Wisconsin's Super Bowl Union Fight

by John M. Curtis
(310) 204-8700

Copyright February 21, 2011
All Rights Reserved.                                             

                 More fiercely contested than the Super Bowl, the battle waged by Gov. Scott Walker over union’s rights goes to heart of today’s punishing recession, robbing state coffers around the country of maintaining current expenditures without drowing budgets into red ink.  Wisconsin faces a $137 million budget shortfall in 2011, projected to expand to $3.6 billion by 2013.  With the national and state economies stuck in neutral, budget deficits are expected to rise.  With Tea Party folks driving the debate in Washington, President Barack Obama can’t pull another rabbit out of his hat, pushing for more bailouts.  States, like Wisconsin, face the dismal reality that collective bargaining has tied the hands of states to cut back during times of extended recession.  If unemployment drops by about two percent, states could well-afford extravagant benefits to public employees.

             Wisconsin’s battle over Walker’s bill mirrors the dismal budget outlook for states around the country, reeling from losses of tax revenue during periods of high unemployment.  In a dairy state like Wisconsin, public employees have won hard fought battles for improved benefits and working conditions.  “Stop the attack on Wisconsin’s families” and “solidarity,” shouted 68,000 workers braving freezing whether protest expected cuts in Madison.  To prevent the state legislature from having a quorum, 14 Senate Democrats skipped town, trying to delay a vote on Walker’s stopgap bill.  “You have shut down the people’s government and that is not acceptable,” said Republican Senate Majority Leader Scott Fitzgerald, blasting Democrats for shutting down the government.  Wisconsin’s problems mirror the tip of the iceberg facing the nation’s most populous states.

            Given the state’s budget hole, senate and assembly Democrats must work with the governor and their GOP friends to find an acceptable fix.  When a state runs out of cash, they can’t expect Uncle Sam to bail them out.  Unlike Washington, no state can print money and must work within an existing budget to finance state operations.  Well-intentioned collective bargaining doesn’t give unions a license to bust the state budget.  Today’s recession forces unions to reassess the sustainability of past benefits earned during times of higher state tax collections.  While no one wants to scale back, state workers—and their representatives—must participate in the fix, not accuse more responsible elected officials of union-busting.  “It’s time for all of us to move forward,” said Greenbay’s Democratic Sen. Dave Hansen, hoping Republicans would join the negotiation process.

            Walker’s bill strips unions of collective bargaining in order to deal with $ 1 billion in cuts to the state budget.  Walker wants union employees to pay a bigger share of costs and strip them collective bargaining rights.  Given today’s high unemployment, collective bargaining forces the state to pay unsustainable sums, leading to whopping budget deficits.  Republican Sen. Dale Schultz offered a compromise plan, removing collective bargaining for two years or until the state’s finances turn around.  No one really knows when the national or state economies will improve, generating enough tax revenues for the state to pay its bills.  Like the restructuring that went on in Detroit with the U.S. auto industry, it might be time to consider new wage and benefit plans for new state hires.  Freezing collective bargaining for only two years may not fix the current budget mess.

            Wisconsin could be a good model for how Republicans and Democrats put the state above the needs of unions and state workers.  No one wants to cut pay and benefits.  But state legislatures are commissioned with the task of making government work in current economy.  In good times, there’s less scrutiny on state wages and benefits.  Now that the state faces whopping deficits, both sides must bridge the partisanship and find and acceptable fix.  Ignoring the problems or more partisan rancor won’t fix Wisconsin’s expected $3.6 billion budget shortfall.  Walker wants a compromise plan in place by Friday, Feb. 25, before he’s forced to start pink-slipping state employees.  Walker’s plan limits collective bargaining to wages only, letting the legislature set appropriate benefits and working conditions.  Walker’s plan would find more support if limited to current budget conditions.

            Wisconsin Democrats and Republicans must get on the same page to address the state’s growing budget deficits.  State teachers’ unions and public employees collectives must also recognize today’s recession and lowered tax receipts.  Cutting take-home pay by 8% and sharing bigger parts of states’ benefit expenses should help whittle down the current budget shortfall.  “The future of workers’ rights will be decided in Madison, Wisconsin,” said “Rage Against the Machine” guitarist Tom Morello.  You’re making history here,” unfairly casting the state’s Republican governor and legislature in the villain’s role.  Cheerleading for worker’s rights must take into account the state’s ability to meet its fiscal obligations.  If gaining concessions from unions helps reduce the state’s deficit and pay the state’s bills, then all parties must come together and share the sacrifice.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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