Success at the bargaining table isn't enough for SEIU Local 503, OPEU members. Our future and the future of our families is directly linked to politics and elected officials. They make decisions that affect us every day at work and in our communities.

   This issue of President Joe's Journal takes a look at layoffs at the Department of Human Services (DHS) and what lies ahead for workers impacted by budget cuts.

    A related question, "Do corporations pay their fair share of Oregon taxes?" forces us to examine a tax code stuck in 1931. Finally, members celebrate a contract victory for Addus home health care workers.

In this Issue: DHS Layoffs are Not Good News for Oregon  $10 Minimum Corporate Tax: "O say, can you see...?"   Addus Members Ratify New Contract  eNews Flash: Marion County, Medicare Cuts, Restructure on the Road

DHS Layoffs are Not Good News for Oregon

   During the 2005 legislative session, hundreds of SEIU Local 503, OPEU members from all over Oregon came to the Capitol to fight for quality public services. We met with legislators and worked hard to convince them to provide adequate funds for the DHS budget. We told them over and over that funding should be maintained and that caseloads should be decreased. Unfortunately, not enough legislators were willing to stand up and do the right thing for DHS clients and workers.

   When they signed the 2005 – 2007 budget, legislators chose to cut $25 million dollars of "non-mandatory" services. We disagreed with their decision and description of DHS services. We said services like Inpatient Childrens' Mental Health, Employment Related Day Care (ERDC) and Temporary Assistance to Needy Families (TANF) are vital to the long-term success of vulnerable Oregonians. The bottom line is this: the legislature knew how much DHS caseloads would grow and refused to provide enough funds for the increase.

   This fight is not over. We plan to revisit these budget issues with "Emergency Board" legislators in December. The $25 million for so-called "non mandatory services" is an issue that brings Self-Sufficiency workers, Child Care workers and advocates together to support critical services. There is still time for legislators to demonstrate they care about the citizens of Oregon, not just corporations and special interests.

   There are close to 150 positions directly impacted by the DHS layoffs. Some workers have already received layoff letters. Please be aware and tell your co-workers: anyone who receives a layoff letter has seven days to make a decision and return their choice form.

  Call your steward to learn what choices are available and make sure you are ready to meet the required timelines.

$10 Minimum Corporate Tax: "O say, can you see...?"

   In 1931 Congress adopted the Star Spangled Banner as our national anthem and the Empire State Building was completed in New York City. A loaf of bread cost 9 cents, average annual family income was $1,500 and the minimum tax for corporations doing business in Oregon was rolled back to $10. During the past 75 years we've seen a lot of changes. The cost of almost everything else has gone up, but the corporate minimum tax in Oregon is still stuck at just $10.

   Wasn't your last tax bill more than $10? Many profitable corporations use tax loopholes and only pay the minimum. In 2000, over half of all Oregon corporations with $2 million or more in payroll paid Oregon the minimum $10 tax. One out of five corporations carried losses forward from earlier years to reduce their taxes to the minimum. And some large corporations use business tax credits to avoid paying any income tax over $10 to Oregon.

  Public records show twenty-six corporations with Oregon taxable income over $1 million paid the minimum tax in 2000. Three years ago, PGE gave CEO Peggy Fowler a $211,000 raise to $979,000 and Louisiana Pacific raised CEO Mark Suwyn's salary from $1.5 to $1.9 million. According to the Oregon Center for Public Policy, both companies paid the Oregon minimum tax of $10 that year.

   We can raise the corporate minimum tax in Oregon. This year, SEIU Local 503, OPEU members will explore ways to make our tax system more fair and end this sweetheart deal. Linda Burgin, a member from the Oregon Department of Education and SEIU Local 503, OPEU Secretary-Treasurer, says, "It's time for corporations to pay their fair share to maintain quality public services in our communities."

   When legislators refuse to take on corporate loophole lobbyists, SEIU members can step up. Joel Broussard, a member from DHS asks, "Why should corporations get away with paying just $10 a year in taxes, while hundreds of workers at DHS are getting pink slips?"

   Workers have the right to demand a fair tax code that funds adequate services and isn't stuck in 1931. Oregon communities need to close this outdated tax loophole express window.

Addus Members Ratify New Contract

   Addus members voted October 31, 2005, to accept their new contract with a 98% Yes! vote. SEIU Local 503, OPEU represented Addus home health care workers provide valuable in-home services for elderly and disabled Oregon clients.

   Our Addus bargaining team worked through months of tough bargaining and issues that threatened to divide workers. In the end, members in Portland, Salem, Eugene and Medford showed commitment and concern for each other, determination to fight for fairness and, once again, demonstrated we are stronger when we work together.

   Addus HealthCare, Inc., is a national company that provides in-home health care services. Until the very last minute, management insisted on a 3-year pay freeze for workers in Portland. Bargaining team member Sherry Stiles says, "We knew we couldn't accept management's offer. We had to fight to make sure no one was left out." Addus members held firm, and the final settlement provides raises for workers in every part of the state.

   All four Oregon Addus offices will pay workers on the same scale by the end of the new contract. In addition to pay raises, the employer will pay 80% of health care premium costs, rather than the 70% they paid until now. Addus workers also won an increase in mileage reimbursement rates. Finally, management agreed to pass through 73% of future reimbursement increases directly to wages and benefits. This victory puts members in a very good position for the next round of contract negotiations.

   Congratulations everyone!

eNews Flash

Marion County Contract: Workers recently completed bargaining surveys to get ready for upcoming negotiations. Marion County Employees Association (MCEA) members sit down at the bargaining table with county managers in December to work out new contract terms. Restructure on the Road: Meetings with members in Pendleton, Bend and Medford have helped our Restructure Committee gather input about what works and what doesn't work in our current Board and District structure. Please join us for a 9 a.m. town hall discussion November 20 at our Portland office or December 4 at our Eugene office. A Salem HQ town hall begins at 1 p.m. December 10. Medicaid Cuts: The U.S. Congress plans Medicaid cuts that will cause thousands of children and seniors to lose their health coverage. Caregivers, providers, advocates and public sector workers have joined together across the country to protect health care for working families and Put families first!