June 6, 2008

The 2008 Legislative Session

The 2008 Legislative Session will go down in Iowa labor history as the session when a Democratic Governor turned his back on the unions that enthusiastically supported him and helped get him elected.  When Governor Culver vetoed the Public Sector Collective Bargaining bill, not only public workers, but all of labor were stunned by what they felt was an out-and-out betrayal.  

When Democrats took control of Iowa state government in 2006, unionists celebrated.  But those celebrations were dampened when even a partial fair share bill could not make it through the 2007 Iowa House.  In 2008 the Legislature finally came through with a bill expanding public sector collective bargaining, only to have it soundly vetoed by a Governor who reneged on his promise to support workers.

 Public Sector Collective Bargaining

The big labor story of the session was public sector collective bargaining, established in Chapter 20 of the Iowa Code.  Chapter 20 has not been changed or amended since its enactment in 1974 by a Republican legislature and Republican Governor. 

For years, expansion of bargaining for public employees to include the same subjects as the private sector has been on the Federation’s agenda.  It was discussed with renewed emphasis during our fall legislative briefings and in meetings with the Governor and Lieutenant Governor.  In 2007 a draft bill was readied, but did not get formally introduced in the wake of the fair share controversy.  In 2008, after detailed discussions, the bill was introduced on March 18 as an amendment to a bill containing changes to Chapter 20 proposed by the Public Employment Relations Board.

Determined not to repeat the fair share debacle of 2007, House leaders secured the necessary votes to pass the bill quickly and to send it to the Senate, which  followed suit on March 25.  During the debate, the first hints of dissatisfaction with the bill began to surface from the Governor’s office, yet with no specific objections.  The Senate kept the bill from advancing to the Governor’s desk in the hope that a compromise could be worked out.  Meanwhile the Governor’s office held numerous meetings with “stakeholders,” including unions, to try to reach a “consensus.” 

Why we need the changes 

   The Federation and others argued that changes to Chapter 20 were needed to level the playing field for public workers, that the courts had unnecessarily limited the scope of the mandatory subjects of bargaining, and that there were new subjects not anticipated by legislators when the law was passed in the 1970s. 

        In addition, the bargaining process was being hijacked by consultants who urged management to hold mandatory subjects, like wages and benefits, hostage or they would no longer agree to provisions on discipline and discharge or other “permissive” language.   

         These were just a few of the reasons why labor believed Chapter 20 had to be modernized.

   The Veto

However, the Governor took the side of management.  Indicating no specific concerns, his 3-page veto message stated that the bill was “vaguely written with the potential for far-reaching, unintended consequences that could obligate the citizens of Iowa to substantial new public expenditures.”  He was apparently persuaded that management negotiators were so inept that they would give the unions more than they asked for, or that arbitrators would simply ignore statutory budget restrictions.

Union members are understandably disappointed and angry to have such a key labor bill, which has long been a plank in the Democratic platform, flat-out vetoed by a Democratic Governor.  They question why a labor bill must meet a higher standard of “con-sensus” than other controversial bills, such as the smoking ban, the sales tax for schools, or any of the budget bills, for that matter.

 Still our priority

This is a priority that will not go away.  We expect and hope that this Governor will live up to his statement that he has “always been a strong supporter of workers’ rights and collective bargaining,” and help Iowa public workers achieve a level playing field with the private sector and with the majority of other states in the U.S.

Fair Share and Prevailing Wage will also continue to be top priorities although there was no movement on these issues in the 2008 session.

Inequality in Negotiations 
Iowa Public Sector Union Members Speak Out

Jenny Mitchell, AFSCME 2991, Glenwood.  Every time we go to the bargaining table, we have to give up important issues just to get discipline/discharge and health insurance on the table.  It is always a threat to lose those items unless we give up on other vital needs of the employee.

Francis Giunta, CWA 7110, Dubuque.  Restrictions on bargaining issues do not currently allow the union to address in meaningful ways the problems of our members.

Rich Kurtenbach, IBEW 288, Waterloo.  I have tried to negotiate discipline and discharge to no avail.  This should have been one of the basic mandatory subjects back in 1974. 

Carl Robey, AFSCME 3010, Dubuque.  After 23 years of state employment, 20 years on the bargaining team, I know that we need to open the scope to achieve better contracts.

Health Care, starting with kids

The Legislature passed, and the Governor signed, a bill that will improve Iowa’s health care system by covering more of the uninsured.  Although the bill is not all that we had hoped for, it will come closer than ever before to insuring the 44,000 Iowa kids who don’t currently have health insurance. 

Some key elements of the health care bill:

· Moves toward full health coverage for children of families earning up to 300 percent of the poverty line ($63,600 for a family of four—2008 FPL Guideline)

· Allows young adults to stay on their parents’ insurance until age 25

· Eases barriers for people with pre-existing conditions to move to individual health plans

· Creates a “medical home” system to reduce health disparities and encourage preventive care

· Invests $25 million over 3 years

· Draws a roadmap to cover all adults by 2013

The legislation does not contain a mandate that employers provide insurance or that individuals must buy health insurance, but does expand public programs and will make it easier for Iowans to find coverage they can afford.

 Obviously, the best solution is a national health care system that covers everyone.  Until then, this is a step in the right direction.

IPERS funding

The Federation supported changes in IPERS that will allow contribution rates to be actuarially adjusted after 2011, when the current statutory increases will be fully implemented.  This will keep IPERS adequately funded and address fluctuating funding needs, rather than expect the Legislature, with its shifting political moods, to make regular decisions on contribution rates.

Workers’ Comp

Our top priority in Workers’ Comp was to give workers the ability to choose their own doctors when they get hurt at work.  Unfortunately, even a weaker version of worker choice did not make it to the House floor.  However, there were some changes for the better in the Workers’ Comp law:

· The mechanism to fund the Second Injury Fund will continue without being subject to a sunset.  Previously, the law would sunset after five years.  It will now be continued indefinitely.

· Burial payments will change from the current amount of $7,500 to an amount indexed to 13 times the average wage.

· When figuring the wage upon which a person’s benefit is based, shift pay will now be included in the wage.

· The law dealing with payment for out of state injuries was clarified, so that workers who are employed by an Iowa employer but are working out of state will not lose benefits.  This corrects an Iowa Supreme Court case from five years ago, which denied workers their just claims for benefits under such circumstances.

Unemployment Insurance

The Legislature failed to pass an unemployment modernization bill that, among numerous other greatly needed provisions, would have:

· Considered a worker’s most recent work history when determining eligibility,

· Recognized compelling family circumstances, such as family illness or domestic violence, as legitimate reasons for leaving work, and

· Extended benefits for those who are trying to complete a job training course.

Even after stripping many provisions from the bill and obtaining agreement from Republicans, some Democrats objected and caused Republicans to defect as well, leading to the demise of the bill.

The only changes to UI were a couple of administrative changes to the process that will make employers more responsible and lead to greater efficiency in the system.

Funding for IWD

Early in the session it appeared that the Department of Workforce Development was facing a severe budget shortfall that would probably have led to the closing of a number of additional rural Workforce offices around the state.

The Federation and many unions advocated strongly for restoration of IWD funding and were successful in persuading the Legislature to fund the shortfall so that these vital services would continue without interruption.

Licensure bills

Sprinkler fitters now have a state licensure provision in Iowa law, adding to the professions requiring licensure.  Clean-up language that addressed last years’ legislation on state licensure of electricians and plumbers also passed.

Taxes

2008 was not a huge year for tax bills.  Nevertheless, the Legislature managed to raise the statewide sales tax by one penny to 6 cents on the dollar.  This statewide tax will replace the local option sales tax for schools, which every county has already passed.  The Federation opposed this bill because it is a regressive tax.  It can only be used for infrastructure, when approved for such purposes, or for property tax replacement, but not for improving school programs or paying wages.  Making the tax statewide will lock in this regressive tax and make it harder to repeal than the local option tax, which would have come up for reconsideration every 10 years.  The new tax is not scheduled to be reconsidered until 2029.

A disturbing trend

Using the sales tax for schools to replace property tax is indicative of a very disturbing trend that is becoming more prevalent with each passing year.  There are more sales tax proposals waiting in the wings.  At least two cities this year have proposed raising yet another penny in sales tax to either

replace property tax (Cedar Rapids) or to fund higher education for residents’ children (Daven-port).  With the ever increasing demand to raise sales taxes and fund education or city services on the backs of low-income workers, there have been no proposals to counter some of the regressive effects of this tax, such as institution of a sales tax credit.

Business taxes under scrutiny

At the same time, corporations are not being held accountable for paying their fair share of Iowa taxes.  The Legislature missed another opportunity to enact “combined reporting,” a system that would keep businesses from hiding their income and avoiding Iowa taxes.  Revenue losses due to this tax loophole are estimated at up to $75 million per year.

 Some business tax credits are coming under increased scrutiny.  Bills were introduced to eliminate or limit tax credits under the wage-benefits tax credit program and the research activities tax credit.  Although none of these bills passed, it is past time to review the value of our numerous generous business tax credits.  Are they really helping economic development or are they just a big windfall for business?

Conclusion

As we approach the 2008 elections, we must remember that we elect candidates to keep their promises and do the job we elect them to do, regardless of party affiliation.  The end goal is to get legislation passed for the betterment of Iowa workers, not to get elected or re-elected.  It is more important than ever that we do more than just vote on election day.  We need to be a strong voice in every district and at every level to be sure our candidates and elected officials understand our issues.  We need to know the truth about where they stand and hold them accountable. 

         In particular, on our priorities of fair share, prevailing wage, collective bargaining and choice of doctor, we have a big job to do—we not only need to educate candidates and legislators, we need to educate ourselves, our co-workers and our families and friends.  Only then will we achieve a level of understanding of our issues that will form the basis for workers’ rights legislation we can be proud to pass on to our children and grandchildren.

IFL Endorsed Candidates do Well in Primary Battles

Disappointment in Dubuque

The Iowa Federation of Labor endorsed candidates in six contested primary races.  Our endorsed candidates won in five of those contests:

· Leonard Boswell - 3rd Congressional District

· Deb Berry - House District 22

· Jerry Sullivan - House District 59

· Wayne Ford - House District 65

· Jerry Kearns - House District 92

   Our endorsed candidate, union member Francis Giunta (CWA, Dubuque), unfortunately lost in the contest in House District 27.

   These results point out the importance of knowing, talking about and voting for our union-endorsed candidates.

Postville Slaughterhouse Raid
The Story You Didn’t Get from the Media

After the largest raid in US history at the Agriprocessors slaughterhouse on May 12^th, the attention was focused on the 389 workers who were arrested and sent to Waterloo for detention.

Far too little attention has been paid to the company itself, which has an abominable record on labor, health, safety and environmental protections.  There is a large list of violations overlooked by the media.

The Food Safety and Inspection Service issued over 250 citations between Jan ’06 and Jan. ’07 alone for problems including:

All these abuses and complaints led to an organizing effort of this plant by the UFCW, an effort already tough because of language issues and fear of retaliation and now made more difficult by the ICE raid and the removal of 389 potential witnesses to company labor violations.

   "Agriprocessors: Not So Kosher," Quad City Labor News, Quarterly Publication of the Quad City Federation of Labor, AFL-CIO, 2008.

Good News from the Global Economy:
Planning Underway for First Transatlantic Union

In late April, the United Steelworkers (USW), Amicus, the largest manufacturing union in the United Kingdom, and UK’s Transport and General Workers’ Union (T&G) took the first step toward forming a truly global union.

Representatives of the three unions have signed an agreement to move toward merger. Amicus and the T&G planned to join together as one union called Unite.  It would have 2.1 million members and be based in London.

The unions agreed to set up joint committees to set timetables, identify hurdles to merger and build a structure for the new union. USW President Leo Gerard said he hopes the merger can be completed in a year.

Both President Gerard and Amicus General Secretary Derek Simpson said building global unions could lead to the kind of political power workers need to change anti-worker labor laws in the United States and other countries around the world.

AFL-CIO President John Sweeney hailed the agreement as “a bold and innovative approach to addressing the crushing effect of corporate-driven globalization.”

^{Iowa Alliance for Retired
Americans Ranks
Members of Congress:
Democrats get perfect scores}

^{Members of Iowa’s Alliance for Retired Americans delivered their 2007 Congressional Report Card to Congressman Leonard Boswell’s  Des Moines office on May 30th.  Iowa Alliance Founding Committee member and SCIFL Vice-President Don Brown noted that  “As part of the new Congress, Boswell voted to improve health care, reduce Medicare drug prices, and end taxpayer overpayments to private insurance companies who operate Medicare Advantage programs.  He also voted to stop oil price gouging and abusive mortgage practices.”} 

^{In addition to Boswell, Iowa’s two freshman members of Congress, Bruce Braley (1st CD) and Dave Loebsack (2nd CD) as well as Senator Tom Harkin had 100% scores.  The rest of Iowa’s Congressional delegation had failing scores.  They are Senator Chuck Grassley with 30%, Congressman Tom Latham (4th CD) with 20% and Congressman Steve King (5th CD) with 20%.}

^{These Democrats clearly earned endorsement at our April COPE convention.}

John McCain:  We Better Look Twice

6 (more) things you should know about John McCain (but probably don't)

1. Temperament  Many of McCain's fellow Republican senators say he's too reckless to be Commander in Chief. One Republican senator said: "The thought of his being president sends a cold chill down my spine. He's erratic. He's hotheaded. He loses his temper and he worries me."

2. Lobbyists  McCain talks a lot about taking on special interests, but his campaign manager and top advisers are actually lobbyists. The government watchdog group Public Citizen says McCain has 59 lobbyists raising money for his campaign, more than any of the other presidential candidates.

 3. Extreme right wing  McCain has sought closer ties to the extreme religious right in recent years. The pastor McCain calls his "spiritual guide," Rod Parsley, believes America's founding mission is to destroy Islam, which he calls a "false religion." McCain sought the political support of right-wing preacher John Hagee, who believes Hurricane Katrina was God's punishment for gay rights and called the Catholic Church "the Antichrist" and a "false cult."

4. Environment  He positions himself as pro-environment, but he scored a “0” from the League of Conservation Voters last year.

5.  Veterans  McCain casts himself as the veteran’s friend, but he voted against requiring mandatory minimum downtime between tours of duty for troops serving in Iraq and he was one of only 13 senators to vote against adding $430 million for inpatient and outpatient care for veterans.  And he is behind a watered down version of the Vets education assistance bill that  veterans of the wars in Iraq and Afghanistan have rejected as unacceptable to the veterans community.

6.   Economy  McCain says he is “very well versed” in the economy (1/24/08 at Florida debate), but here is what else he has said:

"I'm going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated." Wall Street Journal 11/ 26/05

"The issue of economics is something that I've really never understood as well as I should. I understand the basics, the fundamentals, the vision, all that kind of stuff." Chicago Tribune quoting McCain talking to reporters 12/18/07

“I think if you look at the overall record and millions of jobs have been created [since President Bush took office ]… you can make an argument that there’s been great progress economically over that period of time.” (“Money & Politics,” Bloomberg, 4/17/08)

Upcoming …

· State Democratic and Republican Conventions June 28, Des Moines

· June Labor Walks June 21-28, Cedar Rapids and Iowa City

· Midwest School for Women
Workers July 10-13, St. Louis

· IFL Annual Convention September 24-26, Des Moines

Are you looking for a
comprehensive guide to the
presidential election?  

Get the candidates’ records and their positions on the issues we care about most.  Visit the union members’ election guide:

      WorkingFamiliesVote08.org

Please, Come to Iowa!
(And Work for Pennies…)

   The New York Times (5/31/08) reports on concerns about a growing labor shortage in Iowa and tells readers that "remedies are not simple."  The article cites “colliding trends” working against Iowa: “the exodus of young college graduates, a state economy that adds 2,000 jobs a month, low immigration and birth rates, and an image problem...”  All that plus Iowans are older than the national average and our state has a very high rate of women in the workforce and workers with several jobs.

   Then comes the zinger:  “Companies want to be in Iowa
because wages are lower than elsewhere in the nation or region,
except South Dakota.”

So—connect the dots:

1)  There is a labor shortage in Iowa.

2)   Iowa wages are the second lowest in the country.

You do the math.  Employers apparently can’t.

Democratic Senators and AFL-CIO Denounce Bush FMLA Changes

In what has been described as  “the most sweeping modifications to FMLA regulations since their initial implementation”  in 1995, Bush’s DOL has once again showed its indebtedness to big business.

At a hearing on the Department of Labor’s (DOL) proposed changes to the Family and Medical Leave Act (FMLA), a host of Democratic senators criticized the DOL for “chipping away” at the current law.   Lawmakers fear workers could be discouraged from using FMLA under the DOL’s proposals, which include an enhanced medical certification process, changes to the definition of a serious medical condition and more employer notice requirements. “The Bush Administration ... took a step backward, announcing new regulations that will limit workers’ ability to use such medical leave when they need it,” said Senator Ted  Kennedy, joined by Sen. Christopher Dodd and Sen. Patty Murray.   “The Bush Administration is proposing to ‘fix’ a situation that does not need to be fixed by granting the wishes of its business supporters,” said AFL-CIO President John Sweeney.