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 October 23, 2008


Oct. 22: Health care meeting in Wenatchee

Oct. 21: Helmets to Hardhats gets liaison

Oct. 20: Meanwhile, in addition to the election

WSLC Reports Today
Updated DAILY... Almost Every Day!™ by 9 a.m. Pacific

Links are functional at date of posting, but sometimes expire. 
WSLC Reports Today links to stories of interest to organized labor; 
some positive, some negative. The intention is to inform.


 

THURSDAY, OCTOBER 23

Dino Rossi wants to cut benefits for laid-off, injured workers
Part of the "change" that Republican Dino Rossi wants to bring to Washington is to make cuts in the safety nets for workers who are injured at work or who lose their jobs through no fault of their own. Rossi wants to make these cuts at the worst possible time -- not just for Washington's working families who unexpectedly lose their incomes -- but also for the small businesses in communities devastated by mass layoffs as we enter a national recession. Read more.

Boeing Machinists strike: Day 48
How you can help the strikers.  Also see www.iam751.org

▪  In today's News Tribune -- Strike mars Boeing earnings -- The first 3 1/2 weeks of the Machinists strike, along with supplier delivery problems, have taken a $551 million toll on third-quarter earnings.
▪  In today's Seattle P-I -- Boeing CEO (suddenly) sees room to negotiate -- "There's a way to work with the union to meet some of their goals," McNerney says during a conference call to discuss third-quarter earnings, which were severely affected by the strike.
▪  In today's Everett Herald -- Boeing CEO McNerney: "We want this strike to end" -- As talks resume today, the company strives for an agreement on job security and warns of possible layoffs.
▪  In today's Seattle Times -- Boeing, Machinists to resume talks, but optimism lacking --
Machinists union International President Tom Buffenbarger pours cold water on hopes of any quick restart to production: "I am not optimistic that we'll get a settlement. ... I am not deluding myself into thinking this meeting will be any different than the one in Spokane (on Oct. 13)."
▪  In today's Seattle Times -- Boeing profits dive; Execs admit strike isn't the only production problem -- A major supply-chain glitch is also harming profits. German supplier Sell was unable to deliver onboard galleys so that five to 10 wide-bodies couldn't have been delivered from Everett anyhow.

 

State election news:
▪  In today's Seattle Times -- Rossi: $15B road plan may have to wait -- Republican Dino Rossi acknowledged Wednesday he'd likely have to delay work on some of his major campaign promises — including a $15 billion road-building plan and tax cuts — if elected governor.
▪  From AP -- Rossi's backers assail Gregoire allies' money report -- The BIAW says it intends to sue the labor-backed PAC Evergreen Progress for failing to report all of its contributions on time.
▪  In today's Seattle P-I -- Another 'No" on I-985: Robbing education (editorial) -- The prospect of less money for schools with no tax cut in return is one of the frightening aspects of Initiative 985, the impatient person's poorly considered scheme for addressing traffic congestion.
▪  In today's Yakima H-R -- New Latino voters realize their importance -- Latino voter registration and turnout in the Yakima Valley has been low historically. But interest in the presidential race and an intensive voter-registration effort by Democrats and Latinos appears to be making a difference. 

 

National election news:
▪  In today's NY Times -- Sorry, I can't find your name (editorial) -- Voting rolls, which are maintained by local election officials, are one of the weakest links in American democracy and problems are growing. Some cases of mistakenly purged voters are no doubt the result of honest mistakes, but in far too many cases they appear to be driven by partisanship. While there are almost no examples in recent memory of serious fraud at the polls, Republicans have been pressing for sweeping voter purges in many states. They have also fought to make it harder to enroll new voters. 
▪  Today from AFP -- Sarah Palin dragging down Republican ticket, polls show --
Embarrassing revelations about her costly campaign wardrobe and bloopers about the vice president's job description are raising fresh fears that Sarah Palin is dragging down the Republican ticket. New polls released Wednesday show that she is seen as an increasing liability for Republicans. 

 

Local news:
▪  In today's Yakima H-R -- Lawmakers must halt runaway minimum wage (editorial) -- The law can be changed by simple-majority vote and it is clearly time to do so and stop the automatic hikes. Future increases should be determined by separate legislative action.
▪  In today's Olympian -- Hundreds of state jobs cut since July -- More than 800 state jobs have been eliminated statewide since July 31, shortly before Gov. Chris Gregoire ordered a hiring freeze.
▪  In today's Everett Herald -- Dozens of Snohomish County layoff notices go out -- About 75 planning workers have now been notified that their jobs will be gone in January. They are the first among 200 or more county employees expected to get pink slips within weeks.
▪  In today's Columbian -- Camas schools, union reach agreement -- A tentative agreement has been reached between the school district and the PSE, representing its classified employees.
▪  From AP -- Prison opening expansion delayed -- Facing a $30 million shortfall, the Department of Corrections will delay until February opening a 2,048-bed prison expansion in Connell.
▪  In today's Spokesman-Review -- Spokane jail has blown budget --
Sheriff says 23 vacant positions are creating big overtime bills, plus he's absorbed lots of unexpected inmate medical bills.

 

National news:
▪  In today's Washington Post -- Job losses accelerate, signaling deeper distress -- Employers are moving to aggressively cut jobs and reduce costs in the face of the nation's economic crisis, preparing for what many fear will be a long and painful recession.
▪  In the NY Times -- Greenspan concedes error in regulatory view -- Oh, don't be so hard on yourself.
▪  In today's LA Times -- The battle of the medical bills (Part 3 of a series) -- Doctors and insurers blame each other for an administrative headache that is driving up the nation's healthcare costs.
▪  In today's NY Times -- U.S. insurer of pensions has lost $2 billion -- The agency's losses this year foreshadow expected losses among corporate pension funds, state retirement systems and others that provide a financial backstop for an aging population.

 

THURSDAY, OCTOBER 23, 2008
Dino Rossi wants to cut benefits for laid-off, injured workers

By DAVID GROVES
Washington State Labor Council, AFL-CIO

Part of the "change" that Republican Dino Rossi wants to bring to Washington state is to make cuts in safety nets for people injured at work and those who lose their jobs through no fault of their own. Rossi wants to make these cuts at the worst possible time -- not just for Washington's working families who unexpectedly lose their incomes -- but also for the small businesses in communities devastated by mass layoffs as we enter a national recession. 

If you haven't previously heard about Rossi's positions on these cuts, don't blame yourself.  He only mentions them in front of the corporate special-interest groups that are financing his bid for Governor.  Among the rest of us, he is deliberately vague about how he intends to "improve Washington's business climate" for the same reasons he lists himself as "prefers GOP" instead of Republican on your ballot.  He knows his conservative Republican positions on these issues may please his base supporters, but they are out of step with Washington's working families and would kill his chances of getting elected if widely known.

Rossi recently got himself in trouble addressing the Association of Washington Business, when he let slip that he would like to establish a sub-minimum "training wage" in Washington state. In a previous article, we described Rossi's subsequent damage-control efforts, his false outrage over the criticism he has faced, and his demonstrated history of support for lowering Washington's minimum wage.

Dino Rossi has also told business groups that he would cut both Unemployment Insurance and Workers' Compensation benefits.  

As with the minimum wage, his stance comes as no surprise to those who have looked at his voting record on working families' issues.  In 2003, then-State Sen. Dino Rossi voted for the biggest cut in unemployment benefits in state history, which targeted construction and other intermittent workers with cuts of more than $200 a week. After that legislative session, an exuberant Rossi told AP reporter Paul Queary that those unemployment benefit cuts were "just the first step. We have to do more. We have to go farther." 

Fortunately, over the years since 2003, Gov. Chris Gregoire and the Democratic-controlled State Legislature have gradually restored those benefits nearly to pre-2003 levels. But now, Rossi is telling business groups he would like to cut those unemployment benefits again, at a time many in Washington face layoffs because of the national economic crisis. 

Speaking at the Port Angeles Yacht Club in September, the Peninsula Daily News reports that Rossi told a local builders' group that he wants to cut unemployment benefits again. He has reiterated that position in comments before regional Chambers of Commerce around the state.

It's another example of Rossi's trickle-down economic philosophy -- one that has failed spectacularly on a national level.  He wants to reward the very richest people and corporate special interests, while ignoring the needs of low-income and middle-class working families, assuming they will eventually benefit from more money at the top of the economic scale.  But Rossi's lack of compassion for families victimized by layoff would end up harming the very businesses he purports to serve.

One of the main purposes of unemployment benefits is to provide economic stability to counter the effects of unemployment and recession.  The U.S. Department of Labor estimates that for every $1 of unemployment benefits, $2.15 of purchasing power is created in local economies.  That means that during the recent recession in 2002, $2 billion in state and federal UI benefits paid in Washington state created purchasing power on Main Street of $4.3 billion, keeping a significant number of small businesses afloat.

In other words, as we enter a national recession in 2008 is the worst possible time to cut unemployment benefits if you want to mitigate the impact on small businesses in Washington.

Dino Rossi's lack of compassion for injured workers is especially disturbing. 

Rossi is very careful and deliberate when he says and repeats the phrase that our state workers' compensation system has "the third highest payouts in America." He wants his audience to assume that high benefits must mean that employers pay high taxes. 

They don't. In fact, Washington employers pay demonstrably less than employers in most other states. And Dino Rossi knows this.

Washington has one of the few workers' compensation systems remaining in the United States that has resisted privatization.  Our State Fund it is considered a model system among other states.  Why?  The system's most recent comprehensive performance audit found it to rank in the top 25% of states in terms of benefits paid, and the bottom 25% in terms of employer costs. Subsequent state-by-state rate studies have consistently ranked our state in the bottom third in terms of workers' compensation costs for employers.

High benefits, low costs. That's the best of both worlds. Right?

Not if you are Republican Dino Rossi and you are trying to convince voters that Gov. Chris Gregoire and the Democratic legislators have made Washington a horrible place to do business.  It's the same "Washington Sucks" mentality used by business lobbying groups in Olympia to get their special-interest tax breaks and deregulation amid the constant threat of taking their business -- and their jobs -- elsewhere.

Any objective look at Washington's business environment and economy argues the opposite. While we maintain worker-friendly policies -- like our voter-mandated minimum wage that is the highest in the nation -- our economy has fared better than many states around the country. Our unemployment rate is lower than the national rate. Analysts from outside the "Washington Sucks" echo chamber consistently rank our state as a great place to do business. (Forbes magazine says we're 3rd best in the nation.)

That makes candidate Dino Rossi's position all the more despicable. Here's a real estate salesman turned politician aiming to score political points by portraying workers who are injured on the job as harming our state's business climate with their exorbitant benefits. Clearly he has no understanding of what it is like to lose your income due to injury and no compassion for those who receive benefits that temporarily and partially replace their family's lost income.

Shredding their safety net is the kind of change Republican Dino Rossi wants for Washington.


For more information on others changes Republican Dino Rossi would bring to Washington, check out his voting record as a State Senator. His 6% voting record with the Washington State Labor Council ranks among the worst -- and most partisan -- of any state legislator during his 1997-2003 tenure in the State Senate.

Copyright © 2008 --  Washington State Labor Council, AFL-CIO