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December 15, 2009


Dec. 14: Thanks for backing health care

Dec. 11: Sign up today for PAC training

Dec. 10: Health care rallies on Saturday

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Tuesday, December 15, 2009

 
Video from Saturday's Seattle health care rally

 

 

 

To create jobs, help small banks, too

One of the best ways to make sure our economy is creating new jobs is to take funds from the Troubled Asset Relief Program and rather than using them to just bail out the big banks, direct the funds to their intended purpose: restoring lending and credit to put people to work and our economy on the right track. That’s one of the key elements of the AFL-CIO’s five-point plan for job creation. Read more.

►  In today's Olympian -- Sen. Murray's bank bill could bring relief to state -- Sen. Patty Murray (D-WA) has introduced legislation that would provide $30 billion in federal assistance to the nation’s community banks, which are saddled with bad loans, causing a credit squeeze and making it hard for small businesses and farmers to get loans in an already difficult economy.

►  In today's NY Times -- Obama presses big banks to lend more -- As banks rushed to repay bailout money (so they can avoid limits on executive compensation), they were in a stronger position to resist government demands that they change their practices.

►  At AFL-CIO Now -- Trumka: Live webcast on jobs today -- At 1 p.m. PST today, AFL-CIO President Richard Trumka will host a live conversation and answer your questions about the jobs crisis and the way forward. More than 5,500 people have voted already on more than 150 questions working people submitted on subjects like green jobs, training, trade and addressing unemployment. There’s still time for you to vote on what questions you’d like for him to answer.

 

Health care reform news: 

►  Today from Reuters -- Medicare "buy'in" unlikely to survive in Senate -- After a meeting to find agreement on President Obama's top domestic priority, Democratic senators say they are determined to pass the bill by a self-imposed end-of-year deadline. That means dropping a compromise plan to allow those between the age of 55 and 64 to "buy-in" to Medicare, they said, after Sen. Joe Lieberman threatened to join Republicans in blocking any bill with the proposal.

►  In today's NY Times -- Lieberman gets ex-party to shift on health-care plan -- Just the thought of Joe Lieberman makes some Democrats want to spit nails these days. But he is not the least troubled by his status as master infuriator. He showed how powerful that role can be at a time when Democrats cannot spare a single vote.

►  Today from AP -- Obama to work to solidify support for health care bill -- The president is planning to tell Senate Democrats that now is the time to come together and pass a sweeping health care bill that would dramatically reshape the nation's medical system.

►  In today's Washington Post -- Drugmakers fight plan to allow imports -- Drugmakers intensify their lobbying push against a popular proposal to allow Americans to buy cheaper drugs from other countries, one of several heated disputes that have bogged down health-care negotiations.

 

Boeing news:

►  In today's (Everett) Herald -- 787 is set to fly this morning, if weather cooperates -- If Mother Nature cooperates, the 787 will take flight at 10 a.m. today from Everett's Paine Field, a major milestone for Boeing's first new aircraft in roughly 15 years. To do so, the company says it needs good visibility, little to no wind and no standing water on the runway. Watch it live.

►  In today's Seattle Times -- 787 test pilot ready to put the new jet through its paces -- In the next nine months, as chief 787 test pilot Mike Carriker leads Boeing's newest airplane through a series of flight tests, he'll draw upon an ability developed through decades of experience: to keep cool, gather data and maneuver with precision during heart-racing moments of tension.

►  In the Seattle Times -- This flight unlikely is to strike the usual chord here (Jon Talton column) -- One potent question is whether Boeing has learned the right lessons from the repeated delays of the 787 Dreamliner. The answer needs to be more than the narrative that the Machinist union's ill-advised strike of 2008 is the root of all trouble. The 787 is billed as a revolutionary airplane, but to contain costs Boeing built it with an untested global supply chain that has proved disastrous -- especially at the Vought plant in South Carolina, now to be the site of a second 787 line and perhaps much more. The result has been a case study in how not to do outsourcing. It has also called into question something unprecedented for Boeing: its technical competence and reputation as an engineering firm that produces world-class airplanes. Has this penetrated the aura of the Jack Welch protégés? The top brass's willingness to roll the dice again with the risky and potentially costly startup in North Charleston makes one wonder.

►  A bit late to the party, the Walla Walla U-B piles on -- Boeing's union workers should rethink approach (editorial) -- This is an opportunity for union officials to rethink their hard-line approach. That might mean taking some lumps and giving up the right to strike, but it's far better than losing tens of thousands of jobs and a major force in the state's economy.

►  In today's NY Times -- Trade group predicts another year of losses for airlines -- Demand for air travel is expected to rebound next year, but airlines will continue to report losses as excess capacity forces them to keep ticket prices low, predicts the Int'l Air Transport Association.

 

State government news:

►  In today's Olympian -- Raises in sight for some state employees -- The $83 million in raises represents the “step” or longevity-pay increase that almost one-third of general-government workers are entitled to earn in yearly increments, typically over their first six years in a job. WFSE spokesman Tim Welch says, “Reopening contracts at this point probably doesn’t make sense. We already have reopened contracts once... We would have to see what the proposal is. We can’t foresee a situation where that would happen.” Democratic Rep. Ross Hunter says all options, including eliminating step increases, should be on the table.

►  At TheOlympian.com -- Cheer up: New revenue report only $17 million down -- The latest report carries a tad more bad news: a dip in October tax collections, but revenue forecaster Arun Raha says the drop was "slight (-1.1%), indicating the (Nov. 19) forecast is on the right track."

►  In today's Bellingham Herald -- Washington employers to see increase in UI rates -- The state Employment Security Department announces that the average tax rate in 2010 will be an estimated 2.38%, up from 1.55% in 2009, but still lower than rates during the last economic recovery in 2004 (2.81%) and 2005 (2.78%), and equal to the 2006 rate.

►  At SeattlePI.com -- 2010 unemployment-insurance rates (posting by ESD Commissioner Karen Lee) -- The 2010 tax-rate increases are the product of huge benefit payouts and low tax collections in 2009. Businesses were paying the lowest taxes in 40 years during the depths of this recession.

►  In the Kitsap Sun -- Stop the state's ferry surcharge before it starts (editorial) -- Gregoire's initial 2010 budget includes a directive that a fuel surcharge on fares be considered to cover a nearly $33 million gap in fuel costs, an idea rejected by the Transportation Commission in September.

►  In today's Columbian -- Pursuing revenue (editorial) -- When the legislature reconvenes in January, Rep. Jim Moeller will laudably try to lasso an escaped cash cow, but Rep. Deb Wallace's effort to gather sales tax revenue from Oregonians will be a wasted effort. 

►  In today's (Everett) Herald -- Not a proper role for the state (editorial) -- If reforming what government does, and how it does it, is to be a serious part of solving the state’s ongoing budget woes, we raise our glasses to the idea of getting the state out of the liquor business.

  

Local news:

Join us tomorrow at SeaTac Airport!

Show our local union movement’s support for the airport security officers and their effort to gain a voice at work with the American Federation of Government Employees. Rally on Wednesday, Dec. 16 from noon to 1:30 p.m. at SeaTac Airport. Learn more.

►  In today's (Everett) Herald -- Might Snohomish County budget fixes come due in 2010? -- It gives most of the county's 2,700 workers five unpaid furlough days. That's equal to a 1.9% pay cut. Snohomish County Executive Aaron Reardon's proposal called for 15 furlough days or a 5.7% pay cut. Unions still have to agree to the concessions. 

►  In today's Seattle Times -- King County Council fails to fill Constantine's post -- A deadlocked council failed to fill the vacant council seat left by Dow Constantine, who was elected county executive last month. After 5˝ hours of debate, members could agree on only one thing: to try again when they return Jan. 4 from their year-end recess.

►  In today's Columbian -- Former lawmaker Denny Heck mulls congressional run -- Democrat Denny Heck, a former Clark County legislator and the founder of the state government cable channel TVW, is the latest candidate “strongly considering” running for Rep. Brian Baird's seat.

►  At HorsesAss -- Breaking: Sen. Pridemore will run in WA-03 -- State Sen. Craig Pridemore (D-Vancouver) will announce his candidacy within the next 24 hours, sources say.

►  In today's Oregonian -- Rallying teachers interrupt Portland School Board meeting -- Frustration over 18-month-long contract negotiations erupted in a raucous rally by chanting and sign-carrying Portland teachers who interrupted a school board meeting for half an hour. Nearly 1,000 of them started a call-and-response that shut down the session: "What do we want?" "A contract!" "When do we want it ?" "Now!"

 

National news:

►  In today's NY Times -- Poll reveals trauma of joblessness in U.S. -- More than half of the nation’s unemployed workers have borrowed money from friends or relatives since losing their jobs. An equal number have cut back on doctor visits or medical treatments. Almost half have suffered from depression or anxiety. About 4 in 10 parents have noticed behavioral changes in their children that they attribute to their difficulties in finding work.

►  In today's Washington Post -- Democrats lose 4th congressman to retirement -- House Democrats get a jolt when a fourth lawmaker in a matter of weeks announced his retirement (including Rep. Brian Baird). Party officials are fearful they represent the leading edge of a wave of departures that could leave Democrats vulnerable to significant losses in the 2010 elections.

 

TUESDAY, DECEMBER 15, 2009
To create jobs, help small banks, too

(The following was posted Monday at AFL-CIO Now.)

When our banking system was in crisis last year, Congress acted with lightning speed to bail out banks—but although Wall Street and the banksters have seen a recovery, working families are still facing a crisis of disappearing jobs.

One of the best ways to make sure our economy is creating new jobs is to take funds from the Troubled Asset Relief Program (TARP) and rather than using them to just bail out the big banks, direct the funds to their intended purpose: restoring lending and credit to put people to work and our economy on the right track. That’s one of the key elements of the AFL-CIO’s five-point plan for job creation.

TARP, unfortunately, bailed out Wall Street and big banks without helping Main Street. Billions of dollars have gone to these big banks—but too often those dollars turned into executive pay and bonuses and Capitol Hill lobbying, not lending to spur economic growth. Even before the economic crisis, lending by banks to small and medium businesses was declining—and bank bailouts have not restored this critical lending.

The AFL-CIO proposes to use bank bailout funds to create a fund dedicated only to small and medium sized business lending, and to have that fund managed by community banks. The community banks would co-invest in the fund, so they would have an incentive to manage it prudently. The fund would then lend directly to the small- and medium-sized businesses that desperately need credit to hire workers. 

TARP has done this kind of program over and over again in credit markets that matter to Wall Street -- like asset-backed securities. It’s high time we did the same for the credit markets that matter to Main Street.

Properly administered, this wouldn’t represent a cost to government: it would be an investment that would be repaid -- and everyone would reap the benefits of a stronger economy in the meantime.

The Small Business Administration estimates that one job is created or saved for every $24,000 in small business lending. Small and medium businesses are more dependent on bank lending by larger businesses, and the jobs they create are essential to having a broad economic recovery.

The AFL-CIO’s proposal for utilizing bank bailout funds to assist working families is just one part of a broader agenda that includes direct aid to families in need, aid to states facing budget crises and federal job creation through spending on critical infrastructure needs.

Congress and President Barack Obama must act quickly to get our economy moving again. The top priority next year must be jobs, jobs and more jobs.

 

Copyright © 2009 --  Washington State Labor Council, AFL-CIO