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Senate OKs lump-sum workers' comp buyouts
By a 34-15 vote, the Washington State Senate approved a workers' compensation bill Saturday that allows employers to negotiate lump-sum buyouts that absolve employers of all current and future claims related to the injury or illness. The bill was made public for the first time on Friday and passed Saturday without a public hearing or vetting by policy committee. After word leaked out, legislators received more than 1,200 emails from constituents urging opposition to lump-sum buyouts. But in the end, the vote seemed predetermined by backroom negotiations between Senate leaders and business lobbying groups -- all of which issued ebullient news releases on Saturday in anticipation of the predetermined vote. Read more. 'Sure and certain' relief isn't open to 'compromise' See today's statement by Jeff Johnson, President of the Washington State Labor Council, about the State Senate's actions to undermine the central underpinning of our public workers' compensation system: that all injured workers and their families are entitled to "sure and certain relief." Read more.
Today is the last day for bills to pass its house of origin. There was lots of action over the weekend on bills of concern to organized labor -- including House passage of a labor-backed bill to help employers return injured workers to light-duty status and labor-opposed legislation granting Retro employers sweeping new powers. More floor votes will happen today. Tomorrow, the WSLC will publish the latest edition of our Legislative Update newsletter. In the meantime, get bill status updates using our Legislative Tracker™. ► From AP -- Workers' comp bill advances in State Senate -- The Senate-approved measure would drastically change the state's workers' compensation system by establishing an option for lump-sum settlements. The 34-15 vote was a significant win for the business lobby, which has been trying to move the state away from prolonged payment benefits and pensions for injured workers.
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Washington State Ferries news:
► In the Kitsap Sun -- Gregoire, WSF unions announce deal to save money -- "These are the largest sacrifices in the history of the Washington State Ferries," Gov. Chris Gregoire said, praising the unions for participating in budget cuts to an extent unseen elsewhere in the nation. But even with the $30 million in new savings, Gregoire said she still expects some ferry runs to be cut. ► In the (Everett) Herald -- Seeking scapegoats, state lawmakers target ferry unions -- Once again, workers are being painted as the culprits. No excuses are being made for whatever mismanagement within our ferry system might have occurred, but it is dishonest to suggest that those rare incidents (profiled on KING-TV) are the norm, or that workers are to blame. Such inflammatory declarations may sell newspapers and TV advertising space, but they do not pass the sniff test of truth. They are little more than attempts to scapegoat working men and women.
The disconnect at the Department of Corrections: ► At SeattlePI.com -- Cuts to inmate programs concern state prison official -- Though he believes public safety won't take a hit if the governor's budget passes, Department of Corrections secretary Eldon Vail expressed worry about cuts to prison drug treatment and basic education. ► Last week -- Correctional employees picket in 'Fight for Safety' -- Correctional employees represented by the Teamsters, their families and their supporters took their fight for safety into their communities last week for an informational picketing action at 11 locations across the state to demand that the Department of Corrections, the governor and the State Legislature take immediate steps to improve staff safety at the DOC. Correctional employees at the action also said that it is incumbent on the Washington State Legislature to pass meaningful legislation this session that will improve safety conditions for staff in Washington State prisons. They cited several bills as critical to improving staff safety, including a proposal that would mandate a prohibition of mandatory overtime for nurses at the DOC and a bill that would provide interest arbitration for Correctional Employees. Read more of this March 3 posting. ► From AP -- Prison officials knew Scherf was a threat -- Shortly after he arrived at the Monroe prison complex a decade ago, Byron Scherf was the focus of corrections department warnings that read like terrible prophecy. The rapist is charged with the strangling of corrections officer Jayme Biendl.
Local news: ► In today's Seattle Times -- Agreement reached to stop burning coal at Centralia plant -- The state has reached a deal to get TransAlta to shut down the first of two coal-fired burners in 2020. The second will stop burning coal in 2025. In exchange, during intervening years, the company can sell coal power in-state under long-term contracts. Currently, the plant employs 300 people who earn an average of $88,000 a year. As a natural-gas facility, it will employ far fewer workers. But labor groups backed the deal because of the 15-year phaseout and the company's financial contribution.
► At SeattlePI.com -- Union: Seattle School Board missed warning signs in scandal -- Two Seattle school board members were warned in late 2008 that a contractor hired by Silas Potter was unlicensed, paying below-market wages and not following safety rules on construction sites at two elementary schools, according to e-mails between the school board and union officials. ► In today's Tri-City Herald -- Pasco farm worker housing awaiting licenses -- Although the remodel of two former downtown Pasco motels appears complete, Sea Mar Farmworker and Community Housing Development has yet to open the doors to farm workers and their families.
Boeing news:
► In the Seattle Times -- Rival knocks Boeing's "low-ball" tanker bid -- Airbus says there's a high risk that Boeing will lose money if there are any setbacks in developing and building the 179 tankers under the fixed-price contract, and are calling for "vigilant oversight" by the Pentagon. Boeing insists that its bid is financially sound and based on improved efficiency at its Everett plant. ► In the PS Business Journal -- Boeing 737 replacement plans begin to take shape -- As the executive creating the successor to the best-selling 737, Mike Bair is weighing billion-dollar decisions ranging from which material to use for the new plane's skin, to whether its passengers will get a meal. He says lessons from 787 snafus will help him steer the creation of a 737 replacement.
The War on Public Employees: ► In today's NY Times -- Talks to resolve Wisconsin battle falter -- Senator Fred Risser, one of 14 Democrats who left Wisconsin last month to prevent the Republican-dominated Senate from approving the collective bargaining measure, said it now seemed conceivable that he and his fellow Democrats would return to Wisconsin, at some point in the future, without a negotiated compromise. ► In today's Huffington Post -- Wisconsin Democrats propose border meeting with Gov. Scott Walker -- The Democratic state Senate leader has written a letter to Gov. Walker asking him to hold a meeting to resolve differences on his controversial budget at a neutral site along the Wisconsin-Illinois border. ► At AFL-CIO Now -- New poll: Wisconsin voters like teachers, but not Gov. Walker -- Yet another poll -- this one from a conservative think tank -- in Wisconsin shows the public is strongly opposed to Gov. Scott Walker's attacks on public employees' freedom to bargain for good middle-class jobs. ► In Sunday's Washington Post -- Wisconsin fight isn't about union benefits, it's about labor's influence (guest column by Yale and UC-Berkeley political science professors) -- In moments of candor, critics of unions reveal that their agenda transcends budget concerns. House Speaker John Boehner, for instance, decried an economic rescue package for states last year as a "payoff to union bosses and liberal special interests." But the goal of union opponents is not to exorcise "special interests" from American politics. It is to protect the special interests that represent corporate America and Wall Street from any serious challenge.
National news: ► In today's NY Times -- Degrees and dollars (Paul Krugman column) -- If we want a society of broadly shared prosperity, education isn't the answer -- we'll have to go about building that society directly. We need to restore the bargaining power that labor has lost over the last 30 years, so that ordinary workers as well as superstars have the power to bargain for good wages. We need to guarantee the essentials, above all health care, to every citizen. What we can't do is get where we need to go just by giving workers college degrees, which may be no more than tickets to jobs that don't exist or don't pay middle-class wages. ► At Huffington Post -- An overblown 'crisis' for state pension funds -- Many will need to make adjustments, but none are insurmountable. And to the extent that any face problems, they are long-term issues. Hence: No immediate crisis in state pensions. "They have time to make adjustments," said Keith Brainard, research director for the National Association of State Retirement Administrators. "The idea of imminent insolvency is a gross distortion." ► In today's Washington Post -- Parties clash over voting laws that would affect college students, others -- New Hampshire's new Republican state House speaker is pretty clear about what he thinks of college kids and how they vote. They're "foolish," Speaker William O'Brien said in a recent speech to a tea party group. "Voting as a liberal. That's what kids do," he added. Now, New Hampshire House Republicans are pushing for new laws that would prohibit many college students from voting in the state -- and effectively keep some from voting at all.
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Senate OKs lump-sum workers' comp buyouts Next week is the 100th anniversary of the passage of Washington's workers' compensation system. In exchange for this no-fault insurance program that pays medical costs and partially reimburses the lost wages of workers who suffer job-related injuries or illnesses, workers the gave up the right to sue their employers for damages. For a century, the law has been guided by this principle: "The welfare of the state depends upon its industries, and even more upon the welfare of its wage worker. ... Sure and certain relief for workers, injured in their work, and their families and dependents is hereby provided."
By a 34-15 vote, the Senate approved a workers' compensation bill that converts the system into an adversarial process by allowing employers to negotiate lump-sum buyouts -- in its supporters poll-tested language, "voluntary settlement agreements" or "compromise and release" -- that absolve employers of all current and future claims related to the injury or illness. The bill, SB 5566, was a striker amendment made public for the first time on Friday and passed Saturday without a public hearing or vetting by policy committee. Word leaked out Thursday in the halls of the Capitol that the lump-sum buyouts were to be included in a new bill. After Washington State Labor Council and other advocates for injured workers sounded the alarm, legislators received more than 1,200 emails from constituents urging opposition to lump-sum buyouts. But in the end, the vote seemed predetermined based on backroom negotiations between Senate leaders and business lobbying groups -- all of which issued ebullient news releases on Saturday in anticipation of the predetermined vote. "For 100 years, workers and employers have worked within this 'no fault' system where there was a premium placed on workers and their families receiving 'sure and certain relief' of their wage and medical loss and where there was a high degree of predictability and consistency," said WSLC President Jeff Johnson. "Those who either knowingly or naively voted to pass SB 5566 introducing 'compromise and release' into the system have chosen to replace 'sure and certain relief' with variability and chance. SB 5566 posits that everything in a claim is now open to compromise and as a consequence everything now becomes a dispute." Here is the roll-call vote for ESB 5566 (Democrats are listed in bold):
"Organized labor thanks the Democratic senators who opposed this bill and fought to protect injured and disabled workers' families from this unwarranted attack," Johnson said. "Now the fight moves to the House where we will strongly oppose this legislation." HOW WE GOT HERE Just last fall, Washington citizens voted overwhelmingly to preserve our state's low-cost public workers' compensation system by rejecting the business-backed Initiative 1082. But just two months later, powerful business lobbying groups convinced legislative leaders that their failure at the ballot box, rather than being a vote of confidence in the state's model system, required lawmakers to quickly pass "reforms" to lower its benefits to injured workers. Gov. Chris Gregoire requested the original version of SB 5566, which included some language supported by labor, but it also called for allowing limited lump-sum buyouts for certain injured workers who are 55 and older, plus it called for cutting permanently disabled workers off of their benefits completely when they reached the age of eligibility for Social Security benefits. The Washington State Labor Council opposed both benefits cuts, with WSLC President Jeff Johnson testifying: "The lens through which the labor community views changes to the workers' comp system is, 'how will it reduce long-term disability,' and not 'how will it lower costs to the system regardless of the outcomes to injured workers'." Business lobbying groups weren't happy either. They opposed the Governor's bill because the lump-sum buyouts were too restrictive and didn't apply to all injured workers. But after the backroom Senate negotiations, they got what they wanted. SB 5566, as reintroduced Friday and passed Saturday, eliminated the benefit cut for Social Security recipients, but EXPANDED the lump-sum buyouts to apply to ALL injured workers. It is now strongly supported by business lobbying groups and being billed by supporters as a compromise. WHY LABOR OPPOSES LUMP-SUM BUYOUTS "Compromise and release" lump-sum buyouts change our public system from a safety net into a lottery system weighted against workers. Instead of being about "sure and certain relief for injured workers," as the law requires, it becomes about who has the best lawyer, and who can cut the best deal. It creates an environment where workers are pressured to settle for less out of ignorance, desperation, or financial duress. Lump-sum buyouts are nothing more than a benefit cut for injured workers. Proponents know that. They are counting on the fact that workers will "compromise" their claims and "release" employers of all liability for LESS than their claims are worth. That's the only way this saves the system any money. And the money it "saves" comes straight from the pockets of Washington families who have lost their source of income due to work injury. Workers who are injured on the job, and particularly workers who are disabled due to those injuries and permanently unable to provide for their families, should not be subjected to legal negotiations to compromise. Nor can any settlement be considered "voluntary" when employers have the ability to appeal claims and drag out the process, as they do in other states that allow lump-sum buyouts, in a process that's become known as "starve and settle." Lump-sum buyouts don't fix the problem of severely disabling work injuries. The way to lower these costs is to get injured workers timely and quality medical care, to create a medical provider network that facilitates that process, and to help employers -- particularly small businesses -- return injured workers to work on light-duty status. That latter plan, to offer small employers subsidies to return injured workers to light-duty work, is included in SB 5566 as approved Saturday. (Because that idea was supported by labor, proponents of the bill are suggesting that it somehow "balances" the legislation and makes it a compromise between business and labor.) And bills supported by both business and labor interests remain alive this session to accomplish all three of the aforementioned proposals. WHAT NOW? "The Washington State Labor Council will work to defeat SB 5566 in the House and will continue to work with all legislators who have a desire to pass legislation aimed at lowering long-term disability in the workers' compensation system and continuing our enviable track record of having one of the lowest cost and best workers' compensation systems in the country," said WSLC President Jeff Johnson. SB 5566 now advances to the House, where business lobbying groups are calling for quick action so it doesn't get bogged down in the biennial budget negotiations that are about to consume state legislators' time and energy. The Washington State Labor Council and other advocates for injured workers will be getting the word out to our members about the threat to SB 5566. Stay tuned for word of when it will get its first public airing in House committee.
MONDAY,
MARCH 7, 2011 The following is a statement released Monday by Jeff Johnson, President of the Washington State Labor Council, regarding Saturday's Senate passage of ESB 5566:
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Copyright ©
2011
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Washington State Labor Council, AFL-CIO |