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Special Interest is Roadblock to State Budget:
Laidlaw Transportation Wants Free Ride:

An out-of-state school bus company is working with Republican legislators and the governor to hold up the State Budget to force repeal of safeguards on for-profit contracts. Laidlaw, a private bus company, is lobbying the state to make it easier for the company to win outsourcing contracts from local school districts. Laidlaw stands to reap millions of dollars in new business if it can just get rid of pesky contracting safeguards that force it to show real cost-savings. If it can repeal outsourcing safeguards, Laidlaw could end up operating many of the 15,396 buses now owned and operated by school districts. Those represent hundreds of millions of dollars in potential business. (Los Angeles Times, 7/19/2004)

Laidlaw International Inc. is a public corporation headquartered in Illinois. It is surprising that Republican legislators and the governor are holding up the entire budget for a company that has just emerged from bankruptcy.

Laidlaw is spreading hundreds of thousands of dollars around the Capitol to force its way into the State Budget so it can get its hand in the public till. Reports on file with the California Secretary of State show that Laidlaw has paid a variety of lobbyists to seek repeal of SB 1419. Those payments total more than $87,000. In addition, Laidlaw has contributed funds to the California School Transportation Association, which has spent over $160,000 this year lobbying for the repeal of SB 1419. TheyÌre getting their moneyÌs worth, because the Republicans and the governor are pushing a proposal that was written on LaidlawÌs stationary. (Los Angeles Times, 7/19/2004)

LaidlawÌs selfish power play is holding up payments to hardworking Californians. It has been publicly reported that the State Budget, which was due in place by the July 1 start of the StateÌs fiscal year, is being held up by demands to repeal SB 1419 as part of the budget. Without a budget in place, payments cannot be made to vendors and others who depend upon prompt payments from the State of California in return for their goods and services. The Assembly Republican leader told the Speaker of the Assembly that there would be no budget without LaidlawÌs approval! (Los Angeles Times, 7/19/2004)

Laidlaw is a scofflaw company that has violated U.S. laws Laidlaw has employment tax-avoidance schemes similar to Tyco. Laidlaw was found by a U.S. court to have violated U.S. tax law. Laidlaw ran its funds through offshore havens just to avoid paying its fair share of taxes.

Laidlaw treats its employees poorly, and makes the public pay the difference. Laidlaw skimps on pay, vacation, retirement and health care. The taxpayers pick up the tab when low-paid workers donÌt receive health coverage. In 2002, hundreds of Laidlaw employees in Los Angeles struck over poor pay and mistreatment. Bus drivers complained of impossible working conditions: low wages, split shifts, tiered wage levels, financial burdens on workers to provide their own medical insurance, no vacation pay, and shortened sick leaves. One driver described working for Laidlaw as "modern-day slavery."

Laidlaw underpays its employees, but lavishes riches on its top executives. According to publicly filed reports, Laidlaw paid Kevin Benson $1.1 million. Laidlaw paid Douglas Carty $493,106, Wayne Bishop $282,000, and Geoffrey Mann $251,000.

Meanwhile, Laidlaw pays its bus drivers peanuts. "

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