Corporations turn to ballot to combat California’s policies

SACRAMENTO — Twice in the last two weeks, major corporations have scored wins in their fights against progressive policies approved by Democrats at the California Capitol.

First, the Secretary of State announced that fast-food companies had collected enough signatures to force a referendum on a state law meant to boost wages for restaurant workers. Last week, oil companies’ effort to overturn an environmental safety law that would ban new drilling projects near homes and schools similarly qualified for the ballot.

Both laws are now on hold until voters decide in November 2024 whether to uphold them.

That added to frustrations among California’s labor unions, environmentalists and good government groups, who alleged corporations are abusing the direct democracy process and intentionally misleading voters who signed petitions calling for the referendums.

“This is about corporations not being able to win in the Legislature and trying to hoodwink voters into taking away the progress that Californians have made,” said Tia Orr, executive director of the Service Employees International Union of

California.

The powerful labor union, which represents 700,000 workers and 17 local unions, is leading a coalition considering reforms to the referendum process. Any proposal to change California’s century-old system of direct democracy is likely to spark pushback from businesses that are increasingly using it as a check on the Democratic Legislature.

Jennifer Barrera, president and chief executive of the California Chamber of Commerce, said companies are turning to the referendum process, in part, in response to the Legislature becoming a “super super majority by one party.”

The California Independent Petroleum Association declined a request for an interview.

The organization and oil companies spent at least $20 million to qualify the referendum on the law requiring a buffer zone around new oil and gas wells, a marquee policy in a package of climate change bills that Gov. Gavin Newsom pushed through the Legislature in the final days of the legislative session in August.

Newsom ripped the industry after the referendum qualified, his latest rhetorical attack in an ongoing assault on Big Oil.