Organized Labor Claims Victory: What it Means for RI
Friday, June 15, 2012
The idea that organized labor is losing some of its clout at the State House is largely a myth, according to top union officials who say they were the big winners in the 2012 General Assembly session.
The spike in the minimum wage, increased spending on education and the restoration of funding for the developmentally disabled were all major coups, officials say, while the death of the Governor’s municipal relief package and several pieces of legislation backed by education reformers made it clear that labor still has a strong influence over lawmakers on Smith Hill, particularly in an election year.
"Labor in Rhode Island learned some valuable lesson's during the [Governor] Carcieri years,” said Patrick Crowley, government relations director for the National Education Association. “We either build solidarity across the labor movement and with workers in general or we will face what is happening in Wisconsin, Indiana, and other parts of the country. That's why all of us - public and private sector unions fight for issues like minimum wage increases, fixes to misclassification of workers, better education funding and tax equity. These issues don't just affect our members - they make a positive impact in the lives of all working Rhode Islanders.”GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST
The list goes on. An increase in penalties and enforcement activities for misclassifying workers, a conversion of jobs at the Department of health and a bill that suspends a contractor’s registration if they owe outstanding wages to workers are among the other victories labor is touting in the $8.1 billion budget, which the Senate passed early this week.
Chafee’s Package Goes Down
But the biggest wins for labor may have been the bills that were left on the cutting room floor, namely Chafee’s set of legislation that would have freed up cash-strapped communities from several mandates and allowed them to freeze cost-of-living-adjustments (COLAs). With several cities and towns on the brink of financial collapse, Chafee argued his relief package would save the state from the embarrassment of another municipal bankruptcy.
Now the outlook is bleak for the likes of Woonsocket, West Warwick and Pawtucket, three distressed communities the Governor targeted (in addition to Providence) for relief. Woonsocket, which did not get approval for the 13.8 percent supplemental tax hike it was hoping for, now has a budget commission attempting to solve it financial woes.
For Rhode Island AFL-CIO President George Nee, however, Chafee’s package would have violated contracts that were collectively bargained. While labor fell on its sword during the special session to reform the state pension system last fall, they held their ground on municipal pensions during the 2012 session.
“The working people of our state had a very productive legislative session,” Nee said “The increase in the minimum wage from $7.40 to $7.75 will benefit thousands of hard working people. We were also very pleased to see the restoration of funding for the nursing homes and the programs that serve the developmentally disabled. We applaud the legislature for recognizing the collective bargaining process and not passing any of the governor's proposals that would undermine the rights of workers. “
A Win for Special Interests
But any victory for labor comes at the expense of taxpayers, according to Rhode Island Tea Party President Susan Wynne, who questioned how anyone could celebrate a budget that raises taxes on taxi drivers and kills education reform-related legislation.
Wynne said that while “public sector union bosses slap each on the back for completing their mission,” taxi companies, dog groomers and school children are left holding the bag.
“Claiming a victory implies winners and losers,” Wynne said. “The issue should be not who ‘won’ but who lost. Clearly, special interests ‘won’ and taxpayers lost. “
Rhode Island Campaign for Achievement Now (RI-CAN) executive director Maryellen Butke was also disappointed to see several pieces of legislation she was supporting tabled, most notably a bill that would have moved the teacher layoff notification date back to June 1.
While moving the layoff date back would seemingly benefit teachers, it was attached to a Senator Frank Ciccone-sponsored bill that would have required teachers with tenure to be hired back first following layoff notifications. That was an unfair compromise, education reformers say.
"RI-CAN and our key partners supported legislation that would have reformed they way we cultivate, retain and reward effective teachers as well as bills that would have moved the teacher layoff date from March 1 to June 1. The layoff date change is such a common sense policy change - best for both kids and teachers," Butke said.
Butke said that while fully funding the education funding formula and accelerating money for distressed communities were steps in the right direction, there is still work to be done.
“RI-CAN is deeply disappointed that once again the General Assembly has failed to move on common sense reforms that we know will make our schools better,” she said.
Should Have Raised Taxes on Wealthy
Perhaps the only major loss for organized labor during the session was the inability to win support from General Assembly leadership for legislation that would have raised taxes on the wealthy. A bill sponsored by Rep. Maria Cimini would have increased taxes on those making over $250,000 by four percent. A reduction in that tax would have been tied to the unemployment rate.
Jim Parisi of the Rhode Island Federation of Teachers and Health Professionals said that while his union was pleased the General Assembly restored some of the $24 million cut from the developmentally disabled in last year’s budget, more could have been done had the legislature acted on Cimini’s proposal.
“Had the House and Senate leadership embraced the idea of raising income taxes on the richest two percent of Rhode Islanders, the State could have done more to restore [developmentally disabled] funding while creating more desperately needed jobs and helping our cash-strapped cities and towns,” he said.
Dan McGowan can be reached at [email protected].
