Malloy to Unions: $2 Billion Is Doable, Or Layoffs Loom
by Christine Stuart | Feb 16, 2011 3:12pm
(5) Comments | Commenting has expired
Posted to: Labor, State Budget
Democratic Gov. Dannel P. Malloy’s first budget speech wasn’t “light and fluffy” and it was not abstract. There were long stretches of silence as he detailed his desire to achieve $2 billion in savings and concessions from the state employee labor unions.
It’s a number some have opined is unachievable, but Malloy maintained that their current “wage, health care, and pension benefit levels are simply not sustainable.“
Malloy used his budget address to make some suggestions about how the two sides may work at achieving those savings through the collective bargaining contract, which he formally asked them to open during his speech.
“Some of these savings can be achieved by implementing common sense proposals, such as moving state employees to a health benefits package like the one that covers federal employees,” Malloy said. “That change alone could save the state over 100 million dollars over two years.”
A wage freeze could save close to $300 million over two years, three furlough days per year over the next two years could save $80 million, adjusting the retirement age could save $300 million, and a handful of other concessions could easily help them find $2 billion, Malloy suggested. The alleged concessions add up to about $680 million over two years, which is using Malloy’s own numbers is far shy of his own $2 billion target.
“The alternative to the two billion dollar figure would require us to completely shred the safety net and lay off thousands of state workers,” Malloy said. “Which is to say there’s no alternative. We have to get it done. And I’m confident we will get it done.”
Union leaders, like Leo Canty, vice president of the American Federation of Teachers, said Malloy’s comments were not unexpected.
“Whether we open up contracts and whether that goes will all be part of the process we’ll get into,” he said. “We gave him a few ideas about savings, he gave us a few ideas about savings and now we’ve got to find some way to get together and have a discussion about them.”
Sen. Ed Meyer, D-Guilford, said Malloy’s budget address showed “great leadership“, but he liked the speech more than he liked the budget.
He wished the governor would have given more specifics about the options of layoffs, but he knows it’s a touchy subject and he thinks there’s a lot going on behind the scenes.
Malloy’s budget also seeks to give the legislature the authority to approve or reject collective bargaining agreements. Currently those agreements can go into effect without a vote of the General Assembly, which is what happened with several contracts most notably the Correction Officers and Correction Supervisor’s contracts. No action was taken on either of those contracts in 2009, so when the nine other bargaining groups were taking furlough days and benefit cuts, the two Correction Department unions were seeing their wages increase.
John Olsen, president of AFL-CIO, said he doesn’t think it’s constructive to bargain through the media so he refrained from speaking directly about Malloy’s offer to open up the collective bargaining contract.
“I’m going to fight for everything I had in the past,” Olsen said. “With an eye toward the future,” and creation of new industries, technologies, and jobs. He said he doesn’t blame workers in the private or public sector for the current global economic crisis.
“We are the most productive, hardworking, and caring workers, whether they be public or private workers,” Olsen said.
As for the rhetoric regarding more than 9 percent private sector unemployment verses 0 percent public sector unemployment, “If you lost your legs should mine be cut off?”
Tags: labor, budget, concessions
(5) Comments
posted by: Matt W. | February 16, 2011 5:14pm
“As a former Mayor, I simply refuse to balance the state’s budget on the backs of our local taxpayers.” HAHHAA! I’ll do it on the backs of the state taxpayers, but not you local taxpayers. You’re safe.
posted by: BMS | February 16, 2011 7:31pm
The Governor is seeking $2,000,000,000 in concessions from 45.000 state employees. If you do the math that’s $44,444.44 per employee. The fat was trimmed with the last concession agreement. Now the Governor will be cutting into muscle. The unions leadership would be voted out of office, if they brought those magnitude of concession to the membership. It can not be done.
posted by: Knitting Clio | February 17, 2011 12:38pm
BMS—doesn’t streamlining government mean layoffs of state employees? So, that means that the $2 billion will be spread among fewer state employees, right? Argh!
posted by: ... | February 18, 2011 12:18am
Its not so much a size of the workforce issue (as it has been in decline relative to our population) as it is the cost each is with pensions, benefits, etc. These need to be their concessions first.
We’ve seen articles from other sites state the work they do is being better paid than private counterparts. Many who still have jobs have to work even harder and longer for less or no increase in salary, and that economic reality must be seen by our state workforce as well. My only slight exception would be our cops and firefighters who are in much more risky environments.
posted by: newview | February 18, 2011 7:11pm
The bargaining should begin like this: For every full-time “stuffed shirt” there is in Hartford…For every low-mid-upper management level State Agency employee that gets the hatchet, unions will contribute $1 million in concessions. Lay off 100…unions give 100 million…Simple!
This should be ringing loud and clear for everyone at this point. This isn’t about Agency consolidations, we have already witnessed that pathetic display. This isn’t about streamlining agencies for efficiency. This is about busting Unions one step at a time. Look at what’s happening in Wisconsin, Jersey, NY, etc. This is the overall tone of the relationships between government and organized labor/collective bargaining. Folks should open their eyes and see the bigger picture here. If you ever thought about entertaining the idea of being a “middle class” good taxpaying citizen, you better think twice about supporting local, state, and federal insitutions that are taking the working middle class right out of the picture. Folks need to wake up or we’re going to have ourselves an Egypt or Bahrain on our hands. You can’t continue to tax to the hilt and then undercut with poor paying jobs…this is a sure fire remedy for creating the conditions for revolution!
While I don’t support everything that Unions do, there is a lot of good Unions bring to the working class. We need to be aware of this and fully support the presence of the American worker in unionized shops.
As far as layoffs vs. a billion dollars a year…HA! Not “one dime” until the talking heads in high places start pedaling their wares on the streets. In case nobody noticed, we just received our first “slight of hand” by Mr. Malloy and his administration by dodging the “twice as many managers as the rest of the country” response. Generally, that would be followed up with a few early opt-outs…buy-outs, releases, retirements, and pink slips…. surprise surprise…the nest egg survives for the politically connected.
Wrong song…again! Who else is going to call these peole out? Or did we forget how to think critically and continue to follow the dangling carrot!