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October 26, 2009


Oct. 23: Health reform event on Nov. 5

Oct. 22: Public health budget cuts 'can kill'

Oct. 21: Workers' comp: Just the Facts

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Monday, October 26, 2009

 
L&I hearings on rate hike this week

The Washington State Labor Council is urging union members this week to try to attend the Department of Labor and Industries' public hearings on a proposed 7.6% increase in workers’ compensation insurance rates for 2010. The first of six hearings statewide will be Tuesday at 1 p.m. at the L&I office in Tukwila. Read more and see the schedule of hearings. 

 

Health care news:

►  From AP -- Public option nears 60 votes in Senate, key Democrat says -- A proposal for the public option that is gaining wide support would allow states to choose not to participate in a government-run insurance, says Sen. Chuck Schumer (D-N.Y.). The "opt out" proposal is drawing support from many liberals and moderates and less opposition from lawmakers wary of government insurance.

►  From AP -- Senate likely to cut employer mandate, sources say -- Businesses would not be required to provide health insurance under legislation being readied for Senate debate, but large firms would owe significant penalties if any worker needed government subsidies to buy coverage on their own, according to sources. 

►  At Politico -- Democrats push for health benefits to start in 2010 -- Democrats are pushing Senate leaders and the White House to speed up key benefits, eager to give the party something to show taxpayers for their $900 billion investment in an election year.

►  In today's LA Times -- Insurers poised to reap benefits from healthcare overhaul -- The oft-vilified health insurance industry is on the verge of seeing a plan enacted that largely protects its financial interests. It means millions of new paying customers. What's more, there are likely to be no limits on what insurers can charge, while at the same time the plan is expected to limit competition from any new national government insurance plan that lawmakers create.

►  In today's NY Times -- After reform passes (Pail Krugman) -- If the Massachusetts experience is any guide, health care reform will have broad public support once it’s in place.

 

Boeing news:

►  From Bloomberg -- Boeing may put new jobs in South amid Seattle rifts -- Boeing wants a no-strike agreement from Machinists before it puts a second 787 assembly line in the Puget Sound region. Sources say that, without a deal, Boeing will likely set up a new line near a factory it bought in South Carolina. Boeing’s board will weigh the options at a meeting today.

►  In the PS Business Journal -- For Gregoire, aerospace means more than Boeing (if you can't read this story, email us for a copy) -- Gregoire has quietly broadened her aerospace strategy, in part because the state has limited influence over where Boeing will put its 787 line. Her new focus could lead to policies that encourage Boeing’s rivals to set up operations in Washington, and encourage state suppliers to sell to Boeing competitors. The change could also give her political cover if Boeing opts to put its second 787 assembly line in Charleston, S.C.

►  In the Seattle Times --  Washington is 0 for 5 in recent aerospace industry competitions (guest column by Tom Captain of Boeing client Deloitte Consulting) -- Forbes magazine recently ranked Washington No. 2 in its "best states for business" poll. Clearly, great recognition for the region. Unfortunately, the reality is different for the aerospace industry. Washington has a great skilled aerospace workforce -- but it comes at a price. In Charleston, S.C., average wages for engineers are 36% lower and home prices are 70% lower than in Washington's King County. These cost gaps are increasingly harder to justify in the new world of portable and digital airplane production. ... Labor, business and government leaders can impact the risk of work stoppage, and unemployment and workers' compensation insurance.

 

Local news:

►  In the Oregonian -- Spokane union fight spreads to Portland Fred Meyers --  An ongoing dispute between Fred Meyer and 200 unionized grocery store checkers in Spokane has trickled down to Portland, where union representatives have been leafleting shoppers and demonstrating in front of stores. Members of UFCW Local 1439 allege the grocery chain unfairly terminates checkers for giving the wrong change, sometimes after one error. The Spokane workers have declined to vote on a contract until they are able to achieve "progressive discipline and just cause."

►  In Sunday's Walla Walla U-B -- Brace for political battle to stop cuts at penitentiary (editorial) -- Local outrage is justified. The draft report outlining the options for cutting 1,000 prison beds across the state was incomplete and, perhaps, purposefully misleading. This $500,000 study was commissioned by state lawmakers after it became apparent that jobs were going to be lost. Individual legislators didn't want to see those jobs lost in their district and, maybe more importantly, they didn't want to take the heat for those lost jobs.

►  In Saturday's Everett Herald -- Budget issues force 8 job cuts in Arlington -- On top of its unpaid furlough days, unpaid holidays, previous layoffs and unfilled job vacancies, the city this week accepted early retirements and layoff agreements from eight more employees.

 

Election news: 

►  In Sunday's News Tribune -- The worst possible year for I-1033 (editorial) -- If enacted now, the initiative’s revenue baseline would be welded to the trough of the worst recession since the Great Depression. Nor does that baseline include the $3 billion in federal stimulus money the state used to balance the 2009-11 budget. Even with that money, the Legislature couldn’t balance the budget without steep spikes in college tuition, severe cuts in health care for the working poor, early release of convicts from prison and elimination of community supervision for many criminals. We would truly hate for this -- minus the stimulus money -- to turn into what Eyman calls “a new normal.”

 

Education news:

►  From AP -- Bill Gates sways federal education dollars -- The real secretary of education, the joke goes, is Bill Gates. The Bill & Melinda Gates Foundation has been the biggest player by far in the school reform movement, spending around $200 million a year on grants to elementary and secondary education. Now the foundation is taking unprecedented steps to influence education policy, spending millions to influence how the federal government distributes $5 billion in grants to overhaul public schools.

►  In Sunday's Everett Herald -- Merits of merit pay aren't all the proponents say (column by teacher Beverly Hoback) -- Merit pay not only reduces the productivity of those who don’t receive it, it reduces the productivity of those who do. Throwing money at people to motivate them causes them to do just enough to get the “prize” rather than to do their best. And eventually many decide they don’t care enough about the prize to put forth the effort to win it. Pride in one’s work, cooperation, team spirit and self-motivation all wither away in an atmosphere of competition, cheating and resentment. Another problem with merit pay: It assumes that teacher effort is the sole factor in student test scores. Yet studies repeatedly show that parental income is the biggest predictor of student test scores. Merit pay advocate Bill Gates is undoubtedly an expert when it comes to computers. Still, I’ve never seen evidence that he knows squat about educating kids.

►  In the Oregonian -- University of Oregon faculty consider forming union -- Concerns about low pay and a rift with administration have faculty members exploring the possibility of forming a union. The effort is still in the beginning stages with meetings on campus to discuss the idea.

 

National news:

►  In Saturday's Detroit News -- "No strike" language riles UAW -- A misunderstanding over "no-strike" language in a proposed amendment to the United Auto Workers' contract with Ford Motor Co. has sparked a backlash from some workers who accuse union leaders of giving up their most potent negotiating tool. The Detroit News has learned that the language, which was included in recent contract changes the UAW negotiated with GM and Chrysler was mandated by the Obama administration as a condition of its bailout of the two companies. It was designed to ensure the competitive gains that were forced through by the White House could not be reversed in 2011 contract negotiations between GM and Chrysler and the UAW, according to people familiar with the situation.

►  From AP -- Hotel owner tells Hispanic workers to change names -- The tough-talking former Marine bought a failing hotel in Taos, N.M., and immediately laid down some new rules. He forbade the Hispanic workers from speaking Spanish in his presence (he thought they'd be talking about him), and ordered some to Anglicize their names. 

►  In today's NY Times -- U.S. considers reining in "too big to fail" institutions -- Congress and the Obama administration are about to take up one of the most fundamental issues stemming from the near collapse of the financial system last year -- how to deal with institutions that are so big that the government has no choice but to rescue them when they get in trouble.

 

MONDAY, OCTOBER 26, 2009
L&I hearings on rate hike this week

Schedule of L&I hearings

Tukwila: Oct. 27, 1 p.m., L&I Office, 12806 Gateway Dr.

Tumwater: Oct. 28, 10 a.m., L&I Headquarters, 7273 Linderson Way S.W.

Vancouver: Oct. 28, 10 a.m., Red Lion Inn at the Quay, 100 Columbia St.

Bellingham: Oct. 29, 1 p.m., Bellingham Quality Inn, 100 E. Kellogg Road

Spokane: Oct. 30, 9 a.m., Spokane Airport Ramada, 8909 W. Airport Dr.

Richland: Oct. 30, 2 p.m., Richland Hampton Inn, 486 Bradley Blvd.
 
WRITTEN COMMENTS will be accepted through Nov. 7. E-mail them to Ronald Moore, Employer Services Program Manager, or mail them to him at the Department of Labor & Industries, P.O. Box 44140 , Olympia , WA 98504-4140 . Faxed comments should go to 360-902-4729.

The Washington State Labor Council is urging union members this week to try to attend the Department of Labor and Industries' public hearings on a proposed 7.6% increase in workers’ compensation insurance rates for 2010. The first of six hearings statewide will be Tuesday at 1 p.m. at the L&I office in Tukwila (see schedule at right).

L&I says the premium increase is needed because the national recession has taken its toll on the system: an estimated $1 billion hit on the State Fund reserves. Investments have suffered, unemployment is up, and work hours have been cut, so less money is flowing into the system. (This increase would affect employers in the State Fund system, not Boeing, Microsoft and about 400 other large self-insured companies.) 

But business lobbying groups, like the Building Industry Association of Washington, have seized on the proposed rate increase to call for "reforms" that lower costs by cutting injured workers' benefits. The BIAW plans a pre-hearing rally at the L&I Building in Tumwater prior to Wednesday's public hearing.

"I look forward to hearing what members of the BIAW and other employers and workers have to say," said Bob Malooly, assistant director for L&I’s Insurance Services Division. "It is a reminder that we need to hear from all stakeholders with an interest in workers’ compensation. Employers and workers all need a sound workers' comp system when unfortunate injuries and illnesses occur in the workplace."

L&I has a new Q&A on its Web site providing accurate and up-to-date information prior to the hearings. It addresses a variety of issues, including the agency’s administrative costs, pensions and time-loss claims.

In response to misleading and false claims made by some business lobbying groups, the WSLC has prepared Just the Facts, a report debunking some of those erroneous and misleading claims. This report is being distributed to state lawmakers and newspaper editorial boards throughout the state in order to facilitate an honest discussion between business, labor and government leaders about Washington's workers' compensation system and how it can be improved for both businesses and injured workers. 

Although this week's mid-day public hearings will be difficult for working people to attend, the WSLC is urging all union members to try to be there, and to arrive there prepared to respond to misleading and false claims about the system.

For more information, see:

 

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