By Sen. Bernie Sanders, July 21, 2011
If there was ever a time in the modern history of America that the American people should become engaged in what's going on here in Washing¬ton, now is that time. Decisions are being made that will impact not only our generation but the lives of our children and our grandchildren for decades to come, and I fear very much that the decisions being contemplated are not good decisions, are not fair decisions.
There is increased understanding that defaulting for the first time in our history on our debts would be a disaster for the American economy and for the world's economy. We should not do that.
There also is increased discussion about long-term deficit reduction and how we address the crisis which we face today of a record-breaking deficit of $1.4 trillion and a $14 trillion-plus national debt.
One of the long-term deficit reduction plans came from the so-called Gang of Six. We do not know all of the details of that proposal. In fact, we never will know because a lot of the decisions are booted to committees to work out the details.
It is fair to say, however, that Senators Coburn, Crapo and Chambliss deserve congratulations. Clearly, they have won this debate in a very significant way. My guess is that they will probably get 80 percent or 90 percent of what they wanted. In this town, that is quite an achievement, but they have stood firm in their desire to represent the wealthy and the powerful and multinational corporations. They have threatened. They have been smart. They have been determined. And at the end of the day, they will get almost all of what they want. That is their victory, and I congratulate them.
Unfortunately, their victory will be a disaster for working families in this country, for the elderly, for the sick, for the children and for low-income people.
Based on the limited information that we have, I think it is important to highlight some of what is in this so-called Gang of Six proposal that the corporate media, among others, are enthralled about.
Some may remember that for a number of years, leading Democrats said that we will do everything that we can to protect Social Security, that Social Security has been an extraordinary success in our country, that for 75 years, with such volatility in the economy, Social Security has paid out every nickel owed to every eligible American. I heard Democrats say that Social Security has nothing to do with the deficit. That is right because Social Security is funded by the payroll tax, not by the US Treasury. Social Security has a $2.6 trillion surplus today. It can pay out every benefit owed to every eligible American for the next 25 years. It is an enormously popular program. Poll after poll from the American people says don't cut Social Security. Two and a half years ago when Barack Obama, then a senator from Illinois, ran for president of the United States, he made it very clear if you voted for him there would be no cuts in Social Security.
What Senators Coburn, Crapo and Chambliss have managed to do in the Gang of Six is reach an agreement where there will be major cuts in Social Security. Don't let anybody kid you about this being some minor thing. It is not. What we are talking about is that Social Security cuts would go into effect virtually immediately. Ten years from now, the typical 75-year-old person will see their Social Security benefits cut by $560 a year. The average 85-year-old will see a cut of $1,000 a year. Now, for some people here in Washington, maybe the big lobbyists who make hundreds of thousands a year, $560 a year or $1,000 a year may not seem like a lot of money, but if you are a senior trying to get by on $14,000, $15,000, $18,000 a year and you're 85 years old, the end of your life, you're totally vulnerable, you're sick - a $1,000 per year cut in what you otherwise would have received is a major, major blow.
So I congratulate Senator Coburn, Senator Crapo, Senator Chambliss for doing what President Obama said would not happen under his watch, what the Democrats have said would not happen under their watch.
But it's not just Social Security. We have 50 million Americans today who have no health insurance at all. Under the Gang of Six proposals, there will be cuts in Medicare over a 10-year period of almost $300 billion. There will be massive cuts in Medicaid and other health care programs. There will be caps on spending, which means that there will be major cuts in education. If you are a working-class family, hoping that you're going to be able to send your kid to college and thinking that you will be eligible for a Pell grant, think twice about that. Pell grants may not be there. If you're a senior who relies on a nutrition program, that nutrition program may not be there. If you think it's a good idea that we enforce clean air and clean water provisions so that our kids can be healthy, those provisions may not be there because there will be major cuts in environmental protection.
Some people think that's not so good, but at least our Republican friends are saying we need revenue and we're going to get $1 trillion in revenue. But wait a minute, if you read the proposal, there are very, very clear provisions making sure that we are going to make massive cuts in programs for working families, for the elderly, for the children. Those cuts are written in black and white. What about the revenue? Well, it's kind of vague. The projection is that we would raise over a 10-year period $100 billion in revenue. Where is that going to come from? Is it necessarily going to come from the wealthiest people in this economy? Is it going to come from large corporations who are enjoying huge tax breaks? That is not clear at all. I want middle-class families to understand that when we talk about increased revenues, do you know where that comes from? It may come from cutbacks in the home mortgage interest deduction program, which is so very important to millions and millions of families. It may mean that if you have a health care program today, that health care program may be taxed. That's a way to raise revenue. It may be that there will be increased taxes on your retirement programs, your IRA's, your 401(k)'s. But we don't have the details for that. All we have is some kind of vague promise that we're going to raise $1 trillion over the next 10 years, no enforcement mechanism and no clarity as to where that revenue will come from.
That is why it is so terribly important that the American people become engaged in this debate which will have a huge impact on them, on their parents and on their children. The American people must fight for a fair deal. At a time when the wealthiest people in this country are doing phenomenally well and their effective tax rate is the lowest on record; at a time when the top 400 individuals in this country own more wealth than 150 million Americans; at a time when corporate profits are soaring and in many instances corporations, these same corporations pay nothing in taxes; at a time when we have tripled military spending since 1997, there are fair ways to move toward deficit reduction which do not slash programs that working families and children and the elderly desperately depend upon.
Thursday, August 4, 2011
Medicaid cuts: A very bad idea
by Jeanette Wenzl
Federal budget battles threaten the livelihood of millions of Americans by placing our most vital programs – Social Security, Medicare, and Medicaid – at risk. While Medicare and Social Security get most of the public attention, it is Medicaid that is more likely to be slashed and burned. We should all be frightened of this possibility, and take action in defense of Medicaid.
There are 1.25 million Medicaid enrollees in Washington State, one in five residents. Since without Medicaid these enrollees would be uninsured, there are 1.25 million good reasons to save Medicaid in our state alone. But beyond the numbers, there are at least four major reasons why proposed budget cuts are dangerous for Medicaid, and why the pro¬gram needs and deserves our protection.
First, any cuts to Medicaid are ex¬treme cuts. Medicaid is far more efficient than private insurance programs, with very little administrative overhead from which to extract savings. There is simply no way to cut billions in Medicaid fund¬ing without dramatically impacting access to needed health care.
Proposals to cut come in many shapes and sizes – Paul Ryan’s House Republican Budget proposes block grants, the Obama Administration suggests “blended rates”, Senate Republicans have offered spending cap proposals, House Republicans have advanced balanced budget amendments – they all have the same effect. Low-income people will suffer more, live sicker, and die younger.
A second reason why we must not cut Medicaid is its impact on seniors and people with disabilities. Millions of seniors receive nursing home care thanks to Medicaid. Many Medicaid beneficiaries already have limited access to physician care, particularly from specialists, due largely to Medicaid’s already low reim¬bursement rates. Dual-eligibles (Medicare/Medicaid) are now being required to pay cost-sharing for their medications despite having income of only $674 per month. Many seniors and people with disabilities are already on the edge. Further cuts will push them off the cliff.
We need to preserve Medicaid for its importance to people of color and for racial equity. Racial disparities in health coverage are severe in this country, but they could become worse - if not for Medicaid, an additional 25 million people of color would likely be uninsured.
Finally, Medicaid is the building block for the Affordable Care Act – the signature health care legislation enacted by President Obama and a hard-fought progressive victory. The promise of the ACA was to make quality, affordable health care accessible to everyone in the U.S., and the ACA relies on the expansion of Medicaid to cover the most vulnerable of the uninsured. Cuts to the program not only reduce the ability of our state to enroll uninsured low-income people in health coverage, but undermine the very foundation on which health care reform rests.
Jeanette Wenzl is a PSARA member and on the Executive Board of Washington Community Action Network
Federal budget battles threaten the livelihood of millions of Americans by placing our most vital programs – Social Security, Medicare, and Medicaid – at risk. While Medicare and Social Security get most of the public attention, it is Medicaid that is more likely to be slashed and burned. We should all be frightened of this possibility, and take action in defense of Medicaid.
There are 1.25 million Medicaid enrollees in Washington State, one in five residents. Since without Medicaid these enrollees would be uninsured, there are 1.25 million good reasons to save Medicaid in our state alone. But beyond the numbers, there are at least four major reasons why proposed budget cuts are dangerous for Medicaid, and why the pro¬gram needs and deserves our protection.
First, any cuts to Medicaid are ex¬treme cuts. Medicaid is far more efficient than private insurance programs, with very little administrative overhead from which to extract savings. There is simply no way to cut billions in Medicaid fund¬ing without dramatically impacting access to needed health care.
Proposals to cut come in many shapes and sizes – Paul Ryan’s House Republican Budget proposes block grants, the Obama Administration suggests “blended rates”, Senate Republicans have offered spending cap proposals, House Republicans have advanced balanced budget amendments – they all have the same effect. Low-income people will suffer more, live sicker, and die younger.
A second reason why we must not cut Medicaid is its impact on seniors and people with disabilities. Millions of seniors receive nursing home care thanks to Medicaid. Many Medicaid beneficiaries already have limited access to physician care, particularly from specialists, due largely to Medicaid’s already low reim¬bursement rates. Dual-eligibles (Medicare/Medicaid) are now being required to pay cost-sharing for their medications despite having income of only $674 per month. Many seniors and people with disabilities are already on the edge. Further cuts will push them off the cliff.
We need to preserve Medicaid for its importance to people of color and for racial equity. Racial disparities in health coverage are severe in this country, but they could become worse - if not for Medicaid, an additional 25 million people of color would likely be uninsured.
Finally, Medicaid is the building block for the Affordable Care Act – the signature health care legislation enacted by President Obama and a hard-fought progressive victory. The promise of the ACA was to make quality, affordable health care accessible to everyone in the U.S., and the ACA relies on the expansion of Medicaid to cover the most vulnerable of the uninsured. Cuts to the program not only reduce the ability of our state to enroll uninsured low-income people in health coverage, but undermine the very foundation on which health care reform rests.
Jeanette Wenzl is a PSARA member and on the Executive Board of Washington Community Action Network
New Executive Board Members
At our summer membership meeting, three new members to the PSARA Executive Board were confirmed by the membership.
Jim Grayson is a retired business owner. Previously, he served as the NW Regional VP of American Library Ass. Trustee Assn. He also was a King County Library System Trustee and President of the Washington State Library Trustee Association. Jim is an activist in the 30th Democratic Legislative District and an ardent progressive activist.
Anita Nath is the youngest member of the PSARA Executive Board and the chief administrator of the excellent PSARA Facebook page. She is a graduate from Florida International University with a Bachelors degree in English. She is an organizer with the United Food and Commercial Workers Union Local 21 and volunteer with Seattle nonprofit organizations. She has also contributed writing to the Retiree Advocate.
Magdaleno Rose-Avila, better known as Leno, has been a civil and human rights activist all his adult life. He was an organizer with Cesar Chavez, Peace Corps Country Director, Special Assistant to the Chairman of the Democratic National Committee, and has worked for a wide variety of non-profits. He is a gifted speaker and author.
Jim Grayson is a retired business owner. Previously, he served as the NW Regional VP of American Library Ass. Trustee Assn. He also was a King County Library System Trustee and President of the Washington State Library Trustee Association. Jim is an activist in the 30th Democratic Legislative District and an ardent progressive activist.
Anita Nath is the youngest member of the PSARA Executive Board and the chief administrator of the excellent PSARA Facebook page. She is a graduate from Florida International University with a Bachelors degree in English. She is an organizer with the United Food and Commercial Workers Union Local 21 and volunteer with Seattle nonprofit organizations. She has also contributed writing to the Retiree Advocate.
Magdaleno Rose-Avila, better known as Leno, has been a civil and human rights activist all his adult life. He was an organizer with Cesar Chavez, Peace Corps Country Director, Special Assistant to the Chairman of the Democratic National Committee, and has worked for a wide variety of non-profits. He is a gifted speaker and author.
PSARA Resolutions
PSARA’s affiliation with several larger organizations and coalitions provides us the opportunity to impact the policy discussions and advocacy priorities of these organizations.
At our summer membership meeting, three resolutions were passed and then forwarded to the Washington State Labor Council, AFL/CIO (WSLC) convention and the Washington Alliance for Retired Americans (WASHARA) convention. Adoption means these organizations will advocate for the policies embodied in the resolutions.
Resolution on Tax Expenditures.
One resolution addresses tax exemptions and tax loopholes. Washington has 567 tax exemptions many of which favor narrow special interests. These exemptions commonly continue unexamined session after session while regular budget items receive regular scrutiny. In the last decade, 116 new tax breaks were enacted, costing the taxpayers $1.6 billion over the next two years.
The PSARA resolution supports legislation mandating that each tax expenditure carry an expiration date so that each may be reviewed and renewed or not renewed on a regular basis, that fiscal management be improved by allowing any tax expenditure to be modified or eliminated by a simple majority vote and, in the interest of accountability, minimum reporting requirements be established for any business receiving a tax subsidy.
Resolution on Retirement Security
The number of persons 65 and older will reach 70 million by 2040. These millions are entitled to retirement years marked by economic security and quality, affordable health care. Social Security, Medicare and Medicaid are the programs most critical in providing a foundation for a secure retirement. The integrity of these programs is under unceasing assault.
Social Security, Medicare and Medicaid should be strengthened, not undermined. The PSARA resolution calls for establishing a more substantial basic benefit; changing the cost-of-living formula to more accurately reflect retiree expenditures; and changing the benefit formula to compensate primarily women workers for their years out of the work force caring for children or elders.
The resolution commits these organizations to advocate that Congress and the Obama administration reject all proposals that undermine existing Social Security, Medicare and Medicaid benefits, and instead enact legislation strengthening these program to enhance the security and quality of life of our millions of retirees and future retirees.
Resolution on State Investment Trust
The state-owned Bank of North Dakota, created in 1919, has for more than 90 years helped to stabilize the economy of North Dakota. During the current severe economic recession, while Washington and other states experience revenue shortages, North Dakota alone of the 50 states has been an island of economic stability. Over the last decade, the Bank of North Dakota, in a state of 600,000 population, has provided a third of a billion dollars to the state’s general fund.
In the 2011 session of the Washington State Legislature, legislation was introduced calling for the establishment of a State Investment Trust patterned after that of the State Bank of North Dakota. This Resolution endorses and calls for active support for legislation to create a State Investment Trust.
CALLING ON CONGRESS TO ADOPT NEW PRIORITIES TO CREATE JOBS, MEET DOMESTIC NEEDS, AND PUT THE NATION ON COURSE TO A MORE JUST, EQUITABLE AND SUSTAINABLE FUTURE
The economic crisis we are experiencing is the worst in eighty years and has had a disproportionate impact on working and poor people and communities of color.
Adopted by PSARA’s Executive Board, this resolution states that the crisis in the U.S. can be directly traced to (1) $3.8 trillion in tax cuts given over ten years to investors, large corporations and the wealthiest households; tax loopholes that allow the rich and many corporations to avoid paying taxes. (2) deregulation of the financial system that allowed greedy reckless banks and Wall Street to take irresponsible risks that produced an economic catastrophe; (3) bailouts to Wall St. and giant corporations paid for by taxpayers; (4) run-away military spending that supports a bloated Pentagon bureaucracy and profiteering military contractors
Taxpayers will pay approximately $172 billion dollars to wage war in Iraq and Afghanistan and hundreds of millions more for military actions in Libya. Over one trillion tax payer dollars go to the national security budget (60% increase to the Pentagon since 2001), including a $180 billion ten-year commitment to “modernize” our nuclear arsenal. Additionally, the human cost of these wars to both the U.S. armed forces and to hundreds of thousands of civilians in Iraq and Afghanistan has been enormous.
The Resolution states “The severity of the economic crisis has created budget shortfalls at all levels of government that call for a re-examination of the allocation of resources and national spending priorities.” The wars need to be brought to a speedy end and the U.S. Congress should bring these war dollars home and make substantial reductions in overall military spending. These dollars should be used to meet vital human needs, promote job creation, rebuild our infrastructure, aid municipal and state governments, and develop a new economy based upon renewable, sustainable energy and technologies.
Congress must radically reform the tax code so that the burden of taxation is fully progressive, removing loopholes and preventing schemes by which the rich and multinational corporations avoid and evade taxes.
The Resolution calls for the organizations to communicate with their members, actively informing and educating about these issues.
These resolutions will be discussed and debated by organizations with which we are affiliated and if passed, will impact their policies over the years to come. To read the resolutions go to www.psara.org.
At our summer membership meeting, three resolutions were passed and then forwarded to the Washington State Labor Council, AFL/CIO (WSLC) convention and the Washington Alliance for Retired Americans (WASHARA) convention. Adoption means these organizations will advocate for the policies embodied in the resolutions.
Resolution on Tax Expenditures.
One resolution addresses tax exemptions and tax loopholes. Washington has 567 tax exemptions many of which favor narrow special interests. These exemptions commonly continue unexamined session after session while regular budget items receive regular scrutiny. In the last decade, 116 new tax breaks were enacted, costing the taxpayers $1.6 billion over the next two years.
The PSARA resolution supports legislation mandating that each tax expenditure carry an expiration date so that each may be reviewed and renewed or not renewed on a regular basis, that fiscal management be improved by allowing any tax expenditure to be modified or eliminated by a simple majority vote and, in the interest of accountability, minimum reporting requirements be established for any business receiving a tax subsidy.
Resolution on Retirement Security
The number of persons 65 and older will reach 70 million by 2040. These millions are entitled to retirement years marked by economic security and quality, affordable health care. Social Security, Medicare and Medicaid are the programs most critical in providing a foundation for a secure retirement. The integrity of these programs is under unceasing assault.
Social Security, Medicare and Medicaid should be strengthened, not undermined. The PSARA resolution calls for establishing a more substantial basic benefit; changing the cost-of-living formula to more accurately reflect retiree expenditures; and changing the benefit formula to compensate primarily women workers for their years out of the work force caring for children or elders.
The resolution commits these organizations to advocate that Congress and the Obama administration reject all proposals that undermine existing Social Security, Medicare and Medicaid benefits, and instead enact legislation strengthening these program to enhance the security and quality of life of our millions of retirees and future retirees.
Resolution on State Investment Trust
The state-owned Bank of North Dakota, created in 1919, has for more than 90 years helped to stabilize the economy of North Dakota. During the current severe economic recession, while Washington and other states experience revenue shortages, North Dakota alone of the 50 states has been an island of economic stability. Over the last decade, the Bank of North Dakota, in a state of 600,000 population, has provided a third of a billion dollars to the state’s general fund.
In the 2011 session of the Washington State Legislature, legislation was introduced calling for the establishment of a State Investment Trust patterned after that of the State Bank of North Dakota. This Resolution endorses and calls for active support for legislation to create a State Investment Trust.
CALLING ON CONGRESS TO ADOPT NEW PRIORITIES TO CREATE JOBS, MEET DOMESTIC NEEDS, AND PUT THE NATION ON COURSE TO A MORE JUST, EQUITABLE AND SUSTAINABLE FUTURE
The economic crisis we are experiencing is the worst in eighty years and has had a disproportionate impact on working and poor people and communities of color.
Adopted by PSARA’s Executive Board, this resolution states that the crisis in the U.S. can be directly traced to (1) $3.8 trillion in tax cuts given over ten years to investors, large corporations and the wealthiest households; tax loopholes that allow the rich and many corporations to avoid paying taxes. (2) deregulation of the financial system that allowed greedy reckless banks and Wall Street to take irresponsible risks that produced an economic catastrophe; (3) bailouts to Wall St. and giant corporations paid for by taxpayers; (4) run-away military spending that supports a bloated Pentagon bureaucracy and profiteering military contractors
Taxpayers will pay approximately $172 billion dollars to wage war in Iraq and Afghanistan and hundreds of millions more for military actions in Libya. Over one trillion tax payer dollars go to the national security budget (60% increase to the Pentagon since 2001), including a $180 billion ten-year commitment to “modernize” our nuclear arsenal. Additionally, the human cost of these wars to both the U.S. armed forces and to hundreds of thousands of civilians in Iraq and Afghanistan has been enormous.
The Resolution states “The severity of the economic crisis has created budget shortfalls at all levels of government that call for a re-examination of the allocation of resources and national spending priorities.” The wars need to be brought to a speedy end and the U.S. Congress should bring these war dollars home and make substantial reductions in overall military spending. These dollars should be used to meet vital human needs, promote job creation, rebuild our infrastructure, aid municipal and state governments, and develop a new economy based upon renewable, sustainable energy and technologies.
Congress must radically reform the tax code so that the burden of taxation is fully progressive, removing loopholes and preventing schemes by which the rich and multinational corporations avoid and evade taxes.
The Resolution calls for the organizations to communicate with their members, actively informing and educating about these issues.
These resolutions will be discussed and debated by organizations with which we are affiliated and if passed, will impact their policies over the years to come. To read the resolutions go to www.psara.org.
ILWU Fights For Jobs & Respect in Longview
By David Groves
A major labor dispute at the Port of Longview, which has included more than 100 arrests and citations and hundreds of union dockworkers blocking a mile-long train to prevent grain shipments, has escalated even more after the terminal operator, EGT Development, began escorting workers from another union to work at the facility.
In the company’s attempt to become the first grain export terminal in Washington to use non-union labor, EGT has sued the Port in federal court to avoid hiring members of the International Longshore and Warehouse Union Local 21, which has a contract for all longshore work on Port property. ILWU 21 responded with major protests at the company’s headquarters and the Port terminal to get EGT to drop the suit and return to the bargaining table. Those protests escalated as the company made good on its threat to use non-union labor during the testing phase of the new $200 million facility.
Then, in a surprise announcement last week, EGT said it has signed an agreement with Federal Way-based General Construction Co., a subsidiary of Kiewit, to operate the terminal with union members from the Portland-based International Union of Operating Engineers Local 701. Mark Holliday, IUOE 701 Business Manager, sent out a statement saying, “Local 701′s members are trained to operate and maintain the EGT facility.”
On Sunday, ILWU hosted a barbecue for about 200 supporters from around Western Washington to discuss the latest developments in their efforts to retain their jobs and jurisdiction at the Port of Longview. ILWU 21 President Dan Coffman and Washington State Labor Council President Jeff Johnson both told the crowd that organized labor must come together to fight EGT.
“EGT, a Japanese multinational corporation that has received tax breaks from our state to build this grain elevator, has thumbed its nose at the members of ILWU Local 21 and is trying to pit workers against workers, local unions against local unions. This is unacceptable,” Johnson said “The work at the Port of Longview is longshore work and we need to come together as community and labor and say ‘no’ to EGT — ‘you will not disrespect labor in Longview or anywhere else in our state’.”
“Union longshore workers have made the Northwest one of the most productive grain exporting regions in the world,” Coffman said. “This new grain terminal stands to gain by playing by the same rules as the other grain operators that are making lots of money with productive union workers.”
EGT Development, a joint venture of Japan-based Itochu Corp, South Korea’s STX Pan Ocean and St. Louis-based Bunge North America, got a special tax exemption from the State of Washington to build the Longview terminal entitling them to a “remittance equal to one hundred percent of the amount of tax paid for qualifying construction, materials, service, and labor.” But the company built and is trying to operate its new facility on the cheap. Despite high unemployment in Cowlitz County and the availability of hundreds of skilled union building trades workers, the Northwest Labor Press reports that EGT imported the vast majority of its construction crews from low-wage communities out-of-state and did not pay area standard wages.
Bunge CEO Alberto Weisser was paid nearly $10 million in 2010. Bunge and his company have been accused of profiting from slave labor in Brazil.
David Groves is a member of PSARA & Publications Director with the Washington State Labor Council. You can find his work daily at “The Stand” on the WSLC website.
A major labor dispute at the Port of Longview, which has included more than 100 arrests and citations and hundreds of union dockworkers blocking a mile-long train to prevent grain shipments, has escalated even more after the terminal operator, EGT Development, began escorting workers from another union to work at the facility.
In the company’s attempt to become the first grain export terminal in Washington to use non-union labor, EGT has sued the Port in federal court to avoid hiring members of the International Longshore and Warehouse Union Local 21, which has a contract for all longshore work on Port property. ILWU 21 responded with major protests at the company’s headquarters and the Port terminal to get EGT to drop the suit and return to the bargaining table. Those protests escalated as the company made good on its threat to use non-union labor during the testing phase of the new $200 million facility.
Then, in a surprise announcement last week, EGT said it has signed an agreement with Federal Way-based General Construction Co., a subsidiary of Kiewit, to operate the terminal with union members from the Portland-based International Union of Operating Engineers Local 701. Mark Holliday, IUOE 701 Business Manager, sent out a statement saying, “Local 701′s members are trained to operate and maintain the EGT facility.”
On Sunday, ILWU hosted a barbecue for about 200 supporters from around Western Washington to discuss the latest developments in their efforts to retain their jobs and jurisdiction at the Port of Longview. ILWU 21 President Dan Coffman and Washington State Labor Council President Jeff Johnson both told the crowd that organized labor must come together to fight EGT.
“EGT, a Japanese multinational corporation that has received tax breaks from our state to build this grain elevator, has thumbed its nose at the members of ILWU Local 21 and is trying to pit workers against workers, local unions against local unions. This is unacceptable,” Johnson said “The work at the Port of Longview is longshore work and we need to come together as community and labor and say ‘no’ to EGT — ‘you will not disrespect labor in Longview or anywhere else in our state’.”
“Union longshore workers have made the Northwest one of the most productive grain exporting regions in the world,” Coffman said. “This new grain terminal stands to gain by playing by the same rules as the other grain operators that are making lots of money with productive union workers.”
EGT Development, a joint venture of Japan-based Itochu Corp, South Korea’s STX Pan Ocean and St. Louis-based Bunge North America, got a special tax exemption from the State of Washington to build the Longview terminal entitling them to a “remittance equal to one hundred percent of the amount of tax paid for qualifying construction, materials, service, and labor.” But the company built and is trying to operate its new facility on the cheap. Despite high unemployment in Cowlitz County and the availability of hundreds of skilled union building trades workers, the Northwest Labor Press reports that EGT imported the vast majority of its construction crews from low-wage communities out-of-state and did not pay area standard wages.
Bunge CEO Alberto Weisser was paid nearly $10 million in 2010. Bunge and his company have been accused of profiting from slave labor in Brazil.
David Groves is a member of PSARA & Publications Director with the Washington State Labor Council. You can find his work daily at “The Stand” on the WSLC website.
Downtown Low Income Housing Preserved
by Sharon Maeda
When I joined the UFCW 21 staff three years ago, I had no idea that I would be able to continue my longtime work around low income housing. Visionary leaders in the Retail Store Employees Union Local 1001 (now part of UFCW 21) launched a plan in 1979 to create housing for their retirees. They acquired land in Seattle’s Denny Regrade near their union hall and the Labor Temple, and walking distance to the downtown stores where 3,000 of their members worked.
By 1981, they had created a nonprofit housing development association, constructed an 82 unit apartment building and called it Sunset House after the stunning sunsets seen from the west side of the building. They received a HUD Section 8 designation which supplements the residents’ rent; residents pay one third of their income, no matter how low that income might be.
Over the years, the union moved away from the neighborhood, and the downtown retail core diminished. By 2008, there was only one union retiree still living at Sunset House and the building was in need of a lot of maintenance and renovation. While UFCW 21 wanted to remain engaged in supporting affordable housing, it is clearly not its core business and downtown Seattle is no longer a base for its membership.
The union’s bottom line was to preserve the 82 units of low income elderly and disabled housing. When I walked developers through the building, they talked about new granite counter tops and creating balconies on the west side of the building. It became clear that offers were tied to the fact that the HUD contract would expire in early 2011, thus allowing a new owner to drop HUD and evict the existing residents. The last thing Seattle needs is 82 more low income folks in need of affordable housing. So, we focused our marketing to nonprofit developers.
We developed a partnership with the Housing Resources Group (HRG) that already owns and operates some 40 low income buildings as their sole mission. During 2010, HRG served as Sunset House property managers, while putting together the financing package for purchase. The residents were brought along on the transition and have already begun their temporary moves to allow the renovation to begin the minute the sale closes.
It is a total win situation: We were able to ensure the preservation of low income housing, HRG was given a year to put together the complex financing strategy, and most importantly, the residents will have a renovated home in downtown Seattle. With the HUD renewal for another 20 years, this partnership is guaranteeing 598,600 bed nights for elderly and disabled Seattleites. And, with HRG’s multimillion dollar renovation, the life of the building will be extended well beyond these next two decades.
UFCW 21 is proud of its predecessor union’s visionary leadership and 30 years of providing housing for many of Seattle’s most vulnerable citizens. Selling Sunset House to HRG will ensure that the legacy will continue.
Sharon Maeda is a PSARA member and Special Projects Director at UFCW 21. She is a former HUD official in the Clinton Administration and was a member of the Retail Store Employees Local 1001 while a UW student.
When I joined the UFCW 21 staff three years ago, I had no idea that I would be able to continue my longtime work around low income housing. Visionary leaders in the Retail Store Employees Union Local 1001 (now part of UFCW 21) launched a plan in 1979 to create housing for their retirees. They acquired land in Seattle’s Denny Regrade near their union hall and the Labor Temple, and walking distance to the downtown stores where 3,000 of their members worked.
By 1981, they had created a nonprofit housing development association, constructed an 82 unit apartment building and called it Sunset House after the stunning sunsets seen from the west side of the building. They received a HUD Section 8 designation which supplements the residents’ rent; residents pay one third of their income, no matter how low that income might be.
Over the years, the union moved away from the neighborhood, and the downtown retail core diminished. By 2008, there was only one union retiree still living at Sunset House and the building was in need of a lot of maintenance and renovation. While UFCW 21 wanted to remain engaged in supporting affordable housing, it is clearly not its core business and downtown Seattle is no longer a base for its membership.
The union’s bottom line was to preserve the 82 units of low income elderly and disabled housing. When I walked developers through the building, they talked about new granite counter tops and creating balconies on the west side of the building. It became clear that offers were tied to the fact that the HUD contract would expire in early 2011, thus allowing a new owner to drop HUD and evict the existing residents. The last thing Seattle needs is 82 more low income folks in need of affordable housing. So, we focused our marketing to nonprofit developers.
We developed a partnership with the Housing Resources Group (HRG) that already owns and operates some 40 low income buildings as their sole mission. During 2010, HRG served as Sunset House property managers, while putting together the financing package for purchase. The residents were brought along on the transition and have already begun their temporary moves to allow the renovation to begin the minute the sale closes.
It is a total win situation: We were able to ensure the preservation of low income housing, HRG was given a year to put together the complex financing strategy, and most importantly, the residents will have a renovated home in downtown Seattle. With the HUD renewal for another 20 years, this partnership is guaranteeing 598,600 bed nights for elderly and disabled Seattleites. And, with HRG’s multimillion dollar renovation, the life of the building will be extended well beyond these next two decades.
UFCW 21 is proud of its predecessor union’s visionary leadership and 30 years of providing housing for many of Seattle’s most vulnerable citizens. Selling Sunset House to HRG will ensure that the legacy will continue.
Sharon Maeda is a PSARA member and Special Projects Director at UFCW 21. She is a former HUD official in the Clinton Administration and was a member of the Retail Store Employees Local 1001 while a UW student.
Is Greece the future of the US?
Maybe, but not in the way conservatives think.
By Mike Andrew
“Greece is the future of the US,” conservatives warn, meaning that this country is headed for a similar economic and social melt-down unless our government slashes social spending, cuts taxes, lays off public sector workers, and balances its budget.
Riots in Athens and general strikes that have paralyzed Greece underscore exactly how serious all this is. Is this really the future of the US?
This is the first installment of a two-part article that will look at Greece’s economic crisis and what lessons the US can learn from it.
In Part I, we’ll see if the austerity measures forced on Greece by European banks have helped or hurt the Greek economy.
In Part II, we’ll look at a completely different approach to Greek economic development, one that was tried by the socialist PASOK party in the 1980s
When George Papandreou led PASOK back into power in 2009, after five years of right-wing government, he faced three very real problems.
First, the previous PASOK administration led by Kosta Simitis (1996-2004) had joined the Eurozone – a move opposed by the left wing of PASOK.
Second, the Simitis government took advantage of the easy credit opened up by participation in the Eurozone to borrow heavily from European banks.
Thus, when Papandreou came into office, his country was no longer in control of its own money supply and owed a lot of money to foreign banks.
To make matters worse, the right-wing New Democracy government that preceded Papandreou had cut income and social security taxes to benefit its base, and then cooked the books to conceal the real level of Greece’s budget deficit.
Instead of the official 3% of GDP budget deficit allowed by the EU, or the rumored “real” deficit of 6%, the actual rate turned out to be almost 13%.
Finally, the Greek economy suffered from persistently slow growth and high unemployment rates, especially among younger workers.
Greek workers work harder than most. According to the Organization for Economic Cooperation and Development, Greek workers work some 2,120 hours every year, compared to 1,760 for US workers, and a mere 1,430 a year for Germans.
The problem is that there are more Greeks who want to work these long hours than there are jobs available. That’s one of the reasons emigration has always been part of Greek life, as Greeks left for the US or Australia to find work.
One of the promises made by the EU to small and relatively poor countries like Greece was that with EU membership would help in growing their economies.
Nevertheless, when Papandreou went to the EU for a bailout, he found that the EU’s economic agenda was not a growth agenda at all, but a contraction agenda.
The EU demanded a program of spending cuts very similar to what Republicans demand here in the US.
The “size of government” is to be reduced by failing to replace government workers as they retire.
Wages of workers in state-owned industries are to be cut by 30% and there will be a cap on wages and bonuses.
Just to show how damaging this will be, the median household income in the US in 2009 was $50,221. A 30% cut in pay would be more than $15,000 cut out of that family’s budget.
The retirement age in Greece has already been increased from 52 to 59, and it will be raised to 65.
These measures have not yet been fully implemented but unemployment already hit new record highs.
The Greek jobless rate went to 16.2% in March from 15.9% in February. Among workers under 30, the unemployment rate is more than 36%.
The social safety net is also on the chopping block, starting with pensions and benefits for retirees, and COLAs will be eliminated.
While these so-called “reforms” are still being implemented, Greece’s GDP declined by more than 4% in 2010. It will certainly decline even further this year.
While we can feel sorry for Greek workers and their families, the thing to take away from the Greek case is that the EU’s austerity program is not much different from the one proposed by fiscal conservatives in the US.
Do they want this be the future of the US?
(Mike Andrew is the Associate Editor of The Retiree Advocate)
By Mike Andrew
“Greece is the future of the US,” conservatives warn, meaning that this country is headed for a similar economic and social melt-down unless our government slashes social spending, cuts taxes, lays off public sector workers, and balances its budget.
Riots in Athens and general strikes that have paralyzed Greece underscore exactly how serious all this is. Is this really the future of the US?
This is the first installment of a two-part article that will look at Greece’s economic crisis and what lessons the US can learn from it.
In Part I, we’ll see if the austerity measures forced on Greece by European banks have helped or hurt the Greek economy.
In Part II, we’ll look at a completely different approach to Greek economic development, one that was tried by the socialist PASOK party in the 1980s
When George Papandreou led PASOK back into power in 2009, after five years of right-wing government, he faced three very real problems.
First, the previous PASOK administration led by Kosta Simitis (1996-2004) had joined the Eurozone – a move opposed by the left wing of PASOK.
Second, the Simitis government took advantage of the easy credit opened up by participation in the Eurozone to borrow heavily from European banks.
Thus, when Papandreou came into office, his country was no longer in control of its own money supply and owed a lot of money to foreign banks.
To make matters worse, the right-wing New Democracy government that preceded Papandreou had cut income and social security taxes to benefit its base, and then cooked the books to conceal the real level of Greece’s budget deficit.
Instead of the official 3% of GDP budget deficit allowed by the EU, or the rumored “real” deficit of 6%, the actual rate turned out to be almost 13%.
Finally, the Greek economy suffered from persistently slow growth and high unemployment rates, especially among younger workers.
Greek workers work harder than most. According to the Organization for Economic Cooperation and Development, Greek workers work some 2,120 hours every year, compared to 1,760 for US workers, and a mere 1,430 a year for Germans.
The problem is that there are more Greeks who want to work these long hours than there are jobs available. That’s one of the reasons emigration has always been part of Greek life, as Greeks left for the US or Australia to find work.
One of the promises made by the EU to small and relatively poor countries like Greece was that with EU membership would help in growing their economies.
Nevertheless, when Papandreou went to the EU for a bailout, he found that the EU’s economic agenda was not a growth agenda at all, but a contraction agenda.
The EU demanded a program of spending cuts very similar to what Republicans demand here in the US.
The “size of government” is to be reduced by failing to replace government workers as they retire.
Wages of workers in state-owned industries are to be cut by 30% and there will be a cap on wages and bonuses.
Just to show how damaging this will be, the median household income in the US in 2009 was $50,221. A 30% cut in pay would be more than $15,000 cut out of that family’s budget.
The retirement age in Greece has already been increased from 52 to 59, and it will be raised to 65.
These measures have not yet been fully implemented but unemployment already hit new record highs.
The Greek jobless rate went to 16.2% in March from 15.9% in February. Among workers under 30, the unemployment rate is more than 36%.
The social safety net is also on the chopping block, starting with pensions and benefits for retirees, and COLAs will be eliminated.
While these so-called “reforms” are still being implemented, Greece’s GDP declined by more than 4% in 2010. It will certainly decline even further this year.
While we can feel sorry for Greek workers and their families, the thing to take away from the Greek case is that the EU’s austerity program is not much different from the one proposed by fiscal conservatives in the US.
Do they want this be the future of the US?
(Mike Andrew is the Associate Editor of The Retiree Advocate)
Demanding Respect From Walmart
By Anita Nath
A fundamental right of workers should be to work in a safe environment and to be treated with respect. Unfortunately, there are many retail employers – including the largest, Walmart – who do not always provide such a workplace, particularly in regard to the treatment of older employees.
Of the 1.4 million Walmart workers in the US, 300,000 are 55 and older. Many are hired on a part-time basis and paid a low wage.
Despite many older employees being cashiers and door greeters, they are repeatedly required to perform physical work outside of their job duties, including washing toilets, cleaning windows, and lifting heavy items. When refusing to complete these tasks, the employees are often reprimanded or fired.
It is reported by older workers that Walmart regularly violates their own policy of providing 15 minute breaks at regular intervals. These older workers report that their breaks, when they get them, are often not spread out over the shift but rather put at the end of their work day.
These are just some of the issues that older employees have with the retail Goliath that made billions in profit last year.
Change is clearly needed at Walmart for workers to get fair and respectful treatment.
OUR Walmart is a new organization made up of current and former Walmart “associates” who care deeply about providing good customer service and making Walmart better. The lack of respect of workers by Walmart led to the creation of OUR Walmart. There are currently 201 local OUR Walmart members in the Puget Sound area, 11 of whom recently went to Bentonville, Arkansas to corporate headquarters to demand respect on the job. OUR Walmart asserts that the treatment of older workers, in particular, has deteriorated at Walmart.
After launching their organization just last month, OUR Walmart is growing. It has served to empower Walmart employees to stand together. They are already seeing an impact. Some recent accomplishments include returning wrongfully fired employees to work, protecting employees from harassment from management, and being a resource when employees experience disrespect.
In order to support the local efforts to change Walmart, PSARA members voted to join the Making Change at Walmart coalition at PSARA’s July 7th membership meeting. The goal of that coalition is to hold Walmart accountable to local workplace and community standards. That means supporting OUR Walmart workers in the Puget Sound area as they organize for respect at their stores, and also support local communities as they organize for standards that promote good jobs and healthy communities.
If you would like to be more involved in the coalition work in your area, please contact Elena Perez at eperez@ufcw21.org, 206.436.6544.
(Anita Nath is a member of the PSARA Executive Board)
A fundamental right of workers should be to work in a safe environment and to be treated with respect. Unfortunately, there are many retail employers – including the largest, Walmart – who do not always provide such a workplace, particularly in regard to the treatment of older employees.
Of the 1.4 million Walmart workers in the US, 300,000 are 55 and older. Many are hired on a part-time basis and paid a low wage.
Despite many older employees being cashiers and door greeters, they are repeatedly required to perform physical work outside of their job duties, including washing toilets, cleaning windows, and lifting heavy items. When refusing to complete these tasks, the employees are often reprimanded or fired.
It is reported by older workers that Walmart regularly violates their own policy of providing 15 minute breaks at regular intervals. These older workers report that their breaks, when they get them, are often not spread out over the shift but rather put at the end of their work day.
These are just some of the issues that older employees have with the retail Goliath that made billions in profit last year.
Change is clearly needed at Walmart for workers to get fair and respectful treatment.
OUR Walmart is a new organization made up of current and former Walmart “associates” who care deeply about providing good customer service and making Walmart better. The lack of respect of workers by Walmart led to the creation of OUR Walmart. There are currently 201 local OUR Walmart members in the Puget Sound area, 11 of whom recently went to Bentonville, Arkansas to corporate headquarters to demand respect on the job. OUR Walmart asserts that the treatment of older workers, in particular, has deteriorated at Walmart.
After launching their organization just last month, OUR Walmart is growing. It has served to empower Walmart employees to stand together. They are already seeing an impact. Some recent accomplishments include returning wrongfully fired employees to work, protecting employees from harassment from management, and being a resource when employees experience disrespect.
In order to support the local efforts to change Walmart, PSARA members voted to join the Making Change at Walmart coalition at PSARA’s July 7th membership meeting. The goal of that coalition is to hold Walmart accountable to local workplace and community standards. That means supporting OUR Walmart workers in the Puget Sound area as they organize for respect at their stores, and also support local communities as they organize for standards that promote good jobs and healthy communities.
If you would like to be more involved in the coalition work in your area, please contact Elena Perez at eperez@ufcw21.org, 206.436.6544.
(Anita Nath is a member of the PSARA Executive Board)
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