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Vol 2, Issue 9

Joe DiNicola, President SEIU Local 503, OPEU

May 4, 2006
 SEIU Local 503, OPEU members continue to spend evenings and weekends talking and walking to get out the vote for the candidates that members have chosen to endorse. Ballots for the May 16 primary arrived this week in mailboxes all around the state. It’s up to all of us to make our voices heard. Today we decide who we trust to make vital decisions for working families about affordable health care, the rights of workers to organize and the promise of a secure retirement. Please vote.

   In this issue of President Joe's Journal, members at NWREL celebrate a contract victory that clears the way to better communication in their workplace and members ask follow-up questions from the last issue about PERS. Workers rally at Lottery to join SEIU, Forestry workers open the doors for a new community resource and nursing home workers stand up for safe staffing levels.

In this Issue: NWREL Workers Win • Did You Get Your Ballot? • What is the PERS "Pick-Up?" • eNews Flash: Lottery Workers Rally, Safe Staffing and Forestry Workers Celebrate

NWREL Workers Win

Members at Northwest Regional Education Lab (NWREL) reached a contract settlement on April 25 after months of intense negotiations. Workers stood together until the very end with a "button day" and a strong turnout for the last night of bargaining.

 The bargaining team stood firm to improve pay equity. The economic terms of the new contract call for an average raise of 4.1%. In addition to an across the board and longevity pay increase, the bargaining team negotiated an equity raise to move those whose salaries were lagging closer to the mid-point of the pay range. This provision helps reduce long-standing pay inequities. In addition, all represented NWREL workers will maintain their existing health insurance coverage and other benefits.

 NWREL members are also celebrating a big contract victory on union rights. Bargaining team member Lucy Barnett says, "We finally won the right to distribute union literature in the workplace without restrictions on the content or frequency of distribution. This allows better communication with members and will strengthen our union at NWREL." It is a huge win for SEIU members. On the job, NWREL workers meet the goal to improve education. Now members have the clear right to provide union information in their workplace and help educate each other in the fight for dignity and respect for all workers.

SEIU Local 503, OPEU members at NWREL work to improve education for children, young people and adults in Washington, Idaho, Alaska and Montana. Located in downtown Portland, this private nonprofit corporation receives funding from the US Department of Education and other state and federal funding sources. NWREL's staff develops and provides tools and training to help create equity and excellence in learning for all students. For nearly forty years, NWREL programs have promoted strong public schools, strong communities, strong families and well-educated children because that’s what builds a strong nation.

Congratulations NWREL members! We celebrate with you. Every worker wins when we stand strong together.

Did You Get Your Ballot?

In just 12 days, on May 16, voters decide which Democratic and Republican candidates will appear on the November ballot for elected offices in Oregon. That includes candidates for Governor, Judges, State Representatives and State Senators.

In Oregon, we adopted a total vote-by-mail election system several years ago. Voters receive a postage-paid return envelope with each ballot. Follow the instructions on how to mark and mail your ballot. Remember, ballots that are not signed will not be counted. So make certain you sign and date the outside of the mailing envelope before you put your completed ballot in the mail.

Your vote-by-mail ballot must be received at your county election office by Election Day, Tuesday, May 16. Postmarks do not count. County elections offices are open from 7 am to 8 pm on Election Day, and drop boxes are located around your community.

Ballot packets are already in the mail to all registered voters in Oregon. If you are registered to vote and you did not receive your ballot, there may be a simple solution. If your ballot did not arrive because your name, residence or mailing address changed, you may re-register and pick up your replacement ballot at your county elections office up until closing time on the day of the election, May 16.

Now is the time to hold elected officials accountable. Check with co-workers, friends and family to make sure every voter fills out, signs and mails their ballot before May 16. Let them know, "Every vote will count!"

What is the PERS "Pick-Up?"

As all PERS members know, our pension system is a complex topic. Many have questions about the PERS 6% "pick-up." Members want to know, "What is the PERS pick-up?" and "Is it my money or the employer's?" These questions confuse newspaper reporters; they seldom report the right answers. Here's the real story on the "pick-up."

  • Every PERS member is required to contribute 6% of salary to his or her own retirement account. In 1979, state workers negotiated a contract to allow the employer to "pick up" employee PERS contributions instead of raising salaries. Many school districts and local government bargaining units followed suit and also adopted the "pick-up" in order to afford raises for workers and save taxpayers money.
  • The 1979 PERS "pick-up" agreement was a "win-win." Over the past three decades, employers have saved hundreds of millions of dollars in payroll tax expenses. Under terms of the "pick-up," the employer deposited members' 6% contribution directly into member PERS accounts and therefore did not have to pay employer payroll taxes on this contribution. The pre-tax "pick-up" agreement meant workers got a 6% raise because their individual contributions to PERS were now "picked-up" and paid by the employer.
  • The 6% "pick-up" is not an employer contribution to pension system benefits. It is an employee contribution. As explained above, workers agreed to allow employers to make the pension contribution on behalf of PERS members, instead of paying raises that cost employers much more in payroll taxes.
  • In 2003, Governor Kulongoski tried to "end PERS as we know it." Employees' 6% contributions, "picked up" by employers since 1979, stopped going directly into PERS member accounts. Currently, those employer-paid 6% employee contributions are being diverted to "IAP" accounts (Individual Account Program).

Unlike a PERS account, an IAP account has no guaranteed annual return and will not be matched by the employer at retirement. IAP accounts are also more expensive to administer than PERS accounts. We continue to challenge the changes made by Governor Kulongoski, the Oregon Legislature and the PERS Board in federal court. Members say the diversion of our 6% employee pension contributions to IAP accounts is wrong. Our attorney, Greg Hartman, says that this diversion violates the provisions of the U.S. Constitution that protect contract rights.

Everyone should be able to rely on the pension they were promised when they were hired. A deal is a deal.

eNews Flash

Lottery Workers Rally: SEIU Local 503, OPEU members showed up in purple April 27 to join Lottery workers and support their fight for the freedom to form a union. Change to Win coalition partners from Laborers, Teamsters and Carpenters joined SEIU members from Homecare, state agencies and local government work sites to stand up to Lottery management's unfair tactics. Lottery workers said, "We thought we were alone. To see this level of support is amazing." An election this month will determine whether Lottery workers join our union. Safe Staffing: On April 28 nursing home workers joined with senior advocates, SEIU members and retirees to talk about how to address the issue of chronic under staffing and how under staffing puts nursing home residents' safety in danger. Contact your organizer, any officer or steward to find how what you can do to help. Forestry Workers Celebrate: Forestry workers opened the doors of the new Tillamook Forest Interpretive Center on April l. Members say everyone will enjoy a visit to this new facility and learn about our forest resources. The Center is located 1 hour west of Portland on Highway 6. It's a great family destination.