I am a labor/employment neutral, and I also do domestic and foreclosure mediation. In all my work I see that times are tough all around, and it seems like the struggle to get and keep a job, and earn enough money to support your family in current economic situation is not getting any better. My husband thinks this is the “new normal” and I’m beginning to believe him.
The news stories of other families struggling to make ends meet, to keep jobs, to meet bills, etc. certainly seem to bear out his theory. See David Brooks, NY Times Op-Ed, “The New Normal” (Feb. 28, 2011) at http://www.nytimes.com/2011/03/01/opinion/01brooks.html; Alice Gomstyn, “Finance: Americans Adapt to the 'New Normal” (Jun. 15, 2009), at http://abcnews.go.com/Business/Economy/story?id=7827032&page=1. And, as households reorganize their personal priorities and finances in this economic environment, we should not be too surprised to see similar reorganizations going on, as well, at the state, national and international levels. We should also not be surprised that such reorganizations are as painful on these larger stages, as they are in our own homes.
A year ago, the rifts in Europe’s economic model were highlighted in the international news. First came threats of bankruptcy/collapse, and bailouts in Greece, then austerity measures and strikes. Although the complete extent will not be known for some time perhaps, it appears at least part of the countries’ financial woes are related to the costs of maintaining their public welfare system and the salaries and benefits of a highly unionized work force. See generally Landon Thomas, Jr. and Stephen Castle, “European Union Moves Toward a Bailout of Greece” (Feb. 28, 2010) at http://www.nytimes.com/2010/03/01/business/global/01union.html; Susanne Amann, “Tackling Greece’s Debt Crisis” (Feb. 11, 2010) at http://www.spiegel.de/international/europe/0,1518,677351,00.html; “Greek Unions Protect Against PM’s Austerity Measures” (Sep. 11, 2010) at http://www.bbc.co.uk/news/world-europe-11271058; and “French Strike Biggest So Far, Says Unions and Police” (Oct. 12, 2011) at http://www.bbc.co.uk/news/world-europe-11520220.
This year, the news has been filled with upheaval in Wisconsin, Indiana and Ohio as lawmakers there try to curtail collective bargaining rights in the public sector. See “What do Wisconsin, Indiana, Ohio and California have in common? Public employee pension problems, minus the rancor” (Feb. 23, 2011) at http://www.scpr.org/programs/patt-morrison/2011/02/23/what-do-wisconsin-indiana-ohio-and-california-have/. Although the question is still hotly debated, the ostensible reasons are, again, economic, as these states try to rein in budget deficits and address unfunded pension liabilities. Compare T. Zane Reeves, PhD. and neutral Arbitrator, in ”Public Unions are Not the Problem,” Albuquerque Journal (Mar. 3, 2011) to Governor Walker’s statements at http://walker.wi.gov/journal_media_detail.asp?locid=177&prid=5668.
What do I think? Well, I do not believe it is a coincidence that the body politic is convulsing at the same time public coffers are drying up and we are faced with historic deficits and recession. It’s also natural to look for a scapegoat in all times of trouble, and it may be that unions present a particularly appealing target to some, in times such as these There has been a dramatic shift in the political climate this last year; unions have historically been controversial; and to the extent public sector salaries and benefits are perceived to be higher than those of private sector, there will likely be some rancor. I do not know whether union animism or economic necessity are the driving force but I suspect it’s a mixed motive case, and I'm sure there are good arguments to be made for either interpretation.
What do I think will come of public sector unions, and do they have a place in the new normal? Being a labor neutral, I have a vested interest in this debate and weighing in is rather uncomfortable for me. That said, it is obviously also especially interesting to me for that same reason, and I too can no longer resist the topic. Personally, I do believe there will continue to be a role for public sector unions, but it also looks like they face some serious "PR" challenges today. As a result, they may face calls for serious retrenchment in their level of involvement going forward, in some states. For example, it looks like Ohio public sector unions may well lose their right to strike (wow, I am amazed they still had such a right, frankly!). Additionally, in all three states, the subjects over which they are allowed to bargain, and rights regarding payroll deduction and/or “fair share” payments, may well be limited. Moreover, this trend may spread to other states as well. Thus, public sector unions and public employees will likely also suffer in the reorganization process, as society deals with the “new normal.” Notably, such financial woes and reorganization have already been foreshadowed in other forums.
Impasse or interest arbitrators have been struggling for awhile with “how much of the financial burden employees must share when governmental employers’ tax and fee revenues plummet.” See O’Brien and Peace observe in “Interest Arbitration—Some Timely Thoughts,” Perspectives on Work, Vol. 14*, Summer 2010/Winter 2011 at 32 (concluding arbitrators “have come down on both ends and in the middle of the range of options). And, as I noted in a prior blog, judges in New Mexico have generally upheld the employers’ right to void unsustainable CBAs in the case of grievance arbitration.
The challenge and fear here, of course, is that in tampering with legislative solutions, public unions may end up being stripped of all power. Although that risk seems far fetched and unlikely to me because I perceive them as still filling an important function, in grievance resolution in particular, I too see cause for concern.
Everyday we are all challenged--whether as individuals, businesses or social movements--to demonstrate our continuing utility and relevance, and I think that requirement is only heightened during tough economic times. We cannot merely rest on our past laurels, or moral imperatives, but must actively sell ourselves and the benefit we bring. The situation reminds me of comments by the late, great Edmund "Joe" Lang, former Senator, Sandoval County Commissioner and Public Employee Labor Relations Board Chair. He once described to me (when we served together on the PELRB) how he informally lobbied for the passage of the second New Mexico Public Employee Bargaining Act by convincing hold-out legislatures that this was not a "labor bill," but a better government and pro-management bill, because it would provide a system and forum for managing labor-management disputes in the public sector.
Although it is not my place as a labor neutral to opine publicly whether unionism is a “good” or “bad” thing for present day society, I can fairly say I am saddened by the times, as I believe the current strife concerning unionism is unnecessarily adding to the larger social upheaval, and I sincerely hope compromises can be reached between the various factions.
Everyday we are all challenged--whether as individuals, businesses or social movements--to demonstrate our continuing utility and relevance, and I think that requirement is only heightened during tough economic times. We cannot merely rest on our past laurels, or moral imperatives, but must actively sell ourselves and the benefit we bring. The situation reminds me of comments by the late, great Edmund "Joe" Lang, former Senator, Sandoval County Commissioner and Public Employee Labor Relations Board Chair. He once described to me (when we served together on the PELRB) how he informally lobbied for the passage of the second New Mexico Public Employee Bargaining Act by convincing hold-out legislatures that this was not a "labor bill," but a better government and pro-management bill, because it would provide a system and forum for managing labor-management disputes in the public sector.
Although it is not my place as a labor neutral to opine publicly whether unionism is a “good” or “bad” thing for present day society, I can fairly say I am saddened by the times, as I believe the current strife concerning unionism is unnecessarily adding to the larger social upheaval, and I sincerely hope compromises can be reached between the various factions.
If you are interested in neutral services such as arbitration, mediation or contract ALJ services, in labor/employment or other areas of the law, please contact Pilar Vaile, P.C. at (505) 247-0802, or info@pilarvailepc.com.
Note.
* I said in my last blog that I was going to promptly throw away this issue and accept that I cannot and need not keep up with all the literature that arrives in my in-box, but just couldn’t quite do it. I thought, Spring Cleaning will be even more satisfying if I straighten up and organize, versus merely discard, my old baggage…
