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February 2, 2012 • 2:55 pm 2

On the ground: What life is like at minimum wage in Washington

When you earn minimum wage, this is a serious pay cut.

Despite sound economic research showing that good base wages have positive effects on businesses, workers and the economy, attacks on Washington’s minimum wage surface year after year – 2012 was no exception.

On January 31, the House Labor and Workforce Development Committee heard testimony on several bills that would cut the paychecks of Washington’s lowest-wage workers. Representative Condotta, who introduced the bills, noted that he doesn’t have empirical evidence to support them but rather, “on the ground” experience: “We can talk about theories and we can listen to all the think tanks talk about what they have to say – I’m on the ground.”

It’s not a big surprise to see minimum wage detractors fail to acknowledge research that undermines their arguments. But it is frustrating to see them ignore the real “on the ground” struggles of people trying to get by on the minimum wage – like the people who came forward to share their stories at Tuesday’s hearing: Read the rest of this entry »

Filed under: minimum wage, Cary Condotta, Economic Opportunity Institute, economic policy institute, Illinois, living wage, low-wage, Washington, work

February 17, 2011 • 8:22 am 0

How Washington’s unemployment insurance program keeps our economy on track

By David Groves | Washington State Labor Council

Imagine a company that does business in every county in Washington state, pumping billions in payroll dollars into our economy. Better still, this company is counter-cyclical, ramping up hiring and payroll when the state economy is struggling.

The rest of the business community and public officials all benefit thanks to increased consumer spending and tax revenues to fund improved public services. So Washington would all go to extraordinary lengths to keep this company healthy and strong, right?

That “company” exists. It’s Washington’s unemployment insurance system, and in 2010 it pumped more than $4.3 billion into our state economy. But some political and business leaders tend to ignore its benefits — and the many businesses and jobs it has preserved — and focus on decrying its costs.

Washington has the healthiest U.I. system in the nation. After a two-year recession and persistent 9%-plus unemployment that continues to this day, it is sufficiently funded that our state is in a position to approve a major cut in U.I. tax rates, that will save employers hundreds of millions of dollars a year.

In contrast, as of this writing 30 states have U.I. systems that are insolvent. Idaho, for example, has borrowed more than $200 million and is about to extend its tax on employers, already at its maximum, through at least 2016 to cover a bond sale to repay the loan. The U.S. government just started imposing a 4.1% interest charge on arrears, which total more than $42.5 billion for all the delinquent states.

So, which state has a better business climate on this issue? One with responsible tax rates that can pump billions into the state economy and avoid raising taxes when the state economy is struggling? Or one with artificially low taxes that not only pays lower benefits — providing less of an economic safety net for businesses — but also requires a major tax increase amid a recession?

Filed under: state economy, business, Tax, Unemployment benefits, unemployment insurance, Washington, Washington State Labor Council, work

February 16, 2011 • 12:09 pm 1

Your help needed to pass Family Care Act enforcement bill

Cross-posted from the Washington Family Leave Coalition:

Since the late 1980′s, Washington’s Family Care Act (FCA) has helped ensure workers can use their paid sick days or other paid time off to care for a sick family member. For the most part, it’s worked well — but the FCA doesn’t give state agencies authority to stop employers from retaliating against workers who use the FCA.

Lawmakers are now considering two bills to create modest enforcement provisions for the FCA. We need your help to get this legislation passed and delivered to the Governor’s desk!

It’s easy: just call the state legislative hotline at 1-800-562-6000 and say you’d like to leave a message for your state Representatives and state Senator. (You’ll need to give your street address for your message to get to the right office.) If you prefer, you can also look up your legislators here and send each of them an email.

The best message is in your own words – but here are a few talking points you can use:

I urge your support for (“House Bill 1828” if speaking with your Representative; “Substitute Senate Bill 5263“, if speaking with your Senator).

For most employees and employers in the state, the Family Care Act has been working well. Unfortunately, in some cases follow up and enforcement is necessary.

When people can care for their families, we all benefit from reduced health care costs, and employers benefit from better productivity and higher morale.

Children and adults get better more quickly when a family member is present. Follow up care is improved when family members are able to hear doctor’s instructions.

Filed under: health care, paid sick days, work and family, family, health, paid sick days, Washington, work

February 16, 2011 • 8:44 am 0

Washington state’s workers’ compensation advantage

By David Groves | Washington State Labor Council

One of the most persistent myths about Washington state’s business climate is that our workers’ compensation costs are higher than in most other states. The fact that many employers and public policymakers believe this to be true is another indication of the power and resonance of the negative internal rhetoric about our competitiveness.

As with overall business-climate rankings, analyses from outside the state tell a very different story. In fact, the gap between the truth and the negative rhetoric about our workers’ compensation costs is shocking. Washington has lower employer costs than most other states. Meanwhile, our model state-run system is able to provide comparatively high benefits to injured workers.

That’s how the myth took hold that Washington is not competitive in this area. Business lobbying groups deliberately decry the level of benefits, not employers’ actual costs, in their quest to cut premiums even more.

The danger for Washington’s working families is that lawmakers could lose sight of the goal of our workers’ compensation system — “sure and certain relief for workers, injured in their work, and their families and dependents” — and shred this critical safety net in a misguided attempt to improve our business climate.

Filed under: state economy, business, Tax, Washington State Labor Council, work, workers compensation

Washington Policy Watch

On the ground: What life is like at minimum wage in Washington

How Washington’s unemployment insurance program keeps our economy on track

Your help needed to pass Family Care Act enforcement bill

Washington state’s workers’ compensation advantage

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Family-wage Jobs

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