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

Seattle multicultural and minority small business owners speak out

By Jan Teague, President/CEO

Today I received a copy of the letter signed by 360 small, minority-owned businesses in Seattle concerned with raising the city's minimum wage to $15 per hour. 

Directed to Mayor Ed Murray, the letter asks, " If the survival of the fittest prevails with this minimum wage increase, where will the un-hired go?  Who will hire the unskilled workers?  The non-English speakers?  The inexperienced employee who cannot operate machineries or read menu tickets because they can't read or write?" 

These business owners make the observation that there are more registered minority businesses in Seattle compared to any other types and that they make up a giant portion of Seattle's economy.  They ask the Mayor to look beyond the statistical numbers to the human impact the policy will have on Seattle's immigrant community.  They don't believe that any of the research done so far has addressed their population and its role in the vibrancy and diversity of the city.  They point out that their businesses are the first step for new immigrants and they act as the job, language, and social training centers for new immigrants.  They point out that they give loans when financial institutions won't and they give advances for emergencies with no guarantee of the money being returned.  They even forego their own pay to make payroll and mortgage their homes to finance their business.  (By the way, these are traits of many small businesses)

They want the city to track the rate of business closures; immigrant employment/unemployment; and immigrant increased/decreased dependency on social services such as Medicaid, food stamps, child care subsidies, housing and utility subsidies.  They want the city to evaluate what the inflation rate will be and to track the housing market in low-income areas to see if an increase in wages directly correlates to higher ownership of homes and an increase in housing rentals and sales.

They would like the wage increase to start at $10.35 and go up over 10 years.  Ultimately, if things go sour with raising the minimum wage, and the facts show terrible consequences, they want the minimum wage increase stopped.  This could be very difficult, if you ask me.  It is politically difficult for elected officials to go back on promises for wage increases. 

I do think the minority-owned businesses have valid concerns over the lack of evaluating the unintended consequences of racing off to raise the minimum wage.  Because of the union-backed efforts on this, the issue is marching forward faster than it should. 

It's too bad that labor unions have such control over the city's leaders.  They got Councilwoman Kshama Sawant elected last fall and she is leading the $15Now campaign. Together, the unions and Sawant have managed to create a storm in Seattle that is just beginning to brew.

Congressman Denny Heck addresses local chamber

By Mark Johnson, VP Government Affairs

Today I had the pleasure of hearing Congressman Denny Heck (D-10) address the Thurston County Chamber as members celebrate its 140^th year.

Congressman Heck's talk was called the Crisis of Slow Growth.

From 1947 to 2008, the U.S. average economic growth was 3.3 percent.  From 2009 to 2013, it dropped to a staggering 1.2 percent. We termed this the  "Great Recession." 

Now, from 2014 and projected to 2024, we will see 2.4 percent growth.  That's not good.  This slow growth is coupled with many higher paying jobs being replaced by lower paying positions.  Real wages have fallen.  There is a persistent middle class squeeze.  Our economy is 70 percent dependent on consumption.

There is a growing gap between real Gross Domestic Product (GDP) and potential GDP, about $724 billion right now.  This is lost opportunity.  At a 2.4 percent growth rate, the U.S. will never close the gap.  At a 3.3 percent growth rate the gap will eventually be closed.

So how do we change our current path for the better? 

Congressman Heck offers the following advice.  The U.S. has a lot going for it.  We are a very wealthy country, with one of the highest GDPs in the world and a relatively small population.  We have a strong higher education system, one of the best in the world.  We are innovative and have a strong entrepreneurial drive.  We are a diverse country.  By 2042 people of color will be the majority in the U.S. 

Specifically he recommends five areas on which to focus.  First, we need to invest and improve our infrastructure.  To grow our economy we need to have a world class infrastructure.  Second, we have to initiate smart trade policy.  The U.S. is very trade dependent and must make strategic agreements to allow our goods to be sold to other countries.  Third, we need immigration reform.  We have a huge workforce and market that is not being fully utilized.  Fourth, we need to have budget discipline.  The federal government has to control spending and stop increasing the national debt.  Finally, Heck said we need to have regulatory balance.  There needs to be regulation to protect what we value but not onerous regulations that stifle our economy and growth.

While I was listening to his speech and how we need responsible budgeting, I couldn't help but think about the importance of the U.S. House of Representatives passing the Marketplace Equity Act that would allow states to collect already due sales tax on remote purchases by its citizens.  This act wouldn't impose a new tax, it would simply require shoppers to pay taxes due just as if they were shopping at a brick and mortar store. 

Making this act a law would help cash-strapped states make ends meet and level the playing field for all retailers.  I am happy to report Congressman Heck is firmly behind passing the Marketplace Equity Act.  For this we thank him.

Three state reps win national retail awards

U.S. Representatives Suzan DelBene (Bainbridge Island), Richard "Doc" Hastings (Pasco) and Cathy McMorris-Rodgers (Spokane) are this year's winners of the annual "Heroes of Main Street" awards presented by the National Retail Federation.

The three members of the Washington delegation are among 258 members of Congress honored this week for their consistent support of the retail industry's top public policy priorities. Eligibility was based upon key votes, bill sponsorship and advocacy on a wide array of retail priorities including patent reform, sales tax fairness, the federal minimum wage and reforming the Affordable Care Act.

NRF launched the awards last year. Last year's winners from the Washington delegation were Senators Patty Murray and Maria Cantwell and Representatives Rick Larsen, Derek Kilmer and Adam Smith.

WRA CEO and President Jan Teague and VP of Government Affairs Mark Johnson have been presenting the awards to last year's winners during the course of this year.

"NRF salutes our retail advocates in Congress for their dedication and prove commitment to public policies that support prosperity on Main Street," said NRF President and CEO Matthew Shay. "Retailers are the heart and soul of our communities, and we are pleased to acknowledge lawmakers who have consistently supported a pro-economic growth policy agenda to ensure a thriving Main Street and a health and vibrant retail sector."

Source: NRF

WRA joins in call for port officials to avoid a strike

WRA has signed on to a letter with 66 other associations, manufacturers, distributors and others asking parties involved in West Coast port labor talks to arrive at a contract without a work stoppage.

The letter notes the importance of the important role that the ports play in linking retailers with exports of merchandise from Asia.

The current labor agreement expires on June 30. Contract negotiations began this week in San Francisco.

The letter notes that the potential for a strike already has introduced uncertainty into a fragile economic climate.

Click here to read the entire letter. Members of the Pacific Maritime Association and the International Longshore and Warehouse Union have declared a news blackout as talks continue.

Source: National Retail Federation

Walmart invites "made in USA" companies to a July summit meeting

Walmart is inviting Washington State-based manufacturers and suppliers to a national summit meeting at its Bentonville, Ark. headquarters on July 8.

The networking opportunity will help Walmart meet its commitment to spending an additional $250 billion on products made in the U.S. over the next decade.

The potentially new Walmart suppliers could gain access to the estimated 140 million Walmart customers. The all-day "open call" summit will focus on new business development. Walmart will make senior leaders, buyers and merchandise officials available to discuss potential business.

Click here to register for the event and learn more background.

Source: Walmart

WRA to serve on workers' comp committee

By Tammie Hetrick, VP Retail Services

I have accepted an invitation to serve on a Labor & Industries committee that will study lowering pension discount rates and adjusting mortality tables.

This is important work because decision on these issues would affect the levels of workers' comp insurance rates for self-insured and state clients alike.

A first meeting is expected to be held early next month at L&I's Tumwater headquarters.

I will make follow up reports as discussions warrant or as decisions approach.

AG seeks public input on use of surplus utility funds

Attorney General Bob Ferguson is seeking public input on a pending opinion regarding the use of surplus utility funds and the impact on rates.

Interested members of the public are required to express their interest to comment by May 28, 2014 by sending an e-mail to jeff.even@atg.wa.gov or by writing to the Office of the Attorney General, Solicitor General Division, Attention Jeff Even, Deputy Solicitor General, P.O. Box 40100, Olympia, Wa. 98504-0100.

Rep. Shelly Short, R-Addy, has asked Ferguson to render an opinion regarding public utility rates. She wants to know if a city is required to reduce rates if the utility accumulates a financial surplus and to report on which authority determines if a city's utility rates are considered "reasonable" under the law.

The May 28 deadline is not the same as a deadline to comment. The AG first requires members of the public to express their interest in commenting. The comment deadline is at a later date.

After notifying the Attorney General, the office may provide a written copy of the legal questions at hand and instructions on how to submit comments including due dates.

Click here for more information on Attorney General opinions.

Source: Office of Attorney General 

Sales tax revenues up 6.4 percent

In another signs of continuing economic recovery, the latest monthly retail sales tax revenues to the state were up 6.4 percent compared to the same April 11 through May 10 period a year ago, the Economic Revenue Forecast Council reported this week.

Retail sectors that  showed the strongest growth in tax payment included nonstore (online) retailers, up 17.3 percent; furniture and home furnishings (up 10.8 percent) and food and beverage stores (up 8 percent).

Sectors where tax payments dropped off slightly were apparel and accessories stores (down 0.3 percent); sporting goods, toys, books and music (down 0.3 percent) and general merchandise (down 0.2 percent).

Job creation statewide since a February revenue forecast was 12,800 net new jobs, 2,100 fewer than the 14,800 expected. Regardless, the March state unemployment rate was 6.3 percent, down from 7.1 percent a year earlier.

The overall statewide unemployment rate of 7.4 percent in 2013 dropped from the 2012 rate of 8.1 percent.

Click here to review the entire monthly tax revenue update.

Source: ERFC

King County's retail economy is vibrant, statistics show

In the state's most populated county, King County, the retail industry has proven to be a significant economic stimulant, according to statistics by the Employment Security Department and the Workforce Development Council of Seattle/King County.

An infographic on the online news site, Crosscut, shows that:

*At 7.6 percent growth, the retail industry has been among the most productive job creators in the past year.

*Of the county's fastest growing industries on a percentage basis, retail offers the most vacancies at 4,990 job openings.

*The number of retail employees in King County grew from 115,400 in March, 2013 to 124,200 in March of this year.

Source: Crosscut

April sales up 4.7 nationally compared to last year

Unadjusted April retail sales were up 4.7 percent compared to the same month last year, the National Retail Federation reported this week.

In the same report, the Census Bureau released adjusted results showing a 4 percent gain in April sales nationwide compared to the same month a year ago.

Despite year-over-year growth in sales, April sales nationally proved flat compared to March of this year, NRF reported.

"The shift in Easter to April did not provide enough bounce to retailers as retail sales struggled to keep their strong spring pace," NRF President and CEO Matthew Shay said.

Additional NRF findings include: 

*6.6 percent unadjusted annual sales growth at health and personal care stories.

*5.2 percent annual growth at clothing and accessories stores.

*5.3 percent growth at general merchandise stores.

Economists use adjustments as a statistical method for removing seasonal components over time, such as greater consumption leading up to the holiday (Christmas) shopping season. They say this helps them to better understand underlying economic trends.

Despite flat April results, job growth and income gains are strong enough to continue fueling economic recovery, said Jack Kleinhenz, NRF's chief economist.

Help elect pro-retail candidates by donating to the PAC

By Mark Johnson, VP Government Affairs

The election season is upon us.  This is an important year with all of the state House members and half of the state Senate up for election. 

WRA's Retail Action Council Political Action Committee, or as we call it the RAC PAC, will be a major player in helping elect pro-retail candidates to the legislature.  Our process is very involved and thorough to ensure the greatest chance for success. 

First, we are diligently working on a voting record for all current members of the legislature.  We select approximately 10 bills per chamber that we were involved in and score the legislators on whether they voted with us or sponsored something we liked or didn't like.  We then combine the 2014 scores with the 2013 scores for a biennium or two-year total.  This gives a better representation of the legislators overall support or lack thereof.  Once the voting record is done the RAC PAC will make its first round of endorsements. 

Surveys will be sent to all candidates who don't have a voting record and who have filed to run for the legislature.  After scoring the surveys we will decide which candidates to interview based on their scores and the viability of their districts to elect them.  Recommendations will then be sent to the RAC PAC for consideration of endorsements and contributions.

RAC PAC contributions are very important to help the pro-retail candidates to get the word out.  Yard signs, letters, websites, radio, bill boards and TV all cost money.  A contested House race can run anywhere from $100,000 to $300,000 and an average Senate race can cost upwards of $500,000. 

Individual donation limits to candidates this year are $950 per election, so for the primary and general you can give $1,900.  Contributions to PACs are unlimited.  We can also accept corporate dollars.

In order to secure a pro-retail legislature it is critical that contributions to the RAC PAC be made.  If you are in a position to donate please mail a contribution made out to:  The Washington Retail Association Retail Action Council PAC, P.O. Box 2227, Olympia WA  98507-2227.  We appreciate all of the WRA members who have already donated.

If you would like to discuss giving opportunities please give me a call directly:  360-943-9198 ,  Ext. 15  We appreciate your serious consideration of this very important component of our political program.

Rep. Overstreet steps down before candidate filing week

Rep. Jason Overstreet, R-Lynden, announced last week that he would not run for third term representing the 38^th District including Whatcom County communities including Bellingham.

Luanne Van Werven, vice chair of the state GOP and former chair of the Whatcom County Republicans, has announced she will seek Overstreet's seat leading up the November election.

This switch is among the developments this week as candidates must file their intentions to run with the Secretary of State by Friday of this week.

Click here to keep track of all the candidates filing for statewide elections this year.

New problems with state health care network

A minority of customers has recently experienced the latest irregularity in service from the Washington Health Benefit Exchange.

Newspaper reports last week told of billing problems including customers who had paid premiums but turned up with no coverage when they sought treatment. The frustration in addressing mistakes prompted one customer to drop his coverage.

The state is working with its internet service provider to correct the errors as soon as possible, according to the news reports. Richard Onizuka, CEO of the exchange, emphasized that state computers did not cancel any policies and that the problems affected fewer than 5 percent of the exchange's 164,000 customers.

Earlier problems with the exchange have centered on long delays in answering or returning calls to the exchange's telephone banks set up to help new customers. Click here to read more about the recent service problems.

Source: Associated Press

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.

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.

Safety tip: (last of three parts)

Office layout can promote safety

Ideally, the layout of a workspace should be tailored to the needs of the employee who works there most often.

For example, it's best to place items used most frequently closest to an office chair, at arm's length. This could apply to a phone or writing pad. Plants and family photos are best kept at a farther distance or on the office wall.

Proximity reduces the need to reach or bend forward, an action that can lead to injuries such as back strains.

Consider these few additional points:

*Which is your dominant hand? The answer should determine where to locate a phone or made writing space available.

*A computer monitor should be high enough that the eyes are at the same level as the top of the monitor and placed as far away as the eyes can comfortably view it.

*

Another option worth considering might be an adjustable table that allows as desk bound employee to sit part of the day and work while standing part of the day.

Particularly for desk jobs, these sorts of adjustments can have a bearing upon whether an employee gets hurt on the job.

For more on work station layout, follow this link. Also helpful might be this Labor & Industries link.

It's important that companies take the time to work with each employee to arrange a workspace layout that suits their needs including height. For additional ergonomic information, check out a few videos available on RASI SAFETY TV.

In the end, paying attention to office ergonomics not only can reduce injuries. It goes hand in hand with increasing or maintaining a company's overall productivity.

Rick Means, WRA's Safety and Claims Administrator, is available to

members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-943-9198 x18, or rick.means@retailassociationservices.com

Links to help with Oso recovery effort

The Everett Herald newspaper has printed a comprehensive list of contacts that businesses or individuals may reach if they wish to offer needed assistance in recovery from the fatal March landslide in Snohomish County.

The list includes contacts at banks, hospitals and charitable organizations and includes updates on fund raising efforts.

Click here to review the full list.