Monday, June 28, 2010

Democrats Turn on Unions

Considering the fiscal state of municipalities is this any surprise?

TRENTON — Stephen M. Sweeney, the president of the State Senate here, glowered with disgust as he described how one New Jersey town paid out nearly $1 million to four retiring police officers for their unused sick days and vacation time.Mr. Sweeney, a Democrat, also scowled about the estimated $46 billion New Jersey owes in pension contributions and its $58 billion in liabilities to finance retiree health coverage for government employees.

For years, Republican lawmakers have railed against public employees’ pay and benefits, but now another breed of elected official is demanding labor concessions, too: current and former labor leaders and allies themselves.After 12 years erecting steel beams for office buildings, Mr. Sweeney became a top official in New Jersey’s ironworkers union, now holding that post along with his legislative one. He says the state can no longer afford the benefits won over the years by public sector unions.


“At some point, you reach the limit of your ability to pay,” he said.In Oregon, Gov. Theodore R. Kulongoski, a former lawyer representing the state employees’ union, is insisting upon wage concessions from those very workers. In Los Angeles, Mayor Antonio Villaraigosa, a former teachers’ union organizer, is battling once-friendly unions, demanding $100 million in concessions.


In New York, Gov. David A. Paterson, a longtime union ally whose father is a top adviser to several unions, is threatening large-scale layoffs unless public sector unions agree to a pay freeze and re-open contracts.


Unions can do and have done a great deal of good in this country when they act in a rational manner or or held in check by market forces that curtail their demands. The problem with pubic sector unions is that their demands were not limited by the market, but decided by politicians whose two key demands are donations and votes, something the Unions were able to deliver. Over time, especially since state and local elections tend to have the lowest voter turnout this gave them a disproportionate amount of influence on the state capitals leading to pension plans that would make an actuary scoff.



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