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January 11, 2007


THE PAST WEEK:
Wednesday, Jan. 10
Tuesday, Jan. 9
Monday, Jan. 8
Friday, Jan. 5
Thursday, Jan. 4

WSLC Reports Today
Updated DAILY... Almost Every Day™ by 9 a.m.

Links are functional at date of posting, but sometimes expire. Some links require free registration.  WSLC Reports Today links to stories of interest to organized labor; some positive, some negative.  The intention is to inform.


 

THURSDAY, JAN. 11   Wal-Mart still top user of state health funds -- The cost to state taxpayers is pegged at $18.2 million for 2006. (Note: After 2004 figures on this subsidy were leaked last year, Wal-Mart claimed it had vastly improved its health plans since then, saying: "It's an apples and oranges comparison from Wal-Mart in 2004 to Wal-Mart today.")
▪  In today's Washington Post -- 43% of Wal-Mart workers get coverage elsewhere -- The company says less than half of its employees have enrolled in its health plans; more than a quarter get coverage through a spouse's or parent's plan (other employers), and 10% have no insurance.

Today's MUST-READ article:
▪  In today's NY Times -- For $7.93 an hour, it's worth a trip across the state line -- Nearly a decade ago, when voters in Washington approved a measure that would give the state’s lowest-paid workers a raise nearly every year, many business leaders predicted that small towns on this side of the state line would suffer. But instead of shriveling up, small-business owners in Washington say they have prospered far beyond their expectations. In fact, as a significant increase in the national minimum wage heads toward law, businesses here at the dividing line between two economies -- a real-life laboratory for the debate -- have found that raising prices to compensate for higher wages does not necessarily lead to losses in jobs and profits.

U.S. minimum wage increase:   All 233 House Democrats and 82 Republicans, including Rep. Dave Reichert (R-8th), vote yes on a $2.10 three-step increase to $7.25 an hour.
▪  In today's NY Times -- By a wide margin, House backs minimum wage increase -- The legislation now goes to the Senate, where members of both parties have indicated that they intend to tie it to tax breaks for small businesses, to help offset any new costs arising from the wage increase.
▪  At AFL-CIO Now -- A decade of inaction at an end -- Says economist: There is little rationale for adding any tax cuts to this bill. Businesses large and small have enjoyed hundreds of billions of dollars of such cuts over the past decade, as the value of the minimum wage has evaporated.

Legislative news:
▪  In The Stranger -- Unsustainable bias -- The only thing unsustainable is making public-policy choices based on the Republican lie that government spending is ballooning. The more the press continues to peddle that point on behalf of Republicans, the harder it's going to be to sustain the critical services, like health care and education, that government is expected to provide.
▪  In today's Yakima H-R -- Health care plan to cover immigrant children draws support -- Local health care providers welcome Gregoire's plan to expand health care to immigrant children regardless of their legal status, saying uninsured, sick kids end up raising the cost of care for everyone else.
▪  In today's Kitsap Sun -- NASCAR track still without traction in Olympia
▪  In today's Seattle Times -- UW leader drops plan for higher tuition -- Instead, Emmert is banking on a big -- and sustained -- financial boost from the state.
▪  At the Tri-City Herald's Olympia Dispatch -- Walsh gives up committee leadership post -- Republican Rep. Maureen Walsh, having upset some members of her caucus by accepting a committee leadership post from Democratic House Speaker Frank Chopp, now says that she is giving it up.
▪  In yesterday's Daily News -- We need a new formula for teachers' raises (editorial) -- A think tank's suggestion -- particularly the part about spending more to raise minimum salaries and less on seniority pay increases -- isn't likely to be seconded by the Washington Education Association.
▪  In today's Everett Herald -- Board advises sizable raises for legislators, judges -- Citizens' panel says pay hikes ranging from 9% to 16% are in order for legislators, judges and the governor. State legislators, now earning $36,311 a year, would pocket $42,106.
▪  Today from AP -- Eyman & Co. "earn" $173,000-plus in 2006 -- Mission accomplished!

Local news:
▪  In today's Seattle P-I -- Hotels are big business in Seattle -- Vacancy rates have fallen to near-record lows, and the average room price has spiked above $150 per night -- about $50 higher than the national average.
Labor leaders are keeping a close eye on the development in hopes of gaining members and raising the average wage of hotel workers, about $9.72 per hour.
▪  In yesterday's Daily World -- Two bidders confirmed for shuttered Cosmopolis mill -- Weyerhaeuser has temporarily stopped decommissioning its Cosmopolis Pulp Mill to review the two bids.
▪  In yesterday's Daily World -- Ample chip supply still a question for pulp mill
▪  In today's Tri-City Herald -- Workers protest against union -- Workers from the Willow Creek Dairy near Boardman protest along Highway 395 in Hermiston, saying they didn't want to unionize. The UFW says the rally is part of an ongoing effort by the dairy to intimidate workers.
▪  In today's Everett Herald -- 747 cargo jet to start flying in 787 parts from Japan "very soon" 
▪  In today's News Tribune -- Panel advises discount toll for Narrows bridge -- Its recommendation: a $3 toll for people who drive through the toll booths and pay cash and $1.75 for drivers who use transponders that automatically deduct payments from prepaid accounts.
▪  In today's Seattle P-I -- Corporate forces form one voice (Virgin column) -- "There's nothing like having one team, one vision, one voice, to get things done." (Word.)

Union agency fee case:
▪  Today from McClathcy -- State gains steam in union case before high court -- The Supreme Court appears ready to reject claims that the First Amendment prohibits Washington state from forcing unions to get permission before spending some of the money they collect on political causes.
▪  From AP -- Court hears case on state's law on union fees -- The case involves less than 5% of the teachers represented by the 70,000-member WEA who have chosen not to join the union. 

Immigration news:
▪  In today's Everett Herald -- Labor activist Dolores Huerta honors MLK -- The UFW co-founder speaks in Everett after a march through downtown commemorating the slain civil rights leader.
▪  In today's Seattle Times -- UFW activist Huerta calls for equality for immigrant workers 
▪  In today's Seattle P-I -- Driving down standards for some affects all workers (Letter by AFL-CIO President John Sweeney... scroll down) -- The AFL-CIO opposes guest worker programs because they treat guest workers as second-class citizens who are not afforded the same rights as other workers and who are ripe for exploitation because their legal status is tied to their employers.
▪  In today's LA Times -- Path to citizenship for farmworkers -- California senators introduce a bill to create "blue cards" for illegal immigrant laborers they say are essential to bringing in U.S. crops.

Other national news: 
▪  In today's Wash. Post -- Bush opposes collective bargaining for screeners (scroll down) -- White House: It'd "reverse the flexibility given to TSA to perform its critical aviation security mission."
▪  In today's Washington Post -- Revisiting parent leave for federal workers -- Bill would provide eight weeks of paid leave to federally employed women after childbirth and five days of paid leave for new fathers. It also would provide five days of paid leave to federal workers who adopt children. 

Last Throes update:
▪  In today's Seattle Times -- Bush announces "New Way Forward"™, warns of bloody year ahead
▪  In today's Seattle Times -- Ft. Lewis troops to deploy sooner, might stay longer -- Bush's new plan is expected to affect thousands of military personnel in the state. Plus, Mo' Troops, Mo' Money.
▪  In today's Spokesman-Review -- Sen. Murray predicts lack of support -- She says Bush seems to be misreading the results of the November election in his call for a surge in troops for Iraq.
▪  Today from AP --
Troop boost plan draws fierce opposition -- Says Senate Majority Leader Harry Reid: "In choosing to escalate the war, the president virtually stands alone."
▪  Today at AFL-CIO Now -- Sweeney: Iraq needs political, diplomatic efforts, not military buildup
▪  In The Independent -- Iraq admits 23,000 civilians died in 2006 -- That figure is smaller than United Nations data claiming that some 28,000 civilians were killed in the first 10 months alone of 2006.
▪ 
Of the 3,019 U.S. troops killed in Iraq so far, 2,882 have died (see a list) since President Bush declared "Mission Accomplished" and an end to major combat operations on May 2003; 2,553 have died since Saddam's capture. More than 5 years after 9/11, Osama bin Laden is at large.
▪  The WSLC's affiliated unions have called for an end to the U.S. occupation of Iraq.
▪  In The Onion -- 800,000 privileged youth enlist to fight in Iraq -- Says one: "Whether I agree with the war or not, our president needs us, and I'll be damned if I'm going to let our least advantaged citizens bear the brunt of this awesome burden."
... "I didn't realize you could just sign up."


 

THURSDAY, JANUARY 11, 2007
Wal-Mart still top user of state health care funds, report says
WA taxpayers paid $18.6 million in 2006 to subsidize world's largest corporation

The following press release by the Center for a Changing Workforce was originally posted at WSLC Reports Today back on Dec. 1, but we thought we'd share it again in the context of today's Washington Post report about Wal-Mart employee health coverage.  The Center also released a fact sheet offering a more detailed analysis. 

(Note: After 2004 figures on this subsidy were leaked last year, Wal-Mart claimed it had vastly improved its health plans since then, saying: "It's an apples and oranges comparison from Wal-Mart in 2004 to Wal-Mart today.")

Two new state surveys show Wal-Mart still ranks No. 1 in the state for the number of employees using public health care programs, even though it is not one of the state’s largest employers. An analysis of the report by Seattle’s Center for a Changing Workforce projected the cost to state taxpayers at $18.2 million for 2006, based on state survey reports released on Nov. 30.

More Wal-Mart news

▪  In today's Washington Post -- 43% of Wal-Mart workers get coverage elsewhere -- The company says less than half of its employees have enrolled in its health plans; more than a quarter get coverage through a spouse's or parent's plan (other employers); about 5% get it from Medicare programs (taxpayers), and 10% have no health coverage at all.
  In Dec. 1 News Tribune -- A ranking Wal-Mart could live without -- A new report is likely ammunition for legislators who hope to pressure big companies to spend more on health care benefits. They argue that Wal-Mart is essentially pushing its health costs onto taxpayers. “I hope this report will serve as a kind of catalyst,” said state Rep. Steve Conway.

The January and June 2006 surveys by the Health Care Authority and the Department of Social and Health Services counted 3,194 Wal-Mart employees either enrolled in Medicaid or the Basic Health Plan (BHP), or with enrolled dependents. There were an additional 2,943 dependents enrolled. The agencies placed the total cost to state taxpayers at more than $1.5 million per month, based on 2006 budget figures.

While Wal-Mart is once again the largest beneficiary from state health care programs, it is not the largest employer in the state. Boeing, Microsoft, Safeway, and Kroger each have more employees, but all four of the largest employers combined have fewer employees using public health care programs than Wal-Mart.

The cost of Wal-Mart’s state health care subsidies for 2006 exceeds:

  • The combined cost of health care subsidies to all of its major discount store competitors: Home Depot, Costco, Sears, K-Mart, and Target.

  • The combined cost of health care subsidies to all of its major grocery store competitors: Safeway, Fred Meyer, Albertsons, QFC, and Haggens.

“Wal-Mart’s ads claim ‘our people make the difference',” said David West, Director of the Center for a Changing Workforce, “and the company calls itself a 'family-friendly' business, but this report reveals that it’s Washington’s taxpayers who really make the difference when it comes to taking care of Wal-Mart employees and their families.” 

In January 2006, the Washington State Senate Committee staff estimated the cost of Wal-Mart’s combined Medicaid and Basic Health Plan health care subsidies at $12,100,464. Based on the new agency reports, the previous estimate was 50% too low.

Today’s new figures show that 11% of Washington Wal-Mart employees are in the adult Medicaid program. That’s more than double the figure Wal-Mart claimed existed in a recent internal memo. Another 11% of the company’s employees have children enrolled in the Medicaid kids program.

A majority of Wal-Mart’s employees who are Medicaid beneficiaries were working full-time (35+ hours per week), according to a January 2006 report based on an analysis of the 2004 numbers by the Seattle Times. At Wal-Mart’s average wage of $9.68/hour, full-time employees can qualify for Medicaid in Washington. Workers at the other companies on the list were primarily part-time workers.

The number of Wal-Mart employees on Medicaid and the BHP in 2004 were slightly higher -- 3,636 on both Medicaid and BHP, but because the agencies used a different method to count employees and dependents this year, comparisons to 2004 aren’t meaningful. The 2006 numbers are a large jump from 2002, when a state survey found 794 Wal-Mart employees as Medicaid and BHP clients. This year, the comparable number is 1,512 direct clients (not counting dependents), a 90% increase from 2002. During the same time period, the company’s employment increased by about 30%, from 12,000 to 16,000.

In the 2006 session, the Washington State Legislature considered, but did not act on legislation (HB-2517, SB-6356), which would have require Wal-Mart and other large employers to contribute more toward the cost of employee healthcare.

The Center for a Changing Workforce is a non-profit public policy organization that provides research, education, and policy analysis on employment and benefit issues facing low-wage and nonstandard workers, including temporary, contract, and part-time work. For more information, contact the Center's Director, David West, at 206-622-0897.

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 © 2007   Washington State Labor Council, AFL-CIO