Monday, November 28, 2011

End of collective bargaining, not end of the world

 Chris Wodke

Public sector union member, especially teachers have been vocal in their protest of the end of collective bargaining.   Their life as they knew it is over, at least according to them.  You would think they were losing the very last freedom they had.

The goal of Walker and the legislators is to reduce the cost of state government, keeping taxes low and sending the signal Wisconsin is open to business. Unlike President Obama, Walker really does have a laser like focus on jobs. He understands to create a business friendly climate we must get the size and cost of government under control.

Government at all levels needs flexibility to run its operations. Union work rules were preventing the efficient and economic operation of government.

So is the end of collective bargaining really the end of the world. What will be the benefits and draw backs. What can workers expect as the law starts to take effect?

We just have to look to Indiana to see the future.  Gov. Mitch Daniels eliminated bargaining for state employees six years ago with an executive order.  Here were some of the results in Indiana:

  • No raises for state employees in some years.
  • Higher health insurance payments. Average employee paying $3400 a year more.
  • Weakening of sonority preferences. Merit pay system. Some employees got 10 percent raises while some employees got no raise.
  • More ability to outsource or consolidate state operations.

Daniels was able to merge procurement of several state operations. He consolidated food service operations for Indiana state prisons and saved $100 million since 2005. He would have been unable to do so under old union contracts.

Contracts for teachers currently require health insurance be bought through the teachers trust.  The union charges more and pockets the profit. If the teachers were switched to the state program $68 million a year would be saved. That is a lot of money that could be used to educate our kids and the taxpayers would not pay a dime more.  The state coverage would be as good as currently provided to the teachers.

Workers would still have grievance procedures and civil service protection under Walkers plan.   This is a change we need. It has helped in Indiana; we need make the same changes in Wisconsin.

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