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

CEO Jan Teague meets with Congresswoman McMorris-Rodgers and Arnold Grothues of JC Penney's today in Washington, D.C. The Congresswoman received an award for support of sales tax reform.

WRA meets Congressional delegation in Washington, D.C.

WRA President/CEO Jan Teague was meeting with several members of the state Congressional delegation in Washington, D.C. this week to urge support for national sales tax reform.

The Marketplace and Internet Tax Fairness Act currently before Congress would require online sellers to charge sales taxes and in the process, level the competitive playing field with traditional brick-and-mortar stores. It also would generate new revenues for state and local governments that are currently due to those governments.

A new Department of Revenue report forecasts that passage of the act would generate $478 million in revenues to the state in the 2015-17 biennium and $520 million in 2017-19.

Teague discussed a variety of issues with Sen. Maria Cantwell and Representatives Cathy McMorris-Rodgers, Dave Reichert and Suzan Delbene. Other topics included securing protection from patent trollers and urging technological progress to protect consumers from identity theft.

Board of Directors hears about union political influence

By Jan Teague, President/CEO

The WRA Board of Directors recently had a lively discussion with CEO Tom McCabe of the Freedom Foundation on union influence in Washington State politics.  He had a brochure showing that unions provided over 25 percent of the contributions to Jay Inslee's campaign when he ran for governor against Rob McKenna. 

McCabe voiced concerns over Governor Inslee being allowed to negotiate union contracts for state employees given the large amount of money they donated to his election.  The negotiations are done behind closed doors, which McCabe believes should be an open process. 

The Freedom Foundation is leading an education campaign talking about public union transparency and reform.  The education plan allows the Freedom Foundation, a non-profit organization, to take donations without the threat of political retribution.  McCabe encouraged Board members to contribute. 

There was a lot of interest in the idea that public sector unions needed to be accountable to the public through transparency and that collective bargaining needed to be reformed.  Reforms would prohibit unions from using dues for political purposes without the consent of the dues payers.  McCabe believes unions should have to disclose their political expenditures to their members.

What if the union is not doing what the members want?  The answer is people might decide they don't want to contribute to the union's political activity.   McCabe believes people should be able to decide on union membership and that unions should compete with each other for members.  This would create an incentive to serve the interests of the members.

The Freedom Foundation has analyzed eight competitive State Senate races and 23 state House races from 2012, finding that Senate Democrats relied on unions for nearly 35 percent of their support, on average.  In the House, Democrats received 34 percent of their funding from unions, on average.  While the PDC reports show contributions, they don't report the total unions spend on political activity. 

According to the Department of Labor where financials are required to be filed, the SEIU Local 1199NW, for instance, spent 71 percent more on political activities than the total reported to the PDC for 2011-12.

McCabe also explained that there is a concerted union effort to get local officials elected. He cited the 2011 City of SeaTac races where candidate Gregerson received $19,115 from unions compared to $16,100 in non-union contributions; candidate Bush received $22,851 from unions compared to $17,524 from non-union contributions; and candidate Ladenburg received $35,334 from unions compared to $13,902 from non-unions sources. 

Anyone interested in contributing or hearing more about the Freedom Foundation and its work can contact Tom McCabe at TMcCabe@myFreedomFoundation.org

Why is voting in the Aug. 5 primary important?

By Mark Johnson, VP Government Affairs

The primary election is right around the corner, Tuesday, August 5. 

Unfortunately many registered voters don't bother to participate.  The primary election serves many direct and indirect functions.  First and foremost the most direct result is narrowing a slate of candidates down to the "top two" for the general election. 

Our state several years ago adopted a "top two" system where regardless of party the top two vote getters advance to the general election.  What that means is you could have two Republicans or two Democrats advance to the final.

If there are only two candidates in the primary the election serves as a pre-general election "poll" of sorts.  If an incumbent garners less than 50 percent against a challenger it is a very bad sign for the incumbent; they are seen as vulnerable.  If a challenger receives a low number in the primary, say 30-40 percent, it bodes very poorly for them.  They are usually not viewed as very credible and their support dries up.  So it is important for both incumbents and serious challengers to show well in the primary.  Their future general election support, namely donations, depend on it.

So do yourself and the process a favor and sit down and fill out that primary ballot and be sure to mail it by August 5.  More than you think is riding on your vote.

WRA meets with L&I regarding insurance rate fairness

By Tammie Hetrick, VP Retail Services

I met again this week with Labor & Industries officials regarding how they charge workers' compensation insurance premiums for differing business under single ownership.

I expect them to report back to me on progress toward adopting a new rule that would end the practice of charging the safer company insurance rates that are too high considering its safe work record. Out next meeting of the Retro Advisory Committee is the middle of August, where I hope to receive an update on the issue.

Of concern is the common ownership of businesses that are in different industries but, because of common ownership,  the lower risk company is sharing the same experience rating as the higher risk company even though the risks and exposure are very different.  This has recently impacted a member retailer with a very low experience rating, below .80, who also owns an auto repair shop with an experience rating of over 1.0. 

The higher the experience rating number, the greater the risk of injury. A higher number also equates to a higher insurance premium than a lower rating number.

Because the businesses are commonly owned, the retail store's experience is combined with the auto repair shop to determine the experience for both.  This benefits the auto repair shop but harms the retail store and the employees who will see an increase in their L&I premium contribution.  The result is that employees of the lower risk business get smaller paychecks because they're paying a higher insurance premium for the higher risk business that could be located miles away from the retail store.

I'm asking that L&I adopt a rule that would change how commonly owned companies of differing industries are experience rated to protect employers and employees from significant premium increases.

IRS releases health care reporting forms

New employer forms related to requirements of the Affordable Care Act have been released in draft form by the Internal Revenue Service.

The National Retail Federation has provided this link to the forms so that employers can become familiar with the drafts. Instructions for completing the forms are expected by the end of August of this year.

Medical information for the year 2015 will be due by February 1, 2016. No potential penalties could be collected until information is reported in 2016. NRF reports that this schedule likely pushes any potential 2015 penalties to perhaps the middle of 2016. This allows time for the IRS to identify possible penalties and for employers to reconcile and dispute potential charges.

Look for updates in this newsletter as they become available.

Source: NRF 

WRA members can get discount at employment seminar

WRA members are eligible for a 20 percent early online registration fee discount to an annual labor and employment seminar scheduled in Seattle on September 9.

Attorneys from the firm Lane Powell will address a range of topics including employment law updates, managing employees with mental disorders, use of technology and complying with drug use following voter approval for marijuana use in Washington State.

The all-day event is scheduled for Motif Seattle's Emerald Ballroom, 1415 Fifth Avenue in Seattle. Click here for further details including speakers. Contact Kelsey Lamon, 206-223-6005, lamonk@lanepowell.com with any additional questions. 

Lots of talk about Seattle, statewide taxes

Democrats mull over a state income tax

Two recent online reports tell of labor leaders rebuffing new tax initiatives in Seattle and mention an income tax as a possible new revenue source in the new Democratic Party platform.

The King County Labor Council is reported to have rejected a proposal by two Seattle city council members to implement an employee head tax and increase a parking tax to help finance city bus service and avoid service cuts to adjust to a shortfall in revenue. Click here for more information.

Regardless, the Seattle City Council has forwarded a tax increase proposal to the November ballot calling for voters to authorize a temporary 0.1 sales and use tax and new vehicle licensing fees. Click here to read a Washington Policy Center commentary critical of that decision.

The new state Democratic Party platform also includes endorsement of an income tax as a guiding principle of the party, according to the online watchdog website shiftwa.org. In 2010, 64 percent of voters statewide rejected an income tax proposal.

Source: ShiftWA.org  

WRA co presents annual small business forums

WRA again this year is co-presenting a series of upcoming small business forums around the state with the Washington Policy Center.

Times and dates still are being arranged. Forums have been scheduled Aug. 11, from 11:30 a.m. to 1:30 p.m. at the Yakima Red Lion Inn on Aug. 11 and at the same times of day on Nov. 14 at Tacoma's Pacific Grill Events Center.

Forum participants will be asked to complete a survey explaining how issues affect their business. A report reflecting the impacts will be shared with lawmakers at the upcoming 2015 state legislative session beginning next January. Topics under discussion at this year's forums will include the minimum wage, health care reform, regulation and workers' compensation.

To register as a Tacoma attendee, contact Savannah Kimball at SavannahK@tacomachamber.org. Contact Chris Cargill, 509-570-2384 or ccargill@washingtonpolicy.org to register for the Yakima event.

WRA will update information on future forums, times and dates, in this newsletter as information develops.

NRF tweaks sales expectations downward

Sluggish sales the first half of the year have prompted the National Retail Federation to lower its sales expectations for the year.

NRF now is forecasting 3.6 percent sale growth this year, down from its January projection of 4.1 percent growth. The numbers include general retail and online sales but exclude automobiles, gasoline stations and restaurants.

NRF economic Jack Kleinhenz cited severe winters in some sections of the country for slowing sales early in the years. However, he said the pace of hiring has returned to pre-recession 2005 levels, inflation remains low and consumer confidence is edging higher.

The overall outlook is positive as officials expected moderate sales growth through the balance of the year, Kleinhenz said. Click here for more details.

Source: NRF

Store security training conference set for Oct. 8

The fourth free, all-day training conference for retail loss prevention employees has been scheduled on Oct. 8 at the Landmark Catering and Convention Center, 47 St. Helens Avenue in Tacoma. The facility includes Tacoma's Temple Theater.

The event is being organized by the Washington State Organized Retail Crime Alliance, whose directors include representatives of WRA.

Training seminars will focus on investigations, e-commerce, gift card fraud, the working relationships with law enforcement agencies and prosecutors and more. Click here to register.

Events are scheduled from 8 a.m. to 4 p.m.

This newsletter will follow with details as the agenda and scheduled speakers confirm. For further details, contact Bill Grissom, 253-324-6217 or at bill.grissom@wscorca.org.

West Coast port contract talks resume on Monday

Closely-watched contract talks for West Coast dockworkers will resume on Monday. A six-year agreement expired on July 1 but shippers and dockworkers so far have pledged to keep cargo moving.

The latest round of talks ended last week Friday with both sides saying they had spent several days in productive discussions. No details have been publicly released.

Retailers are keeping a close eye on the talks particularly because any breakdown would come in the middle of ordering merchandise for back-to-school and holiday shopping seasons.

The talks affect nearly 20,000 longshore workers at 29 West Coast ports. Negotiators took a break this week to address unrelated contract talks in the Pacific Northwest.

To date, only discussions to solve allegedly fraudulent health care claims have been revealed as one of the agenda items in the meetings between the Pacific Maritime Association and the International Longshore Warehouse Union.

State reimbursement program can help employers avoid layoffs

A state Employment Security program offers employers are useful hedge against making layoffs.

The Shared Work program allows employers to keep employees even after reducing hours by allowing the employee to collect partial unemployment benefits to make up for reduced hours.

The federal government currently is covering 92.8 percent of benefits paid out when employers use the Shared Work program. A high percentage of employers who have participated in the program said they would return to using it if business conditions made it necessary.

Here is a short video of the program for more information. Also, click here for details on requirements to qualify.

NRF forms small business policy council

The National Retail Federation has formed a policy council to advocate on behalf of small businesses.

The Small Business Retail Council will be composed of two co-chairs and a five to seven-member steering committee to identify priorities, propose strategies and solutions and coordinate grassroots advocacy.

Two members of NRF's board of directors who represent small businesses also will serve. NRF made the announcement at its annual Retail Advocates Summit this week in Washington, D.C.

Click here for more information.

Source: NRF 

Businesses near fires can request tax payment delays

Businesses affected by the state's wildfires can apply to delay their tax filings.

Businesses in counties affected by the wildfire state of emergency can ask for permission to miss tax payment deadlines. Revenue's customer service staff can be reached at 800.647.7706 during regular work week hours. Businesses can also request relief through their online My Account feature in Revenue's E-file service.

Businesses and residents outside the fire area who want to help can find a full list of ways to lend a hand through a list compiled by the Wenatchee World.

Safety tip: (one in a series)

Guard against heat exposure on the job

When a person works in a hot environment, the body must get rid of excess heat to maintain a stable internal temperature. It does this mainly through circulating blood to the skin and sweating.

When the air temperature is close to or warmer than normal body temperature, cooling of the body becomes more difficult. Blood circulated to the skin cannot lose its heat. Sweating then becomes the main way the body cools off. But sweating is effective only if the humidity level is low enough to allow evaporation and if the fluids and salts that are lost are adequately replaced.

If the body cannot get rid of excess heat, it will store it. When this happens, the body's core temperature rises and the heart rate increases. As the body continues to store heat, the person begins to lose concentration and has difficulty focusing on a task, may become irritable or sick, and often loses the desire to drink.

The next stage is most often fainting and even death if the person is not cooled down. Excessive exposure to heat can cause a range of heat-related illnesses, from heat rash and heat cramps to heat exhaustion and heat stroke. Heat stroke can result in death and requires immediate medical attention.

Exposure to heat can also increase the risk of injuries because of sweaty palms, fogged-up safety glasses, dizziness, and burns from hot surfaces or steam.

Workers exposed to hot indoor environments or hot and humid conditions outdoors are at risk of heat-related illness, especially those doing heavy work tasks or using bulky or non-breathable protective clothing and equipment. Some workers might be at greater risk than others if they have not built up a tolerance to hot conditions, or if they have certain health conditions.

For additional information see a RASI Safety TV video here and background here from Labor & Industries.

WRA employs Rick Means as a Safety Specialist 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.

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.

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.