IFPTE 2014 LEGISLATIVE

ADVOCACY WEEKMarch 24-28, 2014Doubletree by Hilton

Crystal City, VA/DC

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1. Trans-Pacific Partnership – shaping up to be another bad deal for American workers

2. Congress Should Reform the H-1B Program, Not Expand It

3. Retirement Security - Important Now More Than Ever

4. Bipartisan Marketplace Fairness Act critical to State and Local Governments

5. Federal Employee Sacrifice = $120 Billion

6. Pentagon Contracting

7. Protect Critical U.S. Infrastructures and their workers as a part of the Water Resources Development Act (WRDA)

IFPTE 2014 Congressional Issues

Trans-Pacific Partnership – shaping up to be another bad deal for workersOverview On January 9th House Ways & Means Committee Chair David Camp (R-

MI) and the departing Senate Finance Committee Chair Max Baucus (D-MT) introduction of the so-called “Bipartisan Congressional Trade Priorities Act of 2014″ (HR 3830 & S 1900).

IFPTE, which represents tens of thousands of workers impacted by NAFTA style trade models, is opposed to the Baucus/Camp Fast Track legislation.

Fast Track allows Congress to abdicate to the USTR all negotiating authority, and allow negotiators to keep all proposals and agreements, including TPP and TAFTA from the public and Congress.

Fast track also disallows any member of Congress from offering amendments or changes to the USTR negotiated deal.

Unfortunately, this NAFTA style trade model continues to be followed by the USTR with respect to the current negotiations on the so-called Trans-Pacific Partnership (TPP).

Senate Majority Leader, Harry Reid (D-NV) has suggested that he has no interest in scheduling Fast Track legislation this year.

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Trans-Pacific Partnership – shaping up to be another bad deal for workersNAFTA trade model promotes a race to the bottom

Different Administration, Same Result - No Enforceable Worker Protections

“ILO Loophole” - Does not include enforceable, ILO Conventions – only the ILO Declaration.

Trade Imbalance - Since passage of NAFTA in 1994 through passage of KORUS in 2011, the U.S. trade deficit has ballooned from $75 billion in 1993 to $540 billion today. Yet, this is the same model that the USTR is pursuing for TPP.

Gives Access to State and Federal Government Contracts - Foreign companies are allowed the ability to bid on US publicly financed contracts.

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TPP – Another Bad Deal for Workers

TPP negotiations have been closed-door talks between the U.S., Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Vietnam, Singapore and Japan.

Not transparent - While upwards of 600 corporate representatives have seen draft TPP text, many others, including Members of Congress, are left wondering what the true nature of the negotiations are. This despite the fact that the TPP could be the largest FTA ever negotiated by the U.S.

TPP is said to include what is known as a ‘docking’ provision – to essentially allow other pacific-rim nations that are not originally part of the deal to sign on in the future. This one size fits all approach is particularly troublesome because it not only takes away the ability to deal with the unique issues that come with each particular agreement, it also sets the table for future all-encompassing FTAs.

President Obama has said in his last two State of the Union addresses that he would also pursue, “a comprehensive Transatlantic Trade and Investment Partnership with the European Union.”

IFPTE 2014 Legislative Request: IFPTE calls on House and Senate lawmakers to (1) oppose HR 3830 and S 1900 to grant Fast Track trade authority to the Obama Administration; (2) reject the Trans-Pacific Partnership (TPP) should it come up for a vote, and (3) move toward replacing our current NAFTA trade framework with one similar to that called for in the TRADE Act.

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Trans-Pacific Partnership – shaping up to be another bad deal for workers

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Congress Should Reform the H-1B Program, Not Expand ItOverview Last year the Senate passed S. 744, a comprehensive immigration reform

(CIR) bill that included legislative language championed by Senator Orrin Hatch (R-UT) and supported by Senator Chuck Schumer (D-NY) that drastically expands the H-1B high tech visa program.

There is also an almost identical bill in the House (HR 15).  The legislation will:1. increase the annual available H-1B visa cap from 65,000 to between

115,000 and 230,000. Basing the cap on the number of visas used gives employers an incentive to hire more H-1B workers to push the cap higher;

2. increase the H-1B visa exemption for advanced degree holders from 20,000 to 25,000;

3. gut language in the original bill that required employers to prioritize hiring American workers who are, “equally or better qualified” than H-1B workers and replaced it with language to allow employers to simply overlook well qualified American STEM workers and graduating STEM students in favor of lower paid H-1B workers, regardless of how well qualified they are;

4. create a loophole that allows employers to hire an H-1B worker, even when the employer has just laid off qualified full-time American workers.

Congress Should Reform the H-1B Program, Not Expand It

Embrace H-1B reform and reject its expansion Efforts to simply expand H-1B visas while remaining silent on

reforms are reflective of an alarming misunderstanding of the many flaws inherent in the program.

In 2012 the Department for Professional Employees (DPE) authored a Fact Sheet, entitled, Gaming the System: Guest Worker Visa Programs and Professional and Technical Workers in the US, which found that the H-1B program is damaging to not just US workers, but also to foreign workers.  

DPE found that, “The H-1B and L-1 visa programs provide little protection for U.S. workers,” while, allowing employers to, “take advantage of H-1B beneficiaries.”  The report goes on to find that, “Inadequate wage standards create incentives for employers to replace U.S. workers with guest workers.”  Sadly, S.169 does nothing at all to address the program’s inherent unfairness to US workers, while providing employers with an even greater avenue to exploit foreign workers.  

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Congress Should Reform the H-1B Program, Not Expand ItFallacy of the high-tech labor shortage claim A May 2013 Georgetown University Center on Education and the Workforce

study found an unemployment rate of 7.5% for recent college graduates in the field of engineering.

Overall unemployment for engineers is still between 3% and 4%, compared to the baseline unemployment rate of 1.7% before the Great Recession hit.

Full employment for STEM related jobs is not reached until the unemployment rate for most STEM job categories is at or below 2%. 

Linking STEM guest worker increases to CIR is misguidedWhile IFPTE fully supports a responsible path to citizenship for the estimated 12 million undocumented workers, linking a massive expansion of guest worker programs like H-1B, which will be damaging to hundreds of thousands, if not millions of American and foreign workers as the bargaining chip in achieving a path to citizenship is misguided and wrong. IFPTE 2014 Legislative Request -Congress should reject any attempt to expand the H-1B Visa program, including opposing H.R. 15 and S. 744. Congress should support the creation of an independent commission that would assess and manage future labor flows based on labor market shortages that are determined on the basis of actual need.

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Retirement Security - Important Now More Than Ever

Overview - “We are facing a retirement crisis” In July, 2012, Senate Health, Education, Labor and Pensions (HELP) Committee

Chairman, Tom Harkin (D, IA) released a report detailing the retirement security gap facing future retirees.

In stating that, “we are facing a retirement crisis,” Chairman Harkin’s report outlined the issue in sobering detail. Among his findings were:

-Half of Americans have less than $10,000 in savings for retirement;-Only one in five private sector workers is covered by a defined pension benefit; and,-The retirement to income deficit between actual retirement savings versus projected retirement savings is $6.6 trillion.The Universal, Secure, and Adaptable (USA) Retirement Funds Act of 2014  Provide universal coverage to all workers, particularly the 61 million

workers without a workplace retirement plan Automatically enroll workers at a rate of 6%, with employees having

the option to opt out, raise or lower the contribution Provide security to participants by paying them each month for the rest

of their lives Lower costs for retirement by 50% through pooled participation and risk

sharing Provide portability of benefits for workers as they change jobs

Retirement Security - Important Now More Than EverCuts to Social Security and Medicare are the last thing we should do The once reliable ‘three legged stool’ approach to retirement – a defined benefit

pension, Social Security and personal savings, is no longer a practical strategy for most workers

Yet, lawmakers from all political stripes have amazingly made it clear that cuts to our retirement programs are being considered.

Almost two-thirds of retirees count on Social Security for half or more of their retirement income. And, for over 30 % of social security recipients, the program represents 90 percent or more of their income.

Social Security, Medicare and Medicaid are particularly vulnerable to cuts as a part of any potential deal to defuse the sequestration trigger of $1.2 trillion in cuts to government agencies over the next 10 years.

IFPTE 2014 Legislative Request - (1) Support the Protecting and Preserving Social Security Act (S. 308, HR 649), sponsored by Rep. Deutch (D, FL) and Sen. Begich (D, AK), to strengthen the trust fund by gradually phasing out the outdated payroll tax earnings cap, as well as putting in place a fair COLA formula that is more reflective of the true inflationary rate; (2) Oppose any cuts to Medicare, including turning the program into a voucher system; and (3) Oppose the so-called Chained-CPI – an inaccurate inflation measure in determining COLA increases for Social Security recipients.

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Bipartisan Marketplace Fairness Act critical to State and Local Governments

Overview

Like federal workers, public sector workers in state and local governments have been dramatically impacted by shrinking revenues and budgets due to the great recession.

Pink slips, hasty and irresponsible privatization efforts, drastic cuts to worker pay, pensions and health care, and reduced vital services to taxpayers are systematic in many states and localities throughout the nation.

Public sector services, particularly Medicaid, are also vulnerable to deep cuts as a part of any potential deal to avoid sequestration and/or other efforts lawmakers are pursuing to address the national debt.

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Bipartisan Marketplace Fairness Act critical to State and Local GovernmentsCongressional Action Pertaining to State and Local Government Workers

Medicaid - It is no secret that various proposals being considered by Congress aim to turn the Medicaid system into a block grant system. Such proposals would dramatically shift the burden of providing Medicaid services largely to State governments. Position: IFPTE urges lawmakers to avoid any cuts to Medicaid, including turning it into a block grant system.

The Marketplace Fairness Act (S. 743, HR 684) –Enables state and local governments to enforce their own tax codes by collecting sales and use tax resulting from online and remote sales of goods and services. IFPTE urges Congress to pass The Marketplace Fairness Act.

 Public Sector Worker Pension Funds –Public Employee Pension Transparency Act (HR 567/S 347) would force State governments to change the metric used in determining their unfunded liabilities from the current return on investments rate, which is around 8%, to a Treasury rate, which is 4%-5%. IFPTE urges lawmakers to oppose the Public Employee Pension Transparency Act.

Business Activity Tax Simplification Act (BATSA) - HR 2992 would hinder state and local governments’ ability to collect taxes from businesses that do not have a “brick-and-mortar” presence in the State, even though they have employees and do business in said state. The Congressional Budget Office (CBO) estimates that passage of this legislation would reduce state revenues in excess of $2 billion. IFPTE urges lawmakers to oppose HR 2992.

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Federal Employee Sacrifice = $120 Billion

Overviewo Unfortunately our nation’s Civil Servants are continuing to be treated by both the

Congress and the White House as the nation’s ATM machine. o Proposals include a five year federal employee pay freeze, arbitrarily steep

reductions in the size of the federal workforce, and forced federal employee pension contributions with no corresponding increase in the pension benefit (including a proposal in President Obama’s FY13 budget).

Federal workers have sacrificed $120 billion for the Nation The original two-year pay freeze turned into three years. Steep pension contributions were imposed on newly hired federal workers. When the pay freeze was finally broken this January, federal workers received a

meager 1% COLA. Most towards deficit reduction, while some was used to offset the 2012 extensions of

the payroll tax cut and Unemployment Insurance (UI), as well as to help pay the bill to avoid sequestration through FY15.

Despite that significant sacrifice, federal workers have continued to be targeted for more cuts to their pay and benefits.

Continued

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Federal Employee Sacrifice = $120 Billion

Administration’s budget is disappointment for federal workers 

Federal employee COLA is inadequate: After $120 billion in decreased federal wages and pension benefits over the next ten years, furloughs resulting from sequestration, a government shutdown, and steep pension contribution increases for newly hired employees, the proposed1% federal pay increase is inadequate. IFPTE believes that a 4% COLA in FY15 is essential and fair, and urges Congress to act accordingly.

Base Realignment and Closure (BRAC) would kill tens of thousands of good jobs and devastate communities: IFPTE believes it is premature to approve a BRAC until there is a comprehensive and strategic cost-benefit analysis of our overseas bases.  This in addition to the fact that the Government Accountability Office (GAO) found that the total cost for implementing the 2005 round of BRAC ballooned by 33% from the original estimated expenditure of $21 billion to $35.1 billion (GAO-12-709R). IFPTE urges Congress to deny BRAC authority to the administration.

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Federal Employee Sacrifice = $120 Billion Privatizing the Tennessee Valley Authority (TVA) would harm rate payers

throughout the southeast: The President’s budget calls on Congress to “explore options to end Federal ties to TVA.” IFPTE believes that the Obama Administration’s ideologically driven plan is gravely incorrect. TVA is a New Deal success story that continues to provide inexpensive, safe, reliable, low-carbon energy to millions of ratepayers throughout the Southeast. TVA is not funded with any taxpayer money, and has proven to be effective government at its very best. Moreover, the administration has provided no evidence to support the divestiture of this national treasure. IFPTE urges Congress to block any attempt to divest some or all of TVA.

Jeopardizing the health of the National Aeronautics and Space Agency (NASA): The President’s FY15 budget reduces $185.9 million from that agreed to last year as part of the two-year budget deal, and recklessly seeks to accelerate the Agency’s ongoing hemorrhaging of talent. In particular, the administration has unwisely proposed cuts to NASA Science, Aeronautics R&D, Exploration rocket development, and Education, and Infrastructure Safety (CAS) that must be rejected. IFPTE urges Congress to reject these cuts by funding NASA at or above the FY14 enacted level, and to block the Administration’s efforts to outsource core competencies and undermine critical capabilities.

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Pentagon contracting – ‘at risk contracts’SUMMARY   The FY08 NDAA required the Department of Defense

(DOD) to take action on “at risk” contracts, i.e., those contracts which left taxpayers vulnerable to waste, fraud, and abuse.

DOD is required to eliminate any unauthorized personal services contracts, contracts for the performance of inherently governmental functions, and to reduce the number of contracts for the performance of closely associated with inherently governmental functions to the “maximum extent practicable”. 

However, last year GAO reported that DOD has made little progress towards identifying “at risk” contracts, let alone correcting them. 

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Pentagon contracting – ‘at risk contracts’Congressional Action To Congress’ credit, the Fiscal Year 2014 (FY14) DOD

authorization bill (PL 113-66) passed by Congress and signed into law last year took a step forward in attempting to address this matter.

Section 951 of PL 113-66 requires the DOD Inspector General to issue a report to the Senate and House Armed Services Committees detailing the progress made in adhering to the 2008 law.

Section 951 also requires the GAO to issue a report to these same committees as to whether or not the Department is taking concrete corrective actions.

However, section 951 failed to include House passed language championed by Hawaii Congresswoman, Colleen Hanabusa, mandating that DOD not only report, but also certify compliance with the FY08 law.

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Pentagon contracting – ‘at risk contracts’Hanabusa and Hirono amendments would have provided the path to DOD compliance:

o Under an amendment authored by Rep. Hanabusa last year, beginning in February 2014, and continuing each year through February 2018, the Department was required to certify with the inventory law.  Failure to certify would trigger an Inspector General investigation. 

o GAO would review DOD’s inventory to determine if the Department’s certification of compliance is accurate. 

o IFPTE was pleased to see that the Hanabusa language was ultimately adopted into the House bill, but later disappointed that the NDAA conferees failed to include the certification requirement as a part of the final conference report.

o We were equally disappointed when Senator Hirono authored and unsuccessfully encouraged inclusion of a similar amendment in the Senate NDAA.

IFPTE 2014 Legislative Request: Adopt language similar to the Hanabusa and Hirono amendments that require that DOD certify compliance with Section 808 of the FY08 NDAA. This amendment does not create new law, but it would enforce existing law, 10 USC 2330a. 

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Protect Critical U.S. Infrastructures and their Workers as a part of the WRDA Bill

Overview• The Senate easily passed S. 601 on May 15th, 2013 by a vote of 83-14. • October 23rd the House overwhelmingly approved HR 3080, the Water Resources and

Reform Development Act (WRRDA).

WRDA Reauthorization is a Jobs Bill WRDA could create and maintain at least 156,000 critical high quality American jobs, and

go a long way toward modernizing and preserving our homeland critical infrastructures such as ports, navigational lock and dams, inland, and coastal waterways.

As Chairwoman Boxer said at a November, 2010 hearing, “the U.S. Army Corps of Engineers estimates that every $1 billion in federal investment in water resources projects creates approximately 26,000 jobs.”

Protect Critical U.S. Infrastructures and their Workers as a part of the WRDA Bill

Section 2008 of S. 601

o Mandates that our nation’s water and navigational locks and dams will continue to be controlled and operated daily by federal employees.

IFPTE 2014 Legislative Request: Congress should support the bipartisan efforts of WRRDA conferees by passing a WRRDA reauthorization bill that (1) creates and preserves tens of thousands of jobs, and (2) maintains Section 2008 of S. 601 to ensure that the operation, maintenance, and repair of USACE floodgates, hydroelectric and navigation facilities locks and dams will continue to be performed and controlled by federal employees.

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IFPTE 2014 LEGISLATIVE

ADVOCACY WEEK

March 24-28, 2014Doubletree by Hilton

Crystal City, VA/DC