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Guest Column from Associated Industries Chairman of the Board, Tom Trulove
Associated Industries Board Chair shares some good news for challenging times
Healthcare reform. Education. Uncertain economic times. Associated Industries often uses this space to hit you with some pretty serious topics. While it’s important for business owners and executives to stay current, today, these subjects can hardly be categorized as good news. This month, however, we have plenty of good news to share. Associated Industries is due to receive some awards and has made some exciting staffing changes. Some of our employees have reached impressive benchmarks, and the Association has formed some exciting new partnerships. Here are just a few examples:
- On May 11th at the Davenport Hotel, the Association of Washington Businesses (AWB) will present Associated Industries with an AWB Community Service Award to recognize Associated Industries and CEO Jim DeWalt for the successful launch of the Associated Industries Bright Promise Program. The A.I. Bright Promise Program gives scholarships to students who attend or will be attending the Community Colleges of Spokane or Eastern Washington University. Last year 38 recipients received scholarships to provide for ½ of their year’s tuition, and news about the program’s second year kick-off appears later in this newsletter.
- The May edition of Inland Business Catalyst, a business magazine that serves Eastern Washington and North Idaho, has named Associated Industries to its Best Places to Work List. It’s a great list to be on, but the vote of approval the organization received from its employees was just as important as the media recognition. When surveyed, 96 percent of employees gave A.I. a 10, on a scale of 1 to 10 (with 10 being the highest), in work and safety conditions. In addition, 95 percent gave the organization a 10 in terms of supervisory effectiveness, and 92 percent gave it a 10 when it came to pay and benefits.
- To continue to give our members the best possible service, A.I. has created a new position, Membership Development Representative, and has found the ideal person for the position: Marla Fruit. Marla, a Spokane native, comes to the organization after 12 years in the staffing industry. We’re confident she will be a great asset to you, our members.
- The Greater Vancouver (WA) Chamber of Commerce (GVCC) recently announced their new alliance with Associated Employers Trust (AET). Starting June 1st, GVCC’s members can enroll in employee-benefit programs offered through the Trust, including health, dental, life and disability insurance and others.
- Founded in 1952, AET currently serves more than 600 companies and insures thousands. Always striving to improve services, six of our employees – Joyce Anderson, Linda Foster, Linda Helwege, Maureen Smith, Misty Ortiz and Michelle Walczak – recently completed HIPAA (Health Insurance Portability and Accountability Act) Awareness Training, as a part of AET’s third-party administration role in protecting sensitive data. Anderson, Ortiz and Walczak also secured their Washington State Life and Disability License recently, which brings to seven Trust staff members who are licensed as Washington State Life and Disability producers.
- A.I. has participated in Washington State’s Retrospective Rating Program since 1989, returning to Spokane businesses over $25 million for their safe practices and reduced L & I claims. Even in this difficult economic climate, our Retro members’ dedication to safe work practices has paid off. Our preliminary return numbers for the year ending June 30, 2009 are excellent, and as soon as the final figures are verified, we will let you know.
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As you can see, a lot of great things are happening with Associated Industries, and anticipate even more in the future. As an organization, we’ll continue to work to keep our members happy, to treat our employees well, to grow and to thrive. And that’s good news for all involved.
-Tom Trulove, Ph.D. |
Associated Industries Board Chair, Mayor of Cheney, and
Chair, Economics Department Eastern Washington University |
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Considering using an Intern this summer?
It’s getting to be that time of year again when college students are looking for some hands-on workplace experience. Is your company considering utilizing an intern this summer? If so, make sure it’s for the right reasons.
Internships should primarily be offered as a training opportunity for the intern. Some employers concurrently evaluate interns for possible future employment opportunities, where both employer and intern would benefit. The work experience and mentorship enables the intern to evaluate his/her work skills as applied to certain tasks and/or industries. They will often make future employment decisions based on these experiences.
If your company is able to offer this type of training and leadership to one of our local students this summer, this may be an avenue you‘ll wish to pursue. However, there are some precautions.
If you are considering using an intern as a substitute for a regular full-time employee or to augment your existing workforce during specific time periods, you will need to pay them at least minimum wage and overtime compensation, where applicable.
If you are considering an unpaid internship the FLSA regulations are far more rigid. There are six criteria that unpaid internships, must meet to be in compliance with Federal law. Before hiring an intern in 2010, I would highly recommend reviewing Fact Sheet # 71: Internship Programs Under the Fair Labor Standards Act, prior to finalizing any formal offers or company decisions.
For more information, contact Val Fields,
Associated Industries HR Member Representative at
509.326.6885, 800.720.4291 or vfields@aiin.net |

Associated Industries email change from .com to .net
If you’ve received emails recently from one of the A.I. staff, you may have noticed the person’s email has changed. In order to stem the tide of SPAM that continues to flood our email boxes, we have changed our email addresses so that they end in “.net” rather than “.com.” To ensure continued communications during the transition, both email addresses will be operative, but please note the change. We don’t want to miss a single email from our members and community!
For more information, contact Bob Bakie,
Associated Industries CFO at 509.326.6885,
800.720.4291 or bbakie@aiin.net
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 Marla Fruit named A.I. Membership Development Rep |
Marla Fruit has joined A.I. to assume the role of Membership Development Representative, a newly created position for the organization. Fruit comes to A.I. from the staffing industry and has over 12 years experience in business development, multi-level recruiting, client relations and retention and client/candidate negotiations.
“We are very proud to welcome Marla,” said A.I. President/CEO Jim DeWalt. “She brings a broad business background and experience in partnering with organizations located throughout Washington and Idaho, as well as across a spectrum of industries. Her experience offers a well developed level of understanding relative to the interests and concerns of Associated Industries members and local employers, in all sectors. She will be a tremendous asset to our organization.”
“I am delighted to be working with Associated Industries,” says Fruit. “The company has seen some tremendous growth over the last few years – now serving approximately 730 member businesses in both Washington and Idaho. As A.I. continues to expand its reach, I think my background will make it possible to work effectively with both new and old members and the community in general, as well as to identify specific service needs.”
Fruit was born and raised in Spokane and attended Gonzaga Preparatory high school. She earned her BS degree in Psychology from Washington State University and is recognized by several honor societies. |
For more information, contact Marla Fruit,
Associated Industries Membership Development Representative,
at 509.326.6885 or 800.720.4291 or mfruit@aiin.net
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Get the latest compensation information for your
current and future leaders
Every three to four years, Associated Industries conducts a detailed survey of executive compensation. It includes CEO, CFO and all other top executives, with salary, bonus, incentive, and other compensation elements correlated with the annual sales volume of your business.
We have had a few members ask us to conduct the research again in 2010. (Our last A.I. ExecuComp Survey was done in 2008.)
To determine interest, we need your input on whether or not this would be of value to you, and if you would be willing to participate. The cost of the survey results for participants would be $350 for A.I. members.
For more information, contact Bill Sweigert,
Associated Industries Vice President of Training and Development
at 509.777.2658 or 800.720.4291 or bsweigert@aiin.net |

Healthcare information for WA State businesses
Tax Credit Information. The Patient Protection and Affordable Care Act (PPACA) signed into law in March 2010, added a new Small Employer Tax Credit for small businesses and tax-exempt organizations that provide health coverage to their employees. The IRS has issued information on their website explaining how this new tax credit works along with FAQs on the tax credit.
The Health Insurance Partnership Board (HIP). Several of our members have asked where they can learn more about the Health Insurance Partnership Board, of which A.I. Senior V-P Ted Blotsky is a member. The HIP Board meets on a regular basis, and its next meeting is June 1st. Information about the board, enrollment tools, agenda items and links to health-related news are available on the HIP website, or by email to: hcahipbd@hca.wa.gov. |
Learn how to improve electrical safety in the workplace
The National Fire Protection Association (NFPA), an advocate for electrical safety and fire prevention in the workplace, has published NFPA 70E Standards, a handbook that details new OSHA electrical safety and training requirements aimed at preventing arc-flash injuries by requiring special clothing, eye protection and gloves. The new codes and standards will affect A.I. members who have rooms with electrical panels and switchgear. The A.I. Safety Department has the NFPA 70E publication available for loan to our members who wish to review it. For more information, please contact Jim Gurnea, Vice President of Safety, 509.777.2659 or 800.720.4291 or jgurnea@aiin.net.
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| Native American Services Corporation |
Kellogg, ID |
| Accutint of Bellevue |
Bellevue, WA |
| Inland NW Lighthouse |
Spokane, WA |
| Brady Trucking Company Inc. |
Shelton, WA |
| Reidel Roofing Inc. |
Woodinville, WA |
| Soundview Medical Supply |
Seattle, WA |
| Fuse Washington |
Seattle, WA |
| A-Star Distributing |
Spokane, WA |
| Intrinium, Inc. |
Spokane Valley, WA |
| Bellevue Paint & Decorating, Inc. |
Bellevue, WA |
| Direct Buy of Puget Sound |
Lacey, WA |
| Propet, USA. Inc |
Auburn, WA |
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Effective date of the DOT’s new drug and alcohol testing regulations has been delayed to October 1, 2010
Last February, the federal Department of Transportation (DOT) issued proposed new regulations related to its transportation workplace drug and alcohol testing programs designed to comply with new Health and Human Services (HHS) guidelines. 74 Fed. Reg. 5722 (February 4, 2010).
The proposed regulations would require that testing programs include procedures to detect ecstasy and lower detection levels for cocaine and amphetamines. They were to become effective May 1, 2010 to meet HHS requirements. The DOT’s final regulations will not be completed by this date. Thus, the effective date of these changes has been delayed to October 1, 2010. Employers wishing to discuss their concerns about these new regulations should contact our In-house Counsel. |
Presented below is a hypothetical fact pattern based on a compilation of questions related to discipline and termination issues received by Associated Industries’ In-house Counsel.
The information below is not a substitution for competent legal advice, nor does it create an attorney-client relationship between Associated Industries’ In-house Counsel and any readers or recipients of this information. Additionally, this material reflects the current state of the law at the time of development. Where specific legal issues arise, recipients or readers should seek private legal counsel.
THE DILEMMA
Approximately six months ago, ACME Manufacturing hired Jane as a project manager. According to the employee handbook, a copy of which she was provided, Jane’s first three months of employment would be on a probationary status.
Following satisfactory completion of the three-month period, Jane would receive a performance review and be eligible for benefits afforded all full time employees. Included in the employee manual was a detailed description of the employer’s progressive discipline policy, which provided, among other things, that at management’s discretion an employee may be subject to progressive discipline, including a verbal warning, written warning, last chance agreement, and discharge if the employee’s behavior was not corrected.
During her first three months of employment, Jane’s supervisor was not particularly impressed with her performance. Her project reports were often late or incomplete; many of her team members complained behind her back regarding her ill-temper and poor project management style; and she generally did not get along well with ACME’s customers.
Despite these performance issues, Jane’s supervisor did not document these complaints. Instead, the supervisor periodically addressed the issues during informal conversations with Jane. At the conclusion of the probationary period, Jane received a notice that she was eligible for the health and retirement benefits programs, but did not receive a performance review or evaluation.
For the next three months, Jane’s performance was neither substantially better nor worse. Her supervisor continued to receive occasional complaints about Jane’s temper, however, and the morale of her team began to suffer. Finally, after six months of employment, Jane was summoned to the supervisor’s office.
She was presented with a last chance agreement, which outlined various performance deficiencies, and set forth a time line by which Jane’s performance had to improve or her employment would be terminated. Jane was shocked and angered by the agreement since she had never received more than informal counseling in the past. Jane noted that she had not been afforded the progressive discipline process outlined in the manual. She became upset and stormed out of the office.
The employer would now like to revoke the last chance agreement and discharge Jane outright. What should ACME do?
For the answer, Read More.
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Leadership course available for Spanish-speaking employees
Bill Sweigert recently developed a one-day basic Management Leadership Course in Spanish, along with a one-hour presentation on “A Brief Overview: Understanding Mexican Language and Culture for Management Leaders.” Over two days in March, Sweigert presented both programs, in English and Spanish, to over 50 lead-workers, supervisors and management leaders for two large farming and food processing operations in southern Idaho. The program contains six sections:
- Los Riesgos de la Ley – Legal Risks for Supervisor
- No Puede Guiar a Otros si no se puede Guiar a si Mismo –
You Can’t Manage Others Without Self-Management
- Herramientos de Comunicación –
Tools of Communication for Leaders
- Entrevistas de empleo-Lo Básico –
Basic Interviewing and Hiring
- Planear “Goles” y Su Tiempo–
Planning, Setting Work Goals, and Managing your Time
- Obtener Resultados y Elevar Capacidad Del Equipo - Las Tres Competencias –
Get Results and Build the Capacity of the Team -Three Core Skills
For our growing membership in the Columbia Basin, this is a new program that could help you develop your leadership team.
For more information, contact Bill Sweigert,
Associated Industries Vice President, Training and Development
509.777.2658 or 800.720.4291 or bsweigert@aiin.net
Valuable “Effective Lead-Worker” course available – Set your own date!
THIS TWO-PART SERIES is designed for lead workers and others, who have some responsibility for work beyond their own production, but not the full range of authority of a supervisor.
PART ONE: Clarifies the Role of the lead-worker, managing
change, effective communication, managing your time, and setting
goals with your supervisor.
PART TWO: Follows up on the goal setting skills, and provides the
basics on motivating others, performance measurement and
feedback, and provides models for solving problems and employee
on-the-job training.
Investment: Members: $170/Non-Members $280
You can set your own date for this course too!
“Coaching Skills to Solve Workplace Conflict: Transforming the Process for Better Outcomes”
The cost of employee conflicts and complaints skyrockets without a clear, pragmatic and widely-accepted method for dealing with them. Learn how to reinvent a problem-solving process to support your organization’s mission and values related to team-building, how to diagnose the kinds of conflict that are common in most workplaces and their causes, prepare supervisors and lead workers to anticipate and avert conflict and apply good coaching skills to solve it early and while it is still small. A good process can build strong leader-employee relations, and reduce liability and risk. See the success that comes by solving problems as close to the source as possible.
Investment: Members: $85/Non-Members $130
The presenter for these training opportunities is Associated Industries Vice President of Training and Development, Bill Sweigert, SPHR. For more information, contact Bill Sweigert 509.326.6885 or 800.720.4291 or bsweigert@aiin.com. New classes are added often. Watch your inbox and our website for more information on Associated Industries classes. |
Closing the uninsureds’ gap creates one gaping hole in the system
by Ted Blotsky, Senior Vice President,
Employee Benefit Services
It appears as though there are some kinks to work out in the recently passed changes to the health insurance system before they go into effect fully, four years from now.
The reforms are meant to provide health coverage, eventually, to more than 30 million uninsured people. There are three keys to accomplishing this: expanding Medicaid, providing subsidies for buying coverage, and a rule known as the individual mandate, which requires individuals to have health insurance or pay a fine.
As the law is presently written, those who do not have coverage will be required to pay an annual financial penalty of either $695 per person—up to a maximum of $2,085 per family—or 2.5 percent of household income, whichever is greater. These penalties will be phased in from 2014 to 2016.
A “MASS-ive” problem. The framework for this mandate was built using the State of Massachusetts' individual mandate that was included in its state health reform in 2006. There, coverage for an individual might be $2,000 to $3,000 a year, while the penalty was only about $900.
Two of the largest health plans in Massachusetts, Harvard Pilgrim Health Care and Blue Cross and Blue Shield of Massachusetts, noticed some health insurance brokers posting comments on their widely read blog. They suspected that people were applying for health coverage after a medical condition developed, got the care they needed, and then dropped the coverage. The penalty alone was no reason to maintain coverage, because the penalty cost them quite a bit less than the actual coverage.
Studies of concern. Studies were conducted to see if there was a discernible pattern. There was. From April 2008 to March 2009, 40 percent of the individuals who applied to Harvard Pilgrim stayed covered for less than five months. In the same time period, claims were averaging about $2,400 a month per individual, about six times what one would expect.
Blue Cross and Blue Shield of Massachusetts is experiencing similar problems. The company says that in 2009, 936 people signed up for three months or less and incurred claims of more than $1,000 per individual.
Insurers have long recognized this problem, which is why every type of insurance normally restricts people from obtaining coverage after an incident has occurred.
We have four years to address this gap in the system. Perhaps this will be recognized and changed in the National Insurance Reform before 2014. Let’s hope so.
For more information, contact Ted Blotsky,
Associated Industries Senior Vice President
Employee Benefit Services at 509.326.6885,
800.274.5309 or tblotsky@aiin.net
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Associated Industries wouldn’t be the organization it is today without our Board members – past and present. Each month, our newsletter will highlight a Board Member. This month, we introduce Bill Robinson.
How long have you been a Member of A.I.?
Since 1992.
What brought you to the Board?
Mike Murphy (Jim DeWalt’s predecessor) asked me to serve. Jim DeWalt has done wonderful things with A.I. and it has been very exciting for me to play a small part in its success. I am very proud to be a Board Member and a past Board Chair. With the notable exception of myself, the Board is a blue ribbon panel of a cross-section of the professional community. My term on the Board sunsets at the end of next year. There are open Board positions, and I strongly advise CEOs who are members to let Jim know if they are interested in being on the Board.
What do you think is the best benefit of being an A.I. Member?
The broad spectrum of professional expertise at A.I. is a particularly valuable resource to small businesses such as mine.
What sort of work does your company, Robinson Research, perform?
Robinson Research is a full-service marketing research company. We design and execute all types of surveys, focus groups, mock trials, feasibility studies, real-time electronic data collection, product placements, mystery shopper programs, business-to-business research, taste tests, advertising tests and employee surveys. We conduct surveys all over the world (English is the default language of mainframe computer operators), which means that we often keep very nontraditional hours. We do a lot of utility, grocery, health care, financial institution, water/sewer, forest, mainframe computer, transit and non-profit projects.
How long have you been involved in research work?
I started doing executive level one-on-one interviews in 1979, added mystery shopper programs in 1982 and became a full-service operation in 1985. We were the Spokane Office of Market Trends, a Seattle based national research company until I bought our freedom in 1991. We have had as many as 40 employees, but in 2005, we did some “right-sizing,” which was painful at the time, but ultimately proved to be the correct path.
One of my favorite clients is Matt Carroll, a Forestry Professor at WSU Pullman. Over the years, we have performed a string of focus groups around the nation on subjects pertaining to the problems that arise as more and more people build their dream homes adjacent to public forests.
I love helping local businesses determine how they are perceived by their customers and potential customers, relative to their competitors. We use the research to fine tune their image and positioning, hopefully increasing profits.
Clients often assume that I am a “numbers guy,” but actually I am a “words guy.” I work with numbers, but only as a means to the end of writing about them and telling clients what the numbers mean.
Are you a Spokane native?
My parents moved to Spokane from Chewelah when I was four years old. My ancestors on both sides homesteaded the area where Ferry and Okanogan Counties meet the BC, Canada border. I grew up in Dogtown – the area due east of Hillyard, on the “wrong” side of the giant railroad yards. The sheathing lumber on our house had little mountain goat silhouettes, suggesting that our house was built from purloined boxcar lumber. Renowned “proto-hippie” Willie Willey’s last address was directly across the street from my childhood home.
Editor’s note: If you have ever participated in the Lilac Bloomsday Race, you may have met Robinson and not known it. He is the Bloomsday “Turkey Vulture” who roosts on top of Doomsday Hill.
 How did you get involved in Bloomsday? How long ago? And where did the Turkey Vulture idea come from?
When I twelve, I was napping in a bear grass clearing in the mountains east of Chesaw, WA. I was awakened by a moving shadow that turned out to be a huge turkey vulture checking me out. As it left the clearing, it slowly circled, riding thermals instead of flapping its wings. I got to observe it at close range …and it made a big impression on me. It was simultaneously the most macabre, graceful and magnificent creature I had ever seen.
In 1985, for some reason, I started having visions of a huge turkey vulture costume and my dreams were filled with sorting out all the technical details (think “Close Encounters of the Third Kind”). I figured the only way to get past the vision was to just build it. I built the vulture as my costume for Halloween 1986, then stored it in my garage. On Bloomsday 1987, I just decided to take it to Doomsday Hill to entertain the runners and shake its feathers out. I never anticipated the levels of media and community interest.
People often assume that I am sweltering inside the vulture. After a harsh lesson from making a giant praying mantis costume that caused my head to peel, I designed the vulture from the wearer’s “comfort module” outward. I have two electric fans ducting fresh air throughout the costume. The costume is comfortable for five hours of continuous wear through heat, rain, snow, anything but high winds.
Although the Lilac Bloomsday Foundation is a client of Robinson Research, the vulture has no official Bloomsday status. On the first Sunday every May, I am just another street lunatic making a spectacle of myself. |
Associated Industries Bright Promise Program enters year two
In the last few weeks, members of the Associated Industries Bright Promise Program Selection Committee received 49 scholarship applications from Eastern Washington University and 53 scholarship applications from the two Spokane Community Colleges.
On Thursday, April 29th, members of the Selection Committee met to discuss the candidates for the scholarships designed to provide half of a year’s tuition.
Thank you to the following Selection Committee Members who have literally spent hours making some very difficult decisions regarding many very deserving candidates:
- Kris Mikkelsen, CEO, Inland Power & Light Company
- James Desautel, Partner, Desautel Hege Communications
- Jack Kelly, Sales Executive, UnitedHealthcare
- Jan Quintrall, President, Better Business Bureau
- Carrie Abernethy, Wells Fargo Insurance Services
- Kevin Cox, Member of the Firm, LeMaster Daniels
- Mark Kammers, CEO, Enduris
- Holly Poquette, CFO, Inland Northwest Bank
- Kimm Hill, Legislative Assistant to Lisa Brown, Office of Senator Lisa Brown
- Timm Ormsby, Third Legislative District
- Jim DeWalt, President and CEO, Associated Industries
Recipients will be announced in late May, and a reception is scheduled for the scholarship recipients in early October. |
Congress creates lucrative opportunity for small to mid-sized biotechnology companies: An overview of the Qualifying Therapeutic Discovery Project Credit
The Qualifying Therapeutic Discovery Project Credit (“the Credit”) was created by Congress as part of the Patient Protection and Affordable Care Act passed on March 23, 2010. The potential incentive for small to mid-sized biotechnology companies is significant but there are limited funds available and there is a short two year window to take advantage of the incentive on a first come, first serve basis.
Consequently, the time to act is now or you will miss out on this opportunity.
This article will outline the positive and negative aspects of The Credit and why you must begin the process immediately to obtain your piece of the pie.
Net Benefit Examples. Before delving into the details of the Credit, let’s look at two examples of the potential benefit for eligible companies. An important aspect of the Credit is that companies cannot take the same expenses toward the Credit and the Research and Development (R&D) Credit. (The R&D Credit may be utilized for other expenses). These examples illustrate not only the size of the incentive for the Credit, but also how it compares to the R&D Tax Credit.
The final regulations have not yet been released, thus the examples cited are subject to change.
For an overview of the Credit and two examples of the potential benefits, Read More
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Voice your opinions to your legislators
Associated Industries does not endorse any political candidate or point of view. However, we do want to let you know when there are opportunities to speak with your elected officials and how to find out more about what’s going on in Olympia and beyond. As we receive information from our elected officials, we will make every effort to pass that information on to you.
REP. KEVIN PARKER (R) (6th Leg. District) In Representative Parker’s March 25, 2010 email update, he outlines some of the differences between the House and Senate tax increase proposals. Read the full email here.
REP. JOHN DISCOLL (D) (6th Leg. District) Representative Driscoll news and updates can be found here.
REP. JOE SCHMICK (R) (9th Leg. District) Representative Schmick discusses what he believes has been a misuse of tax payer’s money in the Legislature’s “special” session. Read his full comments here.
SEN. CHRIS MARR (D) (6th Leg. District) Sen. Marr’s latest e-newsletter discusses the passage of Senate Bill 6627 which will provide residents who live in Spokane and work in Idaho a new way to access prescription drugs. Read the e-newsletter here.
REP. TIMM ORMSBY (D) (3rd Leg. District) For news and updates visit Representative Ormsby’s website here.
It's our hope you will take the time to listen and communicate with your representative and give your attention to the issues that affect our region, and our country. It's our privilege and our duty as citizens to share our ideas and voice our opinions on issues that are important to us. |
NON PROFIT & SOCIAL
SERVICE AGENCIES:

Associated Industries and the United Way of Spokane County invite you to discover ways to set your compensation strategy in a changing environment. Learn more about the Non-Profit COMPENSATION SURVEY 2010. |
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Associated Industries
1206 N. Lincoln, Suite 200
Spokane, WA 99201-2559
P: 509.326.6885,
Toll Free: 800.720.4291 |
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