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California labor takes a rare “L” in 2024

July 30, 2024

California labor unions are finally facing the consequences of their misguided actions. This year alone, several major policy pushes from unions across the state have backfired spectacularly. Now, employees are getting wise and kicking unions out.

The Service Employees International Union (SEIU) – one of the state’ most influential unions – recently fought to pass a controversial $20 minimum wage for fast-food workers. The policy went into effect in April, and already we’re seeing it backfire on employees and business owners. The state has lost thousands of fast food jobs, while year over year growth in the fast-food industry has now slowed to its lowest point since the Great Recession, barring COVID losses in 2020.

Several major chains – including Burger King and In-N-Out Burger – raised prices to offset the higher wages. Many employers had to cut employee hours, and some restaurants, like a San Francisco McDonald’s, say the wage hike is the final nail in their coffin.

As if a reputation for pushing job-killing labor policies isn’t bad enough, other unions in the state decided to weigh in on Gaza. Spoiler alert: it didn’t end well.

When protesters across college campuses came out against Israel – destroying school property and setting up encampments in the process – the United Auto Workers (UAW) was one of their biggest supporters. These protesters were disciplined for their actions. In response, thousands of UAW-represented academic workers at University of California campuses across the state went on strike. They demanded amnesty for students who were punished for inciting vandalism and violence.

The strike was shut down by a court order and the UAW’s demands went unmet. The legislature even rejected a bill that would have made some striking workers eligible for unemployment benefits due to concerns over anti-Israel rhetoric coming from protestors. One lawmaker questioned whether “we have a shared understanding of what a strike is,” noting that some protesters “were yelling ‘kill one more’ in reference to the Jews.”

If you’re keeping score, that’s strike two for Golden State labor unions.

The final strike came from the workers themselves, who are increasingly fed up with union antics. Last month, at a Fresenius Medical Care dialysis facility in Orange, CA, healthcare workers came together and kicked out one of the state’s most-powerful labor unions: SEIU-UHW.

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What was the tipping point in that election? Maybe it was the union leadership’s support for anti-Israel protests. Maybe it was the allegations of an abusive workplace, brought by the union’s own employees. Or maybe it was the union’s wasteful spending, such as the millions of dollars spent on three failed ballot measures in the past several years.

Whatever the reasoning, it seems workers are fed up with controversial labor groups who claim to speak for them but don’t share their views or values. It’s possible this latest union rejection could represent a trend for workers across California who are sick of suffering under bad union policies and subpar representation.

One thing is certain: 2024 is shaping up to be a year of reckoning for California’s labor unions and their indefensible agendas.

Tom Manzo is President of the California Business & Industrial Alliance.

Orange County Register

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California labor takes a rare “L” in 2024

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