Labor criticizes misleading Chamber of Commerce report attacking government workers compensation

[Better Believe It]

AFSCME CRITICIZES CHAMBER FOR REPORT ON PUBLIC-SECTOR COMPENSATION

FOR IMMEDIATE RELEASE: December 9, 2010

The Minnesota Chamber of Commerce released a report today attacking government employee compensation. AFSCME Council 5, Minnesota’s largest public employee union, responded by challenging the chamber to pay its fair share of taxes.

“Tax breaks for the rich are what’s really threatening the sustainability of public services,” explains Eliot Seide, director of AFSCME Council 5. “The chamber doesn’t want to pay its fair share of taxes and that’s why it’s trying to blame the deficit on public employees. We’re not the problem.”

“Cheap-labor conservatives like to pit private workers against public workers. Their real agenda is strip the entire working class of wages, benefits and pensions. That way, rich employers can pocket more profits from our labor. Our union is trying to stop the chamber’s race to the bottom. We strive for a Minnesota where all labor is rewarded with wages that can raise a family, health care if people get sick, and a retirement that’s dignified.”

Here are facts the Chamber doesn’t want you to know about:

The wealth of Minnesota millionaires has doubled under the Pawlenty administration, as their state and local tax rates have decreased by 4 percent. Meanwhile, the wages of most public workers have been frozen.

AFSCME members earn $38,000 a year, on average. They’re struggling paycheck to paycheck, just like average Minnesotans.

Public workers in Minnesota earn 4 percent less than private-sector employees, when matched by education and experience. That’s because public workers have sacrificed wages for better benefits.

Minnesota’s state workforce is the 10th leanest and one of the most productive in the nation. Minnesota has 71 public workers for every 10,000 residents, according to the U.S. census. We’re tied with conservative Florida.

If Gov. Pawlenty fired all state employees, the cost savings would erase only 21 percent of the state budget deficit.

Minnesota Chamber president David Olson’s concern about public compensation is hypocritical. As a trustee of the Minnesota State Colleges and Universities, he paid bonuses totaling $415,875 to 33 top administrators who earn six-figure salaries. Phil Krinkie, president of the Taxpayers’ League, and Mike Veckich, chair of the Emmer recount team, are also MnSCU trustees appointed by Gov. Pawlenty.

Public pensions are modest. The average AFSCME retiree has pension benefits of about $13,000 a year.

Minnesota’s pension systems pay out more than $2.5 billion, add $3.3 billion to the state economy, and create 22,500 additional jobs.

State and local taxes collected on public pensions exceed public employer pension contributions by $80 million a year.

90 percent of retired public workers stay in Minnesota. That benefits our economy and keeps seniors self-sufficient.

More than 20 percent of senior citizens are living in poverty with only Social Security.

Minnesota taxpayers pay for only 15 cents of every dollar in public pension benefits.

Most private pensions are 100% employer paid. AFSCME members pay for half of theirs.

AFSCME Council 5 is a union of 43,000 public and non-profit workers in Minnesota, including 20,000 state employees. We advocate for excellence in public services, dignity in the workplace, and opportunity and prosperity for all workers.

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[ck4829]

1. K&R

[Hannah Bell]

2. kr

[defendandprotect]

3. kr

[hfojvt]

4. Minnesota median income is $57,318, per capita is $23,198

so a $38,000 (or more) a year job is not that bad. Two of those in a household would be $76,000 - well above the median income.

[Better Believe It]

6. Not as bad as what? $38,000 is well below the median income and is a living wage.

Do you think that public and private workers should make less?

The news release doesn't claim that Minnesota government workers are poverty stricken.

It just points out the truth about their real income and pensions.

It would certainly be a lot less if the government workers were not organized and did not have a labor contract.

[hfojvt]

7. it's well below the median income

if you ignore the fact that many households have two incomes.

All I said was that they apparently make more than many other Minnesotans.

[Bandit]

8. So

:shrug: You have a point to make? Are you suggesting the Chamber is correct and those lousy Public employees are getting more than they deserve?

[hfojvt]

9. they are getting more than me

thus I am not all that concerned about their gains or losses. Last night at a board meeting I fought for a different kind of raise. Instead of a 2% raise that would give $2,200 to the top paid manager and $560 for the lowest paid employees, I tried a compromise proposal 20 cents an hour plus 1%. Which would give $697.4 an hour to the lowest paid employees and $1517.4 to top management. The cost to the company (or taxpayers) would be the same in each proposal. I would be in favor of raises that did not favor the highest paid workers. If it was up to me, I would go with a straight 40 cents an hour which would give $834.80 to everybody, but I tried for a compromise position (and got no support).

I'd like to see the union fight for something like that, but I am not gonna hold my breath.

[Better Believe It]

5. Here's the link to the news release. I forgot to include it in the post.

http://afscmemn.org/union_news/82