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Arizona faces potential economic disruptions as the California-based labor group UniteHere, through Worker Power, challenges significant job-creation projects. The expansion of Axon, a public safety technology company, is on hold due to a signature campaign, while the proposed VAI Resort in Glendale is also under scrutiny. Local leaders express concerns about the implications for the state’s job market, stressing the need for reforms to prevent external influences on local development decisions.

Arizona is currently facing potential disruptions to major economic developments, as the California-based labor group UniteHere through its political arm, Worker Power, seeks to interfere with significant job-creation projects in the state. The group’s activities have raised concerns among local leaders regarding the implications for Arizona’s economy and job market.

One of the most pressing issues involves a planned expansion by Axon, a public safety technology company headquartered in Scottsdale. The company aims to invest approximately $1.3 billion to expand its corporate headquarters, a move anticipated to generate a staggering $38 billion in positive economic impact over the next ten years. However, this expansion is now on hold due to a signature campaign initiated by Worker Power, which has led to the freezing of the project pending a public vote scheduled for November 2026.

Axon’s contributions to the state’s economy are noteworthy, with an annual tax revenue of $21 million. The Scottsdale City Council approved the expansion plans unanimously last November, but the recent intervention by out-of-state interests has halted progress.

In addition to Axon, the local economy is also bracing for the potential consequences of Worker Power’s ballot initiative concerning the VAI Resort in Glendale. Expected to become the state’s largest resort, this development promises to create around 2,000 new jobs and generate approximately $2.2 billion in tax revenues. Despite receiving zoning approval, the project is now facing challenges from Worker Power, which has launched a ballot measure against the resort. The special election regarding zoning changes for the VAI Resort is slated for May 2025.

Worker Power’s objections to the VAI Resort include claims that it would lead to the elimination of a city park and environmental concerns related to water usage. However, it has been noted that the resort’s design would actually utilize 50% less water than is permitted under the current zoning regulations, raising questions about the validity of Worker Power’s claims.

The labor group has a history of opposing various development initiatives in Arizona, including the unsuccessful Proposition 499 and an earlier campaign against the Tempe project for the Arizona Coyotes. Their approach has often involved contesting commercial projects on grounds of alleged lack of transparency and insufficient community input.

Critics have argued that Worker Power’s focus appears to be less about genuine concerns for local zoning or environmental issues and more about extending union influence across the state. The situation highlights ongoing dissatisfaction among local leaders with the current framework surrounding referendums and zoning decisions, which they believe has become outdated and susceptible to exploitation by special interest groups.

Proposals for reform are being discussed, including potential regulations treating zoning approvals as administrative decisions and enhancing the legal framework governing signature-gathering for local initiatives. Such reforms aim to prevent the manipulation of local economic policies by out-of-state organizations.

A representative for VAI has expressed concerns that the actions of Worker Power could jeopardize job creation and stall economic growth in Arizona. Observers indicate that without meaningful reforms, Arizona risks losing out on critical employment opportunities as external entities increasingly influence local development strategies.

As the state approaches important votes in the near future, the interplay between local needs and out-of-state influences remains a pivotal issue for Arizona’s economy.

Arizona’s Economic Developments Threatened by Labor Group

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Author: HERE Anaheim