New labor clout being felt already.

Emboldened by the results of the Nov. 3 election, organized labor is looking to flex its newfound muscle here in Los Angeles.

That includes pushing for implementation of so-called "living wage" laws in cities throughout L.A. County, as well as an organizing drive aimed at drawing thousands of new workers into labor's fold.

"We want to translate our victories at the state level to local levels of government," said Miguel Contreras, executive secretary-treasurer of the Los Angeles County Federation of Labor.

The strategy is to use labor's new clout with state legislators to influence local councils on living wage and other issues of concern to labor, such as what kind of developments local governments approve. A labor-led coalition, for example, already is pressuring L.A. city and county officials to require certain wage levels in such developments as the proposed expansion of Universal Studios and Los Angeles International Airport.

"We also don't want to see more Wal-Marts and K-Marts come in and dilute wages for workers," Contreras said.

The question is: Will this resurgence of labor translate into tougher times for California businesses and increase the brakes on an economy that already may be slowing?

Business leaders contend that employers' bottom lines could take severe hits if labor wins increases in the state minimum wage and succeeds in spreading the living wage beyond L.A.

"The living wage movement is a threat," said Jeff Gorell, spokesman for the California Manufacturers Association. "It may not hit our member companies immediately, because the wages they pay are generally between $12 an hour and $25 an hour, but it will spread up to more highly paid workers over time."

Of more immediate concern, Gorell said, is labor's push for higher workers' compensation and health benefits.

"We are putting together some tangible data that shows how adding additional benefits affects business and the economy," he said. "We plan to take the data to Gray Davis and the Legislature in January."

In practical terms, the success of labor-backed candidates at the state level means that unions will have more political allies as they prepare for several major battles - including efforts to organize 3,000 low-wage workers at LAX, 5,000 workers at Catholic health care facilities, and thousands more home health care workers.

Labor's recent string of victories began with the defeat in the June primary of Proposition 226, which would have prevented union dues from going to political campaigns. Then, in the November elections, Gray Davis recaptured the governor's office for the Democrats - with heavy union backing - and Democrats scored significant gains in their majorities in the state Legislature.

"Now there is a much greater opportunity for labor to advance their agenda," said Kent Wong, director of the Center for Labor Research and Education at UCLA.

The seeds for these victories, according to Wong, were sewn three years ago as a new generation of labor leaders came to the fore in California. They included Art Pulaski, executive secretary-treasurer of the California Labor Federation, and chief labor lobbyist Tom Rankin, who began shifting the federation's focus toward bringing more union members into the fold and pushing for higher wages.

Contreras, who assumed the reins of the Los Angeles County Federation of Labor at about the same time, has similarly refocused the local labor community and achieved a milestone when the Los Angeles City Council approved a living wage ordinance last year.

One local labor official has gone on to a position of power in Sacramento: Speaker of the state Assembly Antonio Villaraigosa, who started his career in public life as a teachers' union representative.

"This new generation of labor leaders has been very politically savvy," Wong said. "They have formed new alliances and have launched aggressive media campaigns. They project a different image: no more cigar-smoking, backroom-dealing labor bosses."

All of which makes business leaders quite nervous.

"Living wage ordinances raise big concerns about competitiveness," said Ezunial Burts, president and chief executive of the Los Angeles Area Chamber of Commerce. "We have no objections to making sure that we do not have workers in poverty, but we do not need to throw up hurdles that send messages out to the marketplace that discourage people from doing business in Southern California."

Union leaders, for their part, insist that their initiatives will not harm the economy. Rather, they see their efforts as passing along wage and benefit increases that are long overdue for workers.

"When the economy is good, both business and workers should benefit," Pulaski said. "There have been times in this past decade when that wasn't so, where the benefits of the economy did not trickle down to the workers. We don't want to take it all, we just want to share in the wealth."

Gorell and other business leaders say the prospect of a slowing economy could take the edge off labor's push for higher wages and benefits, especially in negotiations with private-sector employers.

"Clearly, the prospects for California's economy are dimming slightly from what we thought would be the case six months ago," said Fred Main, senior vice president of the California Chamber of Commerce. "Labor is probably right in trying to lock in whatever increases they can now, because if the economy starts getting worse, employers may not sign contracts with higher wages or benefits."

And if an economic downturn does take place, it could alter the balance between labor and management, said Gilbert Siegal, professor of public productivity and workforce improvement with USC.

"If the economy turns south, that will diminish labor's clout significantly," Siegal said. "There would no longer be a shortage of labor supply. The window of opportunity for labor would then be closed."

The California Labor Federation's Pulaski agreed.

"We know it's tough to gain at the bargaining table and tougher to boost the minimum wage when the economy isn't good," he said. "That's why we want to work with business and keep the economy strong, so both business and workers will benefit."

The prospect of an economic downturn, along with painful memories of the recession in the early 1990s, could also blunt labor's push in Sacramento.

"We are much closer to the recession of 1991-1993 than we are to the heyday of big liberal spending in the 1970s," said Main. "Elected officials remember what happened during the recession and we believe they will be reluctant to enact policies that have a good chance of sending employers out of the state. This will have some of a balancing effect."