Legacy: strength of unions in L.A.

Miguel Contreras built L.A.'s labor movement into a powerhouse at City Hall and beyond--and despite his unexpected death, labor is likely to remain a major force for business to reckon with.

With much of local and state government populated with Contreras proteges, labor's political apparatus remains largely intact, and progressive labor policies--from wage-boosting laws to restrictions on big-box stores--are expected to dominate relations between business and labor.

"Contreras institutionalized his power so that it would outlast him," said Fernando Guerra, director of the Center for the Study of Los Angeles at Loyola Marymount University.

As to underscore that point, the County Federation of Labor last week named its political director, Charles Lester, as interim leader until an election for a permanent replacement is held within the next eight weeks. Out of consideration for Contreras' family, there were no further statements about the direction of the federation.

While Contreras pushed an aggressive labor agenda, he showed a willingness to cut deals with business on major regional projects, including Staples Center and Hollywood & Highland. He also joined business in pushing for the Alameda Corridor and the overhaul of Los Angeles International Airport.

"The biggest concern from the business community will likely be if labor retains its clout through political campaigns, yet you can't cut deals with them because the person at the top isn't very adept at cutting deals," said Daniel Mitchell, professor of management and public policy at UCLA.

"'Can I do business with this man or woman?' That's the question business is going to want to ask of any successor," he said.

Carol Schatz, president and chief executive of the Central City Association, said it's not just cutting deals. "It's also a question of philosophy," she said. She wondered whether labor will try to increase the economic pie--and its share along with it- or whether labor's policies will "kill the cook who makes the pie?"

Choice of successor

One business advocate expressed concern about a successor to Contreras being fixated on extracting concessions from business or imposing new regulations. On the table at City Hall is an affordable-housing set-aside ordinance and possibly measures to require workers at development projects receiving city funds to be paid higher wages and benefits.

"We would be very concerned if a new leader came along who decided his or her major issue was to stop Wal-Mart or to impose a living wage on all businesses," this business advocate said. "That could undo much of the dialogue we've had with labor."

That dialogue had been expanding in the months before Contreras' death. Late last year, he and then-Los Angeles Area Chamber of Commerce chairman George Kieffer announced the formation of a business-labor alliance to look for key areas where business and labor could speak with a unified voice.

"It's very important that business and labor relations continue to take steps forward as they have in recent years," said Rusty Hammer, president and chief executive of the L.A. Chamber.

The first test of this alliance was the compromise plan of Los Angeles Mayor James Hahn and L.A. City Councilwoman Cindy Miscikowski to overhaul Los Angeles International Airport.

It was in the interest of labor to pursue this joint effort, as any airport overhaul would generate thousands of well-paying construction jobs. Contreras won a commitment from Hahn and airport officials that all construction work would be steered towards unionized contractors, a deal known as a project labor agreement.

In the short run, there is concern that Contreras' passing could slow the airport overhaul. In 2003, Hahn appointed Contreras to the airport commission, where he used his influence to help push Hahn's plan through.

"The airport plan has had lots of hiccups over the years and this will likely prove to be another," said Richard Lichtenstein, an L.A.-based political consultant. "Whether it proves more than a hiccup depends more on whether Antonio Villaraigosa gets elected mayor than on Miguel's absence."

Villaraigosa voted against the Hahn-Miscikowski plan last fall and has said he would not pursue the controversial portions of the plan set aside for future consideration.

Labor agreements

At least one local business advocate said he was concerned about the spread of project labor agreements, and hoped Contreras' successor would not pursue agreements similar to the one struck for the airport.

"PLAs slow down competition. I hope there's a re-evaluation of labor's position on this with this transition that will now take place," said George Stavaris, a San Fernando Valley real estate broker who is local issues vice chair for the Valley Industry and Commerce Association.

Contreras was a major force in statewide politics, helping recruit and elect several labor-friendly state legislators and delivering muscle to the statewide labor movement.

Many of those legislators he helped put in place--including Assembly Speaker Fabian Nunez (who served as the County Labor Federation's political director under Contreras)--have consistently put forward legislation statewide business groups have labeled as "job killers."

In the days before he died, Contreras was preparing a major campaign against Gov. Arnold Schwarzenegger's slate of initiatives for a potential special election this fall. Those include a state spending cap, changes to the teacher tenure system and a redistricting overhaul--all with heavy financial and logistical support from state business groups.

The first rally Contreras had planned against these initiatives was scheduled for this coming Saturday (May 21); it is still scheduled but is now turning into a Contreras tribute.

Locally, his ability to balance labor's parochial interests with a larger vision for infrastructure and economic improvement will be hard to replace. "This was Miguel's unique talent. He saw the big picture and was great at building consensus around that," said Brendan Huffman, director of legislative affairs for the L.A. Chamber.

Political Progeny

Local and state officials who were backed by Miguel Contreras, head of the Los Angeles County Federation of Labor, who died on May 6.

* L.A. City Councilman Antonio Villaraigosa * L.A. City Councilman Martin Ludlow * Assembly Speaker Fabian Nunez * Assemblywoman Karen Bass * Assemblyman Dario Frommer * State Sen. Gil Cedillo * State Sen. Gloria Romero * U.S. Rep. Hilda Solis * Assemblywoman Betty Karnette * Assemblywoman Judy Chu * Former Assemblyman Marco Firebaugh * State Sen. President pro-tempore Don Perata * L.A. City Council President Alex Padilla

HOWARD FINE Staff Reporter