FRIDAY, AUGUST 4, 2006
Cantwell, Murray vote to block tip penalty, estate tax cut
Organized labor calls for Congress to stop playing games, raise the minimum wage

Despite intense lobbying and pressure from wealthy families and other special interests, U.S. Sens. Maria Cantwell and Patty Murray voted to block Republican estate tax-cutting legislation laced with "sweeteners" including a long-overdue minimum wage increase and timber industry tax breaks. The inclusion of a contentious tip- penalty provision cutting the wages of tipped workers in Washington and several other states ended whatever hope sponsors had in getting the two senators' support.

"Senator Cantwell and Senator Murray deserve our thanks for taking a strong stand," said Rick Bender, president of the Washington State Labor Council. "They faced enormous pressure from some very powerful interest groups and wealthy families, and in the end, they stood up for Washington's working families, particularly the quarter of a million Washington workers who earn and rely upon tips to make ends meet."

Republican sponsors needed 60 votes to advance H.R. 5970, but failed 56-42 as both Cantwell and Murray voted "no." There were actually 57 votes in support, but in a procedural move that will allow him to reintroduce the bill this fall, GOP Senate Majority Leader Bill Frist switched his vote to "no."

Reps. Dave Reichert (R-8th) and Cathy McMorris (R-5th) ran for cover in an effort to defend their votes last weekend in support of the tip- penalty provision. They sent letters claiming it was their understanding when they voted for it that no one's wages would be cut, and that they support a subsequent legislative fix, if necessary. They also pointed to a memo rushed out by the Department of Labor on Thursday saying that it shared the National Restaurant Association's interpretation that the tip-penalty provision would merely freeze the minimum wage for tipped workers and not cut it.

But most others said the language actually did cut tipped workers' wages, including the Washington State Department of Labor and Industries, the agency that enforces our state minimum wage laws. L&I advised both of our Senators that "Washington workers who receive tips -- typically service industry workers -- would see a decrease in income” if the bill became law.  Likewise, the Economic Policy Institute said the bill could result in as much as a $5.50-an-hour pay cut for minimum-wage workers who earn tips.  And finally, the non-partisan Congressional Research Service, which advised members of Congress about the impact of their own legislation, agreed that the bill blocked states like Washington from enforcing their own laws designed to protect tipped workers' wages.

"It should come as no surprise to anyone that the Labor Department run by the most anti-worker administration in our lifetime ended up scurrying to help with the damage control on this bill," Bender said.  "Despite being at war, reckless deficit spending that threatens America's economy, and many unfunded domestic priorities, the Republicans who control Congress and the White House decided their top priority was yet another $753 billion tax cut -- this time for the Waltons, Hiltons and other richest families in America.  They just got too greedy when they slipped the business lobby's anti-worker tip-penalty provision into their bill."

Rep. Reichert's chief of staff also made an unusual admission as part of his tip-penalty damage control, telling Seattle Times political reporter David Postman that Reichert didn't have a chance to read the bill before he voted "yes."  He made it clear that Reichert still considered it a good bill, but that the tip-penalty provision was "problematic."

Despite all of H.R. 5970's sweeteners supported by many of Washington's Democratic lawmakers, including extension of the state's sales tax exemption, targeted tax breaks for timber industry and the first federal minimum wage increase in nearly a decade, all six Democratic members of Congress read enough of the bill to vote "no" last weekend.  In fact, it was the state's Democratic delegation, led by Rep. Jay Inslee (D-1st), who immediately alerted the public to the tip-penalty provision's inclusion after the bill was approved.

Labor leaders have called for a straight up-or-down vote on raising the federal minimum wage.

"Last night the Senate told the Republican leadership in no uncertain terms to stop playing games with the minimum wage," said AFL-CIO John Sweeney in a statement released today. "The only thing stopping minimum wage workers from getting a $2.10 pay raise is the unwillingness of the Republican leadership of Congress to allow consideration of a clean minimum wage bill, with no poison pills and no strings attached.

"Minimum wage workers should not have to get in line behind Paris Hilton and the Wal-Mart heirs to receive the long overdue pay increase they rightly deserve," Sweeney added.

FRIDAY, AUGUST 4, 2006
Join picket lines to support striking IUOE Local 302 members

The following Call to Action comes from the International Union of Operating Engineers Local 302:

Brothers and Sisters:

The International Union of Operating Engineers Local 302 is on strike against Cadman, Glacier Northwest, Salmon Bay and Stoneway. These companies are the main suppliers of rock, sand, gravel and concrete to King County construction projects.

At the heart of the issue is wages and contract language that gives Local 302 members the right to support other crafts that are forced to go out on strike. There are more than 100 family-wage union jobs at stake. We need your help!!!

We are asking for help in staffing the picket lines. There are several locations we are picketing and we are stretched thin. If the building trades unions have members out of work please pass this along to them. They might be in this situation some day. We would also welcome any help from unions outside the building trades. An injury to one is still and an injury to all! 

Listed below are the locations we are picketing. We are asking picketers to meet at Glacier Northwest site, 5975 E. Marginal Way (by the 1st Avenue Bridge in Seattle), any time.  Our members will be there to welcome you starting at about 6 a.m. Come join us for an hour, a day, or however long it takes.

If you have any questions contact Randy Loomans, IUOE 302 Director of Government Affairs, at 206-251-5399.

Salmon Bay
5228 Shilshole Ave, N.W., Seattle

Glacier
5975 E. Marginal Way S., Seattle
6423 N.E. 175th, Kenmore
3838 W. Marginal Way S., Seattle
5601 396th Dr S.E., Snoqualmie
2222 Ross Ave., Everett

Cadman
18816 N.E. 80th Street, Redmond
7735 178th PL N.E., Redmond
6600 230th Ave. S.E., Issaquah

Stoneway
1915 Maple Valley Highway, Renton
915 Houser, Renton