Rigging Contract Rules In Illinois
From the Wall Street Journal
The state reform story of the year is in Illinois, where new Governor Bruce Rauner is trying to fix the broken fisc. To appreciate what he’s up against, consider how the American Federation of State, County and Municipal Employees (AFSCME) is rigging contract negotiations.
The union’s contract with the state expires June 30. Democrats in the state legislature have passed a bill stipulating that if Mr. Rauner and the union can’t agree on a new contract after 60 days, the negotiations would go to binding arbitration. In what is the definition of political cynicism, the bill would change the rules for four years only, expiring along with Mr. Rauner’s term. The assumption is that a Democratic successor would give the union whatever it wants.
Unions and employers are expected to bargain in good faith. Management has incentive to find a middle ground with employees to avoid a strike, and employees have an interest in continuing employment without the potential salary interruptions that can come with a standoff.
But according to AFSCME Illinois, the elected Governor must be boxed in with the threat of an arbitrator making the final contract decision. The union can’t abide that Mr. Rauner has proposed such shocking ideas as creating a 40-hour work week (overtime currently begins after 37.5 hours), freezing wages and raising health-insurance premiums for state workers.
Since 2000, Illinois public employees have seen their compensation grow handsomely. According to the Illinois Policy Institute, state workers won 27 pay raises in the decade before 2014. Between 2000 and 2013 average public employee compensation (adjusted for inflation) grew 32% to $82,314 from $62,423. Inflation-adjusted private compensation for the same period grew 14% to $65,064 from $57,086.
AFSCME knows that binding arbitration can tip the scales in its favor. The arrangement encourages unions to inflate their demands because if arbitration gives them half of their ask, they still come out ahead. The system also forces government to accept terms dictated by arbitrators who aren’t accountable to taxpayers.
Read more in our daily News Update...
From the Wall Street Journal
The state reform story of the year is in Illinois, where new Governor Bruce Rauner is trying to fix the broken fisc. To appreciate what he’s up against, consider how the American Federation of State, County and Municipal Employees (AFSCME) is rigging contract negotiations.
The union’s contract with the state expires June 30. Democrats in the state legislature have passed a bill stipulating that if Mr. Rauner and the union can’t agree on a new contract after 60 days, the negotiations would go to binding arbitration. In what is the definition of political cynicism, the bill would change the rules for four years only, expiring along with Mr. Rauner’s term. The assumption is that a Democratic successor would give the union whatever it wants.
Unions and employers are expected to bargain in good faith. Management has incentive to find a middle ground with employees to avoid a strike, and employees have an interest in continuing employment without the potential salary interruptions that can come with a standoff.
But according to AFSCME Illinois, the elected Governor must be boxed in with the threat of an arbitrator making the final contract decision. The union can’t abide that Mr. Rauner has proposed such shocking ideas as creating a 40-hour work week (overtime currently begins after 37.5 hours), freezing wages and raising health-insurance premiums for state workers.
Since 2000, Illinois public employees have seen their compensation grow handsomely. According to the Illinois Policy Institute, state workers won 27 pay raises in the decade before 2014. Between 2000 and 2013 average public employee compensation (adjusted for inflation) grew 32% to $82,314 from $62,423. Inflation-adjusted private compensation for the same period grew 14% to $65,064 from $57,086.
AFSCME knows that binding arbitration can tip the scales in its favor. The arrangement encourages unions to inflate their demands because if arbitration gives them half of their ask, they still come out ahead. The system also forces government to accept terms dictated by arbitrators who aren’t accountable to taxpayers.
Read more in our daily News Update...