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

Small franchise owners work to stop Seattle minimum wage increase

By Jan Teague, President/CEO

In a federal complaint I've just received, the International Franchise Association (IFA) and five locally-owned small businesses with franchises are asking the U.S. District Court to block Seattle's minimum wage ordinance, which takes effect April 1, 2015. 

They have a good cause for small businesses who use the advertising support of a franchise to help them succeed.  We have a number of franchises in our membership and they clearly are small independent businesses whose employees often don't make more than the average worker.  Some take big risks putting up their homes to fund their costs.  Others hire family members to help, which makes the stakes even higher if the business doesn't succeed.  A business that can't afford these mandated increases in labor costs will either close or have to lay off people. 

A few weeks ago I read a letter to Seattle Mayor Ed Murray signed by hundreds of minority small business owners in the city trying to explain their concerns.  I was struck by their story of how they support new immigrants who come to Seattle.  They offer a job, teach English, provide community services and often offer small loans or pay advances for emergencies.  They worry every day about cash flow and often forego their own pay to make payroll. 

Are these small businesses unique?  Yes and no. 

Many small businesses live on a shoe string.  The rate of failure is quite high.  I have always admired how so many people take these kinds of risks to make a living.  Over the last few years government has been touting that the hope for economic recovery rests with small business growth.  Why would government hope that is how our economy recovers? 

I don't think they mean it.  Or those in public office simply don't know very many people who live these risks daily trying to keep their businesses alive.  If government officials really understood or took the time to understand, lawsuits like the IFA's wouldn't be necessary and government would be working on policies that help, not hurt small business. 

I wonder if the Seattle city council didn't believe the letters they received from the minority small businesses or the International Franchise Association.  They were definitely given the information and chose not to consider it.  Now, the city will have to use taxpayer funds to go to court to defend the Council's thinking. 

Let's hope the District Court's legal system, after considering the existing protections under the commerce laws of this country, will approve the injunction that would stop the ordinance in the short term until the case can move through the court system.  This is a big issue that could work its way beyond District Court.

If the District Court hears the case and its directions to the city do not support these small businesses, the IFA could appeal to a higher court. 

These fights take a long time to sort out.  It could be a few years before it's fully resolved. To learn more about the issue and the coalition of Seattle small business owners working to oppose the franchisee provisions of the city's new minimum wage law, go to www.SeattleFranchiseFairness.com. 

Activist launches referendum challenge to repeal Seattle's $15 an hour minimum wage

West Seattle political activist Craig Keller has launched signature campaigns to repeal Seattle's $15 an hour minimum wage ordinance and to change the city charter to withdraw the city council's power to set wages.

Keller has been active in opposing plastic shopping bag bans, temporarily stopping a ban in Seattle but falling short in an Issaquah election to overthrow that city's plastic bag ban.

Keller aims to collect 16,510 signatures by July 2 to qualify his referendum on the November ballot in Seattle. He also has six months to gather 30,957 signatures to qualify a charter amendment election in Seattle late next year. A successful referendum election would repeal the $15 ordinance the city council approved in May while a successful charter amendment vote would strip the council of its power to set wages, Keller said.

His signature petitions can be downloaded, printed and mailed by visiting www.SaveOurChoice.us.

Those opposing $15 ordinances in Seattle and SeaTac are concerned on several fronts. They fear resulting layoffs and business closures; a tougher job market for inexperienced applicants; rising prices; and businesses moving out of Seattle seeking lower overhead expenses and the ability to charge lower prices.

Keller's two-pronged response is but one of several that have come about in response to the city council vote. Responses include lawsuits (reported above) and initiative campaigns to head off the possibility of numerous smaller governments from surpassing the state minimum wage, now the nation's highest, at $9.32 an hour. The state wage includes automatic annual increases corresponding to a cost of living index.

Former SeaTac City Council member Rick Forschler is leading a statewide initiative campaign against local minimum wage increases. His Initiative 1358  (The Fair and Uniform Minimum Wage Initiative) would make all minimum wages across the state uniform and prevent local municipalities from becoming exceptions to the rule by passing much higher wages. Forschler said his initiative could make it onto the November, 2014 ballot if his organizers can gather the needed 246,372 signatures by July 3.

In a separate action, anti-tax activist Tim Eyman is gathering support for Initiative 655 (The Fair and Uniform Minimum Wage Initiative) to the Legislature aimed at making minimum wages uniform across the state. This, too, would prevent individual municipalities from further tweaking with exceptions to a uniform minimum wage across the state. He needs to gather 246,372 signatures but has until Jan. 2, 2015 to submit them.

If the Legislature fails to address Eyman's initiative after convening again in January, I-655 could go on the ballot as well on Nov. 15, 2015. The Legislature also could offer an alternative that also could appear on the November, 2015 ballot.

Exploring expanded E-Waste collections

By Mark Johnson, VP Government Affairs

I just got off the phone with the head of the Washington State E-Waste program.  The program is exploring the idea of expanding the list of products eligible for recycling.

Currently the E-Waste program includes computers, monitors, and TVs.  The program is checking with stakeholders, such as retailers, to see if they would support adding printers, keyboards, mice, video game consoles, VCRs, DVD players, and external computer hard drives.

I asked if the plan was for these products to follow the current E-Waste collection program where producers are responsible for the costs of recycling. That is the plan, he said.  The successful Washington State E-Waste program has collected millions of pounds of old electronics without having retailers collect a point of sale fee. WRA supported the original legislation.

The program is in the initial stages of gaining approval to run Department of Ecology agency request legislation.  Ecology also would have to gain the Governor's Office of Financial Management approval.

If you have comments on whether the list should be expanded to include the above mentioned items, I would be very interested in hearing from you by July 3, 2014.  I promised the program director I would get back to him by July 7. 

Please e-mail or call me:  mark.johnson@retailassociation.org or 360-943-9198 office or 360-704-0048 cell.  Thanks in advance for your participation.

Inslee directs a review of agency cost savings

Directive seeks 15 percent cuts in spending

State agencies are working to identify up to 15 percent in future spending cuts under a directive from Gov. Inslee.

The Northwest News Network carried a blog report on Tuesday about the development.

The report notes the budget pressures the state is feeling heading toward the 2015 session beginning in January. These include a Supreme Court requirement to spend more on schools, demand for state employee pay increases and related pension and health care requirements.

Inslee is not quoted in the report.

But his budget director, Dave Schumacher, said the directive does not mean all agencies would cut spending 15 percent. Instead, he said, the review will present Inslee with options for where to set priorities in future spending cuts.

The union representing prison workers quickly objected to the news. Teamsters Local 117 warned that Corrections would be forced to close a prison and release inmates early if its budget were reduced by 15 percent.

Source: Northwest News Network

Court steps up pressure on legislature to boost education spending

The stage is getting set this spring for a major state budget debate when the Legislature reconvenes for the 2015 session in January.

That's because in an opinion released last week, the state Supreme Court ordered the Legislature to explain why it should not be held in contempt of court for not making enough progress to fully fund state schools, as ordered by the court in the 2011 McCleary decision.  The decision gave the legislature until 2018 to fully fund state education, but the court believes lawmakers have not done enough.

In the opinion, the court warned it could seek remedies including fines or writing the state budget in place of the Legislature. During the 2014 session, lawmakers added $1 billion in new education funding, but estimates are it will need from $2.5 billion to $6 billion more to meet Supreme Court mandates.

The opinion also noted the court believes it could prohibit spending on other matters until education is funded and order the sale of certain state property. Oral arguments in this case are scheduled to be heard on Sept. 3.

Source: Research Council 

Retailers appeal to overthrow a court settlement regarding credit fees

Two national retail trade organizations this week filed an appeal of a federal court settlement regarding fees that credit card companies charge retailers for the right to offer customers credit.

The settlement would offer retailers pennies on the dollar of relief for fees that have tripled in the past decade, the appeal by the National Retail Federation and the Retail Industry Leaders' Association states.

NRF and RILA maintain that Visa and MasterCard are involved in non-competitive price fixing that winds up on consumers' receipts.

"Rather than lower the fees, the card companies proposed in the settlement that they be passed along to consumers as a surcharge," according to an NRF announcement. "Major retailers rejected the surcharge proposal, saying it was the opposite of what they had sought."

The 2012 settlement stemmed from a 2005 lawsuit in an attempt to reign in the spiking of fees set by credit companies on cards issued by banks. Click here to read more about this issue.

Source: NRF 

RASI SAFETYTV update

By Rick Means, Safety and Claims Administrator

July begins a new retro year and with that we have also added more content to RASI SAFETYTV ,which  is available to assist members with safety meetings. 

The latest updates are:

* Substance Abuse - how your personal activities affect your work performance and the safety of others.

* Automotive section - added battery safety, air tool basics, lug nut torqueing.

* Utility knife and box cutter use - more claims are being recorded involving improper knife use.  This video offers a great refresher for a safety meeting.

* Creating a 'Safety Culture' in your workplace - how to get everyone thinking of safety on a regular basis.

* Electrical safety - basic electrical safety and generator use.

SAFETYTV offers 23 categories with more than 80 videos to highlight safety in the workplace. To view all playlist categories click here.

Let me know if there is topic you're looking for. Contact me at 360-943-9198, Ext. 18 of rick.means@retailassociationservices.com. 

Retail among job gain leaders

Employment Security today reported that the state unemployment remains unchanged at 6.1 percent in May compared to April of this year.

The improved jobless rate compared to the same time last year showed the improvement in the economy the past year. The current 6.1 percent jobless rate compares to 7 percent in May of last year.

The state gained about 4,000 nonfarm jobs from April to May. More than half the gain, 2,100, was in the retail trade category, Employment Security reported. Only leisure and hospitality, with a gain of 3,300 jobs, outgained retail in job gains over the one-month period.

Net losses in some job categories reduced the total number of job gains over the period to about 4,000. The categories of government and professional and business services each lost 1,200 jobs during the one month review period, Employment Security reported.

Looking over a period of one year's worth of job gain, retail trade led the way in all job categories with 12,200 jobs out of the nonfarm total of 73,900 gains from May, 2013 to this May. No job categories lost jobs spanning a one-year review period.

Visit Employment Security to examine the entire jobless report.

Source: Employment Security

State slightly increases revenue expectations

In a report on Tuesday, the state slightly revised its revenue forecast up by $157 million (0.5%) in the current two-year budget and by $238 million (0.7%) for the 2015-17 biennium.

General fund state revenues are projected to increase overall by 8.2 percent between 2011-15 and by 8.3 percent between 2013-17.

The Economic Revenue Forecast Council reported:

*Since February, the economy added 21,800 jobs through June, up 2,500 from what was expected.

*Boeing's backlog of airplane orders will compensate for a decline in statewide aerospace employment.

*Exports were up 10 percent in the first quarter of this year compared to the same time last year. The increase was led by Boeing airplane exports, which increased 13.3 percent.

*Employment is expected to grow 2.3 percent this year, up slightly from the 2 percent forecast in February.

Here is the latest state revenue report.

Source: ERFC

Safety tip: (one in a series)

Make sure rules are updated for handling potential hazards

An important subset of any company's accident prevention plan is an accessible plan for how to handle hazardous chemicals.

Such rules would apply if:

*Employees face potential exposure to hazardous chemicals in the workplace.

*A company distributes hazardous chemicals to employees.

*A company makes hazardous chemicals.

A Hazard Communications (HazCom) plan is supposed to be a company-specific policy and process of how employees will handle the chemicals they work with on a daily basis. Because there have been recent changes to Safety Data Sheets, it's a good time to review current HazCom plans to reflect those changes as well as reviewing to see if all the parts are still relevant to a company's operations. 

The new Safety Data Sheets contain a lot of information for a specific chemical.  Labor & Industries states that it allows keeping electronic versions of the safety data sheets instead of binders, but they must be easily accessible to all employees in any format.  Check with your suppliers to make sure you have the latest disc(s) on hand, which could act as a backup if internet access gets interrupted.

A general HazCom template can be found here and can be modified to fit a company's needs.

WRA employs Rick Means as a Safety and Claims Administrator. He's available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-200-6454, or rick.means@retailassociationservices.com.

Recent broader state environment reviews spell trouble, Research Council warns

A new Washington Research Council policy brief warns that the state's economy is threatened by a recent decision to broaden state environmental impact reviews.

The brief reports that the Department of Ecology has expanded the scope of environmental reviews beyond the standard state borders to an unprecedented extent to consider more speculative global impacts from greenhouse gas emissions and transportation impacts.

This step makes business investments more uncertain in Washington State and threatens the state's economic competitiveness, the eight-page brief warns.

The report specifically cites broader-than-normal environment reviews on proposed coal export facilities in Whatcom and Cowlitz counties and a proposed crude oil loading facility at the Port of Vancouver.

"Washington State is the most trade dependent state in the nation," the brief notes. "The expanded (environmental) parameters increase uncertainty for business and call into question the competitiveness of Washington for future projects."

Click here to review the entire brief.

Source: Research Council 

Talk of repealing Obamacare employer mandate surfaces

As part of its commitment to regularly update retailers on Obamacare, the National Retail Federation reports renewed conversations about repealing the law's mandate that employers provide healthcare.

Specifically, Washington, D.C.'s Urban Institute has recently called for overthrowing of the employer mandate as unworkable.

In a commentary about Obamacare, Neil Trautwein, NRF's Vice President and Employee Benefits Counsel, reports than an estimated 4 million people nationwide will face payment of fines for having elected not to secure health care, as required under the five-year-old law. In short, he writes, Congress and President Obama acted hastily in passing the law, well before its effects on business and the health care industry were understood. Now, he writes, trade organizations such as NRF are spending their time attempting to clean up its shortcomings.

In his writings, Trautwein concludes that this being an election year, meaningful reform to the Obamacare law is unlikely. Longer term, however, second thoughts about certain provisions such as the employer mandate leave open the possibility of reforms after this year's elections.

Source NRF

Regulation, environmental reviews drag down Washington in national survey ratings

Washington's burdensome regulations, particularly with regard to the environment, helped to drag down the state's ranking in a recent annual national survey of small business friendliness.

The Washington Research Council this week quoted from a survey posted on thumbtack.com with support from the Kauffman Foundation.

Overall, Washington was ranked 25^th of 38 states rated in the online survey.

Key findings:

*Business rated Washington a D+ for its regulations, one of the nation's worst grade but complimented the state for the ease of starting a business.

*Small businesses rated the state's labor and environmental laws with a grade of D.

*The highest rating for statewide regulations was licensing, which earned a C grade.

Among its duties, WRA annually sorts through existing and proposed state business regulations and advocates on behalf of removing or avoiding regulations that restrain growth and threaten the livelihoods of businesses.

Click here to read more about the survey and to download the entire 34-page report.  It notes that 99 percent of U.S. employers meet the Small Business Administration's definition of small businesses. Those businesses account for nearly half of all private sector employees, according to the survey.

Source: Research Council

Thurston bag ban almost in effect

In just under three weeks, retailers in Lacey, Olympia, Tumwater and unincorporated Thurston County will be prohibited from using most plastic shopping bags available on the market today.

The ban to go into effect on July is aimed at plastic carryout bags 2.25 millimeters or thinner that normally are distributed to shoppers. Thicker plastic bags are considered reusable and will have no restrictions.

There are numerous exceptions to the law. Plastic used to bag bulk items, produce and meat is exempt. Also exempt are plastic bags used for dry cleaning and garbage and for wrapping newspapers. Finally, bags used to wrap prepared take-out food are allowed for public health reasons.

All vendors are required to charge a minimum of five cents for paper carryout bags that are one-eighth barrel or larger, which is the size of a typical grocery bag. Retailers can keep the entire fee to help defray the cost of the more expensive paper bags.

WRA favors greater use of recycling and the use of cloth reusable bags as an alternative to plastic bag bans. The current patchwork of bans in various communities throughout the state reduces choices for consumers and presents a confusing and expensive network of exceptions for retailers with multiple store locations.

Go to www.ThurstonSolidWaste.org/plastics to read the ordinance, tips to encourage customers to bring a bag to the store and guidelines for safe use of reusable bags. The site also allows retailers to download signs to remind their customers about the ban.

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. Visitwww.PartnerShip.com/99WRA to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902 or e-mailsales@PartnerShip.com. You also may click here to receive a free rate analysis to help with your shipping decision.

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.

L&I to conduct hearings on penalty revisions

Labor & Industries has scheduled three June public hearings to discuss changes in how it calculates penalties for safety violations.

The hearings are being held to ensure that Washington State penalty calculations mirror recent changes in the way federal officials at the Occupational Safety & Health Administration calculate penalties.

Company safety representatives are encouraged to attend one of the following hearings:

* June 19, Enduris Traiing Facility in Spokane, 9:00 a.m. to noon.

* June 24 at L&I's HQ in Tumwater, 9:00 a.m. to noon. 

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.