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"[W]hen the moderator of a televised town hall meeting in Walnut Creek ... suggested that it might not be fair to treat the unions who typically back Democrats differently from Schwarzenegger’s own corporate supporters, the governor surprised the crowd by quickly agreeing," reported the Oct. 26 San Francisco Chronicle. "Public corporations should be required to get permission from their shareholders before giving money for political purposes, he said."
"If there’s an initiative on the ballot next year, I’ll support it," the paper quoted the governor. "Because no one, if it’s a corporation or stockholder or union member, no one should have money taken out of their paycheck without permission and have it used for political purposes."
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But the governor – and others – are confusing two things. First, Prop. 75 concerns only public employee union members, not private union members who work for corporations. The private-sector unions still can, if they want to, automatically deduct dues for political activity.
Second, the voters of California are, in effect, the employers of public-employee union members. If Prop. 75 passes, the people – the employers – simply will be changing the terms of employment of their employees, mandating that the employees must give individual approval for such automatic deductions. The employees remain free, under our First Amendment protections of speech and association, to contribute their own money to public-employee unions for political activities.
Third, shareholders don’t get a "paycheck," to use his word, but own the corporation that is making political contributions. If they don’t like how the money is being spent, they can vote in shareholder meetings to change the policy. And if they fail to do that by not convincing a majority of shareholders to take up their position, they can sell their stock and buy shares in another corporation more to their liking, or put the money in a bank.
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Finally, if such a law or initiative concerning shareholders were passed in California, it would encourage companies here to move to another state without such a silly law, taking jobs and tax payments with them, making California’s stubborn budget problems even worse.
Arnold's not real bright.