Longtime leader Tom McCabe will be paid $1.25 million and given a year's worth of health-care coverage as part of his severance agreement with the Building Industry Association of Washington.
The Olympian obtained a copy of the Agreement. It shows McCabe and BIAW executive board members signed the deal on Thursday, Dec. 9. It also says McCabe voluntarily resigns as executive vice president, is paid $1.25 million by Dec. 10 and will be entitled to health-insurance coverage through December 2011 as well as deferred compensation already owed under existing plans.
Other staffers also are eligible for severance pay, according to the agreement.
Requests for comment last week went unanswered by BIAW president Matthew Clarkston of Camas, McCabe, and BIAW spokeswoman Erin Shannon.
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McCabe's departure at year's end leaves a huge hole at BIAW and appears to be the result of a power struggle within the trade organization over its direction – including a fight with members of the local affiliate, Master Builders Association of King-Snohomish Counties.
The BIAW under McCabe was a big force in supporting Dino Rossi's two unsuccessful gubernatorial campaigns, Supreme Court races, a successful initiative to repeal ergonomics rules, and this year’s failed initiative to let private firms compete with the state for workers compensation coverage.
The Times had this story earlier in the year on the BIAW’s shifting fortunes.
The news comes as a major BIAW rival, the Washington State Labor Council, has picked new leaders.
According to the nine-page settlement agreement, BIAW is indemnifying McCabe against any past, present or future litigation against BIAW, its Members Services Corp., its Washington Builders Benefit Trust or McCabe in his role with those organizations.
Nine staffers – including lobbyists – also are given severance pay of up to one month’s base salary for every three years of service, up to $250,000 total for the group, if they leave by June 30. The staffers include: Brian Minnich, Jan Rohila, Erin Shannon, Jodi Slavik, Amy Brackenberry, Tom Kwieciak, Kim Bresaw, Darla Smith, and Gerrit Shulman.
The contract also has a non-disparagement clause. That means the BIAW and McCabe are prohibited from bad-mouthing each other – a bit of a change in tone perhaps.
Updated to restore missing paragraphs.