WSLC Online - Home

Contact
What's New
Upcoming Events
WSLC Reports Today
President's Column
2000 Resolutions
Who We Are
Why Join a Union?
Legislative Issues
Political Education
Site Map

 

 

 

October 15, 2009


Oct. 14: Another hotel unionized in Seattle

Oct. 13: Honest look at workers' comp 

Oct. 12: Left, right agree: No on I-1033

RSS 2.0 feed 

Updated DAILY... Almost Every Day!™ by 9 a.m. Pacific
Links are functional at date of posting, but sometimes expire.


Thursday, October 15, 2009

 
No new tax on the middle class!

The Communications Workers of America has distributed a comprehensive and compelling explanation of why organized labor so adamantly opposes imposing a new excise tax on health-care plans -- one that will target middle-class families -- to help pay for the comprehensive insurance reform legislation now before Congress.  Learn more.

 

Health reform news:

►  In the USA Today -- Unions turn against parts of the bill -- A coalition of labor unions is emerging as a leading critic of an $829 billion health care bill heading toward a Senate vote, complicating debate among Democrats over how to pay for the measure. The unions want the Senate to include a public option in the merged bill and remove a tax on high-priced insurance policies.

►  In today's NY Times -- Public option is next big hurdle in health debate -- All eyes are on Sen. Olympia Snowe, the Maine Republican who calls for a “trigger” that would establish a government plan as a fallback. Two senior administration officials said the White House looked favorably on the Snowe plan. But some Democrats are maneuvering against it. 

►  In today's NY times -- Reform and your premiums (editorial) -- The insurance industry issued an inflammatory and utterly self-serving report alleging that the Senate bill would drive up premium costs for Americans by thousands of additional dollars a year. Most analysts already agree that the industry’s report was so deliberately skewed to produce frightening results that it deserves little credence. But still, the anxiety raised by the report needs to be addressed head-on.

►  In today's Washington Post -- Hidden costs of Medicare Advantage -- Seniors don't want to give up the freebies that come with his zero-premium plan: gym memberships, eyeglasses, aspirin, hearing aids. The trouble is, these perks aren't free; they are subsidized by the government.

►  In today's Washington Post -- Democrats fire back at insurance industry -- Days after the insurance lobby began an aggressive campaign to kill health reform, senior Democrats fired back, threatening to revoke the industry's antitrust exemption. (Why they have the exemption.)

►  In today's Washington Post -- Getting to "yes" with Olympia Snowe (E.J. Dionne column) -- The fate of the health-care bill is largely in the hands of President Obama and Sen. Snowe. 

 

Prison closure news: 

WFSE urges calls to hotline: "The consultants got it wrong!"

The Washington Federation of State Employees, AFSCME Council 28 is urging union members to contact Gov. Chris Gregoire and the State Legislature to oppose the huge cuts at the Department of Corrections. Get the details.

►  In today's Seattle Times -- Draft report outlines prison cuts -- A Yakima prison for elderly and infirm inmates, a juvenile-rehabilitation center in Thurston County and all of the state's intermediate-care facilities for the developmentally disabled have been placed on the chopping block in a state consultant's cost-cutting report. The draft report was released on Wednesday. A final report is scheduled to be presented to the governor and lawmakers on Nov. 2.

►  In today's Olympian -- Consultant recommends Maple Lane prison closure -- A consultant recommends that the state close its Maple Lane prison for youth criminal offenders near Grand Mound to save the state money, a move that would eliminate 111 jobs once workers and residents were transferred to other facilities.

►  In today's Walla Walla UB -- Penitentiary main institution closure among top options in draft report -- Closure of the State Penitentiary's main institution is among the top options identified in a study on ways to cut hundreds of beds in the Department of Corrections.

►  In today's Walla Walla UB -- Local officials quick to react to DOC closure study -- Local officials were quick to react to the draft report. Sen. Mike Hewitt (R-Walla Walla) said "the options laid out in today's report are not the only ones we should be considering. There's another way to approach this problem that could benefit our state budget and our local economies."

►  In today's Tri-City Herald -- Report targets job cuts at Walla Walla penitentiary -- City officials are concerned a recommendation to close a portion of the State Penitentiary could eliminate 300 well-paying jobs. State officials, however, say it's too early to be concerned.

►  In today's Everett Herald -- Monroe prison dodge closure -- The Monroe prison dodged a bullet when a much-anticipated study did not recommend closing it. Instead, it suggests about 100 inmates could be moved into the Monroe complex from a Yakima facility targeted for closure.

 

Boeing news: 

►  In today's LA Times -- Dreamliner is causing nightmares for Boeing -- The 787 is now more than two years behind schedule and by some estimates is costing Boeing $4 billion more to develop than planned. It has also set back other Boeing projects and has left some suppliers financially strapped. (There's not much new in this report except comments from a Deloitte analyst about why cost overruns and delays happen. That's not new either, but the Deloitte guy's refusal to speak directly about the 787 because Boeing is a client reminds us why that company should never have been hired to assess our state business climate. The conflict of interest was obvious when the report's recommendations precisely mirrored Boeing's legislative agenda.)

►  From AP -- Moody's lowers Boeing outlook to "negative" -- Moody's Investors Service lowers Boeing's outlook to "negative" from "stable," saying 787 delays and other setbacks had hurt its financial flexibility. Moody's said the most recent negative news from Boeing -- a $1 billion charge announced last week that arose from a delay in producing a new version of its 747 jet -- was "particularly disappointing... That airplane uses a familiar airframe with traditional materials and tested suppliers and facilities, so delays suggest continued stress in the company's new aircraft development processes that could undermine its image with airline customers."

 

Election news: 

►  In The Columbian -- No on I-1033 (editorial) -- Are you intimidated or depressed by the economic recession? Then you ought to feel downright aghast at the presence of Initiative 1033 on the Nov. 3 ballot. It's a real recovery killer for state, county and city governments. (The Columbian joins newspapers from both sides of the state -- and political spectrums in opposing Tim Eyman's Initiative 1033.)

►  In today's Seattle Times -- I-1033 will devastate education, health care and other services (guest column by State PTA Director and State Hospital Association President) -- Taken together, it's not hard to see why 225 businesses, education organizations, environmental groups, health-care leaders and labor unions have come together to oppose I-1033. The negative impacts of Eyman's initiative will extend far beyond the state capital and deep into every community, hospital, school and business in Washington state. I-1033 is a proven failure our communities, students, seniors and businesses can't afford. Despite what Eyman says, we can look at what Colorado's law did to the state's economy, classrooms and health, and know we shouldn't make the same mistake.

►  In today's Walla Walla U-U -- Approval of Referendum 71 gives same-sex couples important rights, protections (editorial) -- The State Legislature has updated the law over the past few years to give same-sex couples important rights and protections when it comes to such things as labor and employment rights, pension benefits, insurance, inheritance and other legal authority. Approving Referendum 71 is upholding fairness and equity.

►  In today's Columbian -- Approve Ref. 71 (editorial) -- It's key to know that Referendum 71 is not about gay marriage, despite dire warnings from those who advocate rejecting the measure. The ballot title specifies that "a domestic partnership is not a marriage." In fact, many domestic partners in our state are not gay. The law also allows domestic partnerships for unmarried, senior heterosexual couples.

►  At SeattlePI.com -- Union furloughs: Where Hutchison, Constantine stand -- King County Executive Kurt Triplett wants unionized employees to agree to more unpaid furlough days. So far the unions are reluctant to agree. Surprisingly, Susan Hutchison has been more conciliatory toward labor on the issue than Dow Constantine.

 

Local news: 

►  At TheOlympian.com -- State motor pool goes union -- The Washington Federation of State Employees, AFSCME Council 28 is seeing more employees who work alongside unionized workers wanting to get those job protections offered by a bargaining unit, including "layoff rights, right to seniority, things like that," says WFSE's Tim Welch. "They are obviously concerned about the jobs and having a contract is a way to protect their rights."

►  In today's Spokesman-Review -- County seeks pay concessions from workers -- Spokane County could lay off as many as 250 employees next year to close a projected $10.5 million gap between expected tax collections and its current budget. County officials are asking to renegotiate the labor contracts they signed last year to eliminate the promised cost-of-living adjustment raises and seek other concessions before the 2010 budget is approved in December. Union leaders are talking with members of county departments and may come up with proposals for various labor units.

►  In today's Daily World -- 31 Grays Harbor layoffs in "worst case" -- The county may lay off 31, impacting nearly every department, in order to deal with a $3 million revenue shortfall in 2010.

►  From AP -- One-day strike at St. Peter's Hospital in Olympia -- Some workers are holding a one-day strike at Providence St. Peter Hospital in Olympia, carrying picket signs outside to make demands for a new contract. The strike involves about 500 licensed practical nurses, technical and service workers represented by the SEIU 1199NW. Their contract expired in June and the union says the hospital wants to take away medical and retirement benefits.

►  In today's Daily News -- Rainier School District requests mediator for talks with teachers union -- The district and the teachers union, Rainier Education Association, have met nine times since May, trying to hammer out a contract agreement. The biggest stickler has been wages.

 

National news:

►  In today's NY Times -- States lag in recovery, study finds -- The recent signs of possible improvement in the economy have not trickled down to the states, which continued to be pummeled this spring by the steepest drop-offs in tax collections in nearly a half century.

►  In today's Washington Post -- Stagnant prices prevent Social Security increase -- President Obama attempts to preempt the announcement that recipients will not get an increase in their benefit checks for the first time in three decades by encouraging Congress to provide a one-time payment of $250 to help seniors and disabled Americans weather the recession.

►  In today's Seattle Times -- Wall Street parties like it's 2007, while Main Street waits for recovery (Jon Talton column) -- Big banks and investment houses are planning to award $140 billion in compensation this year. That would be a record. Employees would average $143,400 each, up $2,000 from 2007's previous record. If ever there was a sign of the increasing divergence between Wall Street and Main Street, here you have it. Outside of these major securities firms and banks, the nation faces its worst joblessness since the early 1980s, and by many measures since the Depression. Foreclosures keep rising. Small businesses can't get credit. Many workers have seen sharp pay cuts. And despite economists' talk of a recovery, few see it as more than tepid, full of risk and taking years to even recover the jobs lost since 2007. But on Wall Street, the stock market has improved. Thus, the reward -- as should happen in capitalism. After all, it's mere churlish envy to keep waving the bloody shirt of executive pay.

►  In The Hill -- Chamber avoids specifics, instead focuses on positive message -- U.S. Chamber of Commerce leaders who have been increasingly at odds with the White House and Congress avoided criticizing specific policy proposals during the official launch of the trade group’s much-anticipated “free enterprise” campaign. Instead, officials at the well-heeled business association said the effort is a massive undertaking to re-educate the public about the benefits of capitalism. (Maybe the Chamber could start by "re-educating" us on why Americans should join them in supporting gang-rape cover-ups by military contractors.)

►  In today's NY Times -- EU, South Korea sign trade pact -- With global trade talks deadlocked amid concerns over a rise in protectionism, analysts say that the deal could send a powerful signal to other nations, including the U.S., to press ahead with their own bilateral pacts.

►  At AFL-CIO Now -- Massive work stoppage set to protest Puerto Rico's layoffs, union-busting -- More than 200,000 are expected to march in a rally today in San Juan as part of a one-day work stoppage to protest Gov. Fortuño’s plan to trim the budget on the backs of workers.

 

THURSDAY, OCTOBER 15, 2009
No new tax on middle-class
families!
CWA report explains labor's opposition to excise tax on health plans

The Communications Workers of America has distributed a comprehensive and compelling explanation of why organized labor so adamantly opposes imposing a new excise tax on health-care plans -- that will target middle-class families -- to help pay for the comprehensive insurance reform legislation now before Congress. (Download the entire 5-page report -- in Word format.)

"The Senate Finance Committee’s excise tax, supposedly aimed at insurance companies, will also apply to employer and union health plans and be directly passed onto working families," the report concludes. "To avoid the tax, employers will be motivated to significantly cut benefits on active workers and to eliminate coverage altogether for pre-Medicare retirees. It will have the same or similar effect as the health benefits tax proposed by Sen. John McCain during the 2008 presidential campaign. It makes much more sense to pay for health care reform through progressive financing measures rather than to tax working families."

The excise tax is projected to raise up to $205 billion over 10 years -- a primary justification given for it. The other rationale given is that it will make employers more efficient purchasers of health care, thereby putting downward pressure on the cost of insurance plans in the long run.

The bills approved by committees in the U.S. House of Representatives impose no such tax and instead envision a high-income surtax. Starting in 2011, a family making $500,000 would have to pay $1,500 in additional income tax to help subsidize coverage for the uninsured. A family making $1 million would have to pay $9,000.

The CWA analysis of the bill approved by the Senate Finance Committee estimates that in 42 of 43 states examined (including Washington), over 10 years (2013-2022), the average excise taxes assessed on its members most popular plans will be:

  • $21,500 per active worker in the family coverage plan

  • $8,500 per active worker in single coverage plan

  • $12,500 per pre-Medicare retiree in the family coverage plan

  • $5,300 per pre-Medicare retiree in the single coverage plan

These union-negotiated benefits are not "Cadillac Plans" offering excessive benefits. The benefits in these plans are roughly comparable to other plans, but provide for more limited cost-sharing. 

Many union members have chosen to forego wage increases at the bargaining table in order to preserve their health care plans over the years. Now, the Senate is considering punishing these working-class families for that choice by targeting them with a new excise tax in order to avoid taxing wealthy families that can really afford it.

That's why this new health-care excise tax is a deal-breaker for organized labor.

 

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