October 20 , 2008

IN THIS ISSUE:
REQUIRED UNIONIZATION APPEARS CLOSER
MENTAL HEALTH PARITY POLICY COMPROMISE PASSES
STUDIES SHOW FINANCES, ECONOMY HEAP STRESS ON U.S. ADULTS

Required Unionization of Your Employees Appears Closer

The onerous legislation, inappropriately called the “Employee Free Choice Plan (EFCA),” would effectively eliminate secret ballot union elections and replace them with a union-dominated card check scheme whereby a union would automatically be recognized if a 50 percent plus one employee signs authorization cards. Those cards would be signed without privacy, in the company of the pro-union organizer. Significantly, EFCA would also automatically end negotiations on an employer’s first contract with a union after only 90 days and send it to binding arbitration. This would give government officials unprecedented power to set wages and employment conditions throughout the economy.

It is hard to imagine what devastating impact this would have on American commerce and your ability to manage your workforce.

EFCA was passed by the U.S. House in March, 2007 by a vote of 241-185. In June 2007, the legislation was blocked in the Senate by a vote of 51 to 48 – nine short of the 60-vote threshold to overcome a filibuster. The EFCA has been strongly endorsed by Democratic Presidential nominee Senator Barak Obama. The Republican Presidential nominee, Senator John McCain, voted against the EFCA in 2007. Organized labor has made passage of the EFCA their principal legislative priority in 2009.

Mental Health Parity Policy Compromise Passes with Financial Stabilization

On October 3rd the Congress passed the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008. President Bush is expected to sign the surrounding financial stabilization bill into law as early as today.

The new parity provisions will apply to plans with 50 or more employees and will become effective for plan years beginning one year after enactment – January 1, 2010 for most plans. The parity law will require equal treatment of any plan-covered mental health or substance abuse benefits. It will also require out-of-network mental health coverage if such coverage is provided for medical benefits.

This victory is significant on at least a couple of levels. For one thing, it does not contain mandated coverage of every condition listed in the psychiatric professional manual (DSM-IV) as was originally proposed. It also does not allow state liability claims against ERISA plan for mental health benefits as proposed in the original. The remaining legislation is a fair and balanced approach consistent with the benefits trend towards prevention and management of chronic conditions.

In addition, it is significant because of the multi-year process of negotiating the provisions with non-traditional allies such as Massachusetts Senator Ted Kennedy, Connecticut Chris Dodd, as well as more traditional allies like Nevada Senator Michael Enzi.

Studies show finances, economy heap stress on U.S. adults

As many as 80% of nearly 1,800 U.S. adults responding to an American Psychological Association survey say finances and the economy are their biggest stressors, beating out work and relationship issues. Some 46% of respondents say they are worried about being able to meet their family's basic needs. Stress can induce symptoms including immune system suppression, sleep disruption and increases in blood pressure, says the director of the Yale Stress Center.


Thank you.
 
 
John C. Heavener, MSM, CAE
President
johnh@georgiaretail.org
Telephone – 770-484-3449, ext. 21
Fax – 770-484-5727
 
Georgia Retail Association
 
About GRA: The Georgia Retail Association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, and grocery stores has been serving the state’s business community since 1961. The Georgia Retail Association represents an industry with more than 71,300 retail establishments, and more than 715,000 employees - about one in five of Georgia’s workers - and 2004 sales of $115.2 billion.

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