An act relating to forestry resources and rural development, establishing a system of collective bargaining for loggers and haulers of logs.  Creates RCW _______, Amends RCW_________________

Be it enacted by the Legislature of the State of Washington

Sec 1: Legislative Findings:

Washington’s forest products industry is a vital component of Washington's economy and has a direct relationship to the economic health and welfare of workers, rural communities and businesses.

Central to the viability of the forest products industry is a stable workforce of loggers and log haulers available to harvest and transport wood from Washington's forests.  Such stability is currently endangered threatening the viability of rural communities and the employment of those in the forests products sector.

Based on patterns and configurations of forest landownership, the harvesting and hauling of forest products are performed by numerous loggers and truckers who, in many cases, despite being labeled “independent contractors”  are economically dependent and thus effectively employees of forest landowners.  The compensation and bargaining position of those individuals are adversely affected unless they are able to join together voluntarily in cooperative associations.

An imbalance of market power exists whenever one forest landowner owns, possesses or acquires economic control over more than 100,000 acres of forest in a labor market area.

The inequity of power in determining compensation and the lack of opportunity to join together in bargaining over compensation results in unfair contract rates for the services of loggers and log haulers.  This imbalance prevents the labor market from operating in a manner suitable for the public interest of Washington citizens. 

Furthermore, membership in such an association is meaningful only if a landowner contracting for harvesting and hauling of forest products is required to bargain in good faith with the association as the representative of its members.

The Legislature finds that it is in the public interest to ensure a reasonable rate of compensation for log harvesting and log hauling services and therefore creates in this chapter a process whereby a system of rate setting through collective bargaining is established between large commercial landowners and log harvesters and log haulers.

Sec 2 Definitions:

The definitions in this section apply through out this chapter.

Cooperative Association:  includes an incorporated membership based entity whose purpose is to promote the interests of those engaged in logging and log hauling through rate setting and is registered as such with the State of Washington and represents at least 50 harvesters or haulers or  any combination in a labor market area.

Economic control:  means the legal right, whether through ownership, contract, or otherwise to make or influence decisions regarding the harvest of trees and disposition in general of logs on subject land.

Forest land:  means land used primarily for the growth of trees to be harvested for commercial use.

Forest landowner means;

a.      a person, corporation, limited partnership, government, municipality, or any form of business organization registered with the State of Washington that owns directly, or through affiliated persons, or possesses economic control over, more than 100,000 acres in a labor market area, or 

b.     an agent or subsidiary of a person described in paragraph A if that agent or subsidiary is involved in contracting or negotiating contracts or other arrangements, written or oral, with forest products harvesters or forest products haulers. 

Forest products harvester or hauler: means a person having a place of business in this State who is engaged in harvesting trees or hauling harvested trees from forest land in the State under a contract or subcontract, directly or indirectly, for a forest landowner.

Labor market area: means those counties in one of two hauling areas set forth by the Washington State Department of Revenue for the purposes of applying the Forest Excise Tax.

a.      Those counties located in hauling areas 1,2,3,4,5, and 10 are in one labor market and,

b.     Those counties located in hauling areas 6 and 7 are in a second labor market area.

Section 3: State role in determining a stable market for harvesters and hauler

For the purpose of effectively representing their interests, harvesters or haulers may join together and form cooperative associations to meet, confer, share information and take other collective action as may support their mutual aid and promote a stable labor market.

Cooperative Associations may meet and negotiate with forest landowners on the issue of determining reasonable rates to be paid for harvesting and hauling services in the State of Washington.

Should the parties fail to reach an agreement regarding rates to be paid for harvesting and hauling services, either party can demand binding arbitration from the Department of ??????

The arbitrator must pick the rate from one of the two proposals offered by the parties based on the following criteria.  The rates may include differences for each of the criteria listed.

a.      The harvester's or hauler's costs, including, but not limited to, wages, overhead, fuel, insurance (including health insurance) pensions or other retirement costs, and the cost of replacing equipment;

b.      Environmental and highway laws or rules;

c.     The impact of the award on the competitive position of the landowner in the market area or competing market areas;

d.     A fair return on investment for all parties;

e.      The species of tree, type of machinery and method of tree harvesting involved;

f. The amount of hauling conducted on private roads and the amount of hauling conducted on public roads including travel time from the hauling site to the delivery site and the conditions of the road;

g.     Safety considerations;

Newly negotiated rates are contingent upon review and approval by the Department of Labor and Industries based on the criteria listed above.   Once rates have been approved by the State of Washington they remain in effect for that labor market area for one calendar year for that landowner.  Information provided to the Department must include:

a.     The identity of the forest landowner who owns or possesses economic control over the land on which the rates are to apply and the geographic area in which the rates are to apply;

b.    The rate, proposed by the filing party, including any rate agreed to in negotiations between forest landowners and harvesters or haulers;

c.     Information relevant to the factors needed for the Department to make a decision;

d.    A summary of negotiations between harvesters and haulers and forest landowners

Section 4: Violation

A forest landowner violates this chapter if that forest landowner:

a.      Pays rates for harvesting or hauling services in the State other than the Department Approved rates, if any, for that service in that hauling area; or

b.     Discriminates against any person for initiating or participating in a rate determination proceeding under this chapter

Section 5:

This chapter does not prohibit the negotiation and execution of a contract between a forest landowner and an individual harvester or hauler that provides for the payment of compensation rates other than those determined under this chapter, as long as no Department approved rates applicable to the service being provided exists.

Section 6. Not a Restraint of Trade

The provisions of this chapter are intended to displace existing market forces based on a legislative finding that such forces are insufficient to permit the affected market to function normally. Activities carried out pursuant to this chapter do not constitute a conspiracy, or a combination in restraint of trade or an illegal monopoly, nor are they carried out for the purposes of lessening competition or fixing prices arbitrarily, as long as the activities are carried out for the purpose of preparing, initiating or participating in a rate determination process under this chapter. A contract or agreement entered into pursuant to negotiations between a forest landowner and a group of harvesters or haulers is not an unlawful restraint in trade or part of a conspiracy or combination to accomplish an improper or illegal purpose or act, as long as the contract or agreement is approved by the Department of Labor and Industries.