Unions also spend heavily to pass living wage measure
Foes of Santa Monica’s living wage law raised nearly $250,000 over the past three months for their campaign to torpedo the controversial ballot measure.
Campaign fundraising reports released Tuesday show that a coalition of local businesses, luxury hotels and residents calling themselves Santa Monicans Fighting Against Irresponsible Regulation, or FAIR, out-fundraised their rivals nearly 10-1.
Since July, FAIR raised $258,955.20, mostly from luxury hotels located along Santa Monica’s beaches.
The company that owns Casa del Mar and Shutters on the Beach was the single largest donor with $75,000. The Radisson Hotel, Loews Santa Monica Beach Hotel and the Doubletree Guest Suites Hotel each contributed $50,000.
Hotel Oceana and P.F. Changs Restaurant each gave $10,000, while the Lobster and Gotham Hall donated $3,500 and $2,500 respectively.
“Those are examples of small businesses giving what it takes to protect their businesses,” said FAIR spokesman Seth Jacobsen. “They are willing to go out and spend what little they can offer to defeat this dangerous measure.”
“If you look at the report, the businesses that would be affected have contributed money,” he added. “And there’s nothing wrong with that.”
Supporters of the living wage say the campaign disclosure form illustrates just how important defeating the measure means to businesses.
“These numbers show that the Santa Monica hotel industry is determined to spend whatever it takes to keep workers from earning enough to support their families,” said Vivian Rothstein, director of Santa Monicans Allied for Responsible Tourism, or SMART. “We believe that voters will see through this big-money campaign to deny hotel workers a fair wage.”
“We believe that voters will see through this big money campaign to deny hotel workers a fair wage.” — — VIVIAN ROTHSTEIN Director of SMART
Santa Monica’s proposed living wage law has drawn national attention because its the first of its kind to regulate salaries paid by businesses with no direct financial ties to a municipality.
Political pundits believe Santa Monica’s ordinance could act as a test case for more such wage laws nationwide, and each side of the issue is expected to raise and spend millions to convince voters of their views.
On the other side of the issue, Santa Monica Coalition to Protect the Living Wage reported raising only $24,099.36 during that same time period. The organization is the political wing of a group financed by the Hotel Employees & Restaurant Employees Union called Santa Monicans Allied for Responsible Tourism, or SMART.
78E,HERE donated $6,000 to the campaign and an additional $1,500 in office space for SMART workers. The Los Angeles Alliance for a New Economy paid SMART employees $11,500 in salaries and gave $1,051.25 for SMART’s utility bills.
The remainder of SMART’s money came from numerous $100-500 contributions from private individuals.
While more than 75 percent of the money raised by the group came from LAANE, which is partially funded by unions, and the HERE union, spokesman Danny Feingold said the report shows the group has many grassroots supporters.
“Our contributions come in small increments, but we have a lot of people who support us and continue to contribute to the campaign,” Rothstein said, adding that more than 4,000 Santa Monica residents have contributed to the living wage campaign.
Jacobsen said HERE union officials are waiting until the last minute to contribute large amounts of money so the living wage campaign can paint their struggle in terms of David vs. Goliath.
“But if you look at where their money is coming from, most of it’s from outside of Santa Monica,” he said. “And then if you look at where our money is coming from, it’s from local businesses that would actually be affected by this unfair and dangerous measure.”
Rothstein denies the campaign is hiding any union-financed slush fund, and said FAIR’s campaign is far from local.
“FAIR’s money is coming from big multi-national corporations that have an outlet in Santa Monica but they don’t represent Santa Monica voters or residents,” she said. “If these corporations put this much money into paying their workers, we wouldn’t have this problem. It’s really an outrage.”
Originally published in the Santa Monica Daily Press print edition on October 10, 2002. Read the original PDF.