Connecticut State Workers Brace for Layoffs, as Democrats Tighten Screws on Public-Sector Unions

[marmar]

from In These Times:



Connecticut State Workers Brace for Layoffs, as Democrats Tighten Screws on Public-Sector Unions

Thursday
Jul 7, 2011
6:17 pm

By Cole Stangler


Although it looked like Connecticut might escape the intense battles over public-sector cuts that have taken place across the country between state legislatures and organized labor, remarkable developments over the last few weeks have made the state the next battleground over fiscal austerity and workers' rights.

Democratic Governor Dannel Malloy—the same governor who was elected with heavy union-backing and who on Tuesday signed the nation’s first paid sick-leave bill into law—has obtained extraordinary power from the State General Assembly to personally balance the state’s budget, and has even hinted at limiting collective bargaining rights in response to the failure of state unions’ to ratify a $1.6 billion concessions deal to balance the state’s budget.

These developments come in addition to the 6,500 public sector layoffs the governor has promised to solve the-now-$1.6 billion budget shortfall projected over the next two years. (Connecticut’s General Assembly already approved $1.5 billion in tax increases as part of this year’s budget, the largest such increase in state history, leaving the $1.6 billion hole.)

“To do what (Malloy)’s suggesting (with the layoffs) is abominable, but he won’t consider any other option,” says Kathy Hermes, a member of the CSU-AAUP union, which represents employees in the Connecticut State University system. “He’s made people believe that the only way to balance the budget is on the backs of state workers, but that’s not true.” .............(more)

The complete piece is at: http://www.inthesetimes.com/working/entry/11606/connecticut_state_workers_brace_for_layoffs_as_democrats_tighten_screw/

[Omaha Steve]

1. K&R!

[pscot]

2. They should have taken the deal

their leadership recommended. How will the layoffs be determined? Any idea?

[Alexander]

6. The layoffs are being determined by seniority

Last hired, first fired.

The senior union leaders encouraged people to vote it down because they knew they would never be the ones targeted for layoffs, and they didn't want their benefits touched.

Malloy has been more than fair when it comes to CT's budget, and has increased taxes on the wealthiest residents of CT - something the OP didn't bother to mention.

On top of that, most CT residents already feel like Malloy is in the pocket of the unions, which accounts for his dismal 38% approval rating in the last poll. He offered a reasonable deal, it was rejected. Bending over backwards to protect public-sector unions now would be total political suicide for him and would pretty much guarantee he doesn't get re-elected.

[Alexander]

3. Malloy also sharply increased income taxes on wealthy CT residents.

It's not like he's been asking unions to shoulder the entire burden.

The fact is, he offered a concessions package which, if accepted, would have resulted in zero layoffs. He has said all along that if this is voted down, the only alternative is layoffs.

The senior union members voted it down, knowing they wouldn't be the ones getting laid off. Surprise, surprise, Malloy kept his word and now there are going to be layoffs.

It's also worth noting that Malloy currently has an approval rating in the upper 30s, mainly because a lot of CT residents feel he is too supportive of public-sector unions.

[Larkspur]

5. Former Malloy supporter, Jon Pelto, disagrees -- Governor: This Disaster is Your Doing…

Governor: This Disaster is Your Doing…
SNIP
If the Malloy/SEBAC State Employee Agreement Fails – the responsibility for that failure rests squarely on the Governor and his little circle of advisors.

As readers of this blog know, it is apparent that Malloy’s approach to getting a significant state employee concession package was either designed or destined to fail depending on whether you think the Governor’s tactics were an act of omission or commission.
SNIP

...the real truth is that if the agreement is rejected, Malloy and the Democrats could utilize one or more of the following options to fill some or the entire $700 million deficit;

1. They could fill a portion of the budget deficit by utilizing the growing surplus from “excess revenue”. Connecticut’s 2nd gas tax will generate more than $100 million dollars extra in the coming year. The income tax and corporate tax will also likely produce more than was budgeted.



2. The budget itself has extra funds in some key line items. The account to pay retiree health benefits, for example, may have as much as $70 million or more in extra funds



3. The Governor could utilize some of his authority to cut up to 5% of the state budget ($1 Billion) without legislative approval. Although there are some limitations to areas that can or should be cut, the Governor could certainly cut millions if needed.



4. The law further requires that the Governor develop a plan to deal with any deficit that may arise and propose changes for the General Assembly to approve.



5. Finally, the Governor could follow the collective bargaining process and return to the table to negotiate a package that would garner majority support among state employees.

So – call it what you want – but the real reality is that Governor Malloy would have lots and lots of options if the agreement fails.

While suggesting that he will lay off 7,500 state employees may or may not be bullying, one thing is certain, it is not his only option.



Now, as the agreement falters, and perhaps fails, the Governor has no one to blame – but himself.

[Harry Callahan]

4. “To do what (Malloy)’s suggesting (with the layoffs) is abominable"

Her state is in trouble financially and all she can do is think of herself.