News Summary

Arizona is experiencing significant economic disruptions as the out-of-state labor union Worker Power interferes with major job-creating projects. Notably, the $1.3 billion expansion of Axon and the proposed VAI Resort are facing delays due to referendum campaigns initiated by the union. This interference raises alarms among local officials and businesses about the potential impact on job creation and the state’s economy. Stakeholders are calling for reforms to prevent external factors from undermining local development initiatives.

Arizona is facing significant economic disruptions due to the actions of an out-of-state labor union, Worker Power, which is affiliated with the California-based group UniteHere. The organization is reportedly attempting to interfere with major job-creating projects in the state, raising concerns among local officials and businesses regarding the potential impact on the economy.

Among the projects facing delays is a planned $1.3 billion expansion of Axon, a public safety technology company based in Scottsdale. The project was initially approved by the Scottsdale City Council last November and is projected to contribute a $38 billion positive impact on Arizona’s economy over the next decade. However, it is now on hold due to a signature campaign initiated by Worker Power, which has forced a referendum to be held in November 2026 regarding the expansion, effectively stalling the project.

In addition to Axon, the proposed VAI Resort in Glendale is facing challenges that could hinder its development. This resort is anticipated to be the largest in the state, creating approximately 2,000 new jobs and generating up to $2.2 billion in tax revenue. Although the project received zoning approval, it is now contested through a ballot measure launched by Worker Power. Claims from the group include accusations of the resort eliminating a city park and concerns around water usage. However, the resort developers have noted that the property would utilize 50% less water than what is currently permitted under existing zoning laws.

The special election aimed at addressing the zoning changes for the VAI Resort is scheduled for May 2025, putting further obstacles in place for this key economic initiative. Worker Power’s involvement in such high-profile projects is not new, as the group has a history of opposing developmental undertakings in Arizona, including the failed Proposition 499 and opposition to a major development for the Arizona Coyotes in Tempe.

Critics of Worker Power argue that the organization’s actions are indicative of a broader trend wherein out-of-state entities manipulate local political processes. They contend that the group tends to prioritize expanding union influence over genuinely addressing community zoning or environmental concerns. Moreover, concerns have been raised about the potential for out-of-state special interests to undermine local economic stability through referendum campaigns and signature-gathering strategies.

Current laws governing referendums and zoning decisions in Arizona are perceived by some as outdated, allowing for exploitation by outside forces. Proposals for reform have been presented, advocating for new regulations that would treat zoning approvals as administrative actions rather than items subject to referendum votes, as well as enhancing the standards related to the signature-gathering processes for local initiatives. Such reforms are seen as crucial to preventing the disruption currently being experienced by significant economic projects in the state.

The repercussions of Worker Power’s strategy have sparked concern among local leaders and business advocates, who assert that these actions threaten job creation and economic development opportunities critical to Arizona’s growth. Without legislative changes to protect local economies from the influence of external actors, Arizona may risk losing substantial job prospects as entities from other states dictate local economic policies.

Arizona Faces Economic Disruptions from Out-of-State Union

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Author: HERE Huntington Beach