Panel kills 'Wal-Mart' bill

Plan would have forced firms to pay toward health care

Rachel Brand, Rocky Mountain News

Saturday, February 25, 2006

Legislators killed a measure Friday that would have forced corporations with 3,500 or more workers to pay a percentage of wages toward health care.

"My bill poses many unanswered questions," the sponsor, Rep. Judy Solano, D-Brighton, said in a choked voice to the House Committee.

She recommended the measure be delayed until May 12, the day after the session ends, saying it needed more study.

The House Business Affairs & Labor Committee voted 7-2 to kill the measure, with two Republicans voting no.

Republicans wanted a full vote on the House floor to get the bill's supporters and opponents on the record.

Steve Adams, president of the Colorado AFL-CIO, said he was disappointed.

"I think the business community turned it into another jihad," he said.

Just two weeks earlier, labor unions rallied at the Capitol in support of the bill, which would level the playing field between Wal-Mart and union shops such as Safeway and King Soopers.

Last month, Maryland became the first state to approve a measure that would require companies with 10,000 or more employees to pay 8 percent of wages toward health care. Of four companies that met the size limit, Wal-Mart is the sole business to be affected.

The Retail Industry Leaders Association - of which Wal-Mart is a member - has challenged the law in federal court.

Meanwhile, several dozen states across the country are considering similar bills to force large companies to pay a set amount for health care, or reimburse state-run health care programs.

Proponents say that when large, low-wage companies skimp on health insurance, employees and dependents go on Medicaid or stay uninsured. That hikes the bill for taxpayers.

Wal-Mart says that 75 percent of its employees have some form of insurance. That could be through the company or their spouse or Medicare.

On Thursday, Wal-Mart sweetened its benefits, pledging to shorten part-timers' waiting period for insurance and expand its $11-a-month health plan.

Solano's bill, informally known as the Wal-Mart bill, would have required companies with 3,500 or more employees to pay 11 percent of wages toward health care. At least 20 companies, including IBM, Frontier Airlines, Safeway and Qwest, would have been affected.

David Mendoza, a lobbyist for the American Federation of State, Federal and Municipal Employees, said he was "absolutely" disappointed.

Yes, Democrats control the House and Senate. Yes, they could have pushed the bill through, he said.

"But do you go to the mat and spend a tremendous amount of time on it, only to have it vetoed?" Mendoza asked.

He promised the bill would return next year should a Democrat win the governor's seat.

At the morning meeting, legislators commended Solano for introducing the bill and railed against the health care industry, business and Wal-Mart - the state's largest employer.

Rep. Fran Coleman, D-Denver, asked at what point American workers should be shielded from global competition, a force driving down U.S. wages.

"Maybe I might sound socialist," she said. "At some point, maybe I am."

Colorado Springs Republican Rep. Larry Liston rolled his eyes.

"Wal-Mart pays an 'associate' six dollars and some cents per hour? I'm sorry, I have a problem with that notion," Coleman said. "I have a problem with companies that rape this nation."

Wal-Mart says it pays an average wage of $11.11 to hourly workers in Colorado, not including employees at distribution centers and Sam's Clubs.

brandr@RockyMountainNews.com or 303-892-5269. The Associated Press contributed to this report.