Public Sector Woes Part II -- Compensation, Pension Etc. Analyzed

In my last blog, I wrote generally about the "upheaval" or "cross roads" that public sector collective bargaining finds itself in today.  See also Unions’ Role in “the New Normal”.  This second blog looks specifically at issues of public sector compensation and reform, particularly pension reform of which I've also written before.   See  Public Sector Pensions -- The Times They are a-Changin'. 

Such reforms range from attempts to limit the scope of public bargaining as it relates to compensation; the move from defined contribution (DC) to defined benefit (DB)

Public Sector Collective Bargaining Woes

In December 2010, I blogged about the travails facing public sector pension funds, and in March 2011 I wrote a bit about the general "upheaval" in public sector collective bargaining.  See Public Sector Pensions -- The Times They are a-Changin' and Unions’ Role in “the New Normal”.  Both of these subjects have now captured the interest of a number of commentators and my next couple of blogs will analyze some recent articles.  This first blog in the series looks at the general climate change and "upheaval," and the idea that public sector labor is at a "crossroads." Review of three articles articles in particular, which represent more moderate, liberal, and conservative views of the issue, are a helpful orientation.

ABQ Labor Board -- First Meeting in 16 Months Mostly a No-Go

Today Albuquerque's Labor Management Relations Board was scheduled to meet for the first time since December 2009.  The two sitting members--Justin Lesky, Esq., the labor representative, and Barbara Stephenson, the management representative--did convene the meeting.  However, under the Labor Board's Rules, all three members are required for a quorum, so it could not take any action today, although everyone present was allowed to speak--and speak they did, largely to vent quite a bit of simmering frustration.

Unions’ Role in “the New Normal”

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.