Walters: California's new labor law could have unintended, unwanted consequences

"The California Legislature has a bad habit of writing new law in the moment and paying little or no attention to its potential consequences. While legislative history contains many examples, the most spectacular occurred three decades ago when legislators and then-Gov. Pete Wilson massively overhauled how electricity is generated, distributed and priced, telling consumers it would make power more affordable and reliable."

"Then there is Assembly Bill 288, one of many measures the Legislature dominated by Democrats and Gov. Gavin Newsom have passed in recent years to thwart or so they hope President Donald Trump. AB 288, sponsored by California labor unions and carried by Assemblymember Tina McKinnor, an Inglewood Democrat, expands the authority of California's Public Employment Relations Board which oversees union-management activities in state and local governments and school districts to include private sector employment."

"The bill aims for the Public Employee Relations Board, or PERB, to step into the role performed for many decades by the National Labor Relations Board because, McKinnor and other advocates maintain, the NLRB is frozen by a dispute over its membership. Early this year, Trump removed Dwynne Wilcox, the NLRB's chair, leaving the board without a quorum and unable to decide"

California lawmakers often enact legislation hurriedly, producing unintended, costly outcomes. A major example occurred three decades ago when sweeping electricity deregulation made power less reliable, drove prices up, and pushed investor-owned utilities toward insolvency. Additional policy missteps include launching a bullet train project without comprehensive plans, sharply increasing public employee pensions and unemployment benefits without fully accounting for long-term costs, and depleting emergency reserves to cover budget shortfalls caused by optimistic revenue estimates and underestimated spending. Recent legislative action, Assembly Bill 288, would expand the state Public Employment Relations Board's authority to cover private-sector labor matters amid a dispute immobilizing the National Labor Relations Board.

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