COUNCIL EXTENDS PARTNERS' BENEFITS TO CONTRACTORS.

Byline: Rick Orlov Staff Writer

Calling it a civil rights issue, the Los Angeles City Council on Wednesday broadened its policy of providing benefits for city employees' domestic partners by extending the requirement to companies that do business with the city.

Under the ordinance approved 12-0, municipal contractors that offer health insurance benefits to workers and their spouses will be required also to make benefits available to those in partnership relationships.

``There are people like me, who have been in a committed relationship for 20 years, and are not able to get benefits,'' said Councilwoman Jackie Goldberg, who is a lesbian and author of the proposal. ``It seems only a matter of fairness to offer to all workers the benefits now offered only some.''

Initially, Councilman Rudy Svorinich voted against the proposal, which would have delayed adoption one week. But he agreed to leave the City Council chambers to enable its approval without opposition so it could be sent on to Mayor Richard Riordan for consideration.

``My concern is that for a firm to get out of this, they could stop offering benefits for all employees,'' Svorinich said. ``It could end up hurting more people than it helps.''

Goldberg, however, said she doubted if any firms would take such a step and risk losing their workers.

Riordan is leaning toward approval, but wants to study the proposal's full impact, an aide said.

``The mayor will evaluate this through the lens of equal opportunity and the fact that Los Angeles is the most diverse city in the nation,'' Deputy Mayor Noelia Rodriguez said.

Under the proposal, domestic partners, homosexual and heterosexual, would be allowed to seek benefits from employers that already offer health benefits and have city contracts worth at least $5,000.

The city Chief Legislative Analyst's Office, said the new domestic partners policy would affect only a small number of employees and have a cost of about $2,100 per worker, based on a study of firms covered by the city's living wage law.

Sally Cho of the Chief Legislative Analyst's Office reported that 152 of 200 firms now covered by the living wage law offer benefits to workers.

Fifty-two of those firms responded to the city's inquiries, with 12 of those companies already offering benefits to domestic partners. Other companies offer benefits to the employee and one other person without specifying a relationship, the study found.

``The major concern of the companies was any additional costs, but the ordinance provides that if the costs are higher, the employee will pay the difference,'' Cho said.

Cho said it was expected only about 3 percent of all workers would apply for the program based on the city's domestic partner program.

There was no estimate on how many firms would be covered by the new law.

Jack Kyser, chief economist for the Economic Development Corp., also said he expected little major economic impact.

``It's almost becoming a standard practice,'' Kyser said. ``More major corporations are adopting this on their own to keep employees. In a tight labor market, you see firms offering incentives, bonuses, profit sharing and benefits like this to keep workers.''

Goldberg said the law is much stricter than a similar measure in San Francisco, where couples only have to be living with each other. Under the Los Angeles measure they will have comply with the city's domestic partner law, which requires couples to sign an affidavit regarding their relationship.

Goldberg and Kyser both compared it to the city's living wage law, which they said has not resulted in higher costs to the city.

``You don't hear firms saying they won't bid on city contracts because of the living wage,'' Kyser said. ``This is a strange labor market, that is very tight. Firms are doing what they have to do to keep workers.''