FRIDAY, MARCH 3, 2006
Unemployment Insurance compromise bittersweet

The extraordinary attack on unemployment benefits in 2003, spearheaded by Sen. Jim Honeyford (R-Sunnyside) and The Boeing Co. during the 2003 legislative session, was partially mitigated Thursday night with the passage of ESSB 6885. But the passage of the bill is bittersweet.

This bill restores the benefit calculation formula to the average of a worker’s two high quarters of income, using a 3.85 multiplier. Thirty-three states do better, using the single high quarter. But in order to restore two-quarter averaging, Washington workers must now accept a new lower multiplier -- prior to 2003, it was 4.0.

So workers are giving up $40-$50 million a year in benefits so that other workers don’t have to return to the pain and suffering that occurred under three- and four-quarter averaging between January 2004 and April 2005. Hundreds of families lost their homes and their life savings under that pernicious system, and so it is a very good thing that we have permanently restored the two-quarter model.

ESSB 6885 also restored “liberal construction” to the law. That means that in gray-area cases involving unique circumstances, the unemployed worker gets the benefit of the doubt. This tie-goes-to-the-worker liberal construction language is included in the UI laws of 44 states. It is part of the UI mainstream, L-word notwithstanding. In fact, ALL employment law is liberally construed, so removing liberal construction from the law in 2003 made absolutely no sense.

Finally, the bill allows spouses of military personnel transferred to another base to receive unemployment benefits if they cannot find work in the new location. This change was a no-brainer.

On the tax side, ESSB 6885 rewards the business community with more than $1 billion in cost savings, including taxing employers on a lower basis (four quarters) than that upon which benefits are paid (two quarters). This will save the business community a bundle, but also will create a lot of socialized cost. Go figure. We thought the goal was to reduce this.

Confusing the issue even further, the legislature gave up an opportunity to reduce socialized costs by incorporating language written by the Employment Security Department that would have clamped down on corporate fraud in the system. Some employers accept unemployment benefits for their owners while they continue working and keep the business going. This type of fraud just shifts cost onto honest employers. But ESSB 6885 failed to include the ESD language trying to address this corporate fraud.

But perhaps, the greatest tragedy of the bill was that it codified the remaining benefit cuts from 2003. This aspect of the bill renders moot a court challenge to the 2003 legislation, and constitutes a 
$200 million a year gift to the business community.

FRIDAY, MARCH 3, 2006
Legislators announce agreement on bipartisan UI reform bill

The following press release was distributed Thursday night by the House Democratic Caucus:

Landmark agreement announced on unemployment insurance bill

OLYMPIA -- A breakthrough was achieved today as Democratic and Republican leaders in the Senate and House of Representatives announced agreement on Senate Bill 6885 to make permanent changes in the way in which unemployment insurance benefits are calculated.

The House is expected to pass the measure this evening with changes agreed to by the Senate. The bill would then return to the Senate for concurrence before being sent to the governor for her signature.

Bill sponsor and chair of the Senate Labor, Commerce, Research & Development Committee, Sen. Jeanne Kohl-Welles, D-Seattle, praised her colleagues for their exceptional dedication to crafting a workable solution to a complex issue.

“We’ve spent countless hours individually with stakeholder groups and then collectively to strike a balance among so many interests and needs,” Kohl-Welles said. “None of us wanted to have to keep revisiting this issue year after year. We wanted an agreement that could work -- for our working people and for our employer community. I’m appreciative of the hard work of this group in developing a bill that we can all live with. This is one of the crowning achievements of the session.”

“This is an historic and balanced compromise on unemployment insurance,” said Rep. Steve Conway, D-Tacoma, chair of the House Commerce and Labor Committee. “In 2003, legislation was passed over labor’s objections. In ’05, business interests weren’t pleased with the end result. Today we have a bill that protects claimants as well as reduces taxes for business, and ensures a well-funded trust fund for the future.”

“All throughout these negotiations I’ve said that we needed to come to a compromise that takes us to a fair and equitable system,” said Sen. Linda Evans Parlette, R-Wenatchee, ranking Republican on the Senate Labor, Commerce, Research & Development Committee. “With leadership from legislators on both sides of the aisle, today we took a good first step to accomplishing that. I’m so pleased to see that all the hard work my colleagues and I dedicated to the Unemployment Insurance Task Force has culminated in this working compromise.”

“I’m proud of the work we did on this bill,” said Rep. Cary Condotta, R-East Wenatchee, ranking Republican on the House Commerce and Labor Committee. “All of us sat down at the table committed to come up with a workable solution. What came out of the negotiation was a rate structure that will create less subsidizing between rate classes and, most importantly, will stabilize rates for our state’s businesses. It’s a solution for all involved and a true bipartisan legislative effort.”

SB 6885 would retain the two-quarter averaging system put in place temporarily in 2005 as the basis for determining benefits. The bill’s primary features affecting benefits include:

• Two-quarter averaging, with an individual’s weekly benefit amount set at 3.85 percent of the average in the two quarters of the base year in which wages were highest, and

• Considering it good cause when a spouse’s mandatory military transfer causes relocation, regardless of the state to which the individual relocates. This provision would apply to new claims on or after July 2, 2006.

The bill makes several important changes to the way unemployment taxes are assessed to employers, including:

• Charging benefits as though the weekly benefit amount is 1 percent of wages in all four quarters of the base year, or charging at four quarters.

• Reducing social taxes when the unemployment insurance trust fund contains enough funding for 10 or more months of benefits.

• For seasonal industries such as agriculture, fishing and food processing, the maximum tax rate would be capped at 5.4 percent until January 2008, and then move to 5.7 percent.

In addition, the bill calls for the state Employment Security Department to look into the issue of repeat episodes of unemployment, enhanced job search requirements, employer turnover and the prevention of corporate fraud. Findings and recommendations would be reported to committees of the Legislature by Dec. 1, 2006.

FRIDAY, MARCH 3, 2006
Lawmakers OK apprenticeship utilization at state DOT projects

THURSDAY, MARCH 2, 2006
House protects FMLA from Bush administration tampering

SB 6185, codifying the federal Family and Medical Leave Act into state statute, passed the State House of Representatives on a 54-44 vote Wednesday. Having already passed the State Senate, it now heads to Governor Christine Gregoire's desk for signature. Strongly supported by the Washington State Labor Council, this bill will protect workers in Washington from the impending tampering of the popular FMLA law by the Bush administration. (Learn more.)

Following are some WSLC-supported bills mentioned in Tuesday's WSLC Legislative Update that passed on Wednesday, and their roll-call votes:

SB 6185 codifying the federal Family and Medical Leave Act into state statute.

Yeas: 54   Nays: 44   Absent: 0   Excused: 0

VOTING YES:  Representatives Appleton, Blake, Campbell, Chase, Clibborn, Cody, Conway, Darneille, Dickerson, Dunshee, Eickmeyer, Ericks, Flannigan, Fromhold, Grant, Green, Haigh, Hankins, Hasegawa, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kilmer, Kirby, Lantz, Linville, Lovick, McCoy, McIntire, Miloscia, Morrell, Morris, O'Brien, Ormsby, Pettigrew, Quall, Roberts, Santos, Schual-Berke, Sells, Simpson, Sommers, Springer, Sullivan, B., Sullivan, P., Takko, Upthegrove, Wallace, Williams, Wood, and Mr. Speaker.

VOTING NO:  Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Buck, Buri, Chandler, Clements, Condotta, Cox, Crouse, Curtis, DeBolt, Dunn, Ericksen, Haler, Hinkle, Holmquist, Jarrett, Kretz, Kristiansen, McCune, McDermott, McDonald, Moeller, Murray, Newhouse, Nixon, Orcutt, Pearson, Priest, Roach, Rodne, Schindler, Serben, Shabro, Skinner, Strow, Sump, Talcott, Tom, Walsh, and Woods.

SB 6236 moving up the state primary election to August.

Yeas: 94   Nays: 3   Absent: 0   Excused: 1

VOTING YES:  Representatives Ahern, Alexander, Anderson, Appleton, Armstrong, Bailey, Blake, Buck, Buri, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cox, Crouse, Curtis, Darneille, DeBolt, Dickerson, Dunshee, Eickmeyer, Ericks, Ericksen, Flannigan, Fromhold, Grant, Green, Haigh, Haler, Hankins, Hasegawa, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kilmer, Kretz, Kristiansen, Lantz, Linville, Lovick, McCoy, McCune, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roberts, Rodne, Santos, Schindler, Schual-Berke, Sells, Serben, Shabro, Simpson, Skinner, Sommers, Springer, Strow, Sullivan, B., Sullivan, P., Sump, Takko, Talcott, Tom, Upthegrove, Wallace, Walsh, Williams, Wood, Woods, and Mr. Speaker.

VOTING NO:  Representatives Dunn, Kirby, and Roach.

Excused:  Representative Campbell.

SB 6411 allowing six-year collective bargaining agreements.

Yeas: 74   Nays: 24   Absent: 0   Excused: 0

VOTING YES:  Representatives Alexander, Appleton, Blake, Buri, Campbell, Chase, Clibborn, Cody, Conway, Cox, Crouse, Darneille, DeBolt, Dickerson, Dunshee, Eickmeyer, Ericks, Flannigan, Fromhold, Grant, Green, Haigh, Haler, Hankins, Hasegawa, Hinkle, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kilmer, Kirby, Lantz, Linville, Lovick, McCoy, McCune, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Nixon, O'Brien, Ormsby, Pettigrew, Priest, Quall, Roach, Roberts, Santos, Schual-Berke, Sells, Simpson, Skinner, Sommers, Springer, Strow, Sullivan, B., Sullivan, P., Takko, Tom, Upthegrove, Wallace, Walsh, Williams, Wood, and Mr. Speaker.

VOTING NO:  Representatives Ahern, Anderson, Armstrong, Bailey, Buck, Chandler, Clements, Condotta, Curtis, Dunn, Ericksen, Holmquist, Kretz, Kristiansen, Newhouse, Orcutt, Pearson, Rodne, Schindler, Serben, Shabro, Sump, Talcott, and Woods.

HB 1226 extending campaign contribution limits to judicial races. Passed amended version.

Yeas: 36   Nays: 11   Absent: 0   Excused: 2

VOTING YES:  Senators Benson, Berkey, Brandland, Brown, Deccio, Delvin, Doumit, Eide, Esser, Finkbeiner, Franklin, Fraser, Haugen, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Pflug, Prentice, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Swecker, Thibaudeau, and Weinstein.

VOTING NO:  Senators Benton, Carrell, Fairley, Hargrove, Hewitt, Honeyford, Mulliken, Parlette, Poulsen, Pridemore, and Zarelli.

Excused:  Senators Oke and Stevens.

HB 2572 establishing the Small Employer Health Insurance Partnership Program. This bill supported by the Fair Share Health Care Coalition was amended in such a way that the WSLC cannot support the new version. Among other things, the Republican-sponsored amendments supported Health Savings Accounts, weakened or eliminated regulatory authority of the Office of Insurance Commissioner, and allowed for substandard health care coverage by eliminating coverage standards. The amended bill passed 42-5 and now must return to the House, where the WSLC will oppose the amendments.

HB 2780 authorizing PAC payroll deductions for state employees.

Yeas: 37   Nays: 9   Absent: 1   Excused: 2

VOTING YES:  Senators Benson, Benton, Berkey, Brandland, Brown, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Sheldon, Shin, Spanel, Swecker, Thibaudeau, Weinstein, and Zarelli.

VOTING NO:  Senators Carrell, Finkbeiner, Hewitt, Honeyford, Morton, Mulliken, Parlette, Pflug, and Stevens.

Absent:  Senator Schmidt.
Excused:  Senators McCaslin and Oke.

HB 3185 creating an administrative remedy for collection of back wages owed to workers. Passed 46-0.

WEDNESDAY, MARCH 1, 2006
Legislative floor action fast and furious; cutoff this Friday

Following are some WSLC-supported bills mentioned in Tuesday's WSLC Legislative Update that passed last night:

HB 2353 providing collective bargaining for child care workers.

Yeas: 40   Nays: 8   Absent: 0   Excused: 1

VOTING YES:  Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Delvin, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hargrove, Haugen, Hewitt, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Oke, Parlette, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein, and Zarelli.
VOTING NO:  Senators Deccio, Honeyford, Jacobsen, McCaslin, Morton, Mulliken, Pflug, and Schoesler.
Excused:  Senator Finkbeiner.

HB 2789 promoting apprenticeship.

Yeas: 42   Nays: 2   Absent: 0   Excused: 5

VOTING YES:  Senators Benson, Berkey, Brandland, Brown, Carrell, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Haugen, Hewitt, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Mulliken, Oke, Parlette, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein, and Zarelli.
VOTING NO:  Senators Honeyford and Morton.
Excused:  Senators Benton, Delvin, Hargrove, McCaslin, and Pflug.

HB 2684 allowing vesting in public employee pensions after 5 years' service. 
It passed 45-0.

TUESDAY, FEBRUARY 28, 2006
Contact new 13 Coins owners; urge them to keep the contract!

The following memorandum was distributed last week by UNITE HERE! Local 8:

Dear friends of the 13 Coins:

Seattle's 24 hour fine dining restaurant and long standing Union establishment with locations in South Lake Union and SeaTac has been sold.

• Employees have to re-apply for their jobs in order to continue working under new ownership. No positions have been ensured, not even for loyal long-term employees.
  

• UNITE HERE! Local 8 has reached out to the new owners. We have not received a response in over a month.

Please support 13 Coins workers:
Please write a letter of support for the workers demanding from the new owners to rehire all current employees and keep the Union contract.

Direct your letter to the new 13 Coins owners. However, because they still have not provided us with an address, please send them to:

UNITE HERE! Local 8
Attn: Stefan Moritz
2800 First Avenue, Ste. 3
Seattle, WA  98121
FAX: (206) 728-9772

We will forward them to the appropriate person at the new 13 Coins as soon as possible.

Thank you for your support,

Rick Sawyer
Secretary Treasurer
UNITE HERE! Local 8

MONDAY, FEBRUARY 27, 2006
Many CTW unions rejoin WSLC; others urged to sign Charters

A number of local unions that are part of the Change to Win Coalition have signed AFL-CIO Solidarity Charters and rejoined the Washington State Labor Council, AFL-CIO with full voting rights. Among the returning unions are WPEA/UFCW 365; UFCW Locals 21, 81 and 44; UNITE HERE Local 8; SEIU Local 925; Teamsters Locals 117 and 252. Some other CTW unions have successfully received Charters, but have yet to begin paying per capita.

"I am very pleased to welcome back our Brothers and Sisters at CTW unions," said WSLC President Rick Bender. "I urge other CTW unions to apply for Charters so that together we can rebuild and improve the WSLC, making our state federation an even more effective advocate for Washington’s working families. "

Chartered CTW union locals pay the same per capita fees as they did prior to their international union’s disaffiliation from the AFL-CIO, and maintain the same rights and obligations as other affiliates, including participation in WSLC governance and affairs, and eligibility of their members to hold WSLC office. 

If you or your union's leadership have any questions regarding Solidarity Charters and how they work, check out the Charter explanation at AFL-CIO website, where you can also download a description (PDF) of the Charter application process and a Charter application form (PDF). If you have other questions, call the WSLC's Seattle office at (206) 281-8901 or 1-800-542-0904.