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September 25, 2009


Sept. 24: Leadership workshop Nov. 6

Sept. 23: List of 2010 union-made cars

Sept. 22: L&I seeks 7.6% rate increase

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Friday, September 25, 2009 

 

Washington climbs business-climate rankings

Forbes now ranks state No. 2 in nation

This week brought three new reports that all indicate Washington state is extending its comparative advantage over other states for having low taxes, less regulation, a skilled and productive workforce, and other factors that make it one of the best states in the nation to do business. 

The new Forbes 2009 business-climate rankings released Wednesday boosted Washington one spot from last year to the 2nd best state in the nation. Our state also jumped three spots to No. 9 for its business-friendly tax policies as judged by the conservative Tax Foundation. And the economic development think tank Cfed, gave Washington an "A" in its assessment of wealth, poverty and family financial security.

Looks like the WSLC will have to update its "Outside the Echo Chamber" reports with all the good news. This series of reports examines objective analyses of our state's competitiveness and refutes internal agenda-driven criticism of the state business climate by some business lobbying groups and politicians. Read more.

 

Boeing news:

►  In today's Seattle Times -- Pentagon reopens tanker bidding process -- The long-running dogfight that pits an Airbus jet against a Boeing jet to be the next Air Force refueling tanker resumes with a Pentagon briefing on the new competition that should produce a winner by next summer. Details provided to members of Congress strongly suggest that Boeing once again will need to offer its 767 tanker, and not the much larger 777 tanker. 

►  In today's Bellingham Herald -- Air Force won't consider subsidies in tanker contract decision -- The Air Force has decided not to consider the billions of dollars in illegal subsidies a European aerospace company received as it seeks new bids on a $35 billion contract to start replacing the nation’s fleet of aging aerial refueling tankers, say members of Congress.

►  At Senate.gov -- Sen. Murray vows to ensure fair competition -- "I will be looking specifically at how this RFP was constructed, how clearly it lays out what the Air Force wants, how requirements will be weighted, and why the consideration of illegal trade subsidies was left out."

►  More coverage of Tanker 2: Electric Boogaloo in today's (Everett) Herald, Seattle P-I and NY Times

►  In today's Seattle Times -- Boeing to stop paying for many employees' education -- Employees are about to lose a fabulous perk, and the cost-cutting move could mean a significant financial hit for some local colleges and universities as well. Until now, when an employee enrolled for any class at any accredited college, Boeing picked up the tuition -- with no restrictions. But many of those enjoying free classes will lose that benefit at year-end, when Boeing starts limiting its subsidy to cover only courses that further an employee's career at the company.

 

Video of Tuesday's rally against Big Insurance
 

CONTACT CONGRESS!

As the Senate Finance Committee debates the Baucus bill. Call Sen. Cantwell and tell her to "Fix It!" Please call 1-877-264-4226. Learn more.

TELL SEN. MARIA CANTWELL: Thank you for your support of a public option and your efforts to revamp Medicare reimbursement. Please fix the Baucus bill before moving it out of committee. The bill includes no employer responsibility, it does not provide affordable or quality health care coverage, it proposes unfair taxation on certain so-called "high cost" health plans, it has no public option, it increases state Medicaid costs, it has no provisions for early retiree coverage, and weakens state insurance regulation. Please do all that you can to fix it before moving it out of committee.

Health reform news:

►  At Time.com -- No public option debate 'til Tuesday -- Senate Finance Committee Chairman Max Baucus just opened today's health reform bill markup by saying amendments related to a public option will not be introduced and debated until Tuesday. An amendment from Sens. Maria Cantwell (D-WA) and Charles Schumer (D-NY) would replace the nonprofit health co-ops with a public option. 

►  At Huffington Post -- Poll: Public option favored by 65% of Americans -- A New York Times/CBS poll found that 65% of respondents want a public health care option, while only 26% opposed such a plan.

►  At Huffington Post -- Blue Dog opposition to public option in House fades after whip count -- The Blue Dogs now say their split on the public option, and their priorities for reform are now keeping the cost under $900 billion, not moving at a faster pace than the Senate, getting a 20-year cost estimate from the CBO and addressing Medicare reimbursement rates.

►  In today's Wall St. Journal -- Pelosi presses for public option -- Speaker Nancy Pelosi stepped up her push for a publicly run health plan that has divided congressional Democrats, saying it could "save enormous amounts of money." Congressional aides said including a government-run plan for people under 65 in the health overhaul could save as much as $100 billion, if such a plan were to pay health-care providers the low rates used by Medicare.

►  From Reuters -- Senate panel backs health insurance requirement -- The Senate Finance Committee upholds a requirement in the Baucus bill that individuals purchase health insurance. The Democratic-controlled panel defeated on a largely party-line vote a Republican proposal to let individuals opt out of the bill's requirement that everyone have health insurance.

►  In today's NY Times -- Senate panel rejects bid to add drug discount -- Obama scores a victory as Senate Finance rejects requiring drug companies to give bigger discounts to Medicare.

►  In today's Wall St. Journal -- Overhaul divides business and its traditional GOP allies -- Business is parting from its traditional Republican allies on health care as companies and big corporate lobbyists lend tentative support to an overhaul that conservatives staunchly oppose.

►  From AP -- Mass. GOP seek to block Kennedy's interim successor -- The Republicans filed an injunction that will be heard this morning over whether the governor could act immediately.

►  In today's News Tribune -- Cantwell offers healthy Rx for Medicare (editorial) -- Sen. Maria Cantwell succeeded in amending a key reform care bill in a way that would reward quality of care instead of quantity of care. The amendment affects only Medicare, but that’s a very big “only.” Medicare lies at the heart of the heart of the problem. It has always operated on a fee-for-service basis: The doctor or hospital submits the bill, Medicare writes the check. More bills, more checks.

 

Local news: 

►  In today's Seattle Times -- Coalition launches effort to defeat I-1033 -- A broad coalition of business, labor, education and seniors today launched an effort to defeat Initiative 1033, Tim Eyman's latest ballot measure. "1033 is bad for jobs and it would greatly diminish access to health care," said Doug Shadel, state director of AARP. The initiative would cap the yearly growth of state, county and city general funds at the rate of inflation, plus population growth. Any revenue above the cap would be used to lower property taxes. George Allen, with the Seattle Chamber of Commerce, called the initiative "a truly bad idea.... It puts a straitjacket on revenue during the recession and we can't make investments in our future. It's a destructive and broken path."

►  At SeattleTimes.com -- Gregoire opposes any push to replace viaduct with surface route -- Seattle mayoral candidate Mike McGinn who opposes the tunnel wasn't mentioned by name, but Gregoire had him in mind when she told the AWB, "I'm going to respectfully disagree with this candidate. I'm going to say 'Been there, done that'." 

►  In today's Spokesman-Review -- Lawmakers must reform workplace insurance (editorial) -- When the Department of Labor and Industries proposed a 7.6% increase in industrial insurance premiums this week, several business groups told the agency something its officials already knew. This is a rotten time to heap another $117 million burden on struggling employers.

►  In today's Seattle Times -- Group Health ending some vacation accrual -- Needing to cut expenses but reluctant to furlough workers with swine flu taking hold, Group Health Cooperative says it will halt vacation accrual for nonunion workers for the rest of the year.

 

National news:

NY Times photo -- click to enlarge►  In today's NY Times -- Hyatts face protests after layoffs in Boston area -- Hyatt Hotels is facing a wave of anger and protests as a result of its decision to lay off 98 members of its housekeeping staff at three Boston area hotels and replace them with lower paid workers. Upset by the layoffs, Gov. Deval Patrick of Massachusetts has called on state employees to boycott Hyatt hotels unless the company reinstates the workers. In a letter to Hyatt’s chief executive, Patrick called what happened “the worst nightmare of every worker in today’s weak economy.”

►  At AFL-CIO Now -- Air traffic controllers ratify contract after 3-year battle with Bush FAA -- The National Air Traffic Controllers Association says the new contract throws out the Bush-era FAA’s imposed work and pay rules and restores fairness to the collective bargaining process. In 2006, the Bush FAA rejected NATCA’s call for mediation to settle a contract and walked away from the bargaining table. The agency then imposed a set of work rules and wage cuts that have driven more than 2,600 controllers out of the towers, creating a shortage of experienced controllers and threatening aviation safety.

►  In today's Wash. Post -- Unions criticize Obama school proposals as "Bush III" -- To the surprise of many educators who campaigned last year for change in the White House, Obama's first recipe for school reform relies heavily on Bush-era ingredients that make unions gag: standardized testing, school accountability, performance pay, charter schools and more. 

►  From AP -- State labor officials: Extend benefits for jobless -- Labor commissioners from 18 states urge the U.S. Senate to follow the house's lead and act immediately to extend unemployment benefits for 300,000 people who will exhaust theirs in another week. 

►  From AP -- U.S. "pay czar" will not cap compensation, name names -- Kenneth Feinberg says he will not cap compensation for the top employees at bailed-out companies, and will not reveal names, when he releases the first wave of decisions within a few weeks.

►  In today's LA Times -- White Shadow elected SAG president -- Ken Howard defeats main rival Anne-Marie Johnson with 44% of the vote while his coalition consolidates its power on the national board, winning a majority of the 22 seats up for grabs on the 69-member board

►  At Huffington Post -- Michael Moore calls out ABC labor practices on "Good Morning America -- Watch as he chastises ABC for employing "permalancers," permanent freelancers who are effectively full-time employees but hired on a contract basis, and thus not given any benefits.

 

FRIDAY, SEPTEMBER 25, 2009
Washington climbs business climate rankings
Forbes
says our state's competitiveness has improved to 2nd best in nation 

This week brought three new reports that all indicate Washington state is extending its competitive advantage over other states for having low taxes, less regulation, a highly skilled and educated workforce, an excellent quality of life and other factors that make it one of the best states in the nation to do business. 

Part 1 -- Washington: A business-friendly state
(published July 2009) -- Our state is consistently ranked among the very best states for business. We have comparatively low business taxes, a lighter regulatory burden, a highly skilled and trained workforce, excellent higher education, and for those reasons and many others, our state outperforms other states.

►  Part 2 -- Our workers' comp advantage
(published July 2009) -- Only four states have lower employer costs for workers' compensation coverage than Washington state (even with the latest proposed premium increase). At the same time, we are able to offer superior benefits because our state-run system is efficient and has no profit motive.

►  Part 3 -- Unemployment insurance saving jobs, businesses in WA
Washington's unemployment insurance system has pumped some $5 billion into our state economy in the past 18 months. That money is keeping businesses afloat and saving jobs in this recession.

Forbes magazine's annual "Best States to Do Business" report released on Wednesday boosted Washington one spot from last year to the 2nd best state in the nation, behind 4-time winner Virginia. The report "measures six vital categories for businesses: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life."

Its detailed state-by-state table indicates Washington was the only state that rated in the top 10 in four of the six categories, as our state ranked 5th for its Regulatory Environment, 3rd for Economic Climate, 2nd for Labor, and 1st for Growth Prospects. (Meanwhile, South Carolina, our purported competition for a second Boeing 787 assembly line, ranks 25th overall and 31st in terms of Labor.) 

This week, the conservative Tax Foundation also bumped Washington up three spots from last year to No. 9 for its business-friendly tax policies. The group's 2010 State Business Tax Climate Index, published on Monday, is intended "as a tool for lawmakers, businesses and individuals alike to gauge how their states' tax systems compare." (South Carolina ranks 26th.)

NOTE: The Tax Foundation's detailed rankings for Unemployment Insurance taxes now list Washington 26th in the nation -- right in the middle of the pack. That's a significant jump from last year when the state ranked 36th. This year, thanks to Washington's healthy UI Trust Fund, legislators were able to approve a $377 million tax cut for 2010-2015 rates. Assuming the economy recovers, it will save businesses some $1.6 billion every five years after that.

Meanwhile, many states -- including South Carolina and all three of the other states considered our competitors for Boeing and other aerospace jobs -- have UI systems that are now bankrupt due to the recession, and are borrowing from the federal government to pay benefits. As Washington lowers its UI taxes, those states have already indicated they will significantly raise their UI taxes next year to pay that money back and replenish their trust funds. So look for Washington to continue to rise in these tax rankings.

And finally, this week the economic development think tank Cfed, gave Washington an "A" in its assessment of wealth, poverty and family financial security. Its 2009-2010 Assets and Opportunity Scorecard assesses all 50 states and the District of Columbia on 92 outcome and policy measures. These measures are grouped into five issue areas: Financial Assets & Income, Businesses & Jobs, Housing & Homeownership, Health Care, and Education. 

South Carolina got an "F."

Looks like the Washington State Labor Council will have to update its "Outside the Echo Chamber" reports with all this good news. This series of reports examines objective analyses of our state's competitiveness and refutes internal agenda-driven criticism of the state business climate by some business lobbying groups and politicians. 

 

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