Victory in Legislature; More Work to Do

As the Legislature nears its summer recess, Labor celebrates a historic victory to reform the state’s broken enterprise zone program but we’re also disappointed the Assembly failed to approve AB 880, which would have held Walmart and other big corporations accountable on health care costs.   These two issues were some of the first key votes for new members of the legislature. These votes clearly show which of these new legislators will stand with us or against us.  Three new members of the Assembly voted AGAINST LABOR on our two key issues – Assemblymembers CHERYL BROWN, ADAM GRAY, AND RUDY SALAS failed to support either enterprise zone reform or AB 880, the Walmart loophole bill.  We’re pleased to report that three of the more competitive members stood with us on both issues – Assemblymembers KEN COOLEY, JOSE MEDINA, AND SHARON QUIRK-SILVA.  They deserve to be thanked for their commitment to working families.  

ENTERPRISE ZONE (EZ) REFORM – Every independent research study has proven that the state’s $750 million enterprise zone tax giveaway program does not produce new jobs.  Instead, it subsidizes the movement of jobs throughout California and flows to huge corporations.  The program is so broken it has cost union members good jobs by creating incentives for their employers to fire workers in order to chase tax credits in other parts of the state.

Federation public records act requests documented that strip clubs, card rooms, large retailers like Walmart and fast food chains were receiving EZ tax credits.  The continued exposure of the waste and abuse in the EZ program softened the terrain for reform.

Building on this work, Governor Brown introduced a revenue neutral, three prong plan for economic development.  (1) a more targeted, transparent and accountable hiring credit, (2) a statewide sales tax exemption on manufacturing equipment, and (3) A CA Competes fund to attract good jobs to California.  New accountability and transparency measures will allow the public to know who is getting the money and what jobs are being created.  All three newly created funds are set to sunset in 8 years. 

Working closely with the Brown Administration, we were able to garner the needed 2/3rds needed majorities in both houses.  In the Senate, three Republican Senators (Berryhill, Cannella, Knight) joined all Democrats except for Rod Wright, in passing AB 93.  In the Assembly, four Republicans voted for AB 93 (Achadjian, Gorell, Hagman, Waldron).  

AB 880 (Gomez) - MEDI-CAL PENALTY ON LARGE EMPLOYERS – WALMART LOOPHOLE.

AT & T Mobility Bargaining

Thank you to everyone who voted on the ratification of the Mobility “Orange” contract.

After tabulating the votes cast over the past two weeks, we are pleased to report that the contract has been ratified by the membership.

Thank you again for your participation.

There have been several questions on ATT retiree medical benefits. As you know, we have no standing to bargain for existing retirees and the subject is permissive under the law. As previously reported to you, ATT has indeed invoked their right to not "bargain" on this subject; they did, however, take our input on this subject and as a result several positive changes were made to the company's original plan. These changes are:  

1. Pre Medicare regional plans with the DDB cap had premiums changed from the original plan of $112/201/246 to $75/221/271

2. "Alternative Plan" (no premiums, available to both pre and post medicare) had  deductibles lowered from $1000/2000 with 10% coinsurance to $500/$1000 with 20% coinsurance.

3.RX annual deductible for the alternative and all post 65 plans lowered from $350 to $225

In addition we retained no premium dental benefits and increased the availability of Care Plus, Vision and other  voluntary plans to ALL non-grandfathered retirees.