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February 18, 2011
Labor Union Madness in Wisconsin: Coming to a Legislature Near You?
I don't have much time, but this situation in Wisconsin is too much to ignore. The state is broke and labor unions are the big part of the problem. The story, in brief is this:
Union protesters and Democrat lawmakers will attempt to prevent for a second day a vote in the Wisconsin Senate that would increase public employees' contributions to retirement and health benefits and strip unions of the power to bargain for higher salaries.

The grassroots political operation of President Obama, who on Wednesday denounced the austerity legislation as an "attack on unions," has swung in behind the government workers. Organizing for America, the activist organizing wing of the Democratic National Committee is helping keep the pressure on Republican lawmakers who plan to pass the legislation today.Members of the Service Employees International Union, the most influential union in national Democratic circles, have also joined the fray in support of the government workers. The SEIU is helping man an around-the-clock occupation of the central halls of the state capital.
SEIU, of course, is the labor union that spawned ACORN, which is as near a criminal organization as I can tell
And instead of demanding civility from the union thugs, Obama is egging them on.
Instead of doing their duty, Democrat lawmakers have fled so as to prevent a quorum, which prevents a vote on a bill designed to reign in the excesses of public sector labor unions.
The measure would increase the contributions of public employees to their own retirement and medical benefits. The plan, put forward by new Gov. Scott Walker, R-Wisc., would have public workers make equal contributions to their retirement funds (teachers currently contribute $1 for every $56.94 from the state) and increase workers' share of health insurance premiums to 12.6 percent. Teachers in most districts currently pay less than 5 percent of their insurance costs. The national average for workers is 27 percent.While the increased contributions are a sore spot, the greatest anger among demonstrators is over the portion of the bill that would strip public workers of the right to bargain for higher wages, benefits and changes to job duties. Pay raises for public workers would be subject to voter approval. Under the law, the state would also stop withholding union dues from government paychecks and make due payments strictly voluntary.
I see little reason for public sector labor unions in the first place. They certainly should not have collective bargaining power, or the ability to require dues from workers.
Sure, if it was 1911 I'd not only be a big fan or labor unions, I'd be an organizer myself. You don't have to believe everything Upton Sinclair said about how terrible the situation was in factories to believe that workers needed unions to protect them. Labor unions have a history to be proud of, because they were once needed. And even today, I'm ok with labor unions for coal miners and the like. But for the most part unions have outlived their usefulness, and cause more harm than good.
Although they are not allowed by law to strike, it appears that many of them are doing just that with a mass campaign to "call in sick." Many teachers are protesting the proposed legislation "by taking sick days in massive numbers, shutting down schools across the state."
The obligatory comparison of a Republican to Hitler:

A few thoughts by writers I like. Rich Lowry, editor of National Review, quoting an email he received from a reader:
1)"What Walker is doing isn't unprecedented--18 states deny collective bargaining rights to some classes of public workers, or allow municipalities to do so. Virginia and North Carolina have outright bans on public sector collective bargaining. And nearly every state has some sort of restrictions on the scope of collective bargaining- for example, in New York, pension benefits are an excluded subject from collective bargaining."2) "Boosting pensions is an especially attractive way for unions to increase members' overall compensation because pensions are commitments that come home to roost far in the future, when the politicians negotiating them will no longer be in office. Getting wage raises is harder because the must be factored into budgets immediately. So, reducing collective bargaining to wages only is a big deal."
Coming to a legislature near you?

Victor Davis Hanson, on the union thuggery in Wisconsin and Obama's hypocrisy on the issue of "civility":
When President Obama called for a new civility, I was somewhat confused. In 2004-7, the uncivil demagoguery of the Left damaged Bush; immediately after Obama's call for civility, someone wrote an "I hate Joe Lieberman" column; now, Governor Walker-Nazi signs have appeared in Madison. Given that the country polls center-right, the hysterical style is something that the modern Left uses to counteract public opinion; Obama has condemned a methodology that is predominately embraced by his own hard-core base. (Indeed, swarming someone's private home, or using terms like "enemy" and "punish," are not unknown to either the younger or older Obama.) The result is the hypocrisy of condemning the incivility that will only become more useful to the Left as the election nears.

More from Hanson's post:
At some point, Obama will have to see what Gov. Jerry Brown here in California has already realized: Out-of-whack public-employee compensation and pensions drain the treasury and preclude grandiose green projects and other dubious liberal programs. To put it rather crassly, the liberal calculus often works out as mostly older white guys wanting their unsustainable pension and benefit payouts while the "other" and the more needy are shorted from receiving proper public attention. Since the states cannot print money and often lose population to other states when they raise taxes, the reality is that the well-off are enjoying perks that younger and private-sector workers lack while social services and the green visions of an Al Gore or a 2008 Obama are defunded.
Of course, the teachers are recruiting their students to go and protest at the state capital. Think they'll face any discipline? Of course not.
On Valentine's Day, over 100 students in tiny Stoughton, Wis., marched out of their classrooms and into the unseasonably warm air. They had decided to protest Wisconsin governor Scott Walker's new bill to require higher pension and health-care contributions from state and local government employees.As a student "union" leader barked into a megaphone in the background, one high-school junior expressed his concern for his teachers. "A lot of my teachers have been really concerned about this -- they don't know if they're going to have jobs next year or not," he worried.
Two days later, schools in Madison canceled classes so teachers could join 20,000 people in picketing the capitol building. A 700-student entourage from Madison East High School, urged on by their teachers, marched the three miles from their school to the capitol. Wisconsin's MacIver Institute, armed with a video camera, asked one of the students what the group was there to protest. "We're trying to stop whatever this dude is doing," he eruditely explained.
This "dude" is trying to fill a $3.6 billion hole in the state's budget by requiring state and local government employees to pay 5.8 percent of their salary towards their pensions (most currently pay nothing), and increasing their share of health-care premiums to 12 percent (double their current share). Governor Walker's plan would also eliminate collective bargaining for almost everything except salary for government employees.
States around the union are finding that the cost curve of generous benefits to unionized workers is simply not sustainable. Politicians, mostly liberal, promised the moon in return for votes and figured they'd be out of office when the bills came due. They are coming due now. The entitlements crunch is hitting us, and it's being played out before our eyes.
We can either cave to the unions and go the route of Europe, whereby we enter the long slow slide of ever slower economic growth with permanent high unemployment, or we can take the hard decisions, break the unions, and put our country back on a sound financial footing. I wish that Governor Walker and the Republicans didn't have to do what they are doing. But they won the election because the people in Wisconsin saw what was happening to their state, and they are trying to make good on their campaign promises. The labor unions are trying to subvert the vote. Let's hope that the governor succeeds, and the unions fail.
Posted by Tom at February 18, 2011 9:30 PM
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Comments
I wasn't going to post this weekend. But, like you, Tom, I felt that I had to write a little something about what's presently transpiring in our Midwest.
So much is at stake!
And I don't mean just money, either.
1. Obama is violating the very principle of federalism by butting into the matters at state level.
2. We are seeing battle lines drawn between those of the government teat and those who have the pay the bill for those on the government teat.
I, for one, am sick and tired of footing the bill as taxpayer for all the perks of government employees (excepting the military). All that footing the bill for all these decades has resulted in is an ever-burgeoning government bureaucracy and thereby creating an elite class of government employees.
Posted by: Always On Watch
at February 19, 2011 11:17 AM
I agree with the general bend of your post, public sector unions are sucking taxpayer dry. My issue is that you have to drum up the tired old conservative assumption that Europe is a stagnant economic mess thanks to social programs, which is accepted as gospel truth:
-----"...go the route of Europe, whereby we enter the long slow slide of ever slower economic growth with permanent high unemployment, or we can take the hard decisions, break the unions, and put our country back on a sound financial footing. "-----
Permanent high unemployment and a long slow slide of slower economic growth? Let's look at actual economic data:
UNEMPLOYMENT RATES (February, 2011)
USA: 9%
Total Euro Area: 10%
Germany: 7.4%
Austria: 5 %
Greece: 14%
- In reality, the entire Euro area has a comparable unemployment rate as the USA. And when you really look a the numbers, the laggards (italy, spain, greece) have rates above 10% and the harder working north (Austria, Belgium Germany) all have unemployment rates LOWER than the USA, and these countries have larger social programs and government spending than the USA, but better employment rates. In these northern countries, your basic assumption (government programs/unions = high unemployment) doesn't hold water, but the south is a poster child for your statement.
TRADE BALANCE 2010 (IMPORTS minus EXPORTS)
USA: -3.3% of GDP (-466 $billion)
Euro area: -0.5 % of GDP (-60 billion)
Germany: +5% of GDP(+171 billion)
Holland: +6% of GDP (+48 $billion)
Greece: -5% (-34 $billion)
In summary, the entire Euro area is very close to having an even trade balance, where they export about as much as they import. As expected, the northern countries are net exporters (their economies export more than they import). The USA imports more than we export, which is why private consumers, and businesses (in addition to the government) must borrow to maintain our lifestyles. Again, it is false to say that the Euro economy is stagnant because of unions and social spending, when the Euro area is more successful in balancing imports with exports.
GDP growth 2010
USA: 2.9%
Euro Area: 1.5%
Germany: 2.6
Greece: -3.3%
While the USA GDP has exceeded the entire Euro area, their population is not growing as much as ours, so our growth must accommodate addition population growth, meaning the per capita benefits of growth in the US don't grow as much as in Europe. Even with the recent Euro crisis, the EU area has comparable unemployment rates, better trade balances, and is not lagging heavily in GDP growth when compared to the USA, contrary to the rhetoric of talk radio. There is a huge split between north and south Europe. The south embodies all the problems you outline: impossibly high union wages and unsustainable spending. But the north is both economically successful, and yet also has strong unions and social spending....
Data source- The Economist:
http://www.economist.com/node/18185792?story_id=18185792
http://www.economist.com/node/18185772?story_id=18185772
Posted by: jason at February 19, 2011 4:56 PM
A few points. The increasing obligations posed by public pensions is an issue, not only for Wisconsin but for a number of states.
That said, it is inapposite to compare states that prohibit collective bargaining for public employees to those that have it. So if you are a state worker in Wisconsin, all the governor has to do is pose a convincing argument as to why these state should workers, who already earn less than their private sector counterparts, should give up rights and benefits.
Check out Ezra Klein's 2.19.11 in the Washington Post for a cogent explanation of Wisconsin's fiscal issues together w/ links.
Wisconsin has a $137 million shortfall for the current fiscal year which ends June 30, 2011.
Governor Walker's tax cuts are not responsible for the current shortfall but they will effect the 2011-2013 budget which is now expected to have a $3.6 billion shortfall.
I can understand easily how public employees might feel that they are expected to give up rights and benefits to pay for the governor's tax cuts.
TLGK
Posted by: The Loop Garoo Kid at February 20, 2011 6:21 PM
Tom: You cite a bit of the history of labor unions above and correctly point out they were intended to right some of the wrongs caused by greedy capitalist owners in the early 20th Century.
But in this case, the "owners" here are the taxpayers of the states. Consider that many of the smaller income taxpayers would LOVE to have the sweet deal the teacher's have with their pensions and health care but are instead being asked to pay for it.
We are not talking about greedy capitalists here exploiting workers but rather greedy unionists exploiting the great mass of middle income taxpayers who not only make less than these overpaid teachers ($89,000 average with benefit costs) but are being asked to pay MORE to keep these fatcats who only work nine months of the year happy.
In the 2010 election, the GOP landslide that swept the nation was especially great in Wisconsin where nearly every statewide office went to the GOP including control of both chambers of the legislature.
How odd is it that these teachers chortle on about "democracy" in their illegal protest and yet they would willingly overturn the decision of the 2010 election to get their way.
What is happening in Wisconsin is nothing more than an attempt at mob rule by a minority who would make the rest of the state's citizens pay to keep the teachers fat and happy.
My prediction is that this affront to common sense and decency will not succeed.
Posted by: Mike's America at February 20, 2011 11:00 PM
No one wants to have any of their pay or benefits cut, but the unions need to realize they have been living off the taxpayers for far to long, and at way too high of a cost. All unions, in all states should be worried. I hope situations like this happen all over the country. It will save us billions of dollars.
DF
Posted by: DF at February 22, 2011 11:25 PM
Snake Hunter Sez,
Doesn't "Collective Bargaining" sound warm and cozy..with gentlemen sitting around the table discussing equitable treatment, for workers?
Well, it's not.
IT'S A DEMAND TABLE, FOR MORE! More pay, more vacation benefits, more in those pension checks, more sick-leave days, and lastly, more union members hopping on the gravy-train.
For The Union Bosses, more rank & file dues money to throw at political campaigns, to achieve more influence in local, state and national elections, and that means..
More Hell..for consumers, and tax-payers. - reb
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Posted by: Ralph E. at March 7, 2011 12:03 AM



