Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

tammie@retailassociationservices.com  

Jim Szymanski

Unions work to elect local government leaders

By Jan Teague, President/CEO

My comments this week are more about what is happening with local governments than they are about unions, but my point is that unions are working hard to get people elected to local government who will either back their agenda or say things publicly to bring attention to their agenda.  It amazes me how these political changes happen over time and before you know it there is a groundswell of expensive rules coming out of local governments.

Let's consider last week's comments by Seattle Mayor Mike McGinn.  He publicly said that he won't support Whole Foods coming into West Seattle unless the company raises the wages of its workers.  He opposed a mixed use development there based on this point saying, " I'm setting a new standard here, that we are going to look at the wages they pay, and benefits, when a company wants to develop with land that involves public property."  He wrote in a letter that "non-union" Whole Foods pays significantly lower wages and benefits than other grocery stores, so it violates the city's social and economic justice goals.  McGinn said that Whole Foods will drag down the wages of other stores. 

Whole Foods pays non-management workers on average $16 an hour in Seattle, plus health benefits and has been picked as one of Fortune's "100 Best Places to Work" for 16 years in a row. 

The growing movement to use local government politics to force wages higher is also happening in the city of SeaTac where there the City Council has voted to schedule a November special city election this year about whether to raise the minimum wage to $15 per hour for hospitality and transportation workers and concessionaires located at or near SeaTac Airport. Tacoma businesses also expect a similar proposal could surface in their city this year.

These actions are happening across the country in areas where unions have managed to gain local government elected seats or have done signature drives to create momentum for their agenda.  Just yesterday there were news reports that  Washington, D.C. is opposing a Walmart unless it meets wage demands while the Mayor of Chicago rejected a similar idea.

As people in business all know, this doesn't even stop at the increase in minimum wage.  It means all other wages are tiered up from that lowest wage.  It means that the cost of living goes up in that area (Seattle), further increasing the CPI which in our state sets the minimum wage across the state.  Let's not forget that it also means a stronger negotiating position for unions at union-run businesses that will now bargain starting with a higher standard. 

I heard this called a Ponzi scheme once and thought that it fit.  Not because it is one, but because Ponzi schemes eventually fall apart once there are so few at the bottom that they can no longer shore up the pay of those further up the ladder.  The idea that business can pay everyone these high wages is unrealistic particularly because price sensitivity is not even a local issue any more.  People shop online all the time to find better prices.  If they don't buy in Seattle, what happens then? 

How a free market economy runs is part mystery because it is complex, proprietary and competitive. But one thing is for sure; city government can really muck it up when it starts to think that it can ask a company to open up its books and demand it pay a certain wage before the city decides to allow it to be in the city.  And when business left Detroit and the population dropped, what happened?  It's a good example of any city's future that doesn't work to encourage and support a mix of different types of business growth.

SeaTac schedules Nov. election on "living wage" proposal

A wage and benefits proposal opposed by WRA has been scheduled by the City Council for a special November City of SeaTac election. 

The proposal on behalf of hospitality and transportation workers around SeaTac airport would spike wages by 60 percent and require paid sick and safe leave for covered employees. The ordinance also would apply to airport concessionaires.

The council passed on an option to adopt the proposal in favor of scheduling the public vote, as requested in a letter to city officials by Jan Teague, WRA's President/CEO.

Teague is among members of a business coalition who note that the wage ordinance would burden SeaTac businesses, result in layoffs and business closures, discourage new businesses from moving into the city and slow the economic recovery from the recession.

In her letter, Teague noted that wages in the state already exceed national averages and are influenced by the state's highest-in-the-nation minimum wage.

WRA board opposes I-517

At its annual retreat last week in Spokane, WRA board members voted unanimously to oppose Initiative 517 scheduled on the Nov. 6 ballot.

The initiative addresses the movements of initiative signature gatherers on store property.

WRA believes the initiative language expands the petitioners' ability to collect signatures on any retailer's property and where ever petitioners want to stand to collect these signatures.  That violates the merchant's property rights. WRA supports the right of free speech but reserves the right to continue to define how the petitioners may use our property.  We should be able to ask for identification of signature gatherers and preserve the orderly and safe flow of shoppers in entry ways.  We should also be able to require petitioners to leave premises if they ignore the standard rules we set up for petitioners and other community groups that use our property. 

In recent years, shoppers have been confronted and in some cases injured by overly aggressive paid and volunteer signature collectors in front of stores and inside shopping centers.

In other business, Mark Johnson, WRA's VP of Government Affairs, reviewed results from the 2013 Legislative sessions. He highlighted accomplishments including expanded retail beer and wine tasting opportunities, tougher penalties for those convicted of pharmacy robbery and preserving the non-resident sales tax exemption in its current form.

The board also heard presentations by Richard Hadley, President and CEO of Greater Spokane Incorporated and Dave Condon, Mayor of Spokane.  A panel of legislators from the area also met with us and talked about this past session and our interest in approving a sales tax free holiday weekend.  Those in attendance included Senators Michael Baumgartner and Andy Billig and Representatives Marcus Riccelli and Jeff Holy.

Legislature hears about liquor thefts

A House committee today took testimony on whether to address a problem with theft of liquor from some retail outlets.

Store thefts have increased since the passage of Initiative 1183, resulting in liquor sales going private last summer. But adjustments by retailers in how liquor is displayed have helped stores reduce the problem, according to the testimony.

Placing locks on some displays and bottles has improved the problem, retailers testified. They added that sharing information through an organized retail crime network of security personnel also has helped police break up crime rings that have been focusing on liquor.

The testimony was to the House Government Accountability and Oversight Committee.

In answer to committee chair, Rep. Christopher Hurst (D-Enumclaw), the Liquor Control Board's Enforcement Chief said state officials can suggest, but not require that retailers move liquor displays farther from exits.

Olympia police chief Ronnie Roberts testified that his records show that about 43 percent of those caught stealing liquor are juveniles below the legal drinking age.

Retailers and law enforcement officials urged the Legislature to restore some funds in the state general fund to a revolving liquor fund to help boost city and county police resources to focus more staffing on investigating liquor thefts.

Hurst did not indicate what if any further action the Legislature would take to address the issue.

No on 522 website launches

A website opposed to Initiative 522, requiring labeling of genetically modified foods, has launched.

WRA is among a coalition of parties opposed to I-522. WRA believes the requirements would unnecessarily confuse and alarm consumers and result in higher food prices.

The No on 522 website allows you to read the entire proposal on the November ballot and review news coverage and editorials opposing the proposal.

The site notes that the labeling requirements are arbitrary and include confusing and illogical exemptions. It would establish labeling requirements for Washington State alone, add costs to farmers that would increase food prices and give trial lawyers unprecedented rights to sue farmers, food producers and stores owners over the wording on food labels.

WRA urges members to visit the site and begin learning about the problems with the initiative.  

Health care webinar on demand online

This month's National Retail Federation webinar, "Choices and Consequences under the Affordable Care Act" now is available on demand.

Previous registrants should click here to view the presentation. You will need to provide your e-mail login at the prompt.

Others interested in the content should visit www.nrf.com/webinars to review other topics covered in NRF webinars. Contact Lizzie Dorman for any registration assistance.

For additional health care reform insights, click here.

Source: NRF

Retail crime webinar scheduled on Aug. 1

Investigators from Walgreens and Publix Supermarkets will discuss organized retail crime fighting techniques during a one-hour webinar on Aug. 1.

The event, sponsored by the Retail Industry Leaders Association, will begin at 11 a.m. West Coast time.

Participants will learn investigating tips and which strategies work toward successful prosecution.

Click here to register.

Source: RILA

Tacoma chamber needs feedback on business threat

A grassroots organizing effort has been identified that is trying to pass a Tacoma law to require businesses to offer paid sick and safe leave time to employees.

A similar law in Seattle, the only one of its kind in the state, has proven to be an expensive record keeping nightmare.

WRA is cooperating with the Tacoma-Pierce County Chamber of Commerce to inform businesses about this proposal and solicit comments regarding the burdensome financial impacts it would bring if passed into law. Contact Mark Johnson, VP of Government Affairs, for more information at 360-943-9198, Ext. 15 or mark.johnson@retailassociation.org.

WRA members may contact Tom Pierson, President & CEO of the Tacoma-Pierce County Chamber of Commerce for more information, at 253-627-2175. Also, visit the chamber's website established to solicit testimony opposing the idea.

Tacoma city council members have received many calls of concern from the Tacoma business community and have publicly expressed concern about the idea.

WRA opposed the Seattle law on several fronts. It is expensive to administer and leaves room for abuse that can be damaging to businesses that need to remain adequately staffed to serve customers.

Look for updates on this issue in future WRA newsletters.

Watch video overview of WRA's discount shipping partner

WRA's third-party shipping provider, PartnerShip, has released a short video overview of the discount services it offers customers.

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining PartnerShip free of charge.

Four other possible advantages of joining PartnerShip include:

*Routing management. Based on an analysis of shipments, PartnerShip will recommend the best shippers for particular routes. The recommendation is based on a carrier's cost effectiveness and customer service.

*Bill auditing. Vendors such as PartnerShip say they often find invoices with rate errors of up to 10 percent in favor of the freight carrier. Corrections are made before the third-party vendor sends the bill to the customer.

*Improved inbound shipping. By relying on vendors to control your inbound shipping, it can be difficult to learn how and when your orders will be shipped and delivered. You can gain that knowledge by arranging shipping through a third party partner such as PartnerShip.

*Consolidated invoices. For frequent shippers, this can mean paying only one bill weekly or monthly as opposed to paying for each shipment.

Click here to watch the video overview of the company and obtain contact information. Also, visit PartnerShip's website and its improved, separate shipping website.

WRA members offered discount to Sept. 19 employment seminar

The law firm Lane Powell will conduct its annual seminar on employment law and human resources issues on Sept. 19 at the Four Seasons Seattle hotel.

The firm is allowing WRA members a discount on the registration fee.  The day-long event is co-sponsored by the Lake Washington Human Resources Association.

Attendees will receive an employment law update; learn of impacts from the National Labor Relations Board, impacts from disability and wellness laws and ways to protect sensitive company information and data.

Click here to learn more and register. 

Target wins preparedness award

Target Corp., in collaboration with Seattle police, has received an emergency preparedness award from the International Association of Emergency Managers.

Target supported Seattle's Office of Emergency Management in providing educational sessions to at-risk groups through local social service agencies. Attendees received a preparedness kit, dinner and an invitation to a "Build-a-Kit" event where invitees received a $50 gift card and a shopping list to assemble their own preparedness kits.

Such kits ideally include medications, flashlights and batteries, dry foodstuffs, important documents and tools to have close by in the event of disasters such as earthquakes, floods and windstorms that cause power outages.

Award winners, announced earlier this month, are scheduled to be honored in person at an annual conference in Reno in October.

Click here to read more about the competition.

Source: Target