Newsletter — March 7, 2024 | |
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POLICY
ECONOMY
POLITICAL NEWS
IN THE NEWS
TRENDS
SAFETY
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Today marks the end of the 2024 legislative session
Thursday, March 7, marks the official conclusion of the 2024 Supplemental 60-day Session under Washington State’s Constitution.
As commonly heard on the hill, today signifies "Sine Die" – pronounced as "sena dea" – a Legislative term indicating adjournment without setting a date for resumption.
The Legislature has successfully passed its budgets and numerous bills, and now legislators return to their districts. There's a significant incentive to adjourn on time, especially considering that many of them face reelection this fall. All 98 House members and half of the Senate are up for election, and during the session, they are prohibited from campaigning and fundraising.
Subsequently, the bills and budgets head to the Governor for review. Post-adjournment, the Governor has 20 days to take action, which includes signing the bill into law, vetoing or rejecting it, or utilizing section veto authority, allowing them to eliminate sections they disapprove of. If the Governor takes no action, the bill automatically becomes law. Many bills have specified effective dates, while others become effective after a certain number of days. Some bills carry an emergency clause, rendering them immediately effective upon signing.
WR will thoroughly review all bills it has engaged with, providing comprehensive reporting to its members through a Law Review shortly following the Governor’s bill signing period. Subsequently, WR will assist members in complying with new laws and regulations during the interim period, while also preparing for the next session by engaging with legislators, state agencies, and interest groups.
The next Legislative Session is scheduled to convene on January 13, 2025.
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Unemployment insurance benefits for striking workers falter in the Senate
Despite a spirited campaign led by organized labor, HB 1893, which would provide unemployment insurance (UI) benefits for striking workers, failed to garner the votes necessary to pass the State Senate. The bill was a high priority for organized labor, who implemented a well-organized lobbying and communication campaign that included two large rallies at the state capital in the final weeks of session.
In testimony before the House and Senate, WR reminded legislators that Washington’s unemployment Insurance program, which is entirely funded by employers, provides the highest levels of benefits to unemployed workers in the nation. Additionally, the program was one of just a handful in the nation that remained financially solvent through both the 2008-2010 recession and COVID-19. The fundamental reason for the program’s financial performance is adherence to state and federal principles that UI benefits be provided to those who lose employment through no fault of their own. Providing benefits to those who choose to strike and have a job to return to would be a dramatic deviation from the core purpose of the UI system, and lead to higher costs to be borne by public and private sector employers.
All sectors of the business community remained unified in their opposition to HB 1893 throughout the session. Significantly, late in the session, the Washington School Directors Association and Association of Washington Cities joined the business community in opposing HB 1893. Public sector employers do not pay UI taxes on their payroll and normally don’t get involved in these issues. However, these employers are required to reimburse the UI Trust Fund for the cost of benefits paid to former employees, or, in this instance, workers who may be on strike. Hence, in the event of a teacher’s strike, or a municipal strike, the public sector employer would be required to reimburse the state for the entire cost of benefits paid to striking workers.
In the end, HB 1893 did not have the support necessary to pass in the Senate but will likely reappear in a future legislative session.
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SHB 2467 enhances the accessibility of Washington's Long-Term Support Program
The passage of SHB 2467 represents a positive step forward for the long-term services and supports (LTSS) trust program. By allowing employees who move out of state to continue participating in the program, SHB 2467 ensures that individuals can maintain their coverage and access to essential services even if they relocate.
While there may be a slight increase in the premium rate required for solvency, this change demonstrates a commitment to ensuring the stability and sustainability of the program.
Overall, WR believes the passage of SHB 2467 will be beneficial for both businesses and consumers, promoting access to critical services and fostering a more supportive environment for workers.
Read more: researchcouncil.org
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L&I solicits suggestions for ergonomics rulemaking sector selection
L&I is seeking input on criteria for selecting sectors subject to ergonomics rulemaking, as mandated by the passage of SB 5217 in 2023. This rulemaking is significant as there are currently no federal ergonomics safety and health rules, and SB 5217 repealed a voter-approved initiative that prohibited the promulgation of ergonomics (or musculoskeletal injuries) rules. The Department is offering a brief window for suggestions on industry selection criteria, aiming to narrow down the selection to five sectors by mid-March. Suggestions can be submitted to Ergonomics@lni.wa.gov.
Potential industries for selection can be found in the Industries and Risk Classifications Eligible for Ergonomic Rulemaking report published last November, which L&I is required to update annually in November. By the end of April, one industry will be selected for rulemaking, with the regulation set to take effect on July 1, 2026, following a mandatory 120-day period from the adoption date.
Among the retail-related risk classes on the potential selection list are Fulfillment Centers (2103), Supermarkets (6402), and Wholesale Stores (6407), which include wholesale/retail combinations. WR participated in a pre-rulemaking stakeholder meeting held on March 1 alongside other business representatives to understand the process and offer suggestions.
For further information, L&I has established an Ergonomics Rulemaking webpage and provided a Frequently Asked Questions section. The new law mandates L&I to select another industry for ergonomics rulemaking every 12 months. Businesses seeking consultation can request an Onsite Consultation.
WR members are encouraged to provide input and suggestions directly. Please contact Rose Gundersen, VP of Operations and Retail Services, at rgundersen@waretailservices.com.
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The Legislature has approved Attorney General Bob Ferguson's proposal to establish an Artificial Intelligence Task Force, aiming to gather experts and stakeholders to examine AI's benefits and risks and provide recommendations to the Legislature. SB 5838 passed with bipartisan support and now awaits the governor's signature.
Additionally, WR’s efforts helped secure a retail seat on the task force, ensuring diverse representation and perspectives in the discussions and recommendations regarding AI.
Read more: WA State Attorney General News Release
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Consumer confidence in the United States fell in February after three consecutive months of improvement, largely due to concerns about the labor market, household finances, and business prospects. While inflation remains a significant worry, consumers are slightly less concerned about food and gas prices. However, apprehension regarding the labor market and the political environment has increased.
Despite these challenges, consumer spending, a key driver of economic growth, is expected to remain solid in 2024, albeit with more subdued momentum compared to the previous year. There are signs of cautiousness among consumers, with scaled-back plans for major purchases like homes, automobiles, and appliances, and a greater anticipation of rising borrowing costs.
Washington State, ranking third in the nation for fuel prices, may encounter challenges in household budgets, particularly among lower and middle-income families. This could result in more conservative spending habits among consumers, in the coming months.
Read more: Retaildive.com
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Washington's political stage set for transformation
2024 is significant for Washington's political landscape. It is going to be a pivotal election that includes the Presidential race, numerous congressional seats, all House of Representatives seats, and half of the Senate seats. With the legislative session concluding and the candidate filing deadlines approaching, several lawmakers have announced their retirement or intent to run for a different office, setting the stage for a series of open seat competitions.
Here's an overview of the open seats and, if applicable, current lawmakers seeking to fill the vacancy:
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According to Ballotpedia data from the 2020 general election, incumbents in Washington State maintained a 96% win rate, underscoring the difficulty challengers face in securing a seat. However, with 17 vacancies already announced, a considerable shift in Washington politics is imminent.
WR will continue to provide updates on the evolving political and campaign landscape as more announcements are made.
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The Bipartisan Workforce Pell Act needs a vote to help low-income students
Despite studies that inform policymakers on the merits of short-term workforce training, hurdles remain when it comes to accessing grant funding. Contacting lawmakers at the state and federal levels will make a difference.
At the federal level, Congress is proposing H.R. 6585, the Bipartisan Workforce Pell Act, which is sponsored by both parties’ leaders on the House Education and Workforce Committee. This proposal would help low-income individuals access Pell Grants on industry-recognized credential programs that are 8-15 weeks long. Though a vote was scheduled last week, House Leadership pulled the bill from the calendar due to insufficient support. Contacting our State’s Congressional delegates will help.
In Washington State’s 2024 legislative session, the Senate Higher Education & Workforce Development Committee heard SB 5958 which would establish a grant program for low-income students to receive grants for pursuing retail-related micro-credentials when federal aid is not available. At committee hearings, a retail management certificate instructor at a local community college provided data about the value of short-term credentials: workers who receive short-term certificates stay with their employers five years longer, receive twice as many promotions, and enjoy 33% higher wages. Over half of the certificate recipients will continue to higher education! This bill, however, did not move out of committee.
Advocating to promote an entry-level workforce is a practical application of our Justice, Diversity, Equity, and Inclusion (JEDI) principles. WR will continue collaborating with our allies in the House and Senate to enhance access to grants for low-income students, enabling them to obtain credentials that will help advance their careers.
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Call to Action: Support the Credit Card Competition Act
The Credit Card Competition Act (CCCA) presents a crucial opportunity for Congress to address exorbitant credit card fees burdening consumers. These fees have become increasingly unreasonable, negatively impacting individuals' financial well-being. However, the CCCA seeks to establish fairer rates for these fees without affecting credit card rewards or points programs.
Please contact your Congressmembers today and encourage them to support the Credit Card Competition Act.
Senate
House
Thank you for taking action today.
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Celebrating Women's History Month: Honoring women in retail
March marks the celebration of Women's History Month—a poignant reminder to honor the profound contributions and achievements of women, both past and present. What began as a week-long recognition in the United States has since evolved into a month-long observance, formally established in 1987, to underscore the indispensable role women play in shaping our societies and industries.
Within the realm of retail, the influence of women is undeniable, having left an enduring imprint on the industry characterized by innovation, inclusivity, and progress. From the pioneering spirit of entrepreneurs to the strategic vision of corporate leaders, women have exerted significant influence across every spectrum of retail, spanning from local enterprises to global conglomerates.
This month, let us pay tribute to the extraordinary accomplishments of women in retail. We commemorate the groundbreaking initiatives of trailblazers such as Mary Kay Ash, whose transformative impact on the cosmetics industry continues to resonate, and Helena Rubinstein, whose bold leadership redefined the standards of beauty retailing. These remarkable women, among countless others, have not only reshaped consumer experiences but have also revolutionized business practices, leaving a legacy for future generations to build upon.
It is imperative that we also shine a spotlight on the multitude of women propelling the retail sector forward today. From the tenacity of small business owners to the ingenuity of frontline workers and the strategic acumen of executives, their unwavering dedication, creativity, and resilience collectively form the bedrock of the vibrant retail ecosystem.
In a demonstration of this commitment to advancing women in leadership, on Wednesday, March 6, 2024, Renée Sunde, CEO of the Washington Retail Association (WR), participated in a fireside chat launching the JC Penny WINGS (women’s empowerment team) 2024 Women’s History Month Programing. Sunde was joined by Rachel Michelin, CEO of California Retailers Association where they highlighted their personal journey’s working in retail. Both speakers shared advice for women who are either starting or growing their careers in retail and how their organizations have advocated at the state legislative level in support of the retail industry.
As we collectively celebrate Women's History Month, let us not only pay homage to the achievements of women in the annals of retail history but also reaffirm our commitment to championing gender equality and inclusivity within the industry.
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Macy's Inc. has unveiled a strategic plan aimed at enhancing its position in the evolving retail market. As part of this forward-looking strategy, the company will be closing a portion of its U.S. stores, aligning its footprint with the changing dynamics of consumer preferences. This decision underscores Macy's commitment to adaptability and resilience in the face of industry challenges.
Despite the closures, Macy's will maintain a robust presence with approximately 350 full-size department stores across the country. The company is dedicated to rejuvenating its offerings to resonate with both existing and younger customers, recognizing the importance of staying relevant in a dynamic retail landscape. Additionally, Macy's plans to expand its luxury segment by introducing new Bluemercury and Bloomingdale's locations, catering to discerning shoppers.
It's noteworthy that while the closures will affect a portion of gross square footage, they represent a strategic reallocation of resources rather than a significant portion of sales. Macy's remains focused on optimizing its growth trajectory by concentrating on its best-performing assets. Through initiatives such as smaller-format and off-mall stores, the company is poised to leverage its strengths and capitalize on emerging opportunities in the market. Overall, Macy's is committed to a positive trajectory of revitalization and growth, positioning itself for continued success in the retail landscape of tomorrow.
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Washington's pharmacy landscape sees closures amid industry shifts
In 2023, Washington state experienced a notable surge in pharmacy closures, with a significant number of shutdowns, particularly in the Seattle area. Bartell Drugs and Rite Aid closures were particularly prominent, with more than half of the shuttered businesses belonging to these chains across King, Snohomish, and Pierce counties.
Rite Aid recently filed for bankruptcy in a move aimed to address unprofitable stores and restructure its substantial debt burden of approximately $4 billion. The acquisition of Bartell Drugs, a beloved Seattle institution, by Rite Aid in 2020 further added to the closures, as over 20 Bartell Drugs stores shut down in the Seattle area alone. The number of closures were a stark contrast when compared to the closures seen under Bartell Drugs' ownership in the preceding decade.
Safeway and Walgreens have emerged as leading operators in the state, surpassing Rite Aid in the number of drugstores they operate.
The concentration of closures in the Seattle area underscores broader challenges facing the pharmacy industry, with economic pressures and evolving consumer preferences reshaping the market. As pharmacies navigate these changes, stakeholders will need to adapt strategies to ensure continued access to essential healthcare services for local communities.
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Consumer trends forecast for 2024: Bright spots amidst economic challenges
Despite economic challenges like inflation and high interest rates, 2023 illuminated several bright spots across various consumer-facing sectors. From the influence of star power in retail and stadiums to the rise of second-hand apparel and the emphasis on experiential dining and entertainment, emerging trends in 2023 are poised to shape the consumer landscape in 2024.
1. Star Power in Retail and Stadiums:
Events featuring celebrities and cultural moments are directing consumer foot traffic, presenting significant opportunities for retail, dining, and advertising sectors. Examples include Taylor Swift's Eras Tour and Coach Deion Sanders' impact on college football, demonstrating the potential for a broader retail and food opportunity around events.
2. Second Hand Apparel on the Rise:
Driven by interest in sustainability and affordability, second-hand retailers are gaining popularity, especially among younger consumers. The category's sustained growth is expected to continue in 2024.
3. Placemaking as the Core of CRE:
Placemaking initiatives are transforming retail spaces into vibrant community hubs, fostering social interaction, and increasing foot traffic. Diverse tenant offerings and individual retail placemaking strategies are proving successful in attracting consumers.
4. Experiences Drive Entertainment & Dining Visits:
Consumers seek experiential components in entertainment and dining, as seen in the success of movies like Barbie and Taylor Swift's Eras Tour, and dining concepts like GEN Korean BBQ. Experience-driven businesses are poised for success in 2024.
5. Return to the "Old Normal":
Certain pandemic-induced consumer behaviors are reverting to pre-COVID patterns, such as weekend grocery shopping and the return to the office. These shifts will impact various sectors, including downtown dining and retail.
Read more
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PPEs fitted for women to honor International Women’s Day
According to a 2022 Canadian Women’s Experiences with Personal Protective Equipment in the Workplace report, half of women workers surveyed said that personal protective equipment (PPE) provided by employers does not fit them properly. Almost half of them have to supplement their own PPE! It is clear that the old approach of “pink it and enlarge it” is still prevalent in the workplace today!
To honor International Women’s Day, employers need to consider listening to women’s needs to improve productivity and inclusivity in the workplace. Tailoring PPE fitting to women employees promotes usage rate, safety, and equality.
Safety and Comfort:
Ill-fitting equipment increases the risk of workplace hazards like falls, overexertion, and the possibility of a serious injury. Additionally, comfortable gear improves focus and reduces physical strain, fostering a safer work environment.
Inclusivity and Equality:
Employers who invest in PPE tailored to women show their commitment to providing equal protection and support for all employees. Access to properly fitting PPE empowers women to excel in their roles, promoting a culture of respect and equality.
Engagement and Feedback:
Engaging female employees to understand their PPE needs is a practical step towards equality and inclusivity in the workplace. Asking for their input helps identify areas for improvement, from design and sizing to materials used. Involving women in the selection and testing process ensures that the gear provided meets their unique requirements and preferences.
Need help with improving your safety program? Check out our free Safety Ambassador Program, where we can help your safety programs to go from compliance toward quality safety practices. Contact us at safety@waretailservices.com to learn more.
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, State & Local GA Manager — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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