By Lisa Rapaport, The Sacramento Bee, Calif. Knight Ridder/Tribune Business News
Dec. 23--Protesters from consumer, medical and labor groups picketed Macy's department store in downtown Sacramento on Monday, angered by the company's $200,000 contribution to a business-led campaign to repeal California's new employee health insurance law.
Gov. Gray Davis signed the measure, Senate Bill 2, two days before the Oct. 7 recall election that removed him from office. It requires companies with 200 or more employees to buy health insurance for workers and their families by 2006. Firms with 50 to 199 employees must purchase coverage for workers u but not their families u by 2007.
Shortly after Davis signed the law, Californians Against Government Run Healthcare formed to stop it from taking effect. Led by the California Chamber of Commerce and the California Restaurant Association, the group spent about $1.5million gathering petition signatures for a March ballot referendum to repeal the law.
The restaurant group gave $555,000, the largest donation to the cause, according to the secretary of state's office. Macy's was the next largest contributor. Several fast food chains and restaurants donated, including Carl's Jr., McDonald's, Outback Steakhouse, Sizzler, Rubio's Restaurants and In-N-Out Burger.
Macy's defended its donation in a statement that read in part: 'The potential impact of SB 2 on Macy's West exceeds tens of millions and could result in a significant loss of jobs.' A spokeswoman declined to answer questions about the health benefits offered to company employees.
Protesters also picketed Macy's stores in San Francisco and Los Angeles.
'We wonder why Macy's is bankrolling the effort to reduce health benefits not only for their workers, but their customers,' said Anthony Wright of the consumer group Health Access. 'If shoppers don't have health coverage, and the protections given under SB 2, they will fall into medical debt and bankruptcy, and can't be good customers.'
A Sacramento Superior Court judge ruled that the referendum petitions misled voters and violated election law. Business groups appealed and are awaiting a ruling from the 1st District Court of Appeal in San Francisco.
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(c) 2003, The Sacramento Bee, Calif. Distributed by Knight Ridder/Tribune Business News.
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