Labor issues top off Congress' priority list - Column

Discount Store News, June 1, 1992 by Ken Rankin

As Congress and the administration grapple with the economy, labor-related issues are rising to the top of the legislative priority list here in Washington.

Some proposals gaining ground on Capitol Hill are designed to create employment opportunities, others are aimed at eliminating workforce inequities and still others do little more than curry favor with interest groups.

An example in the last category: a "Striker Bill" outlawing the hiring of permanent replacements for workers engaged in a workstoppage.

Although the plan has drawn opposition from retailers and industry groups, it appears headed for a showdown in Congress this summer.

Because organized labor supports the bill, Congressional leaders may round up enough votes to ensure passage. But the Striker Bill will never become law.

Other labor legislation pending in Congress stands a shot at enactment, and the news is not all bad. Here's what's on tap:

* Both Houses are closing in on measures to encourage senior citizens to rejoin the workforce by raising the Social Security "earning test." Currently, recipients lose $1 in benefits for every $3 they earn above $10,200 annually. The House has agreed to raise that ceiling to $20,000, while the Senate voted to abolish the limit altogether;

* Legislation to rescue the Targeted Jobs Tax Credit program has attracted support on Capitol Hill, but it's still not clear whether Congress will find time to renew these wage subsidies before funding for the program expired June 30;

* Proposals to overhaul the federal unemployment tax system are gathering steam. The plan is being pushed as a tax cut, but a massive increase in the FUTA wage base would more than offset a tax rate reduction. The upshot: more than $4 billion in new FUTA taxes for employers;

* Payroll tax reforms that reduce the frequency of deposits for small businesses an ease restrictions on big employers. Rep. Mike Andrews (D-Texas) is pushing such legislation in the House, but the IRS stole Congress' thunder by proposing to relax the rules. Under the IRS plan, 75% of businesses could make payroll tax deposits monthly, while the largest 25% would be offered flexibility on the timing of payments; and

* President Bush has called for legislation imposing the Federal minimum wage on the one organization that has always been exempt from these requirements: Congress itself.