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January 20, 2010 |
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Updated DAILY... Almost Every Day!™ by 9 a.m. Pacific
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Wednesday
5%
state employee pay cut decried
A
bill that would force most state employees to take a 5% pay cut through 16
forced furlough days hit a wall of opposition in its first Senate hearing
Tuesday with the Washington Federation of State Employees, AFSCME Council 28
leading the way. Read
more.
► In today's Olympian -- Labor at odds with state plans -- Labor groups took shots at a Senate proposal to shutter many state agencies and functions one day a month to save state payroll costs over a 16-month period. Sen. Margarita Prentice, the Senate Ways and Means chairwoman and sponsor of SB 6503, said she is undeterred and will move ahead with a committee vote on the measure soon. It could save $92 million in general-fund spending, $158 million overall, amid a $2.6 billion budget shortfall.
► From AP -- Legislature starts talking about how to cut costs -- Legislators get a head start on cost-cutting chores, discussing bills that would close state offices once a month, extend a wage freeze for nonunion workers and trim about 175 full-time government workers.
► At Crosscut -- A recount on GOP's state budget ideas -- From the outraged talk of Republican lawmakers, you’d think that they could readily solve the budget problem without new revenues simply by eliminating scheduled step pay increases for unionized state employees. But OFM says eliminating them would save the state General Fund just $6.6 million, a whopping 0.2% of the projected $2.6 billion general fund deficit for 2011. “Regardless of $6.6 million or $600 million, we’re talking principle here,” says a spokesman for Republican Sen. Joe Zarelli.
Health care news:
►
In today's NY Times -- Election
defeat imperils health-care overhaul -- Senate Democrats
plan to
meet today to consider the fate of the Democratic health care overhaul now
that Republican Scott Brown’s decisive Senate victory in Massachusetts has
cost them their razor-thin advantage.
► In The Hill -- Labor: Election result send "sobering reminder" for lawmakers to perform -- One AFL-CIO official said that the results in Massachusetts should underscore the need for lawmakers to actually accomplish things if they want to win elections. "This election should be a sobering reminder to candidates running in 2010," the labor official said. "Voters are fed up with inaction in Washington and are expecting RESULTS. If candidates want the votes of working families they need to PASS a jobs bill, health care, financial regulation and labor law reform."
► In today's Yakima H-R -- No health insurance? You're not alone -- The recession and high unemployment have combined to push more and more Yakima County residents into medical debt. Hospital staff see not only people who have lost their health benefits after a prolonged layoff, but also those who have inadequate insurance that leaves them with big balances after an unexpected surgery or a trip to the emergency room.
► In today's Wash. Post -- GOP win doesn't mean health reform is dead (Steven Pearlstein column) -- As U.S. House Speaker Tip O'Neill of Massachusetts famously reminded, all politics is local. There are lots of reasons other than derailing health reform why normally liberal Massachusetts voters may have wanted to send an angry signal to the state's political establishment. For Democrats in D.C., the danger now is not that they will ignore the election returns, but that they will misread them and sound a premature retreat from a historic, game-changing opportunity.
► In today's Wash. Post -- More action on health care (Harold Meyerson column) -- As jobs continue to dwindle, and states lay off teachers and consider laying off police, what does Washington do? What it has done since Obama became president: haggle over health care. The two things the Democrats forgot in 2009 were their populism and the element of time.
Legislative news:
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Decisive perhaps, but not compassionate
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► In today's (Everett) Herald -- Senate victory in Massachusetts seen as boost for state GOP -- Says Senate Minority Leader Mike Hewitt (R-Walla Walla), “This is a turning point in America. Republicans are coming back!”
► In today's SeattlePI.com -- Viaduct tunnel tolls could be $4 -- Rush-hour drivers could be paying tolls of $3.50 to $4 to use the tunnel replacement for the Alaskan Way Viaduct when it opens in 2015. That's one of five scenarios studied by the state DOT on estimated costs of construction and tolling revenue that will be presented this week to the Legislature and governor.
► In today's Seattle Times -- Dems propose change to limit maverick to one elected office -- A bill proposes to prohibit legislators from holding another paid elected position -- a shot at Sen. Tim Sheldon's other job as a Mason County commissioner. SB 6588 would prohibit any "city, county or statewide elected official" from holding "more than one office at a time," with the exception of "voluntary" positions that pay less than $500 a month.
► In today's (Everett) Herald -- A distraction to set aside (editorial) -- Legislators shouldn't waste time on a proposal to let some child-care centers unionize and bargain for greater subsidies to care for low-income children. The House bill is poised for a vote on the floor, where it was approved last year. Some senators who stopped it in 2008 and 2009 may be fearful to do so again, as union backers could fight their re-election. That shouldn’t be on their list of worries.
Boeing news:
► In today's Seattle Times -- Boeing says work force here will shrink in 2010 -- Boeing expects employment at its commercial-airplane unit to drop by approximately 2,000 positions this year. While bleak enough, that's better than the nearly 4,300 jobs it did away with in 2009. And employment will likely rise this year before it falls. Among the unknown variables are potential further production cuts, which Boeing still maintains won't be necessary.
Local news:
►
In today's News Tribune -- Tacoma
General nurses picket -- Nurses chanted and waved
signs Tuesday outside Tacoma General Hospital, making a public show of
solidarity two days before stalled contract talks head for federal
mediation. Tacoma General’s three-year contract with approximately 700 RNs
expired in December and, despite several weeks of talks, the hospital and
the nurses’ union -- the Washington State Nurses Association (a WSLC
affiliate) -- have been unable to come to terms on a new contract. “This
shows them that we’re interested,” said Sally Baque, an RN at Tacoma
General for 32 years and head of the nurses’ bargaining unit.
► At Crosscut -- NOAA workers worry over Oregon move -- NOAA says it's headed south, get used to it. Some of those who run the ships are anything but happy about it.
► In today's Kitsap Sun -- Tough financial choices ahead for Poulsbo Fire Department -- Falling revenues and increasing costs may leave it no choice but to lay off three employees.
► In today's (Longview) Daily News -- Unions should be more flexible when jobs on the line (editorial) -- Five of 10 county unions have agreed to voluntary furlough days or other reductions this year. It's a better response to the commissioner's appeal than last year, of course. But it's well short of the 100% participation that we'd expect from union officials when jobs may be on the line.
Economic recovery news:
► From AP -- India outsourcers hiring staff as demand from U.S. rises -- India's top three outsourcing companies are ramping up hiring and increasing pay as global corporations, mainly from the U.S., send more work offshore to cut costs as they emerge from the downturn.
► In today's NY Times -- $64.2 billion payday seen for Wall Street -- New York's financial sector will pay $64.2 billion in bonuses this year, up from an estimated $57 billion in 2009.
National news:
►
From AP -- TSA
nominee withdraws amid political agenda --
Republican Sen. Jim DeMint wins. He blocked confirmation of Erroll Southers,
Obama's choice to lead the Transportation
Security Administration, for months -- at a time the nation suffered
an attempted terrorist attack aboard an airplane. Why? Because he was
worried Southers would allow TSA employees to have collective bargaining
rights. Now Southers has withdrawn his name.
► In today's LA Times -- SAG, AFTRA ready to make up -- It's been almost two years since AFTRA broke off its 27-year bargaining pact with SAG. But Sunday, a key AFTRA committee is expected to recommend to its national board that the union resume joint bargaining with SAG for prime-time TV contracts. Combining forces would strengthen the unions' bargaining clout against the studios.
► At AFL-CIO Now -- Union support pouring in for Haiti -- Union members continue to contribute to efforts to help the survivors of last week’s massive earthquake in Haiti. You can take action now to help the Haitian survivors by clicking on the AFL-CIO Haitian Disaster Relief site here.
WEDNESDAY,
JANUARY 20, 2010
5% state employee pay cut
decried
WFSE calls for
"shared sacrifice" rather than punishing public workers
The following report was distributed by the Washington Federation of State Employees, AFSCME Council 28 -- an affiliate of the Washington State Labor Council -- to its rank-and-file members following Tuesday's Senate hearing on a proposal to furlough most state employees one day a month:
Federation Executive Director Greg Devereux said state employees had already given up the equivalent of 4 percent in pay.
"This legislation (Senate Bill 6503) would take that to 9 percent per state employee," Devereux told the Senate Ways and Means Committee. "Few jurisdictions around the country have taken health care and wage cuts."
King County enacted furloughs but also pay increases and those furlough days will be returned in 2010 and 2011, he said.
The bill has some exemptions, for instance for institutions, Child Protective Services and corrections.
"The disparate treatment between furloughed and furloughed exempt employees invites lawsuits," Devereux said. He noted a judge in California recently struck down the Sunshine State's furlough program.
"When you add the 3,000 layoffs and $300 million in pension diversion to the aforementioned cuts, I think it is obvious that state employees have done their share and it's time to look at shared sacrifice," Devereux said.
"There are 567 tax exemptions in this state totaling $96 billion. Fourteen billion dollars of that is easily accessible. The governor in her budget only talked about $55 million out of $14 billion. I think if state employees are taking the cut here, it's time to look at tax exemptions on a temporary basis and look at an overall revenue solution."
Devereux's testimony sparked a testy retort from the committee's ranking Republican member, Sen. Joseph Zarelli of the 18th District.
Zarelli has launched a number of attacks against state employee pay and benefits, including step increases, in recent weeks.
He told Devereux the pension cuts did not hit state employees in the pocketbook and pooh poohed the suggestion that state employees have sacrificed to help rebuild our economy.
"When is not getting a pay increase getting a pay cut?" Zarelli said. "There's a lot of people across the state who saw no pay increase. In fact have seen significant pay decreases and the loss of jobs. To equate (that) as participating in solving our budget problem I would not look at those in the same fashion."
Devereux respectfully disagreed.
"Diverting $300 million that should have gone into the pension fund this year as you know will substantially drive up the cost in later years and put incredible pressure on the pension system, which will lead to a Plan 4, a Plan 5, which is a diminution from the current pension system, so I think that is taking away from state employees," Devereux said.
"Secondly, state employees across the board started last biennium 14 percent behind the private sector. So to take away a 2 percent wage increase that doesn't even make up the pay gap that exists I would say is taking away from state employees."
Of the more than a dozen others who testified, no one spoke in favor of SB 6503. The strongest opposition came from higher education, nurses and wheat and cattle producers who rely on state inspectors and would by stymied if they were laid off one day a month. Even the governor's budget office raised concerns about the level of possible savings and other "unintended consequences," such as Department of Transportation Highway Maintenance, which is not explicitly exempted in the bill.
Copyright © 2010 -- Washington State Labor Council, AFL-CIO