Saturday, February 19, 2011

The Will of the People in Wisconsin?

In Wisconsin, thousands gathered this past week to protest Governor Scott Walker's call to reform collective bargaining agreements and reign in a $3.6 billion state deficit. The Governor and the Republican majorities in the legislature are doing something politicians rarely do; they are living up to their campaign promises. The Obama Administration has already thrown their support behind the protesters, calling Gov. Walker's actions as "an assault on unions." The Obama/DNC's "Organizing for America" has deployed their troops to Wisconsin to continue the join led support. While certainly an ideological issue for the President, this is certainly a political maneuver as well; to solidify and rally the support of organized labor in 2012.

Some groups, like Americans for Prosperity and the Tea Parties in Wisconsin, have organized counter protests in support of the Governor. After the financial collapse of 2008, the entire world has been confronted with the realities of costly government in an economic recession. It began in Europe, in France, Greece and England, as the state began to rollback portions of entitlements that were no longer feasible to fund. Those protests turned violent. In Madison, and the coming battle in Columbus (Ohio), are heated protest, but unlikely to turn violent. Why? Because most Wisconsinites, Ohioans and Americans understand that government workers should make serious concessions to address budget shortfalls. In fact, some polls suggest that over 60% of Americans believe public employees should not have the right to collective bargaining.

Union organizers, in contrast, would have you believe that this is about class struggle; "the people" versus "the powerful." The problem with this argument, particularly under these circumstances, is who are "the people" and who are "the powerful?" A Washington Examiner article explains this dynamic quite well:
Wisconsin has raised taxes in recent years, and is still facing a multi billion-dollar deficit. Other state programs are being trimmed, and Walker's effort would be about spreading the pain -- specifically shifting some of the government workers' retirement contributions from taxpayers to the workers. If the government unions win, they guarantee more pain for everyone else, especially taxpayers.
In the romantic liberal vision of this union uprising, determined workers are standing up to the powerful. But there's no fat-cat owner wanting to pocket more profits here. The unions' target in Wisconsin is the taxpayer. At bottom, this is the unions versus the people.

Union leaders tell a much different story. For them, this is about their collective "rights." According to a video on the American Federation of State, County and Municipal Employees (AFSCME) website, if the bill passes they will all lose their health care benefits; although the Governor and legislature is only asking for a 12% contribution. The reality is that private sector employees, non-union and union, have been contributing more than 12% to their health care costs for years. These same private sector employees also have defined contribution plans (401k) rather than defined benefit pensions. Private sector union employees, the UAW for example, took deep cuts before and after the bailouts of GM and Chrysler. Despite a call for "solidarity" among union members, there has been stark differences between the realities for private sector versus public sector union members.

As battles over public employee benefit reform spread to Ohio this week and perhaps to more states in the coming weeks, the question of "the people" versus "the powerful" will surely be evoked in the public discourse. The union organizers will claim to be on the side of "the people." Just remember who is on the other end of that negotiation table; the taxpayers.

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