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

Harley an awkward ride for 'union-busting' Republican Walker - Yahoo News

 

MILWAUKEE (Reuters) - For Wisconsin Governor Scott Walker, there's something awkward about the Harley-Davidson motorcycles that he has been posing on at presidential campaign stops: each one bears a sticker on its frame that reads "Union made in the USA."

Walker has made the iconic American brand a centerpiece of his campaign kick-off tour this month, visiting four dealerships and sometimes showing off his own 2003 Harley Road King as he seeks to harness its appeal to older white male voters.

But there is another side to Harley that the Republican candidate has been less vocal about - it is a leading example of a successful company that has a strong relationship with labor unions.

Walker, by contrast, has made his union-busting credentials the foundation of his White House bid, touting it as the prime example of his leadership success and as evidence of how he can defeat powerful vested interests and even foreign enemies.

It's not clear how he can reconcile his love of the powerful, deep-rumbling bikes known as "hogs" with the strong union loyalties of those who build them.

Some of the people who build Harleys - more than a thousand of whom are unionized workers in Wisconsin - are fuming over Walker's prominent use of the bikes in his campaign.

"He's trying to make a name for himself by saying 'I took on 100,000 union workers' - and he's on our bikes," said Andy Voelzke, 57, who works at Harley's plant just outside Milwaukee and is a member of the United Steelworkers union.

"It's just such a contradiction."

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Wisconsin Governor Scott Walker shows off his motorcycle driver's license before a "Roast & …

As governor, Walker passed legislation over strong Democratic opposition to limit collective bargaining for state employees. He took another swipe at organized labor this year with a bill that forbids unions within private firms from forcing workers to pay dues.

Like other candidates in the crowded Republican primary field, Walker is hoping to connect with voters in the "Harley-Davidson" demographic, jokingly referred to as "old fat guys" and who are perceived to be mostly conservatives.

Walker may already have some ground to make up among Harley lovers. Ten out of a group of 11 riders approached by Reuters in downtown Milwaukee on Tuesday named front-runner Donald Trump as their early favorite in the race for the Republican nomination.

Seven of the riders, none of whom were from Wisconsin, said they hadn't heard of Walker.

Harley’s unions in Wisconsin could be affected by Walker's "right to work" reform passed this year. Voluntary membership could leave unions with less money to pay for negotiators and lawyers. The company will also have more power to fire employees for not agreeing to additional tasks, such as overtime shifts.

"Governor Walker believes individual workers should be free to decide on their own – without the influence of union bosses – whether they’d like to join a union and pay dues and that’s why he signed a law making Wisconsin a right-to-work state," said AshLee Strong, a spokeswoman for Walker's campaign.

A spokeswoman for Harley-Davidson, which has enjoyed solid global sales and whose share price has doubled over the past five years, declined to comment, saying its management wanted to remain neutral.

THE HOG CASE STUDY

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Wisconsin Governor Scott Walker (L), talks with Senator Joni Ernst (R-IA) before starting a motorcyc …

Harley-Davidson's relationship with its workers' unions isn't just decent; it's studied as an example of how corporations can benefit from organized labor.

"They've had disputes in the past, but Harley has never tried to kill the union and the union has always taken the attitude that it wants Harley to succeed," said Paul Osterman, a professor at Massachusetts Institute of Technology's Sloan School of Management.

"It's a successful example of labor-management cooperation."

Flags representing the United Steelworkers and the International Brotherhood of Machinists fly alongside the U.S. flag and Wisconsin's state flag at the entrance to Harley's plant on Pilgrim Road, just outside the Milwaukee city limits. Harley's global headquarters is in the city.

The plant's union leaders told Reuters they work closely with management to fine-tune production, eliminate waste and collaborate on new manufacturing initiatives.

The union is credited in the Harley-Davidson museum in Milwaukee, which is run by the company, for helping to save the firm from bankruptcy in the early 1980s.

The two sides haven't always gotten along. There have been worker strikes as recently as 2007, and Harley has experimented with efforts to offshore parts of its production.

But employees interviewed by Reuters said the company has, within the past five years, repatriated some production after workers argued it would improve efficiency.

Among the Harley riders interviewed by Reuters, Walker had a fan in William Welp Jr., 60, a retired Navy commander who now teaches at a public high school in Fort Lauderdale.

"When I first heard Scott Walker and saw him I thought: 'There's a guy who thinks just like I do,'" said Welp, who had ridden from Florida with three of his friends.

Welp said he had already donated to Walker and was against unions, even though he joined one voluntarily.

Erin Spengler, 40, a Harley rider who works at Pilgrim Road, described her anger when, in 2013, Walker climbed on a Harley to lead a motorcycle rally as part of Milwaukee's Military Appreciation Day Parade.

Spengler was supposed to participate, but at the last minute, she said, decided to stay home.

"I am not going to let this guy lead me through town like a circus when he's against everything I stand for," she said.

(Reporting By Emily Flitter: Additional reporting by Alexia Shurmur in Las Vegas; editing by Stuart Grudgings.)

Above is from:  Harley an awkward ride for 'union-busting' Republican Walker - Yahoo News

Actions by Chairman Walberg may affect Plote Construction law suit

 

 

 

 

 

 

The following was sent July 28, 2015 to the Boone County Board

 

Subject: Boone County v. Plote

As you may already be aware, I filed suit against Plote for operating beyond the hours approved by the County Board.  We obtained a temporary restraining order against Plote from Judge Tobin, and they since violated that order.  As such, we filed a motion for sanctions which was set to be heard today.

At the beginning of the hearing, Judge Tobin announced that he had an ex parte communication he needed to disclose to the parties.  In sum, he described a phone call that Chairman Bob Walberg made to him.  He said that as Chairman it was not unusual for Bob to call him, especially in regards to budget issues.  So, he saw nothing inappropriate about taking the call.  The content of the call, however, was inappropriate.  Judge Tobin described that Bob advised him that he (Bob) did not approve of the lawsuit against Plote.  At that point, Judge Tobin told Bob that he could not talk to him about the case and ended the conversation. 

He assured the parties that he was not political.  While Bob Walberg ran as a Republican, Judge Tobin ran as an Independent and did not owe anyone anything.   He then asked the parties whether they wished him to step down from the case.  I indicated that I did not wish for him to step down.  Plote’s attorney asked for another date to discuss it with his client.   An order was entered, a copy of which is attached.  

The purpose of this email is to keep the County Board apprised of what occurred in this case as it was the county board who passed the ordinance that restricted Plote’s hours of operation.  It is also to advise all members that actions such as this are inappropriate.  While there is a pending case, judges are forbidden to have ex parte communications about that case.  

Sincerely,

Michelle J. Courier

Boone County State's Attorney

 

 

 

 

Judge TOBIN

************************************************************************

 

 

If you think Chairman Walberg was “out on bounds” you may wish to call your county board members: 

 

 

Illinois House agrees to eliminate FY 2016 lawmaker raises - Yahoo News

 

CHICAGO (Reuters) - The Illinois House on Tuesday overwhelmingly approved a bill stopping a cost-of-living increase for state lawmakers in the current fiscal year, which continues to lack an approved budget.

 

The 101-1 bipartisan vote sends the measure to the Senate, which is scheduled to return to session Aug. 4.

Republican Governor Bruce Rauner has publicly criticized Democrats who control the legislature for allowing their paychecks to grow, while Illinois struggles financially.

Despite the near unanimous vote, the standoff continues between Rauner and Democrats over a budget for fiscal 2016, which began July 1.

House Speaker Michael Madigan, who sponsored the bill, said despite making "a good faith effort to meet the governor half way," the impasse continues. He said the bill follows other actions by the House to accommodate some of the governor's so-called turnaround agenda, which includes worker compensation reforms and a local property tax freeze.

"We are involved in a historic struggle between two branches of government," he said on the House floor.

The bill removes a $1,350 per legislator pay increase, saving the state $238,950. Following the vote, Rauner's office released a statement making it clear that he is still pushing for structural reforms. Last month, he vetoed most of the $36 billion budget passed by Democrats because it was short about $4 billion in revenue.

Illinois has a chronic structural budget deficit, as well as the lowest credit ratings and worst-funded pension system among the 50 states.

Illinois Attorney General Lisa Madigan, Michael Madigan's daughter, is keeping the state's options open regarding a 2013 cost-saving pension reform law voided by the state supreme court in May on constitutional grounds.

Lisa Madigan asked the U.S. Supreme Court on Monday for an extension until Sept. 10 to file a possible appeal of the ruling by the state's high court, which rejected Illinois' argument that it needed to invoke police powers and cut pension benefits to deal with a fiscal emergency.

"With the decision in the City of Chicago's pension case late last week, we are continuing to consider all of the arguments and the best next step,” her office said in a statement.

A Cook County Circuit Court judge on Friday struck down a 2014 law aimed at shoring up the shaky finances of two Chicago retirement systems. That ruling also cited protections for public worker pensions in the Illinois Constitution.

(Reporting by Karen Pierog; Editing by Matthew Lewis

Illinois House agrees to eliminate FY 2016 lawmaker raises - Yahoo News

Top Republican donor takes back call for Kirk to quit - Chicago Tribune

 

Hours after reportedly calling on U.S. Sen. Mark Kirk to halt his re-election bid, a major Republican fundraiser backtracked Tuesday and hailed Kirk as the party's best candidate for one of the nation's most hotly contested Senate seats.

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Kirk's re-election bid complicated by controversial statements

 

Republican businessman and fundraiser Ron Gidwitz told Crain's Chicago Business that Kirk's recent misstatements and gaffes have put the Illinois GOP on the defensive. "I call on him to step aside and allow other Republicans to seek his seat," Gidwitz told Crain's.

Asked about the comments later, Gidwitz told the Chicago Tribune he believes "Mark Kirk is the strongest candidate to win the seat. I fully support his re-election." Crain's also acknowledged that Gidwitz sought to retract his earlier comments.

Still, Gidwitz's initial comments underscore the uncertainty many Republicans have privately expressed toward Kirk's re-election chances in 2016 — a presidential year in which Illinois traditionally trends Democratic.

Illustrating the early intensity of the Senate contest, Kirk has found himself facing criticism over a series of controversial statements. In February, Kirk said "coffins" should be placed outside Democratic offices if the Department of Homeland Security were to be shut down in a budget dispute.

Last month, Kirk joked over an open microphone that his colleague, Sen. Lindsay Graham, R-S.C., was a "bro with no ho" because he  was unmarried

This month, Kirk questions at a Senate panel made it sound as though he thought the Consumer Financial Protection Bureau was collecting personal data on Supreme Court justices and members of Congress. Shortly before that, Kirk, an outspoken opponent to the multination Iran nuclear deal led by the White House, accused President Barack Obama of wanting to "get nukes" to the country.

Kirk apologized for the Graham comment and acknowledged that his Obama Iran comments were just "me being too carried away with" his opposition.

Kirk, who suffered a major stroke in January 2011, already was facing a difficult bid for a second term for a seat that Democrats view as one of their top targets next year.

Kirk has enlisted the resources of the Illinois Republican Party to help with his re-election, and he has the backing of GOP Gov. Bruce Rauner, whom he actively campaigned with last year.

Seeking the Democratic nomination are two-term U.S. Rep. Tammy Duckworth of Hoffman Estates and Andrea Zopp, former chairman of the Chicago Urban League. Duckworth has been endorsed by the Democratic Senatorial Campaign Committee, a move criticized by Zopp and her supporters.

Top Republican donor takes back call for Kirk to quit - Chicago Tribune

Gov. Rauner Asks Retirees, National Guard to Work in Case of Strike | NBC Chicago

Rauner's administration and AFSCME have been negotiating a new agreement, but the one-month extension expires Friday

By Mary Ann Ahern

 

Getty Images

Updated at 4:48 PM CDT on Monday, Jul 27, 2015

Retired state employees and members of the National Guard may be called upon by Gov. Bruce Rauner to step up in case of a workers' strike.

The governor's administration has called some retired state employees to determine if they are willing to come back on short-term contracts if workers represented by AFSCME — the state's largest union — decide to strike.

•  

Anders Lindall, a spokesperson for AFSCME, denied the union is planning to strike, but he said the governor's attempts to reach out to "strike breakers" suggests he wants a fight.

"To see the governor out there trying to recruit strike breakers suggests he wants confrontation, he wants a crisis, he wants disruption," Lindall said.

•  

Rauner spokeswoman Catherine Kelly did not deny that the office reached out to retired state workers and the National Guard, saying the administration is "pursuing all options."

"We are actively pursuing all options to continue important state services in the event that AFSCME chooses to strike, rather than agree to proposals similar to those recently ratified in the Teamsters," Kelly's full statement reads.

•  

Rauner's administration and AFSCME have been negotiating a new agreement, but the one-month extension expires Friday.

Above is from:  Gov. Rauner Asks Retirees, National Guard to Work in Case of Strike | NBC Chicago

Gov't: Fiat Chrysler must offer to buy back 500,000 pickups - Yahoo News

 

DETROIT (AP) — Fiat Chrysler must offer to buy back from customers more than 500,000 Ram pickup trucks and other vehicles in the biggest such action in U.S. history as part of a costly deal with safety regulators to settle legal problems in about two dozen recalls.

The Italian-American automaker also faces a record civil fine of up to $105 million. In addition, owners of more than a million older Jeeps with vulnerable rear-mounted gas tanks will be able to trade them in or be paid by Chrysler to have the vehicles repaired.

The settlement is the latest sign that auto safety regulators are taking a more aggressive approach toward companies that fail to disclose defects or don't properly conduct a recall.

The Ram pickups, which are the company's top-selling vehicle, have defective steering parts that can cause drivers to lose control. Some previous repairs have been unsuccessful, so Fiat Chrysler agreed to the buyback, according to the National Highway Traffic Safety Administration. Owners also have the option of getting them repaired, the agency said in documents released Sunday.

The older Jeeps have fuel tanks located behind the rear axle, with little to shield them in a rear crash. They can rupture and spill gasoline, causing a fire. At least 75 people have died in crash-related fires, although Fiat Chrysler maintains they are as safe as comparable vehicles from the same era.

Both the Jeep and Ram measures are part of a larger settlement between the government and the automaker over allegations of misconduct in 23 recalls covering more than 11 million vehicles. Besides the civil penalty, which was reported Saturday by The Associated Press, Fiat Chrysler agreed to an independent recall monitor and strict federal oversight. It's another step in NHTSA's effort to right itself after being criticized for lapses in some highly-publicized safety recalls.

"Today's action holds Fiat Chrysler accountable for its past failures, pushes them to get unsafe vehicles repaired or off the roads and takes concrete steps to keep Americans safer going forward," Transportation Secretary Anthony Foxx said in the statement.

In a separate statement, Fiat Chrysler said it accepted the consequences of the agreement "with renewed resolve to improve our handling of recalls and re-establish the trust our customers place in us."

NHTSA has been involved in vehicle buybacks in the past, but never one of this size. A buyback usually happens when a problem is so serious that it can't be fixed and the vehicles need to be removed from service.

Under the agreement, Fiat Chrysler has to buy back the Ram trucks for the purchase price, minus depreciation.

It's unclear just how many Rams the automaker will have to repurchase, but the cash outlay could be substantial. According to Kelly Blue Book, a 2010 Dodge Ram 1500 — one of the smaller, less-expensive trucks involved in the recalls — could fetch $20,000 in a dealer trade-in, assuming the truck has 60,000 miles on it and is in "good" condition. At that rate, if Chrysler had to buy back even a quarter of the trucks at issue, it could spend $2.5 billion.

Fiat Chrysler said more than 60 percent of the trucks already have been fixed, and the company is allowed to repair and resell the trucks it buys back.

The Jeep trade-ins could add to the tab, but they also could generate more new vehicle sales by getting customers into showrooms. Still, the total could strain the parent company, Fiat Chrysler Automobiles NV. The company posted a first-quarter net profit of $101 million and had more than $20 billion in cash and securities on March 31.

The consent order that Fiat Chrysler agreed to requires it to notify owners who are eligible for buybacks and other incentives.

Models included in the buyback offer are certain Ram 1500s from 2009 to 2012; the Ram 1500 Mega Cab 4 by 4 from 2008; and the Ram 2500 4 by 4, 3500 4 by 4, 4500 4 by 4, and 5500 4 by 4, all from 2008 through 2012. Also part of the offer are 2009 Chrysler Aspen and Dodge Durango SUVs and the Dodge Dakota pickup from 2009 through 2011.

The fine against FCA beats the old record of $70 million assessed against Honda Motor Co. for lapses in recalls of air bags made by Takata Corp.

Fiat Chrysler also received a $70 million fine, and must spend at least $20 million to meet performance requirements detailed in the agreement. Another $15 million could come due if the recall monitor finds any further violations.

Earlier this month, the safety agency held a rare public hearing where regulators detailed a litany of shortfalls: failure to notify customers of recalls, delays in making and distributing repair parts and in some cases failing to come up with repairs that fix the problems. Some of the recalls date to 2011.

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Gov't: Fiat Chrysler must offer to buy back 500,000 pickups - Yahoo News