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Casino wars heating up: Massachusetts, R.I. play their hands By Common Ground staff The casinos wars in New England are heating up as Massachusetts has begun to roll out its new gaming commission while Rhode Island lawmakers have approved key legislation that paves the way for table games at Twin River in Lincoln and Newport Grand, which will allow the facilities to become full-fledged casinos. Perhaps the biggest development in Massachusetts is the establishment of the new state gaming commission, which will oversee the licensing process for up to three casinos — one for each of three regions: Western Massachusetts, Greater Boston and the southeastern area of the state —
in addition to a slots parlor that could go anywhere. The gaming commission, which held its first public meeting in early April, expects to hire its first executive director this summer and is bringing on key personnel. The commission is working with two consultants — Spectrum, headed by former Boston Police Commissioner Kathleen O’Toole, and legal consultants Anderson & Kreiger LLP, according to Elaine Driscoll, gaming commission spokeswoman. The commission has also held a slew of public meetings and forums aimed at including citizens in the process, according to Driscoll.
“I would say that the gaming commission has completed a remarkable amount of work in a short period of time,” Driscoll said. “The commission is focused on the many tasks before it and will continue to be innovative and thoughtful throughout the licensing process.” See Casino, page 2
Rhode Island’s $100 million mistake After 38 Studios, What’s next for the EDC?
By Common Ground staff
After the 38 Studios debacle, the future of the Rhode Island Economic Development Corporation (EDC), as well as the state’s whole approach to economic development, is very much a question mark. Some are already calling for the EDC to be disbanded, but University of Rhode Island economist
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Leonard Lardaro says that won’t accomplish much. “I will say the EDC is not the problem,” Lardaro said. “They are a symptom of a much larger problem.” Or perhaps, more to the point, several problems, including the state’s complicated tax and regulatory structure for businesses; its myopic approach to hitting home runs in economic development rather than doing its due diligence over the long run; and the lack of a work force with the skills necessary to attract businesses, according to Lardaro.
Rhode Island: Good beaches, bad budgets? Lardaro said the state can’t afford to keep sinking to the bottom of national rankings on taxes and business friendliness. “We’re known as much for our unemployment rate as for our beaches,” he says. But that’s not the only problem. The state can slash
tax rates and streamline its regulatory structure all it wants, but, if it doesn’t address the skills gap in its work force and invest more in higher education, those fiscal reforms won’t amount to much: why would businesses move here for lower taxes if the state does not have the work force it needs? “That to me is clearly the most serious problem,” Lardaro said. “That one definitely spills over to lots of things.” Everything in the state, at least when it comes to economic development, is “fly blindfolded,” Lardaro See EDC, page 4 R
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Casino, from page 1
Massachusetts: Rocky rollout for casinos
Bay State: 3 casinos and $2 billion
One community so far has agreed to be a host for a casino: Taunton. Another, Palmer, voted in favor of hosting a casino, but that was a nonbinding referendum, meaning that another vote will be necessary before a casino could be located there. However, casino proposals were met with unreceptive voters in Foxboro, Freetown and Lakeville. Other bumps in the road have included the appointment of an interim executive director that backfired when past accusations of sexual misconduct were uncovered, and one gaming commissioner getting caught up in an ethics flap over whether he faced a conflict of interest in voting for any casino proposals that could benefit his home community of Springfield. (Driscoll said the commission will continue to maintain its “open lines of communication” with the ethics commission, which has ruled there is no conflict of interest.) “I know some people think it’s been a little rocky,” said Clyde Barrow, the director of the Center for Policy Analysis at the University of Massachusetts Dartmouth. “My characterization is that it has been a little noisy.” The process has also been criticized as being too slow, but Barrow said the Massachusetts Gaming Commission could actually go out to bid for casinos next spring, with the first casino potentially ready to open its doors in late fall 2013 — that would be two years after the enabling legislation was passed and is in keeping with the time frame in other states. “So Massachusetts is pretty much on track,” Barrow said. One thing the commission has done to speed up the process, Barrow and Driscoll said, is to set up a prequalification process for companies interested in building casinos. The pre-qualifications, Driscoll said, will expedite the licensing of casinos without compromising the thorough process that state lawmakers have established. It also will weed out the number of proposals, making it easier for officials and residents of potential host communities to decide whether they want to participate, Driscoll said. The commission will be reviewing prequalification applications by the fall. And the commission in the next few weeks will be releasing its own time frame. Until then, Driscoll said she was not in a position to agree with Barrow’s projections on when a casino might open.
Driscoll said the commissioners do believe that the market will support three casinos. Barrow said gross gaming revenues could hit $2 billion in Massachusetts, which could translate into 10,000 permanent jobs plus another 10,000 construction jobs. Just how many of those would be local and how many would come from other states? Casino owners will be expected to draw heavily from the local work force, Barrow said. He pointed to casinos in Maine and Cleveland, which hired 95 percent and 92 percent of their work force locally. However, he expects the proportion in Massachusetts to be more in the ballpark of 80 percent to 85 percent because of its location in New England. He noted that already about 17 percent of the workers at Foxwoods and Mohegan Sun hail from Rhode Island and Massachusetts. The opening of casinos in the Bay State would allow them to work closer to home, Barrow said.
Rhode Island does damage control One of the big questions in the whole process is what will happen in Rhode Island, where the state depends on a cut of the gambling revenues for roughly $300 million worth of its budget. Casinos in Massachusetts threaten to lure aware patrons, and with them, revenues that the Ocean State can’t afford to lose. But lawmakers have taken steps to stop the bleeding. During the legislative session that wrapped up last month, the General Assembly voted in favor of putting a referendum before voters to authorize table games at Newport Grand, and Gov. Lincoln Chafee has signed the measure into law. Voters were already facing the same question for Twin River. Will it work? “I don’t think that it stems the recapture of the Massachusetts patrons, but it might recapture some Rhode Islanders who are still going to Connecticut,” Barrow said. But table games may not be enough. Research shows that a number of patrons at places such as Foxwoods and Mohegan Sun go as much for the gambling options as they do for all the other amenities — concerts, hotels, dining and shopping, according to Barrow. And that number is on the rise, going from single digits about eight years ago to a current 20 percent. “These people will still go to Connecticut or they will go to Massachusetts,” Barrow said. The table-game referenda must not only pass
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statewide, but the measures must gain majority support in the two host communities of Lincoln and Newport, according to Barrow. “If Rhode Island does nothing, they’re going to lose pretty close to $250 million in gaming revenue,” Barrow warns. Massachusetts officials don’t seem too worried about what impact the expansion of gambling in Rhode Island would have on their plans. “I can’t speak to that at this point,” Driscoll said. “I don’t believe it would. We’re focused on Massachusetts.”
Table games: How much goes to the state? In Rhode Island, state lawmakers have also resolved a key question for the public; just how much of a cut of the revenues from the table games would be going to the state coffers? According to a Statehouse news release summarizing the legislation, the state cut of the revenues from the table games at both Twin River and Newport Grand would be 18 percent. But the legislation goes on to tweak that, depending on circumstances. Specifically it stipulates the following: • Declining revenues in Lincoln: At Twin River, the state share would go down to 16 percent if the casino suffers a decline in revenue. In addition, the town of Lincoln would get 1 percent of the table game revenue for four years to “help the host community transition during a period of revenue decline.” • State share in Newport: At Newport on the other hand, where there would be fewer table games, the state share would stay at 18 percent even if revenue declines. • Increased local revenue in Newport: Under the legislation, Newport would see a 1.5 percent increase to its video lottery terminals (VLT), which would come out of the state share of VLT revenue, according to the Statehouse description of the legislation • Drops in video lottery revenues: If VLT revenues drop, Newport also will get 1 percent of the revenues from table games for four years to help it transition. • Increase in local share of video revenues: The legislation also increases the amount of video See Casino, page 3
Common Ground
R.I. pressing ahead with health care reform By Elizabeth Roberts Since it became law 18 months ago, President Obama’s Affordable Care Act (ACA) has helped 6.6 million young adults stay on or be added to their parents’ medical insurance plans, according to a survey by the nonprofit Commonwealth Fund. The ACA requires insurers to allow parents to carry children as old as 26 on health insurance plans. A Gallup survey shows the uninsured rate for people age 18 to 25 continues to decline, dropping from 28 percent when the law took effect to 23 percent. Those statistics indicate that federal health reform is a contributing factor to creating a “culture of coverage,” in which people with health insurance coverage is the norm and not the exception. The Supreme Court recently upheld the entire ACA, including a critical provision known as the “individual mandate.” The mandate requires most Americans to purchase medical insurance or pay a penalty. In order to make the mandate affordable, the ACA also provides subsidies to help uninsured middle-class households pay premiums and an expansion of Medicaid to cover more people in low-income groups. If the court had struck down the entire federal health care reform law or ruled the individual mandate was unconstitutional, a number of very positive changes would have been reversed. People under the age of 26 would have not necessarily been able to stay on their parents’ health insurance. In addition, better Medicare prescription benefits offered under the law, which are saving seniors an annual average of $600, would have been suspended. Preventive care available to retirees and working families with no co-payments would also have been discontinued. Incidentally, those benefits have proven to be very popular provisions of the law, despite lower approval ratings of the ACA as a whole. It’s likely Republicans in Congress will continue to
work to repeal the law, and GOP presidential candidate Mitt Romney has promised to wipe the ACA off the books if elected in November. It remains to be seen how Romney the candidate will differ from Romney the president since he defends his Massachusetts law, a prototype for the Affordable Care Act he signed in 2006 when he was governor. In contrast, Gov. Chafee and I have consistently believed the increasingly unaffordable cost of health coverage for Rhode Island families and businesses must be addressed with or without federal support. We will continue to move forward with key provisions of the law, including the Rhode Island Health Benefits Exchange, designed to link consumers and employees with affordable health insurance coverage. The exchange will function as an easy-to-use online marketplace for individuals, families and small businesses to compare and purchase health insurance. Rhode Island is leading the nation in implementation of health reform. It was the first state to receive a multiyear Level II funding grant from the federal government to establish a health benefits exchange. In total, Rhode Island has been awarded about $65 million from ACA funds for the exchange, and much of the funding is being used to create the database and Web portal for the health exchange. Because many Rhode Islanders are not familiar with the concept of a state-based health benefits exchange and need help in understanding the terms of their insurance, the state’s next task will be to reach out to residents. Under the ACA, the state’s health benefits exchange is required to hold open enrollment starting on Oct. 1, 2013, in time to begin insuring Rhode Islanders by the federally imposed deadline of Jan. 1, 2014. Elizabeth Roberts is the lieutenant governor of Rhode Island.
Casino, from page 2 • terminal revenue that goes to each community to 1.45 percent. Under the current system, Lincoln already gets that amount, but it “sunsets” every year. (The General Assembly has to pass annual legislation renewing it.) Newport, on the other hand, sees just 1.01 percent of video gambling revenues go to its coffers. As for the state, it receives slightly more than 60 percent of the video gambling revenues at Twin River and Newport Grand. Overall, tables games at Newport Grand are expected to yield $5 million in gross annual revenues. At Twin River it
would be much more — $60 million annually — when fully operational. State Sen. Maryellen Goodwin, D-Providence, a key supporter of both casino bills, said the legislation provides “voters with the information they need as they head to the polls” to consider the referenda. “It is good for taxpayers because it enables the facilities to thrive, which will help protect the revenues and the jobs we count on from the competition across our borders,” Goodwin said in a press statement.
JULY 2012
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The Union Stewards Prayer Grant me, Oh Lord, the genius to explain to my brothers and sisters the policies and plans of our great union even though no one explains them to me. Give me the understanding that I may forgive the apathetic member, curb the overly ambitious member, and accept the views of the member who does nothing until I have done something... and then tells me what I should have done and how I should have done it. Oh Lord, make me formidable in debate, logical in argument and fearless in confrontation. Let me be a lawyer, actor, mathematician, sage, philosopher, sociologist, and economist; pleasing, cajoling, threatening, and belaboring so that I make the best of a good case and a good case from no case at all. Teach me, Oh Lord, to stand at all times with both feet firmly on the ground …. Even when I don’t have a leg to stand on.
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Common Ground
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EDC, from page 1 says. And, every once in a while, those blind flights blow up. Exhibit A: 38 Studios. One of the big issues is the leadership on Smith Hill. State leaders, Lardaro said, think in linear terms, not realizing that regulatory action in one area affects others. “The problem is our leaders think linearly. In their world, everything is linear,” Lardaro said. He calls the mentality that governs Smith Hill “paropic”— a combination of parochial and myopic. Too often, state leaders look at the glass as half full or half empty — in which the glass is an analogy for the state economy — when they miss the real question: “It’s not whether the glass is half full or half empty. That’s irrelevant. It’s the size of the glass,” Lardaro said. “We need to change things so the glass grows.” Lardaro says the General Assembly also needs to change its whole approach to budgeting, focusing less on consumption-oriented spending and more to investment-oriented spending, which has long-term benefits such as in higher education. The failure of the state to educate its work force has led to a phenomenon that he dubs “endogenous mediocrity.”
Solving the economic development puzzle So what is the solution? “It’s all part of a big puzzle,” Lardaro said in an interview. “We can’t tweak. We need an engine overhaul.” Specifically, he says the state needs to take a step back and rethink how it does economic development.
Lardaro recommends that the state hire an outside consultant — one without any local political ties or connections — to do a full-scale evaluation of the state’s economic strengths and weaknesses and identify opportunities for economic expansion and growth. So where does all this leave the EDC? Rather than simply disbanding it, he says the state’s interest may be better served by overhauling it completely — turning it into a research and policy arm that informs the state’s decision makers about economic development, rather than as the deal maker in economic development deals. “Hit a bunch of singles. Forget the home runs,” Lardaro says. Tom Sgouros, a progressive commentator, largely agrees. “They should do more thinking and less acting,” Sgouros said. “Why aren’t they a source of useful information about business conditions? What kind of research capacity do they have? They’re supposed to be developing the economy, but how much do they actually know about it?” Others like URI business professor Ed Mazze would go further with the EDC. “I would just do away with it,” Mazze said. “You would save several million dollars.” Like Lardaro he is calling for the state to use this crisis as an opportunity to comprehensively review its entire approach to economic development — a review, he says, that should encompass the EDC as well as the departments of business regulation and
labor and training. That review should focus on how those departments are collaborating to spur economic development — creating more jobs and making the state more business friendly, not just for new businesses, but for ones already here that are struggling to survive, Mazze said. “By doing that, we may be able to come out with a unified approach. …So that the next five years are going to be better than the last five years,” Mazze said. And, as an alternative to the EDC, he says the governor needs to hire an economic adviser.
‘We can do better’ A key question in the review is what are other states doing that is working and that Rhode Island can adopt. People often point to Texas as a success model for business growth and economic development, which immediately prompts the retort that it’s not fair to compare Texas with Rhode Island. To which Lardaro responds: “Explain Delaware.” And Rhode Island doesn’t even have to look that far for ideas: to the north, Massachusetts is widely hailed as an economic development success story. (For more on Delaware and Massachusetts are doing, see sidebar.) For all their dismal assessments of what the state has done wrong, economists and business experts maintain optimism about the state’s future. “We can and we should do better,” Lardaro said. “This is not hopeless. We did this to ourselves.”
Economic development: What are other states doing?
By Common Ground staff If 38 Studios taught Rhode Island anything, it’s that its economic development program isn’t exactly succeeding, to put it charitably. Rhode Island, however, doesn’t need to reinvent the wheel: there is no shortage of other states to which it could look as models of successful economic development. States such as Texas are sometimes invoked as success stories. But the sheer size of a state like Texas — not to mention its location in an entirely different region and differences in natural resources and other characteristics — tend to spark skepticism among Rhode Islanders as to just how useful a model it can be. But then there’s Delaware — a state small in population and area that is certainly comparable to Rhode Island. And Massachusetts, while larger, certainly offers some useful lessons as well.
In Rhode Island, much of the focus is on whether the state even needs an economic development corporation. The experience of the other states suggests that mere institutional structure does not make or break a state’s success or failure in economic development. Delaware does not seem to have a significant statewide economic development corporation. Instead, most of its statewide efforts to that end are run out of two state departments. Massachusetts, on the other hand, has it both ways. The Bay State has some departments charged with economic development, but it also has delegated some of the work to a number of robust quasi-public agencies. Neither state has a silver bullet. If there is any overarching key to their success, it’s having a coordinated and comprehensive plan for doing
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economic development, which is another way of saying there are many keys to success in each state.
Delaware: America’s corporate headquarters It seems every corporation is headquartered in some way in Delaware — including, incidentally, 38 Studios. According to state figures, more than half of all publicly traded companies in the United States — including 63 percent of Fortune 500 giants — call Delaware their legal home. That’s probably has many people outside of the state scratching their heads. But why corporations flock to Delaware is not really much of a mystery, according to state officials there The state Division of Corporations credits many factors, saying it provides a “complete package of incorporation services.” See States, page 5
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401.751.5522 States, from page 4 The factors include: the corporation law, which the state describes as the “most advanced and flexible business formation statute in the nation;� the 215-yearold Delaware Court of Chancery that has “written most� modern U.S. corporation case law; a generally business-friendly state government; and a Division of Corporations that boasts its “state-of-the-art efficiency.� Aside from the Division of Corporations, Delaware has a State Economic Development Office charged with “attracting new investors and businesses to the state,� spurring the expansion of industries already in the state, boosting tourism and “creating new and improved employment opportunities� for residents, according to information provided by Karen Smith, the director of strategic communications for the office. Her office also publishes a roughly 100-page guide to the state’s offerings for businesses known as the “Delaware Databook.� Asked why Delaware has done so well, University of Rhode Island economist Leonard Lardaro says it’s simple: The state has just “always sustained� its pro-business climate. Massachusetts: More than just Harvard In Massachusetts, there are several key agencies, quasipublics and other organizations involved in economic development efforts. Within state government, the Office of Business Development oversees the Economic Development Incentive Program, which involves tax credits for
businesses. The office also “facilitates access to resources and incentive programs that help businesses thrive,� said Jason Lefferts, spokesman for the Executive Office of Housing and Economic Development, which oversees all state activities in the area of economic development. Also key to state efforts is MassDevelopment, a quasipublic agency that focuses on providing finance and real estate development services. In addition, a nonprofit agency, the Massachusetts Alliance for Economic Development, runs a site selection service that helps businesses identify locations for setting up shop in the Bay State. Plus, a number of other quasi-public agencies back up the state’s efforts. “Two are the Massachusetts Life Sciences Center, which supports Gov. Patrick’s $1 billion 10-year commitment to the life sciences sectors and is playing a significant role this week at the BIO Conference in Boston; and the Massachusetts Technology Collaborative, which is leading our MassBroadband123 initiative that will connect the entire state to broadband technology by June 2013,� Lefferts said. ‘Choosing to compete’ That small army of economic development agencies is operating according to a coordinated plan, known as Choosing to Compete. (For more information, visit www.mass.gov/compete.) “At the heart of our long-term economic development plan is the need to have government, private business and academia all working together on the issues of economic
development and job creation,� Lefferts said. “Choosing to Compete was put together with significant input from the private sector, and we continue to meet and reach out with its creators for feedback and ideas on how to achieve the 55 goals in the document.� And it is the Executive Office of Housing and Economic Development that coordinates all the efforts. The secretary of the office is the chairman of the board of the various quasi-publics involved — something that was done as part of Gov. Deval Patrick’s reform of the quasi-public agencies. “This structure puts all of our organizations under the same umbrella and on the same page, but also allows the agencies to focus on their areas of expertise,� Lefferts said. Another key element of success is efforts to boost the state’s tourism industry, which is the third largest in the state. Those efforts are maintained through the Massachusetts Office of Travel and Tourism. Another key tourism-booster is the Mass Film Office, which works to draw television and film productions to the Bay State. “Listening to businesses is key,� Lefferts added. “In 2008 and 2009, the governor heard from small business owners about the rising costs of health insurance, and the administration has put the brakes on rapidly escalating increases in response.� He said the state is in the middle of its “largest regulatory review in state government� since the 1990s, examining over 1,000 rules. Regulations deemed to be hindering businesses are being amended or eliminated as part of that process, according to Lefferts.
Homeless Bill of Rights Signed The Homeless Bill of Rights was signed into law last month protecting the homeless from discrimination from government, police, healthcare workers, landlords or employers. Pictured here are, from left, Jim Ryczek of the Rhode Island Coalition for the Homeless, State Sen. John J. Tassoni, Jr. and John Joyce, co-founder of the Rhode Island Homeless Advocacy Project.
John J. Tassoni, Jr., President
john@jtsentinelgroup.com p. 401.451.1305 l f. 401.831.6111 111 Wayland Ave. l Providence, RI 02906
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Municipal bankruptcy: What really happens to labor contracts? By Common Ground Staff Bankruptcy may grant broad powers to city administrations, but unions are not as powerless in the process as assumed by some fiscal conservatives, who see in a bankruptcy their last, best hope for torpedoing labor contracts that they view as unduly burdensome and unsustainable.
Of course, all that comes with a caveat: There are so few cases of municipal bankruptcy that it is hard to predict exactly what could happen. “The question — What normal procedure is? — There really isn’t an answer on that,” Moringiello said.
The reality is much more complicated
Rhode Island has at least one test case: Central Falls. And, depending on who you talk to, the unions either scored key wins or took an unprecedented beating in pay and benefits. Technically, none of the three unions in the city ever saw their contracts formally rejected or terminated, according to Carly Iafrate, the attorney for Fraternal Order of Police (FOP) Lodge No. 2. On the same day that the city filed for bankruptcy, Aug. 1, 2011, it also filed motions to reject all three collective bargaining agreements but did not wait for the court to act. It immediately treated the three labor contracts on the city side as if they were inoperable even though they were not automatically voided. The city nonetheless unilaterally imposed a series of changes to the terms and conditions of the pacts covering police, fire and municipal employees, and they were done with very little input from labor, Iafrate said. All three unions filed objections to the rejection motion, but they held off on submitting the court documents that backed up their objections. Instead, both sides pressed forward with negotiations, culminating in new labor agreements that were reached and immediately took effect right before Thanksgiving, according to Iafrate. As part of their new deals, the police and municipal workers either withdrew or waived their objections to the city motion to reject their contracts, which was a moot issue at that point. It may sound like a lopsided process, but the police union did have a few bargaining chips, according to Iafrate. Beside its objection to the city motion on its contract, the union considered mounting a legal challenge to the city’s eligibility to even file for bankruptcy on the basis that it had negotiated beforehand. The union also could have contested a new state law that stipulates bondholders have to be paid back before obligations to employees and retirees have to be honored. All those were arrows the police union had in its quiver, incentives for the city to bargain with them. “It was going to make this thing drag out, and it was going to cost a lot of money,” Iafrate said.
What really happened in Central Falls? “Just because you’re in bankruptcy does not mean your contracts are null and void,” said Mike Andrews, president of International Association of Fire Fighters Local 1485 in Central Falls. “It means they have the ability to go to the court and request they be null and void.” On paper, cities indeed do have more power under federal statute than do corporations when it comes to labor agreements. Under Chapter 11 bankruptcy, businesses must present a proposal for new labor agreements during the bankruptcy process, according to bankruptcy expert James Spiotto, an attorney in Chicago. On the other hand, in Chapter 9 bankruptcy, which applies to cities, towns, and counties, municipalities have the power to ignore contracts from the get-go.
Negotiations never really stop The practical reality, experts say, is that negotiating between municipal labor unions and management continues during the bankruptcy process. Ultimately, the city needs its workers to buy into the changes. “You need workers and staff to continue,” Spiotto said. “Who’s going to collect the garbage? Who’s going to tend to the police and fire? Who is going to teach in the schools?” Cities indeed can reject municipal labor agreements, but case law says three criteria must be met before a bankruptcy judge will approve such a move, according to Juliet M. Moringiello, a professor at the Widener University School of Law in Harrisburg, Pa. A city must demonstrate that contracts impede its ability to reorganize and that it has already made a reasonable effort to make the necessary changes through negotiating. The judge also takes into account the equity position of the city. The conservative dream scenario, in which a judge throws out a labor contract and imposes a contract written from scratch has never happened. That is because municipalities are viewed as subdivisions of states, which are co-sovereign with the federal government for the purposes of constitutional law. All judges can do is act as umpires in what is surely a highrisk game for both sides, not just labor. “It’s clearly intended to be the last resort,” Spiotto said. “It’s no panacea. It is expensive, time-consuming, complicated and uncertain. For all these reasons it is not the solution.” Plus, bankruptcy also carries political risks for mayors and other public officials, according to Moringiello.
C.F. firefighters: Raises amid bankruptcy Central Falls firefighters say they notched some key victories in the whole process. For one thing, none of the union members so far have lost their jobs through the bankruptcy process. Under minimum manning changes, the department now only needs 37 firefighters with a bare minimum
of seven per shift in contrast to a former force of 41 firefighters with a minimum of nine firemen. But that reduction was achieved through attrition, not layoffs. Another key win was that benefits such as longevity and holiday pay, which go into pension calculations, stayed in the contact. So even though benefits across the board were whittled down, the fact that the benefits were left in the contract was itself a victory of sorts. “It’s much easier to build up what’s there than … try to get it back in the whole,” Andrews said. He said he had consulted with his counterparts in Vallejo, Calif., — a city that famously became the first major municipality to go belly up in the recession in May 2008 — and was advised to seek negotiation. (It was at Vallejo that a federal bankruptcy court ruled that the contracts could be voided in spite of restrictions set forth by the state.) Moreover, in Central Falls, the IAFF local did not come away empty-handed. With all that is going on, the union actually won wage increases for the next five years. Police got those raises, too. However, members of both unions saw a net reduction to their overall compensation packages. “I don’t think that it’s a victory anytime public employees have to be in the position they were in in Central Falls,” Iafrate said. Although union members should be satisfied that agreements were ultimately reached, she said it’s nothing to celebrate. “It never should have happened in the first place,” Iafrate said.
Labor contracts not first things to go There’s something else to keep in mind: The issue of what can be done to labor contracts is, in some ways, superseded by the broader question of where the cutting will begin. Paul Doughty, the head of the Providence firefighters’ union, says other assets and departments in cities will feel the ax before fire and police unions do. “My contention was that if you looked at quality of life versus public safety, that I think most people would say that you need to start cutting quality of life before cutting public safety,” Doughty said. In other words, a city in bankruptcy is more likely to close parks and shut down libraries, which are important for the quality of life, but not essential to public safety, before it turns the lights out in police or fire stations. “You can’t have the city burn down, and you can’t have crime running rampant,” Doughty said. “Do you need a library? I don’t know if you need one.” Bankruptcy is now looking less likely for Providence, but it’s a reality to keep in mind as other cities such as Woonsocket prepare to follow Central Falls into bankruptcy.
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Common Ground
JULY 2012
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Central Falls: Did fire contract go up in smoke? By Common Ground Staff
requirement, and receive a pension equal to 50 percent of their pay. After 25 years, they could get 60 percent of their salary, and following 30 years, it was 65 percent of salary. Now, employees must work 25 years and retire at age of 57 or older to receive 50 percent of their pay. In addition, the maximum allowable retirement income has dropped from 65 percent to 55 percent of what was made during employment.
Firefighters, like other labor union members, took a bit of a hit in the Central Falls’ bankruptcy. But it’s a myth that it was an unmitigated financial disaster for rank-and-file members, or that they had zero say in the new contract that they received from the city. True, the city may have had the upper hand in the process, but the firefighters’ union did not walk away emptyhanded. Perhaps no clearer indication that it is possible to win something for your members — even in the dire straits of bankruptcy — is the fact that firefighters walked away with pay raises. Here’s a breakdown of the big changes in the new contract, which took effect last November and will be in place for five years:
• Health insurance: The city also doubled deductibles from $2,000 to $4,000 for a family and $1,000 to $2,000 for individuals. Copayments went from 12 percent to 20 percent, but the city has softened the blow a bit, offsetting the deductibles with deposits of $2,000 for families and $1,000 for individuals in health savings accounts.
The bad • Minimum manning: Under the old contract, the department had to have 41 firefighters, with 10 firemen per shift and an understanding that the department could run with nine employees. Those figures have been shifted to a force of 37 firefighters, with shifts of nine firemen and an acceptable minimum of seven people. The reduction in manpower is being achieved through attrition rather than layoffs. “It’s certainly not good for us,” said Mike Andrews, president of International Association of Fire Fighters Local 1485. “For a small city, a small department, we’re very busy.” The department conducts just fewer than 5,000 runs annually, he said.
The good • Annual raises: With all that is going on, the union actually won wage increases for the next five years — between 2.3 percent and 2.9 percent annually. It’s still a net loss in their total compensation package, but the raises certainly are another way to soften the blow, especially for a department that has been at or close to the bottom of the pay scale for municipal departments around the state. The first raise is effective on July 1. • Structure of contract maintained: Another key priority that was achieved was maintaining other benefits that go into their pension calculation,
• Pensions: Beforehand it was simple. Employees could retire after 20 years of service, with no age
including longevity and holiday pay. Keeping those intact makes it easier to increase the benefits in the future. • Death benefit section updated: In addition, the union used the negotiation process to update and expand some of the language in the contract, Andrews added, pointing to outdated language about death benefits being limited only to firerelated fatalities. That doesn’t even begin to describe all the on-the-job dangers that firefighters face, everything from perilous rescues to hazmat cleanups.
The bottom line • Comparing the cuts to the gains, Central Falls firefighters took big, unprecedented hits in the bankruptcy process. However, that all has to be viewed in context, not in a vacuum. Given all that was going on, it certainly could have been worse, perhaps much worse. If you don’t think so, just ask yourself, how many employees you know who got raises after their employers went bankrupt? The lesson: Bankruptcy is something that labor certainly wants to avoid, but labor should not fear that it has absolutely no voice in the process, or that it won’t be able to negotiate anything beneficial for its members. In addition, fiscal conservatives who actually celebrate bankruptcy as a way to circumvent the hard work of negotiating reductions and cost savings should think twice as well.
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Working class hero Mazzocchi inducted into U.S. Department of Labor’s Hall of Honor By James Celenza The U.S. Department of Labor recently inducted the late Tony Mazzocchi, a longtime union health and safety pioneer, into its Labor Hall of Honor. “The labor department is pleased to recognize Tony Mazzocchi for his tireless commitment to the safety, health and welfare of America’s workers,” said David Michaels, assistant secretary of labor for the Occupational Safety and Health Administration (OSHA). “Tony’s extraordinary efforts and leadership helped pave the way for vital reforms like the OSHA Act and it’s time he takes his rightful place in the Labor Hall of Honor,” Michaels said. As a chemical worker at the Helena Rubinstein cosmetics plant on Long Island, Mazzocchi experienced firsthand unsafe and unhealthy conditions that cause needless and preventable pain and suffering. As president of the Oil, Chemical and Atomic Workers (OCAW) Local 8-149, Mazzocchi organized a series of conferences giving workers the opportunity to testify about their deplorable working conditions. He then
brought those workers to Washington, D.C., to testify about their experiences and lobby for protection. That work laid the foundation and ensured passage of the OSHA Act of 1970. In the decades following OSHA’s passage, Mazzocchi rose to leadership positions in the OCAW and spearheaded the Right to Know campaign that granted workers permission to learn what toxic substances they are exposed to on the job. That was followed by efforts to give workers the Right to Act. Mazzocchi understood that worker exposure information was essential, but without the right to act on that knowledge, conditions would not appreciably change. Mazzocchi’s ability to connect the scientific and public health communities with workers and their unions was essential in the development of today’s worker safety and health movement. Over time, Mazzocchi became increasingly focused on creating a political arm to support workers’ rights. In 1996, Mazzocchi co-founded the short-lived Labor Party. At the same time, he remained active in the OCAW,
even when it merged with the United Paperworkers’ International Union and became PACE. He fought companies’ efforts to exclude and in some cases to sterilize women workers exposed to toxins known to cause birth defects. He advocated for chemical, oil and nuclear workers working in some of our nation’s most dangerous industries. Tony was involved in the famous case that later became the basis of Silkwood, a movie starring Meryl Streep. Karen Silkwood was a nuclear worker and OCAW member who was exposing the dangerous working conditions at the nuclear power plant where she worked. She was killed mysteriously while on her way to a meeting with a reporter for the “New York Times.” The induction ceremony was held at the New York Committee for Occupational Safety and Health’s 33rd Anniversary Awards celebration in New York City. James Celenza is director of the Rhode Island Committee on Occupational Safety and Health. Contact him at jascelenza@gmail.com or (401) 751-2015.
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Common Ground
JULY 2012
Page 11
Frenzied lifestyle is putting our health in jeopardy By Joy Feldman
The fast paced rhythm of everyday life is startling. The alarm clock beeps, but you just fell asleep not more than two hours ago. Your cell phone rings, your e-mails buzz, text messages ping. You open your swollen eyes and stare disbelievingly at the two small children crouched over your bed waiting for breakfast. It’s only 7 a.m. and you are frazzled – out of sync and the day has just begun, insisting that you become alert, concentrating on the challenges of the day. You have meetings to attend, appointments to make, and deadlines to meet. Tethered to technology, you keep track of all worldwide news events, take pictures, play games, download music and update your status on your favorite social network. You have more responsibilities, more stress and more things going on than ever before; the pace at which we live is dizzyingly discombobulating. Honestly, it is insane. As a result of this hectic lifestyle, many people are sick, stressed, and exhausted, and to compensate for how they are feeling, some pop pills to keep their edge. The hyper-vigilant and manic lifestyle that many Americans are leading is exhausting and all too familiar. Constantly stimulated by stress, many people are living in a state of hyper-arousal, depleting the body’s nutritional status, wearing out the body’s adrenal glands. If you are looking for improved health, it is time to change the way you live. Put on the brakes and stop loading up your life with too much stuff. Simplifying can be accomplished, but forget the magic wand. Sorry Tinkerbell. Give yourself permission to rest and step out of the perpetual frenzied whirlwind and into the peace, where you set boundaries and begin to have control
over your life. To fully thrive and feel well, it is not only necessary to eliminate your stressors but to also pursue loving and joyful lives. Making new life choices for your vitality are important, and here are some important suggestions to consider. Sleep and rest Sleep and rest are the most significant aspects of balancing one’s lifestyle because they promote regeneration, healing and development of the mind and body. However, most people do not get enough sleep and rest. If you need coffee, soda, chocolate, anger, worry or other stimulants to get you moving in the morning or keep you perked up throughout the day, you are not sleeping enough. Try sleeping eight to 10 hours each night and even attempt to nap during the day. Catching those ZZZs are essential to your well-being. Eating habits Eat at least three regular meals every day or five smaller meals to balance blood sugar and prevent stress on the adrenal glands. Have sit down meals, and do your best to avoid snacking while working, driving or standing around. Rest at least several minutes before and after eating to optimize digestion, and drink three quarts or more of spring water daily as a means to hydrate the body. Choose a diet rich in lightly cooked vegetables, healthy proteins, healthy fats (flax oil, olive oil and butter) and gluten free grains such as quinoa and
brown rice. Mealtime should be enjoyable social times of conversation and togetherness. Do not let soccer time take precedence over family meals. Instead, try restructuring mealtime or skip the lessons at that time of day. You can make meals special by dimming the lights and lighting a candle, enabling you to set the tone for a peaceful enjoyable meal. Habits of thought Take full responsibility for your life. When you take responsibility for everything in your life, you will begin to feel empowered. It might take some time to explore your new choices, but you have the ability to make them. Think in a positive direction. Look on the bright side of things as much as possible. It does not mean to ignore the obvious or to believe things will work out when all the facts argue against it. It just means to avoid inferring and implying negative outcomes when you really don’t know the truth. Exercise Mild and gentle exercise is a wonderful way to improve your health. Depending on your health and age, 10 to 30 minutes of walking several times a week is a great way to begin your healthy lifestyle. Joy Feldman is a nutritional consultant, writer and lecturer. She is the author of “Joyful Cooking in the Pursuit of Good Health” and “Is Your Hair Made of Donuts?” Learn more at www.joyfeldman.com and www. isyourhairmadeofdonuts.com.
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I became involved in the EAP/MAP programs because of my own struggles with addiction, as I have been in recovery for many years. Twenty-five years ago, I was asked by my Union President to start a committee to assist our members and their families who needed help with addiction and mental health issues, because of my own experiences, I was excited to help. We started a silent committee to offer confidential help to Firefighters and their families who were struggling with these issues. I spent several years obtaining certifications in the field and have been helping members and their families ever since!
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Firefighters often experience things in the line of duty that cause mental and emotional stress that can lead to substance abuse. Once we built the EAP/MAP program we were amazed at how many people came forward to get the help they needed. Part of the rehabilitation process is learning how to deal with these stresses so they don’t negatively affect the rest of their lives and their families.
Where has life taken you since retirement? Well before I retired, I worked closely with Treatment Solutions Network to place my members, providing the care that they needed. I was so impressed with the company that I started working with them more and have now become a Vice President and shareholder in the company. We have expanded the network to include top rated treatment centers, not just in Florida, but across the nation as well. Our network is set up to accept most insurances, self-pay and contracted rates with health & welfare funds to make treatment affordable to everyone.
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Common Ground
JULY 2012
Page 13
Changing position of global warming skeptics is challenging By Barry Schiller When New Englanders hear “global warming,” we might think of our heating bills and say “bring it on.” And if the Earth were to warm uniformly a bit, the same everywhere, it would likely be more benign. But the planet’s uneven surface with land, sea and mountains, climate models predict climate destabilization of existing patterns. Indeed, we are already seeing not just rising temperatures but record floods, droughts, heat waves and storms with serious economic cost. Though predictions are difficult, climate change can also threaten public health, safe sea levels and food security. It might have been better if the environmental movement had called the issue “global climate destabilization” instead of global warming, but the term “global climate change” now seems to be the preferred more neutral term. Since the industrial revolution, the concentration of carbon dioxide in the atmosphere has risen from about 280 parts per million to 393 parts per million, with consequences already noted. Worldwide, despite all the talk, 2011 saw the highest greenhouse gas emissions ever. Transportation emissions are one of the major factors, discharging about one-third of the total greenhouse gases, and is also the sector, until recently at least, growing most rapidly in our region. And the need for oil to fuel transportation is promoting exploitation of the dirtiest, riskiest sources such as the tar sands, which a New York Times’ story indicated alone could add another 120 parts per million of carbon dioxide to the atmosphere, and in the Arctic, where the industry has little idea how to clean up any
major spills even if they wanted to. We know how to reduce such transportation related emissions to help head off possible disasters. For example, more efficient cars, less carbon-intensive energy sources, more freight on the rails instead of trucks, more emphasis on pedestrian friendly neighborhoods that reduce the need to drive a lot of miles, more use of public transit and carpools and perhaps, with aviation being one of the fastest growing pollution sources, more conference calls instead of business trips. It would also help to cut tax subsidies to fossil fuel industries that the Friends of the Earth estimates to be worth about $113 billion over 10 years. But it won’t be easy. There is a human tendency to resist changes, even if needed. Despite all the weather related news, media coverage of global climate change
has been reported to have dropped by a third. The fossil fuel industry’s success in funding politicians and climate change deniers has resulted in public confusion, and talking about climate change has become unfashionable. The deniers have pretty much succeeded in taking over the national Republican Party and are rejecting science to the point where they are trying in some states to pass laws to prohibit studying sea level issues (shades of King Canute) as well as disparaging conservation, renewable energy and pollution control regulations. For those of us who remember the party of John Chafee, Frank Sargent Claudine Schneider and such, this is a sad state of affairs for the Grand Old Party. But we can find common ground with many business groups such as those interested in alternative energy or in building railroad equipment or transit vehicles. The insurance industry, worried about claims, can also be a partner in addressing climate change. Even conservative governments overseas such as in Germany understand the need to act, and that country now gets about one-fifth of its electricity from solar energy. France has invested in electric trams in almost all its cities and has dropped oil consumption by about 11 percent. We can do that, too. As consumers, voters and opinion makers, we can work for solutions to climate change issues. And face it, walking more and driving less will also be good for our health and our pocketbooks. Barry Schiller is a member of the State Planning Council’s Transportation Advisory Committee and can be reached at bschiller@localnet.com.
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Common Ground
JULY 2012
DLT decreases call center hours: SEIU Local 401 criticizes cutbacks Because of recent layoffs, the Rhode Island Department of Labor and Training prepares to decrease the operating hours for its call center, according to the Providence Journal. However, the hours on Mondays and Tuesdays, the center’s busiest days, will remain the same: 8 a.m. to 3 p.m. Department of Labor and Training spokeswoman Laura Hart told the Providence Journal that early estimates
say wait times on Mondays for callers could increase by 10 to 20 minutes, bringing the current average wait time of 30 minutes to as long as 50 minutes. Tuesday wait times of 28 minutes could increase by 3 to 15 minutes, to a total of 43 minutes, Hart said. Wednesday call center hours will also remain the same, from 8 a.m. to noon, however, Thursday hours from 8 a.m. to 3 p.m. and Friday hours from
9 a.m. to 3 p.m. will be reduced. Start times remain the same, but the call center will close at noon both of those days. According to a statement released by Local 401 of SEIU and Technical Support Specialists II, the union representing workers at the Department of Labor and Training, eliminating some of the frontline workers who help the unemployed
access their benefits will worsen these workers already high workplace stress levels. Furthermore, according to the statement, SEIU Local 401 believes “Rhode Island’s unemployment picture is not improving,” and “the state should step up and maintain adequate staffing levels in the Unemployment Insurance and Workforce Development units until the situation actually improves.”
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Common Ground
JULY 2012
Page 15
Amend workers’ compensation regulations for PTSD By Steve Miranda Post-traumatic stress disorder (PTSD) is a mental illness and internal plague. Its damages don’t necessarily appear on the surface of the skin. Physical illnesses often leave marks or scars so health care legislation, which varies state-by-state, often favors the concept of that which can be seen can be proven, making it notoriously difficult for PTSDsuffering firefighters to claim workers’ compensation benefits. Firefighters who struggle with PTSD may be unable to work and function normally, yet PTSD’s physical ambiguousness — and the stigma attached to the condition — makes it harder for victims to prove they are suffering with the disorder and to receive the compensation they need to provide for themselves and their families. Many firefighters don’t admit to having PTSD because they’re too ashamed. Firefighters are generally perceived to be brave and strong, yet the daily trauma associated with the job makes them more susceptible to stress disorders than the general public.
In the past, that stigma has created a no-win situation because the firefighter with PTSD may have been too ashamed to even acknowledge the condition, and the service agency may have failed to report the firefighter with PTSD to avoid any financial responsibility or reported the disorder as another kind of injury, which did nothing for the employee or the condition and overall cause. In 2009, Wyoming firefighters and other first responders suffering from PTSD were often denied workers’ compensation. Under the Wyoming Worker Safety and Compensation Division, firefighters could only receive coverage for workplace mental injuries if they proved to be direct results of self-inflicted physical injuries. According to Wyoming’s trib.com news Web site, “Former Evanston volunteer firefighter Abe Wheeler has testified in favor of expanding workers’ compensation to at least cover PTSD for first responders. Wheeler was denied such coverage after witnessing two fellow firefighters perish in an apartment fire in April
2005. He said his department was ‘really good’ to him, but he still needed professional help and medication.” Just as the possible name change from post-traumatic stress disorder to post-traumatic stress injury (PTS) has been proposed in hopes of reducing the stigma attached to the condition, health care legislation is changing to help public safety workers and first responders with PTSD more easily receive their benefits. In May, the Connecticut House of Representatives made headlines when it passed a bill that grants compensation to firefighters who witnessed the death of a colleague on the job and are suffering from PTSD. The bill is on its way to the secretary of state. Also in May, government officials in Alberta, Canada, announced that firefighters, police officers and paramedics suffering with PTSD will receive presumptive coverage, meaning they will not have to prove their illness, a move intended to help reduce PTSD stigma and bring more victims out from the woodwork.
According to OHSCanada, the country’s occupational safety magazine Web site, “Sgt. Tony Simioni, who speaks for rank-and- file officers with the Edmonton police force, said they have been pushing for the change for a long time. … ‘Not only do claimants have to prove they have PTSD, they have to prove it happened on the job, and then they have to prove it’s so extreme they can’t do their jobs,’ he said.” Those in opposition to the bill as well as workers’ compensation reformers in general, feel the amendments to Alberta’s regulations discriminate against others such as nurses and social workers who face the same threats of PTSD and argue that the government is “picking and choosing” the employees who should receive benefits more quickly and easily. Steve Miranda is a director of special projects for Treatment Solutions. If you have any questions or know someone who may need his services, contact him at stevem@tsnemail.com or (508) 525-5974.
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Common Ground
JULY 2012
College admissions get even more competitive By Shelley Honeycutt Although experts had predicted college acceptance rates to plateau with the class of 2016, it seems that college admissions this academic season will be even more competitive than before. As colleges across the nation begin to self-report their acceptance rates, we are finding that 2012 has been another year of stark competition at the most prestigious colleges. At the top of the list, Harvard University accepted only 5.9% of their applicants— in contrast to 6.2% last year. Trailing right behind them are Stanford, Yale, Columbia, and Princeton. This trend is a signal to the class of 2017 to prepare for even more competition on a global scale next year. Students can prepare for this level of competition in a number of ways. Below are five solid ideas from the College PREP Collaborative professionals on how to help your student strategize, get organized and feel confident during the college application process this fall.
Strengthen your transcript The best predictor of future behavior is past behavior, hence admissions relies on your transcript to help them determine your academic strength. Students can show their academic commitment through the pursuit of Advanced Placement (AP) courses, Honors courses and even dual enrollment courses through their local college. Math and
Science majors should complete at least three AP courses in their chosen field at a minimum.
Think outside the brand name colleges With almost 4,000 colleges nationwide, there is a well-suited college out there for any student. “College Matching” is not just an over-used term, it is a method to help students select a college that will allow them to excel. The professionals at the College Prep Collaborative help students narrow in on colleges that fit them academically, socially and financially. “This proven formula allows students to select colleges based on personalized criteria which results in above average college success,” says, Gayle Jenzejec of the College PREP Collaborative.
Know your test score ahead of time Being able to take one test to determine if you will do better on the SAT or ACT is invaluable. Higher test scores can pay-off in both the admissions and scholarship columns! This test is available to students that take the 3-day College Admissions Boot Camp through the College PREP Collaborative this summer.
Write a stellar college essay One way to stand out among other admissions candidates is your essays. Students typically have
more than one opportunity to show off their writing skills. Most colleges request an essay, as well as responses to questions. Topic selection, essay tone, and a well thought-out essay strategy can help candidates shine. Families in our region that want help with completing the college application process and financial aid will now have the College PREP Collaborative to rely on. They will be offering several 3-Day College Admissions Boot Camps at Sylvan Learning Center locations in Rhode Island and Massachusetts this summer. For more information about the Camps visit www. CollegePREPCollaborative.com. The College PREP Collaborative was founded by a small group of higher education professionals. These professionals bring over 50 years of experience, a proven track record and a passion for helping youth succeed. Each member brings their individualized specialties and industry knowledge to the collaborative, which has evolved into an unmatched resource for college-bound families. For more information on the admissions process call Gayle at 401-821-0080. All Union members and their families will receive a $400 discount! Shelley Honeycutt is the Managing Partner for the College PREP Collaborative.
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Common Ground
JULY 2012
Page 17
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Common Ground
JULY 2012
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Common Ground
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