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28 April 2011

Collective Bargaining Rights on the Decline

Wisconsin, Michigan and Ohio are not alone. According to the Boston Globe, the State House in Massachusetts earlier this week passed a bill directly affecting collective bargaining rights of public employees.  The bill was passed on April 27, 2011, by a solid margin of 111-42 in a House that is controlled by Democrats.  It now moves to the state Senate.
 
Thus far, similar measures in other states have been predominately supported by Republicans.  Regardless of politics, this movement is being promulgated to save states millions of dollars, in budgets that have barely passed with tremendous deficits.
 
The Massachusetts collective bargaining law will limit the scope of negotiations for public employees as it pertains to healthcare benefits.  The law removes these benefits from collective bargaining, giving those public employees a stake in the savings realized from changing plans for coverage.   Under the new law, mayors and other local officials are given authority to unilaterally make changes to copayments and deductibles for their employees after a 30-day discussion period and opportunity to negotiate with unions. Shares of premiums paid by employees do, however, remain on the healthcare bargaining table.

Massachusetts, much like Ohio, has many municipalities and local governments that are financially strapped.  The efforts were directed to help those municipalities and local governments avoid layoffs and a reduction in services to the communities served.  Reportedly, municipal officials set to announce layoffs to cope with budget deficits had been holding out hope that the measure will become law.

Massachusetts House Speaker Robert A. Deleo released a statement that said: “By spending less on the health care costs of municipal employees, our cities and towns will be able to retain jobs and allot more funding to necessary services like education and public safety’’.
 
The measure enacted in Massachusetts is much less expansive as compared to Ohio, but it does send a clear message to citizens that cuts are inevitable.

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