ON THE 1 1 #147 • JUNE-JULY 2012 Chicago , IL PAID Permit No. 112 U.S. Postage Non-Profit Org Illinois Council 31—American Federation of State, County and Municipal Employees—AFL-CIO Protest targets Emanuel health cuts See page 4 2 On the Move June-July 2012 DIRECTOR’S REPORT On the Move Time to fight back — We have to tell our story AFSCME Illinois On the Move is published 8 times annually by Illinois Public Employees Council 31 of the American Federation of State, County and Municipal Employees, AFL-CIO. Send correspondence to: lcohen@afscme31.org or: AFSCME, On the Move, 205 N. Michigan Ave., 21st Floor, Chicago, IL 60601 Henry Bayer, Executive Director Roberta Lynch, Deputy Director Linc Cohen, Editor Dolores Wilber, Designer Public employees don’t deserve the attacks we’re getting B usiness leaders, editorial writers, antigovernment elected officials – all have their sights set on us. They want our wages cut, our pension slashed, even our basic right to bargain eroded. w BY H E N RY B AY E R WE HAVE THE TRUTH ON OUR SIDE. Cover photo Illustration by Linc Cohen THERE ARE GUNS BLAZING AT PUBLIC EMPLOYEES FROM EVERY DIRECTION. And the arms suppliers – the infamous Koch brothers, noted backers of the nefarious Badger State Gov. Walker; the corporatefunded ALEC, the American Legislative Exchange Council; and others of their ilk – have the deepest of pockets. Here in Illinois the Civic Federation, the Commercial Club of Chicago, Caterpillar CEO Douglas Oberhelman, and even the owner of Jimmy John’s, whose pockets are stuffed with as much bread as his sandwiches, have all provided firepower to bombard public-sector workers. And politicians from both parties have enlisted in their army. Only four years ago, after having brought the economy to its knees, the bankers, hedge fund managers and other magnates of the financial world were in disrepute for the destruction they wrought. But these honchos didn’t slink off into the corner and allow themselves to be exiled for their misdeeds. Instead they deftly pivoted to aim the guns, which had been pointed in their direction, at us. All of a sudden the people who destroyed millions of jobs are calling themselves “job creators.” Suddenly, the sluggish economy wasn’t the result of reckless investments or an unsustainable housing bubble. No, according to their narrative, the problem is the burden imposed by public employees, whose all-powerful unions had achieved compensation levels the public could no longer afford. First, they went after the bargaining rights of teachers, then pensions for new hires, then pensions for current employees; then pensions and insurance benefits for all retirees. And thanks to a compliant legislature and a supine governor, they are making steady gains. On the surface it may all seem inevitable. It isn’t. Despite the millions of dollars spent to attack teachers, and Mayor 1% Rahm Emanuel’s use of the bully pulpit, teachers remain widely popular among Chicago voters. Similarly after spending millions of dollars trying convince the public that our pensions need to be slashed, polls show that, while voters think we should pay more for our retirement, there is not broad support for cutting benefits. The problem for us is that we haven’t yet been able to get the real facts out to the public. Illinois is indeed in a deep financial hole, and that provides the justification for cuts to employee pay and benefits, as well as to health, education and public-safety programs. Emanuel is trying to convince Chicago taxpayers that the choice is cutting vital services or raising property taxes to pay for pensions. Gov. Quinn and legislative leaders are peddling the same message: it’s either lower benefits for employees or fewer services for the public. If those were the only alternatives we would be doomed. They’re not. Two-thirds of Illinois corporations pay not a dime in state income tax; and even those who do pay something get government handouts they don’t need. Take one example: last year the State of Illinois gave the Chicago Mercantile Exchange an $85 million tax break. If that money, which now goes into already-full pockets of a relative handful of CME shareholders, were appropriated into the pension funds, it would generate $98 billion. The list of such giveaways abounds, yet no one’s saying the state can no longer afford these handouts to folks who don’t need them. Our state’s tax system is upside down. When you factor in income, sales, property and other taxes, low- and middle-income folks are paying a higher percentage of their paychecks than people at the top. That needs to be changed. The corporate chieftains who complain about Illinois taxes and sing the praises of Indiana fail to mention that, according to a recent study, if the Land of Lincoln adopted its neighbor’s tax structure Illinois would have $6 billion more each year to help fund education, public safety and other vital services. Rich people aren’t paying their fair share of taxes, and that’s robbing Illinois citizens of the services they need. We need to do as the corporate chieftans did after taking some heavy body blows. We need to come back swinging. We don’t have their deep pockets, which pay for a nonstop media barrage and gain them access to a lot of back rooms, but we do have the truth on our side. And we have a public with the same interest as us in continuing vital services and with a sense of fairness that’s not part of the other side’s calculations. It’s going to be up to every one of us, in whatever way we can, to tell our story — to remind our friends and neighbors of the vital work we do, to stop being put on the defensive and to take the offensive against politicians who are shielding the wealthy and dumping on us. We’re not the problem, we’re a very big part of the solution. Council 31 Executive Board Officers STATE EXECUTIVE VICE-PRESIDENT Lori Laidlaw, Dixon CC Local 817 CITY/COUNTY EXECUTIVE VICE-PRESIDENT Carmin Willis-Goodloe, Cook County Hospital, Local 1111 PRIVATE SECTOR EXECUTIVE VICE PRESIDENT Yolanda Sims, Hope Institute Local 2481 UNIVERSITY EXECUTIVE VICE-PRESIDENT Dorinda Miller, U of I Clericals, Local 3700 SECRETARY Barney Franklin, City of Chicago, Local 2946 TREASURER Rob Fanti, Sheridan CC, Local 472 Board Members S TATE C ONFERENCE B OARD CO-C HAIRS Gloria Arseneau, (RC-14), Northeastern Illinois State employees, Local 2794 David Ford, (RC-63), Murray DC, Local 401 Randy Hellman, (RC-6) Pinckneyville CC, Local 943 REGION I V ICE -P RES IDENTS (COOK AND L AKE COUNTIES ) Patricia Ousley, Department of Employment Security, Local 1006 Ed Schwartz, Cook County DCFS, Local 2081 Eva Spencer-Chatman, Chicago Read MHC, Local 1610 Laverne Walker, City of Chicago, Local 505 Kevin Johnson, city of Evanston, Local 1891 REGION II V ICE -P RES IDENTS (NOTHERN I LLINOIS ) Gary Ciaccio, Shapiro DC, Local 29 Ralph Portwood, Stateville CC, Local 1866 Garry Cacciapaglia, city of Rockford, Local 1058 REGION III V ICE - P R ES IDENTS (CENTRAL I LLINOIS ) Gary Kroeschel, Sangamon County State employees, Local 2224 Matt Lukow, Springfield Area State employees, Local 1964 David Morris, Illinois State employees, Local 805 Cameron Watson, Jacksonville CC, Local 3549 Trudy Williams, Fulton County Sheriffs Dept. & Courthouse, Local 3433 REGION IV V ICE -P RES IDENTS (S OUTHERN I LLINOIS ) Cary Quick, Choate MH/DC, Local 141 Barb Reardon, Southern Illinois State Employees, Local 1048 Trus tees Ken Kleinlein, (RC-6) Western CC, Local 3567 Kathy Lane, Northwestern Illinois State Employees, Local 448 Tom Minick, Moline Schools, Local 672 Retiree Chapter 31 Repres entativ e Virginia Yates On the Move June-July 2012 3 STATE BUDGET Fight continues for state services and jobs warned that the new setting lacked sufficient staff to ensure safe transfers in and out of bed and a wheelchair. Those concerns were ignored. Critical services could be lost A fierce battle by thousands of AFSCME members rages on despite adoption by the General Assembly of a FY 2013 budget with adequate funding to keep open the 14 state facilities Gov. Pat Quinn had targeted for closure. w AS OTM WENT TO PRESS, THE GOVERNOR’S OFFICE INSISTED THAT HE WOULD MOVE FORWARD with most of the closures, despite the General Assembly’s efforts to prevent them. The budget won’t take its final shape until signed by the governor, or even longer if he uses his veto pen to make changes. But employees at a number of the facilities slated for closure have already received layoff notices, and plans to shut down operations are proceeding without regard for the consequences to affected employees or the vital services they provide. AFSCME lobbyists and thousands of members worked intensively over the past months to prevent the damage that Quinn’s original budget proposal would have wrought. They won a huge victory when the General Assembly restructured the budget to come up with the funds to prevent the closures and the loss of more than 2,000 jobs in communities across Illinois. Lives hanging in the balance NOW AFSCME MEMBERS AND legislators alike are angry and frustrated that Quinn seems prepared to try to override the will of the legislature. A June 19 news conference in Carbondale included Sen. Gary Forby, state Reps. Mike Bost, R-Murphysboro, and Brandon Phelps, D-Harrisburg, and more than 100 AFSCME members. Speaking out against the slated closure of several downstate facilities, Rep. Phelps expressed the outrage that many feel: "I think that's absolutely a slap in the face for Southern Illinois and Downstate Illinois.…. he keeps saying he's the 'jobs governor'. How can you call yourself the 'jobs governor' when you want to cut over 500 jobs in Southern Illinois?" In the weeks after the legislature adjourned, operations at the facilities slated for closure were in chaos, with no clear plan of action and lives hanging in the balance. At Jacksonville Developmental Center, for example, a private agency which has been hired to find new placements for the individuals who live there was rushing into transitions at a dangerous and irresponsible pace. AFSCME members report that in one instance, an individual moved out by the contractor fell from a lift and suffered a broken femur that required surgery and hospitalization. Staff at JDC had OTHER BUDGET-RELATED developments include: • At Tinley Park Mental Health Center, employees have already been laid off, with over half able to move into positions at nearby facilities. The individuals Tinley served will supposedly have access to health care in the private sector, but no sound policies were put in place to ensure that such care will be available. A lawsuit by mental health advocates seeking to assure such services was rejected by the courts. • Singer MHC is also targeted for closure, but the administration has not begun the closure process. Murray Center fate uncertain Adult Transition Center in Carbondale. • Dwight CC and ATCs in Decatur and Chicago are also slated for Aug. 31 closures. • IYC Joliet is scheduled to close Oct. 31. State Treasurer Dan Rutherford said these moves are “not good for public safety. When you close down major facilities like that, what you are doing is putting more people into a system that's already overcrowded. With that you add … more danger to the inmates themselves and to the staff that work there." • The Peoria and Fox Valley ATC closures have been indefinitely postponed and are not part of any pending layoff plan, according to statements from the governor’s office. State parks and recreation areas in limbo Family Services than the governor’s original budget plan. The $25 million staffing reduction could result in more than 375 layoffs seriously hinder the state’s ability to safeguard children. The union is reaching out to other concerned groups to build support for restoring these funds. “I urge you to direct DCFS to refrain from making the cuts that the budget as enacted would entail and to instead notify the General Assembly that you intend to request a supplemental appropriation to allow DCFS to retain its proposed headcount and remain legally compliant,” Council 31 Director Henry Bayer said in a letter to the governor. “To do otherwise puts the safety of children at risk, as well as jeopardizing the legal position of the state of Illinois.” A long fight ahead • LEGISLATION TO EXPAND THE use of fees by the Department of Natural Resources died in the final days of the legislative session, but the final budget as approved will be sufficient • THE GENERAL ASSEMBLY’S Human Services budget allocates money that can be used either for facility operations or transition to the commu- Champaign-area union members protest cuts to the State Police telecommunications centers. nity. The closure process at Murray DC, originally slated for 2014, DHS facilities: has not yet been started. • The legislature’s budget No clear plan of action does include adequate fundand lives ing for the Animal Disease hanging Laboratory in Carbondale. in the balance. The governor’s office refused to confirm whether the lab and Murray closures would go forward, saying a final deterto maintain the agency’s curmination would be made rent services and staffing. shortly. • Consolidation of State • The Carbondale Forensic Police telecommunications Laboratory’s fate is uncertain, was modified, with the budget but the budget for the forenfunding 15 sites, down from sic division was cut. the current 20 but more than the governor’s proposed Correctional, Juvenile reduction to four sites. Justice facilities DCFS cutbacks puts • THE ADMINISTRATION HAS children at risk indicated it is moving forward with closure plans for MurLEGISLATORS CRAFTING THE physboro Youth Center, final budget decided to make Tamms Correctional Center much steeper cuts to the and the Southern Illinois Department of Children and THE CLOSURES AND LAYOFFS ARE part of a strategic thrust in an ongoing war to wipe out Illinois’ long, proud history of providing a wide range of critically needed, high-quality public services. More battles are on the horizon, with many legislators, much of the major media and Gov. Pat Quinn all promoting deep state spending cuts, claiming the state can no longer afford to provide a first-class education to all its children, safe communities for working families or social services for those in need. “It’s a trend that can only be reversed by getting the state’s wealthiest families and biggest corporations to pay their fair share of taxes,” said John Cameron, Council 31 director of political and community affairs. (See FebruaryMarch On the Move, page 14: “Fairer taxes needed to fix state’s budget woes.”) AFSCME will continue to work with concerned legislators to “build the broadest possible support to preserve jobs and vital services and to prevent budget cuts that would harm dedicated employees and the important services they provide,” Bayer vowed. 4 On the Move June-July 2012 CHICAGO Laid off library workers recalled; sad news in mental health clinic fight mobilize clients of the city’s clinics, gained national attention when they marched through city streets to Mayor Rahm Emanuel’s front yard. And a group led by STOP was continuing to occupy a vacant lot across from a shuttered city clinic in Chicago’s Woodlawn neighborhood. "Clients have reported problems securing appointments with new Morley had predicted that she private would die without the services providers and many she was getting at her neighare not borhood clinic. Shortly after the city went through with the getting closures, her prediction came the sevices true. (See a clinic therapist’s they thoughts on this heart-rendneed," ing loss, at right). according But the clients, advocates to the and clinic workers haven’t Mental given up the fight to reverse Health the city’s retreat from providMoveing mental health services. ment. Meanwhile seven Chicago A march on Department of Public Health the mayor’s house neighborhood clinics, which provide primary medical care SOME 800 SUPPORTERS, ORGAto low-income and uninsured nized residents, by the were Mental turned Health over to Moveprivate ment vendors and at the STOP, end of a South June. Side The comEmanuel munity adminisgroup tration that has AFSCME members spoke out at a mental Health “wants to Movement news conference outside of City Hall. helped H elen Morley, who said she was fighting for her life in the battle to keep city of Chicago mental health clinics from closing, lost her battle. w A troubled soul, an advocate, a role model A mental health clinic therapist writes about the late Helen Morley, a woman who struggled with mental illness for years yet managed to become a powerful advocate for the city services that she found life-saving. Suddenly last week, Helen Morley died. Ms. Morley spoke repeatedly and publicly about how she counted on CDPH employees in general, and AFSCME members in particular, to help sustain her modest quality of life. Seemingly, she was pleased with their efforts. For at least 14 years, she spoke at dozens of community forums, budget hearings, town halls and aldermanic settings to emphasize the difference CDPH mental health services had made in her life. Just this spring, she was arrested and jailed in her efforts to bring attention to the need to sustain the city mental health clinics. What she provided was a face and voice for hundreds in the city and state who were equally vulnerable, but less capable of expressing their considerable needs. While there are numerous organizations who nobly advocate for persons like her, what she provided was an unfiltered, first-hand account of her plight, and the public services that helped her to cope with it. She had been advocating for so many years, she was occasionally a role model for those who otherwise would have never considered joining a similar cause. These persons can express the need for strong public services with more eloquence (and maybe sympathy) than we could ever do on our own. Rarely has there been a greater need to develop alliances with those we have historically served. get out of the business of providing health services,” Local 505 President Laverne Walker said. Laid-off library workers called back WITH BOOKS PILING UP WAITING to be shelved and overtime costs mounting, the Chicago Public Library has moved to recall 80 employees who were laid off last winter in the wake of budget cutbacks. The employees are library pages, part-time workers whose main job is reshelving books. The move came after the union, which has been steadily pressing for recalls, presented documentation showing that overtime costs have significantly increased, with other, higher-paid library employees being forced to take over the work of shelving books. The union is continuing to press for the recall of the remaining laid-off pages. Pressure from patrons makes a difference “PEOPLE FROM THE COMMUNITY, library patrons and union members have been putting pressure on this administration,” Local 1215 President Carl Sorrell said. “We have demonstrated that pages are important to how the library runs.” The Emanuel administration had originally proposed laying off more than 250 library employees and drastically reducing branch hours. Public outcry eventually led to the cutbacks being significantly scaled back. Bringing back the pages will result in significant benefits to library patrons, giving them access to more of the system's books and freeing up other library staff, who will have more time to answer questions, provide guidance and conduct popular programs. “The branches are now back up to 48 hours for the summer,” Sorrell noted. “We are hoping that will continue in the fall.” City bargaining team focuses on privatization I f AFSCME members were hoping that the end of the Daley era would mean easier negotiations with the city of Chicago, those hopes were dashed even before voters had chosen his successor. wFrom the very start of his RAHM EMANUEL WAS THE PRESUMPTIVE WINNER FAR IN ELECTION DAY, YET he still saw the campaign as a chance to launch attacks on city employees, and he hasn’t let up since. ADVANCE OF reign, Chicago’s new ruler began delivering on his antipublic-worker promises – taking raises away from teachers and demanding that they work longer hours without compensation; demanding takeaways and furlough days from city employees and signaling his intention to continue and accelerate the outflow of city jobs into the private sector. Now AFSCME members who work for the city have begun bargaining for a new contract to replace the one that was scheduled to expire June 30 and is now temporarilly extended. And one of their highest priorities is to put strict limits on the city’s ability to privatize AFSCME jobs. An outflow of taxpayer dollars “IN MY OPINION PRIVATIZATION is out of hand,” said Local 2946 President Barney Franklin. “The new mayor says privatization would be good for the taxpayers of Chicago, but he’s putting those very taxpayers out of work.” Franklin noted that city employees are required to live in Chicago, where they pay taxes, shop at local stores and contribute to their communities. But contractors can hire workers who live anywhere in the region, giving the work to people who don’t have the same commitment to the city. “Our tax dollars are leaving the city at an accelerating rate,” Franklin said. “We need a stronger provision in the contract to stop that.” City services are suffering, too, he said, as experienced Continued on the facing page On the Move June-July 2012 5 Judge sends state pay case / back to arbitrator A FSCME’s legal battle to get contractually mandated pay raises into the pockets of some 30,000 state employees took another turn on Monday, July 2, in its tortuous trip through the state’s legal system. COOK COUNTY CIRCUIT COURT JUDGE RICHARD BILICK read his ruling in court remanding the case back to Arbitrator Benn for a fact-finding proceeding as to the state’s ability to pay the increases. Though he had not yet issued a written ruling at press time, Billick said, in essence, that he was upholding the union’s argument that the state is contractually obligated to pay the increases, and sent it back to the arbitrator to determine the w Continued from the facing page civil servants are replaced with less qualified contractual employees. “We used to have civil engineers to oversee all new sewer work. We lost those. We lost a microbiologist, who worked on testing drinking water. We’ve lost a lot of support staff, clerical and data entry operators.” Health services on the chopping block ANOTHER AREA WHERE PRIVATIzation is a major concern is in Public Health. “Privatization has hit this department hard,” Local 505 President Laverne Walker. “The mayor and the commissioner are disrespecting our clients and the employees who have given years to providing services to these clients.” Walker said the adminis- tration “wants to get out of the business of providing health services.” To get that done, she said, “They are giving misinformation about what the private agencies can do to pick up these services.” Seeking a bar to privatization GIVEN THE ALL-OUT DRIVE FOR privatization, the union will push in the contract negotiations to put up a “Stop” sign on privatization. But getting agreement on that proposal, as well as maintaining the economic security that union members have worked so hard to achieve, will be a big challenge in the present climate. Negotiations got underway in early June and will focus initially on strengthening job rights, before tackling wages, benefits and other economic issues. Members of the negotiating committee know they’ve got a long road ahead. “I don’t see negotiations going very quickly,” Franklin said. “We think there will be a slew of things they want us to give back. But that doesn’t mean they’ll get it.” Walker sees the current contract battle as “the hardest fight we’ve ever had. This mayor intends to take everything he can. Our members will have to stand stronger than they’ve ever stood before. If we do, we may not get everything we want, but we can get more than he intends to give us.” extent of the state’s liability, based on current appropriations and the state constitution. "State employees are understandably frustrated by the delay in securing the pay they're entitled to," Council 31 Director Henry Bayer said. "We are prepared to make our case before the arbitrator and hopeful that justice will prevail when we do. State employees repeatedly deferred pay to save the state hundreds of millions of dollars, and it's long past time Pat Quinn kept his end of the bargain." After turning in briefs on March 26, attorneys for the union and the state were in Cook County Circuit Court for a June 26 hearing on the case. The case originated when Gov. Pat Quinn announced in early 2011 that he was withholding the contractually obligated raises and step increases because of inadequate appropriations by the General Assembly. Council 31 immediately took the matter to arbitration, where Benn ruled that the state was in violation of the collective bargaining agreement and ordered that the raises be paid. Rather than complying with the arbitrator's order, the Quinn administration filed an appeal in Cook County Circuit Court. AFSCME filed a counter-suit asking for a ruling to affirm the arbitrator’s decision and order payment of the raises. The suit and counter-suit were combined into a single case. In a related action, a Federal Court of Appeals upheld a District Court decision dismissing Council 31's lawsuit, which alleged that the state of Illinois' failure to pay a negotiated wage increase violated the U.S. Constitution. The Appellate Court, in its May 17 decision, held that the state was immune from suit in federal court because the union's lawsuit was seeking monetary relief. The court also held that the lawsuit did not present a federal constitutional issue. It noted that AFSCME had successfully pursued a grievance to arbitration over the state's breach of contract and that the state's defense to enforcement of the favorable arbitration award was based upon a state law that existed prior to the contract. “We knew this would be a long and bumpy road,” Council 31 Director Henry Bayer said about the legal efforts to enforce the contract’s pay provisions. “We will pursue justice as long and as far as it takes.” 6 On the Move June-July 2012 Romney: ‘Cut back on government’ and take on unions H e comes from the 1 percent. His campaign is being funded by the 1 percent. And the policies he’s backing will surely serve the 1 percent. w MITT ROMNEY IS NO FRIEND OF PUBLIC EMPLOYEES. HE RECENTLY CRITICIZED PRESIDENT OBAMA for supporting aid to state and local governments, saying: “[Obama] says we need more firemen, more policemen, more teachers. … It’s time for us to cut back on government.” And Romney has made it clear that he’s no friend of working families or the unions that they rely on to give them a voice on the job and in the political arena. Instead, he blames unions for the nation's economic troubles. • "Labor has asked for too much and business people have exceeded their demands only to see the business ultimately fail," he told the Ames Tribune's economic board last December. "That's what happened to GM and Chrysler. The demands of labor unions over time killed those businesses and made America become less competitive." • “Labor unions reduce investment and slow job growth,” his website claims, citing “non-partisan scholars.” • “Too often, unions drive up costs and introduce rigidities that harm competitiveness and frustrate innovation,” according to the website’s “Labor” section. • “By guarding against coercion and intimidation in the workplace, we can secure the rights of employers and employees alike and protect our economy from harm.” Labor policy designed to secure the rights of employers? wrong with education? “I want there to be action taken to get the teacher unions out,” he has said. On public employees, Romney promises: “We will stop the unfairness of government workers getting better pay and benefits than the taxpayers they serve." give in to the UAW, and I sure won’t.” Yet the auto companies have already paid back most of what they owe the government. Union workers made significant concessions to save their jobs and the U.S. industry. And U.S. car sales are booming. No help for auto Right to work – for less HE OPPOSED THE PRESIDENT’S plan to rescue the failing auto industry, saying, “You can protect a great industry like automobiles without having to Cut government worker pay ROMNEY’S ANALYSIS OF WHAT’S 50% much lower in the 22 states that have passed these antiunion measures: “Romney believes that Right-to-Work legislation is the appropriate course for states, and he will use the bully pulpit of the presidency to encourage more states to move in that direction.” Here are some of the other points in his labor policy: HERE’S WHAT ROMNEY’S WEBsays about “right to work” legislation, the laws that unions call right-to-work-forless, because wages are so • “Reverse executive orders issued by President Obama that tilt the playing field toward organized labor, including the one encouraging the use of union labor on major government construction projects. • “Prohibit the use for political purposes of funds automatically deducted from worker paychecks,” thus undermining labor’s political voice by weakening its voluntary political action committees, like AFSCME’s PEOPLE program. SITE Asunionmembershipgrew, incomesbecamemoreequal; thenunionscameunderattack andincomeinequalityrose. 40% 30% 20% 10% unionmembership shareofincomegoingtothetop10percent 0% 1918 1928 1938 1948 ChartcourtesyofEconomicPolicyInstitute 1958 1968 1978 1988 1998 2008 On the Move June-July 2012 7 Legisative session: One of the toughest in a long time T he spring legislative session ended on May 31 with a state budget that included funding for all currently operating state facilities; passage of a bill that paves the way to shift significant health-care costs onto state and university retirees; and a temporary standoff on attempts to cut pension benefits. Legislative w director Joanna Webb-Gauvin IN ADDITION, THE GENERAL ASSEMBLY TOOK ACTION ON A said. NUMBER OF BILLS OF INTEREST to AFSCME members, some that the union opposed and others that it supported. (See page 3 for more on the state budget and pages 8-9 and 14 for a look at the battle for retirement security.) Some notable successes and some hard-to-take setbacks marked a session that included participation by thousands of members and retirees in grassroots lobbying efforts. In addition to the constant presence of Council 31’s lobbying team inside the Capitol, union activists were engaged from early in the year until the session closed with phone calls, e-mails, informational pickets, in-district visits to lawmakers and a number of lobby days. Cost shifting bill threatens retirees’ healthcare SB 1313 HAS BEEN SIGNED BY the governor. It authorizes the Department of Central Management Services to determine the amount retirees must pay towards their health-care insurance premiums and presumably deductibles and co-payments, even if retirees have 20 years’ service and even if they have already retired. Council 31, strongly opposed the bill, and AFSCME retirees took the lead in lobbying for its defeat. Once it passed, the union also took the position that CMS is required to negotiate premiums with the collective bargaining representative. In committee testimony and again during the floor debate, supporters of the legislation stated their agreement with this interpretation. Still, “Passage of this legislation represents a disturbing willingness by elected officials to forgo our state’s longstanding commitment to a legal guarantee of affordable health care coverage in retirement,” Council 31 legislative Bills AFSCME Opposed Governor signs Medicaid cuts THE GOVERNOR HAS SIGNED SB 2840, a bill that AFSCME lobbied against because of its potential to open the door to privatization and its significant cuts that reduce pharmaceutical assistance for seniors, while jeopardizing funding for nursing homes, hospice services and much more. The measure requires the hiring of two third-party vendors to verify Medicaid applicants information -- work currently performed by AFSCME members. The sponsors of SB 2480 insist that privatization is not the intent. At Council 31’s behest, language clarifying that state employees would continue to do this work was inserted into the bill. Attack on union rights blocked SB 1556, WHICH WOULD TAKE away the collective bargaining rights of thousands of state employees, passed the House of Representatives in the 2011 legislative session with strong bipartisan support. Thus far AFSCME has been able to hold off a vote on the bill in the Senate, but Gov. Quinn continues to push hard for passage. Key senators are pressing for a compromise between all of the affected unions and the Quinn administration. Bill would violate local government employees’ privacy HB 222 HAS PASSED BOTH chambers and was sent to the governor. Subject to appropriation, it expands inclusion of city, county and other local Update government employees on the state’s searchable website that already allows anyone to learn the salaries and titles of state employees. Fines for skipping ethics training HB 4065 DID NOT GET OUT OF committee. It would have allowed the Ethics Commission to fine any state employee who, intentional or not, failed to complete the ethics training required under the State Officials and Employees Ethics Act. The administrative fine could not be less than $250. Daycare oversight to be studied SB 3601, WHICH HAS PASSED both chambers and gone to the governor for action, would require a study of the possibility of transferring day care licensing functions from DCFS to DHS. AFSCME lobbying defeated the original version of the bill which made the transfer effective immediately. Workers compensation administration could be privatized SB 2958 HAS BEEN SENT TO THE governor. It requires the state to contract out administration of the workers’ compensation program for state employees to a private entity. This work is currently performed by AFSCME members in CMS. No action taken OTHER AFSCME-OPPOSED BILLS that ended the session bottled up in committee include measures to: increase the state’s ability to use temporary employees; cap state agency budgets from increasing beyond the rate of inflation, no matter how great the need for its services; allow any citizen to use eavesdropping devices to record public employees in the performance of their duties; drastically reduce revenues available to state and local governments—and further enrich wealthy corporations— by cutting the state tax rate for big corporations; bar any individual from voting unless he or she could produce a government-issued photo identification card at the polling place; deny unemployment benefits to any employee who is discharged for misconduct; require anyone receiving unemployment benefits to perform “volunteer” community service for at least 20 hours every week. Pension amendment would impact all public employees HJRCA 49 WOULD MAKE IT harder to improve pension benefits for public employees by requiring a three-fifths majority for passage. In addition, it increases the threshold to override a gubernatorial veto from a 3/5 vote to a 2/3 vote. A benefit increase is defined as any change in law that would have the impact of increasing the amount of the pension that an employee could receive upon retirement or any reduction in eligibility requirements one must meet before qualifying for a public pension. The stricter voting threshold would also apply to legislation that would seek to expand the class of employees who qualify for a pension benefit. The proposed constitutional amendment would impact local government, state and university employees. HJRCA 49 passed the General Assembly and will appear on the ballot during the November election and will become part of the Illinois Constitution if approved by the voters. Bills AFSCME Supported Limit governor’s ability to close state facilities SB 3564 FELL ONE VOTE SHORT in the full Senate. The measure would require the General Assembly to concur or reject a COGFA finding on a facility closure, limiting the ability of a governor to unilaterally shut down a facility. Blocking inmate access to employee records HB 4592 PASSED BOTH CHAMbers and is awaiting action by the governor. The measure would amend the Freedom of Information Act to bar inmates from obtaining access to information in Department of Corrections employee personnel files. Measure would protect state employees SB 2537 HAS PASSED BOTH chambers and is awaiting action by the governor. It provides that it is a felony to threaten harm to social workers, caseworkers and investigators employed by the departments of Children and Family Services, Human Services and Health and Family Services. Senate fails to act on revenues for DNR SB 1566 WOULD INCREASE A variety of fees, raising much needed revenue to support Department of Natural Resources services. The House amended and passed it, but the Senate adjourned without taking action to concur. 8 On the Move June-July 2012 P AFSCME ACTION HELPS SLOW T ension battle a A s AFSCME and other unions in the We Are One Illinois coalition waged an all-out battle to stop devastating pension-benefit cuts, more than 2,500 AFSCME members capped the spring legislative session with a week of grassroots lobbying in Springfield’s corridors of power. The campaign goal: A plan for preserving retirement security for public employees that is fair to employees and retirees. “I’m willing to fight for my money,” said Steve Doris, president of Local 1563 at Manteno Veterans Home. “It’s not just impacting me. I brought my family along. I saw that lobbying does make a difference – to put a face with the voice they hear on the phone and the name they see on the e-mails.” Doris said he was beginning to learn what it takes to make a law. He sat in on a legislative committee hearing while he was in Springfield along with talking to legislators. “A lot more goes into it than I ever thought there was,” he said. A clear path to real reform he union coalition has made clear in discussions with legislative leaders and the governor that any “reform” plan must: • Include a guaranteed funding mechanism so the current crisis won’t recur; • Be fair to employees who have faithfully made contributions for their entire careers; and • Adhere to the state constitution, which bars diminishment of benefits. “It’s my pension,” said Safiya Felters, president of Local 2854, which represents Human Services workers in the Chicago area. “It’s important that workers go directly to the Capitol. We can hold our elected officials accountable for not doing their jobs. I saw that once they hear from everyday people, the voters, they pay attention.” She said they talked to one representative who had received 4,000 phone calls that week. “’I get it,’ he told us.” T On the Move June-July 2012 9 HE STEAMROLLER a standoff for now - s e Evasive response he union campaign got out the facts about pension benefits — that they are modest, earned and constitutionally protected — through a TV and radio ad campaign all across the state. And union members flooded legislators with phone calls and e-mails to make their voices heard, before and after AFSCME’s big week at the Capitol. “The response from legislators was very evasive,” said Algie Crivens, PEOPLE chair of Local 1006, which represents Employment Security workers. “It seems like the individuals with the most money get the most influence. “And power is not evenly distributed among the 118 state representatives. The House speaker has most of the power.” T Legislative leaders plan steep cuts he plan that emerged from the legislative leadership eliminated some of the negative provisions the governor had proposed proposed in April when he unveiled his “pension reform” plan. But the new plan still would have made steep cuts to pension benefits of all participants in the SERS, SURS and TRS: • The annual cost-of-living adjustment would be cut to half the rate of inflation or 3 percent, whichever is less. • The COLA calculation would be based on simple, not compounded interest, costing the typical retiree tens of thousands of dollars. • This COLA cut would apply to all current retirees as well as actives, so no matter when the employee retires, his or her COLA would still be drastically reduced. • The retirement age would not be increased, but there would be no annual COLA until age 67 or after five years of retirement. • If employees don’t “choose” these COLA reductions, they would lose pension credits on all future pay increases as well as eligibility for retiree health insurance. Neither this bill nor any other pension legislation got to the governor’s desk. T ‘We’re ready to fix it’ “I question whether they really want to fix this,” said Mark Mountain, president of Local 3567 at Western Illinois Correctional Center. “Our rank-and-file members know we will have to pay more, but legislative leadership isn’t talking to us. Nobody’s asked me, ‘Mark, How much more are you willing to pay?’ “We know this has to be changed. Bring us to the table. We’re ready to fix it and they’re playing games. It’s frustrating.” Objections from Republican leaders Rep. Tom Cross and Sen. Christine Radogno also slowed the so-called reform efforts. They and many from their side of the aisle opposed a provision in the House bill that shifted responsibility to pay the employers’ share of teacher pension contributions from the state to local school districts. The Senate did pass, by a comfortable margin, a pension bill, HB 1447, that cut employee and retiree benefits. But it focused only on SERS participants and so did not include the provision to shift teachers’ pension costs to local school districts. That bill was never called for a vote in the House. Heading for the courts? s soon as the session ended, Gov. Pat Quinn announced that he would immediately convene a meeting with the four legislative leaders to forge an agreement on a pension bill, to be followed by a special session of the legislature in the coming weeks. At press time reports were that talks had stalled over the school funding issue. The We Are One Illinois labor coalition has already retained legal counsel to challenge the plan to cut COLA provisions, if it becomes law. “We do not believe that the plans which focus on COLA cuts are constitutional,” Council 31 Director Henry Bayer said. “However, the path through the court system can be a lengthy one, and the outcome uncertain. Your retirement security will be much more secure if we all act now to defeat harmful pension bills and force the governor and the legislators to the bargaining table to hammer out an agreed bill.” A 10 On the Move June-July 2012 AFSCME International Convention elects new president D elegates to AFSCME’s 40th International Convention, held in Los Angeles June 17-22, elected new national leaders for the coming four years, took up resolutions on topics ranging from child care to retirement security, heard from prominent speakers and rallied in support of California local unions. w McEntee, who stepped down THE CONVENTION ALSO FEATURED A TRIBUTE TO RETIRING INTERNATIONAL PRESIDENT, JERRY MCENTEE. Some 4,600 delegates to the convention, including 344 from Illinois local unions, participated in the leadership elections and in the floor debates over the various resolutions and amendments to the union’s constitution. In a hotly contested election, Lee Saunders, the union’s secretary-treasurer, won the race for International president over Danny Donohue, president of AFSCME’s largest affiliate, CSEA/AFSCME in New York State. Saunders will replace after 31 years at the helm of AFSCME. Laura Reyes, president of United Domestic Workers, an AFSCME affiliate of homecare workers in California and Saunders’ running mate, will replace him as the International’s secretary-treasurer, defeating Alice Goff, president of AFSCME Council 36 in Southern California. Donohue and Goff, who had the backing of virtually the entire Illinois delegation, waged an aggressive insurgent campaign which focused on the reducing the national union’s heavy focus on parti- san politics and instead redirecting resources to the frontline struggles of councils and locals around the country. The convention overwhelmingly adopted constitutional amendments submitted by Donohue to significantly reduce the salaries of the International president and secretary-treasurer to levels commensurate with the top officers in other unions and to postpone the deadline for the establishment of progressive dues structures in all affiliates. Elections were also held by region for the other 35 positions on the International executive board. Illinois delegates reelected Council 31 fights at the local level, and if we firmly uphold democracy and integrity at every level of our union.” Vice President Joe Biden spoke at the convention, where delegates reafCouncil 31 delegates accept an award for ‘Outfirmed the standing achievement’ in the PEOPLE program. union’s commitment to helping reelect President Director Henry Bayer and Obama. Referring to the WallDeputy Director Roberta Street-led attacks on unions, Lynch to their seats on the Biden said, “They see an board. opportunity to try to scape“Now is the time for us to goat labor for the problems pull together to win victories they created." for working families and our And he defended public members all across this great employees: “You provide the country,” Saunders and Reyes safe neighborhoods, you prosaid in a victory statement. vide the good schools, you Conceding the election, provide the school lunches, Donahue and Goff said, “The you provide the day care cenenemies of working families ters, you provide the hospiare unrelenting… We can tals, you provide the roads, only combat them if we build our power from the grassroots you provide the ability of people to live a decent middleup, if we strengthen councils and locals to make the critical class life. We owe you.” The union difference – first hand W hile working as an office associate, first at the University of Illinois in Springfield and then for the Illinois’ Department of Revenue where she served as a union steward, Shelley Robbins Pethy hadn’t really thought about the advantages the union brought to her working life. w THEN SHE MOVED TO COL- ORADO AND WENT TO WORK FOR THE STATE’S DEPARTMENT OF Revenue, Driver's License Office. “Colorado is a ‘Right to Work’ state,’ she wrote in a letter to one of her friends from AFSCME, “which actually means they have a right to treat you like s**t and fire you whenever they want with no reason. “It was the strangest thing working with no contract and no representation, because pretty much management can do whatever they want and you don't even have a con- tract to look up and see if it's even part of the deal, or if they are just making it up as they go along. “Even though I was a union steward in Illinois, and believed fully in union protection, I had no idea how much we took for granted.” Sending a message back home THINKING BACK TO HER DAYS IN Illinois, she wanted to give some advice to her friends back home “In Colorado I encountered this new term – ‘right to work’ – which sounds like it came from ‘1984’” (a book about government mind control in which slogans like ‘War is Peace,’ ‘Freedom is Slavery,’ and ‘Ignorance is Strength’ were used). “What it really means,” Pethy said, “is they have the right to dismiss you. You have no rights.” She gave some examples: “My shift was eight hours a day, and I got no federally mandated breaks. The story was that since we had a one-hour unpaid lunch and we were only required to get a half-hour unpaid lunch, the other half hour was our two 15 min breaks?! “I was told I needed to be at work at least five minutes early since the doors opened at 8:00 and I needed to be at my station and have my computer up and running. The problem was, they rounded to the 15 minutes, so they didn't pay me for that. … And believe me when I tell you, if you clocked in a minute late it was not rounded in your favor. The first and only time I was ever late I had to have a sit down with my supervisor before I could even start my computer.” Four years without a raise THOSE WERE JUST THE LITTLE things. As for the big things, state workers hadn’t had a raise in four years. “I made a whopping $13.10 an hour and the benefits SUCKED!” she said. “No education reimbursement either. And no advancement opportunities.” Her conclusion: “This is what happens when you don’t have a union. Whatever rules they want to make up, they can make up. I gave it six weeks and turned in my resignation.” And this is the message she wanted to send to her old friends and colleagues: “Do not let these benefits that the Illinois unions have worked so hard for get eroded! This is where it could end up if nobody is paying attention. Please tell everyone what I've said.” On the Move June-July 2012 11 STATE BARGAINING Union bargaining team holding fast against push for huge givebacks A fter months of negotiations, the AFSCME state of Illinois bargaining team continues to hold fast against the Quinn administration’s push to drastically curtail the job rights and economic security of state employees. w THE UNION BARGAINING COMMITTEE HAS FORCED MANAGEMENT TO WITHDRAW MANY OF its most onerous proposals that would have gutted seniority rights, weakened the grievance procedure and increased mandatory overtime. But big differences remain on critical economic issues — with management pressing for drastic cuts in wages and benefits, including a huge healthcare-cost shift onto current and future retirees – at least $353 million per year. Other extreme proposals for takeaways include: • A total economic package that contains $4 billion in givebacks; • Of that amount, $1 billion would come from moving every employee down two pay grades – a 10 percent pay cut for most employees; • Sharp increases in the employees’ cost for health care, with hikes in premiums, co-payments, deductibles and the percentage of hospital bills the employee pays; • A proposal to cut vacation time; and • A proposal to end tuition assistance through the Upward Mobility Program. “Showing steadfast resolve, our bargaining committee has made clear it will continue to stand firm against all these attempts to set back union rights and a middle-class standard of living for employees in state government and their families,” Council 31 Director Henry Bayer said. Retiree health-care costs at issue WHILE THE PARTIES HAVE ALWAYS negotiated the terms of retiree health care costs as part of state bargaining, those negotiations began with a solid legal framework that assured that existing premiums would remain in place. But with passage of SB 1313, the Illinois General Assembly, removed the legal guarantee of affordable health coverage for state retirees, eliminating the current premium structure and opening the door for the draconian cost-shift proposal management brought to the bargaining table. The state’s proposal would establish a sliding scale that would set the retiree payment at anywhere from 25 percent to 65 percent of the cost of cover- age for themselves. If they carry coverage for dependents, they’d pay 45 percent to 95 percent of those costs, depending on their income. Future retirees could pay up to 85 percent of the costs to cover themselves and 100 percent for their dependents. The sliding scale is determined by a complicated formuContiued on page 15 Whata$15,000ayearpension fora publicemployeewhoretiredin1987would beworthtoday: $33,000 WithcurrentCOLA formula $30,492 WithTier2COLA $29,687 Amountneededtokeep upwithinflation $27,000 $20,235 $21,000 $15,000 1987 1990 1993 1996 1999 2002 2005 AcompoundedCOLAiscritical toprotectingretireesfrominflation 2008 2011 12 On the Move June-July 2012 ON THE LOCAL LEVEL First contract in Harwood Heights ONCE UPON A TIME, ALL VILLAGE of Harwood Heights employees got the same raises, no matter where they worked -until the police officers formed a union. “Then we didn’t get what they got,” said Maria Rafalzic, president of Local 2949. “We realized we needed a union for us.” AFSCME was that union. “It’s good to have the job security,” she said. “We don’t have to listen anymore to someone spouting off how they can get rid of us anytime they want. We are no longer at-will employees. They were surprised that we were able to organize ourselves and do something about it. Everybody feels more at ease now.” The contract settled this year, reaches back to May 2010. It raises wages 12 percent over the four-year term. Rafalzic said getting an agreement “took a couple of years because the village wasn’t very cooperative. There are a lot of different jobs, and the mayor really didn’t know what everybody did.” Having a system of due process for discipline and seniority for layoffs was another major gain, she said. Rafalzic, Dennis Hunt, Brigette Baggetto, Tom Wolfe, George Assimakopoulos, Mike Katradis and Carmen Lamela served on the negotiating team, which was led by staff representative Matt La Pierre. Will County groups protect health insurance A TWO-YEAR CONTRACT THAT expires this year in December covers Local 1028 members in Will County’s circuit court clerk’s and executive branch offices and the states attorney’s office. It freezes wages but provides for 2.5 percent step increases. Those at the top of the step plan got a 1.5 percent lump-sum payment and a $100 per month longevity increase. Employees will continue to pay 1 percent of wages towards health insurance premiums or 2 percent for family coverage. “It was difficult,” said David Delrose, the local union president. “Management came with a large number of language take backs that we got them to get off of. But they want radical changes in medical insurance in the negotiations about to get underway. We’re looking for a tough battle.” The bargaining teams were led by staff representative Joe Pluger, with Delrose, Nancy Peet, Alex Koko, Becky Gilliam, Brook Brewer, Christine Mandecki, Dyona Tramel, Eric Washington, Jenny Lacasto, Joanne Crowder, John Cairnes, Kathy Henderson, Kim Kress, Ken Swanson, Mike Harkins, Mike Vanover, Nancy Camera, Nancy Peete, Nikole McGuire, Rick Breen, Tawana Reed, Mark Colwell, Amanda Monczynski, Leslie Kranz, Sara Dankowski, Dant Foulk, Chris Regis and Rita DucheneHughes. Macoupin County raises tied to inflation rate A THREE-YEAR CONTRACT BETWEEN Local 3176 and Macoupin County raised wages 2.3 percent in the first year with another 3.4 percent coming Sept. 1. The third year raises will also reflect the rate of inflation as measured by the Consumer Price Index, as the first two did. Employees will pay 10 percent of their health-insurance premiums, up from 5 percent. The longevity plan was changed to top out at 35 years, instead of 20. Employees with more than 25 years got an added week vacation time. The union will have a representative on the county’s health-care cost containment committee. “It stretched out a lot longer compared to last time,” said Mary Scheiter, a bargaining committee member. “It seemed like the other side didn’t want to give anything.” But then the County Board chair, who is running for a state Senate seat, got involved. “I think he wanted to get it done,” Scheiter said. The bargaining committee was led by staff representative Roger Griffith, with Scheiter, Trish Baum, Michelle Novack, Diane Hillig, Jamie Gardner and Donna Fritz. Wages, language improved at Peoria Sanitary A FIVE-YEAR CONTRACT BETWEEN Local 2519 and the Peoria Sanitary District raises wages 2.75 percent in each of the first four years and 3 percent in the final year. Language making seniority determinant for layoff and recall was added to the contract and seniority was defined. The number of employer-provided uniforms was increased. “Overall management worked with us well and listened to our bargaining committee,” said Bill Moore, the local union president. “The wage package was the main issue and we got the seniority language for the first time.” Moore, Jerry Gioviannia, Scott Strauch and Richard King served on the negotiating committee, which was led by staff representative Tim Lavelle. Peoria Parks: Wage increases cover insurance costs WAGES GO UP 3.5 PERCENT THE first year and 3 percent in the next two years of a three-year contract between Local 3774 and the Peoria Park District. The lowest-paid workers also got an equity increase. Employees will pay more of their health-insurance premiums, from 4.85 percent of the premium in the previous contract to 7 percent in the first year of the new one, 7.5 percent in the second year and 8 percent in the third. “The Park District made a major change in the healthinsurance cost sharing,” said Roger Halleen, the local union president. “But the raises more than covered the increase. In their original proposal, we would have had a number of our people making less at the end of the three years than they are making now. We didn’t think that was right. Now everybody will be taking home at least a little more.” Staff representative Tim Lavelle led the bargaining, with Halleen, Jesse Carter, Erich Zimmerman, Roger Slama and Elona Mason. Raises on tap in Burbank Public Works A CONTRACT BETWEEN LOCAL 1310 and the city of Burbank raises wages 15 percent over the five-year contract term. “We did well given the environment and what’s going on around us,” said Dan Andrews, the local union president. “Most important – Direct action moves Champaign Co. toward settlement WAGES GO UP 2 PERCENT IN EACH YEAR OF A THREE-YEAR AGREEment between Local 900 and Champaign County. Employee premium payments for health insurance will increase in phases to $10 a month, but the county will raise its monthly contribution toward family coverage by $30. “They finally saw that they weren’t going to split us up and we weren’t going to take any stuff this time,” said Nora Stewart, the local union president. “Our members turned out for informational pickets and attended County Board meetings. It showed them we meant business.” She said the local had taken wage freezes in the last contract, and then the county gave management raises. “We understood that the economy is difficult,” she said. “But this time we put in the contract that if management gives their people a bigger raise, we get the same.” Negotiations were led by staff representative Tara McCauley, with Stewart, John Farney, Amy Foster, Bob Waggle, Marc Jeray, Angela Lusk, Vicky Wurl, Janae Wisehart, Dana Craig, Bob Burkhalter, Peggy Mills, Paula Clark and Chantall Jones. everyone is still working. Everyone cooperated and we were happy with the results.” The union negotiating committee was led by staff representative Mike Ross, with Andrews, James Maguire, Ken Sanders and Anup Darji. No layoffs for city of Ottawa WITH CITY REVENUES DOWN, THE mayor sent out letters to the unions representing Ottawa city employees, urging a pay freeze for the coming year. “Three years ago we took a pay freeze and a year later got a wonderful contract,” said Local 2819 President Tim Wielgopolan. “We know times are tough. If you can hold your own on benefits and no takeaways, that’s huge.” The local agreed to the wage freeze but retained contractual longevity and promotional increases. The city agreed to a no-layoff clause for the term of the contract. If police officers or fightfighters get a raise, city employees will, too. Wielgopolan, Joe Ter- rones, Terry Bell, Dave Erwin and Eddie Wielgopolan served on the bargaining team, which was led by staff representative Randy Dominic. Strike authorization vote makes ‘big impression’ NEGOTIATIONS WITH THE CITY of Rock Island were “long and tedious with not much good faith on the city’s behalf,” Local 988 President Rick Hitchcock said. “Calls to an alderman made a huge difference.” As did a vote to authorize a strike, if the bargaining committee decided it was needed. “After that they saw that we were serious,” said staff representative Dino Leone, who led the union’s committee. After a one-year wage freeze, wages go up 2 percent in the second year, 2.75 percent in the third and 3 percent in the final year. “We didn’t give up anyContinued on the facing page On the Move June-July 2012 13 SHORT REPORTS Walker recall falls short, but Wisconsin unions unbowed VOWING TO CONTINUE THE fight against Gov. Scott Walker and his corporate backers to restore collective bargaining rights, the We Are Wisconsin coalition and the Wisconsin State AFL-CIO is not backing down. Walker’s campaign outspent his opponent eight to one in the June 5 recall election, winning despite an overwhelming union vote against him. In a Racine-area state Senate recall race, the incumbent Republican was beaten, giving Democrats a majority in that chamber, and putting a check on Walker’s antiworker program. “The coalitions, networks and grassroots tactics we have forged over the last 16 months will continue to provide the foundation for fighting back against corporate greed and power,” said a statement from the Wisconsin State AFL-CIO. Exit polling showed 75 percent of union members who voted cast their ballots for Walker’s opponent, Milwaukee Mayor Tom Barrett. In analyzing the disappointing results, Wisconsin activists drew some positives from the 16-month effort to Continued from the facing page thing,” Hitchcock said. “We saw how important it is that members come to meetings. The city always knew how many people were there. If 30 percent of our members were there, the city assumed that’s how many were interested.” Russell Thomas, Quincey Steele, Don Leatherman, Mike Brown, Steve Hinrichs and Rod Versluys were on the union committee with Hitchcock and Leone. Sycamore: Better communications a key goal WAGES WILL GO UP 1 PERCENT IN the first year of a two-year contract between Local 3957 and the city of Sycamore, with two more 1 percent raises in the second year. “We have a new city manager,” said Brad Dewey, the local union president. “We didn’t go in there to beat him up. We understand what the city is going through because of the economy. It was nonconfrontational.” reverse the loss of collective bargaining rights for public employees at the hand of Walker and his allies. “Tuesday’s recall election will be a spring board for a national discussion on Citizens United and the corporate takeover of American democracy,” according to the Wisconsin AFL-CIO. Citizens United was the Supreme Court decision that unleashed corporate power and money in the electoral arena. The high court ruled, in essence, that corporations are people and thus have free speech rights. In order to allow pursuit of those rights, the government can’t limit the money they spend on advocating their politics. “What we did together matters,” said a We Are Wisconsin blog entry. “You took a stand for Wisconsin’s working families and you changed the course of history. And because of your hard work we now have a Senate Majority that will prevent further disastrous policies. We now have a foundation on which to continue electing pro-working family candidates as soon as this fall.” “What happened in Wisconsin during the past 16 months is about more than one politician and one state,” wrote Kristen Crowell, execu- tive director of We Are Wisconsin. “It is about what kind of nation we believe the United States of America needs to be — it is about what kind of nation we create for our grandchildren. It is about every single state where we are the last line of defense for the American worker and the American Dream.” He said AFSCME members got the same raises as the police and management, and health insurance stayed the same, with no premium payments for employee coverage and a modest percentage for dependents. The parties agreed to seek training from the Federal Mediation and Conciliation Service on how to improve the labor-management process. “We are trying to concentrate on opening up communications between union and management,” Dewey said. “We had contract language about labor-management meetings, but we hadn’t been meeting.” The negotiating committee was led by staff representative Kathy Steichen, with Dewey and Ryan Cardinali. wages tied to the Consumer Price Index – a statistic that measures the cost of living. No language changes were needed, explained staff representative Dick Crofter, who led the union bargaining team. There had only been one grievance in four years. “We have a good working relationship with the village,” said Tim Plys, the local union president. “The village proposed keeping the COLA and we agreed. Given the economy, it was realistic.” Maurice Ellis, Vonnell Coleman-Nichols and Jarrell Jackson served on the bargaining team with Plys and Crofter. South Holland: ‘realistic’ wage package LOCAL 3991 AND THE VILLAGE South Holland agreed to extend the existing contract for another four years, with OF Head Start workers in Springfield fight back The last straw was broken when management at Springfield Urban League, which operates the city’s Head Start program, tried to take away contractually mandated vacation days from the early education workers. Local 2217 held an informational picket on May 30 to “raise public awareness of management’s continuous disregard for Head Start employees, their contract and a settlement negotiated with the National Labor Relations Board,” Council 31 staff representative Erik Hostetter said. He said employees wanted the “respect and fair treatment long denied them by Urban League management.” Alberta Daniels is the chief steward for the Head Start workers, which include classroom staff, bus drivers, home advocates, cooks and data clerks. “I think the picketing is making them understand this is serious,” Daniels said. “We want to work with them, not against them, for the good of the children and to make this a better program. But they won’t do it if it benefits the workers.” For example, workers complained about mold in one of the centers – a serious concern for both employees and the children. “They would never do anything until we took it to the newspapers,” Daniels said. “Then I had a target on my back.” Subsequently she was sent home from work to change clothes because she was wearing a union shirt. When she didn’t return that day, a three-day discipline was imposed on her. Thanks to the union’s grievance procedure, “I got paid and it was taken off my record,” she said. The picketing took place just after the school year had ended. “We’ll see how they do in September,” Daniels said. “We want to be treated with respect.” Continued on page 15 Thornton High School: Wages up, health costs steady WAGES WILL GO UP 2 PERCENT in each year of a four-year contract between Local 3335 and the Thornton High School District. Employees will pay slightly less for individual health-insurance coverage and slightly more for family coverage, with small increases in deductibles and co-payments. The bargaining was “extremely smooth,” said Karen Osterman, the local union president. “Teachers took two years to get a contract and ours was done before the previous one expired. We locked in good health care and small raises. “Small raises is a big win in this economy. We also increased vacation time. We are trying to strengthen our language, little by little.” The union bargaining team was led by staff representative Karmen Ortloff, with Osterman, Nancy Ahlstedt, Pam Horton, Anniece Mason, La’Vonne Fisher, and Kathy Stockwell. State prosecutors focus on quality WAGES WERE FROZEN FOR THE first year of a three-year contract between Local 3608 and the state Appellate Prosecutor’s Office, but everyone moved up in the step plan – a 2.4 percent increase. Subsequent negotiations will determine wages for the next two years. The employer was looking to impose what staff representative Erik Hostetter called “radical work-load standards.” The attorneys felt this would undermine quality. “Both sides had their opinions and everything was aired – concerns, expectations, considerations,” said Gary Gnidovec, the local union president. “Both sides tried to accommodate those. We think the contract fairly addresses the employer concerns and adequately meets employee issues. I think it strengthened our agency from the perspective of both sides. We want the agency to be the best it can be.” The contract also requires the employer to lay off law students before it can cut bargaining unit staff. Layoffs are now limited to lack of funding or lack of work. Hostetter led the negotiating committee, with Gnidovec, David Bernhard, Shirley Bagby, Patrick Daly and Thomas Arado. 14 On the Move June-July 2012 Fairer tax system needed RETIREE NOTES General Assembly targets retiree health care and COLA PUBLIC SECTOR RETIREES WHO MADE THEIR “GOLDEN YEARS” PLANS based on what were presumed to be rock-solid guarantees for pension and health care benefits saw their world upended by recent actions of the Illinois General Assembly and Gov. Pat Quinn. With little forewarning and even less legislative dissent, Democratic and Republican legislative leaders joined forces to jam through SB 1313, legislation that removes the legal guarantee of affordable health care for state and state university retirees. Then legislative leaders followed up with a so-called “pension reform” scheme that would also take a big bite out of the pocketbooks of state and university retirees. A version of the bill passed the Senate, but had not yet been acted on by the House when the General Assembly adjourned its spring session on May 31. “I don’t believe that legislators understand how devastating for retirees their attacks on retirement benefits will be,” Sub-chapter 84 member Lynne Elliott said. “I receive a pension of $450 per month and have had two bouts with breast cancer. I could not afford a cut to my cost-of-living adjustment or a premium on my health insurance.” Under the provisions of SB 1313, CMS will still be required to negotiate health plan costs with the union as has historically been the case. In fact the sponsors of the bill repeated many times in debate that they agreed retiree health insurance is subject to negotiations. COLA at risk NEARLY ALL OF THE PENSION legislation that was under conideration would have made significant reductions to the pensions of current retirees by reducing the annual cost of living adjustment. Retirees would be forced to choose between keeping the compounded 3 percent COLA but losing their health care support, or accepting a significant reduction to their COLA in order to keep access to health care. A retiree who chooses to keep his or her health care, would receive a COLA of half the CPI or 3 percent, whichever is LESS. The COLA would be further reduced because it would be based on simple interest, rather than compounded interest as it is now. Thus each year’s increase would not be calculated on the previous year’s pension amount, but on the amount received on the date of retirement. Fortunately, none of these proposals passed, though legislative leaders have stated that they do intend to try again. “We will pursue every avenue to make sure that retires have access to affordable health care and no cuts to their COLA,” Council 31 Director Henry Bayer said, when he spoke at the Chapter 31 Executive Board Meeting in June. IARA fights to save Illinois Cares Rx GOV. PAT QUINN SIGNED A BILL on June 14 that cuts $1.6 billion from state Medicaid programs for low-income families, seniors and people with disabilities, including eliminating Illinois Cares Rx. Illinois Cares Rx helps more than 160,000 seniors and people with disabilities afford their prescription drugs. This fail-safe program ensured that seniors just above the poverty level and low-income people with disabilities could continue to get necessary medications and not get sicker as they spent down to get on Medicaid. Nearly 400 seniors were in Springfield on May 16 and 22 for a rally and lobby day in an attempt to save Illinois Cares Rx and other programs that affect retirees. The event was organized by the Illinois Alliance for Retired Americans, a coalition including AFSCME Retirees Chapter 31 and senior groups from the Illinois Federation of Teachers, SEIU, UAW and others. Barbara Franklin, IARA president and Champaign Sub-chapter 88 president, also spoke at the press conference. “Eliminating Illinois Cares Rx will disrupt seniors’ already tight budgets and make them candidates for emergency rooms and nursing homes. Seniors should never have to choose between a meal, paying their rent or taking their prescription medication.” Unfortunately, Governor Quinn recently signed SB 2840, a comphrehensive Medicaid “reform” bill that included the cuts to Illinois Cares Rx. The Illinois Alliance and other concerned parties have vowed to fight to restore the program. Attacks on retirement security a nationwide problem THE ATTACKS ON RETIREMENT security are happening in nearly every state, and AFSCME retirees are fighting back. Reports from chapters across the country by retiree leaders at the June 16-17 AFSCME Retiree Council meeting in Los Angeles revealed a pattern of both Democratic and Republican legislatures targeting retirement benefits. From the complete elimination of cost-of-living adjustments in Rhode Island and New Jersey to measures employed to cripple retiree organizations – such as not giving them permission to utilize retirement system lists to send out mailings to recruit members – it has become clear that public-sector retirees have been made into scapegoats by their states and local governments and big business groups. Retiree leaders described their battles to get the correct information into the media and to educate the broader public. When retiree leaders in Illinois spoke at the meeting, they also reported that groups including the Civic Committee of the Commercial Club of Chicago have used millions of dollars in a campaign to blame retirees for the worst-funded pension systems in the country. “Contrary to popular belief,” Chapter 31 President Virginia Yates said, “the reason for the state’s deteriorating fiscal condition has had nothing to do with runaway pensions. Rather it’s the fact that the state underfunded the pensions for years, was hit by negative earnings during the recession and has an unfair tax system.” Cutting retirement benefits is not the solution, according to the Center for Tax and Budget Accountability. Rather Illinois must enact comprehensive, meaningful and permanent tax reform that modernizes tax policy, brings it more in line with the principles of a sound tax system and raises adequate revenue to fund core services into the future. DEEP-POCKETED BUSINESS groups have been successful in attempting to move public opinion against public-sector retirees, thus diverting attention from any efforts to increase taxes for those in the highest tax brackets. “The trend is to go after retirement security to fix the financial shortfalls, and they have been convincing the public that they must either cut pensions or cut services like the police departments and libraries,” reported Steve Kreisberg, the Associate Director for the AFSCME Department of Research and Collective Bargaining Services at the national Retiree Council meeting in June. “The fact is that there are more options to address the budget crisis. While there is the same amount of money in this country as before, now fewer people have it.” Chuck Loveless, director of AFSCME’s Department of Federal Government Affairs expanded on this point. “Congress and the president have to decide, whether to cut spending even more, including massive cuts to Social Security and Medicare, which will likely bring our economy to a grinding halt like Europe, or allow the Bush tax cuts to expire for the households making over $200,000. Freeport Sub-chapter 71 established AFSCME RETIREES IN STEPHENSON, JO DAVIESS AND CARROLL counties have been working since the beginning of the year to organize a sub-chapter in their area. On June 1 they officially became chartered as Sub-chapter 71. “Retirees are very afraid and angry about the attacks on their benefits,” sub-chapter President Jack Graves said. “And we need to be fully educated and involved in the efforts to protect the benefits we earned.” The group holds meetings at noon on the second Wednesday of the month at the Hampton Inn, 109 S. Galena Ave, Freeport. “These have been very uncertain times for seniors, with many of us fearing cuts to our cost-of-living adjustment and threats of significant increases to our health insurance,” Graves said. “These have been made much worse by a great deal of misinformation being circulated to both retirees and the general public. Therefore, the establishment of Sub-chapter 71 will aid our members in getting accurate information and getting it out to our local community. We also hope to form a relationship with our local legislators to help remind them that public sector retirees dedicated themselves to providing needed public services and were promised a decent pension and health care. Those promises must be kept.” On the Move June-July 2012 15 Three win Council 31 scholarships follow in their footsteps.” J elissa Jackson, daughter of Jessica Jackson, Local 1038; Rachel Sheley, daughter of Teresa Sheley, Local 2224; and Emma O’ConnorBrooks, daughter of Donna O’Connor, Local 1006, have been awarded a Larry Marquardt Scholarship. w THE $2,000 SCHOLARSHIPS ARE GIVEN TO AFSCME MEMBERS OR THEIR CHILDREN WHO WILL BE full-time students in the coming school year at a recognized institution of higher learning. Students must submit an application that includes recent high school and college transcripts, test scores, work experience, outside activities and a 300-word essay on “Why the labor movement today is relevant and Emma O’ConnorBrooks: A voice for working families Emma O’Connor Brooks needed more than ever.” Jelissa Jackson: Mom’s job saved JACKSON, WHO IS HEADED TO Howard University, is aiming for medical school, “to help and serve those who are underserved.” In her essay she talked about her family’s personal experience: “A facility, where my mother worked for over 20 years as a teacher serving developmentally disabled individuals, closed. She was very fortunate that her job was Jelissa Jackson saved. It was another testament to her union’s long effort in fighting to keep jobs in the midst of a facility closure. Basic rights of hardworking employees are being challenged every day.” Rachel Sheley: Inspiration from labor battles SHELEY WILL BE A SOPHOMORE at Illinois State University where she plans to prepare for a career in clinical psychology. In her essay she wrote about the recent massive bat- Rachel Sheley tles for collective bargaining rights. “In my opinion every worker should have some say over working conditions, hours, health benefits and wages so that they can provide a better life for themselves and their families,” she wrote. “The labor movement in Wisconsin, Indiana and Ohio will inspire people from all over the United States to fight for their basic rights and will provide them with a broader vision of unity. … I’m proud my parents are both part of a union and hope that someday I will have an opportunity to O’CONNOR-BROOKS IS A SENIOR at the University of Illinois in Urbana-Champaign, majoring in architecture. In her essay she wrote about the past accomplishments of unions and their importance now to her own family. “The labor movement gives working individuals and their families a voice,” she wrote. “A collective voice that results in real differences, in real protections, real gains and improved public policy. “Thanks to the labor movement and AFSCME I was able to grow up in a household where my single Mom could take care of us because she earned a living wage.” After a bout with cancer, her mother “could take a medical leave… and had a job to come back to. … The labor movement is the backbone of the middle class.” Short Reports Master contract CONTINUED Continued from page 13 Nobel Prize winner criticizes prison privatization THE NEW YORK TIMES RECENTLY ran a story about what happened in New Jersey’s privatized system of halfway houses for convicts about to be released at the end of their prison terms. Commenting on the expose, Nobel Prize winning economist and Times columnist Paul Krugman said, “The horrors described are part of a broader pattern in which essential functions of government are being both privatized and degraded.” About the so-called advantages of privatization, he said: “So let’s see: Privatized prisons save money by employing fewer guards and other workers, and by paying them badly. And then we get horror stories about how these prisons are run. What a surprise!” He said, “privatization can serve as a stealth form of government borrowing, in which governments avoid recording upfront expenses (or even raise money by selling existing facilities) while raising their long-run costs in ways taxpayers can’t see.” In that light, the privatization of Chicago’s parking meters comes to mind. The city has not only lost the revenues from on-street parking, it has apparently also taken on the liability of having to pay the meter company anytime parking is banned in a zone where they have installed pay boxes. Krugman concluded that there is “a pervasive and growing reality, of a corrupt nexus of privatization and patronage that is undermining government across much of our nation.” Continued from page 11 la that weighs years of service, age at retirement and amount of pension. The older you are when you retire, the more service you have and the lower your pension benefit, the less you would pay for health care. Those retirees who are Medicare eligible would pay less than those who are not. Would take away half a pension benefit COUNCIL 31 WORKED OUT AN example to illustrate the state’s proposal. An employee with 25 years’ service retires at age 60 with a $25,000 annual pension. To participate in the state’s Quality Care Health Plan using the state’s formula would cost $414 per month for the retiree’s coverage and another $640.58 to add a dependent. The couple would be out another $12,654.96 per year, or slightly more than half the pension. An employee who retired five years ago at the same age, service and pension amount, who has now reached 65 and who wants to use QCHP as a Medicare supplemental plan, would pay $128.14 for his or her own coverage and $229.82 to add one dependent. That would be a $4,295.52 hit for the retired couple. The state has estimated this would shift $353 million a year to state and university retirees. But as Council 31 benefits expert Hank Scheff has pointed out, it would save the state even more. “This proposal would make state of Illinois retiree health coverage unaffordable for tens of thousands of retirees,” he said, “driving them into the private health insurance market, where the state wouldn’t be picking up any of the cost.” The effect would be especially disastrous for retirees who are not yet Medicare eligible and can’t find affordable individual coverage in the privateinsurance market. Contract extended THE CURRENT UNION CONTRACT expired on June 30. On June 27, the AFSCME bargaining committee reached agreement with the state to call in an outside mediator and to extend the terms of the current contract while mediation is ongoing. That extension keeps all provisions of the current contract in effect. (See page 5 for an update on the legal battle to get AFSCME members paid the contractual pay raises that the governor blocked last year.) L ooking for a voice that could speak up for the interrelated goals of better patient care and more respect for the work they do, nurses at Loretto Hospital on Chicago’s West Side decided they wanted union representation and turned to AFSCME. “I was very disgusted with the way I was being treated at work,” said Evangeline Jackson, who helped bring the organizing drive to a successful conclusion. “I got a call from a co-worker about forming a union, and I was interested.” Other employees at the hospital were already unionized, but the nurses wanted their own local and their research showed AFSCME would be a good fit, explained Council 31 organizer Abbey Davis. “They want to be treated as the professionals they are and be better advocates for their patients,” she said. “They thought a union would give them that opportunity.” 16 On the Move June-July 2012 Nurses in Chicago hospital say ‘Yes!’ t o A F S C M E ‘Finally our voices will be heard’ L oretto is a community hospital, with most of the patients living in the neighborhood and many of the workers also living close by. But with hospitals nationwide undergoing increasing pressure to corporatize, Loretto brought in a new management team. Those bosses began making decisions without any effort to consult the employees who do the work – changing policies and reorganizing in ways that affected patient care as well as the caregivers. For example, nurses in some units were put on 12-hour shifts, in some cases decreasing their take-home pay and disrupting home-life routines like childcare arrangements. “Maybe finally our voices will be heard and things will change between management and nursing staff,” said Kora Fields, another union supporter. “We are looking forward to being positive members of Loretto, to work together to make Loretto better.” Already, AFSCME has had to swing into action. After serious problems were discovered in the hospital’s psychiatric unit, Loretto management decided to address these problems by drastically reducing the number of psychiatric beds while working to fix the physical problems of the unit. AFSCME is fighting to ensure that nurses’ voices are heard and rights are respected during this process, and that the West Side community’s need for these beds continues to be served. Patient care a chief concern O ne of the main problems the nurses see is understaffing. “We have too many jobs to be effective,” Jackson said. “The union will help us have a fairer workload.” That will improve patient care, too, Fields said. “A better nurse-to-patient ratio will give us more time at the bedside,” she said. “The more patients each nurse has, the higher the mortality rate.” A heavy-handed anti-union campaign B ut management didn’t see things that way. “There was a fierce anti-union campaign,” Davis said. “They forced people to attend antiunion meetings; they had an anti-union newsletter; they lied about dues; they lied about what would happen to vacation time; they enlisted doctors to work against the union. Management did not want to share one bit of power with the nurses.” None of it worked. “My supervisor asked why I was for the union,” Jackson said. “I was shaking, intimidated. But I thought I needed the nerve to tell her what I thought. I told her that I wanted to make sure my assignments were fair and if she was in my place, she’d want a union, too. She said, ‘No comment.’” Jackson recalled talking to her brothers, who are both union members. “They talked about how the union had protected their jobs and defended their jobs.” Now the nurses are looking forward to sitting down with management and negotiating a contract. Among other things, Fields said she’d like to see more public health services like blood pressure testing for the community, “And we want more education classes for nurses. Our goal is top-quality care.”