Category Archives: Public Sector

Targeting teachers while shielding cops? The politics of punishing enemies and rewarding friends in American state collective bargaining reform agendas

Source: Magic M. Wade, Journal of Labor and Society, Vol. 21 no. 2, June 2018
(subscription required)

From the abstract:
Teachers unions are notorious figures in state politics, asserting influence over elections and education policy with their large memberships and well‐funded PACs. Nonetheless, during the Great Recession Republican‐controlled state governments repeatedly clashed with teachers unions over their members’ compensation and collective bargaining (CB) rights. Conversely, public safety officers were less frequently targeted—and in some cases explicitly shielded—from CB conflicts. Is this because teachers support Democrats, while cops support Republicans? I evaluate this proposition considering state reform patterns and union partisan campaign donations.

How Corporations Plan To Use Janus To Turn Workers Against Their Own Unions

Source: Chris Brooks, In These Times, July 2, 2018

A union buster may be coming to your door.

…..SEIU 925 is the target of an “opt-out campaign,” a new anti-union initiative by the State Policy Network (SPN), the web of billionaire-backed right-wing groups that helped fund the Janus v. AFSCME lawsuit. The Washington-based Freedom Foundation is a star member.

SPN got the Supreme Court ruling it wanted in Janus, which nationalized right-to-work conditions across the public sector. All public sector workers now have the option of receiving union benefits without paying for them. If enough workers choose to stop paying dues, union budgets and power will be greatly diminished.

SPN is now building on the Janus victory with opt-out campaigns to contact government employees in union-dense states and encourage them to drop their membership. Their targets include blue states such as California, Illinois, New York, Oregon and Washington that have resisted passing anti-union legislation. The plan is simple: Gut unions of members and money so they have less influence on state elections. Once sympathetic politicians are in office, corporate interests can pass state laws to torch what remains of organized labor.

But unions have also spent months preparing for this moment…..

How Badly Did the Supreme Court Just Damage Public Sector Unions? Take a Look at Michigan.

Source: Jordan Weissman, Slate, June 27, 2018

….Estimates vary as to how drastically right-to-work policies ultimately reduce union membership, but the consensus at this point is that they’re a drag. Michigan offers a useful illustration, in part because it passed a right to work law in 2013, meaning enough time has passed to judge its initial effects, and because the state’s largest teachers union, the Michigan Education Association, files financial and membership information with the Department of Labor. (Many purely public sector unions don’t because they aren’t required to.) According to those documents, the union has lost 18 percent of its membership since the statute was passed. Dues and membership fees have declined, meanwhile, by 28 percent. The union hasn’t collapsed, but it is significantly reduced…..

….David Crim, a spokesman for the Michigan Education Association, told me that many teachers decided to leave the union even though they supported it, because dropping their membership and not paying dues was the only way they felt they could increase their incomes at a time when educators’ wages in Michigan have been stagnant. If true, that points to how right-to-work policies can create a vicious cycle for unions: Weakening organized labor makes it harder for public sector unions to organize and bargain for better pay, encouraging more teachers to drop their memberships for the sake of their own finances…..

Local government – Minnesota – Legislation will reduce pension liabilities, but changes are far from a cure-all

Source: Benjamin J VanMetre, Daniel Simpson, Rachel Cortez, Alexandra S. Parker, Moody’s, Sector Comment, June 26, 2018
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The State of Minnesota (Aa1 stable) approved legislation late last month that will change certain public pension benefits and modestly increase plan contributions by government employers and employees. The changes are credit positive for the state and its local governments because they will reduce unfunded pension liabilities and improve plan funding. Even after the changes, however, local governments across Minnesota, particularly school districts, will continue to face high pension burdens….

Supreme Court Bans Mandatory Union Fees for Public-Sector Workers

Source: Lisa Nagele-Piazza, SHRM, June 27, 2018

In a closely watched case, the U.S. Supreme Court overturned 40 years of precedent by ruling that mandatory public-sector union dues are unconstitutional.

In a 5-4 vote on June 27, the justices held that states and public-sector unions may no longer require workers to pay agency fees. “Neither an agency fee nor any other payment to the union may be deducted from a nonmember’s wages, nor may any other attempt be made to collect such a payment, unless the employee affirmatively consents to pay,” Justice Samuel Alito Jr. wrote for the majority.

In dissent, Justice Elena Kagan said the decision will have large-scale consequences. “Public employee unions will lose a secure source of financial support. State and local governments that thought fair-share provisions furthered their interests will need to find new ways of managing their workforces,” she wrote…..

Related:
Decline in Union Membership Expected After High Court Ruling
Source: Lisa Nagele-Piazza, SHRM, June 28, 2018
Supreme Court held that mandatory public-sector union fees are unconstitutional

The Anti-Union Janus Ruling Is Going to Hit Black Women the Hardest

Source: Miles Kampf-Lassin, In These Times blog, June 27, 2018

…. Today’s ruling means that all public-sector unions could essentially operate under “right-to-work,” depriving labor of critical funding, increasing the problem of “free ridership” and potentially decimating union membership.

Unions are bracing for the aftermath of the ruling. And mainstream media outlets, which do not generally devote much ink to labor stories, have highlighted the case in headline after headline. Yet what many fail to mention is that Janus would be particularly devastating for one group in particular: African-American women.

Public sector unions have long been a source of economic power for African-American women, who are disproportionately represented in their ranks. A March brief from Celine McNicholas and Janelle Jones at the Economic Policy Institute (EPI) shows that African-American women have the highest share of workers in the public sector—17.7 percent, equaling about 1.5 million workers.

The public sector provides job opportunities for African-American workers, and women especially, at a rate much higher than the private sector. In 2015, African-American women made up 10 percent of government workers, compared to just 6 percent in private-sector employment. ….

Unintended Consequences: How Scaling Back Public Pensions Puts Government Revenues at Risk

Source: Michael Kahn, National Conference on Public Employee Retirement System (NCPERS), May 2018

The argument that taxpayers cannot afford public pensions has gained traction despite a woeful lack of empirical evidence to support it. Legislators across the nation are contemplating options for the future funding of public-sector worker retirement benefits at a time when competition for finite state and local resources is fierce. The reasons are familiar: the lingering effects of recession and misguided budget priorities have taken a toll. Time and again, defined-benefit pensions for firefighters, police officers, teachers, and other public servants have ended up on the chopping block, even though plan participants have consistently held up their end of the bargain.

Unintended consequences often flow from policy actions that are made with short-term pressures in mind. There is a real risk that reducing or even dismantling public pension benefits will ultimately backfire. Tn this installment of ongoing research on the impact of public pensions on the U.S. economy, NCPERS set out to quantify that risk.

The question we asked is this: How does the payment of defined pension benefits and the investment of pension assets impact state and local economies and revenue generation? ….

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Minnesota’s New Pension Bill Is A Positive Step Toward Sustainable Funding

Source: Cora Bruemmer, Eden P Perry, Todd N Tauzer, Sussan S Corson, S&P Global Ratings, June 7, 2018
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Minnesota’s new pension bill is a positive step toward improving funding of the state’s pension plans, but because contributions remained fixed in state statute, there could eventually be a regression in plan funded status, in S&P Global Ratings’ view.

Five Lessons from the History of Public Sector Unions

Source: Priscilla Murolo, Labor Notes, June 11, 2018

As public sector unions contemplate losing key rights under the law, it’s worth remembering that for much of their history, such unions organized with no rights at all.

It wasn’t till 1958 that New York became the first city to authorize collective bargaining for city employees. Wisconsin did the same for state employees in 1959, and federal workers got bargaining rights in 1962.

Yet as early as 1940, a book titled One Thousand Strikes of Government Employees described strikes dating back to the 1830s, when workers at U.S. Navy shipyards stopped work multiple times to press demands for better wages and conditions. ….

Supreme Court decision in Janus threatens the quality of public-sector jobs and public services: Key data on the roles these workers fill and the pay gaps they face

Source: Celine McNicholas and Heidi Shierholz, Economic Policy Institute, June 13, 2018

In the last decade, an increasingly energized campaign against workers’ rights has been waged across all levels of government—federal, state, and local. Much of the focus of this anti-worker campaign has been on public-sector workers, specifically state and local government workers. For example, several states have passed legislation restricting workers’ right to unionize and collectively bargain for better wages and benefits. Beyond these legislative attacks, public-sector workers have been targeted by repeated legal challenges to their unions’ ability to effectively represent them. The Supreme Court will soon issue a decision in the most recent of these challenges, Janus v. AFSCME Council 31. As a previous EPI report explained, the corporate interests backing the plaintiffs in Janus are seeking to weaken the bargaining power of unions by restricting the ability of public-sector unions to collect “fair share” (or “agency”) fees for the representation they provide. In this new report, we argue that the decision in Janus will have significant impacts on public-sector workers’ wages and job quality as well as on the critical public services these workers provide.

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