80,000 Iowans were out of work at the beginning of 2009. Currently, we’re approaching 115,000 Iowans out of work. In 2009, runaway state government passed budget-busting ideas and bonded its way into debt all in the name of “job creation”, only to end up with even more Iowans out of work.

Throwing taxpayer money at the problem didn’t work.

This year, Republicans have proposed a four-point plan for job growth.

• Create a favorable climate for job growth
• End the assault on employers
• Stop property tax increases headed for families and businesses
• Ensure tax credit reviews don’t result in tax increases

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With departments recommending over 700 layoffs of state employees, now is the time for the Governor to call the unions back to the bargaining table and renegotiate union contracts.

In 2009, House Republicans offered the “Principal Plan” for state employees. The plan was modeled after the salary reductions implemented by the Principal Financial Group.

Continue reading to see how the Principal Plan would save the state money…

With the Governor enacting an across the board cut without lowering the spending authority for K-12 schools, property taxes are sure to go up dramatically this year. This is yet another reason why the Legislature should not revisit House File 2645, the open scope collective bargaining bill.

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In July, the Work Loss Data Institute (WLDI) released its much-anticipated 2009 State Report Card for Workers’ Comp, using the most current data available at the time. The report card helps employers, insurers, state governments and consultants answer the questions “Who is doing well and why?”

The good news is that Iowa was ranked #1 in the nation, getting an A-plus grade for its workers’ compensation system. This is more proof that we should not make radical changes to the state’s current workers comp laws, including the controversial employee doctor shopping (choice of doctor) bill.

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In 1947, the Taft-Hartley amendments to the 1935 National Labor Relations Act affirmed states’ right to pass Right-to-Work laws. Right-to-Work laws guarantee that no person can be compelled, as a condition of employment, to join or not to join, nor to pay dues to a labor union.

The Right to Work principle affirms the right of every American to work for a living without being forced to belong to a union. Compulsory unionism in any form–”union,” “closed,” or “agency” shop–is a contradiction of the Right to Work principle and the fundamental human right the principle represents.

As of January 1, 2006, 22 states have adopted Right-to-Work laws. (In 1995, Indiana adopted a Right-to-Work law only applicable to teachers).

Read on to find out which states have Right-to-Work in their constitution…

On July 1, a few new labor laws will go on the books for the State of Iowa. They include new child labor and wage payment laws, amusement park ride insurance, workers compensation penalty benefits and an increase in contractor registration fees. Here is a brief rundown of each one:

HOUSE FILE 618 – CHILD LABOR / WAGE PAYMENT VIOLATIONS

HF 618 increases the fine for wage payment violations from $100 to $500. The bill states the evidence obtained by the Federal Government can be used as evidence that a business has violated the child labor law. (This was because current law did not allow evidence obtained by ICE to be used against them.)

The bill changes the legal standard for child labor violations from “willfully” to “negligently” allowing child labor. This is a compromise between the Attorney General and the business community because the AG wanted “strict liability” which is a must tougher legal standard. The grocers have some concern about this impacting them as they hire many younger employees.

Also, the bill increases the penalty for a parent or guardian who allows child labor or any person who furnishes child labor from a simple misdemeanor to a serious misdemeanor and instructs the Labor Commissioner to establish a civil penalty (of no more than $10,000) for child labor violations.

The House approved HF 618 on March 12 on a 97-0 vote and the Senate approved the bill on March 19 on a 48-0 vote. The Governor signed the bill on April 8.

SENATE FILE 318 – AMUSEMENT PARK INSURANCE / CONYENCE

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On June 4, Fiscal Services released updated information on state employee salaries in Iowa as well as the rest of the United States. State employees continue to do better than private sector workers. The information does provide evidence that open scope collective bargaining changes would be expensive for taxpayers.

Based upon data from the U.S. Census Bureau, State Government Employment Payroll for March 2007, the State of Iowa ranks 9th in total average payroll. Based upon this data, Iowa Government has an average monthly payroll per FTE of $4,479 ($53,748 annually) for 53,427 FTE positions.

The national average per month is $4,131 ($49,572). Going back to 1997 (the tail end of the Branstad Administration), Iowa was 14th and less than $100 per month more than the national average. Now Iowa ranks 9th and is almost $350 per month above the national average. The increase is in large part due to the Vilsack Administration being more favorable to the state employee unions than Branstad.

Here are the rankings through 2007:

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McCarthy Promises Another Attempt at Prevailing Wage, Kibbie says Union Bills Not a Priority

On Tuesday, May 12, the leaders of the House and Senate took part in a forum sponsored by Iowa Politics. Attending the forum were House Minority Leader Paulsen, House Majority Leader McCarthy, Senate Minority Leader McKinley and Senate President Kibbie.

A question was asked about four of the main labor union priorities. Those priorities were prevailing wage, otherwise known as price fixing for public projects, open scope collective bargaining (Chapter 20) and teacher termination, fair share fees (dismantling Right to Work), and employee choice of doctor (employee doctor shopping). All four failed to get 51 votes in the House during the 2009 session.

When asked if any of these bills could be on the agenda in 2010, Senator Kibbie said “I don’t know that they’ll be a priority.” (Des Moines Register, May 12, 2009)

However, McCarthy said the prevailing wage bill “probably will be on the radar screen again” during the 2010 session. McCarthy said he doesn’t consider it “union” legislation because it would stem some problems with artificially low wages and illegal immigration on projects to rebuild Iowa after the floods. (Des Moines Register, May 12, 2009)

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As the House adjourned for the 1st session of the 83rd General Assembly, the House Republican Research Staff put together an end of session wrap-up of notable bills in all committees.

2009 End of Session Wrap-up

From this week’s House Republican Newsletter:

Status of the Labor Bills, Most Bills Dead for Now

As the session moves towards adjournment, here is the status of the major Labor Committee bills:

HOUSE FILE 11 – TIE MINIMUM WAGE TO SOCIAL SECURITY COLA — HF 11 ties the state’s minimum wage to the cost of living adjustment (COLA) for social security benefits. Currently the minimum wage is set by the Iowa Code. STATUS: DIED IN THE HOUSE

HOUSE FILE 333 – PREVAILING WAGE – PRICE FIXING — HF 333 requires that state and local governments pay a prevailing wage for public projects. The bill, otherwise known as the price fixing for public projects act, failed to pass the House. STATUS: DIED IN THE HOUSE

HOUSE FILE 530 – CHOICE OF DOCTOR – DOCTOR SHOPPING — HF 530 provides that an employee may select their own doctor by having that doctor on file with the employer. The doctor need not be a specialist or occupational physician, and any referral to such a specialist must be paid for by the employer. Currently employers can send injured workers directly to the appropriate specialist thus avoiding the cost of the referring doctor. STATUS: DIED IN THE HOUSE

HOUSE FILE 555 – FAIR SHARE FEES / DISMANTLING RIGHT TO WORK — HF 555 repeals the Right to Work provisions afforded to Iowa’s private and public employees and a force fair share (union) fee upon non-union employees. The “fair share fee” would be the amount charged to an employee (covered by a bargaining unit) who is not a member of a union to cover the costs incurred (by the union). These costs include union organizing activities. STATUS: DIED IN THE HOUSE

Continue reading Labor Bill Status…