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Reports for July 16-20, 2001
News from previous weeks:
July 9-13 -- July
2-3 -- June 25-29
FRIDAY,
July 20 -- Bush issues "sky is falling"
Social Security report
At AFLCIO.org -- Calls
flood Congress to vote "No" on Fast Track
Transportation news:
— In today's Seattle Times -- Deal
to fix gridlock unravels
— In today's Olympian -- Lawmakers
modify transportation tax plan
...and also -- Farmers
vs. freeways in battle for better roads
— In today's News-Tribune -- A
tough, critical vote on transportation (editorial)
— In today's Bellingham Herald -- Traffic
fix needs united front (editorial)
Other news:
— In today's Everett Herald -- Boeing
white-collar workers reject IAM
— In today's News-Tribune -- $7
million in disaster aid urged for farms
...and also -- Tacoma
police union seeks extra pay for officers
— In today's Tri-City Herald -- Senate
OKs Hanford clean-up money
— In today's WSJ -- Boeing
to sell military cargo planes to private firms
— In today's Vancouver (B.C.) Sun -- Union
leader order health care workers to stage illegal strike
— In today's S.F. Chronicle -- Kaiser
Permanente backs SEIU nurse plan
— Today from the AP -- Democrats,
unions work side by side (Leaked documents detail "extensive
discussions between labor and party leaders on how to contact, register and
influence voters to support Democrats and show where unions in some
instances drew their money to accomplish the mission.")
THURSDAY,
July 19 -- Prospects
grim for survival of safety grants
— In today's Seattle Times -- Transportation
deal struck, but will it fly?
— In today's Olympian -- Plan
to increase gas tax divides lawmakers
...plus -- Where
South Sound lawmakers stand on transportation plan
...and finally -- Insurance,
business groups oppose birth control plan
— In today's Seattle P-I -- Albertson's
to eliminate stores, jobs to cut costs
— In today's News-Tribune -- Despite
profits, Albertson's CEO plans closures
— In today's Seattle Times -- Alaska
Airlines may merge big-maintenance sites
— In the Seattle Weekly -- Hung
out and hanging in (re: Seattle Times strike fallout)
— In today's SCJ -- Count
today offers verdict on IAM drive at Boeing
— In today's Roll Call -- Boeing
sparks GOP ire by hiring Democrat lobbyist
— In today's Washington Post -- USPS
proposes management bonuses despite deficits
— In today's N.Y. Times -- In
U.S. unions, Mexico finds unlikely ally on immigration
— In today's S.F. Chronicle -- Mexico's
president ignores old-style labor repression
...plus -- Host
of 2008 Olympics sends union organizers' sister to labor camp
WEDNESDAY,
July 18 -- Performances
will celebrate Harry Bridges' 100th
...and a reminder -- Charleston
5 leader to appear locally tomorrow
— In today's Olympian -- Transportation
shares road with other issues
— In today's Everett Herald -- Jobs
are moving -- too bad traffic isn't (editorial)
— In today's News-Tribune -- Globe
Ticket closing Tacoma site (GCIU 747-M)
— In today's UW Daily -- English
Dept. switches grading method (re: TA strike)
— In today's Spokesman-Review -- Cantwell
chides Bush for absence (re: energy)
— In today's Seattle P-I -- County
budget cuts could hit home for working mothers
— In yesterday's Columbian -- Hispanics
like amnesty option
— In today's MSNBC.com -- Boeing
profits rise 27 percent
— In today's Seattle Times -- Contraceptive-coverage
regulation filed
...plus -- Llamas
make IBEW 77 member's dispute a hairy tale
— In today's Oregonian -- Safeway
joins union's boycott of Pictsweet Mushrooms
— In today's L.A. Times -- HERE
president seeks better coordination with 5-year plan
— In today's N.Y. Times -- House
panel OKs Bush's Alaskan refuge drilling plan
TUESDAY,
July 17 -- TODAY is National Call Congress Day
on Fast Track
...plus -- Blue
Ribbon ergonomics panel meets Thursday, Friday
— In the PSBJ -- Spending
limit may be revisited (Business groups talk of "Son of 601"
initiative.)
— In today's Olympian -- Gas
tax remains the sticking point
...plus -- Thurston
County unscathed by Boeing job shift
— In the Seattle Times -- Mediator
tries to pave way to legislative peace
...plus -- Should
you be trusted with your own money? (column re: Social Security
privatization)
...plus -- Ambitious
preschool plan (from AFT) seeks answers, not villians (column)
— In today's L.A. Times -- White
House retreats from amnesty idea
— In today's Washington Post -- Amnesty
proposal is huge gamble for Bush
...plus -- Debate
heats up over relaxing safety standards for Mexican trucks
...plus -- Unions
vs. industry over RSI ("Sometimes I feel like this is
'Groundhog Day,' " said AFL-CIO Secretary-Treasurer Richard Trumka.
"Every time I wake up they ask me the same... questions.")
MONDAY,
July 16 -- Sweeney,
McCarron: "Unity is our shared goal"
...plus -- Bush
Medicare reform: "A bait-and-switch con game"
New at AFLCIO.org -- Workers'
advocates call ergonomic hearings "a sham"
— In today's Olympian -- Lawmakers:
Get to work! (editorial)
...plus -- Lawmakers
hope to break transportation gridlock
— In today's Seattle Times -- Legacy
time: Congestion is No. 1 issue (editorial)
— In today's Spokesman-Review -- It's
time to fix transportation mess (editorial)
— In today's Tri-City Herald -- Tri-City
road projects remain on hold
— In yesterday's News-Tribune -- Time
to come through for state's highways (editorial)
...plus -- Safety
conscious bosses say: Train 'em while they're young (A unique
program to do just that is among those in jeopardy unless legislators
restore Safety Impact Grant funding. More
info.)
— In Saturday's Seattle P-I -- Boeing
moving 700 to Everett
— In today's L.A. Times -- New
amnesty for migrants possible
— In today's N.Y. Times -- Hispanic
workers die at a higher rate
...plus -- A special report, How
Bush took Florida: Mining the overseas absentee vote, explains how
panicked GOP strategists succeeded with an aggressive strategy of pressuring
officials to count illegal ballots in counties Bush won and discard them in
counties Gore won. (See also Democrats
seek inquiry on Florida vote count and today's editorial, Florida's
flawed ballots.)
News
from previous weeks: July
9-13 -- July 2-3
-- June 25-29

FRIDAY,
JULY 20
Bush issues "sky is falling"
Social Security report
The following report, originally posted here in early May when President
Bush's Social Security commission was introduced, predicted today's
"sky is falling" PR groundwork for the privatization of Social
Security by that commission. (See "Social
Security future grim, Bush panel says" in
today's Washington Post.) Also, read
how a Tacoma-based investment company is spearheading this and other
efforts worldwide to create false crises of confidence that lead to
privatization of social-insurance programs.
Also below is an AARP
statement calling Bush's report "fundamentally flawed and
biased."
MAY 2
He calls it bipartisan, but the Social Security commission assembled by
President George W. Bush is stacked with folks who share his views that
the government should begin privatizing our nation's retirement program.
The 16-member commission -- eight Republicans and eight
"Democrats" -- is being asked to draft a plan to overhaul Social
Security to "save it" from an imaginary crisis in long-term
funding.
Bush said Tuesday (May 1) the commission
will make "an objective analysis of Social Security: How do we
save it? What do we do to make sure it is viable in the
future?" But once again, Bush's actions speak louder than his
words as his appointees' views reveal there will be nothing objective
about the commission's work whatsoever.
The Baltimore Sun reports
today: "One Democrat, who spoke on the condition he not be
identified, said he had been asked whether he would be willing to serve
against the wishes of his party leaders and whether he would agree in
advance to recommend that Social Security taxes be redirected into private
accounts. He declined."
Social Security is arguably the most
successful government program in U.S. history. It has lifted
millions of seniors out of poverty and helped guarantee that, after a
lifetime of work, Americans can retire with dignity.
The problem is that President Bush and
others have an aversion to government programs, however successful, and
the word "Social." So they've come up with a plan that
would shift $1 trillion from the Social Security system to Wall Street,
generating literally billions in commissions and fees for investment
brokers.
But to generate support to fix something
that isn't broken, Bush and Co. have taken the good news about Social
Security solvency in recent years, and tried to twist it into an emergency
that requires "overhaul" of the program: "We have
only so many years to get the systems back on track," Bush says.
Well, in fact, the longer we wait to put
Bush's "fix" in, the more years we have.
The latest revised estimate for when the
Social Security Trust Fund will not be able to pay full benefits is 2038.
Every year, the solvency of the program is extended because of the
extremely conservative economic assumptions used for the projections.
Every year our economy performs at even an average level, the
"lives" of Social Security and Medicare are extended. In
the last four years, revised estimates have added NINE years to the life
of the Social Security trust fund.
If President Bush was serious about wanting
to extend the long-term solvency of Social Security, he would consider
investing a small percentage of the federal budget surplus in the program
now. But he refuses to do this. Instead, he proposes diverting
$1 trillion out of Social Security into "private investment
accounts."
By focusing on the promise of higher
returns on private investments, Bush is ignoring not only that working
people are getting some pretty disturbing 401(k) and IRA statements this
quarter that will postpone the retirement plans of many, but also that
there is no plan to make up for the revenue shortfall incurred by
diverting the money from Social Security.
Studies predict Bush's $1 trillion
diversion in private accounts will double Social Security's shortfall, and
deplete the trust fund by 2023, 15 years earlier than currently projected.
AFL-CIO President John Sweeney released the
following statement Tuesday (May 1) regarding President Bush's
announcement of the commission to overhaul Social Security:
With the announcement of a commission
charged with developing a plan to replace Social Security's guaranteed
benefits with individual investment accounts, President Bush is putting
the retirement security of America's working families on a backward
course.
Nearly two-thirds of retirees already
count on Social Security for half or more of their income today, and as
companies continue to cut back on real pensions, family retirement
income is put even more at risk. Working families cannot afford the kind
of cuts in benefits and family protections that President Bush's plan
will require.
But the President has made it very clear
that he will pursue the dismantling of Social Security regardless of the
cost to working families.
Replacing Social Security benefits with
privatized individual accounts, as President Bush has proposed, involves
huge changeover costs. An individual account plan funded with just two
percentage points of the payroll contribution tax would take more than
$1 trillion away from the Social Security trust funds in just the first
decade. All of the money that goes into the Social Security system-even
the surpluses accruing today-is already committed to paying benefits for
today's and tomorrow's retirees, disabled workers and surviving family
members.
Taking money away from Social Security
only worsens the system's financing and without additional resources
will require deep cuts in benefits. Even under the best circumstances,
the Bush plan could require Social Security's guaranteed benefits to be
cut by 41 percent, on average. The President has also indicated that he
is open to raising the retirement age even further-perhaps to age 70 or
higher-as a way of paying for his costly plan.
This plan poses an enormous threat to the
retirement security of working families, at a cost that America cannot
afford.
Here is a July 19 statement by AARP Executive
Director William D. Novelli on the Draft Interim Social Security
Commission Report:
The President's Social Security Commission continues to work toward a
predetermined outcome -- a dramatic overhaul of Social Security that
would lead to cuts in guaranteed benefits and shift financial risk to
individuals.
Today's draft interim report puts forward a fundamentally flawed and
biased view of the nature and purpose of Social Security. It
implies that the program is riskier than private investment. It
recycles old alarmist arguments that portray the financial shape of
Social Security in the worst possible light. The rhetoric in the
report demonstrates how far outside the mainstream the Commission
appears to be headed, referring to Social Security as a "novelty''
and calling the system "broken.''
The draft report lays the public relations groundwork for a campaign
to change the fundamental nature of Social Security. It argues for
turning Social Security into a system of wealth-building. But
Social Security was designed to provide income protection and a floor of
financial security. For many, especially women and minorities,
Social Security is the only income-protection they will have, providing
them with a lifetime, guaranteed benefit that is adjusted annually for
inflation. The report ignores the fact that other vehicles
currently exist for wealth-building through personal savings and
employer provided pensions.
Individual accounts do not address Social Security's long-term
financing issues. Add-on accounts -- which have merit -- can add value
on top of Social Security, but taking money from workers' Social
Security contributions to fund new private accounts only worsens Social
Security's ability to pay today's retirees and advances the date of
insolvency.
Social Security is the bedrock of our nation's income security
system. To preserve this benefit for future generations, the
Commission should focus on all potential options and tradeoffs, rather
than a narrow and fundamental restructuring of the program. The
sooner the nation begins to address the program's long-term financing
needs, the more moderate the changes that are needed and the more time
provided for those affected to adjust their plans.

THURSDAY,
JULY 19
Prospects grim for survival of safety
grants
Business groups misrepresent facts,
brag of defunding own members' grants
The following report comes from Richard A. Feldman of Safe Work
Washington (to get on the SWW mailing list, send an email to safeworkwa@yahoo.com
with your name, organization, postal address and phone number):
THE LATEST FROM OLYMPIA
The Governor received numerous emails and calls in support of the
Safety and Health Impact Grants Program. We learned, however, that
he is not likely to introduce legislation this special session to fund the
Grants Program. The Governor’s senior staff is advising him to
keep this special session focused on transportation and not bring in other
issues. In addition, only leadership is meeting and the full
legislature will not be assembled unless there is a deal on
transportation. So, holding hearings and moving this legislation is
problematic.
It will take legislative action to undue the last minute budget
amendment that defunded the Grants Program. If it is not taken care
of this special session (and this seems pretty unlikely), the next
opportunity to restore the $10 million appropriation will be when the
Legislature meets for the regular session in January of 2002.
It is our feeling is important to maintain the Program in some form in
order to successfully advocate for its full funding. The Governor
and L&I can fund the grants that were continuing from the first year
of funding to the second as a way of maintaining the Program. (Full
disclosure: Youth at Work, the project we operated, is a continuing
grant.)
Rationale:
- Because action was taken at the end of the last special session
there was virtually no notice to grantees whose grants were expected
to be continued on July 1. As a result significant work that has
been started will not be wrapped up.
- Several grantees have remarked that if they knew that funding was
going to be cut off they would have been able to pursue alternative
funding. The sudden cut of funding allows no time to pursue
alternative funding.
- The continuing grants have staff on board that will be difficult to
reassemble if there is a funding hiatus forcing these programs to go
through another start-up phase.
- WISHA’s joint business-labor Safety and Health Grants Committee
spent hundreds of volunteer hours in developing the Grants Program.
There was no consultation with this Committee prior to the abrupt end
of the Program. Continuation funding honors their work and provides
them with an opportunity to develop enacting legislation for next
session.
WHAT YOU CAN DO
- Continue to contact the Governor’s office in support of the Grants
Program. Ask the Governor to direct Labor and Industries to fund the
continuing grants.
Phone: 360-902-4111
Electronic: Go to www.governor.wa.gov/contact/govemail.htm
- Also copy any messages to the Governor to Marty Brown, Director Office
of Financial Manager. Phone 360-902-0530; email marty.brown@ofm.wa.gov.
- Chuck Bailey, Executive Director of Build it Smart and a tireless
advocate for workplace safety, suggests that in your contacts you ask
that "they not let the 7 workers who died last week go unforgotten.
[They should] remember the 4 Fire Fighters, the Ironworker and the 2
Operators by naming legislation to fund the Safety & Health Grants
in their names. It could easily be called the Worker Memorial Safety
& Health Grants Bill. Rather than getting together on April 28th to
say how tragic it is that we have lost all these workers, let's work
everyday to make sure the list of workplace deaths is as small as
possible."
WHAT BUSINESS GROUPS ARE SAYING ABOUT THE DEFUNDING OF THE GRANTS
PROGRAM:
From the Washington State Farm Bureau’s Legisletter
Online (Dan Fazio at the Farm Bureau (800) 331-3276, dfazio@wsfb.com):
LABOR
…The other labor issue of importance was the Department of Labor and
Industries’ attempt to raid a workers’ compensation trust fund for a
grant program. The department believed it does not need legislative approval
to take money from the workers’ compensation system, and attempted to fund
a $10 million dollar grant program by a budget line item.
The Legislature disagreed, and removed the program from L&I’s
budget. Farm Bureau applauds the successful bipartisan effort of Sens. Mike
Hewitt (R-Walla Walla) and Tim Sheldon (D-Potlatch) to assert control over
the agency. In the House, Farm Bureau’s outspoken champion on labor issues
is Jim Clements (R-Selah). This issue is important to Farm Bureau members
because their premiums fund the workers’ compensation trust fund that
L&I sought to raid.
Comments: This account is factually incorrect on several counts. First,
the $10 million Health and Safety Impact Grants Program was created by the
joint business-labor Workers Compensation Advisory Committee two years ago.
The program was developed in conjunction with the $400 million dividend
given to business from the Accident Fund of the Industrial Insurance system.
The dividend was made possible by the extraordinary gains from investments
of this fund.
Second, the other large workers' compensation fund, the Medical Aid Fund,
which receives 50 percent of its contributions from workers, also
experienced extraordinary gains. (Washington State is the only state in the
nation whose workers pay into the Medical Aid Fund.) It currently has a
healthy reserve of approximately $250 million above actuarial needs. Because
allocation of the extra gains from this fund to those individual workers who
contributed to it was not possible, the decision was made to use some of
those gains for safety-and-health grants to make the lives of Washington's
workers a little safer.
From the Association of Washington Business' July edition of "Washington
Business" (Clif Finch at the AWB (360) 943-1600, ClifF@awb.org):
…While there are many detracting qualities to this new biennial budget,
your AWB staff worked diligently to help ensure a number of positive
outcomes for business in this budget. They include the following:
…Cut $10 million from the Department of Labor and Industries' current
grant program and required enacting legislation to be adopted before any
funds can be appropriated. No enacting legislation was adopted;
consequently, no money was appropriated.
Comments: Eliminating a program that helps reduce workplace injury and
death and does not cost the taxpayer anything is a positive outcome?
No enacting legislation was adopted because AWB and other business lobbyists
refused to allow it to be enacted unless ergonomics legislation was passed
to their liking. Linking the two makes as much sense as having the
Mariners winning streak dependent on the amount of rain Washington receives
this summer.
This was also a case of cutting your nose off to spite your face.
Close to half the grants recommended for second year funding by the Grants
Committee were sponsored by employers.
The results of this strategy were that AWB did not achieve its ergonomics
aims and it defunded a program that enables employers and others to pursue
creative non-regulatory solutions to workplace safety issues. In
addition, the Governor vetoed the language in the budget that required
enacting legislation. The Governor’s veto gives L&I full
authority to operate the program if funding is available.

WEDNESDAY,
JULY 18
Performances will celebrate Harry
Bridges' 100th birthday
The University of Washington's Harry
Bridges Chair of Labor Studies invites the public to attend performances
this week celebrating the 100th birthday of Harry Bridges, founder of the
International Longshore and Warehouse Union. Australian-born Harry
Bridges came to prominence in the U.S. in 1934 when he led a general strike
of longshoremen that led to the creation of the ILWU. He served as the
union's president for 40 years.
"The Harry Bridges Project," a solo
performance by Ian Ruskin celebrating the legacy of this extraordinary
leader and visionary, will be presented at the Seattle UW campus in
Hutchinson Hall's Caberet Theater (see
map). Performances are scheduled for this Thursday evening at 7:30
p.m., Friday at 4 p.m., Saturday at 7:30 p.m., and Sunday at 4 p.m.
Thursday evening's performance will be
followed by a reception with birthday cake and beverages at the Jacob
Lawrence Gallery in the UW School of Art.
Events This solo performance, created and
performed by Ian Ruskin, serves as a centennial celebration of Bridges'
birth.
All supporters of the Harry Bridges Chair and
Center for Labor Studies are invited to attend a reception, with hors
d'ouvres, birthday cake, and beverages, in the Jacob Lawrence Gallery in the
UW School of Art (across the street from the playhouse) following the
opening performance on Thursday, July 19th.

TUESDAY,
JULY 17
TODAY is National
Call-In Day on Fast Track
Your action is needed TODAY to stop Fast Track in Congress. Please
call your members of Congress toll-free at 1-800-393-1082.
NOTE: After you have called Congress, the AFL-CIO requests that you
send a note to peoplepower@aflcio.org
to let them know you called. If you would like, please share in your
own words why fair trade is important to you.
When you call your members of Congress, tell them that working families
need fair and balanced trade that protects people and the environment -- NOT
Fast Track. If Congress gives President Bush Fast Track trading
authority, we'll see:
— More and faster trade deals like NAFTA,
— More U.S. job losses and smaller wages,
— More attacks on workers' rights across the globe,
— And more devastating pollution of our air and water.
Please forward this message to like-minded friends and colleagues and
encourage them to call Congress today, also.
The U.S. House of Representatives is expected to vote in
late July or early August on HR 2149, the Fast Track legislation -- now
marketed as the Trade Promotion Authority Act of 2001 -- which would allow
the Bush administration to make trade deals in secret and then give Congress
a take-it-or-leave-it proposal.
Bush's top international trade priority is the Free Trade
Area of the Americas, which would expand NAFTA to 34 countries in the
western hemisphere. Yes, the same NAFTA that has taken 14,071 jobs
(and counting) from Washingtonians, according to the Economic Policy
Institute. Expansion of NAFTA via Fast Track and the proposed FTAA
will cost us thousands more jobs, hurt families, decimate local economies
and force a corporate privatization agenda on publicly-funded services.
The AFL-CIO has aggressively opposed Fast Track authority
under President Clinton and continues to under President Bush. In 1997
and 1998, Congress rejected granting Fast Track authority in what was widely
considered a referendum on the failed NAFTA-GATT model of U.S. trade policy
and economic globalization. A year later, more than 40,000 people came
to Seattle to protest the World Trade Organization. Clinton admitted
then that the impact of trade on workers and environment would have to be
considered more seriously in future agreements.
But now President Bush wants to take a giant step backward
on the issue by removing any reference even to voluntary negotiating
objectives on workers' rights, which have been included in every Fast Track
trade negotiating authority since it first was used in 1974.
For more information, see the AFL-CIO's website: http://www.aflcio.org/globaleconomy/index.htm.

TUESDAY,
JULY 17
Blue Ribbon ergonomics panel
meets Thursday, Friday
Washington state's Blue Ribbon Panel on Ergonomics will meet this
Thursday, July 19 from 1 to 5:45 p.m. and Friday, July 20 from 8 to 11:30
a.m. at the Marriott Hotel SeaTac, 3201 S. 176th St. in SeaTac. Public
comments are welcome from 5 to 5:45 p.m. on Thursday.
The panel, convened at the direction of Gov. Gary Locke in response to
concern and complaints from business groups, is reviewing efforts by the
Department of Labor and Industries to implement the workplace ergonomics
rule adopted in May 2000. The rule requires employers to protect their
employees from work-related injuries such as back strain, tendinitis and
carpal tunnel syndrome.
For most of the two-day session, the panel will meet in subcommittees to
assess progress in three areas:
— Are educational materials widely available?
— Are rule requirements understandable and proposed enforcement policies
fair and consistent?
— Are demonstration projects successful?
The requirements of the ergonomics rule phase in over six years,
beginning July 1, 2002.

MONDAY,
JULY 16
Sweeney, McCarron:
"Unity is our shared goal"
The following joint statement was released today by AFL-CIO President
John Sweeney and United Brotherhood of Carpenters President Doug McCarron
regarding AFL-CIO - Carpenters discussions:
In May, the two of us agreed to participate in discussions about the
issues surrounding the decision by the Carpenters Union to leave the
AFL-CIO earlier this spring.
We have subsequently met several times and have had frank, friendly and
useful discussions. Former Secretary of Labor John Dunlop has been
involved in these meetings, advising both organizations. Building
and Construction Trades Dept. President Ed Sullivan has also been
consulted. We plan to continue the discussions. While they are
proceeding, neither organization will comment on the subject matter of the
meetings.
We are committed to attempt to resolve the matters under discussion in
an expeditious matter and achieve the unity that is our shared goal.
For more information about the dispute, click
here. Also see President Sweeney's May
2 statement and WSLC President Rick Bender's March
30 statement on the issue.

MONDAY,
JULY 16
Bush Medicare reform:
"A bait-and-switch con game"
Last week, President Bush outlined his
proposal and principles for "Medicare reform" which were
immediately denounced by the Alliance for Retired Americans as a "bait
and switch con game."
"The drug discount card proposed by
President George W. Bush really amounts to little more than a
bait-and-switch con game and is intended to divert attention from the need
for a real prescription drug benefit under Medicare," said Edward F.
Coyle, Executive Director of the 2,500,000-member Alliance for Retired
Americans. "A drug discount card is not a substitute for a
Medicare prescription drug benefit and does not even come close to solving
the problem of millions of retired and disabled people unable to afford the
medications they need."
Coyle added that "the high prices older
and disabled Americans must pay for their medications is the result of price
gouging by the pharmaceutical industry—not the neighborhood pharmacy.
But, under the President's proposal, the burden would be placed on seniors
and pharmacies to lower prices. The main beneficiary of a drug
discount card would be the drug industry—already the nation's most
profitable industry."
The following statement by AFL-CIO President
John Sweeney was released late last week in response to President Bush's
plan to "reform" Medicare:
The Medicare remedies prescribed by President Bush are good for the
health and well-being of pharmaceutical firms and the insurance industry.
But for America's seniors, there's nothing new and nothing much.
The president's national drug discount program is not an antidote for
the lack of affordable prescription drug coverage for the elderly.
Prescription drug discount cards are already widely available to seniors,
but the savings they provide are modest. The president's program
does not improve upon these savings, does not limit the actual cost of
medications to beneficiaries, and does not impose any cap on
beneficiaries' total out-of-pocket drug costs. In short, a senior
who pays a staggering amount for drugs this year is likely to spend, at
best, only a slightly less staggering sum next year under the president's
plan. While any relief is better than none, we should not allow the
fanfare around this Band Aid to obscure or distract us from the real, more
important task of developing a meaningful, comprehensive, affordable, and
universal prescription drug program within Medicare.
The second of the schemes announced by the president -- his reform
"principles" -- is bad medicine for the nation's seniors. It
repeats botched attempts to "reform" Medicare by forcing seniors
into large managed care health plans. While calling for some needed
updates and improvements in Medicare, the principles foreshadow a radical
and fundamental altering of Medicare -- a move away from the guaranteed
benefit available to all seniors through a reliable and highly successful
public program, to a plan where some types of care may be available from
private insurance companies only to those who can pay more. The crux
of the president's plan is to drive Medicare beneficiaries into the
private HMO Market -- a strategy that we know from the failed experiments
under Medicare+Choice is a prescription for disaster. HMOs have
abandoned the Medicare program in droves, adversely affecting one million
beneficiaries last year alone. We do not need to build on a failed
record -- imperiling rather than improving health care for millions of
seniors.
If the president truly wants to "honor and renew the promise of
Medicare" to the nation's seniors, as he has said, he will work with
Congress to pass and sign meaningful Medicare reform, including a
comprehensive, universal and affordable prescription drug benefit.
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 © 2001 Washington State Labor Council, AFL-CIO
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