Little To Say
SEBAC’s Matt O’Connor
& Larry Dorman
Photo by Steve Kotchko
Posted 6/27/11
William Shakespeare penned a romantic comedy titled Love’s Labour’s Lost, but last week at the State Capitol a political tragedy unfolded that would best be titled labor’s loves lost. State employee unions rejected that much-publicized $1.6 billion labor concessions deal designed to help end the state deficit and balance Democratic Gov. Dannel Malloy’s first two-year budget.
Malloy and labor and the Democrat-controlled General Assembly were supposed to be simpatico, working together to prove Malloy’s “shared sacrifice” fiscal pitch could put Connecticut back on the right track. Citizens were asked to pay higher taxes, state programs would be cut to save money, and state employees would agree to wage and benefit “give backs”.
Though at least 60% of state workers voted “yes” on concessions, the hard-to-explain rules used by SEBAC (the state employee bargaining agent coalition) required a certain number of individual unions to approve the pact, and by that standard the deal failed.
Malloy was displeased, though he would not let his anger show in public, instead stating simply that he wanted to “move forward.” That apparently will include triggering some 7500 state employee layoffs and asking lawmakers for more authority to cut state spending on his own.
Many Democratic lawmakers, usually allied with labor, were stupefied by the union rejection of the deal. State Sen. Edith Prague (D-Columbia), co-chair of the legislature’s Labor Committee told the Hartford Courant the state workers decision to dump the deal was “a nightmare” and she added: “Nobody in their right mind, under these circumstances, would turn down that agreement.”
State Senate President Pro Tempore Donald Williams (D-Brooklyn), the top Democrat in the Senate, a legislative leader who fought for labor-related bills many times at the Capitol, stated that rejection of the labor deal by state employees “does more to them and the cause of labor than anything their enemies could possibly achieve.”
Matt O’Connor and Larry Dorman, two hard-working union spokesmen for SEBAC, found themselves in the hot seat trying to explain to reporters what happened and why. At times, they seemed to be stretching it, claiming that Republican legislative leaders, left-over Rell-era department managers, and a small conservative think tank called the Yankee Institute worked a disinformation campaign among state workers. Is it really plausible that unionized state workers, used to criticism from anti-labor elements would put more faith in their words than the explanations of union leaders?
As usual at the Capitol, you can find a plethora of reasons on why state employees trashed the concessions package that some had called a “sweetheart deal” from Malloy, guaranteeing—if accepted—no layoffs for four years, a wage freeze now—but wage hikes later, some changes in healthcare, and reforms in pension rules.
It appears many state workers were wary of wellness health care provisions that required more attention to annual physicals and doctor’s orders, and some feared the deal would push state employees into a questionable state health care plan instead of allowing a choice of private plans.
Other state employees were tired of politicians and administrative higher-ups spending and wasting state money and expecting rank-and-file workers to make up for their excesses over the years with wage and benefit concessions.
There was also speculation that veteran state employees, who’ve faced layoff threats from many governors, resented Malloy’s threat to lay off thousands if the deal was rejected—including those with 10 to 20 years of service. They knew the seniority system better than Malloy and decided to keep their benefits, voted “no” and called his bluff. Malloy conceded last week that his reach on layoffs is not as deep as expected, and that “if you have more than 10 years seniority, you might be pretty safe.”
What happens next is anybody’s guess. We will update you here if big changes occur this week.
For now, Malloy says he can’t stop to be disappointed or angry about the labor rejection. He vows to act swiftly to put the state budget in balance without the labor concessions. Malloy said this will include some 7500 state employee layoffs.
He also ordered the legislature into special session June 30th to take action on the budget. He wants lawmakers to give him more authority to cut spending on his own. That could be a problem. The Democrat-controlled legislature denied a similar request from Republican Gov. Jodi Rell, and dissed it as a power grab. When Malloy asked for something similar earlier this year, the legislature quietly shelved the proposal. Now it is back.
The state employee unions are in a very negative spotlight and it is uncertain if they can find a way out—but their spokesmen seemed to be saying last Friday that SEBAC leaders are searching for a rescue plan.
SEBAC officials are meeting June 27 to finalize the voting results and at that time “they have a lot of decision-making to do”, according to spokesman O’Connor. What those decisions are, O’Connor would not—or could not say.
However, spokesman Dorman stated that the union leaders are “well aware of what’s happening around us, and we’ve said we don’t want to see mass layoffs and economic dislocation.”
Reporters peppered the SEBAC spokesmen with questions about potential options: a re-vote by one or more unions, a re-negotiation with Malloy, some kind of re-jiggering of the controversial health elements, and other actions. None of those items seem very doable under the tight SEBAC rules, but allowing the deal to collapse and disappear could create problems for the unions for years to come at the Capitol.
Dorman hinted SEBAC wants to try to avoid political nuclear destruction. “We just can’t stand here today with the answers, but we’re not done talking, and we’re certainly not done fighting,” he said. If that suggests there will be an effort to revive the concessions deal, it will take some creative rules interpretations to make it happen.
The state employee unions need some kind of miracle to restore their standing with Malloy, their Democratic allies in the legislature, and the general public. The loves labor has lost must be restored, because across America, labor politically is under siege.