April 9, 2009

OLYMPIA… Today Gov. Christine Gregoire announced the release of a report on Washington’s competitiveness and legislation and the creation of a Washington Council on Aerospace. Senate Republican Leader Mike Hewitt and Sen. Janéa Holmquist, ranking Republican on the Senate Labor, Commerce and Consumer Protection Committee, are members of the Washington State Aerospace Task Force and issued this statement following the announcement: 

Sen. Mike Hewitt:
“The report released today was very interesting. I support the creation of the council announced today, but also urge the council and the Legislature to act quickly on the issues revealed in the report. While the governor said today that the report’s number-one recommendation is training and education, it also showed that the two most important things to aerospace are cost-related recommendations and labor/management relations. The one thing the Legislature and the governor can affect in the report are the cost-related recommendations – unemployment insurance (UI), workers’ compensation, taxes and other business-related costs.  The report found that Washington is the most expensive wage state among the five compared in the report – and the fourth-highest in the nation. It found we have the sixth-highest UI costs in the country – the highest among the five states compared – and the highest workers’ compensation costs among those states. Unemployment insurance and workers’ compensation costs are things the Legislature and the governor can change – and should change, quickly, before we lose more jobs.” 

Sen. Janéa Holmquist:
“While creating this mechanism is a step forward to hopefully improving Washington’s competitiveness and retaining jobs in what is a $36 billion industry in our state. At the same time, legislators need to be aware of legislation that makes Washington less competitive. Just last night the Senate passed a bill that will increase costs for self-insured companies like Boeing during workers’ compensation appeals. Also, the Legislature has not yet passed a bill to bring Washington’s unemployment insurance into conformity with national standards – something very important to keeping UI costs from going higher. Therefore, on one hand, we’re saying we want to improve our business climate – something the report released today shows we need to do. On the other hand, we’re passing legislation that increases costs to employers and makes Washington less competitive. The Legislature and the governor should be cognizant of retaining jobs in every industry – from Boeing to our small businesses. The study released today shows us where we need to improve. Now it’s time to act.”

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For more information contact Rebecca Japhet at (360) 786-7516or japhet.rebecca@leg.wa.gov