Simon Calls Davis Labor Policies Bad for Business

Republican gubernatorial nominee Bill Simon Jr. accused Gov. Gray Davis on Monday of creating an anti-business climate in California that is pushing companies to insolvency and contributing to the state’s unemployment.

On the same day that Davis signed a landmark paid family leave bill, Simon said he would work to reverse workers’ compensation increases, the eight-hour workday and other labor regulations that he said are “strangling” businesses and slowing economic growth.

“We know our state is not friendly to job growth,” the GOP candidate told several hundred members of a women’s business forum during a morning address at a Long Beach airport hotel.

Though Simon expressed mixed feelings about the paid family leave measure--saying that he supports the concept but not the bill--he fiercely criticized other labor laws signed by the governor.

Simon said Davis’ approval in February of legislation that almost doubled injury and death benefits for workers has burdened businesses and failed to help employees.

“California’s workers’ compensation system is broken,” he said. “How else could you describe a system in which employers pay the highest premiums in the nation, and injured workers get among the worst benefits?”

Davis’ aides disputed Simon’s contention.

“The governor has created a positive business environment, meeting the needs of both business and labor,” said a Davis spokesman, Gabriel Sanchez, adding that California had gained 900,000 jobs in the last four years.

“We’re facing a national recession and, despite all that, California is still doing better than the national economy,” he said.

Sanchez said the labor laws that Simon wants to roll back “have benefited millions of Californians.”

Simon’s address kicked off a week in which he plans to pitch his message about curtailing business regulations at campaign stops in the Silicon Valley, Ontario and Los Angeles.

“Opportunity, a level playing field, a chance to succeed--that’s what you all want,” he said Monday to enthusiastic applause.

“You don’t want the government giving you a handout, do you? You just want the government getting out of the way, right?” he said.

Some political experts warned that although Simon’s message about limiting government rules may resonate with the Republican Party faithful and business leaders, it may not connect with the broad swath of voters who have different financial concerns.

“Workers’ comp and things of this sort are not at the top of people’s agenda,” said Lawrence Giventer, a professor of political science at Cal State Stanislaus.

“Financially, what people are worried about is maintaining employment, if they have it, and getting jobs if they don’t,” he said.

“And those in the middle class are still stewing about their 401(k)s,” he added.

After his speech, Simon joined several business owners in a round-table discussion about state-mandated expenses that they say are harming their companies.

Scott Anderson, president of a company that makes paper bags for fast-food restaurants, said a 120% increase in his workers’ compensation premiums this year will force him to lay off 40 employees.

“It breaks my heart. It really does,” Anderson said.

“Now they’re going to be on the street because of a party that claims to be for the people,” Anderson added.

Maria de Lourdes Sobrino, founder of a dessert company based in Vernon, said workers’ compensation and overtime costs threaten her ability to make a profit.

“I want to give more benefits to my employees, but I can’t,” Sobrino said.

Cristi Cristich, founder of an electronic component company, said the overhead in California is so high that when she recently decided to expand her Anaheim business, she concluded that it would be cheaper to add a second plant in Arizona.

The neighboring state offered her free land, state-reimbursed training and other perks, she said.

“This is an example of the state and business community working to create a better environment, and that’s what we need back in California,” she said.

Simon said one of his first priorities as governor would be to balance the budget by scaling back government operations.

“We’ve got to cut government, bottom line,” he said.