 from the California Construction Industry Labor-Management Cooperative Trust. In 2007-08, the California Construction Industry Labor-Management Cooperative Trust contributed $120,000 for a “Workforce Development Leadership Academy Grant” sent to PO Box 951478 in Los Angeles, zip code 90095. (This is the address for the UCLA Labor Center.)

There seems to be confusion at the UCLA Labor Center about how much the California Construction Industry Labor-Management Cooperative Trust has contributed to the UCLA Labor Center’s California Construction Academy. The 2010-11 annual report for the UCLA Center for Labor Research and Education recognizes a grant of $450,000 from the California Construction Industry Labor-Management Cooperative Trust, but a footnote added on April 4, 2012 indicates that the $450,000 is a cumulative amount for several years, with $180,000 as the actual amount for 2010-11. A press release from the UCLA Labor Center’s California Construction Academy tries to rebut a March 27, 2012 article from www.PublicCEO.com entitled Project Labor Agreement Debate is as Complex as It is Conflicted by stating that “according to the 2009 990 IRS Form, the UCLA Labor Center received $450,000. In fact, when clicking on the document, the amount the Labor Center received was $180,000.” (See this link: Correction on PublicCEO.com Post: CCA Advances Broad Construction Industry InterestsCalifornia Construction Academy: A Project of the UCLA Labor Center – March 27, 2012.) PublicCEO.com then countered with its own correction that stated “Editors note: Originally, the UCLA Annual Report showed a donation of $450,000, as was reported in this article. That was an incorrect total. The report, and this article, now accurately reflect a donation of $250,000. The $450,000 UCLA reported was a total of several years.”

This outfit of five professional staff promotes the political agenda of the State Building and Construction Trades Council of California, including government-mandated Project Labor Agreements and union control of so-called “green jobs” in the construction industry. The founding Academy Director and Senior Advisor is David Sickler, former Southern California Regional Director of the State Building and Construction Trades Council. The advisory board for the UCLA Center for Labor Research and Education consists extensively of officials representing building trades unions. 

The UCLA Labor Center California Construction Academy was the organization used by the State Building and Construction Trades Council of California to awkwardly and ineffectively challenge a study published in July 2011 by the National University System Institute for Policy Research in San Diego indicating that schools built in California with Project Labor Agreements cost 13%-15% more than schools built under fair and open competition. As part of this response, the California Construction Industry Labor-Management Cooperative Trust mailed a letter to local elected officials throughout the state attacking the study, and State Superintendent of Public Instruction Tom Torlakson mailed a letter to county superintendents and other educational officials attacking the study and providing the report from the UCLA Labor Center California Construction Academy.

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

On April 7, 2008, the California Construction Industry Labor-Management Cooperative Trust contributed $250,000 to this No on 98/Yes on 99 campaign committee to oppose a statewide ballot proposition on the June 2008 ballot that would have restricted the ability of governments to gain possession of private property through eminent domain. The proposition failed – it only received 39% of the vote.

4.  $164,550 – “Other” (?)

The California Construction Industry Labor-Management Cooperative Trust reports that it spent $164,550 on “Other” fees for services (non-employees) in 2010-11. No additional information is given, and these expenditures are not classified as administrative, accounting, or legal services. I’m unable to determine where this money went, but I’m guessing it was used for something political that promoted unions and socked it to California taxpayers. Any ideas?

Contrary to some rumors, “Other” does not appear to be the union front group Citizens Against Identity Theft and Ballot Fraud, sponsored by labor organizations, which funded a radio advertising scam in the summer of 2011 meant to discourage Sacramento and San Diego voters from signing petitions to place Fair and Open Competition measures and a Paycheck Protection initiative on the 2012 ballots. See my post thoroughly outlining this scheme here.

5.  $100,000 – Apollo Alliance

The Apollo Alliance received $75,000 in 2010-11 and $25,000 in 2009-10 from the California Construction Industry Labor-Management Cooperative Trust. This is currently a project of the Blue-Green Alliance, a coalition of environmental organizations and unions on a quest to stop global warming through government programs and a union workforce. President Obama’s former “Green Jobs Czar” Van Jones was an influential founder and leader of this organization.

6.  $100,000 – Paxton-Patterson Construction Lab/Shop in San Joaquin County

In 2007-08, the California Construction Industry Labor-Management Cooperative Trust contributed $100,000 to the San Joaquin Office of Education’s Career and Technical Education Program to establish a Paxton-Patterson Construction Lab/Shop.

The story behind this contribution is a mystery. Public records provided by the San Joaquin Office of Education in October 2011 did not include any documents dated earlier than September 17, 2007, when the former County Superintendent sent a letter to Bob Balgenorth (chairman of the the California Construction Industry Labor-Management Cooperative Trust, president of the State Building and Construction Trades Council of California, and chairman of California Unions for Reliable Energy – CURE) thanking him for the contribution. Surely there was something beforehand that led to a private contribution of $100,000 arriving at the office! Those kinds of checks usually don’t arrive in the mail without extensive solicitation.

In addition, the records did not indicate whether or not the Paxton-Patterson Construction Lab/Shop was ever built. Where are the two plaques celebrating Bob Balgenorth (as referenced in the letter)? When was the photo op? Where are the photos? How was the money spent?

In May 2007, the San Joaquin County Board of Supervisors voted 3-2 to require contractors to sign a Project Labor Agreement with unions as a condition of working on the county’s New Administration Building. (See my post here providing some background on that vote.) Is there a connection between the two incidents? 

7.  $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)

The California Construction Industry Labor Management Cooperative Trust contributed $50,000 to the campaign committee opposing Proposition G, a “Fair and Open Competition” measure on the June 8, 2010 ballot in the City of Chula Vista that would prohibit the city from requiring construction companies to sign a Project Labor Agreement (PLA) with unions as a condition of working on a taxpayer-funded project. The funding was in vain, as 56.37% of Chula Vista voters approved the proposed ordinance.

The ordinance is now Chula Vista Municipal Code Section 02-59. At the behest of the State Building and Construction Trades Council of California, Governor Brown and the Democrat Party leadership in the California State Legislature tried to financially punish the citizens of Chula Vista for enacting this ballot measure with Senate Bill 922 (signed into law in 2011) and Senate Bill 829 (signed into law in 2012). See my blog posts about these laws here and here.

8.  $50,000 – Fresno Area Construction Team (F.A.C.T.)

A group called the Fresno Area Construction Team received $50,000 in 2010-11 from the California Construction Industry Labor-Management Cooperation Trust to promote union contractors, union construction, and union apprenticeship programs in the Central Valley. It appears to have the involvement of the Sheet Metal Workers Union Local No. 162, Plumbers Union Local No. 246, and International Brotherhood of Electrical Workers (IBEW) Local No. 100. This group advertises, spent $51,862 on “consulting,” and even spent $992 on “travel and entertainment for public officials,” according to this form.

Financials: California Construction Industry Labor-Management Cooperative Trust

Year Gross Receipts Contributions & Grants/Program Service Revenue/Other Investment Income Total Revenue
   $ 2,595,954 “Contribution from Prior Trust”
2007-08  $    593,950  $    283,670  $      97,150  $    380,820
2008-09  $    463,792  $    506,403  $    (42,611)  $    463,792
2009-10  $    522,782  $    274,437  $    200,583  $    475,020
2010-11  $    933,617  $    678,209  $    195,780  $    873,989
Total  $ 5,110,095  $ 1,742,719  $    450,902  $ 2,193,621


Year Grants & Similar Amounts Other Expenses Total Expenses
2007-08  $    220,000  $    290,859.  $    510,859
2008-09  $    150,000  $      21,143  $    171,143
2009-10  $    205,000  $      16,839  $    221,830
2010-11  $    375,000  $    234,319  $    609,319
Total  $    950,000  $    563,160  $ 1,513,151


Year Revenue Minus Expenses Total Assets
2007-08  $  (130,039)  $ 2,595,954
2008-09  $    292,649  $ 2,888,603
2009-10  $    253,181  $ 3,141,784
2010-11  $    264,670  $ 3,406,454