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September 28, 2009


Sept. 25: WA climbs business rankings

Sept. 24: Leadership workshop Nov. 6

Sept. 23: List of 2010 union-made cars

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Monday, September 28, 2009

 

Gregoire makes state's case for 2nd 787 line

Gov. Chris Gregoire today issued a "The Business Case for Consolidating Boeing 787 Assembly in Washington," a report highlighting the state's attractive business climate, low production risk, quality workforce and improving labor relations, stable government providing infrastructure improvements, commitment to education, quality of life and strong broad-based support among political and community leaders. Read more.

 

Will Washington repeat Colorado's mistake?

In 1992, Colorado became the only state in the nation (before or since) to impose a revenue limit like Tim Eyman's Initiative 1033. Called "TABOR," after being marketed as a Taxpayers' Bill of Rights, the revenue limit caused Colorado's economy and public services to deteriorate so badly that voters there suspended the law. Learn more about the damage done.

 

What we have to lose:

►  Posted here on Friday -- Washington state climbs business-climate rankings -- 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. 

►  In Sunday's Columbian -- Business friendly (editorial) -- When business executives look for a good place to set up shop, access to a skilled labor force is their first priority. So says Bart Phillips, the Columbia River Economic Development Council president who makes his living wooing good firms with good jobs to Clark County. Other dealmakers (or breakers) include market access and reasonable operating costs, including taxes. And Washington state's overall tax climate ranks among the best in the nation. Residents of our state get good services in exchange for reasonable taxes. That makes the state an attractive place to live, which in turn builds a skilled labor force, which, of course, is the top priority of businesses. This virtuous circle needs to be remembered and honored whenever politicians or political activists start complaining that our tax structure and rates are major barriers to economic prosperity and need to be discarded. 

►  In Sunday's Spokesman-Review -- State's high marks a positive for business (Bert Caldwell column) -- Discouraging as the economic environment is now, reminders that Washington has much to offer business are welcome. “You have to be encouraged that we are climbing in the ratings instead of dropping,” says AWB President Don Brunell, adding that he hopes companies who pay attention to state rankings will look more kindly on Washington as a place to invest.

 

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, 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:

►  In today's Washington Post -- On Medicare spending, a role reversal -- After years of trying to cut Medicare spending, Republican lawmakers have emerged as champions of the program, accusing Democrats of trying to steal from the elderly to cover the cost of health reform. AARP and other groups say the cuts are small enough to be absorbed without affecting services, and many health policy analysts tend to agree.

►  In the Everett Herald -- Truth about Medicare proposals shouldn't be scary to seniors (guest column) -- The truth is none of the reform proposals will cut your Medicare benefits. Rather, to one degree or another, all three proposals (the House, Kennedy and Baucus bills) would cut wasteful, unnecessary subsidies to the insurance and pharmaceutical industries. Knowing seniors are a powerful voting bloc, opponents of health reform, including these very industries, pump millions of dollars into a deception campaign. Some stoop terribly low, robo-calling seniors with false claims that reform will rip away Grandma’s Medicare.

►  In today's Bellingham Herald -- Congress does not get free health care -- Conservative bloggers spin that coverage for members of Congress is free, but it’s not. They are eligible for the same health insurance programs as 8 million other federal employees. "There is nothing unique about my coverage,” said Rep. Adam Smith. “I am employed by a big company, just like those working for Boeing, Starbucks, Costco or Milgard.” Like Smith, Rep. Rick Larsen is on the family plan. Larsen is married, has two sons, ages 10 and 13, and pays $365.59 a month for his insurance, with a $600 annual deductible and a $20 co-pay per visit.

►  In the Everett Herald -- Cantwell amendment is key (editorial) -- The importance of Cantwell’s amendment (changing how Medicare pays providers) to the success of any health-care overhaul -- and to the long-term survival of our health-care system -- would be hard to overstate.

 

Unemployment news:

►  In the Columbian -- Hundreds of unemployed in Clark County will see benefits dry up -- An estimated 1,130 residents of Clark County, which has the highest unemployment rate in the state at 13.9%, will exhaust all benefits by year's end or soon thereafter, despite a combined 76 weeks of monthly payments. In an economic downturn that's been especially harsh for those working in construction and manufacturing as well as business services, any sort of a recovery may be many months, even a year away.

►  In today's Seattle Times -- Move it, Senators. Extend unemployment benefits (editorial) -- Congress must ignore the sighs and eye rolls of conservative economics professors and others in comfortable sinecures. Vote to extend federal unemployment benefits.

 

Local news: 

►  In today's Yakima H-R -- Let's review L&I operations before allowing tax increase (editorial) -- The assumption that the workers' comp system needs additional revenues without a comprehensive review of its expenses is foolish and harmful to the state's business community. L&I needs to get a grip on expenses before getting one cent of new revenue. (See our take.)

►  In today's Seattle Times -- 2010 budget shortfall may push King Co. to tipping point -- How bad are its budget woes? Today, King County Executive Kurt Triplett will reveal his plan for cutting $56 million in spending and will seek additional cost savings from worker benefits.

►  In today's Spokesman-Review -- Frozen wages common in Spokane area -- Nearly half of Spokane-area employers said they froze wages in the past year, according to a recent business survey. And 36 of 95 firms responding to the survey said they laid off workers, with most predicting they wouldn’t be hiring people back during 2010.

►  In today's Everett Herald -- Court clerks face furloughs as threat of layoffs loom -- Some county departments shut down for entire days, but clerks can’t do that; the state Constitution requires them to keep the courts running. County Executive Aaron Reardon has proposed making most employees take 15 unpaid furlough days -- effectively shaving 5.7 percent of their paychecks. 

►  In today's Daily World -- As budget cuts loom, public safety a concern -- District Judge Thomas Copland said budget decisions by the Grays Harbor County’s prosecutor and sheriff are sending the District Court to its “breaking point” and he's concerned about public safety.

►  In the Everett Herald -- EdCC union president reinstated as English teacher -- PERC ruled that the college violated state labor law in declining to give English instructor Margaret West, a 21-year college employee and union president critical of the administration, a new contract.

►  In the Daily News -- Final day to register to vote is Monday, Oct. 5 -- It's the last day to make yourself eligible to vote in the upcoming general election or update your voter registration info.

 

National news:

►  At SPEEA.org -- SPEEA secures improvements from Spirit -- The union recommends that members in Wichita accept the new 3½-year deal that will provide a 3% bonus, annual salary increases and ensure engineers are compensated for all overtime hours. Employees will see medical premiums increase from 10-15% for the life of the contract.

►  In today's LA Times -- Unions target owners of five L.A. car washes -- An aggressive push to organize thousands of immigrant carwash workers in Southern California has sparked a fierce battle pitting big labor against two brothers who are major players in the local carwash industry. The brothers settled a federal labor complaint last month but still face criminal charges, a class-action suit, a union boycott and recurrent demonstrations. The dispute is being closely watched nationwide as one of the latest fronts in labor's push to bolster its immigrant ranks.

►  From HR Executive -- Here comes Trumka -- He put himself through Penn State while working in the very same southwestern Pennsylvania coal mine where his father labored for 44 years. He's built like a linebacker and has a law degree from Villanova University. He gives fiery, inspirational speeches that bring audiences to their feet. He's Richard L. Trumka, the AFL-CIO's newest president, and his admirers say HR leaders had better be on their toes.

►  In today's Wall St. Journal -- States rush to avoid losing $9 billion in highway funds -- States are urging Congress and the White House to act fast to change a law that may soon deprive them of the equivalent of roughly one-third of the amount in the economic stimulus. A fix for a technicality in legislation passed several years ago is needed by Oct. 1 to restore the funds.

►  From AP -- Wal-Mart best symbolizes America, a new poll finds -- Nearly half chose Wal-Mart as the institution that best symbolizes America, beating out Google, Microsoft, the NFL and Goldman Sachs. Half also say taxing the richest Americans by at least 50% is a great idea. 

 

MONDAY, SEPTEMBER 28, 2009
Gregoire makes the case for 2nd 787 line in state

Gov. Chris Gregoire today issued a "The Business Case for Consolidating Boeing 787 Assembly in Washington," a report intended to convince the company to locate a potential second Dreamliner final-assembly line beside the first one here in Everett.  The report highlights the state's attractive business climate, low production risk, quality workforce and improving labor relations, stable government providing infrastructure improvements, commitment to education, quality of life and strong broad-based support among political and community leaders.

The Boeing Co. has indicated that it may add a second final-assembly line for the new 787 Dreamliner and that the company is considering locating that facility outside of Washington state, perhaps in South Carolina. Boeing officials have said they plan to make the decision by the end of the year.

Gregoire's report was presented on Friday in a meeting with Boeing executives, including Commercial Airplanes President Chief Executive Jim Albaugh. The governor's office declined to comment on Boeing's reaction to the presentation.

Here is the "Message from the Governor" introduction to the report: 

Washington is proud of its long history as the commercial airplane capital of the world. We are proud of the thousands of airplanes in service that originated in Renton or Everett. And we are proud of the many thousands of men and women who have dedicated their lives to designing, building, selling and servicing these airplanes. Commercial aerospace is in our blood.

Boeing’s revolutionary 787 is the quickest selling airplane in history, with over 800 planes already on order. That success has generated competition among states for a second production line for this highly popular model.

Washington provides Boeing with the best location for the second line. Washington is the highest quality location Boeing could possibly identify for siting additional 787 production. Washington has a large, highly skilled and adaptable workforce, an attractive business climate, stable and sustainable government, a robust and funded infrastructure improvement plan, a strong education system, and the highest quality of life of any competitor state. Washington also has a highly competitive cost environment.

Boeing can site a second 787 assembly line in Washington with confidence that the world’s best airplanes can be built at a competitive cost.

For almost a century, Boeing, Washington and countless other companies and organizations have worked in partnership to improve Washington’s economic and business competitiveness. True there is more to do, but we have made significant progress, and we look forward to continuing to improve.

On behalf of the people of this great state, I am proud to deliver the business case for consolidating Boeing 787 assembly in Washington.

Click here to download the full report (5 MB PDF file).

MONDAY, SEPTEMBER 28, 2009
Will Washington repeat Colorado's mistake?

In 1992, Colorado became the only state in the nation (before or since) to impose a revenue limit like Tim Eyman's Initiative 1033. Called "TABOR," after being marketed as a Taxpayers' Bill of Rights, the revenue limit caused Colorado's economy and public services to deteriorate so badly that voters there suspended the law. Here are the kind of things that happened:

  • Funding for K-12 education plummeted, dropping Colorado to 49th in the nation in education funding.

  • The proportion of low-income children who lack health insurance doubled, even as it declined nationwide.

  • At one point, Colorado had to suspend school immunizations because the state couldn't afford to buy vaccines. 

In the past four years, 1033-like revenue restrictions have been considered and rejected in 28 states (AL, AZ, CA, FL, GA, ID, KS, MD, ME, MI, MN, MO, MS, MT, NC, ND, NH, NM, NV, OH, OK, OR, PH, SC, TN, TX, VA, WI). Colorado remains the only state to have adopted this terrible idea. 

For more information, see Tim Eyman's I-1033: Don't Buy It!

 

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