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September 30, 2009


Sept. 29: Gregoire: WA is "best location"

Sept. 28: Will WA repeat CO's mistake?

Sept. 25: WA climbs business rankings

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Wednesday, September 30, 2009

 
State minimum wage to remain $8.55 in 2010

Says WSLC President Rick Bender: "Our state's minimum wage law continues to function as voters intended, but $8.55 an hour is still poverty wages for thousands of Washington families who are struggling to afford a tank of gas or a trip to the doctor. Full-time workers making $342 a week, before taxes, just can't afford basic necessities." Read more.

►  From AP -- Washington's minimum wage to remain unchanged in 2010 -- L&I recalculates the state's minimum wage each year in September as required by Initiative 688, which was approved by voters in 1998. The law requires the minimum wage to be increased for inflation, but the index actually went down 1.9%. The initiative did not allow wage decreases.

 

"Simply the best place to build airplanes"

(Seattle Times editorial) -- Gov. Gregoire's strong case for building all 787s in this state documents strength in the state's business climate, quality work force, commitment to education, and government and community support. And, most centrally, Boeing's low production risks. The company has to acknowledge the value of a trained, skilled work force. Boeing literally had to buy a company in South Carolina to try and halt sloppy work. Labor must act with enlightened self-interest. Do what it takes, including extending existing contracts, to protect, preserve and grow good jobs. Look beyond the end of one contract. Read more.

►  In today's Seattle Times -- Boeing seeks permits to build quickly in Charleston -- The company still insists a decision has not been made, but the dates cited in the South Carolina permit filings suggest Boeing may decide as early as October. (No permitting is required here.)

►  From AP -- Gregoire: 787 isn't everything -- Insisting the state has made a compelling case, she also points out how robust the aerospace industry is even without the second 787 line, which means up to 900 jobs compared with some 80,000 industry jobs in Washington now.

►  In today's Everett Herald -- Push to keep improving (editorial) -- The business case for Boeing to locate a second 787 line in Everett, as presented to the company by Gov. Gregoire last week, is a compelling one. But like any business, the state must continually push to become more competitive. (This editorial suggests the proposed 7.6% workers' comp rate increase is a strike against Washington. Boeing is self-insured and is not affected by the proposed rate increase.)

►  In today's News Tribune -- State's pitch to Boeing falls flat (editorial) -- The state’s new report trumpeting Washington’s aerospace advantages reads as if it were written by people convinced the competition for Boeing’s second 787 assembly line is either in the bag or out of hand.

►  In today's Tri-City Herald -- Areva to add jobs in Richland -- Areva announces it will end fuel production in Virginia (ranked #1 most business-friendly state by Forbes) and move all nuclear fuel-making operations to its Richland plant, which will add 50 jobs to the facility. A company official says Gov. Chris Gregoire and other state officials "made it very clear to Areva" how valuable the company is to Washington. 

 

Health reform news:

►  In today's NY Times -- Senators reject pair of public option proposals -- After an intense debate that captured the essence of the national struggle over health care, the Senate Finance Committee rejects two Democratic proposals, by 15-8 and 13-10 votes, to create a government insurance plan to compete with private insurers. (The second amendment was co-sponsored by Sen. Maria Cantwell, who voted in support of both proposals. See her comments.)

►  From AP -- More thorny challenges ahead for reform bill -- The outcome on the public option vote was expected. The Senate Finance Committee is the only one of five committees not to have embraced a new federally-run insurance plan to compete with private insurers. Now onslaughts loom on issues including abortion and insurance coverage for illegal immigrants.

►  At Huffington Post -- Growing momentum for public option (Robert Creamer column) -- Being two votes short of passage in what most consider the most conservative committee in the Senate signals a sea change in Congressional opinion toward the public option. The odds are now very high that some form of public option will be included on the final reform bill.

►  In today's Spokesman-review -- Public opinion loses out (Gary Crooks column) -- Why the skittishness on the public option? The answer is unsurprising. Insurance and HMO interests have 1,795 lobbyists and members of Congress on the five committees handling this issue have received $187 million from health and insurance entities. Money has so warped the issue that 65% of Americans are to the left of a Senate and White House run by Democrats.

►  At Huffington Post -- Congressman: Republicans want sick people to die quickly -- After saying he was inspired to read the Republican health care plan by the paper-waving GOP lawmakers at Obama's recent address, Rep. Alan Grayson (D-Fla.) summed up his findings with a few simple pieces of posterboard. "The Republican health care plan: don't get sick." But, he added, "The Republicans have a back up plan in case you do get sick ... This is what the Republicans want you to do. If you get sick America, the Republican health care plan is this: Die quickly!"

  

Local news: 

►  In today's Olympian -- Cities could lose millions under I-1033 -- Olympia could lose a total of $27.9 million from its general fund from 2011 through 2015 if voters approve Initiative 1033, according to the Association of Washington Cities and Washington State Association of Counties. Lacey would stand to lose $16 million and Tumwater could lose $7.8 million. (Learn more: Tim Eyman's I-1033: Don't Buy It!)

►  In today's Columbian -- Teachers oppose I-1033 capping revenue -- Tim Eyman's revenue-capping initiative would lock school districts into sharply reduced budgets that have already forced harmful program cuts, crowded classrooms and burdensome student fees, teachers from Clark County’s three largest school districts warned on Tuesday.

►  From AP -- Governor leaves door open for higher taxes -- Gov. Gregoire says she would consider tax increases as officials run out of ways to fix the state's recession-hammered budget. She was a staunch opponent of tax hikes during the last legislative session, but now she says that she's worried about further cuts to state programs. 

►  In today's Everett Herald -- Everett trims 2010 budget plans -- City officials want to postpone replacing some vehicles, cut back on re-paving city streets, eliminate cost-of-living raises for city employees and suspend contributions to the police and firefighters pension.

►  In today's Tri-City Herald -- State cuts programs from health district -- The Benton-Franklin Health District stands to lose two more public health nurses in the wake of state budget cuts.

►  At SeattlePI.com -- Seattle libraries may slash hours -- The Seattle Public Library System is facing a 23% reduction in branch hours next year under the mayor's 2010 budget proposal.

►  In today's Everett Herald -- Many health care workers avoid flu shots -- The Washington State Hospital Association may ask the state to require every hospital employee to get shots to help stem the swine flu outbreak. The WSNA and SEIU 1199NW oppose such a requirement. 

►  In today's Spokesman-Review -- Pro-business group lambastes measure -- A business-funded research group is blasting a measure on the Spokane ballot, contending it could cost the city millions for health and housing services, spawn expensive litigation and drive out jobs. 

►  In the Kitsap Sun -- Two shipyards compete for Kingston ferry contract -- All American Marine of Bellingham and Kvichak Marine Industries of Seattle seek to build the passenger-only ferry.

►  In today's Everett Herald -- Taxpayers' investment on our colleges pays off (John Burbank column) -- Every one of the students returning to school right now, those who pay full tuition and those who get scholarships and loans, is a direct beneficiary of our government. This is a good thing.

 

National news: 

►  At TheHill.com -- Harkin hopeful for EFCA vote this fall -- The chairman of the Senate Health, Education, Labor and Pensions Committee says he is pushing to bring it up for a vote. His optimism regarding its passage may be rooted in negotiations on a compromise bill that has been crafted to win over centrist Democrats like Sen. Arlen Specter (D-Pa.).

NY Times photo -- click to enlarge►  In today's NY Times -- Immigrant crackdown with firings, not raids -- The firings about 1,800 immigrant employees at American Apparel in Los Angeles have become a showcase for the Obama administration’s effort to reduce illegal immigration by forcing employers to dismiss unauthorized workers rather than by using workplace raids. The firings, however, have divided opinion in California over the effects of the new approach, especially at a time of high joblessness in the state and with a major, well-regarded employer as a target.

►  In today's NY Times -- Labor minister sees "deunionization" in France -- Despite a recent string of escalating action by workers -- from strikes to so-called bossnappings, where employees took managers hostage, along with threats by workers to blow up plants -- the French are not particularly militant, says official. 

 

WEDNESDAY, SEPTEMBER 30, 2009
State minimum wage to remain $8.55 in 2010

The Washington State Department of Labor and Industries announced Tuesday that the state minimum wage will not increase in 2010, remaining at $8.55 an hour, because the inflation index used to automatically adjust the lowest legal wage dropped 1.9% in the past year. The law does not allow for the state minimum wage to decrease.

The state's minimum wage is adjusted for inflation every year as a result of Initiative 688, filed by Washington State Labor Council President Rick Bender, and supported by the state labor movement and dozens of community organizations. Washington voters approved I-688 by a 2-to-1 margin in 1998. 

The law's annual cost-of-living adjustments are intended to keep the politics out of the issue by indexing the wage to the federal Consumer Price Index for Urban Wage Earners and Clerical Workers. This national index covering the cost of goods and services needed for day-to-day living decreased 1.9% during the 12-month period ending in August, compared to a 5.9% increase during the same period in 2008, which led to a 48-cents-an-hour increase in the 2009 minimum wage.  

This is the first time since the initiative passed that there is no increase in the state’s minimum wage.

"Our state's minimum wage law continues to function as voters intended, but $8.55 an hour is still poverty wages for thousands of Washington families who are struggling to afford a tank of gas or a trip to the doctor," Bender said. "Full-time workers making $342 a week, before taxes, just can't afford basic necessities like food, shelter and health care."

More than 11% of Washingtonians were living in poverty in 2008, according to new census data released this week, and those figures likely have worsened as the national recession took hold in 2009.

The federal minimum wage, which has lagged significantly behind Washington's and therefore eroded in value due to inflation, is $7.25 per hour. Like Washington, many states have increased their state minimum wages. Among the other states that have minimum wages of at least $8 an hour on Jan. 1, 2009, are California, Connecticut, Illinois, Massachusetts, Oregon and Vermont.

Washington was the first state to approve a state minimum wage with annual inflationary adjustments. The idea quickly caught on in Oregon -- whose minimum wage will also remain frozen in 2010 at $8.40 an hour -- and later in Vermont, Ohio, Nevada, Montana, Missouri, Florida, Colorado and Arizona.

WEDNESDAY, SEPTEMBER 30, 2009
"Simply the best place to build
airplanes"

The following editorial appears in today's edition of the Seattle Times:

Gov. Chris Gregoire's strong case for building all Boeing 787s in this state cannot be a surprise for aerospace executives, but the details stand to be repeated. Often.

The governor's report Monday documented strength in the state's business climate, quality work force, commitment to education, and government and community support. And, most centrally, Boeing's low production risks.

Washington is in a heated competition with South Carolina and other contenders -- North Carolina, Texas, California and Kansas -- to land a second 787 assembly line. The governor lets others make the arguments.

Forbes magazine rates Washington's business climate second in the nation. On a variety of other tax and business-environment indexes, Washington is either the outright leader or compares favorably with the competition. This state's unemployment insurance fund is one of the strongest in the country. South Carolina's is insolvent.

For some, the governor's report had a certain, aah, CYA quality -- a political not economic document. We can go with CYA: cataloging your assets. Washington, in the opinion of independent analysts, is a solid place to do business.

Washington is simply the best place to build airplanes, and build them at a competitive cost. As Boeing struggles with the expensive consequences of dispersing the manufacture of complex pieces of an ultra-complex product, why compound the delays and span-of-control issues by scattering assembly?

All the elements are here in place, in the hands of a skilled work force and a regional network of aerospace subcontractors. Training and research cannot be matched. Why start over somewhere else?

The answer has boiled down to labor relations. As the governor notes, only Boeing and the unions can truly negotiate labor-management agreements. Supportive, concerned parties like our state's political leaders must and can promote a positive environment.

Boeing has to acknowledge the value of a trained, skilled work force. Boeing literally had to buy a company in South Carolina to try and halt sloppy work.

Labor must act with enlightened self-interest. Do what it takes, including extending existing contracts, to protect, preserve and grow good jobs. Look beyond the end of one contract.

Starting over to try and duplicate what already exists in Washington wastes time and money better invested in building the world's best planes.

 

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