Legislative Labor Related Issues

Illinois Legislative Labor Related Issues

96th General Assembly Recesses; Full-Year Budget Still Up in the Air

The 96^th Illinois General Assembly recessed, but did not adjourn its 2009 Spring legislative session on Sunday, May 31, 2009. The record of accomplishment was, to say the least, a mixed bag. The State Legislature failed to pass a full-year budget by the May 31, 2009 deadline. As of this writing, budget negotiations between the Governor and legislative leadership continue. A summary of other key issues follows:

Capital Bill

On May 21, 2009, the General Assembly passed a $29 billion capital construction bill called

“Illinois Jobs Now!” The legislation passed in a series of three bills: HB255 (revenue stream), HB312 (projects), and HB2400 (bonding). The last capital construction plan in Illinois (“Illinois First”) was passed in 1998.

Funding for the plan is achieved largely through fee increases, including vehicle registration, title/transfer, and drivers’ licenses; sales tax increases on candy, wine, beer, and liquor; privatization of the State lottery; and regulation and taxing video gaming state wide.

Projects covered include: roads, AMTRAK, airports, transit, school construction, capital projects at public universities, and state parks. The allocation of funds also captures additional federal funds.

Political Campaign Ethics Reform

HB7 (with Senate Amendments 1 and 2) passed both Houses on May 31, 2009 and will become

law after Governor Quinn signs it as promised. The bill limits, for the first time in Illinois, the amount of campaign contributions; and also regulates the funding of labor union political action committees.

Other UAW/Labor-Related Issues

Unemployment Insurance (UI) Modernization/Enhancement

(SB1350): passed both Houses on 5-30-09.

SB1350 was originally a bill to expand the duration of unemployment benefits for workers who are locked out by employers. Due to the “Agreed Bill” process in Illinois, the original bill became subject to a moratorium on non-agreed UI bills moving in either chamber for the remainder of the 96^th General Assembly.

Therefore, SB1350 became a vehicle to capture additional federal funding available under the

American Recovery and Reinvestment Act (ARRA) to assist states to modernize the payment of Unemployment benefits.

Under ARRA, Illinois was allocated $300 million. Under current Illinois law, the state qualified for $100 million in modernization funds, but needed to adopt additional provisions to qualify for the remaining $200 million. As a result of the “Agreed Bill” negotiations, this bill does the

following:

Allows long-term unemployment workers to qualify for an addition 7 weeks of extended benefits, in addition to the current 13 weeks
Sets a weekly dependent allowance of at least $15 per dependent subject to an aggregate cap of $50 or 50% of the weekly benefit amount
Guarantees that workers who voluntarily leave employment due to compelling family reasons will not be disqualified for benefits
Imposes a .2% reduction in the weekly dependent child allowance for thoseat maximum level and filing for initial benefits on or after 1-1-11 and a .3%reduction effective 1-1-12

Employee Free Choice Act (EFCA) Resolution (SJR35)

A joint resolution urging Congress to pass the EFCA passed the State Senate on a party-line vote, but got hung up in the House Rules Committee. Governor Quinn did sign a pro-Employee

Free Choice Act letter that was sent to President Obama and Congressional leaders.

Support Chrysler Belvidere Plant (HR339)

The House passed a resolution urging the President and Congress to work together with the State of Illinois to ensure the viability of the Chrysler plant in Belvidere.

Buy American Vehicles (SB1559)

The Senate passed this bill requiring Illinois school districts and municipalities to purchase a

lease only vehicles assembled in the U.S. by a vote of 51-0-1. The bill was held in the House

by sponsor Rep. Hernandez after floor debate. An amended version of the bill may be brought

back for consideration during the Fall veto session.

UAW License Plates (HB2625, Amendment #2)

Provides for the creation of special Illinois license plates for the UAW, with associated fees

allocated to a charitable cause designated by the Union. Passed both Houses on 5-30-09.

Assistance to Auto Industry. Under the terms of the bridge loans that were extended by the federal government to GM and Chrysler at the end of 2008, the domestic auto companies will be developing restructuring plans during the first few months of 2009. In addition, the Obama administration and Congress will be considering major initiatives related to energy security and global warming during the coming year that are likely to pose significant new challenges for the auto industry. Please urge Representatives and Senators to insist that any auto industry restructuring plans must not single out workers and retirees for unfair sacrifices. Also, tell Congress to support initiatives that will provide assistance to the companies to enable them to: (1) meet fuel economy, greenhouse gas emissions and other requirements; (2) retool facilities in the United States to produce more fuel efficient advanced technology vehicles and their key components; and (3) implement fair restructuring plans that will ensure their long term economic viability.

Economic Stimulus Package. To counteract the severe recession, the Obama administration and Congressional Democrats have pledged to act quickly on a huge economic stimulus package that will give a major boost to our economy and create millions of jobs. This package will include tax relief for 95% of working families. It will also include significant new spending on health care, education, infrastructure, and energy initiatives. And it will include substantial improvements in unemployment insurance, food stamps, health care, and trade adjustment assistance benefits to help unemployed and low income individuals. Please urge your Representative and Senators to support prompt enactment of the economic stimulus legislation. Tell them this measure is urgently needed to create jobs, boost our economy, and provide assistance to laid off workers.

Health Care Reform. The Obama administration and Democratic Congressional leaders have vowed to push national health care reform legislation during the coming year. The UAW and a broad coalition of progressive organizations will be mounting a major campaign in support of this effort. We will be insisting that any legislation should guarantee universal health care coverage and comprehensive benefits, restrain escalating costs, ensure quality care, and provide for equitable financing. In particular, we believe this legislation should include mechanisms to deal with retiree health care legacy costs, so that retirees receive promised benefits and older manufacturing companies are not placed at a competitive disadvantage. Please urge Representatives and Senators to support national health care reform legislation, and to insist that it must contain these essential elements.

U.S.-Korea Free Trade Agreement. The Bush administration negotiated a terrible free trade deal with Korea that would require the U.S. to immediately eliminate its tariffs on imported autos and auto parts, and to phase out our 25% tariff on imported pickup trucks. At the same time, this trade deal does not require Korea to eliminate its tax and other non-tariff barriers to U.S.-built automotive products. As a result, Korea would be able to keep its market virtually closed to our automotive products, while it increases exports to our market. The resulting increase in our already large auto trade deficit with Korea would lead to the loss of tens of thousands of jobs for American workers. Urge Representatives and Senators to oppose this unfair free trade deal with Korea, which represents a major threat to the jobs of UAW members and other American workers. Tell them to insist that the Obama administration must renegotiate this trade deal so that Korea is required to open its market to U.S.-built automotive products before the U.S. grants any further access to our market.

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