Ballot Issues You Will Love

1. Ballot Issues You Will Love Many Ballot Initiatives An Expensive Autumn for Colorado Businesses

2. Right to Work • Outlaws “closed shop” workplaces • Employees in firms represented by unions are not required to join or pay dues, but benefit from union negotiations for wages, benefits, etc. • U.S. has 21 “right to work” states – mostly in the West and South • Colorado has a “modified” right to work statute called Labor Peace Act in place since 1943. • Efforts to overturn Labor Peace Act were vetoed by Governor Ritter in 2007.

3. Right to Work • Proposal for fall ballot was approved by Title Setting Committee • Petitions were circulated – 70,000+ required. Supporters submitted 130,000+ by mid-April • 7% of Colorado workforce represented by unions • Polling indicates 60%+ of Colorado voters would vote YES on Right to Work

4. Business Groups Split on Issue • Colorado Association of Commerce and Industry (CACI) voted unanimous support • South Metro Chamber voted to oppose RTW and organized labor-sponsored initiatives. “No on everything.” • Mayor Hickenlooper has also started a “No on everything” effort.

5. Right to Work • Right to Work states in past six years have demonstrated greater job growth and higher percentage of income growth • Colorado employment grew 2X faster than unionized states from 2001-07

6. Growth Rates2001 - 2007 Employment Wages • Right to Work States 1.3% 3.6% • Union Shop States .3% 3.2% • Washington, D.C. 1.1% 4.2%

7. Percentage Wage Growth - Year over Year 2001-2007

8. Average Weekly Wage

9. Percentage Job Growth Year over Year 2001-2007

10. Right to Work Elections • Oklahoma was most recent state to adopt RTW • “Referred statute” from OK legislature • $20 million campaign • Funds came from throughout U.S. on both sides of issue

11. Fair Share Colorado - #63 • Requires “major medical” health insurance for any employer with 20+ employees • Sponsored by organized labor in response to Right to Work initiative • Initiative is rumored to be revised to lower insurance requirements to 5+ employee firms • Over 90% of Colorado companies have <100 employees

12. Major Health Care Coverage - #92 • Requires employers with 20+ employees to provide major health care to employees and their dependents. • Employees are not required to pay more than 20% of premium cost for employee; 30% for dependents • Creates new state-run insurance authority • If employer does not provide insurance directly, must pay the new insurance authority

13. Criminal & Civil Liability of Businesses and Individuals for Business Activities • Opens door for law suits on corporate fraud,, deceit, negligence, failure to file reports, etc • Plaintiff is not required to have legal standing, such a stockholder, vendor, etc. Undocumented aliens are also permitted to file. • Allows successful plaintiff to recover attorney fees. Successful defendant cannot. • Proceeds from successful suit go to the State’s General Fund and is not subject to TABOR spending and revenue limits • Several re-filings – all still in play

14. “Just Cause” - #62 • Eliminates “at will” employment in Colorado. • Employer & employee can no longer enter into contracts which define causes of termination • Requires binding arbitration for anyone fired in Colorado who disagrees with discharge. No appeal. • “Mediator” can compel reinstatement and/or award back wages, along with costs and attorney fees • “Just” cause includes bankruptcy and a 10% reduction in force • Mediated decision – mediator decision is final – actually binding arbitration • Sponsored by organized labor in response to Right to Work initiative. #76 filed with modifications – both in play

15. Safe Workplace - #93 • Requires employer to maintain safe & healthy workplace • Employees can seek compensatory or punitive damages for past and future financial losses, pain and suffering, emotional distress, inconvenience, mental anguish, loss of “enjoyment of life” & other non-economic losses.

16. No Tax Credits to Companies that Relocate Jobs Outside U.S. #94 • Prohibits incentives from State to any company that moves all or part of its operations to locations outside the U.S., if relocation causes loss of jobs in their business operations in Colorado.

17. Increase Assessment Ratio for Non-Residential Property - #95 • Amends Gallagher by increasing assessment ratio from 29% to 34% • Makes property taxes for commercial real estate to 5X the amount of equally valued residential property

18. Cost of Living Increases - #96 • Adds new “statute” requiring employers to provide cost-of-living increase for CPI of Colorado (which doesn’t exist) • Only CPI measure in Colorado is Denver-Boulder CPI – may inflate cost of living increases in other, less affluent parts of the state.

19. What We’re Doing • All initiatives are Constitutional amendments • Polls indicate 70% - 80% public support for three union-backed proposals – Union poll • Chamber and affiliates have retained legal help to “run the clock” on labor initiatives • Some are presently before Colorado Supreme Court • Chamber/EDC will fight labor initiatives • Organized labor will fight “Right to Work..for less”