NEXT UPDATE  Tuesday, Sept. 4 by 9 a.m.

Links to commercial press stories are functional at the date of posting.  In some cases, links "expire" when the source would like to begin charging you for old news.

Reports for August 27-30, 2001

News from previous weeks:  August 20-24 -- August 13-17 --  August 6-10  

THURSDAY, August 30 -- Spread the word: Don't sign Eyman's I-257
...plus -- "Face of Labor" rally for immigrant justice Sept. 5 in Seattle
— In today's Seattle P-I -- Sympathy for unions has grown, poll finds
...plus -- Teamsters hit city streets over sheriff's plan
...plus -- Social Security isn't going away (oped)
— In today's Seattle Times -- It's time to put an end to transportation welfare (Rep. Hans Dunshee oped: "The good folks in Puget Sound have built roads in Central and Eastern Washington for years, while political bosses such as Speaker Ballard block any kind of traffic solution for Puget Sound.  That's wrong. The time has come to bring our money home.")
— In today's Olympian -- Northern Calif. grocery stores, unions prepare for strike
— In today's L.A. Times -- Writers Guild plans picket of Nickelodeon 
— In yesterday's CSM -- Why unions embrace illegal immigrants
— In today's Washington Post -- Ironworkers Ex-President Jake West indicted
...plus -- Up to 40,000 U.S. tax returns lost at Pa. facility  (Today's contracting out lesson: It's not enough for the IRS to pay a bank to process returns, it should offer incentives for doing it right instead of penalties for doing it wrong.  We're not kidding, read it.)
— At AFLCIO.org -- Flight attendants tell Delta, "It's union for us"

WEDNESDAY, August 29 -- WSLC delegates endorse I-773, oppose Eyman's I-257
At Teamster.org -- Overnite is America's No. 1 labor law violator
— At IndyMedia.org -- WSLC calls on AFL-CIO to "come clean" on international activities
— In today's Seattle Times -- The crude campaign to discredit Social Security (oped)
— In today's Centralia Chronicle -- Chehalis Wal-Mart asks panel to nix UFCW appeal
— In today's Everett Herald -- Lake Stevens teachers ratify new contract
— In today's Vancouver (B.C.) Sun -- Cominco workers show "extreme levels" of toxin
— In today's Seattle P-I -- Fair trade coffee growers emphasize quality
...plus -- CEOs are rewarded with pay hikes for laying off workers
— Today from AP -- AFA seeks organizing vote for 20,000 Delta flight attendants
— Today from Reuters -- U.S. alleges ex-Teamster chief lied 63 times
— In today's N.Y. Times -- Former Lucent workers see nest eggs vanish, too
...plus -- Economists agree on necessity to dip into Social Security funds
— In today's Washington Post -- How Mexico's immigration stance shifted
— In today's WSJ -- Report: Easing immigration laws may reduce illegal entry, raise wages  (The study's findings underline the possibility that labor unions, which are pushing for a broad amnesty for illegal immigrants, and business groups, which back a temporary visa program to curb worker shortages, could find common ground on the issue.)

TUESDAY, August 28 -- Labor Heritage Festival is Thursday night in Vancouver
...plus -- Bush backs off pledge to protect Social Security reserves
— In today's Oregonian -- Georgia-Pacific will cut 250 jobs in Camas
— In today's Seattle P-I -- Don't privatize Social Security (editorial)
...plus -- Labor Ready ordered to reimburse workers
— In today's Seattle Times -- Seattle teachers' pact bodes well for future (editorial)
— In today's Spokesman-Review -- Economic slowdown didn't affect CEO pay
— In today's N.Y. Times -- Ex-Teamsters chief Carey tried for '96 election fraud
...plus -- Truth and lies  (Krugman column: "Dishonesty in the pursuit of tax cuts is no vice. That, in the end, will be the only way to defend George W. Bush's deceptions.")
— In today's L.A. Times -- Steelworkers give Bush a hearty backing
— In today's Washington Post -- CBO says tapping Social Security funds likely 

MONDAY, August 27 -- Chavez-Thompson: Give apple labels a chance
...plus -- Employer benefit cuts eating away golden years
— In today's Olympian -- Health insurance premiums post alarming rise
— In Friday's Wenatchee World -- Labor chief: Give apple labels a chance
— In today's News-Tribune -- State keeps fixing highways -- on credit
— In today's Seattle P-I -- 747s line up for continuously moving production
— In today's L.A. Times -- Calif. bill increases contractors' responsibility for temps
— In today's Washington Post -- Bush tries to forge bonds with steel, labor
...plus -- FedEx begins carrying mail for U.S. Postal Service
— In Sunday's Akron Beacon-Journal -- Hoffa's union remains a force in Detroit, D.C.
— At TomPaine.com -- Union Advantage: The case for organized labor and workplace democracy

News from previous weeks:  August 20-24 -- August 13-17 --  August 6-10  

THURSDAY, AUGUST 30
Spread the word: Don't sign Eyman's I-257

I-257: Tim Eyman wants a Publicly Funded Government-Bashing Commission!

In his first effort at policymaking not directly related to taxes, initiative crusader Tim Eyman and the lieutenants at his for-profit corporation Permanent Offense have filed I-257, an Initiative to the Legislature, that would:

1. Require the State Auditor to conduct performance audits of every level of state government.
2. Create a citizen panel to oversee the entire audit process.

As usual with Eyman’s initiatives, it sounds good at first. But the more you read, the worse it gets.

These "performance audits" aren’t really audits at all. True audits of government programs and services identify successes and shortcomings in an effort to analyze what works, what doesn’t and how to improve it. Such audits are currently conducted by independent consultants all the time -- audits of social services, the workers’ compensation system, etc.

And guess what? Often they praise government services and efficiency, and their recommendations include hiring more staff to reduce caseloads.

But Tim Eyman’s simplistic, ideological "audits" presume from the start that government is wasteful and the only way to improve public services is to eliminate or privatize them. I-257 says these audits must include:

1. Identification of programs and services to be eliminated or transferred to the private sector.
2. Recommendations for the elimination or reduction in funding.

"Initiative 257 is not about good government, it’s about contracting out," said WSLC President Rick Bender.  "At best, it’s another layer of bureaucratic oversight of the workers providing public services and a waste of tax dollars to generate another report.  At worst, it’s a massive effort to contract out services to the lowest bidder, and eliminate public services and decent family-wage jobs."

If Tim Eyman was serious about improving state government he would support the findings of the real performance audits already being conducted, instead of creating yet another partisan commission (appointed by the State Legislature) with marching orders to eliminate programs or contract them out.

Paid signature gatherers will be asking you to sign I-257.

DO YOUR PART TO PREVENT GOVERNMENT WASTE (of time and money)...
DON'T SIGN IT!

A message from the working men and women of the Washington State Labor Council, AFL-CIO.

THURSDAY, AUGUST 30
"Face of Labor" rally for immigrant justice Sept. 5 in Seattle

WEDNESDAY, AUGUST 29
WSLC delegates endorse I-773, oppose Eyman's I-257

"Initiative 257 is not about good government, it’s about contracting out," said WSLC President Rick Bender.  "At best, it’s another layer of bureaucratic oversight of the workers providing public services and a waste of tax dollars to generate another report.  At worst, it’s a massive effort to contract out services to the lowest bidder, and eliminate public services and decent family-wage jobs."

WEDNESDAY, AUGUST 29
Chehalis Wal-Mart asks panel to toss out UFCW appeal

The following story appears in today's Centralia Chronicle, but because its links expire so quickly, we post it here:

By Amy Emerson

Wal-Mart attorneys are asking that the city of Chehalis' Board of Appeals dismiss the United Food and Commercial Workers Union's appeal against the expansion of the Chehalis Wal-Mart.

Wal-Mart's complaint is that the UFCW is appealing the growth of the local Wal-Mart under the Washington State Environmental Policy Act, even though the union's concerns are economic, not environmental, and thus not covered by SEPA.

Though the union has previously said to The Chronicle it is fully aware the city of Chehalis has no authority under SEPA to do anything about UFCW's economic worries, the union is appealing anyway in order to "keep our concerns in the public's mind."

The UFCW's concerns are that Wal-Mart's ability to out-price other grocery stores will result in the closure, or at least downsizing, of local grocery stores, and thus a loss of the union jobs provided by these grocery stores. Wal-Mart is not unionized.

The UFCW is meeting with the Board of Appeals on Friday at 1 p.m. Wal-Mart's attorneys say they will be there to present their case as to why they believe the union's appeal should be dismissed.

Wal-Mart's attorney, John McCullough, said the UFCW does not have the standing to bring the appeal.

McCullough said according to Kucera vs. State Department of Transportation, a party wishing to challenge actions under SEPA must "allege an injury in fact" and "the alleged endangered interest must fall within the zone of interests protected by SEPA."

"Issues like traffic and drainage are acceptable reasons to make an appeal under SEPA, but not issues like possible job losses or business closures," said McCullough.

"Since the union cites no environmental concerns, they are not in a position to appeal under the SEPA process," McCullough added.

Bob Nacht, Chehalis community development director, said the meeting with the Board of Appeals on Friday will not involve public testimony, and that only the UFCW and Wal-Mart will be able to speak to the board.

Ruth Underwood, a UFCW representative, said she had always expected the appeal would be dismissed.

"We are just trying to get people to listen to us," said Underwood. "We are also trying to meet with the Chehalis City Council. The Centralia City Council declined to meet with us, and so we will be at the next city council meeting (tonight at 7 p.m.) to speak during the public comment period."

In spite of the UFCW's fight against Wal-Mart's growth, plans for the expansion are now fully under way.

Wal-Mart recently signed a lease with the Chehalis-Centralia Airport Board for 5.6 acres of property for the addition to the current Wal-Mart building.

TUESDAY, AUGUST 28
Labor Heritage Festival is Thursday night in Vancouver

TUESDAY, AUGUST 28
Bush backs off pledge to protect Social Security reserves

MONDAY, AUGUST 27
AFL-CIO's Chavez-Thompson: Give apple labels a chance

MONDAY, AUGUST 27
Employer benefit cuts eating away golden years

The following story by Dallas Morning News reporter J.C. Conklin appeared in today's Seattle Times, but deserves local posting and wide distribution.  For more information about what you can do to get involved in reversing trends like these, visit the website of the Alliance for Retired Americans at www.retiredamericans.org.

As companies retrench, more retirees pay for health care

Back when employees spent their careers at one company and earned the proverbial gold watch, they could count on taking company health coverage with them into retirement. No longer.

Over the past decade, companies have been eliminating or reducing retiree health benefits, restricting access to programs and ending coverage for future employees. The trend played out again when retailer J.C. Penney told employees earlier this month that it's restructuring its retiree health benefits.

The effects of benefit reductions haven't been fully felt because many of the people affected haven't retired yet. But in five to 10 years, more retirees will have to pay for the full cost of their health care until they reach 65 years old and are eligible for Medicare, experts warn. Even then, they may have to shell out hundreds of dollars annually for prescription drugs and pay for supplemental health coverage to cover long hospital stays.

The disappearance of health benefits is already forcing some retirees to dig into their pensions to pay for health services or go without medical treatment, said Michael Gordon, an attorney associated with the Coalition for Retirement Security.

"When it hurts, it hurts as bad as anything you can imagine," he said. "This trend is extremely destructive."

Employment experts said that because people typically don't stay with one employer for 20 or 30 years, they covet benefits like 401(k)s that are portable. Retiree benefits, which aren't transferable, are from a bygone era of long-term employment.

Those depending on retiree coverage have little leverage to do anything about the loss of benefits.

"It's a very hard issue to organize retirees around because they don't have much clout in the market anymore," said Larry Levitt, vice president of the Henry J. Kaiser Family Foundation, a health-care think tank. "It's not like they can ... go to another job."

In 1991, 88 percent of employers with more than 1,000 workers offered retiree health benefits to those under 65 years old. In 2000, that figure declined to 73 percent, according to the Employee Benefit Research Institute, a nonpartisan research organization.

J.C. Penney sent letters to workers informing them that anyone hired after the new year won't get health insurance when they leave the company. The company also said it intends to raise premiums for retirees and won't pay for dental coverage any longer.

"I'm surprised the benefits haven't gone away before now," said William Spalding, 76, a J.C. Penney retiree.

Penney benefits director Sharon Leight said that all companies are looking for ways to cut their costs — and retiree medical benefits are a major focus.

"It's not something that people look for in a benefits package," Leight said. "A 401(k) plan is what people are really looking for."

Retirement information was unavailable from many large employers around Puget Sound. But for public employees, the trend is not the same as companies nationwide, said Dave Wasser, spokesman for the State Health Care Authority in Washington, which covers retired and working state employees and retired teachers.

"The retirees are paying more than employees but the level of benefits are staying the same," Wasser said. "There has been no move to reduce the level of coverage that the retirees have."

For public retirees not eligible for Medicare, Wasser said, health insurance can cost up to $240 a month, depending on the plan selected. The state pays about $70 a month, and retirees pay the rest.

State workers, on the other hand, pay up to $26 a month for health-care insurance, and some pay nothing. The state pays the rest.

Employers started to rid themselves of the retiree health-benefit programs in the early '90s. An accounting rule that large companies adopted in 1993 required employers to account for the future costs of health benefits. Before that, most companies were simply paying current expenses. Other factors have contributed to the decline of retiree benefits:

• Health-insurance premiums are once again skyrocketing. Insurers expect to pass on 15 to 20 percent increases in rates to employers this year.

• The economic slowdown has made employers less willing to carry the burden of generous benefit packages.

• Prescription-drug costs are soaring.

• Baby boomers are moving toward retirement age.

• A court ruling has made employers leery. Erie County Retirees Association vs. County of Erie permits beneficiaries to claim age discrimination when employers offer a different level of coverage to retirees covered by Medicare compared with those who aren't eligible.

Many employers offered retiree health benefits this way. Some companies have cut their retiree health benefits completely. Montgomery Ward & Co. did so after it filed for bankruptcy this year. Pabst Brewing Co. dropped health coverage for retirees in 1996.

Other businesses have reduced benefits.

The United Steelworkers recently preserved health-care coverage for 70,000 retirees, mostly in Pennsylvania, by agreeing to reduce benefits and requiring retirees to contribute to health-care costs. Polaroid retirees have seen their monthly contribution for health insurance go from zero to as much as 30 percent of the costs in 10 years.

Dallas-based TXU Corp. is gradually cutting the amount of money it contributes to retiree health benefits. Anyone 40 years old or younger will have to pay for all their health expenses when they retire after a new program starts next year.

Paul Fronstin, senior research associate at the Employee Benefits Research Institute, said several employers are linking benefits to years of service.

For instance, a business may offer health insurance to a 55-year-old retiree who worked at the company for 10 years. A few years ago, the business probably didn't require the employee to put in a decade of work.

And then there are companies that are keeping existing retiree benefits intact but eliminating them for future workers.

Anyone hired at J.C. Penney after Jan. 1, 2002, won't be eligible for retirement health coverage. Bell Helicopter Textron made a similar change to its benefits in 1994. Sears, Roebuck and Co. did the same thing last year.

Some retirees are starting to feel the crunch of increased premiums.

Wallace Paprocki, a Penney retiree in Sun Lakes, Ariz., said that he's aware of the rise in employee premiums.

"It's inevitable," said Paprocki, national chairman of an organization of Penney retirees called HCSC Club, which stands for Honor, Confidence, Service and Cooperation.

Under current law, there's little the retirees can do because few company policies specify coverage until death, said Carolyn Stewart, spokeswoman for Rep. John Tierney, D-Mass.

A movement afoot

But there is a movement afoot to protect some retiree rights.

The Coalition for Retirement Security is backing federal legislation that would bar employers from altering workers' health coverage after they retire. The bill, sponsored by Rep. Tierney, would force businesses to reinstate benefits that they reduced or eliminated. The bill may be debated this fall.

In the meantime, Gordon, the attorney associated with the coalition, said that some retirees have gotten part-time jobs to pay for their health care.

"Those who can't are trying to survive the best they can," Gordon said.

Seattle Times staff reporter Jiquanda Davis contributed to this story.

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