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@retailassociation.org

Jim Szymanski

Freedom Foundation explores union transparency

By Jan Teague, President/CEO

I met with the new President/CEO of the Freedom Foundation, Tom McCabe, this week.  He had a summary of union contributions to Governor Jay Inslee in his race in 2012. 

Twelve unions donated $5.8 million dollars or 54 percent of donations to the Inslee campaign.  Much of their campaign money went towards negative ads against Rob McKenna.  How can this much money come from one source? 

It's partly because people are forced to pay union dues and then have no say over how that money gets spent.  The Freedom Foundation recommends five reforms to better protect union members:

1.     Allow agency fee payers to opt out of paying.

2.     Prohibit unions from charging more than their expenses related to workplace representation.

3.     Require unions to report political "education" of their members to the Public Disclosure Commission as independent expenditures.

4.     Prohibit unions from using dues for political purposes without the express consent of the member.

5.     Require unions to report their political related expenditures to the members paying for them.

Over half of all government employees in Washington, some 274,000, are represented by a union and are required to pay dues.  According to an exit poll after the 2012 Governor's  race, 46 percent of those voters voted for Republican gubernatorial candidate Rob McKenna. 

However, data from the state Public Disclosure Commission (PDC) indicates that nearly all union funds were used to defeat McKenna and elect Inslee.  The Freedom Foundation believes reforms are needed.  The foundation's concern is that this monopoly power overcharges members for workplace representation and spends the excess on advancing a political agenda with which many members disagree. Consequently, the foundation believes these political expenditure operation need to be reviewed and reformed.

Watch for more activity from the Freedom Foundation on this issue.  It has developed a strategic plan to expose the problem and expand people's interest in increasing the pressure on unions to restructure.  The foundation believes that if similar reform can be accomplished in other states such as Pennsylvania and even Illinois and California, it can be done in Washington, too.

State, local gas vapor fees under study

By Mark Johnson, VP Government Affairs

The Joint Legislative Audit and Review Committee (JLARC) is studying the fees and regulations associated with gas vapors. 

There are concerns that gas vapors can be released when customers pump gasoline or when a fuel truck fills a station's tanks.  Vapors not only can harm the environment but also can impact sales from loss of product. JLARC is expected to submit its report to the Legislature in December this year.

WRA has several members who sell gas to consumers and pay these fees to state and local clean air authorities. 

Skyrocketing and duplicative fees to the state and local government present two problems with the current fee structure.

Gas dealers currently have to pay fees for inspections to both state and local authorities.  They are basically doing the same inspection.  This seems duplicative.  Perhaps only state authorities should be involved in collecting fees.

The fees charged by local authorities also are skyrocketing. The Northwest Clean Air Agency's 2010 fee was $285; this year it's $4,800.  Further, gas vapors released into the air have declined significantly with the federal regulation that all cars manufactured after 2000 must have a vapor containment system. 

It doesn't make sense that fees should have increased as much as they have considering that vapor emissions have decreased.

WRA hopes that JLARC will put the pieces of this puzzle together and make a case to the legislature that significant changes need to be made to the rate of the fees and to how fees are applied.  The system as it works today is unfair and as a result, consumer s are paying more than necessary at the pump.

Weigh the risks of changing risk classifications

By Tammie Hetrick, VP Retail Services

From time to time, WRA Retro members think of changing risk classifications for their employees if workers' compensation insurance rates rise.

In hopes of saving money on insurance premiums, members often think it would be best to assign some workers to low-risk categories, even if they sometimes are called to be in a more dangerous work environment.  A salesperson in a tire store, for example, might better be assigned to a lower-risk insurance classification even if their job calls on them to walk through the back shop, occasionally carrying tires and exposing them to the greater risks being around heavier equipment.

The problem with this reasoning is the way the workers' compensation system works. Each classification is expected to meet its own claim expenses from the premiums paid into its fund. In this case, by removing salespeople from the higher risk classification, a company would reduce the number of rate payers and reduce its fund to pay for treatment of injuries. 

In such a situation, rates can jump for those workers changing the tires largely because the salespeople were removed as contributors to the insurance fund for the back shop.

Far better than shuffling workers among risk classifications is to commit to operating a safe work environment in which injuries are reduced and costs, as a result, are kept in check.  You have some control over your rates through your experience rating.  You can reduce your experience and pay less than the base rate within the risk class through safety and reduced losses.

The logging industry offers a good lesson in understanding this principle. As logging became more automated, workers whose risks of injury were reduced changed risk classifications to save on premium payments. But the trouble was, the loggers risking injuries cutting down trees saw their insurance rates spike after they lost the premium payments from their colleagues who changed their risk classifications.

If companies find themselves weighing the options of changing risk classifications, it's important to remember that the lure of lower rates on one hand could be outweighed by the rising of costs of other workers left with fewer contributors across whom to spread the risks of getting hurt on the job.  Since most hours would continue to be paid in the higher risk classification, most members would potentially lose with a new risk class assignment.

What can you do?  We identify members who may not be paying any employees under the 4904 - Clerical category.  We advise members to identify at least one person who is devoted to the front sales area that never enters the shop and does not handle or move tires.  You can save significantly by assigning one person to this task and reducing their hazard exposure.  If you would like us to review your risk classifications for further consideration, please contact Robert Mitchell at 360-943-9198 ext. 14 or Robert.mitchell@retailassociationservices.com.

U.S. House redefines Obamacare's notion of full time

In a move WRA and retailers nationwide support, the U.S. House of Representatives passed a bill last week that increases the definition of full-time employee from 30 hours of work per week to 40 under the Affordable Care Act. The vote was 248-179 in favor of the traditional 40-hour definition for full-time work.

Retailers including the National Retail Federation maintain that the broader definition will lessen the need for retailers to reduce hours and provide more stability to the economy.

Prospects for a similar endorsement in the U.S. Senate are far less certain, according to spokesmen for the NRF.

Speculation is that the Save American Workers Act could get lumped in with Congressional debate about raising the federal minimum wage and result in a compromise definition of 35 hours equaling full-time work and eligibility for Obamacare.

NRF is not expected to endorse such a compromise if it includes an increase in the federal minimum wage. Click here to read a letter in support of the 40-hour definition for full time by the Retail Industry Leaders' Association.

Sources: RILA, NRF

Olympia open house on bag ban set for April 16

Olympia and Thurston County officials have scheduled an open house from 5 p.m. to 7 p.m. on Wednesday, April 16, to help retailers prepare for the ban on plastic shopping bags that takes effect on July 1 of this year.

The ban applies in Olympia, Lacey, Tumwater and unincorporated areas of Thurston County.

The city's Waste ReSources department and Thurston County Solid Waste will have sample bags on display, answer questions and review their outreach efforts to prepare retailers for the switch.

The meeting is scheduled at Olympia City Hall, 601 4^th Avenue East, Room 207.

Source: City of Olympia

NRF asks feds to investigate "patent trolls"

The National Retail Federation has asked Congress and the Federal Trade Commission to put a halt to patent trolls, one of the latest threats to retailers.

Trolls are entities that buy overly-broad patents and later coerce financial settlements from retailers they sue and accuse of infringing on those patents.

"Trolls target retailers because...they are more numerous than manufacturers and suppliers, and therefore are more profitable to the trolls," said David French, NRF's Senior Vice President. "Trolls also know that retailers have less technological expertise to defend the allegedly infringing products [and] operate on thin profit margins and do not have the resources to fight back."

French submitted a statement this week to the House Energy and Commerce Subcommittee, which is examining patent trolls' use of intentionally-vague demand letters seeking financial settlements.

Trollers have improperly threathened retailers and nonprofits for their use of common everyday technology such as scanning barcodes, printing receipts, the sale of gift cards and connections to Wi-Fi networks. WRA and NRF are concerned that the trend is clogging courts, inhibiting job creation and threatening retailers by improperly driving up costs.

Retailers often settle trolls' claims rather than challenge them in court due to the fact that the average case takes about 18 months and costs roughly $2 million to adjudicate. In response to the growing patent troll problem, which costs the economy $30 billion a year, NRF supports legislative and regulatory proposals aimed at requiring greater transparency and specificity from the trolls, and stopping the trolls' abusive and costly behavior before the suit ever reaches a court.

Vermont and Oregon have passed laws in hopes of combatting the problem.

Inslee signs state supplemental budget

Gov. Inslee last week signed the state supplemental budget passed by the Legislature but vetoed several sections of the document.

The spending plan preserves tax incentives important to WRA, including the sales tax exemption for some out-of-state shoppers and does not introduce new taxes. It spends an addition $155 million including $58 million for school books and supplies; $23 million in early learning and child care; $20 million in mental health and $5.4 million in increased prison capacity without increasing state tuitions.

The 2015 Legislature will face adopting a two-year, biennial spending plan including the challenge of finding more money for schools to comply with a state Supreme Court ruling to fully fund state schools.

Click here to review the entire supplemental budget. Click here to review Inslee's entire veto list and rationale. 

Cautious Easter spending expected this year, survey finds

Shoppers are expected to slightly trim their Easter-related spending this year, a new survey for the National Retail Federation has found.

Consumers are expected to spend an average $137.46 on apparel, food, candy and gifts, down from $145.13 last year.

Regardless, as the weather warms, retailers are expecting increased customer traffic, said NRF President and CEO Matthew Shay.

"As one of the biggest holidays of the year, retailers are looking forward to increased customer traffic in stores and online and will roll out promotions on everything from garden supplies and patio sets to apparel and grocery items as they help their customers prepare for the holiday," Shay said.

Though overall spending is expected to dip, holiday meals and brunches will remain popular, Shay said.

Other findings:

*Of the 6,387 surveyed, 85.7 percent will spend an average of $43.18 on a holiday meal.

*42.9 percent will buy new spring attire.

*89.3 percent will stock up on candy, spending an estimated $2.2 billion.

Click here to read more. 

Shippers save thousands of dollars with WRA partner

Shipping customers saved an average $3,100 in 2013 by shipping with PartnerShip, a partner with WRA.

Enrolled WRA members can save up to 27 percent on select FedEx services.

WRA encourages all members to explore this service. Visit www.PartnerShip.com/99WRA to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902 or e-mail sales@PartnerShip.com. You also may click here to receive a free rate analysis to help with your shipping decision.

Help for Oso mudslide survivors

Companies or individuals looking to help with relief efforts for survivors of the Oso mudslide can learn more about how to help at a new website set up in Snohomish County.

The site http://www.snohomishcountywa.gov/2362/How-to-Help explains how and where to send donations and how to volunteer help.  

Employment Security also has announced some survivors may qualify for disaster unemployment benefits. Such benefits are available only for people who don't qualify for regular unemployment benefits. Applications must be submitted to Employment Security by May 5, 2014.

Call a special phone line 855-636-5610, option 1 to learn more.

WRA co-presents May health care conference

WRA will co-present the Washington Policy Center's 12^th Health Care Conference on May 13 at the Hilton Bellevue Hotel.

This year's conference will feature this year's keynote speaker, Katie Mahoney, Executive Director of Health Policy at the U.S. Chamber of Commerce. The event will include a bi-partisan legislative session review, followed by three panel discussions. Mahoney also will present at a Spokane luncheon on May 14.

This policy event usually attracts 300 or more state legislators, candidates, business owners and health care industry representative. Click here to register online. 

Former Defense Secretary to address Policy Center

Former Secretary of Defense Robert M. Gates has been scheduled to address the Washington Policy Center's annual dinner in Bellevue on Oct. 2.

Gates served under President George W. Bush but is the only Secretary of Defense in U.S. history asked to remain in that office after a change in administrations by newly-elected President Obama.

WPC's annual dinner has become the Northwest's largest policy event, attracting more than 2,000 elected officials, business leaders and policymakers. This year's event will be held at the Bellevue Hyatt Regency.

Click here to register to attend.

Save the date for the 2014 business fair

Organizers have settled on Sept. 27 for this year's annual small business fair at Renton Technical College.

WRA is an annual exhibitor at the fair, where speakers address numerous seminars on starting and growing a small business. Admission is free.

Look for updates as they occur at www.bizfair.org. Also, look for periodic announcements on the Business Fair Facebook page.

Seattle extends grace period for building energy reports

WRA reminds many Seattle commercial and multi-family building owners that they can avoid fines for late energy use reports if they complete and file them by July 1 of this year.

Reports for 2013 energy consumption were due to the city on April 1. Building owners who have not yet filed reports have until July 1 to avoid fines that will be imposed for missing data following that summer date.

The requirement applies to multi-family and non-residential owners of buildings 20,000 square feet or larger. Owners also must provide an energy disclosure report if a tenant, buyer or other qualified party requests it.

Click here to learn how to comply with the Seattle law.

Source: City of Seattle 

Safety tip: (one in a series)

Update, enforce substance abuse policies

According to SAMHSA, a federal agency tracking substance abuse, for 2012 there were about 135 million users of alcohol in the USA. The same agency estimates that 23.9 million Americans use illegal drugs. If you combine those estimates and consider Washington State's new marijuana law, there's a greater chance these days that a co-worker could be under the influence of a drug.

Alcohol is the primary drug-related workplace issue followed by marijuana and abuse of prescriptions.  Often people under the influence do not adhere to safe practices in the workplace.

Signs of possible drug abuse in the workplace can include:

*Frequent disappearances

*Excessive use of sick or personal days

*Uncharacteristic behavior

*Roller coaster work performance

*Difficulty with relationships

Substance abuse often leads to a loss of productivity and may force others to pick up the slack. There is also a strong relationship to increased workplace injuries.

Employers should update their substance abuse policies regularly, making sure that marijuana and abuse of prescription drugs are included. For information on how a small business can set a policy, click here.

Here is a good article about tips for dealing with substance abuse problems in the workplace and here is a SAMHSA report for Washington State.

WRA employs Rick Means as a Safety & Claims Administrator who is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or rick.means@retailassociationservices.com.