home | our local | ppcu action

Press Clips: Why we have no contract?

 The Daily Telegram from Superior reported December 17, "It seems fitting that Gov. Scott McCallum has decided against calling a special session of the Legislature to approve pay increases for the state's union employees. After all, he's on his way out. So he's opted to leave this issue to Gov.-elect Jim Doyle and the new legislative leaders to deal with early in 2003.

Why? The state has reached tentative agreements with 15 of 19 state employee unions representing about 35,000 employees. The deals include pay hikes of 5.5 percent for the two-year period that began on July 1, 2001, the start of the current state budget. Assembly Speaker Scott Jensen, R-Waukesha, says it's irresponsible to allow the pay hikes with their $54 million price tag, because the state will be facing a $2.6 billion deficit in the two-year period that begins July 1. But Jensen is wrong on this one.

The workers who are covered by the agreements haven't had a raise since July 1, 2001, and the increase would be retroactive. Jensen contends that you have to know how you're going to pay for the pay raises. One has to wonder why he doesn't mention the money the state puts into reserve each year to cover employee raises and benefits, including health care. There now is $174 million available. Whether that's enough to handle these agreements and the cost of pay increases and benefits for employees not represented by unions is uncertain. But that money is for employees; it's not for covering the budget deficit. State leaders need to look for other options for managing a shortfall of $185 million in the current budget that ends June 30 and the deficit in the new budget.

One of the problems for critics of these deals is that lawmakers approved a pay raise for themselves - they get 3 percent in January, while the governor's salary increases 7.6 percent and the pay of four other elected officials will jump 13-15 percent. So it's not as if they are making any sacrifices.

McCallum issued a statement saying there was not enough support among lawmakers to approve the union pay increases. How does he know that? Did he take a poll? Or did he talk to a few Republican leaders? It would be irresponsible not to approve the pay raises that were negotiated in good faith. Rejecting them now could cause deeper problems with state employee groups in the future as the state tries to wrestle with its fiscal problems."

 On December 17, The Capital Times reported, "Gov.-elect Jim Doyle today rebuffed suggestions that he prefers to delay action on the current state employee labor contract stalemate until he takes office on Jan. 6.

Last week, Gov. Scott McCallum said he wouldn't call a special session of the Legislature to act on labor contracts, saying Doyle and legislative leaders 'have indicated a preference that this issue be handled next year,' adding that 'I am respecting those wishes.'

At a press conference today, Doyle said that statement was 'just not accurate,' adding 'I haven't stated a preference.' There are many intricacies in labor contracts and the pending deals have been 'negotiated by the current administration.'

Senate President Fred Risser, D-Madison, has pushed for a meeting of the Legislature's Joint Committee on Employment Relations. That committee would have to recommend the contracts for approval to the full Legislature.

Gene Kussart, chief of staff for McCallum, cited a newspaper article in which Doyle said he was working on the next state budget, apparently indicating a preference for a delay on the contracts. Kussart also said McCallum's people had talked to Doyle's transition staff about the matter.

 The Pioneer Press from an AP story reported December 14, "Department of Employment Relations Secretary Peter Fox had suggested McCallum should call lawmakers back into session to approve the contracts. But McCallum issued a statement Friday saying there was not enough support among lawmakers to approve the pay increases.

'I made it very clear that I needed assurances the votes were in the Legislature to ratify the contracts before I would call a special session,' McCallum said.

Fox said he was disappointed in the decision. Fox said he believes the state has enough money to pay for the increases, which Jensen estimated would cost $54 million.

Fox could not confirm Jensen's numbers because he cannot release details of the contracts until after they are sent to the Joint Committee on Employment Relations, which Jensen co-chairs. The contracts need approval from the committee, the full Legislature and the governor to take effect."

 On December 16, The Daily Reporter, "Wisconsin's oldest newspaper dedicated to construction issues" posed the question: "Should a lame-duck legislature vote on labor contracts negotiated by a lame-duck administration?

That question, now being mulled by legislative leaders in Madison, is especially troubling when the state is facing large general-fund deficits, both in the short term and the long term.

Republican leaders are hesitant to take up the contracts given the status of the McCallum administration, the timing of the apparent settlement and the massive general-fund deficits facing state government. Gov. Scott McCallum has estimated the general-fund deficit in the fiscal year, which ends next June 30, will be $185 million. Worse yet, the estimated deficit for the following two-year period is $2.6 billion, according to McCallum's administration.

Gov.-elect Jim Doyle is vowing not to raise taxes, and Republicans who will control both houses of the Legislature next year are waiting to pounce should he retreat from that position. The Republicans think they have the high ground in these difficult economic times.

At a minimum, the Republican leadership would like to get Doyle's fingerprints on the McCallum negotiated contracts. If they wait until Doyle takes office, it would require the new governor to ask for their approval."

Home | On The Job | Benefits | Our Local | Action Center | Around SEIU
Join SEIU | Events Calendar | Search | Contact Us | PRIVACY POLICY
Copyright © SEIU Local 1199WI 2010. All rights reserved.