January 2006

2006 Iowa Legislature Convenes in January

Gridlock Likely Over Labor Agenda

When the Statehouse doors open for the 2006 session of the Iowa Legislature on January 9, legislators begin 100 days of consideration and debate on a wide range of issues affecting Iowans.  But when it comes to labor issues, the very composition of the Iowa House and Senate make it next to impossible for good labor legislation to be passed. 

In the Iowa House, with 51 Republicans and 49 Democrats,  progressive legislation is almost certain to be buried in “business-friendly” Republican-controlled committees and never see the “light of day.”  In the Senate, where control is equally split between 25 Republicans and 25 Democrats, the leader of each party (Democrat Mike Gronstal and Republican Stewart Iverson) decides whether or not each piece of legislation will be debated.  If either leader opposes debate, the legislation dies without even having been voted on.

There are, however, some fundamental issues that cry for common sense solutions and should rise above partisan gridlock:

Minimum Wage

The current rate—a pathetic $5.15 per hour— has been frozen since Congress last raised it in 1997.  The legislature has the power to raise the minimum wage in Iowa, even if Congress won’t do so for the country.  Legislatures in Illinois ($6.50), Wisconsin ($5.70), and Minnesota (large employer - $6.15, small employer - 5.25), as well as 13 other states,  have set their minimum wage rates higher than the federal rate.  The Iowa Legislature should raise the minimum wage.  The Federation is supporting a raise to $7.25 over two years.  

Education

Spending on education amounts to $3 billion each year out of the $5 billion budget.  Yet teacher pay in Iowa has dropped to 42nd in the country.  Wages and benefits for other school personnel are also at inadequate levels.

Tuition costs at both community colleges and state universities have exploded in direct response to decreased state funding, putting a heavy financial burden on students and their parents.  The legislature should, at a minimum, fund higher education at a level that will not require further tuition increases for students.

Taxes

Over the last 8 years, Iowa taxes have been cut by well over $1 billion per year.  As a result, there is not enough money available to adequately fund education, as well as other essential needs of Iowans.  The legislature should follow the rule of holes—when you’re in one, quit digging.  No more tax cuts.

IPERS

The Iowa Public Employee Retirement System (IPERS) is underfunded.  We should pass the legislation necessary to adequately fund the system without making employees pay a higher percentage than they are paying now.

Unemployment Compensation

Nearly one-half of the 80,000 Iowans who are unemployed through no fault of their own are denied unemployment compensation.  The legislature should modify the rules so that more Iowans can qualify. 

In addition to the above, the Federation will be pushing for the bills described below, as well as guarding against any anti-worker legislation that is proposed.

The Worker Freedom Act

      The Worker Freedom Act would make it unlawful for an employer to require its employees to attend or participate in meetings regarding issues not related to job performance, namely, religion, politics or labor organizing.  Increasingly, employers are using the workplace to force their political, religious and labor organizing viewpoints on workers.  Employees should not be forced to attend closed door meetings where they are subjected to indoctrination on issues unrelated to their job performance and should not have to fear retaliation for expressing opposing viewpoints.

Fair Share Health Care Act

      The Fair Share Health Care Act requires large, profitable corporations — like Wal-Mart — that provide inadequate or no health care benefits to contribute to a health care fund that could be used to help pay for public health programs such as Medicaid.  This would help prevent these large employers from shifting their costs onto workers, taxpayers and other businesses. 

Nonstandard Jobs, Substandard Benefits

The number of uninsured Americans may be greater than the commonly reported figure of 46 million, according to a new study released by Senator Tom Harkin (D-Iowa).

The study suggests that the official government survey tracking health insurance coverage nationwide understates the number of Americans without health insurance by failing to identify individuals who report having insurance, but in fact possess only a medical discount card.

Discount cards, as opposed to health insurance policies, offer very limited benefits and consumers are responsible for paying all claims and the full cost of services up front.

The study, “Nonstandard Jobs, Substandard Benefits,” was conducted by the Iowa Policy Project (IPP) and completed under a grant from the U.S. Department of Labor and additional funding through The Commonwealth Fund.

MEDICARE FOR ALL

The health care system in the United States is broken. Forty-six million Americans don’t have health insurance.  Millions more have coverage, but it is inadequate.  The uninsured do, however, get health care, but it is often delayed (An estimated 18,000 die, partly because they wait until they are seriously ill before seeking attention) and becomes expensive emergency room care, the cost of which is borne by the insured through higher hospital and insurance costs.

Most Americans get their health insurance through their employer.  But faced with double digit increases in premiums, employers are increasingly shifting the costs to employees through higher co-pays and deductibles, higher premium cost-sharing, and/or cuts in coverage.

Provides Universal Coverage

A Medicare For All system would insure everyone.  In a recent poll 65% say that government should guarantee health insurance for everyone.  Yet, there is opposition, and it’s well financed.

• Drug companies are worried such a system would cap the prices on prescription drugs and cut their profits.

• Businesses are philosophically opposed and want a "market-based" solution. Ironically, health care costs are making many businesses uncompetitive.  For example, it costs General Motors $1,500 per vehicle to provide employee health care in the U.S.

• Health insurance companies are concerned that their business would be eliminated

At A Lower Cost

The most efficient health insurance in the U.S. is Medicare.  Its overhead is 2%-3% of revenues, in contrast to private sector plans with 15%-20% or more overhead.  Extending Medicare to cover all Americans would save a significant amount of money just in overhead.  Additional cost savings would accrue as Medicare sets limits on what doctors and hospitals charge.  A recent National Coalition on Health Care study cited in a 12/7/05 Des Moines Register editorial, concluded that a taxpayer-financed system covering all Americans would save $1.1 trillion over 10 years.

Some people argue that Medicare For All would be “socialized medicine” and would not provide good health care.  Do you know any current Medicare recipient who wants to give up their Medicare?

We muddle along with an expensive system that leaves many out.  There is a better alternative.  We just need the political will to implement it. 

Believe It or Not

     According to Business Week (12-04-05), President George W. Bush is “seriously considering” taxing workers on the value of employer-paid health insurance.  You’d think with a majority of Americans opposing his policies, like his plan to privatize Social Security, which went down in flames, the President would quit dreaming up ways to beat up on working people.

Workers’ Rights

Are U.S. Workers Really Free to Form Unions?

In recognition of International Human Rights Day, events were held in Iowa by the Black Hawk Union Council, AFL-CIO in Waterloo, the North Iowa Nine Labor Council, AFL-CIO in Mason City, the Quad City Federation of Labor, AFL-CIO in Davenport, the South Central Iowa Federation of Labor, AFL-CIO in Des Moines and the Southern Iowa Labor Council, AFL-CIO in Ottumwa.

      A common concern voiced at the Iowa Human Rights Day events is the widespread anti-union behavior of employers when workers want to form a union.  A December 2005 survey by the Center for Urban Economic Development found that:

• Thirty percent of employers illegally fire workers for supporting a union.
• Forty-nine percent of employers illegally threaten to shut down the workplace (only two percent actually do).
• Fifty-one percent of employers coerce workers into opposing unions with bribery or favoritism.
• Eighty-two percent of employers hire union-busting consultants to fight union organizing drives.
• Ninety-one percent of employers force workers to attend meetings where they must listen to anti-union rhetoric.

A recent study released by the group American Rights at Work found that in union organizing drives utilizing the National Labor Relations Board (NLRB) election process, 91 percent of the time, prior to the election process, a majority of the workers in units included in the study indicated that they wanted a union.  However, after the election process began and after workers were exposed to weeks or months of the employer’s union-busting activities, only 31 percent of the organizing campaigns studied resulted in a majority vote to form a union.  Clearly the intimidation, firings, bribes, and threats are pervasive and greatly impede workers’ ability to form unions.

Sadly, more than 23,000 workers are fired or penalized illegally each year in the United States as a result of their participation in or support of union organizing drives.

A final hurdle for workers wanting to form a union comes after they have won the election! All too often, employers refuse to negotiate a first contract—support for the union ebbs after months or years of inaction—and eventually the union is decertified.

The Employee Free Choice Act (EFCA), which has been introduced in Congress, eliminates the hurdles that workers face when exercising their right to form unions.

First, the EFCA would replace the flawed NLRB election process with card check elections (see details on “card check” below). The EFCA also provides for first contract mediation and binding arbitration—a process that assures a first contract and ends the common employer ploy of undermining the union by refusing to negotiate.

Finally, the EFCA establishes increased penalties for employers who illegally penalize or fire workers.  Current penalties are so inadequate that many employers, after lengthy legal delays, simply pay the penalties—accepting them as part of the cost of defeating the union.

Senator Tom Harkin (D-Iowa) and Representative Leonard Boswell (D-Iowa) are co-sponsors of the EFCA.

Human Rights for Workers

December 10 marked the anniversary of the Universal Declaration of Human Rights by the United Nations in 1948.  The Declaration sets out fundamental economic, cultural, social, political, and civil rights for all people.  Article 23 of the Universal Declaration states:

1. Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment.

2. Everyone, without any discrimination, has the right to equal pay for equal work.

3. Everyone who works has the right to just and favorable remuneration ensuring for himself or herself and his or her family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.

4. Everyone has the right to form and join trade unions for the protection of his or her interests.

Card Check Elections 

      In a “card check” election workers elect whether they want a union to act as their exclusive bargaining representative by signing an authorization card.  If the EFCA becomes law, when a majority of workers have signed cards, employers would have to recognize the union.  (Under current law, employers are under no obligation to recognize a union that is designated as a bargaining representative through a card check.)

Budget Cuts, Katrina Victims & Tax Breaks for the Wealthy

The Con Game the Republican Congress is Playing on America

You’d think that with household median income down, poverty up, jobs flowing overseas and the number of people protected by pensions and health care insurance plummeting, the powers that be would feel compelled to take extraordinary measures to address the difficulties facing working families.  You’d be wrong.      Under the guise of needing to “get the budget under control,” and “to cover the cost of relief to Hurricane Katrina victims,” Iowa’s Congressman Nussle, as House Budget Chair, has led the way, not in helping the middle-class, but in cutting Medicaid, child support enforcement and child care—to the tune of $39.7 billion.

The Nussle plan, previously passed by the House, contained $50 billion in cuts to programs that benefit the middle-class.  After passing those middle-class budget cuts, the House promptly turned its attention to tax cuts for the rich.  In a series of votes, the House handed out $94 billion in tax cuts, largely benefiting the rich.

While the House was cutting taxes the Senate was drafting its own version of the middle-class benefit cuts previously passed by the House.  After the legislative process worked its course, the House and Senate agreed to $39.7 billion in benefit cuts that focused on cuts to the federal Medicaid program. (the House must vote on Senate technical changes before the bill is sent to President Bush).

Meanwhile, the tax cuts passed earlier by the House remain eligible for consideration by the Senate.  What action the Senate might take on those cuts is purely conjecture, but an extension of the Bush dividend and capital gains tax cuts seems likely.  It is also very likely that “when the smoke clears” and final action has been taken on tax cuts, the bottom line will show that the budget is further in the red than it was before Congress set out to “get the budget under control.”

A few moderate Republicans, including Iowa Representative Jim Leach, joined Democrats

in opposing this budget sleight-of-hand.  Still, with only a handful of dissenting Republicans, Nussle and the majority Republicans in the Congress prevailed. 

In 1991, a young Jim Nussle wore a paper bag over his head in Congress in a publicity stunt to show he was ashamed of the actions Congress was then taking.  Now, as Budget Chair, Nussle is leading the charge to provide tax cuts to the rich by cutting programs for the poor.  Congressman Nussle, where’s the bag?

It is sad when our representatives in Congress falsely portray the cutting of programs for the poor and middle class as necessary and appropriate “budget-controlling” measures and as sacrifices required in order to provide much-needed assistance to Katrina victims.  This is a false portrayal because simple math (see box) proves that the tax cuts that followed the spending cuts ate up all, and then some, of the savings created by the budget cuts.  The money cut from middle-class programs didn’t go to balance the budget, nor did it go to Katrina victims, instead it was used to provide more tax cuts for the rich.

It is reprehensible that, not only are the rich spared from the sacrifices being asked of the middle class, but they become beneficiaries as they receive yet another round of tax cuts.

If you want to see how your Representative in Congress voted on these and other issues of vital importance to workers and their families, see the chart on the opposite page.

Who’s On OUR Side?

MIDTERM REPORT CARD: IOWA DELEGATION—U.S. HOUSE

Now that Congress has completed the first half of its term, the AFL-CIO has compiled this Mid-Term Report Card  on Iowa’s delegation in the U.S. House.  The Report Card lists the votes and positions of our five U.S. Representatives that are of particular importance to Iowa’s workers and their families.

Nussle

ISSUE

Jobs & Wages

Retirement Security

Health Care

 Tax Fairness

Education

*Congressman Boswell missed several votes during the fall of 2005 as the result of a lengthy hospitalization and recovery.

Primaries Loom Large in Iowa Governor’s Race and Contest for First District Congress

 A Crowded Governor’s Race

Four Candidates Have an AFL-CIO Voting Record

A Full Field for First District Congressional Race

Both Democrats and Republicans Have Contested Primary Elections

An Iowa legislator, a member of Congress, a small-town mayor, the Secretary of Agriculture, the Secretary of State, the former director of the Department of Economic Development, an engineer, a local political activist and a business consultant make up the field of candidates that over the next year will be winnowed to one—Iowa’s next governor. 

      Democrat Mike Blouin of Des Moines, the former director of the Iowa Department of Economic Development has served in both the Iowa Legislature and the U. S. Congress.  In the Iowa Legislature, he compiled a lifetime record of supporting the Iowa AFL-CIO position 100% of the time.  His lifetime record for supporting the AFL-CIO position while in Congress is 81%.

Democrat Chet Culver of Des Moines, a former high school government and history teacher and coach, is currently serving his second term as Iowa Secretary of State.  As Secretary of State, Culver has not established an AFL-CIO voting record.

Democrat Ed Fallon of Des Moines, who is serving his seventh term in the Iowa House, has a lifetime record of supporting the Iowa AFL-CIO position 88% of the time.

Democrat Patty Judge of Albia is serving her second term as Iowa Secretary of Agriculture.  She previously served two terms in the Iowa Senate where she has a lifetime record of supporting the Iowa AFL-CIO position 83% of the time.

Republican Jim Nussle of Manchester, who is serving his eighth term in Congress, has a lifetime record of supporting the AFL-CIO position 13% of the time.

Republican Bob Vander Plaats of Sioux City, is a small business consultant and was a candidate for Governor in 2002.

Other Democrats seeking the nomination are: Sioux City engineer Sal Mohamed, Waterloo activist Vernon Weems and Wallingford Mayor Mark Yackle.

Seven candidates, four Democrats and three Republicans, are campaigning in Iowa’s First District in hopes of winning a rare open seat for Congress.  The Iowa First District race is considered a “battleground” race and is listed as one of the six most competitive seats in the

U.S. in 2006 by the Cook Political Report.

      The First District includes Black Hawk, Bremer, Buchanan, Butler, Clayton, Clinton, Delaware, Dubuque, Fayette, Jackson, Jones and Scott counties.

Four Democratic candidates are competing in the First District Congressional Primary.

Bruce Braley, of Waterloo, is an attorney and past president of the Iowa Trial Lawyers Association.

Rick Dickinson, of Sabula, is an economic development official.  He served from 1991-1994 in the Iowa House and has a lifetime record of supporting the Iowa AFL-CIO position 79% of the time.

Bill Gluba, of Davenport, is a real estate agent.  He served in the Iowa House and the Iowa Senate from 1969 to 1974 and has a lifetime record of supporting the Iowa AFL-CIO position 97% of the time.

David Overby, of Peosta, is a retired journalist.

Three Republican candidates are competing in the First District Congressional Primary.

Bill Dix, of Shell Rock, is a farmer.  He is completing his fifth term in the Iowa House and has a lifetime record of supporting the Iowa AFL-CIO position 8% of the time.

Brian Kennedy, of Bettendorf, is a political consultant and former chair of the Iowa Republican Party.

Mike Whalen, of Bettendorf, is a businessman.

Changes in the Labor Movement

Last summer four international unions withdrew from the National AFL-CIO to form a separate federation, the Change to Win Coalition (CTW).  Because they were no longer affiliated with the AFL-CIO, local unions of those internationals were ineligible to join or to continue to be members of central labor councils or state federations.

In November, the AFL-CIO and the CTW announced that CTW locals could sign a Solidarity Charter and rejoin state federations and central labor councils with full voting and participation rights.

This is an extremely positive development that will allow for continued cooperation and coordination during the 2006 elections and in the all-important struggles against anti-union  anti-worker forces.  As of this writing, two local unions have rejoined the Iowa Federation of Labor, AFL-CIO.

AFL-CIO Announces Opposition to Alito for U.S. Supreme Court

Review Prepared for Senators Details a Disturbing Record of

Anti-worker Decisions and Dissents

    On December14 the AFL-CIO announced its opposition to the nomination of Judge Samuel Alito to the United States Supreme Court and released a review of his record on workers’ rights cases outlining the grave threat to working families posed by his confirmation.

As a member of the U.S. Court of Appeals for the Third Circuit, according to a letter sent by AFL-CIO President John Sweeney to the full U.S. Senate, Judge Alito handed down decisions and offered dissents that reveal “a disturbing tendency to take an extremely narrow and restrictive view of laws that protect workers’ rights, resulting in workers being deprived” of many vital protections relating to health and safety, wage and hour, anti-discrimination and pensions.

Judge Alito’s record on the U.S. Court of Appeals is peppered with decisions and dissents that have shown hostility toward workers’ rights. From denying newspaper reporters their overtime pay to thwarting Congress' efforts to guarantee access to the Family and Medical leave Act (FMLA) to denying a federal union information including the home addresses of employees within a bargaining unit to putting roadblocks in the way of workers trying to remedy job discrimination, Alito has consistently sided against working Americans.

To receive a copy of the letter or the review of Judge Alito’s record on workers’ rights cases, visit www.aflcio.org

Budget Leaves Iowans in the Cold

 The budget bill promoted by U.S. House Budget Chairman Jim Nussle (R-Iowa) and passed by the U.S. House and Senate sets the spending level for the Low Income Home Energy Assistance Program (LIHEAP) at the same level as last year in spite of a predicted 44% increase in home heating costs for Iowans this winter.  In an effort to stretch the budget and serve as many people as possible, Iowa’s LIHEAP assistance grants will be the same dollar amounts as in 2004, even though 2005 energy costs are much higher.  Through October and November, more than 52,000 Iowans have filed requests for energy assistance, an 8% increase from last year.  Last year more than 85,000 Iowans received energy assistance. 

The High Cost of Wal-Mart

      When Wal-Mart comes to town, consumers often pay more than they save.  First, Wal-Mart asks taxpayers to subsidize the building of its stores, then Wal-Mart pays its workers so little they are forced to use  public services—like Medicaid—at taxpayer expense.

      Over the past 20 years, taxpayers have contributed at least $1 billion in subsidies to Wal-Mart.  Nationwide, 66 percent of workers at large U.S. firms get healthcare coverage on the job, yet fewer than half of the employees at America’s largest employer (Wal-Mart) get healthcare coverage. In fact, the average Wal-Mart costs taxpayers an estimated $108,000 a year for its workers’ children who are enrolled in state children’s health insurance programs. (Read about the Fair Share Health Care Act on page 1.)

From the late-night talk shows:

David Letterman - “President Bush is on an eight-day tour of Asia.  He’s visiting American jobs.”

Jay Leno - “According to a new report, not all immigrants from Mexico move here for work.  Well, duh.  If they were looking for American jobs they would be sneaking into India.”

Attend the Caucuses on January 16th

You May Be Choosing Iowa’s Next Governor

This year, the participants in Iowa’s precinct caucuses may be the decision-makers in choosing the next governor.  Those decision-makers should include representatives from labor. 

      Since there are seven candidates currently seeking the Democratic nomination, the possibility of choosing a nominee by convention clearly exists.  Iowa law states that if no candidate receives at least 35% of the vote in a Primary Election, a nominating convention must be held to determine the nominee.  The process  of choosing the delegates who will vote in that convention begins at the precinct caucuses. 

At the caucuses, attendees may be elected as delegates for a particular candidate or as “uncommitted” delegates.  The Federation has not endorsed and is not making any recommendation regarding a choice of candidate for governor at this time. A decision to endorse or not endorse will be made at the C.O.P.E. Convention on March

25, 2006.  It is critical, however, to have union members “in place” in the process.

      Delegates elected at the caucuses will attend county conventions where delegates will be elected to the district and state party conventions.

      In addition, resolutions are introduced at the caucuses,  which eventually can become a part of the party platform adopted at the state convention.  Several sample worker-friendly resolutions are posted on our website. Go to www.iowaaflcio.org and click on Sample Platform Resolutions for Presentation at Precinct Caucuses.

Finally, local party leaders and committee people are elected at the precinct caucuses.  Seek these positions.  The labor movement is strongest when members are involved in politics at the grass-roots level.

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