Helping Protect The Viability Of Oregon's Restaurant Industry

2017 is upon us and with it comes another significant legislative session chalk full of debates around the budget, labor laws, and transportation funding. If you haven't made plans on February 28, please set aside the date for our industry. We have an opportunity to connect you with your legislators that day in Salem's Capitol building.

We know there are real issues on the horizon in Salem and we will not be able to be effective without your engagement and commitment to stay educated as priorities emerge. Front and center will be paid family leave legislation and restrictive scheduling laws that create even more pressures on Oregon's small businesses in the wake of new minimum wage laws and paid sick leave. We must be involved in these conversations to protect the viability of Oregon's restaurant industry.

As you may have heard, we have our own proactive priorities we hope will be considered including more balance in compensation between kitchen staff and wait staff as well as a comprehensive transportation package to improve mobility and access to Oregon's restaurant scene. In addition, you probably know we are in the middle of filing appropriate paperwork to the United States Supreme Court to fight for the rights of our members to implement a tip pooling policy between wait staff and kitchen staff here in Oregon.

The 91 people in Oregon's Capitol building over the next six months have their hands full and they'll need our help to make wise and thoughtful decisions that benefit Oregonians. The biggest issue continues to be balancing Oregon's budget and making sure spending is reined in based on resources available. Our state budget continues to grow (over eight percent growth) but spending is growing at a more rapid pace. In order to be effective, Oregon's legislators will first be challenged by the give and take of Oregon's budget balancing process.

We expect the upcoming legislative session to be one of the most challenging in recent memory. The politics at the national level could create a more abrasive environment at the state level. Those dynamics will make your business story and your willingness to show up in Salem more important than ever.

Take us up on our February 28 invitation. Make a difference in 2017 for Oregon's hospitality industry and as always, thank you for making the decision to be in business and employ your fellow Oregonians.

For more information on ORLA's Day at the Capitol, email Greg Astley, director of government affairs at Astley@oregonrla.org. RSVP at OregonRLA.org/CapitolDay. | Jason Brandt, President & CEO, 
Oregon Restaurant & Lodging Association

Changes Are At Your Doorstep

We have a monumental change in the White House as Donald Trump prepares to take the reins of leadership in Washington D.C. No matter how you participated in this year’s election process, there are a number of realities that should be discussed in lodging circles as a result of Donald Trump’s rise to the presidency.

First off, Mr. Trump is a hotelier. This fact should give the lodging community some reason to believe there will be a receptive ear to the issues facing the industry and that the United States will continue to promote the growth of international travel experiences to our country with the assistance of our President-elect.

Secondly, it seems clear that infrastructure investment will be made a priority as part of Mr. Trump’s presidency. You may have noticed that infrastructure investments was the second thing mentioned in his victory speech. Here in Oregon that commitment should come as welcome news as we all understand the correlation between transportation investments and travel.

Another element of note is Mr. Trump’s commitment to keeping American jobs at home. As a hotelier, Mr. Trump realizes that the hospitality industry is full of positions that cannot be outsourced effectively and although technology may change that in some respects our industry remains full of growth opportunities for domestic job creation.

According to U.S. Travel, inbound international travel is ranked second as an industry export and accounts for 10 percent of all U.S. export dollars. This reality showcases how key it will be that international travelers continue to receive value for the dollars they bring and spend in our country.

As advocacy efforts ramp up here in Oregon, I hope you will make the decision to get out on the field and join us for ORLA Day at the Capitol on Tuesday, February 28. That afternoon is our opportunity to mobilize for the hospitality industry and make sure your businesses are further understood by those we choose to elect as lawmakers in our state. If you would like more information, email me at JBrandt@oregonrla.org or visit OregonRLA.org/CapitolDay. | Jason Brandt

The Big Wheels Keep on Turning for Oregon Tip Pooling

The Oregon Restaurant & Lodging Association owes a debt of gratitude to our partners at the National Restaurant Association and our friends at Jackson Lewis law firm for working together to cover all costs for a petition of the United States Supreme Court in our case, Oregon Restaurant & Lodging Association v. Perez. If the Supreme Court takes the case, both parties have also agreed to cover all costs associated with necessary deliberation of our position. So, fingers crossed that the U.S. Supreme Court does in fact take the case and grant our petition for rehearing.

If you’re just now getting up to speed, we continue to fight for the rights of our restaurant members to implement mandatory tip pooling policies amongst staff working within the line of service as they see fit. We feel tip pooling amongst staff (not management) to be a right of employers when they are already meeting the full requirements of minimum wage law for all staff they employ.

There are seven states in our country (including Oregon) that do not have a tip credit, meaning all employers in these states are meeting all minimum wage obligations of all staff regardless of tip income being received by employees from customers. In a controversial decision on February 23, 2016 the Ninth Circuit, to the surprise of many, disregarded its own precedent in a previous case ORLA was involved with in Cumbie v. Woodie Woo to hold that the United States Department of Labor (DOL) had lawfully promulgated a rule under Section 203(m) of the Fair Labor Standards Act (FSLA) that restricts employers from implementing “tip pooling” arrangements that require employees that are customarily and regularly tipped (such as restaurant servers) to share such tips with their fellow employees who are not customarily or regularly tipped (such as kitchen staff).

On September 6, 2016 our case was denied a rehearing which upheld the February 23 decision. We were however granted a stay of the Ninth Circuit, meaning the government will not enforce the February 23 decision until either the Supreme Court denies our petition for certiorari or the Supreme Court reaches a final resolution on the merits of our case (if it takes the case).

Our lawsuit, Oregon Restaurant & Lodging Association v. Perez, is based on our belief that principles established in previous court cases that established the rights of our members to create tip pools between front of the house and back of the house staff were intentionally supplanted by a federal bureaucracy that didn’t like the decision judges made in our case.

If we look back at where we started on this issue and where we are to date, it has been quite the journey full of crucial questions that must be addressed about what separation of powers look like in the United States of America. Should the U.S. Department of Labor have the right to create a new rule that applies to employers operating in states that are already paying the full obligations of minimum wage outside of tip income and tell those employers how tips can and cannot be dispersed amongst employees within their private business? Should the U.S. Department of Labor be able to circumnavigate clear judicial direction given to us in our district court case allowing tip pooling in our state through a stroke of their rulemaking pen?

We certainly don’t think so. And we hope the U.S. Supreme Court agrees that a closer look at our case is deserving as they make tough decisions about what cases to accept with their limited time. Keep your fingers crossed – it is possible your statewide association in the northwest corner of the country will have its day in court amongst the most highly regarded court in the land.

In the meantime, please review your available tip pooling options here as we await more clarity on tip pooling through the judicial process. | Jason Brandt, President & CEO

No on 97 – Oregon’s Largest Tax Proposal Ever

In a few short weeks it will be hard to miss the battle taking place on Oregon’s ballot between those
advocating for more tax revenue for state government versus those against it. The $6 billion tax increase proposal is the largest in state history and would be paid on the sales of products and services that Oregonians buy every day. The projected cost for the average Oregon household totals over $600 a year.

For months, Oregon Restaurant & Lodging Association has been officially opposed to Measure 97 (previously known as Initiative Petition 28). In partnership with consumers, families, small and large businesses, and organizations from across Oregon, ORLA will fight hard against this tax proposal and the harmful impacts it would have on our great state. Our biggest concern continues to be the impacts the measure will have on disposable income given the industry’s reliance on the ability of Oregonians to eat out on a regular basis. In addition, direct increased costs relating to food and utilities in particular will further disrupt the fragile profit margins our members are working hard to protect.

 We want all industry members to take the time to learn more about the proposal and engage in conversations with friends and family to discuss what’s at stake. In one of the most glaring mistakes, you will see proponents in favor of the measure praising the tax for its ability to boost dollars for education when nothing in the structure of the measure guarantees that any of the tax revenue would actually be spent for that purpose.

Given our recent track record with Cover Oregon and other wasteful government programs, my hope is that there is common agreement across party lines that cutting a blank check for over $6 billion to our state government might not be the wisest decision.

There is a wealth of information available online to digest at your own pace as you prepare to make decisions about your views on Measure 97 this election year. For me personally, the independent study conducted by the Legislative Revenue Office takes the cake. It concludes that if Measure 97 were to pass, Oregon would lose over 38,000 private sector jobs.

 These facts may give you confidence that Measure 97 has very little chance of passing but we cannot rest on our laurels or become complacent about the real threat it poses to disposable income flexibility for Oregon families and increased costs for your business. In order for our industry to continue its impressive pace of growth and success, damaging measures like Measure 97 must be defeated and defeated soundly. It is time to send a message that massive tax increases on the backs of working Oregonians will not result in a better Oregon. Instead, it creates larger rifts between private sector businesses who churn our state economy and the Oregonians working hard as part of the public sector.

This fight at the ballot box will further sever those relationships so please take the time to educate yourself on the realities of Measure 97 without becoming part of the animosity or ill will that pits Oregonians versus Oregonians.

Please take the time to visit Defeat97.com to learn more about the coalition we are officially a part of and how you can be involved. Let’s stand together against harmful proposals and continue building a stronger Oregon for our children and grandchildren. | Jason Brandt, President & CEO

Help Defeat the $6 Billion Tax on Oregon Sales

As you know, Initiative Petition 28 (IP28) – a proposed new tax on Oregon sales that would cost Oregon consumers and Oregon businesses billions – will be on the November 2016 statewide ballot.

IP28 would impose a huge new $6 billion tax on sales – the largest tax increase in state history – and would increase costs for Oregon businesses, working families and consumers with no guarantee where the money would be spent. If passed, this extreme measure would make our industry less competitive and make lodging and dining out costlier for our Oregon customers.

Defeating IP28 is a priority for the Oregon Restaurant & Lodging Association. We’re asking you to join the Defeat The Tax On Oregon Sales coalition and help spread the word about this costly and damaging proposal.

Some important facts about IP28:

• IP28 would tax sales, not profits. Businesses would be required to pay the new tax whether they have a large profit, small profit, or no profit at all. 

• IP28 does nothing to guarantee the new tax revenues would go to schools, healthcare, or senior services. All of the new taxes would go to the General Fund, giving politicians and bureaucrats a blank check to spend billions of dollars as they please with no accountability to the public. 

• IP28 would impose the worst kind of tax on sales because it would be added at multiple steps in the production process – a “tax on a tax” – cascading into much higher prices for items Oregonians buy every day, without any exemptions. Electricity, fuel, insurance, food and many other items and services we rely on would be subject to the tax – making Oregon products more expensive and Oregon companies less competitive.

• A study by the nonpartisan Oregon Legislative Revenue Office (LRO) concluded that about two-thirds of this tax on sales would end up being paid by Oregon consumers, costing the average Oregon household more than $600 every year.  

• The LRO estimated passage of IP28 would result in the loss of more than 38,000 private sector jobs, impacting Oregon’s overall economy, small businesses and multiple industries.

Here’s where you come in. 

If you haven’t already, please join the coalition. Once you’ve joined, you will receive news and updates about the efforts to defeat IP28 and what you can do to help.

Visit the campaign website, DefeatTheTaxOnOregonSales.com, where you can read news and information about the negative impacts of IP28, and donate to the campaign. 

Also, like the coalition on Facebook and follow them on Twitter to share the word on social media about why IP28 is a bad idea for Oregon.

We need your commitment to help our industry by joining the effort to defeat the most egregious tax increase in Oregon history.

If you would like more information about the campaign to oppose IP28 or want to get involved in other ways, please contact the campaign at info@DefeatTheTaxOnOregonSales.com or (877) 575-9950.

Fighting Lodging Tax Creep

In virtually every corner of the state, local and county governments seem to have their eyes fixed on lodging taxes and opportunities to raise them. The recent successes of the lodging industry are being widely reported as more tourists find themselves drawn to Oregon’s wide ranging spectacles. And we of course welcome them with open arms as growth and sales continue to increase.

However, the success we currently enjoy cannot continue in perpetuity. We have been incredibly fortunate in the prolonged status of the current economic recovery and we realize the next recession is not a matter of if but a matter of when.

This distinction seems to be lost on our local and regional representatives who sometimes view the lodging sector as an easy target for their general fund woes. Why not add an extra percent to the local lodging tax to solve our ‘XYZ’ revenue shortfall? Can’t they just pass the tax on to their guests?

If only it were that simple. As “lodging tax creep” continues throughout the state, we’re finding the need for a renewed commitment to support our local and regional stakeholders who are fighting the urge of local governments to tack on more tax burden on the administrative shoulders of our industry.

For one, we’re already making it very clear that we will be strongly opposed to lodging tax increases moving forward unless there is local support from the lodging community. To that end, we are encouraging local governments to reach out to their local lodging stakeholders as a crucial first step if they feel they have a case for why a local lodging tax rate should be adjusted.

Cost drivers within government are strapping city managers and city councils who are determined to balance their budgets. These significant rises in expenses continue to be driven by pension and healthcare obligations that require more revenue as retirees live longer lives and as healthcare premiums continue to rise.
We fully understand these challenges and openly welcome conversations with local governments that feel the lodging tax is somehow a piece of the answer to these challenges.

Oregon Restaurant & Lodging Association created a “Tourism Best Practices” handout as part of our renewed effort to carefully track lodging tax creep across Oregon. This document is one tool that can be used by lodging operators to help explain the important symbiotic relationship our industry shares with local government partners.

Our success is their success until lodging tax creep gets out of control. I believe we are on the brink of crossing that unsustainable threshold and as a result, we need to be more aggressive in protecting local governments from biting the hand that they rely upon for sustained tourism promotion as well as partial general fund support.

If you are aware of lodging tax creep in your community, please contact us at Advocacy@OregonRLA.org. | Jason Brandt, President & CEO

Realignment, Deeper Engagement on Your Doorstep

Oregon Restaurant & Lodging Association is ramping up an important process to dig deep and implement a rolling strategic plan for the future of the organization. We are now over five years past the merger of the association, which brought lodging and restaurant members under the same umbrella of advocacy and connectivity. Many things have gone well and other areas we are excited to enhance.

As we look to the future, here are some samplings of what you can expect from your association as we further the value proposition for our lodging partners.

The Expansion of Guest Service Gold® Customer Service Training
Over 200 hospitality professionals in Oregon have already been trained through the ORLA Education Foundation’s new training product, Guest Service Gold. The launch has been made possible by the support of the American Hotel & Lodging Educational Institute and Travel Oregon. Contact Wendy Popkin with ORLA’s Education Foundation to learn more about adding a new dose of confidence to our front line hospitality workers who have lasting impressions on the guest experience.

Relaunching the ORLA Lodging Policy Committee
In one of ORLA’s most recent scientific polls of the membership, lodging members expressed that the value of greatest importance is industry representation. Our goals will include statewide industry representation, consistent participation, and establishing a regular meeting schedule to tackle the advocacy issues of importance to members.

Online Travel Companies
In my first five months on the job, it has become clear that more exploration is needed to look at how ORLA can assist our independent lodging members in negotiations with online travel companies who carry significant leverage in their talks with this segment of our membership. Given the supply filled by these elusive partners, what can ORLA do to pool the collective power of independents? The issue needs a deep dive.

Human Trafficking
We will not shy away from uncomfortable issues that impact our industry and the professionals that work within it. We recently held a brainstorming session about the importance of introducing legislation in Oregon that could create rehabilitation services needed specifically for victims of human trafficking to break the cycle of abuse as well as harsher punishments for individuals seeking these services. We remain optimistic that a viable partnership between ORLA, lawmakers, law enforcement, and district attorneys is in the works and that our work will be driven by real outcomes that have the potential to change lives.

These issues and others will continue to be explored as we do our best to expand and enhance our deliverables to the lodging industry. We look forward to working with you to accomplish important goals for our future. Our work always starts with your feedback.

Feel free to email me with your suggestions at JBrandt@OregonRLA.org. | Jason Brandt, President & CEO

ORLA to Welcome Change in Leadership

Jason Brandt

After a 32 year career in association management, and a terrific experience it has been by the way, I will be retiring in October. The decision to do so was made after a great deal of thought as I truly enjoy my job. It is an honor to represent ORLA’s members as I very much admire their passion for the industry, the jobs that they produce and the communities that they positively affect every day. Working to protect their rights, represent their positions on issues, provide them with needed information and educate their workforces made every work day something I looked forward to with enthusiasm. That is a gift that many don’t receive in life and one I value greatly.

However, there does come a time when you know it is time to move on to another chapter in your life. That time arrived for me last year. I came to grips with the fact that the energy level I’d always tapped to meet all my work obligations was much lower that it had been. I finally decided, or more truthfully knew, that it was time for ORLA to have a new CEO to lead the association in the challenging and changing times ahead.

So, working with ORLA’s Executive Committee, we developed a succession plan last summer. That plan laid out the search process, the type of person the board wanted to replace me with, and a timeframe for getting all of this done and the replacement hired. The search began in September of last year and culminated in the selection and hiring of my replacement in February of this year. A contract has been signed and your new CEO will start his new career on August 10, 2015.

Your new leader will be Jason Brandt who is currently the CEO of the Salem Area Chamber of Commerce. Jason has worked for the Salem Chamber the past 11 years beginning immediately after graduating from Pacific Lutheran University. Jason grew up in Salem and lives there now with his wife Natalie and their two daughters. He has served as CEO of the Salem Chamber for over four years and is a leader in the chamber world in Oregon and the Western region of the country. He brings with him a thorough understanding of association management principles and law, nearly five years of association management experience, experience in the government affairs arena both at the state and local level, and an enthusiastic, people-oriented can-do attitude that will mean great things for Oregon’s hospitality industry.

I’ll be working with Jason getting him familiarized with all things ORLA through September. You might watch for us as I’m sure we’ll be traveling about the state introducing Jason to ORLA’s thousands of members (see ORLA Convention). Serving as CEO of the association is a demanding job and Jason’s skill set will serve him in good stead as he moves into his new position.

I can’t tell you what a joy and honor it has been to be allowed to lead the association. I know what a great job the ORLA team does every day representing your interests. The ever-changing, challenging times the industry has been through have certainly left you with an experienced team of professionals who know how to produce results. That will serve you and Jason with excellence in the years to come. You’re sure to see new ideas, innovative solutions and a fresh, new look at industry challenges from Jason – all good things that are healthy for ORLA. If you’re not already a member, please consider joining ORLA and supporting what will be another great era in ORLA’s long and distinguished history of representing the industry’s interests. Jason and your business need and deserve that support and participation. | Steve McCoid, President & CEO

Advocating on Behalf of Oregon's Hospitality Industry

Oregon State Capitol

Oregon Restaurant & Lodging Association’s (ORLA) stripped down mission statement to “advocate, communicate and educate Oregon’s hospitality industry” has been discussed frequently in this publication. These three words are the reason ORLA exists, however, there is nothing like real world examples of how ORLA is meeting these goals to illustrate the point. I’ll give you some examples below.

We’re certainly in the midst of providing advocacy for you by representing the industry at the 78th Oregon Legislative Session, which began in February 2015. Your association is tracking over 300 bills that could affect your business. The most visible are statewide paid sick leave, a variety of proposals increasing the minimum wage between $12 and $15 an hour, a bill that requires work schedules be written two weeks out for foodservice operations with a penalty for any subsequent changes, and a cancellation of the ban on local governments passing their own minimum wages. ORLA’s lobbyist, Bill Perry, is at the Capitol daily representing your interests to the legislators and working to ensure all damaging legislation is not passed.

ORLA held its bi-annual Taste Oregon Legislative reception on February 17th, drawing over 225 industry members in attendance including a significant number of legislators and their staffers. Here, we’re talking about advocacy in terms of interacting with legislators, and communication by informing our members of the issues being dealt with in Salem. 

ORLA’s Education Foundation helps meet the educational mission by producing the annual OregonProStart High School Culinary Championships. This year’s event was held at Spirit Mountain Casino in Grand Ronde. There were 20 teams competing in an event that requires teams of four to plan and cook a 3-course meal in one hour using two gas burners while properly handling and prepping the food. The winning team from South Salem High School will compete in the National ProStart Invitational in Anaheim representing Oregon.

Finally, we are in the midst of preparing for and planning the annual Northwest Foodservice Show with our partners at the Washington Restaurant Association. The largest foodservice show in the Northwest, this typically draws over 5,000 and will be held in Portland this year at the Convention Center, April 26-27. We’re anticipating 400 booths featuring the latest in products and services plus a full agenda of educational seminars, new product listings and chef presentations. 

That’s just a sampling of the work and services ORLA delivered to the industry in the first quarter of 2015. For those who haven’t become ORLA members yet, please consider joining. All it takes is a call or email to get a helpful representative to review all the programs membership provides. We look forward to working with you as we support our great industry. | Steve McCoid, President & CEO,

Oregon Restaurant & Lodging Association

ORLA Keeps You Up to Date on Emerging Issues

Ebola, marijuana, data security. These are all current topics that we’ve seen in the news, deal with in our businesses, and that represent challenges to anyone managing a lodging property. Some of these are new, some are issues you might think you’d never deal with, and some are issues that you’ve dealt with that keep changing due to on-going improvements in technology. In all cases, they are matters that you need to know about and know how to deal with if they arrive at your place of business. Our December issue of Lodging News addresses each of these topics for you.

You’re busy running your business on a daily basis. You don’t have the time to keep up with these and the many other issues that crop up daily and monthly to affect your profitability. That is a major reason ORLA exists. We are here to communicate these types of issues to you through communication vehicles like our two magazines, e-newsletters, special e-bulletins and our website.

ORLA provides you a one-stop, go-to organization that you can utilize to stay up to date on these emerging issues. Oh, and by the way, we also advocate for reasonable, manageable solutions at the state and local levels to the policy makers who react to the onset of these challenges with new laws, ordinances and regulations.

You need to be up to date. You need to be responsive. You need to be aware of new and emerging issues. You need to be able to answer questions raised by your customers. You can attempt to find the answers on your own, or you can support ORLA and have that one-stop place to get your questions answered accurately and in a timely manner. Give us a try. I guarantee you’ll like the results and make your business lives just a little bit easier and less stressful while doing so. | Steve McCoid, ORLA President & CEO

Supporting ORLA Ensures Your Industry’s Vitality

Members networking at Convention

ORLA is a membership organization and, thus, it is important for its long term viability and fiscal health that it maintains a large, growing, supportive membership. Over the years the association has used all types of sales approaches in its efforts to convince industry operators that they needed to part with a small portion of their hard earned dollars to support its activities. At times we leaned on our very successful suite of endorsed services and the savings they provided members the key reason for joining. Certainly, in terms of a return this made sense to the thousands of operators who joined for that reason. However, this approach created a purely financial relationship that didn’t last if a program’s returns didn’t meet a member’s expectations, leading to a constant turnover in members.

That has led to ORLA changing its sales message to one focusing on the mission of the association as the key reason for joining. That mission, one that calls for ORLA to advocate for, communicate to, and educate its members, is one that when used as the reason for joining produces long term, loyal members who understand and support what ORLA is there to do for them. For your association is the only organization in the state existing to provide those services to your business.

We advocate by representing your interests before the state and federal legislatures and local city councils and county commissions on all issues affecting your business. In other words we lobby for you on a daily basis and are recognized as a leading business association in this arena. One of the largest business political action committees in the state is also managed by ORLA to increase your political profile. We also proactively promote all the good the industry and your business does for Oregon to the state’s media. We serve as your spokesperson.

We communicate to you the information you need to have to successfully operate a business. Those communications can be an explanation of a new regulation or statute that applies to you and your business. It can be providing information on a new program, new technology, industry news or best practices in management. We communicate to the industry through two print magazines, a great website, two e-newsletters, as-needed government affairs e-alerts, and lottery newsletters and confidential bulletins.

We educate management and their employees by providing cutting edge online training programs in food handling and alcohol serving; classroom management-level food safety training; an annual regional trade show and annual convention; and all the information listed in the communications above.

No other organization provides all of these services to you because protecting and representing your interests is our sole reason for existing. We know that meeting that mission creates a better operating environment for your business, thus enabling you to be more profitable.

Membership also benefits those associates that sell goods and services to the industry. It is in their best interest to support ORLA too as the ability for their customers to turn a profit and grow their businesses means that their business will in turn sell more goods or services. It behooves all industry members – retail and associate - to support the only association representing their interests in Oregon by becoming a member; for what is good for the retailer is good for the associate and what is good for the associate is good for the retailer. We’re one industry and we’re in this together. If you’re not a member, consider our mission, this message, and support your association. It truly is a low cost investment in your business that will produce large returns. | Steve McCoid, President & CEO, ORLA

Participation is Needed to Help Protect Your Business

Oregon restaurant owners visit Rep. Greg Walden in D.C.

The past three months proved to be some of the most informative and rewarding times of my life. Despite the warnings of my friends, neighbors and fellow association managers, I ran for the position of City Councilman in Ward 4 in my home town of Salem. This position is a non-paid, part-time job with a four year term serving approximately 20,000 residents of the ward located in far south Salem. The election was decided last week in the primary election and I’m proud to say I won by just less than seven percent. As has been often said, watch what you’ve asked for and that is certainly appropriate now that I’ll be taking office in January 2015.

During the campaign I did on a small scale what I’ve watched state legislative candidates do for the past 31 years. I raised money, walked and knocked on doors introducing myself, participated in phone bank calling, appeared at six or seven public forums with my opponent, put up signs, appeared before a variety of groups seeking their endorsement, and got to meet many people living in the neighborhoods near me in south Salem. The rewarding part is that all the work resulted in a win making it worthwhile and productive personally and for everyone involved in the campaign.

The informative piece had to do with several things. I was saddened by the number of citizens who aren’t even registered to vote – roughly 50 percent of the ward. It bothers and intrigues me that people feel that it isn’t worth their time to even deal with elections, politics and issues. They’ve given up on the system and don’t care to participate. I also learned that most people are really very nice. I personally knocked on over 3,000 doors and only experienced four really rude receptions. Not a bad percentage there.

Even more troubling to me was the fact that only 40 percent of the registered voters in Ward 4 bothered to vote in the primary election, and that was high by far in Salem. Citywide, only 30 percent of the people voted. That means that 20 percent of the potential Ward 4 voters decided this election and we were a high water mark. In two of the other wards it was 10 percent of the voters making decisions! 80 percent of the people didn’t have enough belief in the system to participate. And with vote-by-mail it is even easier to do so in Oregon than most states. That lack of participation is a real problem for our society and one that needs to be solved if the state and nation is going to continue to move forward.

ORLA deals with the same types of participation levels when you look at our membership penetration rates. We currently have 30 pecent of the hospitality industry supporting our efforts, which benefit the entire industry. Part of ORLA’s mission is to represent the business interests in the political and public worlds of the hospitality industry in Oregon. Just like Ward 4, we have industry members with varying business and political philosophies when it comes to developing a position on issues that directly impact our industry. These issues include paid sick leave, the Affordable Care Act, lodging taxes and minimum wage increases. Right now the active 30 percent are deciding the industry’s position. ORLA needs the majority of the industry involved and supportive to truly be effective for the industry. Participating and supporting the efforts of the team of professionals representing you is a small investment in the well-being of your business. I invite you to be a part of the process and join ORLA to ensure your voice is heard and your business is protected. | Steve McCoid, President & CEO, ORLA

Minimum Wage Debate Directs Focus Away from Job Creation and Growth

The Oregonian recently published an editorial on minimum wage summing up with, “So maybe it would be good if the minimum wage debate brings more attention to Oregon. What policy-makers would see is if they want to make real progress on reducing poverty, restoring the middle class and energizing the economy, the minimum wage is little more than a political diversion.”

While there is a lot of rhetoric on both sides of the minimum wage debate, raising the minimum wage actually gives little buying power. It creates a reduction in hours among lower skilled workers, and the products and services they use increase in cost. And, Oregon remains above the national average in unemployment.

The Oregonian editorial also stated, “It’s equally hard to argue that the minimum wage has made much of a dent in poverty. And it clearly hasn’t done much to boost the state’s per capita or median household incomes, both of which lag the nation.”

The insight of The Oregonian that “the minimum wage is little more than a political diversion” is a longstanding tactic of the unions. Before the 1996 minimum wage increase was on the ballot, the Oregon AFL-CIO put out a request for proposal on August 7, 1995 and the reason for the RFP stated, “In order to combat this hostile electoral and legislative climate, our campaign will … force our opponents to expend significant resources fighting labor-backed initiatives that will benefit working people.”

We have clearly seen that the government employees benefit packages have been costing the State billions of dollars – that’s billions with a B – in unfunded liabilities, so the unions indeed need a diversion.

If the backers of higher minimum wages wanted to direct help to people living solely on minimum wage, they would address it through the legislative process and try to reach meaningful compromise. There are provisions in the Federal Fair Labor Standards Act, and in 40-some states that would help businesses manage their hours as it relates to tipped employees and minors entering the work force.

Most people listed as minimum wage workers in Oregon are either tipped employees making and reporting over $20 an hour in combined income, or minors who live with their parents and are gaining much-needed work experience. In Oregon we have one of the highest unemployment rates in the country, and the unemployment rate for minors is even higher.

But the unions’ outrageous benefit packages and threats of strikes are creating problems in schools and local economies, and the public is becoming frustrated with the escalating costs. So when the unions need a political diversion, minimum wage is their old go-to topic.

It creates management concerns with payroll, employee hours and price increases, but the public stops talking about the real issues. Organized labor has not been able to deal with private sector issues, so union growth has primarily been in the government sector. Unions and policymakers that spend time on minimum wage are continuing down a path of lost focus and lost hours.

If the unions concentrated on matters that grew the economy, all citizens would benefit. Minimum wage workers do not join unions; they are primarily young, inexperienced individuals just entering the workforce. Income growth will come from manufacturing jobs and higher-skilled workers, and those people are the ones that join unions. We all need to focus on job creation and income growth, and not merely the same old “political diversion.” | Bill Perry, VP of Government Affairs, ORLA

Renewed National Partnership

ORLA is once again a partner with the American Hotel & Lodging Association (AH&LA) effective with the start of the New Year. The board and staff are enthusiastic with the changes being made in AH&LA’s mission, staff and approach to representing the industry. The AH&LA Board heard the concerns from many state associations regarding the collection and payment of dues at the state level and acted upon them in a very proactive manner that is to their credit. They all bode well for a stronger, more effective and focused national trade association to represent your interests.

ORLA had ended its partner state agreement with AH&LA two years ago after a great deal of review and discussion. At that time, the agreement created issues and limited membership sales for your association. Oregon was not the only state to raise these concerns. At the time we ended our partner state agreement, nearly one third of the state associations weren’t working with their national association. Clearly something had to be done.

AH&LA’s leadership recognized the need for change to ensure the association’s continued relevance in Washington DC and across the nation and to position the association for long-term success and survival. The board commissioned an industry-wide survey of the 575 key stakeholders in the industry to discover what the membership, state associations, members and staff of AH&LA wanted their national association to provide the industry in way of programs and services. They took those findings, developed committees consisting of all the stakeholders mentioned above, and started the planning process. New funding strategies and by-laws were the result as well as a more focused mission statement and strategic plan. Advocacy and communications to members and the public were the main focus. State associations will no longer be required to collect and forward dues to AH&LA unless they choose to do so with payment for their efforts and the national dues were lowered. State associations will now pay dues at a much lower level to be a partner state with AH&LA.

Since the AH&LA membership approved all of these changes a great deal has happened. Katherine Lugar was hired as the President & CEO and charged with implementing the many changes the new plan called for, which she has done at a thorough and rapid pace. The Government Affairs team has been turned over, the quality and amount of communications coming from the national office is greatly improved and the budget is much higher with the new funding program. In short, Katherine and her staff have done a terrific job of implementing a very demanding plan that has restructured and positioned AH&LA for the future.

What this means for ORLA members is better representation in DC, improved information on national issues being available to you, and lower dues to be an ORLA member (by 40 percent). By the way, we opted to continue to sell AH&LA memberships to the independent lodging operators who choose to be AH&LA members at the rate of $2 per room. It isn’t required to join ORLA but certainly is an option that we strongly urge you to consider and support.

The board and staff of ORLA are very excited about the new AH&LA and what it means for the industry. It is refreshing to work with an organization who listened to the concerns of the states and other stakeholders, found out what they wanted and then developed a plan to deliver that in a very timely manner. We’re proud to be a partner with that team and look forward to working with them to provide you with seamless coverage of your needs at the state and national levels. | Steve McCoid, president & CEO, ORLA

Your Association’s New Year’s Resolutions

Happy New Year! Now that we’ve survived the holiday season of 60+ football bowl games, putting up and taking down the Christmas decorations, and attempting to watch what we eat and drink (for me unsuccessfully as usual) it is time for making New Year’s resolutions. I’m a believer in making these and every once in awhile a resolution has actually been made and followed by yours truly.

For instance, my 1986 resolution was to quit smoking and January 1, 2014 marks 28 years of non-smoking – a good thing. I must confess that there are the annual resolutions of losing weight (and keeping it off) and eating healthier that are not religiously kept. However, I’m making them again in 2014 as only a stubborn Irishman can do. One has to set goals to succeed, right?


With that thought in mind, I’m going to share ORLA’s New Year’s resolutions for 2014 with you. These are the best kind of resolutions because they are made by someone else (ORLA’s staff) so you aren’t faced with meeting them yourselves but you will be the beneficiary if ORLA’s staff keeps them. Doing so will benefit the industry and your business. So, with this win/win proposition in mind, here are your association’s 2014 resolutions:

•    ORLA resolves to continue to operate the preeminent government affairs program in Oregon for the benefit of the industry and ORLA’s members. This includes an on-going role as one of the general business lobby’s leaders in Salem.

•    ORLA resolves to be the information source for the industry whenever an issue, question or problem needs to be addressed and/or answered with current and specific information.

•    ORLA resolves to continue to be a leader in the promotion of the industry, and all the wonderful benefits it provides our state, to Oregon’s public and private interests and the state’s print and electronic media.

•    ORLA resolves to continue to be the leader in providing mandated training to the industry. Constantly updating and improving our pioneering online training products is a must to keep our members’ employees properly trained and informed.

•    ORLA resolves to continue to fund and operate one of Oregon’s largest business political action committees to support the campaigns of pro-industry candidates to the Oregon House of Representatives and Senate. Doing so will ensure that the hospitality industry’s stature and voice are recognized and heard in Oregon’s political arena.

•    ORLA resolves to continually ask our members and the hospitality industry what they want their association to do for them, and to act on those requests in an expeditious manner.

•    Finally, and most importantly, ORLA resolves to never forget that we exist to represent, advocate for, inform and educate our members and industry. This is our mission and one we take very seriously.

As you can see, we have a great deal to do in the coming year. All of our resolutions are based on what our members have told us they want their association to do for them. You have a staff of association professionals dedicated to making your industry a better, more profitable one to work in. We welcome you to join us in representing our great industry.

In fact, I would suggest that you make a resolution to join ORLA, if you aren't a member already, in 2014 and become part of the only trade association in Oregon that represents and promotes your business’s welfare. Team up with ORLA’s dedicated staff of professionals this year. Doing so will be one of the best, and least expensive, business decisions you can make in the coming year.

Steve McCoid
President & CEO, Oregon Restaurant & Lodging Association

Immigration reform continues to be an important topic for the hospitality industry.

As one of the largest trade associations in Oregon, Oregon Restaurant & Lodging Association (ORLA) has a vested interest in all things generating business for the industry. Bill Perry, vice president of Government Affairs, and ORLA member Gus Castaneda, general manager of The Mark Spencer Hotel, recently attended a roundtable discussion on “Business Imperatives for Immigration Reform” in Portland. The Hon. Francisco J. Sánchez, undersecretary of commerce for International Trade - U.S. Department of Commerce was the featured speaker for the program.

Although it was a small group of only 35 business people, discussions were productive and focused on immigration issues around growing the economy. Specifically, topics covered: how to make it easier for tourists in far eastern countries like China and India to get travel visas, professional or skilled visas, and the importance of overall immigration reform. The forum was sponsored by the White House, Portland Business Alliance and the Hispanic Chamber.

If you weren’t already aware, ORLA serves as co-chair of the Coalition for a Working Oregon (CWO), an organization created with the goal of advocating for comprehensive immigration reform. With 22 member organizations, CWO represents the first consolidated effort by Oregon employers to create support for a measured and sensible approach to comprehensive immigration reform at the federal level. Visit the Coalition’s website for more information or to get involved.