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News Briefs

Date Posted: February 3 2006

State pushes back at Wal-Mart
In what could prove to be a landmark case, the Democrat-controlled Maryland state legislature overrode a veto by the state's Republican governor last month, passing a law aimed at Wal-Mart that requires companies employing more than 10,000 workers to spend at least 8 percent of their payroll on health care - or pay any shortfall into a special state fund.

Sponsors of the bill said the legislation was not aimed at Wal-Mart - but with 15,000 employees in Maryland, the retailer is the only business affected.

"Maryland is not a shrinking violet - no, far from it," said Sen. Gloria G. Lawlah (D), a lead sponsor of the legislation, to the Washington Post. "Maryland is a leader. Let us light the torch today. Let us lead."

Wal-Mart earned more than $10 billion in profits in 2005, but has long been criticized for offering employees health insurance that is too expensive and inadequate.

According to the United Food and Commercial Workers Union, in Alabama, Wal-Mart employees with children on Medicaid cost the state between $5.8 million and $8.2 million to cover 3,864 children. And Wal-Mart workers in California rely on state taxpayers for about $32 million annually in health-related services.

The Wal-Mart push-back is spreading. During his state-of-the-state speech on Jan. 17, Wisconsin Gov. Jim Doyle (D) took another shot across the bow of the retailing giant when he said: "I want to make this very clear to Wal-Mart and any other company that might be thinking of shifting its health-care responsibility to taxpayers: BadgerCare (Wisconsin's program to provide health care coverage for uninsured families) is intended to help working families, not multibillion dollar corporations."

The Maryland vote drew applause from Wal-Mart Watch, one of several groups that have been pushing the company to improve wages and benefits.

"The eyes of the nation were on Annapolis (Maryland) today," said a statement by the group. "And the override votes will generate important momentum in many other state legislatures that are considering similar health care bills."

Congress takes aim at executive pensions
With the health of pension plans for American workers increasingly at risk, Congress is making rumblings toward blocking companies from funding lavish pension payouts to executives at troubled companies.

The Wall Street Journal reported Jan. 25 that a provision in a bill would "keep financially troubled companies from setting aside any special pension benefits for top executives if their pension plans for rank-and-file employees weren't adequately funded."

The Journal article added that a bankruptcy proof supplemental retirement benefit program for executives in the troubled airline industry rankled Congress.

"…a $45 million fund set up a few years ago for 35 top officials by Delta Air Lines Inc. have galvanized support for reining in such perks at other beleaguered companies."

Congress continues to work on a plan to shore up the finances of the Pension Benefit Guarantee Corp., a federal agency which underwrites pension obligations of financially troubled companies. The PGBC is under-funded by $22.8 billion.

Jobless benefits are taxable
With the coming of tax season comes a reminder from the Michigan Unemployment Agency that jobless benefits are taxable.

The State of Michigan has begun mailing out year-end statements to anyone who received unemployment benefits in 2005. The 1099-G statements report how much individuals received in unemployment benefits last year.

Those who have questions about their 1099-G statements or who did not receive a statement have several options to contact the Unemployment Agency.

  • *For telephone filed-claims, call (866) 500-0017. Select the "inquiry" option. This number is staffed from 8 a.m. to 4:30 p.m., M-F.
  • *The customer relations hotline is (800) 638-3995. It is staffed from 7 a.m. to 7 p.m. M-F.
  • *Unemployment Agency Resolution Offices are open M-F from 8 a.m. to 3:30 p.m. They are located in Gaylord, 400 W. Main St; in Grand Rapids, 3391 Plainfield Ave., NE; Lansing, 5015 S. Cedar St.; Livonia, 33523 W. Eight Mile Rd.; Marquette, 2833 US 41 West; and Saginaw, 614 Johnson St.