AFSCME negotiations: Union shows no signs of compromise, continues pushing for unaffordable contract

The testimony of the American Federation of State, County and Municipal Employees before the Illinois Labor Relations Board and the union’s refusal to compromise on any contract provisions reveal that AFSCME and Gov. Bruce Rauner have reached impasse.

Gov. Bruce Rauner and Illinois’ largest government-worker union, the American Federation of State, County and Municipal Employees, have been at odds for months over a new contract, with the union showing no sign of consideration for state taxpayers.

Negotiations have stalled, as AFSCME officials haven’t been willing to back down on demands for a contract that Rauner says will cost more than $3 billion. On April 25, impasse proceedings began between Rauner and AFSCME, to decide whether the parties have reached a stalemate in their negotiations. Impasse proceedings on the stalemate between Rauner and AFSCME continue before the Illinois Labor Relations Board – the cost to taxpayers of AFSCME’s pay and benefits lies in the balance.

The state has argued that the governor’s proposals to AFSCME are necessary to mitigate the state’s current financial crisis and ease the economic burden placed on taxpayers by AFSCME’s demands. Should the labor board agree, Rauner would be able to implement his last and best contract offer. But first it is AFSCME’s turn to present its case – and its presentation so far reveals that the union is taking an unreasonable all-or-nothing approach that shows no regard for the state’s taxpayers.

While Rauner has offered a number of proposals aimed at easing the state’s financial burden and avoiding widespread layoffs, AFSCME continues to demand guaranteed four-year wage increases, Cadillac health insurance coverage at little to no cost to union members, and a workweek that includes overtime for workers after 37.5 hours.

The state has made a number of concessions during negotiations, such as withdrawing proposals regarding changes to the pension system. But the union has spurned the state’s offers, even rejecting provisions that include bonus pay for employees with exceptional performance, as well as a $1,000 signing bonus for every employee if the contract were ratified by Jan. 1, 2016.

At the hearing before the labor board May 4, AFSCME Deputy Director Michael Newman stated that, because the governor’s contract proposals will not alone alleviate the state’s financial crisis, the state can claim no financial “justification” for those proposals at all.

AFSCME’s stance defies common sense. There is no “magic bullet” that will solve all of the state’s financial issues in one fell swoop, and insisting on one is unreasonable and will ultimately lead to the state’s financial ruin.

Regaining fiscal stability incrementally is better than not regaining it at all – and Rauner’s contract proposals would have a meaningful impact on the state’s bottom line. In a letter to state employees, Rauner explained that AFSCME’s wage-increase demands alone would cost the state nearly $1 billion – an amount that would go a long way toward cutting the state’s unpaid bills or shrinking its deficit.

As Newman’s testimony demonstrated, AFSCME appears to want no part in taking steps that may ease the burden on the state’s taxpayers.

AFSCME’s refusal to compromise for the wellbeing of the state’s taxpayers stands in stark contrast to at least 17 other government-worker unions that have already struck contract agreements with the state that would bring labor costs more in line with what taxpayers can afford. For example, the Teamsters reached an agreement with the state in August 2015. That agreement includes a four-year wage freeze, continuation of a 40-hour workweek, and the implementation of a bonus system for employees meeting or exceeding expectations.

The impasse proceedings are scheduled almost daily through May 26. And if AFSCME’s testimony so far is any indication, its refusal to compromise on any provisions that might save taxpayers money indicates that the parties have indeed reached impasse.