By Antonio Ray Harvey

In a 20-minute interview on Oct. 10, Gov. Gavin Newsom said California’s economy is in great shape due to achievements in certain areas.

The Governor was speaking at the 2024 California Economic Summit event hosted by California Forward in Sacramento. It was attended by more than 100 leaders from industry, community, and the private, public, and nonprofit sectors.

“It is an exciting and dynamic time,” said Newsom. “Thirty-two of the top 50 AI companies are all here in California. We dominate in tourism – record breaking tourism last year.”

“It isn’t by accident that California is an economic powerhouse,” Newsom continued. “Whether it be around education, infrastructure, or immigration, we’re following a formula for success.”

In Newsom’s overview of the state’s economy, he didn’t include why two companies decided to leave for the state of Texas. SpaceX and Chevron announced their departures over the summer.

Billionaire Elon Musk is moving the headquarters of his companies X and SpaceX from San Francisco to Texas. After 140 years of doing business in California, Chevron is heading to the southwestern state as well.

Chevron employs 2,000 workers in San Ramon. It operates crude oil fields, technical facilities, two refineries, and services more than 1,800 retail stations in California.

“There will be minimal immediate relocation impacts to other employees currently based in San Ramon. The company expects all corporate functions to migrate to Houston over the next five years. Positions in support of the company’s California operations will remain in San Ramon,” Chevron shared in an Aug. 2 press release.

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By Antonio‌ ‌Ray‌ ‌Harvey‌, ‌California‌ ‌Black‌ ‌Media

Assemblymember Mike A. Gipson (D-Carson), a member of the California Legislative Black Caucus (CLBC) and chair of the Assembly Select Committee on Ports and Goods Movement, said the state must provide seaports permanent funding for them to run optimally and remain competitive.

“We have yet to see dedicated, ongoing, consistent money allocated to our ports from our state budget,” said Gipson during a news conference held at the State Capitol.

In August, Gipson released an interim report that features California ports’ crucial role in the state and national economy.

The 52-page  “Chair’s Interim Report” includes an observation of the most critical issues facing the goods movement sector and lays out a blueprint to keep the state’s 11 ports competitive in a complicated and constantly shifting environment.

Gipson stressed that foremost among priorities is the need for the state to continue investing in docking places for cargo ships.

“We are still happy to make sure these ports are not left behind and not neglected,” Gipson said at the news conference. “We still see today that our ports are fighting to have allocations from our federal partners and federal dollars. This report elevates that we need our fair share,” he added.

Over the past year, the Select Committee on Ports and Goods Movement toured the state’s 11 public ports and hosted numerous hearings on the state of the ports. Gipson was first appointed chair by former Assembly Speaker Anthony Rendon (D-Lakewood). When Assemblymember Robert Rivas (D-Hollister) replaced Rendon as speaker, he asked Gipson to continue as Chair.

“The final tour stop for the Select Committee was the port of San Diego last spring. The tour highlighted the port’s efforts in green and sustainable operations,” Gipson told California Black Media (CBM). The tour gave select committee members a breakdown of all of the possibilities the port has to create for economic vitality and growth.

“It’s important that California policymakers support efficient, modern, and sustainable maritime operations while we reduce emissions to improve environmental and public health in our communities,” stated Frank Urtasun, chairman of the Port of San Diego Board of Port Commissioners.

In May, U.S. Sen. Alex Padilla (D-Calif.) announced a $112 million federal investment in that the Ports of Los Angeles and Long Beach (San Pedro Ports) will receive more than $112 million through a U.S. Army Corps of Engineers program for critical construction upgrades, operations and maintenance activities.

“The Ports of Los Angeles and Long Beach move 40 percent of the nation’s container imports, transporting the goods that power our economy,” said Padilla.

The report outlines the importance of ports up and down the state, Gipson said. They all serve a function whether they are located on the coast or inland.

Gipson says he learned that the Port of Oakland uploads and discharges more than 99% of the containerized goods moving through Northern California. Oakland’s cargo capacity was the ninth busiest container port in the country based on the 2023 calendar year.

The inland ports cities of West Sacramento and Stockton have “unique” harbor facilities that relieve congestions and facilitate distribution to inland destinations in the Sacramento and Central Valley regions, Gipson told CBM at the State Capitol.

“Each and every port in California plays a vital role and contributes to our supply chain. Not one port in California is more important than the next,” Gipson said. “Each and every port is essential to moving forward and essential to making sure California is the 5th largest economy in the world.”

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By Joe W. Bowers, California Black Media

A new study from Harvard Kennedy School and the University of California, San Francisco, says that California’s $20-per-hour minimum wage for fast food workers has led to significant pay increases without causing reductions in jobs, work hours, or benefits. The findings, based on data collected since the wage law took effect in April 2024, show that fast food workers across the state experienced hourly wage increases of at least $2.50, with the number of workers earning less than $20 per hour dropping by 60 percentage points.

“We find no evidence that wage increases had unintended consequences on staffing, scheduling, or wage theft,” the study reports. The researchers found that work hours were stable on a week-to-week basis, and there was no reduction in employee benefits, such as health insurance or paid time off. Instead, the fast-food industry added 11,000 jobs between April and July 2024, bringing the total number of fast-food jobs in the state to 750,500 — the highest level on record.

Assembly Bill 1228, authored by Assemblymember Chris Holden (D-Pasadena), not only raised the minimum wage to $20 per hour but also established the Fast-Food Council to oversee wages, working conditions, and health and safety standards for fast food workers. During the signing of AB 1228, Holden stated, “We did not just raise the minimum wage to $20 an hour for fast food workers. We helped a father or mother feed their children, we helped a student put gas in their car, and helped a grandparent get their grandchild a birthday gift”

The study contradicts claims from the fast-food industry, which had expressed concerns that the wage increase would mean layoffs, a cut in service hours, and an increase in menu prices. However, the study found no significant changes in employment levels, work schedules, or benefits. According to the report some challenges, like underemployment and unpredictable scheduling, remain but existed prior to the wage hike.

Gov. Gavin Newsom has previously voiced strong support for the wage increase, saying, “We’re ensuring that workers in fast food — the backbone of many families — can actually afford to live in the communities where they work.”

The study’s findings align with earlier research from UC Berkeley’s Institute for Research on Labor and Employment, which showed no significant reduction in employment and only a modest increase in menu prices.

The study’s results highlight that California’s approach to raising the minimum wage has delivered higher pay for workers without the negative effects some had predicted, providing economic stability for thousands of fast-food workers across the state.

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