January 10, 2008

2008 Iowa Legislature

Labor Continues the Struggle

It’s a new year and a new legislative session – one more chance to pass pro-worker legislation with a majority of Democrats in the House, Senate and Governor’s office before the Legislature is up for election again in November.

The IFL is committed to getting all of its priorities passed this session.  These issues will need the strong support and continued advocacy of every union leader and union member with their respective legislators if we expect to get anywhere this session. 

Although some labor organizations may be more affected by some measures than others, and vice versa, it is important that we all work together in solidarity to bring about our mutual success. 
   Our priorities are:

Fair Share:  In 2007 the Senate passed a bill (SF 413) that would allow negotiation of fair share clauses (requiring non-members who reap the benefits of a union contract to pay a fee to the union) in public sector contracts.  This bill is still alive for 2008, but must be passed by the Iowa House and signed by the Governor. 

Prevailing Wage:  HF 810, which would require that workers be paid a wage equal to the prevailing wage within the craft and geographical area, passed the House Labor Committee, but fell just short of making it to the House floor.  It is still alive for 2008.  With the defection of former Democrat Dawn Pettengill to the Republican party, we may be another vote short.  The measure has yet to be formally introduced in the Senate.

Scope of Public Sector Bargaining:  Bills have been drafted and will be introduced this session to expand the list of mandatory subjects of bargaining to include “permissive” subjects, such as discipline and discharge and a number of other subjects.

Employee Choice of Doctor in Workers’ Compensation:  Bills that would allow workers who are hurt on the job to choose their medical care have been introduced in both the House and the Senate, but have not passed the Labor Committee in either chamber.

Iowa Federation of Labor, AFL-CIO

Legislative Conference February 25-27, 2008

 IFL Legislative Conference

The tenth annual Iowa Federation of Labor, AFL-CIO Legislative Conference will be held on February 25^th, 26^th, and 27^th, 2008.  Registration will be from 9:30 a.m. – 10:30 a.m. on February 25^th.  The opening session will begin at 10:30 a.m.  The purpose of the conference is to review key legislative issues and will include a labor lobby day at the Iowa Legislature and a hospitality to which legislators will be invited.  I urge you to send delegates to this important conference.  

In Solidarity,  Mark L. Smith, President

The conference will be held at Adventureland Inn, I-80 at Highway 65, Altoona, Iowa 50009, Phone 1-800-910-5382.  You will need to make your own room reservations.  The room cost is $65 + tax per night.  The deadline for room reservations is February 15, 2008.  Our IFL group number for this room rate is #1113.

Registration is $130 per person, which includes materials plus 3 lunches, Monday evening hospitality and Tuesday dinner.  Make checks payable to Iowa Federation of Labor AFL-CIO. 

Senate Republicans Block Help for
Displaced Workers

In December, Congress failed to extend the Trade Adjustment Assistance (TAA) program, which helps train and educate workers whose jobs were lost to overseas competition.

TAA, initiated in 1962, expired on Dec. 31.  But the Senate Republican leadership refused to agree to an extension of the program.   If the Senate Republicans allow it to expire, then thousands of workers throughout the country will be denied vital benefits to support their families under this important program – NO financial assistance, NO job training, NO help maintaining health insurance, NO wage insurance if they are forced to take a lower paying job. 

National Employment Law Project  www.nelp.org

"This economy of ours is on a solid foundation…”
G. W. Bush,

Jan. 4, 08. 

Tax Loopholes Benefit Companies—
Hurt the Rest of Us

1979 – 2000. The share of state taxes paid by US corporations fell from 10.2% to 6.3%.  (CBPP)

2001 – 2003. Half of the Fortune 500 companies slashed their state tax bill to 1/3 of the legal rate.  And 17 of those 252 companies paid no state tax at all in at least one of those years. (CTJ)

   What are the schemes that allow companies to avoid state taxes?

   One scheme involves tax loopholes that allow companies to send large parts of their revenues to “shell” companies that operate in small offices with few or no staff present,  in states like Delaware or Nevada that don’t tax certain types of corporate income.  This system is manifestly unfair to firms doing business entirely within the state.  And to taxpayers: since a corporation’s ability to generate profits from their operations depends on public services, corporations should pay their share of the cost of providing those services.

    Does this happen in Iowa?  Yes!  A report of the Iowa Policy Project (IPP) shows what has happened:

1980—2004, the share of Iowa taxes paid by corporations fell from 6.9 to 2.4%.
   In terms of money available for our needs in Iowa, average annual corporate income tax revenue fell from $272 million to $126 million, a drop of $146 million or 54% in this period.

   One way to fix this, and the

most important, according to IPP, is  the adoption of combined reporting, now in effect in 17 states. Under combined reporting, a variety of profit-shifting strategies are rendered ineffective, because the parent firm and its subsidiaries are combined for purposes of calculating state tax liability.

   Stay tuned on this front: you will be hearing more about it in coming months.

On Shaky Ground: The Bush NLRB

At the stroke of midnight on Dec. 16, the term of NLRB Chairman Robert J. Batista expired, effectively bringing to an end the board's pro-corporate, anti-union Republican majority. 

A deadlocked Board   With Batista gone, the five-member NLRB is now deadlocked, with two Republican and two Democratic members.  Another board shakeup occurs this month, when the terms of two other members, Republican Peter N. Kirsanow, and Democrat Dennis P. Walsh, both expire. 
   This leaves the NLRB with just two members, a Democrat and a Republican.  To prevent the president from making recess appointments – circumventing

congressional approval –  Senate Democratic leaders will keep Congress open in "pro forma session" until the current session of Congress ends in January.

After January, Bush can nominate a new NLRB chair and fill the other vacancies, but each nominee must first be confirmed by the Senate, now controlled by the Democrats.  An ideological standoff on the board is expected to remain until a new administration takes office. 

   "Given the recent history of this board, we're better off with an NLRB that can't act versus one that can," said CWA President Larry Cohen. 

(CWA Communications Department.)

  Where’s the Real Crisis? 

Medicare is projected to run short of money in 2019. What can be done to protect this popular program?  Especially since, according to Bruce C. Vladeck, who ran the Health Care Financing Administration, the federal agency responsible for Medicare and Medicaid, “an enormous enterprise is devoted to maintaining false perceptions about Medicare.”

Insurance companies profit  The Medicare Advantage program contributes to this shortfall since it raises costs by an average of 12 percent for the beneficiaries enrolled. Of course this extra cost means profits for the insurance industry.  (Beat the Press Weekly Roundup  12/08/07)

Medicare’s cost effectiveness   Medicare’s administrative costs “are a small fraction of those of any private insurer in this country; its beneficiaries are much more satisfied with their health insurance than are privately-insured Americans; and the rate of cost increase per beneficiary in Medicare (making fair comparisons by holding benefits constant) has lagged well behind most private insurers for the last decade,” says Vladeck, currently Senior Vice President for Policy, Mount Sinai Medical Center.

A political issue   There is a strong political aspect to the Medicare scare

Labor Center

in cooperation with the Iowa Federation of Labor, AFL-CIO,  presents:
2007-08 Courses for Union Members

Safety and Health on the Job

· Understanding workers’ rights under the law

· Interaction with collective bargaining and contract provisions

· Union strategies for protecting rights at work