Potential AFSCME strike looms despite members’ high pay, benefits

Mailee Smith

Senior Director of Labor Policy and Staff Attorney

Mailee Smith
February 16, 2017

Potential AFSCME strike looms despite members’ high pay, benefits

The average Illinois AFSCME worker receives over $100,000 a year in total compensation. But that isn’t enough for AFSCME leadership – it is demanding even more. And its demands should offend Illinois taxpayers footing the bill.

Illinois state workers are already the highest-paid state workers in the nation when adjusted for cost of living. The average state worker represented by the American Federation of State, County and Municipal Employees makes over $100,000 a year in total compensation.

And yet AFSCME leadership is threatening to shut down state government by going on strike – because it wants even more. It demands wage increases up to 29 percent, overtime after just 37.5 hours in a week, and platinum-level health insurance at little cost to state workers.

Threatening to strike over these outrageous demands is an affront to Illinois taxpayers, who have seen their own incomes flatline in recent years.

AFSCME workers already receive top-notch pay and benefits

When the most recent AFSCME contract expired in 2015, the average AFSCME salary was $66,000. Other benefits – including health care, overtime and pensions – place total compensation over $100,000 for the average AFSCME employee.

AFSCME wages have grown by leaps and bounds compared with those of Illinoisans in the private sector. Between 2005 and 2014, AFSCME worker salaries grew five times faster than Illinois workers’ earnings and increased at twice the rate of inflation.

Under the previous contract, state workers receive platinum-level health insurance – a level of coverage not even available to Illinoisans on the state’s insurance exchange, let alone at the rock-bottom prices state employees pay. Taxpayers subsidize a whopping 77 percent of the average AFSCME worker’s health care, which costs taxpayers $14,880 a year per worker.

Extraordinary benefits continue even after retirement. AFSCME employees receive free health insurance at retirement simply by working 20 or more years. This benefit alone will cost taxpayers $200,000 to $500,000 per employee in today’s dollars. Career state retirees on average receive $1.6 million in pension benefits over the course of their retirement, in addition to Social Security.

But it’s not enough for AFSCME leadership.

AFSCME wants more

Gov. Bruce Rauner’s last contract offer to the union tries to rein in union costs while also avoiding widespread state worker layoffs. But AFSCME ignores the economic realties facing the state, refusing to accept a contract that is fair to both state workers and taxpayers.

Rauner wants a temporary wage freeze during the term of the contract. But AFSCME is demanding pay increases of up to 29 percent over the course of the contract.

Rauner wants a typical 40-hour workweek before overtime kicks in. But AFSCME wants overtime at 37.5 hours.

Rauner wants employees to pay 40 percent of their health care costs. This means state taxpayers will continue subsidizing 60 percent of an AFSCME employee’s health care, at $11,600 per worker annually – still a significant amount by any standard.

AFSCME is threatening to walk out on taxpayers

Because the governor has not kowtowed to the union’s outrageous demands, ASFCME is threatening to strike.

In the meantime, AFSCME shows no consideration for the people who would have to pay for increased AFSCME perks. In fact, AFSCME is not only willing to go on strike against the taxpayers, it even believes its demands should be paid for by raising taxes – a slap in the face to taxpayers in a state with the worst income recovery in the Midwest since the Great Recession.

AFSCME ignores that Illinois has the worst out-migration rate in the region – and Illinois’ high taxes are the No. 1 reason people cite as a reason for wanting to leave.

Twenty other government-worker unions have agreed to cost-saving provisions in contracts with the state. It’s time AFSCME accepts the fact that taxpayers are tapped out.

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