District 24 Legislators Say Communications Workers of America Agreement Provides Limited Relief
While Governor Jon Corzine hailed the state’s new labor deal with the Communications Workers of America as a “historic agreement,” Senator Steve Oroho, Assemblywoman Alison McHose, and Assemblyman Gary Chiusano, all R-Sussex, Morris, and Hunterdon, said that after evaluating the details there will be minimal financial benefit for the state after the upcoming fiscal year.
“I wouldn’t be crowing about the momentous achievement of this new deal,” said McHose, who is a member of the Assembly Budget Committee. “After realizing that the net impact on a unionized state employee will be less than three percent over the next two years, taxpayers may choose a different word than historic to describe this agreement. I wouldn’t call the governor a skilled negotiator.”
Various news accounts detailing the accord said that the administration has estimated the savings over the current and upcoming fiscal year at between $300 million to $400 million. Included in the agreement is a pledge by the state that no workers will be laid off before January 2011, and that the 10 furlough days that will be taken by June 2010 will be offset by a seven day “paid leave bank” that can be carried forward indefinitely.
“The truth is that the governor did not achieve the long term, structural savings that state government needs to operate more efficiently,” said Chiusano. “Homeowners who are losing their property tax rebates this year without any recourse wish they could have bargained with the governor, too.
“This deal does not provide the reform that is needed to control spending. But it does hamstring the next governor in their ability to rein in the out of control costs borne by the taxpayers.”
Other provisions in the new pact include: deferring the 3.5 percent raise due to workers on July 1 until 2011; pension calculations will be based on wages as though there were no furlough days or wage freeze; replacing Department of Transportation contractors with state employees; and 12 paid holidays for workers.
“The governor pretends to flex his muscles like Popeye, but he is more like J. Wellington Wimpy promising to ‘gladly pay you Tuesday for a hamburger today, ‘” Oroho, a member of the Senate Budget and Appropriations Committee said. “Unfortunately, that hamburger will cost more when state workers collect on the goodies the governor has given them and it will be the state’s middle class taxpayers who will be stuck with the bill.”
The 24th District legislators said the deal represents yet another one-shot gimmick for a governor who refuses to make tough decisions to correct the state’s finances.
“This arrangement can be placed into the category of one-shot solutions for which Corzine is famous,” continued McHose. “While middle class taxpayers grapple with how to overcome their financial crisis, the governor is taking credit for a misguided temporary fix that benefits his political allies.”
“Ultimately there is no impact on the pension of unionized state workers and the worth of the bankable paid time off will be potentially as much, if not more than the present value,” said Chiusano. “The state gave away a lot from the original 12 day furlough and wage freeze that could have been implemented.”
“Governor Corzine should not be congratulating himself on the retreat from the bargaining table that he orchestrated over the last week,” Oroho said. “He had the leverage in these negotiations and surrendered it for votes in November.”
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June 3, 2009
