New faces fill union ranks
Labor groups adapt to changing business world

John Stucke
Staff writer

At a glance breakout: Interview with Bonnie Olson

The face of organized labor is changing in Spokane -- from factory workers to health-care providers.

In the past 14 months, 1,700 employees have organized at Sacred Heart Medical Center, Spokane's largest private employer.

The trend is expected to continue in 2003.

Beth Thew, secretary treasurer of the Spokane Regional Labor Council, said she expects more union activity this year at Deaconess Medical Center and Valley Hospital and Medical Center.

"The heyday of unionism was back in the 1950s and 1960s. We've been beat up pretty bad since then, so what's happening in Spokane is interesting," Thew said.

In Spokane County, there are about 18,000 union members affiliated with the AFL-CIO. These numbers do not include thousands more unionized federal government employees, railroad employees and teachers, she said.

Unions have long been synonymous with Steelworkers in Spokane County. It was less than three years ago that Kaiser Aluminum Corp. and the United Steelworkers squared off in Spokane.

The labor action was followed by the rapid fall of Kaiser, which spiraled into bankruptcy under the weight of some $3.1 billion in debts and other liabilities. Poor aluminum prices, an economic recession and unstable electricity markets made bankruptcy the best financial tool available for the company.

In many ways, Thew said, the dismantling of America's basic industries during the past 30 years has mirrored union declines.

To counter membership losses in traditional industries, organized labor has turned increasingly to government and health care.

Unions often secure immediate wage hikes for members. About 550 medical technicians and therapists at Sacred Heart reached a contract in January that led to higher pay.

Watch next for contract negotiations between the service and maintenance workers at Sacred Heart, though there are indications that the hospital is taking a tougher wage stance.

Also this year, the Washington Legislature and Gov. Gary Locke will have to deal with the aftershocks of the new union representing home health-care workers.

At a time when the state is wrestling with a $2 billion budget hole, the Service Employees International Union Local 7 is seeking a pay raise for its 26,000 members -- including about 3,000 in Spokane -- that would cost the state an extra $65 million a year.

Another growth industry in the region is call centers. They have not escaped union attention.

"There's real potential there," Thew said. "Some of these are very sophisticated call centers that pay decent wages and need good employees."

Among the biggest issues facing unions and companies in 2003 will be the rising costs of health insurance plans.

Double-digit increases threaten to erase or surpass any wage hikes unions can realistically negotiate. Companies, too, are struggling to contain costs and still offer attractive benefits to workers.

At Boeing Co., for example, unionized Machinists long enjoyed a health insurance plan that didn't require a co-pay. Last year, workers accepted a contract with a health plan that introduces a 15 percent co-pay in 2004.

The contract was accepted by default when the International Association of Machinists barely failed to muster the two-thirds vote necessary to reject the contract and strike Boeing.

Traditional manufacturing unions also watched with interest as Boeing sold its Spokane parts plant.

The buyer, Triumph Group Inc., put an ultimatum to Machinists: accept a contract that called for a 15 percent wage reduction or the sale would be called off and Boeing would close the plant, said Machinists President Mark Blondin.

It was a risk Spokane members couldn't take, and the contract was accepted by the Machinists, among the most powerful and active union in Washington state.

The entire episode was viewed as a precursor to upcoming Boeing divestitures and what unions may expect from new employers such as Triumph.

Labor fact

About 9 percent of full-time workers in Spokane County are affiliated with the AFL-CIO. Nationally, the labor group represents about 13 percent of the work force.

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