Jerry Green - Ledger - Green seeks union givebacks from state workers

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Published in the Star-Ledger, Friday, June 2, 2006

3 lawmakers seek union givebacks
Democrat trio, proposing way to freeze sales tax, expect to be 'vilified' -- and they are

Friday, June 02, 2006

BY DUNSTAN McNICHOL
Star-Ledger Staff

Putting themselves on a collision course with organized labor and leaders of their own party, three Democratic lawmakers said yesterday unionized state workers should forgo a scheduled 5 percent pay raise and give back millions of dollars in benefits before residents are asked to pay a higher sales tax.

"We cannot afford this government," said Sen. Stephen Sweeney (D-Gloucester), himself a business official with the Ironworkers union. "We need to get realistic with what we offer. We need the real world."

Sweeney, Assemblyman Gerald Green (D-Union) and Assemblyman Paul Moriarty (D-Gloucester) proposed saving about $700 million by cutting employee costs for New Jersey's 70,000 state workers by 15 percent, including sweeping reductions in pension benefits, longer working days without additional pay, and limits on vacation and sick time.

Yesterday's proposal was accompanied by a 34-page packet of statistical highlights the lawmakers said show state workers enjoy premium pay, benefits and vacation time in a period when private workers and taxpayers are being asked to cut back and pay more.

"This is not an attack on unions or employees, but we deal with reality," said Green. "The state of New Jersey cannot afford the luxury we had in the past."

Gov. Jon Corzine's proposed budget calls for raising the 6 percent sales tax to 7 percent, something that would generate $1.5 billion over a full fiscal year.

The three Democrats' proposal puts them squarely at odds with major state worker unions, which are mounting an advertising and lobbying campaign in support of the sales tax and the state worker benefits it would help support.

It also lines them up against other state Democrats, including Assemblyman Joseph Cryan (D-Union), chairman of the State Democratic Committee. During a budget hearing after Sweeney's news conference, Cryan criticized any suggestion that the state seek union givebacks before state worker contracts expire next year.

"We all know the cost issues, but we all have an obligation here," Cryan said.

Anthony Coley, Corzine's spokesman, said the governor has no plans to tamper with the provisions of current contracts.

"The budget is not the time or place for contract negotiations," said Coley. "The governor inherited the contract and he intends to honor it."

The Democrats who proposed the plan said they were anticipating criticism. "We totally expect to be picketed, pilloried and vilified," said Moriarty.

In fact, before they left the Statehouse meeting room where they had held their news conference, the lawmakers were confronted by officers of two of the state work force's largest employee unions: the Communications Workers of America and the American Federation of State, County and Municipal Employees.

Sweeney spent 15 minutes in a heated private discussion with two AFSCME officers: Sherryl Gordon, executive director of the union's New Jersey Public Employees Council 1, and Don DiLeo, the union's legislative and political representative, immediately after the news conference.

Gordon and DiLeo left the Statehouse without comment. "They're mad at me right now," Sweeney said simply.

Bob Master, a legislative director for the Communications Workers of America, was also angered. "I think it's an outrageous comment for a guy who purports to be a friend of working people," he said. "It's the kind of thing you would expect to hear from a Bush Republican, not a labor Democrat."

Robert Regan, treasurer of CWA Local 1037 and the first union representative to confront Sweeney, later denied claims that state workers have any special benefits.

"We have, over the years, done our share by not getting raises, by increasing our (pension) contributions," he said.

Legislative leaders gave only a tepid endorsement to the proposals.

"In the coming months we'll be investigating numerous ways to save the state and taxpayers money and, as we do so, we will certainly be taking these recommendations into consideration," said Senate President Richard Codey (D-Essex).

Assembly Speaker Joseph Roberts (D-Camden) said in a statement he will "'look forward to reviewing it and fully discussing its elements with Assemblymen Green and Moriarty."

Republicans were more receptive.

"Please allow me to be among the first to congratulate you on the set of proposals announced today by you and Senator Sweeney concerning public employee compensation," Assemblyman Kevin O'Toole (R-Essex) wrote in a letter to Green and Moriarty released to the media yesterday. "'I would like to offer my assistance to you in this endeavor, and specifically I would like to become a co-prime sponsor on the legislation."

By proposing $700 million in state worker savings, Sweeney and his Assembly counterparts have struck a populist bargaining position as debate over Corzine's proposed $30.9 billion state budget enters its final month. In the Senate, where Democrats have 22 of 40 seats, the loss of just two votes would jeopardize passage of the sales tax increase, which has little Republican support.

The Associated Press contributed to this report. Dunstan McNichol covers state government issues. He may be reached at (609) 989-0341 or dmcnichol@starledger.com.

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