Contractors were the hidden force behind Proposition 209, the California initiative which amends the state constitution to eliminate affirmative action and weaken sex discrimination law. At least 8% of the contributions to the Proposition 209 Campaign came directly from contractors. In addition, contractors and business interests contributed heavily to the California Republican Party, which gave over 51% of the funding to Yes on Prop 209. Earlier in the campaign, direct contributions from contractors amounted to 18% of the total funding. Prop 209 campaign chairman Ward Connerly has been a lobbyist for the construction and roofing industry, and campaign co-chair Pam Lewis has been an attorney for contractors.

"The mostly white male ‘good-ole-boy’ contractors are fighting to return to business as usual," said Eleanor Smeal, President of the Feminist Majority. "They want to return to the time when women, 53% of California’s population, and minorities, 42% of California’s population, received less than 5% of all state contracts."

That was the case until four years ago, when California implemented affirmative action reforms to increase the percentage of women- and minority-owned businesses which provide goods and services to state agencies. As a result, in 1993-1994, minority-owned businesses received 15% of all contracts, and women-owned businesses received 9%.

"Although we are far from parity, some contractors apparently are threatened by so many women and minority businesses winning contracts," said Smeal. "By backing Prop 209 they were working to eliminate the increased competition and increased scrutiny that affirmative action programs have brought to government contracting."

"History shows that when affirmative action contracting programs are abandoned, opportunities for women and minority businesses disappear," said Dolores Huerta, secretary-treasurer of the United Farm Workers. "When San Diego ended its affirmative action program in awarding city contracts, the number of minority businesses plunged from 21.3% to 2%. And when Governor Wilson cut back on affirmative action programs last year through executive orders, according to the Los Angeles Times, women-owned business contracts went from 5% to zero."