Liberal majority still entails cooperation By Jan Teague, President/CEO
In an article last week, David Lightman of McClatchy Newspapers reported on the close voting that is expected to occur in Congress with the Senate Democrats close to a super majority. The Senate could be filibuster proof pending two races that are still undecided. Lightman observes that even if a filibuster-proof Senate came to pass, many issues still need bipartisan support. In fact, he notes that some Democrats are less partisan and more issue based.
Lightman tells of coalitions from both parties taking on tough issues. He says that according to some Senators, moderates from both parties will be needed to enact complex issues such as health care. They don't want these issues to have a partisan hue. Health care and energy are both tagged as needing bipartisan support.
Lightman quoted Senator Susan Collins of Maine, who said there would be a lot of pressure put on moderates to support pet bills from "bipartisan gangs." She said that there would be a lot of "bipartisan gangs" next year.
Lightman's story reminded me of the make up of our state Legislature, where our Senate party makeup is similar to that of Congress.
As he reported on why having this super majority is important, Lightman gave a couple of reasons why it cannot always be counted upon for a final vote. Moderates of the same party, for example, don't always agree with liberals on issues and vote differently. And legislators also must consider diverse viewpoints in their districts before they cast their votes. Weighing all the views of constituents sometimes makes a legislator's final vote unpredictable.
The only real impact of having these super majorities is in the party discipline on procedural votes, such as those to cut off debate. Lightman speculated that the work of the Congress might get done quicker.
Lightman's story really read like he was reporting on the make up of our State Legislature. We are in a similar situation in our Senate. I hope Lightman is right and that his observations of the Congress apply to Washington state. I hope that there will be more bipartisan gangs working to solve very real problems that face our economy. We need all perspectives to help solve our tough economic problems.
Spokane council requires signatures for "living wage" vote
The Spokane City Council voted unanimously this week to require activists to gather a minimum number of required signatures to qualify a "living wage" proposal for the November, 2009 ballot.
Members of the Peace and Justice Action League of Spokane (PJALS) must gather at least 2,795 valid signatures of registered voters to qualify the item for the November city ballot. If passed, it would require retailers with stores of 95,000 square feet or larger to pay employees 135 percent of the state's minimum wage, or $11.54 an hour. It would apply to employees who work at least 16 hours a week and have passed a 90-day probationary period.
Mark Johnson, Vice President Government Affairs for the Washington Retail Association, testified in opposition to the proposal. He said a coalition has formed in opposition to the initiative and will meet early next year to plan strategies to defeat the idea. The WRA opposes any regulatory items that would increase costs to retailers struggling in the current economic downturn and recession.
Besides taking the action it did, the council also could have instituted a living wage on its own or placed the item directly on the ballot without requiring activists to gather signatures to quality for the ballot.
"We got the result we wanted," Johnson said of the City Council vote.
Instituting a living wage would result in several negative consequences, Johnson said. Faced with higher costs, certain employers would be less likely to hire or expand their businesses or they would locate or expand outside of Spokane city limits, he said.
Raising wage rates would put pressure on smaller retailers to increase their payroll costs to remain competitive, Johnson said. Higher labor costs in Washington also would encourage retailers to locate or expand stores in nearby Idaho, where labor costs are lower, he said.
"A living wage would make Spokane less competitive and would result in higher unemployment," Johnson said.
PJALS must gather enough signatures by July 1 to qualify the proposal for the November ballot.
Health partnership proposal postponed
The proposed Health Insurance Partnership (HIP) plan to provide coverage for low-income employees of small businesses has been postponed due to lack of state funding.
State government must eliminate up to a projected $6 billion shortfall in revenues for the next biennium through June of 2011. Canceling HIP is part of the state's cost control efforts to eliminate the revenue shortfall, Steve Hill, Administrator of the Health Care Authority, told HIP board members this week.
The Washington Retail Association has expressed concerns that the HIP program would have had negative impacts on association health plans, which have a long record of offering affordable health care coverage for smaller employers. HIP was to have begun in January of next year.
Source: Health Care Authority
Workers' comp insurance rates to rise
Premiums for workers' compensation insurance will rise an average of 3 percent in 2009.
Employers could see their rates rise or fall depending upon their recent claims histories, the Department of Labor & Industries announced this week.
The state will use $62 million from a reserve fund to hold the increase to 3 percent, said L&I Director Judy Schurke. She said actuary calculations and anticipated injury claims otherwise called for a 6.3 percent premium increase next year.
Schurke acknowledged the burden that higher insurance rates pose in the current state recession.
"We recognize the difficult economic environment for business and workers, and wanted to limit the increase as much as possible," she said. The increase means an approximate 2 cents per hours worked average increase in premiums, L&I reported. The 2009 rate tables by industry are available online.
Source: Department of Labor & Industries
HVAC/R solution slow in coming
Business and labor leaders failed to reach agreement this week on possible new training standards for heating, ventilation, air conditioning and refrigeration mechanics after a two-hour meeting of the joint Legislative Task Force on the HVAC/R industry.
The group met to discuss training proposals by Sen. Jim Kastama, D-Puyallup and Erik Pound, representative for a service technicians' union based in Renton.
The group scheduled a four-hour follow up meeting for Dec. 17 in hopes of reaching agreement on a training recommendation it can make to the Legislature in time for the upcoming 2009 session, scheduled to start on Jan. 12.
Mark Johnson, Vice President Government Affairs for the Washington Retail Association, has been monitoring the task force's progress. WRA opposes excessive certification requirements that would increase training costs for retailers.
The subcommittee is co-chaired by Rep. Steve Conway, D-Tacoma, and Sen. Jeanne Kohl-Welles, D-Seattle.
"It's unfortunate that during these negotiations, the views of consumers and several small WRA convenience store members are not being fully considered," Johnson said. "Hopefully, the final result will not mean increased costs for our members."
Johnson said a "turf battle" between unionized and non-union repair shops was responsible for a lack of progress on coming to agreement on recommendations to the Legislature. The Legislature has asked the group to make recommendations in time for consideration during the next session.
Two retail sales research firms this week reported modest national sales increases comparing this year's Black Friday shopping weekend with last year.
Sales last Friday and Saturday were up 1.9 percent, reported ShopperTrak RCT Corp., a research firm that tracks traffic and retail sales at more than 50,000 outlets. Meanwhile, sales at specialty apparel stores rose 1.6 percent this year on Friday and Saturday compared to the same two days a year ago, according to SpendingPulse, a data services provided by MasterCard Advisors.
Also, the National Retail Federation surveyed 3,370 consumers last weekend and reported the following results:
*An estimated 172 million shoppers visited stores, up from an estimated 147 million a year ago.
*Shoppers said they would spend a weekend average of $372.57, up 7.2 percent compared to $347.55 a year ago.
Michael McNamara, Vice President at SpendingPulse, said "amazing discounts" helped spur the modest increases in sales.
Sources: National Retail Federation; Associated Press
WashACE warns of state labor costs
The latest report from the Washington Alliance for a Competitive Economy warns that the state would be well advised to keep its labor costs in check.
"Washington is already among the most expensive places to run a business and have employees," the report notes. "It ranks near the top for business taxes overall, and has among the most expensive workers' compensation and unemployment insurance programs."
The state is facing possibly a $6 billion revenue shortfall for the biennial budget period ending in 2011. Richard Davis of WashACE has urged state lawmakers to hold the line on spending when they convene their next session in January. Davis heads the coalition of organizations working for a more competitive state business climate.
WashACE's report warns of the lessons of California, where the cost of doing business spiraled out of control.
"The accretion of costs has taken its toll on the state's dynamism," the report notes. "California has always been thought of as the golden destination for Americans, but for years, California has experienced a substantial out migration to other states. The Census bureau reports that in 2007, 263,000 more Californians moved to other states than people in other states moved to California."
Among costs and policies to control, WashACE suggests:
*Unemployment insurance. In 2006, Washington had the nation's second highest UI tax rate; it was 20 percent higher than Oregon, third highest in the nation.
*Liberal UI provisions that allow some workers to collect benefits if they voluntarily leave a job, rather than get laid off. Washington's per employee UI costs are two and a half times the national average, WashACE reports.
*Paid family leave. The state's original unpaid leave program has evolved into the proposed paid family leave program, though it currently is unfunded.
*Workers' compensation costs, currently the nation's third most expensive.
Such costs, left unchecked, could wipe out any natural benefits Washington has to offer to attract companies and jobs, WashACE warns.
"Washingtonians are probably unaware that doing business in their state carries a heavy price tag; so far, we have gotten away with it," the report concludes. "But allowing basic competitiveness to deteriorate while touting Mount Rainier and Microsoft does not constitute a sound economic development strategy."
Source: WashACE
Time magazine addresses the nation's health
As retailers and their employees grapple with the costs of health care insurance, the Dec. 1 issue of Time magazine offers a comprehensive look at the nation's health and its spending on health care.
The issue's cover piece, "America's Health Checkup", looks at U.S. per capital spending on health care (highest in the world), infant mortality rates and how Americans are doing in overcoming the leading causes of death.
The issue reports that health care spending could account for 20 percent of the U.S. economy in nine years. To read the cover piece, click here.
New local crime show debuts
Safeway's loss prevention director, Jason Moulton, reports on a new local television show that could assist retailers in their efforts to combat organized retail theft.
"Washington's Most Wanted" airs Friday and Saturday evenings on Q13 Fox and MQ2, both in Seattle. The show is produced in cooperation with Crime Stoppers of Puget Sound.
To learn more about the show's reports and program schedules, click here.
Sources: Q13 FOX, Crime Stoppers of Puget Sound
WRA Website adds new features
If you haven't visited the Washington Retail Association's Website recently, please take another look.
We're putting more information onto the site more frequently as we near the next Legislative session. The quicker pace of additions to the site will continue through the next session and beyond.
A new right-hand column on the homepage now includes periodic video and audio updates on important issues, recent news developments of importance to retailers and several Internal Revenue Service business-related links to help retailers prepare for the upcoming tax season.
Our hope is that WRA members and the public at large will increasingly rely on the Website to keep abreast as issues related to retailers and their well-being surface or change.
And, of course, we invite your feedback and suggestions.
Please contact Jim Szymanski, Director of Public Affairs, with any thoughts you have regarding the additions to the site or further changes you believe might be useful. You can reach Jim either at 360-943-9198, Extension 12 or at jim.szymanski@retailassociation.org.
Washington Retail Association | 618 Quince St SE, STE A | PO Box 2227 | Olympia | WA | 98501
The Washington Retail Association, WRA, is a 501 C 6 trade association formed to advocate for Washington State’s retailers at the local, state and national level. Since 1987, the WRA has protected Washington's retailers from unreasonable taxes, fees, regulations and legislation. The efforts of the WRA benefit all Washington state retailers and help fuel statewide economic growth.
