SAY NO TO PROP. 32 STOP THE SPECIAL EXEMPTIONS ACT Coming to a ballot box near you this November

Prop. 32 -- November’s Anti-Union Ballot Measure Much different and much worse than previous anti-union measures Backers claim it’s campaign finance reform – they even call it the “Stop Special Interest Money Now Act” This measure is more deceptive and more damaging than anything we’ve ever faced in California. This threatens the very existence of the labor movement. It’s much different: This is NOT the typical “paycheck deception” campaigns we’ve faced in the past. Unlike past campaigns, our opponents are not talking about “protecting” union member paychecks or even, for the most part, union influence. They’re talking about getting “special interests” out of politics. That’s the terrain we’re fighting on this time. Not only is this not “paycheck deception,” we shouldn’t even use that phrase. It sends our members and the public the wrong message. It’s much worse: It would effectively eliminate every California union’s ability to have a role in politics from statewide ballot measures and candidate races to local elections on pensions and PLAs. This would cripple our unions’ ability to fight for our members and all working people. While it pretends to be about “stopping special interests” it really gives corporations a huge loophole to spend with NO limits in politics through their preferred way of funding political campaigns: secretive Super PACS. 2. A dirty trick: The goal is to trick voters into thinking it's campaign finance reform when it actually gives corporations unlimited spending power in politics. It claims to fix what’s wrong with Sacramento, but in reality it would do just the opposite - give corporations free rein to control government in CA. Our opponents are running a “campaign finance reform” campaign. Their message is different, the economic environment is different and we have to run a different campaign to defeat it. We have to show voters, including our members, that this isn’t real reform and it will actually make things much worse, especially for workers.

Prop. 32 -- A Deceptive Power Grab Takes away union members’ voice in politics Riddled with EXEMPTIONS for corporate interests and billionaires Takes union members’ voice, but not corporations’: Goes straight for union members' ability to have a voice in politics by taking away our money - but not corporations money for politics or their voice. It’s one-sided and unfair. If it passes only corporations will have a voice and they’ll use that voice to roll back rights we now enjoy like social security, the right to form unions, overtime pay, PLAs, etc., etc. While it restricts unions, it’s riddled with exemptions for powerful corporate interests, billionaire businessmen and secretive Super PACs. 3. It’s a one-two punch: The goal is to disable our political power this year so that they can come back next year and destroy public sector contracts, take away prevailing wage and PLA agreements and even our right to have unions at all. It’s not just us – it’s part of bigger national strategy to destroy unions as the last line of defense against uncontrolled corporate power as in Ohio, Wisconsin and Indiana and the Citizens United ruling which defined corporations as “persons” who can contribute unlimited $$ for politics.

What We’ve Won Through Politics – And Stand To Lose Medicare health insurance pension social security 8-hour day meal breaks workplace health & safety laws child labor laws overtime pay grievance process sick leave FMLA leave minimum wage Project Labor Agreements job security not contracting out vacation leave collective bargaining Why politics matter to all of us: Public sector – very clear connection to our bargaining -- wages and benefits. Private sector – also very important – fewer private sector jobs are union/lower density, we rely on political power to help us in contract campaigns, to bargain for PLAs and set prevailing wages, maintain wage, benefit and on-the-job health & safety standards.

Prop. 32 is the First Blow of a “One-Two” punch Remove unions from politics in 2012, then come after our rights in in 2014 Next are local and state ballot measures that gut pensions, eliminate PLAs and even strip collective bargaining rights And we’d have no ability to fight back If they land the first blow by passing this measure, they’re not going to wait around to land the second blow. They’ll come after us in 2014 with everything they have. Elimination of collective bargaining, banning prevailing wage and PLAs even a state Right to Work measure are likely to be on the 2014 ballot. And we’d have no ability to stop them.

Fair and Balanced? Backers claim that the measure: Bans both corporate and union contributions to candidates Prohibits campaign contributions from government contractors Prohibits corporations and unions from collecting political funds from employees and members via voluntary payroll deduction Makes all employee political contributions by any other means strictly voluntary, requiring annual written consent. Attacks unions’ ability to raise funds for politics from every conceivable angle.

“Fair and Balanced” Really? PROHIBITS unions from making ANY contributions to state or local candidates or political parties EVER. Backers claim it’s “balanced” because the same ban applies to “corporations” but… Riddled with exemptions: Wall Street hedge funds, real estate investors, insurance companies and billionaire businessmen would be able to contribute directly to candidates Unions would NEVER be able to give even one cent to local or state candidates or political parties EVER again. The measure prohibits ANY union contributions directly to candidates or parties. The backers deceptively claim it’s “balanced” because they say same ban applies to corporations. However, they’ve cleverly written the initiative to provide EXEMPTIONS for some of the largest contributors to candidate campaigns and political parties including real estate investors, insurance companies, law firms, Wall Street hedge funds and billionaires.

“Fair and Balanced” Really? Claims to prohibit corporations AND unions from using payroll deductions for politics. Unions collect dues through payroll deduction. Corporations don’t use payroll deduction for politics; they use their massive profits. Exempts Corporate Super PACs and front groups allowing them to spend with NO Limits! The bottom line is that ALL unions would not be able to use any money for politics. Members would not be able to contribute to their union through payroll deduction, no matter what. We’d NEVER be able to use a dime collected through payroll deduction for ballot measures, independent expenditures for local and state races or any other political purpose. There’s a giant EXEMPTION for corporations, on the other hand, because they almost never use employee payroll deductions for politics. Corporations like Exxon and Wal-Mart use their profits. Corporations like Wal-Mart and billionaires like the Koch Brothers will use the exemption to spend independently through Super PACS or front groups with NO limits on any race or ballot measure in California. So while our hands will be tied, the 1% will be spending freely to push their agenda.

Prop. 32 Eliminates Our Voice UNIONS WON’T BE ABLE TO CONTRIBUTE TO: Candidates – Local or State Ballot Measures – Local or State Independent Expenditures We couldn’t even communicate with our own members on politics In addition to the prohibition on giving money to candidates and political parties, because of the ban on payroll deduction this measure eliminates our ability to contribute to ballot measures or IEs. The measure was written so broadly it even applies to member communications on politics. Think about that…we wouldn’t ever again be able to communicate with OUR OWN MEMBERS on any political issue. We would be banned from educating members on candidate positions (local or state) or ballot measures. So when anti-union forces come after us, we’d be powerless to stop them.

Who It Restricts ALL UNIONS in California will be affected - public and private sector, service, trades, EVERYBODY. Unlike Prop. 75, which only targeted public sector unions, this measure affects every union in California – public or private.

Who Can Spend Without Limits (THE 1%) Corporate Super PACs – No Limit Chamber of Commerce – No Limit Michelle Rhee’s PAC – No Limit Karl Rove’s PAC – No Limit Wal-Mart – No Limit Assoc Builders & Contractors – No Limit Billionaires – No Limit Corporations, business associations and wealthy individuals will be able to give unlimited amounts to independent expenditure committees and Super PACs. If this passes, we’re likely to see an explosion in Super PAC spending in California as wealthy donors and deep-pocketed corporations funnel unlimited funds into races and ballot measures. Because of the prohibitions on labor spending, unions will be powerless to counterbalance the avalanche of cash coming in from corporate special interests. If this measure would have been the law in California in 2010, there’s no way Jerry Brown would have won. We’d all be fighting a constant barrage of attacks from Governor Meg Whitman.

Who's Behind It Wealthy corporate interests Orange County millionaires Anti-union activists Howard Jarvis Taxpayers Association Lincoln Club of OC (backers of Citizens United case) Many of the backers of the Special Exemptions Act initiative were also backers of the similar initiatives in 1998 and 2005. Almost all the major donors have companies or organizations that would be exempted from the measure, meaning they will be able to spend without limits on politics while unions are restricted. Some specific contributors include: Billionaire former Univision CEO Jerry Perenchio $250,000 (Owner of a Limited Liability Company, which is exempted) Charles Munger Jr. more than $300,000 (Billionaire investor – exempted) Thomas Siebel $500,000 (Former Oracle executive, investor – exempted) Lincoln Club of Orange County More than $200,000 (A 501 C4 – exempted) Lincoln Club was also the driving force behind the Citizens United case, which led to an explosion of federal Super PACs. · $25,000 from Protect Prop 13, a project of the Howard Jarvis Taxpayers Association (Exempted) · $20,000 from Larry T. Smith (Real Estate Investor, previous contributor -- exempted) · $10,000 from Charles Schreiber Jr. (Real Estate Investor -- exempted) · $10,000 from R.B. Woolley Jr. (La Jolla based Investor, previous contributor -- exempted)

Our Opponents’ Message Now U.S. Secretary of State George Shultz: "This initiative gets to the heart of one of the most corrosive elements in politics: campaign contributions. For too long, special interest money has dominated our politics, muting the voice of average Californians.” Notice the word “union” never appears. They’re message is all about “special interests” and they’re talking about corporations 3 to 4 times more than they are mentioning unions. They’ve done their homework, realizing the populist anger that exists over corporate spending on elections and they’re tapping into it with their message.

Why Their Message is so Dangerous “Campaign Finance Reform” is very popular with the public Eight in 10 voters say there’s too much big money spent on political campaigns

How We’re Going to Win – Message TIPS ON MESSAGING: 1) This is an attack on our jobs and our wages – personalize fight for members 2) It’s not real reform – it’s unbalanced, unfair and full of exemptions for wealthy and corporations 3) Gives even MORE power to corporate interests, Super PACs and billionaires to write their own rules Early research is showing a clear path forward on message: Two steps to winning This isn’t real reform – it’s unbalanced, unfair and full of exemptions for wealthy and corporate interests. Super PACs, billionaires and corporate front groups can spend with NO limits on political campaigns while working people are restricted. Gives EVEN MORE influence to big corporations and wealthy donors to write their own rules. You think the scale is tilted to the 1% now? This measure would give total control over government to big corporations and billionaires. Top testing message: This measure is the first of a “one-two” punch to weaken unions. The anti-union backers are trying to fool voters into passing this measure now so they can come back with subsequent measures that strip away our priorities like safe working conditions, overtime pay, prevailing wage, pensions and even the right to have a union at all.

How We're Going to Win – Field and Paid Media We need more education than ever – MUST reach every union member in the state to win Member to Member Program – in worksites, phoning, walking and online Building a broad coalition of partners Voter persuasion and GOTV campaign to general voters through Alliance for a Better CA Statewide paid media – TV and radio, social media and mail To win we must run the most intensive member-to-member campaign in our history. We’re going to have to reach every union voter in the state, and we need to start the education NOW. We must reach members at home, at the worksite and online. Member communication needs to happen early and often between now and November. We also have a strategic voter communication program to voters at large. The Alliance for a Better California, a coalition of statewide unions, will run paid media and field to non-union voters using cutting-edge technology and the Labor Federation’s Million More Voters targeting. We have NO CHOICE but to win this campaign. And with your help we will win. We need to send these anti-union millionaires back into hiding by beating them so badly that they NEVER try this kind of deceptive attack AGAIN!

For More Information: Go to www.CaliforniaLabor.org Contact California Labor Federation Communications Director Steve Smith at ssmith@calaborfed.org