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Legislative News
We have compiled a list of issues which will be among our priorities during the 2008 legislative session at the General Assembly. They are as follows:
MINIMUM WAGE
While the AFL-CIO is proud to have supported the 2006 increase of the state minimum wage to $7.10 per hour on March 1, 2006, and to $7.40 per hour on January 1, 2007, it is still not high enough. Throughout the 60’s and 70’s, minimum wage earnings by a full time worker lifted a family above the poverty line. Today, even with the recent increase, a full time minimum wage worker still struggles to cover basic expenses such as rent, food, transportation and health care.
Since the Rhode Island minimum wage is not adjusted for inflation, the only way to prevent erosion of its value is to pass another increase. To achieve progress in our welfare reform efforts, it is critical to have a minimum wage that clearly states a person should not live in poverty if they work.
A study by the Economic Policy Institute, found:
Adults make up the largest share of workers who would benefit from a
minimum wage increase:80% of workers whose wages would be raised by a minimum wage increase are adults (age 20 or older).
An estimated 1,395,000 single parents with children under 18 would benefit from a minimum wage increase. Single parents would benefit disproportionately from an increase---single parents are 9% of workers affected by an increase, but they make up only 7% of the overall workforce. Approximately 3.9 million parents with children under 18 would benefit.
The earnings of minimum wage workers are crucial to their families well being. Evidence from an analysis of the 1996-97 minimum wage increase shows that the average minimum wage worker brings home more than half (54%) of his or her family’s weekly earnings.
Applying four rigorous economic tests, there was a failure to find any systematic or significant job loss due to raising the minimum wage.
Connecticut already has a higher minimum wage rate than Rhode Island. Connecticut’s minimum wage is currently $7.40 per hour and will increase to $7.65 per hour on January 1, 2007. Massachusetts minimum wage is $6.75 per hour, however, the Massachusett’s legislature has passed a bill to raise the minimum wage to $7.50 per hour on January 1, 2007, and to $8 per hour on January 1, 2008. The bill is pending Governor Romney’s response.
In summary, the overall effects of federal and Rhode Island minimum wage increases have been positive, substantial numbers of low paid workers received significant wage hikes, and the benefits flowed principally to working families that needed them the most.
AFL-CIO POSITION
The Rhode Island AFL-CIO supports raising the minimum wage to assist wage workers to stay even with inflation. Currently, Rhode Island’s minimum wage stands at $7.40 per hour. The Rhode Island AFL-CIO supports increasing the minimum wage to $7.75 per hour on January 1, 2008, and to $8.00 per hour on January 1, 2009. Effective January 1, 2010, we would support an index for inflation.
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MAINTAIN REQUIREMENT FOR WEEKLY PAY
The Rhode Island AFL-CIO vigorously opposes repeal of the present law on this issue. For workers, there is already too much week left at the end of their pay.
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PREVAILING WAGE
The Rhode Island AFL-CIO strongly supports the Davis-Bacon law and the provisions it affords to workers, taxpayers, and members of the public who use publicly financed facilities or projects. The Rhode Island AFL-CIO supports our state law and finds no basis for changes at this time.
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VOTER INITIATIVE
Initiative proposals have become, in modern society, misleading tools of wealthy eccentrics and special interests. Voter initiative is a separate track for passing legislation which takes lawmaking out of the hands of elected officials and puts it in the public arena.
Across the country, initiative proposals have spawned their own consulting industry. National firms advertise “signature collection services”, “voter mobilization”, and “spin control” for clients who can pay the price. In some states, these firms have offered prizes to voters who sign petitions, corrupting a process that at least in theory, is designed to be more democratic.
Initiative undermines the system of branches of government and bypasses elected representatives, giving a “shortcut” to legislation for those who can afford it. It ignores the process of debate and compromise which preserves different viewpoints. It weakens the ability of elected officials to develop and implement comprehensive public policies.
Initiative lacks accountability. Every time the Rhode Island AFL-CIO lobbies, testifies or supports legislation, we are held accountable for our past proposals and positions. Initiative, on the other hand, fails to hold the backers of a proposal responsible for the short or long term results.
Initiative encourages powerful interests to bypass the General Assembly and sell their issues through television, talk shows and paid consultants. It reduces the most complicated public policy issues to sound bites while creating complex and potentially confusing ballots.
Opposing measures could be placed on the same ballot. The initiative process is becoming nothing more than “mercenary democracy”.
Initiative perverts the campaign finance reform progress that has been made. Unlike the strict contribution limits for candidates and political action committees, state law places no limits on the amount wealthy individuals and special interests can spend and also allows for corporate contributions. Although the law requires that they disclose how much they spent, it does not require an explanation on how they spent it.
AFL-CIO POSITION
The Rhode Island AFL-CIO strongly opposes voter initiative proposals.
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STRICTER ENFORCEMENT OF UNIT PRICING LEGISLATION
The Rhode Island AFL-CIO supports legislation which would provide stricter enforcement of unit pricing laws, easier access to filing violation complaints, and increased penalties to ultimately encourage compliance, accuracy and precision.
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WAIVER OF SOVEREIGN IMMUNITY
The Rhode Island AFL-CIO supports legislation which would automatically waive Rhode Island's sovereign immunity status and thereby grant permission to be sued for violations of federal workplace protection and anti-discrimination laws.
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PRIVATIZATION
The Rhode Island AFL-CIO opposes privatization of public services.
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SUPPORT FUNDING FOR DIRECT CARE EMPLOYEES IN NURSING HOMES AND CENTERS FOR DEVELOPMENTALLY DISABLED
The Rhode Island AFL-CIO believes the state budget should include funding for the nursing homes and centers for the developmentally disabled at rates greater than the cost of living, and the funding should be targeted to the wages and benefits of the direct care workers.
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CHARTER SCHOOLS
The Rhode Island AFL-CIO does not oppose charter schools. We support public charter schools that are part of the school districts. An example would be the new charter school that is operated by the Laborers' Union of North America in Cranston. We do not support schools that are completely independent of school districts and school committee authority and are funded by the local school district. The Rhode Island AFL-CIO contends that under the 1998 Charter School Bill, before the state grants a charter to a school that is independent of the school district, the city or town hosting the charter school should have to approve the proposal. To do otherwise would mean that school budgets would have to be cut or taxes raised to fund these experimental schools—a direct form of taxation without representation.
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PRIVATE SCHOOL SUBSIDIES
TUITION TAX CREDITS / SCHOOL VOUCHERS
The Rhode Island AFL-CIO does not oppose school choice. The Rhode Island AFL-CIO does oppose public subsidies of private schools. The General Assembly should fund public education institutions so that they may provide education to all Rhode Island students eligible to attend. The Rhode Island AFL-CIO opposes the creation of education tax credits or school vouchers.
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PORT DEVELOPMENT AT QUONSET POINT INDUSTRIAL PARK
Development of a container port at Quonset Point would generate many high paying direct and indirect jobs. The creation of a container port at Quonset would diversify Rhode Island’s growing economy and create jobs that any citizen with a high school diploma or general equivalency degree could obtain.
A port at Quonset would help stem the hemorrhaging of manufacturing jobs from Rhode Island, and make many of Rhode Island’s businesses more competitive in the global marketplace.
A significant amount of our affiliates would stand to gain new members and prosper economically from the construction and operation of a container port.
The Rhode Island AFL-CIO believes that port development at the Quonset Point Industrial Park can be done in an environmentally responsible manner.
AFL-CIO POSITION
The Rhode Island AFL-CIO will continue to support the construction and operation of a container port at the Quonset Point Industrial Park.
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GROUNDS FOR VACATING ARBITRATION AWARDS
The Rhode Island AFL-CIO supports legislation which would prohibit vacating an arbitration award on the basis it conflicts with or impairs managerial duties, statutory powers or authority, unless the statute in question specifically provides that it shall prevail over provisions of a collective bargaining agreement or arbitrator's award.
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Teresa Heinz Kerry and Jeffrey Lewis: Bipartisan coalition -- Let R.I. lead the way in drug coverage
01:00 AM EST on Sunday, March 26, 2006
PITTSBURGH
IT ALMOST seems impossible. But last month an unlikely coalition -- legislators from both parties, led by Rhode Island state Rep. Paul Moura and state Sen. Rhoda Perry; Lt. Gov. Charles Fogarty; the Rhode Island AFL-CIO; the Rhode Island Alliance for Retired Americans; and the pharmaceutical manufacturers' lobbying group, PhRMA -- came together at the Rhode Island State House to endorse a proposed prescription-drug discount program named "Rhode Island's Best Rx."
Congress and the White House, note: This bipartisan legislation would improve the access to and affordability of prescription medicines for more than 110,000 uninsured Rhode Islanders. More than that, it would prove that when political considerations are cast aside, governments really can find effective ways to help citizens.
For starters, it's a good plan. Rhode Island's Best Rx would use the state's bulk-purchasing power to make drugs more affordable for the 110,000 mostly elderly Rhode Islanders who have no prescription-drug insurance. The state would use its bargaining power to cut the prescription-drug costs of the uninsured by 30 to 40 percent.
This would be a great boost for the state, especially for the small businesses that cannot afford to insure their workers. It's targeted to people who need it.
All uninsured people 60 and older would qualify for Rhode Island's Best Rx, as would disabled Rhode Islanders 55 and older and uninsured Rhode Islanders under 60 with household incomes of less than 250 percent of the federal poverty level ($24,500 for individuals, $33,000 for married couples, and not more than $50,000 for a household of four).
Imagine how many more Medicare recipients would have been helped had the federal government offered a discount card like Rhode Island's Best Rx, instead of the nightmarish Medicare Part D.
But perhaps the most intriguing thing about this proposed program is the broad coalition behind it. In Washington, our leaders often seem to pursue partisan advantage at the expense of real solutions to urgent challenges. And national organizations seem incapable of considering more than their own short-term self-interest.
But in Rhode Island, members of both parties and organizations with very different agendas came together to find a market-based solution to a pressing problem -- embracing both the best tradition of the free-enterprise system and the creative use of government power.
Rather than spinning its wheels on a Rube Goldberg plan like the Republican-crafted Medicare prescription-drug program, Rhode Island had a chance to lead the nation in helping people in need. It took that chance and made the most of it. The state's commitment to helping the uninsured -- many of whom have no voice, no advocate, and no home -- is inspiring.
For those who cannot afford their medication, acute illnesses can rapidly become chronic, bringing increased economic costs and physical tolls on sufferers. And preventable illnesses cost caregivers and the state millions of dollars in the delayed and more expensive treatments after patients land in emergency rooms -- or worse.
The prescription-drug crisis affects every state. Many Republicans in Congress lack the courage to revise Medicare Part D; they seem unable to craft a better alternative or to forge a clear consensus.
Without actions like those taking place in Rhode Island, no one will get help. What that state has done can be a model for the nation. The need is great, and the time is now!
Teresa Heinz Kerry is chairwoman of the Heinz Family Philanthropies and wife of U.S. Sen. John Kerry. Jeffrey Lewis is president of the Heinz Family Philanthropies (jlewis@heinzoffice.org).
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The Providence Journal - Editorial
Hike minimum wage
01:00 AM EST on Wednesday, January 11, 2006
It's time for Rhode Island to increase its minimum wage. We support a House proposal to hike it, in two stages, to $7.40 an hour from $6.75. Governor Carcieri's proposed increase, to $7.10, doesn't go far enough.
The arguments against a raised minimum wage are plentiful. Small business is an area of particular concern: A hike would be passed along to customers, in the form of higher prices for restaurant meals, convenience-store items, and other goods and services. And with a hike, such businesses might also hire fewer people (although some argue that workers' increased purchasing power would increase sales, and hence employment). If small businesses did hire fewer people, more teens and other entry-level workers would be in need of jobs. Meanwhile, an increased minimum wage would put pressure on businesses to raise the wages of workers making slightly more than the minimum.
Some of this is true. The iron laws of economics apply no matter what government does, and there's no free ride.
Still, we seem in no danger of serious wage or other inflation. And while the income of affluent Americans has risen at a fast clip over the past five years, inflation-adjusted wages for lower-income Americans have fallen.
The federal minimum wage, frozen since 1997 at $5.15 an hour, has only as much buying power as it did in 1955 -- when America was much less prosperous. Simple fairness demands that Americans in low-paying jobs have a chance to earn a decent wage.
Even the chief executive of Wal-Mart -- a company not known for generous treatment of employees -- has endorsed a minimum-wage increase. H. Lee Scott says that minimum-wage-earning people can't afford to shop at his stores.
The public also strongly supports an increase.
Of course, the cost of living varies across America, but many states have raised their minimum wage. Some 17 of them and the District of Columbia now have minimums higher than the federal base. The State of Washington (land of Microsoft) recently boosted its minimum wage to $7.63 an hour.
It's time for Rhode Island to move forward. Society benefits in many ways when people on the lower economic rungs hold jobs that reward them for their efforts. Many Rhode Islanders are working hard to sustain their families on the minimum wage, but at $6.75 an hour, this is almost impossible.
We should invest more in these citizens -- and in us as a society.
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