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#2 Wage freeze, it will play the best with folks and isn't as bad as some other stuff.
2) AFSCME should talk about freezing wages for no longer than 18 months, rolling back whatever last year's mandatory raises were (if there were any, I don't know), but should try to avoid furloughs. Keep people working, is my stance. It's better to have 10,000 people take a 5% pay cut than to see those 10,000 suddenly become 9,500.
1) With a guarantee that no essential jobs will be cut (unless of course ALL political appointees are cut first);
2) Until a temporary tax hike is set to expire;
3) If lawmakers agree to sunset all corporate tax expenditures, a.k.a "tax loopholes."
AFSCME should agree to mandatory furloughs:
1) That exclude frontline public safety employees: state troopers, prison guards, DCFS caseworkers, child abuse and elder abuse investigators, etc...
2) That exclude employees at the bottom rung of the economic ladder;
3) That are tiered so that the highest earners take the most furlough days;
4) That place all lawmakers and state constitutional officers in the highest tier under the same terms (none of these crazy calculations that "lawmakers work 365 days a year", etc.)
The real question: why did the state agree to AFSCME's allegedly "extravagant" demands in the first place?
2. See #1. However, IF the politicians in the Illinois General Assembly do what they were elected to do and the need is still there, then and only then should AFSCME review opening the contract to match ANY changes the Illinois General Assembly members make with their own benefits and retirement packages.
Aren't elected individuals suppose to also lead?
I'm a non-union state employee. I have never received a single cost of living raise in 3 years and don't anticipate getting one any time soon. I fully expect my pay to go down after July 1, the only question is by how much.
That being said, "Shared Sacrifice"s ideas make sense to me, perhaps combined with a 5 percent pay cut for everyone. I can handle a 5 percent cut. However, the pay cut our agency faces right now could be WAY more than that.
"temporary" tax hikes, labor should be skeptical of making "temporary" concessions. I would imagine the national AFSCME (I assume there is one) has people working on policies related to
when recession-related labor concessions make sense and when they don't, and under what conditions. I would note that California started out with a certain number of imposed furlough days and I believe now is contemplating more, plus an across the board pay cut.
From my regular middle class taxpayer perspective, I don't care. I simply oppose Quinn's highly regressive tax hike, and I really doubt it would be temporary. I think are underwhelmed legislators and ultra-liberal-leaning governor should figure out a way to fund state government without an income tax increase in the middle of a severe recession with an uncertain endpoint. Service taxes. Sin taxes. Creative accounting. Borrowing. Labor givebacks. I don't care. Just do it.
Q2: If they decide to engage in mid-term bargaining, the wage freeze is the way to go in my opinion. It may save jobs.
Through the huge cuts and gross mismanagement of the past 8 years, frontline state workers were the ones who kept essential services running. They have worked crushing overtime just to cope with the terrible staff shortages in every department. And they have already agreed in recent contracts to pay more for health insurance and more for their pensions while getting very modest pay increases.
Their services are needed more than ever now in the awful recession - providing unemployment benefits, food stamps and medical assistance, protecting at-risk kids, caring for the most vulnerable, ensuring public safety. This is exactly the wrong time to cut vital services or the standard of living of workers who provide them.
AFSCME members who work for state government are Illinois residents, too. They pay the same taxes the rest of us do. It's wrong to ask them to take an unequal burden of fixing the state's fiscal crisis, in the form of pay cuts piled on top of higher taxes.
The current contract is weak as it is back-ended, i.e. low increase now, higher increases later. Many concessions were already given in the current contract. To renegotiate the contract means that the workers will not stay up with inflation.
The total personnel cost has been stated at 3.2 billion; wage freeze, wage/benefit cuts and/or mandatory furloughs will, at maximum, only account for 10% of that amount at best. $320 million is 1/30 of the projected deficit. It isn't going to make much of a dent.
Furloughs are reasonable if they are intended to save jobs. Benefit cuts do not address the real issue, the insane increase in Health Care costs. The problem is not the workers, but the Medical/Insurance industry.
Some of the budget problems are related to the current economic climate, and some of the budget problems are directly attributed to the mismanagement of the state's funds by the previous governor and the current legislators. Their inattention to the economic realities has caused a large potion of the current deficit. What can be done to change their behavior is probably beyond the scope of these questions.
Please realize that the head count of employees has decreased by over 10,000 since the beginning of Blago's governorship. Illinois is one of the lowest in employee per capita in the nation. The state employees are not the cause of this current budget problem.
As a worker and as a citizen, I myself (only only myself here) think opening the contract should be absolutely not. No, no never, ain't gonna happen.
But also think I am not an unreasonable person unwilling to do my share. Raise my taxes, I would pay them. Ask me to volunteer to take furlough days without demanding and leaving me to arrange those hours so not to take too big of a hit on any one check/household budget area, I would volunteer for a share.
As far as the pension 2 tier, I hate to see it, but the state does not need my blessing to do it. Been here long enough to remember it being 1.25 then changed to 1.67 and somebody coming in as a new hiree would still be coming it at 1.5, more than when I came in. I've fought my battles and figure new hirees can and will fight theirs.
A wage freeze? No. My cost are going up, my taxes will have to be going up and believe a unvolunteer wage freeze would screw my household budget in a way I could not control.
As far as lay-offs, I believe that lay-offs will happen even if the union would agree to volunteer furloughs or even to open their contract. I believe that nothing I would do will save some state employees nor cuts in some of our dept. budgets.
I'm a realist and I can not put myself on the line to try to save what is out of my control. Having sat through lay-off meetings last year, I know the pain and sacrafices some of the workers were willing to take to try and save fellow workers, I highly admired that. But in the end for me, the state either has to lay me off or let me keep working and ask nice if I'd like to contribute by taking a volunteer furlough that would not cut off my legs.
We ain't seen nothing yet.
All levels of government including schools have been swimming in the increased property tax valuations and the continuing (until now) sales and income tax increases.
The time has come in Illinois not to raise the bridge over rising expenditures but to lower the river.
#1 -- Should AFSCME help to lower the river by re-opening the contract -- yes
#2 -- What form should lowering expenditures take? I think it should vary local by local based on the condition of the government function in which the employees are active. One of the things not mentioned was management-employee joint analysis of work processes in order to achieve more efficient production without losing effectiveness. Coopertion by both sides needs to be the name of the game
2) If AFSCME agrees to revisit the contract, wage cuts would be nice.
If none of this happens, layoffs should occur. The next contract should be based on what the taxpayers can afford under prudent assumptions. I realize that certain jobs you really can't cut wages much( like computer programs). But, some jobs could take wage cuts.
Every dollar the union memebrs save goes to reducing the number of union employees thathave to be layed off. A wage freeze is in line with the economic problems of the State, how many small buisness are responding to the problem etc. It puts State workers in the same boat.
Henry Bayer wants to sacrifice the least senior state employees to benefit the more senior, and that is not fair.
I would raise taxes to distribute the share of paying for the budget hole to all the citizens. I am opposed to furlogh days, which is just a fancy way of saying pay cut. Forcing State employees to carry the heavy lifting for the State, when the State majority of voters helped place us in this scenerio is not right.
Not Henry Bayer, Ghost, union contract. Lay-offs go according to the letter of the contract. Senority.
1. Extend contract 1 year, no raises this year, push everything back to out years, no layoffs, furloughs or other changes.
2. no layoffs, no furloughs, stay w/current raise schedule, increase pension contribution 1% or 2%.
3. A few furlough days, no other changes.
4. no layoffs, no furloughs, stay w/current raise schedule, increase health care contribution a few %.
5. 2% temporary layoff, lowest seniority goes first, hiring freeze, layoffs 1st choice in a callback, no other changes.
The union will fight a 2-tier system like heck, IMO.
If anything happens, it's likely to be one or a combination of these ideas.
As mentioned before, all this will just make a few % dent in the overall state deficit anyway, but it will let private sector taxpayers blow off a little steam and give politicians cover.
* If the contract is reopened, should AFSCME agree to a wage freeze, wage/benefit cuts and/or mandatory furloughs? None of the listed items should be considered by AFSCME, they should be willing to allow voluntary furlough days to be taken with not conditions attached on when the days could be taken. I know I would voluntarily take furlough days as I'm sure others would.
In addition, no one seems to be suggesting that the union that benefited the most under Rod Blagojevich -- SEIU -- should sacrifice anything. If any union ought to be asked for givebacks it should be SEIU, since they have been at least complacent and, more accurately, a major contributor to the problem.
It's a little like the Democrats now, after 6 years of going along with Rod Blagojevich's unaffordable schemes, suddenly demanding that the Republicans fix the problem for them.
That said, both AFSCME and the Republicans are probably going to have to help fix this mess, whether they like it or not. And, both need to make sure they get something in return. Republicans appear to be focusing redistricting, Medicaid reforms, more rights in the General Assembly and some agreement for a long-term solution to the pension funding problem.
I won't presume to know what AFSCME should ask for, but I would suggest that they make sure the Blagojevich enablers pay through the nose for the Union's help in bailing them out of this -- perhaps some concessions to strengthen their position against encroachment by SEIU, expanded union positions, etc. It's really up to them. They entered into the contract in good faith and are under no obligation to bail out the Blagojevich endorsers now.
This problem, as been said here hundreds of times, is a revenue problem, not a spending problem. State union employees aren't making that much to begin with. Cutting their pay, stealing their pensions and laying them off will only add to the state's problems as unemployment costs escalate. Besides who would be left to do the work? Management? Ha, you're dreaming. As always some people want to penalize the people who do the real work in order to enrich the management class. Just say no, Henry. Don't enable them any more. Don't let them squeeze out another do nothing year. The time is now to raise taxes and pay the state's debts and that includes what they owe their employees.
2)As an AFSCME member, I would like to see the following plan implemented.
a) Scheduled wage increases for the next few years get converted into retirement contributions until we are paying the full share of the retirement contribution. Then, it won't matter if the new employees are in a separate tier since they will pay their own way. The State will still need to make catch-up payments for the past and provide a guaranteed benefit in case the calculated payments aren't enough to cover expenditures.
b) Expanded severance benefits for those laid off. I'd love to prevent layoffs, but I don't see that as a possibility even with a tax increase.
c) Mandatory furlough days for those over a certain income level. Voluntary furlough days for everyone else.
In the grand scheme of things, this won't make a huge immediate impact, but it will help prevent this type of situation in the future. It would also be good PR for the union and provide cover for the GA.
I would be okay with a voluntary freeze for one year, it is more symbolic than anything but it will help the deficit a little and show AFSCME is sympathetic to taxpayers. And the poor Merit comp people can count the years they DIDN'T have a wage freeze on the fingers of one hand.
The pension debt is the biggest lump to deal with, and while a union member and supporter, I believe it is time for a 2-tier system. The reason for it is that generally in the world of work, and not just in public service, we no longer have "lifers" that put in 15, 20, 30 years on a job. That's not the world we live in any more. Nowadays, people change entire careers several times over a lifespan, so new hires might be based on a 10-year work span instead of 30.
For those people, they are not going to see much of a pension for a 5-10-year stint with the state, so it makes sense to give them a "streamlined" benefits package that rewards them differently but adequately, and in a reasonable manner commensurate with their service. If you initiate the second tier for new hires, you can let the old timers age-out of the system gradually and still put the brakes on the growing pension interest debt.
This way the union leadership could say to its members it got something for the workers in exchange for the concessions.
And Quinn would have some leverage to negotiate with Republicans.
The state's on the hook for the pension payout whether they fund it well or totally mismanage it. Hard to see an upside for the union there, to bargain for what's already yours.
Now you're talkin'!
AFSCME didn't foist Filanomics upon the State; the Blago/Quinn administration did. Most of the commenters here who say AFSCME should reopen couldn't handle most AFSCME bargaining unit jobs, regardless of the pay.
It's not unreasonable to ask all State employees- and State-funded employees-(hello SEIU) to share in the solution to the State's financial problems.
However, as long as Filan and other fumigees are still drawing a check, a legislative pork bill stays alive, and Peotone Airport still has lift, it's most unreasonable to ask AFSCME, or the FOP, or any bargaining unit, for concessions.
We have two kinds of people here in government, the politicians and the workers. The workers do the work, and the politicians make the promises, passes the legislation and runs for office.
So what we have here are politicians who ran amok for a decade. They really, really, screwed us royally. They are the ones responsible. They are the ones that need to fix the messes they created and ignored while most of us listen to all the alarms.
To expect the workers to shoulder both a tax increase and a salary decrease after a decade of dealing with our politician's whims and stupidity is blatantly unfair. It is dead wrong.
Worse, it is the wrong way to solve this problem. Asking AFSME to break their contract is a selfish thing to do.
This people who claim that state workers should "share the sacrifice" fail to acknowledge the sacrifices that have been already made by our state workers.
It isn't a matter of politics. Whether you are Republican or Democrat, state workers do their jobs regardless. To expect them to take it from both ends is not shared sacrifice - it is human sacrifice.
2) AFSCME could and should offer mandatory furlough days so as to negate to wage increases still to come. The increases still happen on the books which helps employees. Management saves money which helps strained budget. Employees should be fine since wage increases haven't occurred and there ideally would be no reduction in check size.
I am a state employee who is not a union member and I will answer both questions as a resounding NO! AFSCME made concessions in negotiating the deal. If they open the door there will be more than wage freezes and furlough days. And attempting to get a guarantee of no layoffs will not happen. The state will not agree to those terms even for 1 year.
I agree that there must be some shared sacrifice in tough times. But other than still having my job the last few years have not been a picnic. We have sacrificed enough already!
The govennor still has not streamed lined the upper management jobs, thats what is draining agencies budgets. When I hired into an agency 20 plus years ago we had 4-6 pictures hanging on the wall, the who's who of the department. Now we have over 18. I believe the front line workers are tired of the mismanagment and misspending of state dollars by political hacks.
Yes there needs to be a two tier retirement system, the quicker AFSCME conceds this the better off the state is going to be.
No, I don't think the contract should be re-opened, despite the fact that it was very poorly negotiated on behalf of the state.
We should learn from this mistake and take action so that it will not be repeated.
There should always be an "escape clause" in public labor contracts, including those in schools and municipalities, that limits all increases in salaries and benefits to a ooercentage of revenue growth.
No revenue growth, no increases in salaries and benefits.
It's fair, and it's the only way to avoid catastrophes like our current situation when long term contracts are negotiated.
The GA can pass legislation making this a REQUIREMENT in all public labor contracts.
For years spineless bureaucrats and politicians have been giving away the store to the public employee unions and campaign contributor contractors.
Legislating the ability of the state and local governments to make responsible adjustments to compensation based on economic conditions MUST be done to fix the structure that created the "structural deficit".
"Let all the poisons in the mud hatch out"-Old King Log
What percentage of the budget problem are salaries and benefits?
Working Man, you stole the handle, but you're no Merle Haggard.
What exactly are you talking about, anyway, in relationship to the questions? This Sean Hannity bloviating is for the kiddie shows on cable, not here.
While you're figuring it out, I'll drink my beer in the tavern, sing a little bit of them working man blues.
I already gave 1 furlough day to balance the state budget during the Ryan admin and went without a raise for 4 yrs during the Blago admin to balance the state budget.
So, my answer is no. I already gave.