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UPDATED DAILY -- M-F by 9 a.m.

Links to press stories are functional at the date of posting.  In some cases, free registration is required at newspapers' sites.  Links sometimes "expire" when the source would like to begin charging for old news. WSLC Reports Today  links to all stories of interest to organized labor; some positive, some negative. The intention is to inform. The creation of a link does not constitute an endorsement of that story's content.



Reports for
January 3-7, 2005

Previous weeks' news: Dec. 13-14 -- Dec. 6-10 -- Dec. 1-3

FRIDAY, Jan. 7 -- Tell your legislators to certify election; rally on Tuesday in Olympia
— In today's Olympian -- Transition takes shape as Gregoire adjusts to tough ride to the top -- The Governor-elect says she is looking beyond legal actions and preparing to announce a new budget director today. Other staff appointments could be announced early next week.
— In today's Tri-City Herald --
Prove election fraud or silence allegations (Not as catchy as Sue or Shut Up but it'll do) -- Editorial: Common decency dictates that proof comes before finger-pointing. Absent evidence of fraud, the allegations should stop. The sooner the better, before more damage is done.
— In today's Seattle Times --
GOP expected to file suit over Gregoire win -- "Where's Dino?" state asks, as former Sen. Slade Gorton says the Republican legal challenge offers a "compelling argument." Shortly after the election, GOP Boss Vance said, "I hope (Democrats don't) start suing everywhere about everything... John Kerry did the right thing by not suing. Slade Gorton did the right thing (in 2000) by not suing." (This Election Hypocrisy Watch™ is like shooting fish in a barrel.)
— In today's Seattle P-I --
Vance: "I see dead people... voting" -- Boss says it will be part of party's challenge. BIAW says it will also file a challenge, claiming felons illegally voted in Pierce County.
...plus --
"I want you to vote for me," dying wife said -- So husband complies, voting for Rossi & Bush.
Other local news: — In the (Centralia) Chronicle -- Unions continue to have big role in local economy
— In today's Tri-City Herald --
Tyson to idle about 400 Wallula workers (IBT 556)
— In today's Seattle P-I --
Now in control, Democrats say they must talk about taxes -- "Is it really fair to fund government on the backs of (state) employees?" asks budget leader Sen. Margarita Prentice.
— In today's Everett Herald --
Boeing production pipeline filling up; deals inked for 30 jets in past 10 days
— Today from Bloomberg News --
Struggling Continental Airlines may cancel Boeing 7E7 order
National news: — Today from the AP -- Woes piling up for airline employees -- Pressuring workers for concessions is about the only way to save large chunks of money in an industry where many of the costs, like aircraft leases, fuel and landing fees are essentially fixed, with little room to haggle.
— In today's NY Times --
Social Security benefit plan costs Bush a key Democrat -- "I seriously doubt I'm going to be the linchpin this time," says Sen. Baucus who backed Bush on tax cuts and Medicare.
...plus --
Pension agency is about to get rescue plan -- Plan to save ailing PBGC is said to include charging higher premiums to companies that pose greater risks, tightening the funding rules and requiring companies to give employees more information about the health of their pension plans.
...plus --
CEO was paid millions, and he never notice the fraud? -- The dummy defense worked, and the era of the former CEO who remembers doing virtually nothing to earn his millions is upon us.


THURSDAY, Jan. 6 -- Memo to Dino "Do-Over" Rossi: SUE OR SHUT UP
— Today from the AP -- Democratic legislators dismiss bid for revote in governor's race
— In today's News Tribune --
Governor's mess stump ya? Check the Constitution -- Callaghan column: The Legislature will have what likely will be an emotional and bitter debate over an emotional and bitter election. It will be fascinating but meaningless. The law says challenges are conducted not in a joint session of the House and the Senate, but in the courts.
— In today's Seattle P-I --
Healers or spoilers -- Editorial: "We don't know who won the election, and we never will," insists House Minority Leader Bruce Chandler, R-Granger. That's nonsense, unless Chandler and the Republicans have turned their back on the rule of law in favor of situational ethics.
— In yesterday's Columbian --
No "mystery" here -- Clark County's Republican auditor calls GOP boss Vance "irresponsible" for claims that the so-called mystery votes are a sign of voter fraud.
— In today's Seattle Times --
Lighting up the phone lines with a "we-were-had" lament (Balter column)
Other local news: — In today's Seattle Times -- Study says Washington ranks 42nd in school spending
— In today's King County Journal --
Gas tax increase unlikely this session, legislators say
— In today's Everett Herald --
Boeing poised for more deliveries -- A strong fourth quarter enables the company to hit its 2004 goal, but delivery of Everett-built jets is down from 2003.
— In today's Seattle P-I --
Don't mess with success -- Editorial: Social Security is, perhaps, the most successful government program in history. It could always be improved, but not by reshaping it as a government-run individual retirement account.
— In today's King County Journal --
Redmond police officers sue city over back wages
— In today's Yakima H-R --
Expansion at aircraft maker Cub Crafters could mean 100 new jobs
National news: — In today's NY Times -- GOP divided as Bush views Social Security -- Some Republican want bigger private accounts but no benefit cuts, preferring another sharp spike in deficit spending to a political risk. Says Gingrich: "Anything that changes benefits on an involuntary basis will allow the Democrats, the AARP and the unions to beat our brains in. It isn't politically doable."
— In today's SF Chronicle --
Hotel talks resume, but union leader says agreement is long way off
— In today's News Tribune --
US Airways flight attendants approve 10% pay cut


WEDNESDAY, Jan. 5 -- Ottilie Markholt Memorial Celebration will be Jan. 30 in Fife
— In today's Seattle P-I -- 10 years ago today, four perished in Pang blaze -- Memorial service at 1 p.m.
— In yesterday's Daily News --
At $7.25, Oregon's minimum wage is now No. 2 (behind WA's $7.35) 
— In today's Everett Herald --
Boeing still looks for key 7E7 deal -- Corliss column: Analysts say industry bellwether Singapore Airlines would be the perfect customer for Boeing to land.
...plus --
Can't-stop-him attitude -- A profile of longtime Carpenters Union activist Jerry Otis and his program to build wheelchair ramps at the homes of people who need them but can't afford them.
...plus -- Stanwood faces a fight as proposed Wal-Mart stirs protest
Election news: — In today's Yakima H-R -- Election recounts are over, and it's time to move on (editorial)
— In today's News Tribune -- Hold cries of fraud in governor's race -- Editorial: Voter list discrepancies, by themselves, are far from being evidence of fraud.
— In today's Seattle Times -- Election played out the way law intended -- Op-ed by WWU professor: (Republicans may) challenge the election on grounds of fraud or malfeasance. Simple election errors, which took place in several counties in addition to King, normally would not be sufficient; connivance or purposeful act is needed to define fraud. But Republicans will do all of us a favor if they take their charges to court, rather than running a four-year campaign of innuendo and slander.
— In today's Bellingham Herald --
Gregoire seeks unity, cooperation; GOP may seek to block ratification
— In today's Olympian --
Rancor grows over recount -- "Rancor" is defined as 100 people stirred up by a couple of right-wing radio talk show hosts to protest mishandled military ballots. (Is this what GOP boss Vance was predicting when he said people would "take to the streets" if Gregoire wins?) But the GOP Secretary of State Sam Reed says there's no evidence of problems with the military vote.
— In today's Seattle Times -- Election scrutiny reveals provisional-vote flaws -- Talk show hosts plan rally.
Social Security news: — In today's Seattle Times -- Bush plan would chop benefits -- President's privatization plan would cut promised benefits by almost half by 2075, say Republican sources.
— In today's LA Times --
Social Security battle likely -- In a possible setback to White House efforts, two Democratic centrist groups plan to take a stand against individual investment accounts.
— In today's Washington Post --
Bracing for battle, Bush likely to move slowly on Social Security
— In today's NY Times --
No pain, no savings -- Op-ed: To achieve bipartisan support for any change in Social Security, President Bush must ask the richest Americans to share the burden.
...plus -- Choose and lose -- Op-ed: Arguments for privatization are dubious, disingenuous, or both.


TUESDAY, Jan. 4 -- State workers' comp rates rank in lowest one-third in the U.S.
— In today's Bellingham Herald -- WWU faculty turn in union pledge cards; about 700 in bargaining unit
— In today's Seattle P-I --
Orders for 7E7 fail to reach Boeing's goal
— In the P.S. Business Journal --
State sees better times ahead for manufacturing jobs
— In today's Oregonian --
I-695 fallout continues as C-Tran riders brace for service cuts, fee increases
— In today's Peninsula Daily News --
Transportation secretary meets with business, labor re: graving yard
— In today's Bremerton Sun --
Port Townsend, paper mill making pitch for Hood Canal Bridge work
— In the Columbia Basin Herald --
State minimum wage increases by 19 cents
— Today from the AP --
IBU labor dispute may halt Alaska catamaran ferry
Political news: — In today's Seattle P-I -- Rossi given fresh hope as list of "mystery voters" grows
...plus --
Get on with governance -- Editorial: Partisans should tone down the "mystery voter" rhetoric and remember the obligation to get on with the people's business. The only mystery here is how partisans expect to pump these rather routine voter list discrepancies into accusations of fraud.
— In today's Yakima H-R --
Hoping for new vote, House GOP will seek delay in ratification of results
— In today's King County Journal --
Newly elected state legislator resigns his Kirkland council seat -- Larry Springer said committing time to the Legislature would prevent him from doing justice to the job of a city councilman. Sen. Tim Sheldon, on the other hand, says he intends to keep his Senate seat after being elected to the full-time position as Commissioner of Mason County (which doesn't have a chef).
National news: — In today's Washington Post -- AFL-CIO chief facing challenges from labor's left
...plus --
To finance privatization, Bush looks to cut initial Social Security benefits by nearly one third
— In today's N.Y. Times --
Stopping the bum's rush -- Krugman: The people who hustled America into a tax cut to eliminate an imaginary budget surplus and a war to eliminate imaginary weapons are trying another bum's rush. If they succeed, we will do nothing about the real fiscal threat and will instead dismantle Social Security, a program in much better financial shape than the federal government.
— In today's Washington Post --
US Airways mechanics not hopeful, walkout possible if contract voided


MONDAY, Jan. 3 -- BIAW threatens to file right-to-work initiative in Washington state
— From the AP -- Gregoire: 1,373,361; Rossi: 1,373,232; Having a governor-elect: priceless
— Sampling of editorials urging Rossi to stop "revote" campaign, and offer evidence of fraud or concede:
Columbian, Everett Herald, News Tribune, Olympian, Seattle P-I, Seattle Times and Spokesman-Review.
— In today's Seattle P-I --
Missing rushing title by 1 yard, Seahawks RB won't concede, seeks "do-over"
— In the Seattle Weekly -- The Republicans blow it -- The Democrats won the final recount for governor by playing the game better. Now the GOP's best and maybe only hope is litigation.
— In today's Seattle Times --
Republican Sam Reed faces GOP wrath over recount decisions
...plus yesterday --
Liberals hope Gregoire will repay them for support during recount
Obituary: — In the Tri-City Herald -- David E. Williams -- Williams served on the Executive Board of the Washington Federation of Labor and the WSLC following the merger in 1957.
Other local news: — In Sunday's Tri-City Herald -- Minimum wage is maximum issue for some -- Yet another story focusing on the impact on business owners, as opposed to minimum wage workers.
— In Sunday's Columbian --
More than a minimum wage -- Editorial opposing indexing. Learn more.
— In the News Tribune --
Seattle firefighters flex muscle -- Editorial opposing initiative to improve staffing.
...plus -- Fife eyes bigger, for-profit jail -- But the mayor and others are skeptical of consultant's plan.
— In the P.S. Business Journal --
Ferry builders vie for $200M job -- To get around the state law requiring boats be built in Washington, the WSF is bidding the propulsion system separately to venders nationwide. The WSF says the main reason for doing so is to qualify for federal funding.
— In the Seattle P-I --
Newspaper Guild retains support for two-newspaper group in Seattle
...plus --
Wal-Mart's women -- employees and customers -- in an unhealthy relationship (op-ed)
— In today's Bellingham Herald --
Health-care costs spur local movement to reform system -- Doctors and business people lead group to push medical malpractice reform and health savings accounts.
National news: — In the News Tribune -- Social Security looms large this year for state delegation
— In today's NY Times --
The Social Security fear factor -- Rather than privatizing Social Security out of existence, we should strengthen it with a modest package of benefit cuts and tax increases.
...plus -- The meek shall inherit the bill -- Give Bush credit: his agenda will force a national debate about the vexing financial problems that loom in the decades ahead. But on closer inspection, much of the agenda follows a familiar path: borrowing today and leaving the bills for future generations.
...plus on Sunday -- NLRB critics see bias against workers -- Academic experts on labor relations say the recent rulings are so hostile to unions and to collective bargaining that they run counter to the goals of the National Labor Relations Act, the 1935 law that gave Americans the right to form unions.


Previous weeks' news: Dec. 13-14 -- Dec. 6-10 -- Dec. 1-3

FRIDAY, JANUARY 7
Tell your legislators to certify election; Olympia rally Tuesday

On Tuesday, Jan. 11, the legislature will vote to certify the election. Republicans have mounted an effort -- which includes a misleading radio advertising campaign -- to pressure legislators to undo the results of this election. Here's what you can do to stop this nonsense:

Call the Legislative Hotline right now at 1-800-562-6000. Leave a message for all of your legislators to do the right thing, stand up to the irresponsible rhetoric, do their duty and certify the election on Tuesday.  If there is evidence of election fraud, that's for the courts to decide.  The Republican Secretary of State and county auditors from both parties are satisfied the result it correct and that Christine Gregoire won.  It's time to get on with the business of moving our state forward.

Attend a rally Tuesday, Jan. 11 at the Capitol in Olympia. Join us at 10:30 a.m. that day as well send a message to minority Republicans to stop trashing this election and join Christine Gregoire in moving this state forward.

THURSDAY, JANUARY 6
Memo to Dino "Do-over" Rossi: SUE or SHUT UP

CALL TO ACTION

On Tuesday, the legislature will vote to certify the election. Republicans have mounted an effort, which includes an ad campaign, to pressure legislators to undo the results of this election. Here's what you can do to stop this nonsense:

Call the Legislative Hotline right now at 1-800-562-6000. Leave a message for all of your legislators to do the right thing, stand up to the irresponsible rhetoric, do their duty and certify the election on Tuesday. It's time to get on with the business of moving our state forward.

Attend a rally Tuesday, Jan. 11 at the Capitol in Olympia. Join us at 10:30 a.m. that day as well send a message to minority Republicans to stop trashing this election and join Christine Gregoire in moving this state forward.

Enough is enough, Mr. Rossi.

Despite all your I'm-a-successful-businessman assurances that you can take or leave politics, you refuse to concede an election the law says you have lost.  Instead, you flout the law, you make wild accusations about "mystery voters" and fraud without evidence, you encourage conspiracy theories about a "stolen election," and try to bully your opponent into an unprecedented do-over election -- not provided for in state law -- so you can have another chance.

We know, we know.  It's Republican Party boss Chris Vance — not you — who's handling the unsavory, politically distasteful task of daily news conference "bombshells" and "outrages" about voting irregularities. But you, Mr. Rossi — and only you — have the power to call off your laughably hypocritical flip-flopping attack dog, and leave the "we were robbed" whining to talk radio where it belongs. Your consolation prize is that you will forever be the hero of these radio hosts and their faithful listeners so desperate for proof that they are victims of some liberal conspiracy.

Oh yeah, and you will preserve your dignity.

As you have been urged by just about every newspaper in the state -- supporters and opponents alike -- if you have evidence of election fraud, go to court.  That is your right, even your obligation, under the law.  Failing that, all this destructive hyperbole and selective outrage based on half-truths and innuendo serves no purpose other than to undermine the state government and all of the people who really won their elections.

Until a court says differently, Mr. Rossi, you are not one of the winners.  As your political party's denizens so nobly proclaimed as they impeached a president for lying about his sex life, "We are a nation of laws."  Unless you have sufficient evidence of fraud that our courts decide to throw out the election results, the law says you lost.  You are the loser.

Christine Gregoire is the winner after a transparent hand count, led by the Republican Secretary of State and observed by both parties. The election process and subsequent recounts followed state law, and that law  -- which you supported when you were a state senator -- says the hand count is the final count.  You lost.

As it turns out, you never should have been declared winner in the previous machine counts.  Had King County election workers not mistakenly -- and illegally -- excluded legitimate ballots in the first place, Gregoire would have been rightfully declared winner all along.  Isn't it the Democrats who deserve to be outraged at King County's screw-up that (almost) cost them $700,000 and is now being used by you and your party to question the legitimacy of the real governor-elect?

Instead, it is you and Boss Vance who have both taken the low road, questioning the competence and impugning the character of King County election officials and those of other counties. You sit silently as your party operatives imply -- or explicitly accuse -- these election officials of botching or even stealing the election.

Votes have been checked, double-checked and triple-checked under the watch of thousands of Democratic and Republican county auditors, observers and elections officials, giving ample opportunity for counties to correct any errors.  Yes, mistakes happened.  But both parties had an opportunity to analyze those mistakes, challenge ballots counted or excluded, and argue in court why those mistakes should be corrected.  Both parties celebrated victories and suffered setbacks in those legal challenges.

But now the time is up. The Republican Secretary of State and county auditors of both parties have certified and publicly expressed confidence in the results.  You lost.

When it didn't suit your political interests, you and your party operatives didn't give a crap about election irregularities and potential mistakes you now cite daily as "bombshells."  For example, where were the partisan election volunteers you trotted out yesterday -- the ones who say they witnessed "hundreds" of King County provisional ballots improperly placed in tabulation machines -- when you were ahead in the count?  Apparently, your party didn't want to risk undermining public confidence in the election when you were ahead.

And what time today can we expect your "bombshell" news conference about Anne M. Witte from your hometown of Sammamish, who somehow cast her ballot despite dying in February?  (See story at SoundPolitics.com.)  Given that her obituary describes her as an "active Republican," we won't hold our breath waiting for that one.

Unfortunately for you, the time to call attention to possible mistakes, and have them corrected, has come and gone.  The election result has been certified, and you lost. 

We can understand how frustrating it must be to lose an election by such a small margin, but as you pointed out when you were erroneously declared the winner, "The election is over. It's time to move forward."  Instead, you have asked for a do-over election.  The governor-elect has declined, and Democratic leaders who control both houses of the state legislature say it won't happen.

That leaves you two honorable alternatives: Take your case to court or concede the election.

If you allow your party to continue trying to undermine public confidence in the law and in the state government, you bear the responsibility for that dishonorable course of action.  Clearly, your party bosses appear happy to continue on this course.  Having lost additional seats in the State House of Representatives and control of the State Senate, they are demonstrating that they would rather be "pouting obstructionists" (as one Seattle newspaper put it) than a minority party of honorable opposition.

You have the opportunity to preserve your dignity and demonstrate your respect for the rule of law.  If you allow your party to continue on this destructive course on your behalf, that opportunity will be gone.

P.S.  You lost.

WEDNESDAY, JANUARY 5
Ottilie Markholt Memorial Celebration will be Jan. 30 in Fife

The following invitation has been distributed by Patty Rose, Secretary-Treasurer of the Pierce County Central Labor Council and Vice President of the Washington State Labor Council:

Ottilie Markholt, a staunch friend of Organized Labor, longtime delegate to the Pierce County Central Labor Council, AFL-CIO, the unofficial labor historian for Pierce County and a sixty-year member of the Office and Professional Employees Union, Local 23, passed away on Thanksgiving Day, November 25, 2004, following a short illness.

Sister Markholt was extremely active in the Pierce County Central Labor Council, AFL-CIO and the Pacific Northwest Labor History Association.  She edited To Live in Dignity, a book containing a history of many of the labor unions in Pierce County, and authored Maritime Solidarity:  Pacific Coast Unionism, 1929-1938.  Both the current and past activities of Sister Markholt are too numerous to mention, but she has been an invaluable member of the Pierce County Labor community for many decades.

A Memorial Celebration in honor of Sister Markholt will be held on Sunday, January 30, 2005, and you are invited and/or a representative from your organization are invited to attend.  The specifics on the Memorial Celebration follow: 

Date:   Sunday, January 30, 2005

Place:  Longshore Local 23 Hall
            1306 Alexander Avenue E.
            Fife, WA 98424

Time:   Social Hour:  6:00 p.m.
            Program:  6:30 p.m. – 8:00 p.m.

The program will include commemorations of Sister Markholt’s  contributions to Organized Labor and the presentation of a commendation from former Governor Gary Locke.

There will be a buffet featuring heavy hors d'oeuvre and a no-host bar supplied by a 100% union house, The Seafarers Sports Bar and Grill in Tacoma. 

If you would like to make a donation toward the expenses for this event, please send it to the Pierce County Central Labor Council, AFL-CIO, noting that it is for the Ottilie Markholt Memorial Celebration.  Any proceeds from the event will go into our Education Fund to honor Sister Markholt’s long history of support for labor education.

Please advise Marcia Williams at the Pierce County Central Labor Council, AFL-CIO, (253-473-3810) by the end of the workday, January 26, 2005, if you plan to attend this important event, as we will need an approximate attendance count for the caterer.

We hope to see you at this event, to help celebrate the life and contributions of Sister Markholt, who’s passing will be a major loss, not only to  the Pierce County labor community, but to all of organized labor.

TUESDAY, JANUARY 4
State workers' comp rates rank in lowest one-third in the U.S.

Contrary to the claims of business lobbying groups, Washington's workers' compensation rates rank in the lowest third in the nation, according to the new biennial state-by-state rankings by the Oregon Department of Consumer and Business Services. The study is often cited in the insurance industry as an authoritative gauge of workers' compensation rates nationwide.

In fact, if employer cost savings not taken into account by the study are considered, Washington offers some of the least expensive workers' compensation coverage in the United States. The 2004 state-by-state rate rankings place Washington 35th but, in terms of cost to employers, our state ranks even lower because Washington is the only state in the nation where workers pay a portion of the premiums. If you remove that portion of the rates, Washington ranks 44th with only five states offering cheaper coverage to employers.

In addition, the Oregon study does not take into account the millions of dollars in refunds that Washington's employers receive through the state's popular Retrospective Rating Program.

After significant rate increases were imposed in 2002 and 2003, business lobbying groups sought to portray Washington's workers' compensation system as expensive and too generous in benefits to injured workers. As state lawmakers have focused on ways to improve Washington's "business competitiveness," these groups have sought legislation to lower rates by cutting benefits.

The latest Oregon study confirms what previous independent performance audits of Washington's system have found, that Washington is very competitive in this area because its state-run system provides good benefits while keeping costs low for employers. In fact, there is evidence that some employers have decided to relocate to Washington because they can save significant money on workers' compensation.

"As they say, the grass is always greener on the other side of the fence," said Rick Bender, President of the Washington State Labor Council, AFL-CIO. "If employers in Washington are frustrated with what they have to pay for workers' compensation, they should take a look they would pay in other states. The truth is, our state-run system is still a bargain."

The 2002 and 2003 rate increases were preceded by eight consecutive years of no rate increases. In 1999 and 2000, despite labor's opposition, the state issued $400 million in workers' compensation rebates. Had those ill-advised rebates not been issued, only small inflationary annual increases would have been necessary, avoiding the 2002 and 2003 rate spikes.

Business lobbying groups will again seek a package of workers' compensation "reform" bills in the 2005 legislative session beginning next Monday. They will include some of the changes sought in the 2004 initiative filed by the Building Industry Association of Washington. Ultimately, the BIAW abandoned its effort after other business groups refused to support their initiative.

The Washington State Labor Council also filed a 2004 initiative articulating changes that would make the system more fair for injured workers. The WSLC and its allies chose not to collect signatures and to await election results to better assess the possibility of pursuing reforms during the 2005 legislative session. That initiative may be resubmitted to put it on the November 2005 ballot.

"Although Washington state has a model system in terms of low costs to employers and relatively good benefits, there are several ways the system can be improved for the injured workers," said Bender. "That's why many of our affiliates and allies would like to join us in pursuing an initiative to make Washington's system even better."

Following is a press release on the Oregon rate study distributed last week by the state Department of Labor and Industries:

TUMWATER -- A new rate-comparison study shows that workers' compensation rates in Washington remain among the lowest in the nation.

The 2004 "Workers' Compensation Premium Rate Ranking" study by the Oregon Department of Consumer & Business Services shows Washington at 35th. That means 33 states and the District of Columbia had higher workers' compensation rates in 2004 than Washington and only 16 states had lower rates.

If you remove the portion of the premium paid by workers in Washington, the state ranks 44th in terms of net cost to employers. Washington is the only state in the nation in which employees pay a portion of the premiums.

"Our rates remain in the bottom third in terms of cost compared with other states, and our benefits remain among the best in the nation," said Paul Trause, director of the Washington Department of Labor and Industries (L&I), which runs the state's workers' compensation system. "I believe we continue to be a good buy for employers and good insurance for employees."

Trause noted that the Oregon study, conducted every two years since 1986, is often cited in the insurance industry as an authoritative gauge of workers' compensation rates nationwide.

Washington's average State Fund premium ranking of 35th in 2004 compares with 45th two years earlier - before premium increases in 2003 and 2004. The new Oregon study does not include a 3.7 percent rate increase announced by L&I for 2005. Trause noted that he expects the limited premium increase in 2005 to compare well with other states and, in fact, to enhance Washington's overall ranking.

Trause said Washington's rates remain in the bottom one-third because of low administrative costs and because investment income is used to defray approximately one-third of the benefit costs.

Even with the workers' share of the premium included, Washington's ranking is better than Idaho's at 34th, Montana's at 8th and Alaska's at 2nd, and close to Oregon's at 42nd.

For media information, contact Steve Pierce, L&I, 360-902-5412 or piet235@LNI.wa.gov.

MONDAY, JANUARY 3
BIAW threatens right-to-work initiative in Washington state

The Building Industry Association of Washington, a politically conservative and notoriously aggressive lobbying group for homebuilders, is threatening to file an initiative to impose so-called "right-to-work" laws designed to weaken and bust unions in Washington state.

If successful, Washington would no longer be a "free bargaining state" and workers would be banned from negotiating contract provisions that insist all employees covered by a union contract join the union. The 22 states that have right-to-work laws -- mostly in the South and Great Plains -- have dramatically lower rates of union representation. As a direct result, right-to-work states also have lower average wages and far fewer workers with health insurance coverage, among many other things.

"While the BIAW has focused its political efforts toward making the business climate better in Washington," writes the BIAW's Tom Kwieciak in the organization's most recent newsletter, "we've yet to attack the heart of the WSLC or the labor movement in Washington. The time has come to take our fight directly to the unions in this state."

Why would the BIAW, which represents contractors in an industry that is largely nonunion, be so motivated to finance a right-to-work initiative? Two reasons. 

Because they can. They have millions of dollars a year to spend on initiatives and political contributions thanks to a loophole in state workers' compensation laws that allows them to skim 20% of their members' premium rebates. They have used this cash cow to finance a series of successful initiatives and candidates. (Learn more.)

The second reason is the BIAW feels that loophole is in jeopardy of being closed, a change unions have sought for more than a decade. After the BIAW filed a 2004 initiative to "reform" the workers' comp system, the Washington State Labor Council responded by filing its own initiative articulating changes designed to make the system fairer for injured workers. The WSLC measure included a provision to send premium rebates directly to the employers who earned them rather than funneling them through business groups like BIAW that skim the refunds to finance partisan political programs.

Ultimately, neither organization collected the signatures necessary to get the initiatives to the legislature. The BIAW abandoned its effort after other business groups refused to support their initiative. The WSLC and its allies chose to await election results to better assess the possibility of pursuing reforms during the 2005 legislative session (which begins next Monday), but may refile the initiative this month and collect signatures to put the measure on the November 2005 ballot.

The legislature and governor's office will now be controlled by Democrats who are sympathetic to the concerns of injured workers and many of whom were the targets of aggressive political attacks by the BIAW during the 2004 election. So apparently the BIAW senses its political cash cow is in jeopardy and blames the WSLC and organized labor rather than its own aggressive political tactics. Although they have yet to formally do so, they say they will file a right-to-work initiative.

"BIAW is ready to begin attacking our enemies in organized labor where it hurts them the most (and where they are trying to hurt us) -- in the pocketbook," writes Kwieciak.

If you have news items regarding unions or workplace issues in Washington state that you would like to see posted here, please submit them via e-mail to David Groves or via fax to 206-285-5805.

Copyright © 2005   Washington State Labor Council, AFL-CIO