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Washington State Labor Council, AFL-CIO
a weekly report on the 2003 session

Previous editions:  Jan. 10 -- A Question of Priorities  (re: Explosion of corporate influence on government)
Jan. 17 -- It's the Economy, Stupid!  (re: "Competagogues" and Washington's business environment)

FRIDAY, JANUARY 24
Drug bill off to a strong start

"Simpler and clearer" is one way to describe the difference between this year's prescription drug utilization bill (HB 1214) and the one that passed the Senate last year, only to die in the House without a vote.  Significant changes include a public-private governing structure instead of an agency-controlled board, and the program will accept private plans and individual participants sooner.

But the biggest difference between this year's bill and last year's may be that it's moving in the House.  HB 1214 passed the House Health Care Committee on a 9-3 vote Thursday, building bipartisan momentum as it heads to the House Appropriations for a Monday hearing at 3:30 p.m.

The very powerful pharmaceutical lobby continues to oppose the bill as "de facto price controls" that it claims will stifle drug research and development.  But some news reports indicate the biotech industry may have softened its opposition to the plan and that certain individual pharmaceutical companies don't have a problem with it.

It also seems more legislators understand that one of the biggest factors driving the Price of Government™ is health care costs driven by predatory prescription drug pricing. The state's drug costs have risen 20 percent each year since 1999, and now carry a $500 million annual price tag.

How much would HB 1214 save us? The governor's office projects $32 million in savings over the next two years. But a report released this week by the Northwest Federation of Community Organizations, "Best Medicine at the Best Price," anticipates even greater savings. It says other states that established similar consolidated purchasing mechanisms have saved between 5 and 10 percent in drug costs, and even more in some cases. The report says 5 percent savings in Washington would cut costs $65 million over the biennium, and 10 percent would save us $130 million.

Just as importantly, the plan would offer hope to struggling private sector plans that can join the purchasing group and share in the savings.  The more participants, the more savings will increase.

House Democratic leaders have made it clear that passage of HB 1214 is one of their top priorities this session. They deserve credit for standing up for what's right against the pharmaceutical industry lobbyists.

But the real test will likely come in the Republican-controlled Senate. Last year, a plague of national drug company lobbyists descended on the House, swarming the halls in numbers rarely before seen, to kill the drug bill.  Their strategy was coupled with deceptive newspaper advertisements across the state attacking the bill, using phony organizational names like Citizens for Better Medicare and The Seniors Coalition. When you start seeing those ads, you'll know the campaign to kill the bill has begun in earnest.

Competagogues go after ergo (again)

In stark contrast to House Democrats' noble efforts to improve the health care system, too many State Senators seem intent on making sure 50,000 workers participate in the health care system every year.  That's the number of preventable musculoskeletal injuries that occur every year in this state because of unsound ergonomics practices.

What also occurs every year is the debate over whether the Legislature should intervene to repeal the ergonomic rule addressing the state's largest unregulated safety issue that costs the State Workers' Compensation Fund some $400 million annually.  But you've heard all this before.

"The science behind the rule is questionable at best," said Sen. Mike Hewitt (R-Walla Walla), who sponsored SB 5015 to repeal it. But you've heard that before, too—from Philip Morris executives who, like Hewitt, dispute the findings of questionable authorities like the National Academy of Sciences. (A NAS study demonstrates ergonomics prevention works and is cost-effective.)

Injured workers and a number of labor representatives—including the Teamsters, State Employees, Food and Commercial Workers, Machinists, Service Employees and Communications Workers unions—testified Thursday against SB 5015.  Greg Devereux, Executive Director of the Washington Federation of State Employees, pointed out that "Not only am I an advocate for state employees, but I am a small business employer. We have 56 employees at the Federation. We have totally re-engineered our workplace. We think it’s good for morale. We think it’s good public policy. And we think it’s good for small businesses across the state."

WSLC Education and Safety Director Randy Loomans added that ergonomic design has become a major selling point for products from tools to chairs to lawnmowers. "It seems contradictory that business would oppose ergonomic rules for their workers while profiting from the sale of ergonomic-designed products for consumers," she said.

SEIU testimony reminded legislators of the serious health care worker shortage, and that this aging workforce shouldn't be forced to do such physically demanding work without ergonomically sound practices protecting them from injuries that can—and do—end careers.

Support for repealing the rule was summed up by Sen. Hewitt: "I think it’s very anti-competitive for our state." And thus, playing the competagogue trump card, this bill appears to be on the fast track for Senate approval, with all Republicans and a handful of Democrats in support.

Also this week, the Senate competagogues heard a number of corporate deregulation bills that would make it more difficult for state agencies to do their jobs. You know, like protecting workers, the environment and consumers. It's just not competitive to try to do all that stuff.

Minimum paid leave bills introduced

The Family Leave Coalition, which successfully advocated last year for the Family Care Act allowing use of earned time off to care for ailing family members, is back in 2003.  This year they are pushing HB 1221, prime sponsored by Rep. Mary Lou Dickerson (D-Seattle), and SB 5377, prime sponsored by Sen. Karen Keiser (D-Des Moines).

These bills would require that employees be entitled to a minimum of 40 hours paid time off for every six months full-time work (prorated for part-timers) and that leave be available after the first six months of work. No word yet on when (or if) these bills will be heard in committee.

But assuming that eventually happens, any workers who have suffered a significant hardship because they didn’t have paid leave, and business owners who can attest to the benefits of providing paid leave, are asked to contact the Coalition if they would be willing to testify in Olympia.  Call Marilyn Watkins at (206) 529-6370 for more information.

L&I willing to talk on workers' comp

The WSLC and others have criticized the Department of Labor and Industries for adopting a benefit-containment strategy that harms injured workers in response to employer outcries about workers' compensation premium hikes.

Paul Trause, the new L&I Director, made an appearance at a House Commerce and Labor hearing Thursday and indicated department-requested legislation related to workers' compensation was just a "starting off point." He said there needs to be a comprehensive solution acceptable to labor and business, and expressed a willingness to talk and negotiate.

The committee chair, Rep. Steve Conway (D-Tacoma), pointed out that there are a number of workers' compensation issues besides premiums and benefits that need to be put on the table, including the state's employability standard, independent medical examinations and the responsibility of self-insured employers and the Department to deal fairly with workers who submit claims.

Other hearings scheduled next week

Some of the other committee hearings slated for the week of Jan. 27-31 are:

MONDAY—House Commerce & Labor at 1:30 p.m. will have a work session on proposed standards for fire fighter safety and health; House Appropriations at 3:30 p.m. will have a public hearing on funding the contract negotiated by the Home Care Quality Authority and the workers' union (SEIU 775) and on HB 1214, the prescription drug bill described above.

TUESDAY—House Criminal Justice at 10 a.m. hears HB 1175 preventing trafficking in persons; House Higher Education at 10 a.m. holds a work session on Workforce Education Programs; Senate Government Operations at 1:30 p.m. hears SB 5080 regarding a state government hiring freeze;  Senate Education at 1:30 p.m. will hear SB 5012 authorizing charter schools; Senate Ways & Means at 3:30 p.m. will hear SB 5089 allowing fire fighter EMTs to transfer PERS service credit to the LEOFF 2 system and several other bills regarding state pension plans; Senate Transportation at 3:30 p.m. holds a work session on transportation funding;  House Appropriations at 3:30 p.m. will have hearings on a number of bills related to state pension plans and survivor benefits;

WEDNESDAY—House Commerce and Labor at 8 a.m. hears HB 1211 on accountant accountability; Senate Commerce and Trade holds a work session on the state workers' compensation fund; Senate Health Care at 1:30 p.m. hears SB 5236 regarding health benefits for school district employees.

THURSDAY—Senate Commerce & Trade at 8 a.m. will hear SB 5271 restricting eligibility for workers' compensation hearing loss claims, SB 5323 excluding pension and other "fringe" benefits from being used to calculate benefits and the business-sponsored SB 5378 that deeply cuts injured worker benefits; House Commerce & Labor at 1:30 p.m. will hear HB 1065 establishing apprenticeship utilization requirements for public works projects.

FRIDAY—Senate Commerce & Trade at 8 a.m. will hear SB 5036 on privatizing the sale of liquor and SB 5155 prohibiting strikes by educational employees.

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Next edition: MONDAY, FEBRUARY 3

Copyright © 2003  Washington State Labor Council, AFL-CIO