NEWS UPDATE - 5/20/16

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1 Illinois A F L - C I O NEWS UPDATE - 5/20/16 Union Movement Stands As One, Responds to Rauner s Attacks 10,000 descend on Springfield When Governor Rauner took office in 2015, he declared war on union members and the middle class. On Wednesday, May 18th, labor, civil rights, and community groups made their voices heard at the capitol. The day was inspiring to those who attended, because we the many, stood together to be a part of something bigger than ourselves. We are the protectors of the middle class. Governor Rauner doesn t care about the hundreds of thousands of people seniors, students, parents, veterans - who are struggling as never before because of his destructive policies policies focused first and foremost on destroying the labor movement in our state, said Illinois Working Together Co-Chair and Illinois AFL-CIO President Michael Carrigan. All of this devastation is due to one man a mega-millionaire who thinks his huge wealth means he should be able to impose his will on an entire state. Governor Rauner is determined to ram through his extreme and harmful agenda and he doesn t care about how much damage he inflicts in the process. Illinois AFL-CIO President, Michael T. Carrigan, addresses the crowd at the rally. Photo by Gary Otten. G e n e ra l See more photos of the rally on page 2 A ss e m b l y The Illinois House and Senate adjourned for the week on Thursday. Both chambers are scheduled to return on Monday, May 23rd. When they return, both chambers are scheduled to remain in session every day through May 31st. The Governor began the week by issuing a total veto on HB 580, a bill to move state contract negotiations to a fair impartial arbitrator. The House sponsor, Representative Chris Welch, filed a motion to override the Governor s veto on May 17th which gives the House until June 1st to act on the motion to override. The Senate sent SB 2038 to the Governor on May 18th, which was a $715 million human service funding bill. The Governor and legislative leaders met in Springfield on Tuesday to discuss the budget. Following the meeting, Speaker Madigan allowed a vote on Governor Rauner s property tax freeze (HB 673, HA #1) and gutting of collective bargaining (HB 673, HA #2) both amendments failed miserably on the floor. Both chambers passed a MAP funding bill (HB 4167) to help low/middle income college students for tuition assistance, which will now go to the Governor. General Assembly highlights begin on page 3. Illinois AFL-CIO, 534 S. Second Street, Suite 200, Springfield, Illinois Michael T. Carrigan, President Timothy E. Drea, Secretary Treasurer

2 Page 2-04/29/16 Illinois Working Together - May 18 Rally Illinois AFL-CIO, 534 S. Second Street, Suite 200, Springfield, Illinois Michael T. Carrigan, President Timothy E. Drea, Secretary Treasurer

3 Page 3-05/20/16 Prevailing Wage Legislation Passes House Bill now goes to Governor, passes both chambers with veto proof majorities SB 2964 (Harmon/Hoffman) passed the House this week by a vote of The legislation was initiated by the Operating Engineers and LIUNA. To address the uncertainty and inconsistency in ascertaining prevailing wage rates, SB 2964 proposes a statutory framework to establish prevailing wage rates based on collective bargaining agreements, where at least 30% of the laborers, workers, or mechanics in a particular trade or occupation receive a collectively bargained rate of wage. This framework will streamline the wage determination process by eliminating the need for a statewide survey, thereby saving State, contractors, public bodies, and labor organizations significant time and resources expended to compile, organize, and review hourly wage rate information on an annual basis. Illinois AFL-CIO Initiatives Pass House Committees The Illinois Chamber of Commerce opposes legislation, prefers the current pay to play system SB 2531 (Lightford/Welch) and SB 2600 (Delgado/Welch) passed House Committees this week on a partisan roll call. Around many regions in Illinois, corporations have come together with other businesses and local governmental bodies to form economic development corporations, with large membership fees. Some regions have a fee as high as $100,000. Often times, these EDC s influence where TIF/Enterprise Zone funding goes. Many labor unions have difficulty paying the large fees, and minority groups have little voice on the boards. This legislation seeks two labor spots and two minority spots with no charge, and no compensation. It applies only when public dollars have been contributed toward the regional EDC. Firefighters Pass Two Bills this Week HB 1380 (Phelps/Forby) passed Senate Labor Committee this week by a vote of The bill states that unless mutually agreed otherwise, a party to a collective bargaining agreement who fails to timely comply with an interest or grievance arbitration award or, who after a timely demand, fails to submit a grievance dispute concerning the administration or interpretation of an agreement to arbitration, shall pay to the prevailing party in an enforcement action all reasonable costs of the proceeding in the trial and reviewing courts including reasonable attorneys fees. The bill now goes to the Senate floor on final action. SB 2439 (Sandoval/Zalewski) passed the House this week by a vote of This would allow municipalities without a Firefighter Pension Fund (Article IV) that have at least 50 full-time firefighters to allow their full time firefighters to participate in IMRF SLEP pension plan. Passed both chambers, will now go to the Governor for his consideration. SEIU Passes Service Provider Package in House As Gov. Bruce Rauner s attack on Illinois home healthcare and child care workforces and programs continue, caregivers and those they serve are pushing legislative remedies to protect health insurance and training for workers, to raise wages and reduce turnover, and to expand access to the Child Care Assistance Program for working families. Three bills passed in the House this week: The Workforce Security Bill for Home Healthcare Providers Serving People with Disabilities (SB 2931) would protect existing training and health insurance programs that Governor Rauner is demanding to eliminate at the bargaining table, and would raise wages to $15 an hour for one of the lowest-paid state workforces. Protecting benefits and raising pay will lead to higher retention, less turnover, and ultimate savings for taxpayers. Passed House Passed both chambers. The Workforce Security Bill for Home Healthcare Providers Serving Seniors (HB 5764) would protect existing health insurance and would provide a rate increase, phased in steadily over four years, to raise industry standards and wages to $15 an hour. Codifying health insurance and increasing stagnant wages will reduce turnover among the workforce and ensure continuity in quality care for seniors. Passed House To Senate. The Child Care Worker Protection Bill (SB 2536) would protect health care and training benefits for the child care workforce. Governor Rauner is attempting to end health care coverage for home child care providers, who are disproportionately low-income women of color suffering from higher rates of diabetes, heart disease, and breast cancer. Passed House Passed both chambers. Illinois AFL-CIO, 534 S. Second Street, Suite 200, Springfield, Illinois Michael T. Carrigan, President Timothy E. Drea, Secretary Treasurer

4 Page 4-05/20/16 Voter Registration Expansion Passes Senate Senator Manar passed SB 250 for automatic voter registration by a vote of in the Senate this week. SB 250 now goes to the House. The main components of the plan include: Requires the State Board of Elections to receive voter registration data from certain state agencies. Requires state employees that serve the public to offer individuals the right to register to vote or update their information during a transaction. Applicants who are 16 years of age shall be deemed competent to execute and attest to any voter registration forms. They may pre-register to vote. Once annually, all designated agencies subject to this act shall cross reference voter registration information for the purpose of updating statewide voter registration list. The State Board of Elections shall provide an annual report to the General Assembly and Governor on the progress for implementing this new act. The agencies responsible for updating voter registration data under this new act include: Secretary of State s Driver Services & Vehicle Services Departments; Department of Human Services; Department of Healthcare & Family Services; Department of Employment Security; Department on Aging; and Any federal source that agrees to submit personal identification information to the State for voter registration purposes, and any other reliable state government source the State Board of Elections may designate. AFSCME Passes Livable Wage Legislation, Hardin Work Camp Bill, and DOC Measure HB 5931 (Gabel/Steans) passed the House this week. Provides that the Department of Human Services shall establish reimbursement rates which build toward livable wages for front line personnel in residential and day programs serving persons with intellectual and developmental disabilities. Provides that the Department shall increase rates and reimbursements so that direct support persons earn a base wage of not less than $15 per hour and so that other front line personnel earn a commensurate wage. The bill now goes to the Senate. The Senate State Government Committee passed HB 4326 (Phelps/Forby) this week by a vote of 6-2. The bill requires that the Department of Corrections shall operate the Hardin County Work Camp located in Cave-In-Rock, Illinois. The legislation goes to the Senate floor on final action. The Senate Labor Committee approved HB 5104 (G Harris/Manar) by a vote of The bill is a joint initiative of the Illinois Nurses Association and AFSCME. It restricts IDOC s and IDJJ s ability to replace the 322 state employee who currently provide these critical services by bringing in private vendors to perform the work currently being provided by state employees. It now goes to the Senate floor. Penalties for Non-compliant Building Trades Apprentice Programs Pass SB 3104 (Althoff/Jesiel) passed House Labor Committee this week by a vote of It would create a penalty for a failure to submit required apprenticeship reports under the State Construction and Female Building Trades Act. Under that act, each labor organization and other entity in Illinois with one or more apprenticeship program for construction trades must report to the Illinois Department of Labor the information required to be submitted to the Bureau of Apprenticeship and Training that lists the race, gender, ethnicity, and national origin of apprentices in that labor organization. The penalty would first be a warning, followed by a $100 penalty for each day after the 45th day from the warning. For a second violation, the penalty shall be $250, and $500 for a subsequent violation. This legislation goes to the House floor for final action. Illinois AFL-CIO, 534 S. Second Street, Suite 200, Springfield, Illinois Michael T. Carrigan, President Timothy E. Drea, Secretary Treasurer

5 Page 5-05/20/16 Guzzardi Seeks to Help Undocumented Workers to Receive Pay Representative Guzzardi (D Chicago) passed HB 3554 out of the House this week by a vote of Under the legislation, an employee may apply to their employer to request a change in terms and conditions of employment as they relate to: number of hours worked; times the employee is required to work; location of work; amount of notice for work assignments; fluctuations in number of hours worked. In return, the employer must make a good faith interactive process with that employee. HA #2 to the bill added language to assist undocumented workers who do not receive their pay. Currently, workers will file a wage complaint with IDOL. The Department sends a letter to employer for violation, tells employer to pay worker or IDOL. By the time the Department receives money from the employer, IDOL cannot find the aggrieved employee. In this case, the money is placed into the Department of Labor Special State Trust Fund. Currently, to get your money out of this trust fund, you must have your social security number. HA #2 would require IDOL to maintain contact information for workers. If the employer mails IDOL the money due to the worker, IDOL must make an effort to contact workers. If IDOL is unable to contact the worker, they may deposit into state account. This legislation authorizes workers to claim their money with an Illinois Taxpayer Identification Number OR social security number. The bill now goes to the Senate, where Republican Senator Bill Brady is the sponsor. New Report: Attacks On Prevailing Wage Laws Disproportionally Hurt Veterans Report Finds That As Hundreds Of Thousands Of Iraq and Afghanistan Veterans Enter Work Force, Prevailing Wage Greatly Improves Economic Outcomes For Veterans As Prevailing Wage Comes Under Attack, VoteVets Buys $500,000 worth of ads in Illinois. A first-of-its-kind, peer reviewed study released today finds that prevailing wage greatly improves economic outcomes for veterans and that growing attacks on prevailing wage at the state level will disproportionally hurt the hundreds of thousands post-9/11 veterans who are returning to the workforce. Exploring of the economic impact of state prevailing wage laws on veterans in the construction industry, the study was commissioned by VoteVets, the largest progressive group of veterans in America, and conducted by Frank Manzo IV of the Illinois Economic Policy Institute, University of Illinois-Urbana Professor Robert Bruno, and Colorado State University-Pueblo Economist, Dr. Kevin Duncan. The data clearly shows that veterans work in the skilled construction trades at significantly higher rates than nonveterans, said Manzo. The difference is even more pronounced in states with average or strong prevailing wage policies--so any changes in these laws will have an outsized impact on those who have served in the military. With construction now the second fastest growing industry in America, the military is helping active duty service personnel prepare for civilian careers through the US Military Apprenticeship Program (USMAP) which now accounts for almost 22% of all registered apprenticeships in the country. The study found that prevailing wage laws not only encourage more veterans to put these skills to work in their communities, but that they pull thousands of veterans out of poverty each year in the process. Utilizing industry standard economic modeling, it also found that if each of the states with average or strong prevailing wage laws enacted repeals, 24,000 veterans would lose their health insurance, another 65,000 would leave the construction workforce, veteran construction workers would see their incomes drop by $3.1 billion per year, and nearly 8,000 veteran owned construction businesses would shut their doors. With prevailing wage laws coming under attack in at least 11 states over the past two years, VoteVets has announced that it will be begin airing ads to educate the public about the importance of these standards, and hold lawmakers accountable. The campaign will begin in Illinois, where Governor Bruce Rauner had proposed repeal at the local level as part of his Turnaround Agenda. It is appalling to see so many politicians who profess to support veterans actively fighting to cut their wages, said VoteVets Chairman Jon Soltz. Prevailing wage laws help more veterans translate battlefield skills into middle class careers in their communities. With too many post 9/11 veterans struggling to find work, we need to be strengthening these laws, not weakening them. Illinois AFL-CIO, 534 S. Second Street, Suite 200, Springfield, Illinois Michael T. Carrigan, President Timothy E. Drea, Secretary Treasurer

6 Page 6-05/20/16 WAGE Act Legislation Strengthens Worker Protections The Workplace Action for a Growing Economy Act (S. 2042/H.R. 3514) will strengthen workplace protections for working people by leveling the playing field for employees. The National Labor Relations Act protects the rights of private sector workers union and non-union to engage in collective activity with their co-workers to secure improvements on the job like equal pay, scheduling flexibility, paid sick days and training and promotional opportunities. WAGE Act legislation is currently introduced in the U.S. House and Senate. This legislation would: Provide for swift, temporary reinstatement when workers are fired or retaliated against for exercising their rights to join together to seek improvements on the job. Strengthen the remedies for workers who are fired or retaliated against, and give workers the ability to bring their case directly to court. Establish strong penalties against employers who violate workers rights. Provide real, meaningful, timely remedies when employers interfere with fair elections. Streamline the NLRB s processes. Improve workers knowledge of their rights. Current co-sponsors from the Illinois congressional delegation are: Sen. Richard Durbin (D), Rep. Luis Gutierrez (D-4), Rep. Jan Schakowsky (D-9), Rep. Tammy Duckworth (D-8), Rep. Cheri Bustos (D-17), Rep. Dan Lipinski (D-3), Rep. Mike Quigley (D-5), Rep. Danny Davis (D-7), and Rep. Robin Kelly (D-2). There are no Republican co-sponsors from Illinois yet. White House Gets Involved in Verizon Strike (From the Stand Up To Verizon website) With the largest strike in recent history now in its second month, U.S. Labor Secretary Tom Perez has intervened to convene negotiations between CWA, IBEW and Verizon s CEO. Meanwhile, the dangerous conduct of Verizon s temporary replacement workers and its secretive off-shoring activities in the Philippines are receiving more scrutiny. Meanwhile, the press continues to investigate Verizon s use of armed security officers and SWAT teams to intimidate representatives of striking workers investigating its offshoring activities in the Philippines. Salon notes that Verizon has roughly 40 percent fewer unionized U.S. workers than it did a year ago, and quotes CWA District One President Dennis Trainor here: Verizon is terrified that the public might find out about what has happened to the good middle-class jobs the company has shipped to the Philippines. The truth is that Verizon is destroying middle-class American jobs so that it can pay workers $1.78 per hour and force them to work around the clock, rather than preserve good jobs in our communities. For more information: Illinois AFL-CIO Political Briefing June 6 COPE Endorsement Session June 7 Springfield, IL Contact Bill Looby at BillL@ilafl-cio.org to RSVP Obama Administration Revamps OT Rules: Millions Will Get Long-Earned Pay Bump New overtime protections announced this week by the Obama Administration will extend overtime benefits to more than 4.2 million workers. The new overtime threshold for salaried employees will be set at $47,476 and will take effect on Dec. 1, Under the regulation the threshold will be updated every three years. Currently, workers making under $23,660 automatically qualify for overtime. That threshold hasn t changed in 40 years. This is a long overdue step to raising wages for all workers. We applaud this action by the Obama Administration, said Illinois AFL-CIO President Michael T. Carrigan. The fight to raise wages for all working people continues. Too many people in this country are working too long and too hard for wages that are not keeping up. Taking this step will improve the lives of many and we must keep pushing to change the rules rigged in favor of Wall Street. Illinois AFL-CIO, 534 S. Second Street, Suite 200, Springfield, Illinois Michael T. Carrigan, President Timothy E. Drea, Secretary Treasurer