Rauner, AFSCME reach another contract extension; governor vetoes bill to prohibit strike, lockout - News - The State Journal-Register - Springfield, IL

 

• Doug Finke, State Capitol Bureau

  Posted Jul. 29, 2015 at 3:54 PM
  Updated Jul 29, 2015 at 9:04 PM

  Gov. Bruce Rauner's administration and the largest state employees union have agreed to a two-month contract extension while negotiations continue on a new labor agreement.

  At the same time, the Republican governor vetoed a bill that would prohibit either a strike or lockout and provide for an independent arbitrator to resolve the contract talks.

  Rauner said the bill would put the fate of the contract into the hands of an unelected arbitrator "to impose billions of dollars of new costs on our taxpayers without any involvement of the executive branch, the General Assembly, or those taxpayers."

  The agreement was signed Wednesday between the administration and Council 31 of the American Federation of State, County and Municipal Employees, which represents about 38,000 state workers.

  The agreement says that "neither side will resort to strike, work stoppage, work slowdown, or lockout between August 1, 2015 and September 30, 2015, or until impasse is reached, whichever comes later."

  It also says that if a new labor agreement is not reached by the end of September, both sides will meet no later than September 29 "in order to negotiate whether this agreement should be modified and if so how."

  The agreement means the terms of the old contract that expired June 30 remain in effect. However, the agreement also says the state and AFSCME disagree about whether the state is obligated to pay step increases and semi-automatic promotion increases (known as longevity raises) while a new contract is not in place. The raises are not currently being granted.

  AFSCME issued a statement saying the agreement will allow the two sides to continue working toward a permanent contract.

  "Even so, the parties remain very far apart on many basic issues as a result of the Rauner administration's continued extreme demands that would undermine public services, strip the rights of public service workers, reduce access to health care and make it impossible to keep pace with the rising cost of living," AFSCME said.

  In an update about bargaining sent to members last week, AFSCME said the administration wants to freeze wages for the term of the contract and restructure health care benefits, which would result in a 500 percent increase in out-of-pocket costs.

  The union on Wednesday also noted that "reports revealed that the Rauner administration is soliciting strike breakers, including retired state employees and potentially the Illinois National Guard."

  "These actions suggest the Rauner administration is planning a work stoppage that would be counter to the public interest," AFSCME said.

  The State Journal-Register reported Sunday that state agencies have contacted some retirees asking if they would be willing to return to work on short-term contracts in the event of a strike.

  Page 2 of 2 - A memo to agency directors from Rauner's general counsel, Jason Barclay, obtained by the SJ-R, denied the administration has any intent to lock out workers.

  "Contrary to incendiary comments in AFSCME's newsletters that have been reported publicly, with or without a (extension agreement) the governor will not lock out state employees," Barclay said in the memo. "We have told AFSCME that, but they have refused to inform their members."

  Rauner said he vetoed Senate Bill 1229 because it is "undemocratic, it is bad for our budget and it is unconstitutional."

  "Senate Bill 1229 is also based on a false premise that our administration has been unreasonable in labor negotiations and wants to lock out employees or prompt an employee strike," Rauner's veto message said. "Nothing could be further from the truth. We have negotiated in good faith with AFSCME since shortly after I took office."

  Rauner said the administration has made "significant concessions" since its initial proposal. He also again raised an agreement the administration reached with a Teamsters union local in Cook County that included a wage freeze for the life of the contract and provisions for a 40-hour workweek.

  "The Teamsters, to their credit, were realistic about the state's dire financial condition," Rauner wrote.

  Rauner said AFSCME's contract proposal would cost the state $1.6 billion in salary and pension expenses and eliminate $500 million in health care savings. In his memo, Barclay said AFSCME is seeking an 11.5 percent pay increase over four years, five weeks of vacation and a 37.5 hour workweek. He said the union also wants more expensive health care benefits.

  "Because they are unelected and unaccountable, arbitrators can decide to impose on the state the union's proposals without regard to the dire impact those proposals will have on our fiscal stability," Rauner said. "If an unaccountable arbitrator awards AFSCME's contract, the clear losers will be the state's taxpayers."

  Lawmakers could attempt to override Rauner's veto, but it may be difficult. The Senate passed the bill with enough votes to override, but the House did not.

  — Contact Doug Finke: doug.finke@sj-r.com, 788-1527, twitter.com/dougfinkesjr.

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Rauner, AFSCME reach another contract extension; governor vetoes bill to prohibit strike, lockout - News - The State Journal-Register - Springfield, IL