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 Sept. 25, 2008


Sept. 24: IAM strike at Boeing: Day 19

Sept. 23: Guarantee Your Vote Day is Oct. 1

Sept. 22: Health care meeting in Vancouver
 

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

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



THURSDAY, SEPTEMBER 25

Financial bailout must benefit "Main St. as well as Wall St."
"The actions taken at this perilous time must set the stage for a real recovery that benefits Main Street as well as Wall Street," writes WSLC President Rick Bender. "The last thing we should do is compound the enormous imbalances in our economy with an enormously imbalanced rescue package, one that continues to put working families dead last." Read more.
▪  In today's LA Times -- Bush issues direct appeal for support on bailout plan -- In a prime-time address, Bush tries to convince a skeptical public and rebellious Republicans that the government must use $700 billion of taxpayers' money for the plan. Obama and McCain issue joint statement: "Now is a time to come together -- Democrats and Republicans -- in a spirit of cooperation for the sake of the American people. The plan that has been submitted to Congress by the Bush administration is flawed, but the effort to protect the American economy must not fail."
▪  This morning from AP -- Deal said to be near on financial bailout 
 
Machinists strike: Day 20 -- More at www.iam751.org.
▪  In today's Seattle P-I -- Strike pay to kick in for Machinists -- Saturday's the first day that members can receive strike pay -- $150 each. Checks will be handed out every Saturday for as long as the strike lasts. Meanwhile, Boeing CEO Jim McNerney says, "We're at a standstill now. We're unable to find the common ground we need to have the discussion we need to have to solve the problem."
▪  In today's Everett Herald -- Labor officials hear Machinists complaint against Boeing -- The union alleges that Boeing engaged in an "unlawful secret strategy to avoid the union and deal directly with employees," which is prohibited under federal law. District 751 President Tom Wroblewski and hundreds of members are testifying before the NLRB.
▪  In today's Chicago Tribune -- Boeing may face order cancellations due to faltering economy, strike  
▪  In today's Everett Herald -- Lost money could go toward benefits (letter) -- I have a question for the Boeing Co.: If you are losing up to $100 million a day, up to $1 billion at this point in the strike, why wouldn't you instead put that huge amount of money toward health care, pensions, the rising cost of gasoline and groceries, and other demands by the Machinists' union members?

 

More on the Bailout for Big Business: 



▪  In today's NY Times -- Absence of leadership (editorial) -- It took President Bush until Wednesday night to address the American people about the nation’s financial crisis, and pretty much all he had to offer was fear itself. There was no acknowledgement of the shocking failure of government regulation, or that the country cannot afford more tax cuts for the very wealthy and budget-busting wars, or that spending at least $700 billion of taxpayers’ money to bail out Wall Street and the banks should be done carefully, transparently and with oversight by Congress and the courts.
▪  In today's Wash. Post -- Wall Street's man in Washington (Meyerson column) -- In Paulson's plan, the American public pours at least $700 billion of its money into purchasing the bad loans on Wall Street's books and gets -- the thanks of a grateful Wall Street. Unlike the investments made by the people of China, Kuwait, Singapore and Korea, Americans would get no equity in return.
▪  In today's Everett Herald -- Bailouts help for needy woefully lacking -- The housing and consumer advocates who predicted this crisis say the Bush administration's proposal fails to deal with the root cause of the crisis -- families in foreclosure. Says one: "Address the woes of Wall Street second. Bailing out the very firms that caused this crisis in the first place would be an outrage."
▪  In today's Seattle Times -- Republican government-bashers line up for federal aid (Helen Thomas column) --
What has happened to those conservative Republican leaders whose mantra was "government is the problem -- not the solution"? Tell that to the once-bloated financial giants now standing in line for whopping government handouts to the tune of $700 billion. And who can forget those who wanted to "get the government off our backs"? Their silence now is deafening.
▪  In today's NY Times -- As homes are lost, fears that votes will be, too -- Officials struggle to make sure that people who have lost their homes through foreclosure are not disqualified at the polls. Some could be forced to vote with a provisional ballot or challenged by partisan poll watchers, a particular concern among Democrats who fear that poor voters will be targeted. That could add confusion and stretch out lines that are already expected to be long.

 

McCain Revealed:
▪  In today's Wash. Post -- First debate's fate unclear as Obama resists McCain's call to postpone -- After getting a call from President Bush, both will abandon the campaign trail today for a White House meeting, as the financial crisis gripping the nation roils the presidential race and leaves the first debate in limbo.
▪  In today's Wash. Post -- Selfless or reckless? McCain gambles on voters' verdict -- A gambler by nature, the bet McCain placed Wednesday may be among the biggest of his political life.
▪  In today's Wash. Post -- McCain's ploy (Meyerson column) -- Can McCain pull this off -- persuading the public to forget how he and his fellow Reagan Republicans changed the nation's economic rules in ways that allowed Wall Street to run amok, and refocusing its attention on his decisiveness at this moment of crisis?
▪  From AP -- Palin blessed to be "free from witchcraft" -- We're not making this up. See the video. And more here.

 

Rossi Revealed:
▪  In today's Seattle P-I -- Business group to host Gregoire-Rossi debate -- Read as P-I reporter Chris McGann tries to sort out which candidate is "better for business," meaning who has supported the most business tax cuts, who opposes safety nets for injured or unemployed workers, and who has backed less government regulation. In the context of what's happening on Wall Street, it's enough to make you puke. Note that Rossi, his corporate patrons and their think-tank echo chamber continue to advocate that "Washington Sucks." Is this really the guy you want to be in charge of economic development in our state?
▪  In today's Olympian -- Realtors PAC agrees to $130,000 fine -- The PAC -- which is aggressively supporting Dino Rossi's campaign -- admits to nearly $1 million in reporting errors and omissions.
▪  Today from AP -- State weighs restrictions on Republican accounts -- The PDC
will consider whether it should prevent the state Republican Party from using certain accounts to pay for activities that promote specific candidates. It appears the party improperly used a certain account to pay for mailers promoting Dino Rossi over Gov. Christine Gregoire in the state primary.
▪  In today's NY Times -- Democrats sue over "G.O.P." on ballot -- Dino Rossi's embarrassment over being known as a Republican is now national news.

 

Local news: 
▪  In today's Tri-City Herald -- Oak Harbor Freight Line truckers protest at Pasco terminal -- Pasco terminal workers, who are members of Teamsters Local 839, stop work after the union and the company failed to reach agreement on medical benefits during contract negotiation talks. More than 500 union workers -- out of a companywide work force of 1,300 -- walked off the job.
▪  At HorsesAss.org -- The truth about Washington's revenue deficit -- It is irresponsible to suggest that the projected $3.1 billion revenue deficit is the result of profligate spending by Gov. Gregoire, when in fact, it is clearly the result of declining state revenues. The culprit is a tax system that overly relies on a steadily shrinking segment of our economy: the sale of goods.
▪  At TheOlympian.com -- Republican Rep. Alexander: Leave state employee contracts alone -- The lead Republican on the House budget committee says he doesn't want to trim the contracts negotiated by state worker unions, as some in his party have suggested. (Like Sen. Joe Zarelli.)
▪  In today's News Tribune -- Puyallup sees jobs, big projects -- With up to $25 million in state funding now secure, the City of Puyallup is ready to move forward with its economic revitalization plan.
▪  In today's Seattle P-I -- Seattle firefighters gain new skills training on ships -- During the past six weeks, more than 750 people in the Seattle Fire Dept. were trained on how to combat ship fires.
▪  In today's Oregonian -- Halsey pulp mill workers still seek contract -- Three months after the Minnesota-based Wayzata Investment Partners bought the mill from a bankrupt Pope & Talbot, workers at Cascade Pacific Pulp mill have yet to secure a union contract.

 

National news:
▪  At AFL-CIO Now -- 740,000 sign on to million-member EFCA mobilization -- With fewer than 50 days to go before the election, some 740,000 people have signed cards and petitions calling on the new Congress to immediately pass and the new president to sign the legislation when they take office in 2009. The EFCA would allow workers to freely choose how they want to form a union. (You can show your support for the Employee Free Choice Act by clicking here to sign our online card.) 
▪  In today's LA Times -- Health insurance premiums increase moderately as coverage gets skimpy -- "We may be seeing the tip of the iceberg of a trend toward less comprehensive, skimpier health insurance coverage for many working people," says the Kaiser Family Foundation. 

 

THURSDAY, SEPTEMBER 25, 2008
Financial bailout must benefit "Main St. as well as Wall St."

Rick Bender, President of the Washington State Labor Council, sent the following letter to Washington's congressional delegation outlining the AFL-CIO's perspective on the federal government's proposed $700 billion bailout of the financial industry:

Dear Representative:

Our nation is facing a real financial crisis that calls for action that is thoughtful and swift, but not hasty. The actions taken at this perilous time must set the stage for a real recovery that benefits Main Street as well as Wall Street. The last thing we should do is compound the enormous imbalances in our economy with an enormously imbalanced rescue package, one that continues to put working families dead last.

The plan proposed by the Treasury Department is dangerous and ill-conceived, and should not be adopted in its current form. Congress should start over and do it right.  Any bailout plan must:

  • Be governed by an independent board with transparency and effective public and congressional oversight. There must be strong safeguards that any taxpayer money is spent in the public interest, and that a needed bailout does not become a raid on the Treasury by financial elites. Participating institutions must give the government equity; a stake in the good assets in exchange for the benefits of the bailout and ensure that future profits are returned to the taxpayers in some manner;

  • Place an immediate moratorium on foreclosures and use the full array of financial and legal tools available to the government to restructure home mortgage loans for working families;

  • Address the cause of the crisis on Main Street in addition to the symptoms on Wall Street. Congress should pass a second stimulus package in its entirety. We need a stimulus that extends unemployment benefits, provides needed aid to cities and states, and creates good jobs by rebuilding crumbling schools, roads, bridges and water systems; and

  • Work to address the disastrous weaknesses in our financial regulatory system and corporate governance system that allowed this disaster to happen. We must ensure that no corporate CEO benefits financially from the bailout -- no "golden parachutes" for the people responsible for this mess.

The Treasury Department proposal fails all of these tests. It proposed a grant of unlimited authority to the Bush Administration to spend $700 billion of the taxpayers' money to prop up whomever they wish on Wall Street, without any rules or independent oversight. It does nothing for families facing foreclosure or for working people hit hard by the economy, and it does nothing to hold those who caused this crisis accountable.

The stakes at this time are enormous. I urge you to act quickly and responsibly. For nearly eight years, the White House has pursued a "race to the bottom" policy for workers and an "anything goes" policy for corporate executives. Enough of this travesty.

If this plan ends up squandering hundreds of billions of the taxpayers' money, the damage will not be limited to the financial system. As a nation, we must address the heath care crisis, the infrastructure crisis, the energy and environmental crisis and the jobs crisis. Our future, and that of our children and grandchildren, depends upon focusing our nation on these challenges in the real economy.

Sincerely,

Rick S. Bender
President
Washington State Labor Council, AFL-CIO

Copyright © 2008 --  Washington State Labor Council, AFL-CIO