








Just when you thought the smooth transition of power was going to be all sunshine and kitties…wham, it’s go time.
As I and most of the conscious world expected, Gov. Chet Culver’s administration sealed a very quick deal today with AFSCME – the largest state worker union – on a two year contract. Now, remember, it still has to be ratified, blah, blah, blah. It’s done.
You knew this was coming. A couple of weeks ago, AFSCME presented an unusually skinny 10-page initial offer. Administration types praised it for its humble restraint. And then, today, the gov’s guy walks into a meeting with the union and says, we’ll take it. Grab a Pabst!
Fast, you say? This isn’t negotiating a state worker contract. This is making a bag of microwave popcorn.
The Gazette’s Rod Boshart has the lede and the details:
With history-making speed, negotiators for the state and its largest employees union today reached a tentative settlement on a new two-year contract that would provide a modest across-the-board wage increase beginning next July 1.
Jim Hanks, an attorney who leads the state’s collective bargaining team, today announced that Gov. Chet Culver’s administration had decided to accept a contract proposal made by leaders of American Federation of State, County and Municipal Employees (AFSCME) Council 61. The new two-year labor agreement, which would cover nearly 21,000 state workers from July 1, 2011, through June 30, 2013, likely will be finalized sometime in December after union leaders review the proposal and submit it to rank-and-file members for ratification.
AFSCME’S proposal — submitted two week ago — called for a 2 percent increase in base wages on July 1, 2011, and a 1 percent increase on Jan. 1, 2012, in the first year of the agreement, and a 2 percent increase on July 1, 2012, and a 1 percent on Jan. 1, 2013, in the contract’s second year. The proposal would not change the current 4.5 percent “step” increases in wages for state workers who are not at the top of their pay scales.
“The governor appreciates the proposal and accepts the offer made by AFSCME,” Hanks told AFSCME President Danny Homan and the union’s bargaining team. “We want to thank the union for making proposals that are fair and reasonable. We’ve accepted your proposal and it’s done.”
This was not well-received by the guy who beat Culver pretty handily way back on Nov. 2 (drumroll) Governor-elect Terry E. Branstad.
Did you enjoy “reckless and irresponsible” during the campaign? Well here’s a bonus dose, from Team Terry:
Culver’s backroom deal on salaries is reckless and irresponsible
Agreement leaves taxpayers on the hook for hundreds of millions of dollars in salary increases
(URBANDALE) – The transition team of Gov.-elect Terry Branstad today released the following statement from chief of staff Jeff Boeyink, in response to the new agreement between Gov. Culver and the unions.
The contract would put Iowa taxpayers on the hook for $103.5 million the first year alone, and hundreds of millions in subsequent fiscal years.
Boeyink’s statement is as follows:
“Taxpayers are the losers in this backroom deal.
“Governor Culver’s decision to rush through a collective bargaining deal with state employee unions before he leaves office is reckless and irresponsible. This will cost Iowa taxpayers $103.5 million the first year alone, and hundreds of millions in subsequent fiscal years.
“At a time 113,000 Iowans are out of work and thousands more are seeing significant pay reductions, it is the wrong time to ask taxpayers to pick up the enormous cost of these pay raises.
“Iowans elected Terry Branstad on a promise to reduce the size of Iowa’s budget and Governor Culver has taken the unprecedented step of effectively removing to voice of the taxpayers from this process.
“This is unaffordable, and we will review all of our options.”
Normally, a transition office doesn’t have to do much smack-down news-releasing. So this is history on many levels.
Should Culver have let Branstad negotiate a contract that will cover half of his term as governor? Yes. Judging by the election returns, this was not a decision most voters would want Culver to make.
But, honestly, there wasn’t much incentive for Culver to do otherwise. He gets to reward a union that did make concessions during the budget crisis and may be important to him if he ever seeks a second act. He probably doesn’t care much if he makes Branstad’s job harder, what with all the mean things he said about I-JOBS.
And Culver believes he ratified a modest deal, which, from a pay-raise standpoint, he did. But Branstad had hoped to tinker with benefits and automatic step raises. No dice.
So that’s done. Now all Culver has to do is appoint those three justices and the in-box will be nice and empty when Branstad arrives Jan. 14 to unpack his bill-signing pens and arrange his elephant collection.
Yep, sunshine and kitties.
I really enjoy reading your columns, Todd!
Steve,
Since you are giving us a lesson on the world of economics, explain to us how taking money from more money from taxpayers (most of whom have not had a raise in some time) to give raises to state employees increases the economic benefit of the state.
Thanks in advance
Guess what, bub, those state employees, who may happen to be your friends and neighbors, will spend the money here.
How about the moneybags CEOs and other malefactors who will benefit from Branstad’s reduction of corporate taxes: how much of THAT money will be spent in-state?
You’re right…no one benefits when new jobs are created.
US workers don’t benefit when those “new” jobs are actually created overseas by way of employers in this country outsourcing. The only ones who benefit then are the employer, who saves money, and the workers in China, Mexico, India, etc.
You realize that nowhere in here is there a proposal to actually raise taxes, right? Yes, the money for jobs WILL come from the pool of tax dollars, but that doesn’t mean that you or I will pay extra. It’s simply a ruse used by conservatives to get you all riled up about “reckless spending”.
In fact, if Mr. Brandstadt is so steadfast on fixing up the budget, as he’s proposed, then he should have plenty of tax dollars left to cover these wage increases, right?
Thanks, lilsqueakyone
Might I say there should be a base where everything stops going down hill that is acceptable. Branstad would knowingly take raises for himself and keep his benefit package while slicing and dicing the benefits and retirements of those who plow the snow, guard the prisoners and do useful work the state needs to have done. Like tea party people, he will do and advertise whatever will get him elected, but as far as taking responsibility for the end results of his actions, never mind about that! In the economics world, money has to flow, what is spent on wages is spent on consumer goods and services, that makes an economy flourish. Concentrating all the money in the hands of the few through tax cuts and benefit reductions doesn’t always play out, especially in a Depression, and no matter how you want to play it in the media, that IS what is going on right now.
Great point, Steve. I never understood how throwing loads of cash at rich folks and hoping they spend it and it makes its way down the line seems like a better plan than just giving more money to the lower and middle class?
I’m glad the bargaining went through before Branstad takes over. If it were between him and the unions, it would be a long, ugly fight that would probably end up in court. And Branstad would probably lose— again— and cost the taxpayers more—again. I am not against cuts, but going after state workers is not the way to help the state or it’s citizens.
Unions and politicians. The two most destructive forces in America today.
I should have put in my last post that I am NOT pro-union. In fact, I think unions and attorneys are at the root of the problems in this country. I should have said, that when the unions and Branstad fight, the taxpayers are the losers.
Let’s see, which is worse:
Approving a deal to provide modest pay increases to state workers, who happen to be our colleagues, friends, neighbors? Or, give the dough away in the form of tax breaks to fellas who are driven to work from their homes in gated communities?
Easy call…
I am pretty sure it is not a or situation. It is an and situation. Its not like because they do one thing they wont do the other. We all should know they will just spend more instead of making a concession. Unions are a joke anyway and we should have no part in them. Having to pay 40 dollars an hour to some uneducated menial laborer to plug in a extension cord or clean up a knocked over plant needs to end.
Johnny, you make unsupported assertions about union workers which reveal more about your prejudices than they do about unions.
Now what should we have expected. Culver has got to give one last favor to his buddies.
LOL! You say that like he’s cut some slum deal with a couple of dirty politicians. His ‘favor’ for his ‘buddies’ is helping out THOUSANDS of WORKERS in IOWA. The ones that do the jobs no one else wants to do. Are you volunteering to wake up at 2:00 AM to plow the interstate? You probably complain about scraping your windows.
How about fighting fires? Chasing down murderers? You want that job?
Come on, now.