BUSINESS, UNIONS PREPARE FOR INITIATIVE BATTLES
Denver Business Journal,  March 21

Colorado businesses could spend millions of dollars campaigning against proposed ballot initiatives that -- if voters approve in November -- would devastate the state's employment environment, business leaders say.

A coalition of labor unions backs a handful of measures intended to crack down on corporate fraud, require employers to provide health care insurance and bar companies from firing workers without notice or reasonable cause.

Mike Cerbo, executive director of the Colorado AFL-CIO, said unions support the initiatives, and are prepared to back signature-gathering efforts to get the issues on the November ballot as well as provide campaign funds.

"These initiatives are looked upon highly by working families," Cerbo said.

He denied speculation from political observers that union support of anti-business amendments is real­ly an attempt to siphon off campaign money from businesses for a proposed "right-to-work" amendment that would severely curb union power to collect dues from employees in union workplaces.

But opponents say the initiatives could have serious ramifications for Colorado businesses and could cripple economic development efforts in the state.

Doug Friednash, a Denver attorney retained by local business groups, said a proposed initiative that would let individuals sue companies and executives for "criminal conduct," potentially could make every employee in an organization liable.

"Every lawyer in town will need speed dial," Friednash said. "You could sue anyone based on what you read in the papers."

Friednash said initiatives barring employers from firing without "just cause" effectively would eliminate Colorado's at-will employment laws and could prevent businesses from laying off less than 10 percent of their work force in a single round.

He said the proposal also could put decisions about wrongful termination in the hands of an arbitrator -- effectively denying employers and employees a right to appeal the decision.

Chuck Berry, president of the Colorado Association of Commerce and Industry (CACI), said that organization opposes efforts to eliminate the at-will employment system and expand criminal liability penalties for businesses and their employees.

"These [proposals] pose a threat to the business climate if one or both are adopted," Berry said.

But whether the initiatives are in the public's interest is for voters -- and possibly the courts -- to decide.

Friednash said the title review board that evaluates initiatives isn't compelled to consider their merits -- or even if they're constitutional -- but whether they violate the state's "single-subject" rule, or if the language is confusing or misleading.

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If you have questions on any legislative topic, please contact:

Colorado Automobile Dealers Association
 290 East Speer Boulevard Denver, CO  80203
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