Common Ground August 2013

Page 1

AUGUST 2013

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Legislative session brings mix of good and bad for labor

By Common Ground staff

The state legislative session that ended last month brought some key victories for the labor movement—including a new law permitting child-care workers to unionize and a budget that reinstated a pension payment—but it also ended in some notable disappointments. “It was OK. I’ll put it that way,” said Michael Sabitoni, president of the Rhode Island Building and Construction Trades Council. Key wins on pensions, wages Sabitoni, who represents public and private-sector workers, praised the General Assembly rank-and-file members for voting to make a nearly $13 million scheduled payment into the pension system. The payment was supposed to come from last year’s surplus, but the House leadership instead had proposed

using the money to help plug holes elsewhere in the budget. That decision was reversed in a rare vote against leadership by a coalition of labor, progressives, dissenters, and GOP members, said Jim Parisi, a lobbyist for the Rhode Island Federation of Teachers and Health Professionals, who described the vote as the most important one for the teachers union. Another major labor victory was passage of a bill that will allow more than 600 child-care workers in home settings to unionize. The Rhode Island AFLCIO praised the move. “These child care providers will now have a voice in their working conditions,” the labor organization said in a statement recapping the legislative session. Lawmakers also approved hiking the minimum wage from $7.75 an hour

to $8, which is above the federal minimum of $7.25, which has been in place since 2009, according to the AFL-CIO. But state lawmakers snubbed labor on a controversial debt payment for 38 Studios. Labor leaders had decried the fact that state officials were pressing lawmakers to vote for payments on moral obligation debt after reneging on what they described as a “moral obligation” to keep their promises on retiree pensions. The budget nonetheless included a $2.5 million payment on the 38 Studios debt. In future years, the amount is expected to increase. Mixed outcome for building trades For the building trades, the legislative session had a similar mix of the good and bad. Sabitoni praised state lawmakers for

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providing funding for infrastructure work in cities and towns. The budget establishes a $7 million Municipal Roads and Bridges Revolving Loan Fund, which had the backing of House Speaker Gordon Fox and General Treasurer Gina Raimondo. The fund is meant to help communities borrow money for road work at a lower cost, according to an official Statehouse summary of the budget. The assembly also passed a resolution endorsing the redevelopment of the Dynamo House in downtown Providence—a key project for the construction industry, which continues to battle a higher-than-average unemployment rate. Lawmakers also revived the historic tax credit program, adding a requirement that projects at $10 million and See Labor cont. on page 4


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