2005 Legislative Positions

CIVIL RIGHTS  

The Federation supports fair treatment and non-discrimination in employment by public and private sector employers. 

A person should be judged on his/her merits and not on characteristics ascribed to a group.  When such discrimination occurs, Iowa laws should provide just causes of action and remedies.

We support the following changes to the Iowa Civil Rights law:

  • Add a state Equal Pay Act and Fair Pay Act;

  • Add sexual orientation and gender identity as an affected class.

The right of workers to choose to join unions is a fundamental right, like other basic rights such as freedom of religion and the right to work free from discrimination based on race, gender or age.  But when workers try to form or join a union today, employers nearly always violate workers’ fundamental rights with tactics designed to suppress the freedom to organize.  The law must ensure that workers who attempt to exercise their freedom to join a union have a meaningful right to bargain that results in a contract on fair terms.  Lawbreakers must be held accountable for their conduct, with remedies and penalties commensurate with the offense, so that labor law violations are dealt with as seriously as violation of employment discrimination, antitrust and environmental laws.

CONSTRUCTION

The Federation supports the use of Project Labor Agreements (PLAs) on public works construction projects throughout the state of Iowa.  PLAs help to ensure that all workers on a project have fair wages and working conditions, as well as representation on the job.  We continue to oppose any effort to repeal or diminish the rights of public officials to utilize PLAs for public works construction projects in Iowa.  

The Federation supports a revision of the Iowa Public Bidding Statute to require that contractors be responsible to their employees and the community.  This would include criteria such as participation in US DOL registered apprenticeship training programs, maintaining a good safety record, participating in regular and effective safety training for employees and paying the area standard wages and fringe benefits, in all project specifications for construction contracts funded fully or in part by the state.

The Federation supports adoption and rigid enforcement of effective building codes, including the Uniform Plumbing Code, in all Iowa communities.  We urge the legislature to require Iowa communities to adopt such codes to protect the safety and the property of its residents.  

The Federation supports adequate funding to meet the maintenance and vertical infrastructure replacement needs of state and local governments, including additional funding for the Vertical Infrastructure Fund within the Rebuild Iowa Infrastructure Fund.

ECONOMIC DEVELOPMENT

The Federation supports requiring above average wages and health care as a condition of receiving any economic development assistance.  Firms with a record of labor law violations or union busting should be disqualified.

These requirements should apply to all economic development incentives, including property tax abatements, corporate income tax credits, enterprise zones, tax-free low-interest loans, Tax Increment Financing (TIF), infrastructure assistance and training grants, as well as programs such as the Iowa Values Fund and the Community Economic Betterment Account (CEBA). 

To determine the effectiveness of any subsidy, credit or tax cut, Iowa should annually, on a firm by firm basis, collect, analyze and publish the data necessary to evaluate whether these programs are working.  Such data should include, but not be limited to, the following:

  • Public funds received for each economic development program;

  • Tax credits, by credit;

  • Property tax reductions and abatements;

  • Number of net jobs created and hourly wage information;

  • Value of tax expenditures.

All economic development agreements that provide subsidies to businesses should require repayment if the conditions of the agreement are not met.   

Any contracts funded with state dollars and any state-funded development assistance should not be awarded to entities that perform the work at the site outside of the United States.

EDUCATION

The Federation supports a world-class education for our children through a fully funded public school system that encompasses early childhood through university education.   

Because of budget cuts, education is under unprecedented assault: K-12 education is faced with teacher and support staff reductions and schools are short of textbooks and other education supplies; financial barriers to higher education (universities, colleges, community colleges) are growing due to exploding tuition costs.

The Federation supports a re-write of the school foundation formula to address funding problems and inequities in the K-12 education system. A new school foundation formula should generate enough revenue to provide adequate funding for infrastructure and technology, as well as for salaries for teachers and other school employees. This rewrite should eliminate the problems that are built into the current system, including inequities between both property rich and property poor districts and sales tax rich and sales tax poor districts.

Iowa should continue to encourage school mergers, distance learning and sharing arrangements.

ELECTION REFORM

The Federation supports:

  • Spending limits on campaigns and public financing of campaigns.

  • Election Day registration to allow easier access to voting for all our citizens.

  • Continuation of the early voting program.

ENERGY POLICY

The Federation opposes deregulation or municipalization of the electric utility industry unless there is full protection for utility workers’ jobs and wages and benefits, assurances of affordable, reliable and safe electric service for consumers and adequate protection for the environment.

FAIR SHARE

The Federation supports legislation that would allow Iowa private sector and public sector unions to negotiate “fair share” clauses into collectively bargained labor agreements. 

Such a clause would require an employee covered by a union contract, as a condition of employment, to pay a “fair share” fee to cover the union’s representational activities.  A “fair share” clause would ensure that all workers covered by and benefiting from the contract would share in the cost of the service provided.

FAMILY AND MEDICAL LEAVE

The Federation supports paid family and medical leave benefits for workers who are employed by employers with four or more employees, including the state and its subdivisions.

HEALTH CARE

The Federation supports health care reform that extends access to affordable, quality health care to all Iowans, including:

  • Affordable Prescription Drugs for all Iowans.

  • Mental health parity.  Insurers should be required to cover mental illnesses, including alcoholism and substance abuse, in a manner equal to coverage for other illnesses.  

  • Full funding of Medicaid

  • Collection and disclosure of the names of the employers of applicants for publicly funded health care programs such as Medicaid and SCHIP, including disclosure of the total cost to the State of providing public health care benefits for the employees and enrolled dependents of each named employer.

  • Safe staffing rations in health care facilities and nursing home to ensure that patients get the care they need.

  • Limits on mandatory overtime for health care workers,  Increased workloads are leading to a critical shortage of health care workers.  Overworked employees compromise patient safety.

  • Increased funding for home care programs and the right of home care workers with independent contractor status to organize a union and bargain collectively.

The Federation opposes:

  • Medical Savings Accounts (MSAs).  These accounts will benefit primarily healthy, wealthy individuals and will neither control costs nor enhance the quality of care.  MSAs may provide an incentive to participants to postpone or deny themselves necessary health care and could drive up the cost of health insurance.

  • Limits on medical malpractice lawsuits.  Medical negligence cannot be reduced by restricting consumers’ legal rights.  In fact, the threat of lawsuit may force providers to act more responsibly.  Arbitrary limits tend to deny proper compensation for those who are harmed the most.

HUMAN NEEDS

The Federation supports:

  • Provision of positive learning and training experiences needed by welfare recipients to reach the goal of permanent, unsubsidized employment.  We encourage welfare agencies to assess the skills, interests and abilities of welfare recipients and to develop educational programs that will fit the needs of the employees.

  • Funding for high-quality childcare to make it more available and affordable for Iowa’s working families and also provide living wages for childcare providers.

  • Adequate funding for transportation needs.

  • Health care coverage for low wage workers.

  • Affordable housing.  Iowa should dedicate real estate transfer tax revenue to the State Housing Trust Fund for distribution to local housing programs in order to meet low- and moderate-income housing needs.

  • Adequate funding for Legal Services Programs.

  •   Workplace policies that apply equally to welfare recipients, including equal treatment with regard to wages, benefits and working conditions.  Welfare workers who are forced to “work off” their checks are often expected to do the same work as other employees, but for a fraction of their pay, with no sick leave, no vacations, no pensions or other benefits.  This is unacceptable.  The Federation opposes replacement of regular employees or jobs, in whole or in part, by welfare recipients.

INDEPENDENT CONTRACTORS

Some workers, who are, for all intents and purposes, employees, are treated as if they are independent contractors.  As a result, the employer is not obligated to provide unemployment and Workers’ Compensation for them. 

The Federation supports legislation that reflects the distinction between employees and independent contractors and prohibits employer avoidance of their obligations.

PRISON LABOR

The Federation opposes the use of prisoners to replace free workers.

The Federation encourages programs that educate and train inmates to re-enter society and become productive citizens.   Such programs must comply with prevailing wage requirements and have no adverse impact upon public or private sector workers.

PRIVATIZATION

The Federation opposes contracting out of public work. 

Private firms have little or no public accountability and are less responsive to citizen needs.  They are motivated to make profits rather than deliver high quality services. 

Contract employers traditionally pay poor wages and benefits, which are not sufficient to raise and support a family. Yet there is no evidence to indicate that privatization results in lower costs. That is because “savings” from lower employee costs simply accrue to the contractor. 

In addition, the state may have to provide assistance for such low-income workers, as well as suffer a decrease in tax revenue.

PUBLIC EMPLOYEE COLLECTIVE BARGAINING

The Federation supports the inclusion of all wages, hours and terms and conditions of employment as mandatory subjects of bargaining.

SAFE WORKPLACES

Every worker in the state of Iowa should be provided safe and healthy working conditions.  Employees should not suffer declining health, declining functional capacity or shorter life expectancy due to their work experience.  It is inexcusable that we are in the bottom tier of states in the ratio of safety and health inspectors to workers.  This lack of enforcement personnel allows employers to violate safety and health standards with little or no risk of being sanctioned.  We support Iowa OSHA, whose goals include reducing injuries and illnesses in the workplace.  To help reach those goals, the Federation supports the following:  

  • The fulfillment by the State of Iowa of its obligation to provide enforcement personnel and clerical, technical, supervisory, legal and administrative staff at levels that will ensure the safety and well-being of Iowa workers.

  • Minimum guarantees of staffing levels in prisons and jails, as well as adequate education and other effective strategies for reducing the risk of inmate assaults and violence within our corrections systems.

TAXES

The Federation supports a progressive tax system that is fair, equitable and provides for the legitimate needs of Iowa residents.

A progressive system bases taxes on ability to pay.  That is, if one compares the total amount paid in income tax, sales tax and property tax as a percentage of income, the greater the income, the greater the percentage of that income that is paid in taxes.

Iowa families in lower income brackets pay more, in percentage terms, than do the richest Iowans.  It is offensive in that the poor and middle-class are forced to pay more than the rich.  It is also an ineffective revenue strategy in that those whose income and wealth are the highest – the rich – pay less.

The past several years have been marked by insufficient state revenue due to excessive tax cuts and a sluggish economy.  Spending has been slashed, and as a result, significant problems have arisen.  For example: schools have cut teachers and support staff, state universities have raised tuition, more Iowans are without health care, unfunded reimbursements to counties and cities have caused cuts at the local level, there are not enough caseworkers to address the needs of abused children, not enough correctional officers to keep prisons secure, not enough inspectors to enforce OSHA laws, not enough deputies to hear Workers' Compensation cases.

A number of changes could be made that would generate the necessary revenue to meet these legitimate needs and at the same time make Iowa taxes more progressive:

  • Eliminate federal deductibility on personal and/or corporate income tax.

  • Reinstate the income tax rate in effect prior to the 1997 across the board income tax cut.

  • Close corporate loopholes.

  • Expand the sales tax base to include services.

  • Institute income-based sales tax credits and/or property tax credits.

  • Increase the earned income tax credit for low- and moderate-income families.

Tax Cuts

The Federation is opposed to tax cuts when there are so many unmet needs.  We should, in fact, consider eliminating, or at least temporarily suspending, some of the tax cuts already enacted. 

The Federation opposes taxes that treat one source of income differently than another.  A dollar of income, no matter what its source, is equal and should be treated equally by the tax system.

Social Security Benefit Tax Cut

 

 

 

 

The Federation opposes any further tax exemptions for Social Security income.  Under the current system a couple pays no tax on Social Security income unless their total income is above $39,000.  Under no circumstance is more than 50% of Social Security income subject to income tax.  An exemption of all Social Security income would benefit only those seniors with incomes above $39,000 and would cost the Treasury $50 million.

Pension Income

The Federation opposes any further exemption of pension income from the Iowa income tax.  Current law exempts the first $12,000 of pension income ($6,000 if single).  The benefit would go to upper income people and treats one source of income differently than others.

Capital Gains Tax Cut

The Federation opposes this cut.  Benefits would go primarily to upper income people and treats one source of income differently than others.

 

 

Other Tax Issues

Tuition Tax Credit The Federation opposes the use of public dollars in the form of vouchers, tuition tax credits or deductions, which would reduce the funding available to public education.  
Inheritance Tax   The Federation opposes cuts in the inheritance tax.  The tax has already been eliminated for lineal descendants and ascendants.  The tax for those outside of that category should remain, as it is relatively progressive and does not cause an exodus of Iowa residents.  
Sales Tax  
The Federation opposes raising either statewide or local option sales taxes, unless a portion of the revenue generated is devoted to a system of refundable tax credits that would eliminate the regressiveness of the increase in the sales tax.
The Federation supports keeping the sales tax less regressive by exempting essentials, such as food, prescription drugs and utilities, from the sales tax base, and by expanding the sales tax to other goods and services that are currently exempt.  
Corporate Tax  The Federation supports combined reporting of corporate income to close corporate tax loopholes, thus making sure that multi-state corporations pay their fair share.  
Tax Referenda  

The Federation opposes citizen referenda to make state taxing and spending decisions. 

The role of our elected representatives at the state level is, on behalf of the citizens who elected them, to determine the policies and programs in which the state will engage, and to levy the taxes to fund these policies and programs.  Proposals to use a referenda to set taxes strip the legislature of its constitutional responsibility in a representative democracy.  The outcomes of such referenda hinge entirely on the ability of interest groups to spend massive sums of money to influence citizen voting decisions through the technology of modern communications, thereby undermining the practice of direct democracy such referenda are designed to promote.

UNEMPLOYMENT COMPENSATION

The Federation supports legislation that would allow more Iowans who are unemployed through no fault of their own to receive benefits.

There are hundreds of millions of dollars in Iowa’s unemployment trust fund.  Employers continue to contribute at low rates.  At the same time, only about half of unemployed Iowans receive benefits.  Thousands of individuals who are totally or partially unemployed through no fault of their own are denied unemployment benefits due to technical regulations.  Iowa should:

  • Eliminate the high quarter ratio requirement.  Currently, a worker’s base period earnings must be 1-1/4 times the high quarter earnings.

  • Institute a moveable wage base.  Allow the applicant to use the last four of the five preceding quarters of earnings instead of the first four if they lack qualifying wages.

  • Extend unemployment benefits to victims of domestic violence.

The Federation opposes the use of unemployment trust fund money or the interest generated by the fund for anything other than benefits to unemployed Iowans.

WAGES

The Federation supports increasing the Iowa minimum wage and indexing it to future inflation. 

The current minimum, which was last raised in 1997, is inadequate. It has not kept up with inflation.  If the wage had kept pace with inflation since 1968 when it was $1.60 an hour, minimum wage would have been $8.71 an hour in 2004.      The current minimum wage leaves a family of three 33 percent below the poverty line.

The Federation supports state legislation to restore the right to overtime pay for those workers who were covered by the FLSA prior to August 23, 2004.

WORKERS’ COMPENSATION

The Federation supports:

  • Employee choice of doctor.  A basic tenet of adequate health care is the right of individuals to choose their medical providers.  This choice provides faith in the medical provider and often leads to quicker recovery.  Current Iowa law gives the employer the choice of provider for an injured worker.  This eliminates patient faith as well as raises questions about the loyalties of the medical provider.

  • Legislation that will prevent the release of Workers’ Compensation records to firms which blacklist workers and establish appropriate penalties in the event workers’ medical privacy rights are violated.  There is a growing “industry” of for-profit information-gathering firms that collect Workers’ Compensation claims records, including medical information, and sell it to employers for “screening purposes.”  Certain firms have been obtaining Workers’ Compensation records from the state of Iowa and using them to blacklist Iowa workers.

  • Development of a program of vocational rehabilitation that provides adequate compensation for injured workers while undergoing rehabilitation and that results in meaningful employment for injured workers who complete the program.

  • Funding for additional Workers’ Compensation Division staff to provide a reasonable time frame for resolution of disputed cases.  Over the past several years division staff has been cut from 34 to 21.  Similar size states have five times as much staff.  In 2003 disputed cases (not including appeals) took an average of over 600 days to resolve, from filing of the petition to date of decision.  Such delay is longer than in most other states and “starves out” sick and injured workers, who, out of necessity, are often forced to settle for less than their rightful benefits under the Workers’ Compensation laws.  This is unacceptable.  Justice delayed is justice denied.

The Federation opposes:

  • Cutting benefits for injured workers by allowing employers to take a credit for, or apportion, pre-existing conditions.  Expanding the ability of employers to apportion compensation payments made to employees who suffer more than one work-related injury would destroys the effective balance between the interest of employers and the well-being of injured workers and imposes undue hardships on injured workers and their dependents by shifting the fiscal responsibility for support following a work-related injury from the employer to the injured employee.