Sunday, April 26, 1998

Business groups trying to compete better with labor on politics

By JONATHAN D. SALANT / Associated Press Writer

WASHINGTON (AP) -- Business groups worried about losing friendly House Republicans in fall elections are borrowing a page from organized labor.

After the 1994 Republican takeover of Congress, labor spent $35 million two years ago to help defeat 18 GOP incumbents in the House, narrowing the Republican majority to an uncomfortably thin 11 seats.

Now, business leaders are agitating to get their own ranks to counteract yet another aggressive effort this November, led by the AFL-CIO, the umbrella organization for nearly 100 affiliated unions.

Business groups talk about increasing their political action committee contributions -- in 1996, they outspent labor by a 6 to 1 margin, $351 million to $59 million, according to the Center for Responsive Politics -- while trying to respond earlier to labor's expected flood of radio and television commercials.

Considered one of the GOP's strongest supporters, business groups admit they were unprepared for labor's feisty challenge two years ago and that they need to target their greater financial resources on specific races, much like labor.

"It has gotten our members' attention as to the need to be involved politically," said Dan Danner of the National Federation of Independent Business, a founding member of a group of business organizations called the Coalition.

"A lot of the issues that the unions beat up on candidates about are issues that we disagree with them pretty strongly."

Labor is readying for fresh battle, too.

Next week, the union federation begins training its first class of some 300 volunteers for work in competitive districts. Their assignment: Knock on doors of union members, distribute literature and get them out to vote on Election Day. The volunteers will come from union locals in the targeted districts.

"A lot of union members stayed home in 1994," said Steve Rosenthal, political director of the AFL-CIO. "That had a lot to do with a lot of the Gingrichites being elected. What we want to do is make sure that doesn't happen again."

Beginning in 1995, labor got aggressive, airing a series of issue-oriented TV commercials in key congressional districts, criticizing selected House Republicans for their positions, including on minimum wage and education.

Unions ran other ads in selected districts in 1996 and again in 1997. This year, they have earmarked $28 million -- about $2.15 worth of dues per union member -- for a similar effort.

The Coalition strategy is to counteract the labor effort, including by sending a videotape to top corporate executives asking for financial support.

The group spent $5 million in 1996 to counter labor's ads but is struggling to raise a like amount this year, an effort made difficult so far because the unions have yet to air their election-year commercials.

"Right now, a lot of people unfortunately don't see the same threat," said Danner, vice president of government relations for the small business federation.

On its own, the NFIB plans to mail literature to its members in 150 districts, up from 100 in 1996, and run radio commercials in support of candidates in 70 districts, up from 50 in 1996.

A new business-oriented political organization, the American Insurance Association-led Americans for Job Security, is trying separately to raise $12 million for its advertising campaign. Again, borrowing from labor's 1995 playbook, it already is running ads, hoping to help set the agenda rather than simply react to union issues.

"If you're not out there advocating your ideas, they won't be heard," said Dave Carney, chief executive officer of Americans for Job Security.

The business groups also are trying to force labor to divert its financial resources from congressional races. The AFL-CIO is fighting business-backed efforts to require unions to obtain permission from their members before spending any money from dues on political activity.

"If their goal was to try to tie us up and force us to spend resources defending workers' voices in legislation and politics, then they have been successful," Rosenthal conceded.

Meantime, business leaders are meeting regularly with the National Republican Congressional Committee, which is trying to keep the GOP's slim hold on the House.

"We talk to them frequently and have said, 'Look, the unions are going to do this again,' and encouraged them to be organized early," NRCC spokeswoman Mary Crawford said. "We're encouraging them to be prepared and take on the unions head on."