And did the study take into consideration that wages are higher in non-”right to work” states? While union dues come out of paychecks, those paychecks are higher by an amount greater than union dues in unionized workforces. Rauner’s argument is pure sophistry.
And clearly our new governor is having to engage in mathematical contortions and manipulations to make the data support his position. Quite simply, wages are lower in “right to work” states. They have been lower for decades. Here is some data:
This crew did not spend $60,000,000 so that they could sit back and make minor changes. The Rauner administration is ready for all-out war. The working men and women of Illinois had better be prepared as well. Already, Rauner’s patronage hires are settling in to new state jobs. Another spate of terminations was carried out last night by Rauner’s office at agencies across the state. Once their lieutenants are in place, this group of money-grubbing jackals will be in position to assault the wallets and the common human decency of ordinary folks across this great state.
I am begging the good men and women of the Legislature, and the general public, to stand up to this bully and his well-funded group of bandits. If not, Illinois will surely descend into oligarchy.
So let’s go from paying prevailing wage to lowest possible wage. This may help Illinois become competitive, but certainly not compassionate. There will be nothing compassionate about the Rauner regime.
- Pot calling kettle - Tuesday, Jan 27, 15 @ 2:29 pm:
Rauner is just as “bought & paid for” as anyone else. The difference is that he was bought and paid for by the wealthy few and will work to further their interests.
- Say It Ain't So!! - Tuesday, Jan 27, 15 @ 2:30 pm:
Is there a reason there was only 49 states used in the Canadian study? Would the averages results been different if that 50th state was included? If you throw out the one value that would throw your results off, of course you can make the results come out the way you want to.
- Pot calling kettle - Tuesday, Jan 27, 15 @ 2:32 pm:
I find it interesting that he contrasts unionization with employee empowerment. Nothing empowers employees more than unions. Having a collective voice forces management to the table to respect the rights of workers to get a fair wage & safe working conditions. The last thing Rauner wants is “empowered” workers.
He must really think by putting a pretty name on right to work that employees want to be empowered. Most want to go to work make a good living and go home. Once they find out that you will not make as good a living after you are “empowered” this will go down and $40 million in advertising will not help the cause.
- Robert the Bruce - Tuesday, Jan 27, 15 @ 2:34 pm:
==Is there a reason there was only 49 states used in the Canadian study? Would the averages results been different if that 50th state was included?==
And there you have it. He dresses for the occasion. Presidents have been doing that for years and years. You don’t go to Decatur (the hometown of the IL AFL-CIO president) to pick on unions wearing a $4,000 suit and French cuffs.
Exactly. History is largely though not entirely the story of class warfare, and there’s been a class war for the last 35 years or so of the rich against the rest of us. I don’t consider myself a Marxist, and I accept that the above statement is a bit simplistic. But the rest of us shouldn’t be afraid to use the term.
You can like it, you can despise it, but you can’t say you’re shocked at the case being made.
The one thing I know for sure is 6 months from now, I’m not going to be at all shocked how the Rauner Adminstration is heading.
Rauner is going about his business as he always has; sell the idea, make the pitch, know the answers to questions before they’re asked, counter negatives, get the audience to agree with you, close the deal.
He’s good at it.
The only negative I have? I wouldn’t make it a habit to discuss meeting the Speaker off campus as a drop in nugget. It’s like name-droppers who spend all day picking up the names they drop “off the floor”. Be Governor, you don’t need to name drop, plus, MJM is stealthy, maybe being stealthy with him will help.
The Rauner Crew has their roadmap. They are following it. They won. Elections sometimes brings change.
Bruce: In order to ensure our security and continuing stability, Illinois will be reorganized into the first Galactic Empire, for a safe and secure society which I assure you will last for ten thousand years.
[Auditorium fills with enormous applause]
MJM to JC: So this is how liberty dies… with thunderous applause.
OW..and Qui Tam… You are both on it… The previous administration and GA already tried to cut benefits.. Why are we shocked by this? This is the way the wind has been blowing… Not just by Rauner..Clearly.
- Original Rambler - Tuesday, Jan 27, 15 @ 3:22 pm:
You can pick on unions plenty in Decatur. The DHR has been doing so for years. Every time industry threatens workers, DHR says to sell out to the corporatists with wage cuts, benefit cuts, etc. They did it at CAT, they did at Staley, they’re doing it today.
Willy, good points. My thought on Rauner dropping the Madigan name is that it is some sort of Rauner way of trying to convey that he owns, or will soon, own Mike Madigan. (Not that he will, but he wants his audience to think so.)
Rewind … I am sure Bruce that you are not talking about Union employees that provide security detail for you or the union employees that fly your airplane/helicopter or serve you breakfast or the union employees that keep your sidewalks/roads clear in the winter. Look around you Bruce …. Ask yourself, are you running this State by yourself?
Is compassion what Rauner is displaying when he talks about slashing public worker jobs, public worker salaries, public worker pensions? Or do they not need to be included in his compassionate approach? Do they not count or are they simply servants, just happy to serve?
The purpose of government to provide services to people who need them, not as source of cushy employment.
If you can hire 5 quality teachers for the cost of 4 under the current contract, we are cheating our children if we don’t.
If we run fewer, less frequent bus routes so we can pay wages and benefits that are twice what we need to attract qualified drivers, then we are harming the people trying to use the bus to make their lives work.
The country has a huge problem with quality middle class jobs. But running an expensive, inefficient and ineffective state government just makes the problem worse.
There are ~77,000 state employees out of 6.1 million jobs in Illinois. They have a huge impact on the economy, but it is because of what they do, and how well they do it.
Bottom line, the state is a buyer of labor, and it should get the most value for money.
I’m of the belief that some things like breakfast between the Governor and the Speaker only helps if one is not exploiting the knowledge of it happening for their own gain.
If Rauner wants to tout movies, poker games, hunting trips, phone calls, whatever to show he is really connecting with whomever, or to boost his image of being engaged, fine. The last person I would drag into “look whose my buddy, we had breakfast!” narrative without clearance from the person is MJM. Stealth is the Speaker’s trademark, not name-dropping.
His goal is to make IL the most competitive and the most compassionate state. The compassionate part won’t happen by slashing Medicare and child care subsidies. Or by jacking up regressive taxes in a state with a highly regressive tax system.
Class warfare? According to our friends in the GOP, class warfare is a one-way street that only applies to graduated income taxes or equalizing the tax rate for capital gains and earned income. It never applies to trying to emasculate unions, slash spending for the working poor, or jack up regressive taxes.
“If you can hire 5 quality teachers for the cost of 4 under the current contract, we are cheating our children if we don’t.”
But it’s awfully hard to get 5 “high quality” employees to work for 4 people’s salaries.
“If we run fewer, less frequent bus routes so we can pay wages and benefits that are twice what we need to attract qualified drivers, then we are harming the people trying to use the bus to make their lives work.”
But we’ll need more people to work more, more frequent bus routes.
anon- it’s the old saying with the victor goes the spoils. Earlier Smuka was going off on some tangent concerning this, it’s nothing new it happens when a new administration takes over. Let’s not make this into something it isn’t. If it makes you feel better maybe they will replace the pregnant democratic woman with a pregnant republican woman.
Demoralized- it’s not new let’s not kid ourselves. Most if not all will end up working again either in cook county, SOS, or the treasures office. These people who got whacked most knew it was coming and already have landing spots I’m sure.
Rauner’s agenda does not surprise me, it is what he said he would do back in the primary. What does surprise me is not enough union members took it seriously enough to vote against him. Now he is going to try to destroy unions in general, and public sector unions in particular.
==Unions gave a “lotta money” then he contracted with them==
See, when he says stuff like that he just backs himself into a corner. It plays well. He’s still in the honeymoon period so he can play the “Blame the Last Guy” game. But what happens when his administration contracts with people who contributed to him - because it will happen. Then what? It’s not a bad thing when he does it? I get the argument, I just think it’s a dumb one to make.
Superimpose the map below over the map of the U.S. showing RTW states and the two are remarkably similar. Now add the map of the U.S. showing Median Household income and you have a telling story. RTW, No Thanks!
- Finally Out (formerly Ready to Get Out) - Tuesday, Jan 27, 15 @ 4:31 pm:
RNUG…..if you add spouses and families, that number grows even more!
- Grandson of Man - Tuesday, Jan 27, 15 @ 4:35 pm:
So Rauner is going full-out against unions after all. Well that’s nice–a multimillionaire and his super-rich supporters going after worker protections in this age of staggering income inequality.
We will see whether Rauner gets the same success that he had in the private sector. This time he’ll have to face something that was absent in his former world: thousands of dissenters and organizations who will vigorously oppose him.
Where was all the crying last week when big Tom the man started laying off people at SOS? He blamed Rauner saying it was his budget cut mandate. That’s funny because big Tommy is hiring people starting next month, one of them is my neighbor. So believe me they will all land safe and sound in some other department
From the U of I: “After the third year of adoption [passage of a right-to-work law in IL], annual state income tax revenues would decline by $75 million to $355
million and by about $1.5 billion over the next five years.”
Here are two studies done in 2012/2013 by Illinois’s flagship university refuting everything he says. http://www.ler.illinois.edu/labor/images/PWL_full%20report_lttr%20format.pdf http://www.ler.illinois.edu/labor/RTW_policy%20brief_spreads05.pdf
Last year during a meeting with Rauner’s campaign managers, I handed them copies of both studies and their response was that these issues weren’t part of his agenda. As we’ve suspected, that was a lie. Now that he’s pushing the issue I hope he and his staff will take a look at the work the University of Illinois has done to demonstrate the devastating impact repealing prevailing wage and/or ending free-bargaining would actually have on the State’s economy.
Lots I didn’t include. For example, if you include local government, IMRF covered workers are another 174,000 … and their are major groups like police and Chicago teachers, that are also not included in the numbers.
Yes, to the victor belongs the spoils. However, I don’t recall, at least until I got axed in March, the number of folks let go under the Blago transition being as large as what is being reported. A lot of folks were picked off later as the years went by.
If any of the economic geniuses out there can explain exactly how in a consumer-driven economy you promote growth by workers making less money, I’d be much obliged.
Because if you care to examine the post WWII bull run in economic growth, it coincided with that of the rise of household income and the consumer society, derived largely from collective bargaining, crop insurance, rural electrification and water projects, and government backed standardization, regulation and securitization of home mortgages.
The New Deal layed the foundation and the WWII spending stimulus primed the pump.
===I seriously hope you’re right about that. Lots of people love to whine but are too timid or lazy to do much about it, even when it’s their own livelihood that’s attacked.===
My biggest gripe as a union leader. I felt that many of the rank and file looked at the union first as “get me as much money and benefits as you can” and secondly as “job insurance”. Job insurance also includes the 5% of the membership that took up 95% of my time defending their rotten work habits. They never knew how many times I wished I was on the other side of the table laying into them for being jerks…but I digress..
The STATUS-QUO days of how things have been controlled, and operated under, in Illinois are over. Decisions being made will be for the benefit of all Illinoisans…not just those with political connections and who are controlled by unions. People who don’t think this is what the taxpaying voters want need only to look North to Wisconsin.
A BLUE State had their fill of mismanagement and out of control unions. Recall attempts of Governor Scott Walker failed miserably…and now people across the country are considering him for President. Interesting days ahead indeed.
Fraser Institute is yet another right-wing “think tank” mouthpiece funded by, you guessed it, the Koch Brothers.
Their claims are not surprising given their political leanings.
….Why is it that reporters don’t bother to point out the nature of the “sources” that politicians use? It would seem relevant in this case that the mega-millionaire Governor’s source is a conservative echo chamber funded by anti-union billionaires.
Rauner should be ashamed to use such dreck in making his arguments. I hate “analyses” by politically-driven advocates, calling themselves “institutes.”
Is that 1.8% growth due to “right-to-work” laws, the same 1.8% growth the same states claim because they lowered taxes? Or the same growth they claim they would additionally get if only they had a flat tax structure (like Illinois”)? Or the same roughly 2% growth in the “blueprint”?
- BlameBruceRauner - Tuesday, Jan 27, 15 @ 5:22 pm:
I remember that political ad that Bruce’s wife Dianne made where she said that “Bruce is going to drive them nuts. Really.” So—it isn’t like nobody was warned. He probably isn’t going to “shake up Springfield” as much as he is going to “shake up the unions leadership”. No matter how you cut it, he has a whole lot of people that agree with him or else they wouldn’t have elected him as their governor. And Rauner knows better than anyone that he has the vast majority of Illinois voters backing him on his union play. The unions just aren’t used to being told that they are no longer “The Power” in Illinois state politics any longer. The old lion was neutered, defanged, and declawed last November 4th. It will take them awhile to recognize that and learn to live with it.
Is it “employee empowerment” now rather than “right to work”? Gotta keep the rhetoric right(wink). Seems his plan “empowers” the state’s workers to get lower wages and less benefits. Who’s coming up with this new rhetoric?
===No matter how you cut it, he has a whole lot of people that agree with him or else they wouldn’t have elected him as their governor.===
The election is over. It was in all the papers. Maybe it’s you who needs to get over it.
===And Rauner knows better than anyone that he has the vast majority of Illinois voters backing him on his union play.===
You base this fact on what, your opinion? lol
===The unions just aren’t used to being told that they are no longer “The Power” in Illinois state politics any longer.===
If the Unions aren’t the power, no need to go after them. See, your Fox News talking points sound real swell, but Rauner hasn’t done one thing yet. It’s been talk, and you don’t talk about the 98 pound weakling when you’re Governor.
===The old lion was neutered, defanged, and declawed last November 4th. It will take them awhile to recognize that and learn to live with it.===
The election is over. Governing begins. You’re wotkd Serbs fun and simple. String two, three talking points, and an animal to pretend that the “Lion”, who has no power, is a lion but isn’t a powerful lion, maybe, but lions are fierce and kool but…
Where’s all that Ronald Reagan talk, that was at least comical, not comical and delusional with talking points.
Raunerbot, I think taxpaying Illinoisans who look north to Wisconsin will wonder why Walker and his GOP Assembly went after collective bargaining while leaving the highest individual and corporate income taxes in the Midwest for four years.
Never got around to that “outrage.” Loves that money.
The Union spin on the last election was telling. They claim to have increased their turnout by 4-6% overall. Too bad 40% of their membership went Rauner according to exit polls. When you talk about Unions Willy, you need to distinguish between Union leadership and membership. Villanova from Chicago with all of his various pensions does not relate well with a construction worker unemployed from December to March.
Bill White, FDR wasn’t much of a Keynesian, as Keynes himself complained, often and vociferously.
There was some emergency relief spending, but much of the New Deal was was pay-as-you go infrastructure and insurance programs. Massive borrow and spend didn’t come until the necessity of WWII.
The true Keynesian was FDRs great admirer, Reagan, whose run of economic growth was fueled by historic deficit spending in peacetime as well as expansion of the money supply after the Fed-manufactured recession to kill inflation.
That bill was paid in the Clinton years when budgets in balance or surplus literally led to the United States discontinuing the long bond.
The 30-year T-bond was reintroduced in 2005 to finance the wars in Iraq and Afghanistan, Medicare prescription drug coverage and the Bush tax cuts.
“If any of the economic geniuses out there can explain exactly how in a consumer-driven economy you promote growth by workers making less money, I’d be much obliged….”
I’m neither an economist or a genius but see Ben Bernanke and Janet Yellen. They have juiced the economy by a couple of trillion dollars over the last few years without materially affecting median household income.
“The New Deal layed the foundation and the WWII spending stimulus primed the pump.”
That is certainly true but the war also destroyed the economies of Europe, Japan, and China thus eliminating foreign manufacturing competition for about a quarter of a century. There was a huge demand for durable goods that had gone unsatisfied during the previous four years and only American industry was available to satisfy it. The UAW had their way with the Big 3 car makers. Pick one and threaten a strike. It was a choice of agreeing to terms or lose the market to the other two. The beginning of the end of that strategy was the arrival of the first Japanese import in the early 1970s. It would be all downhill from there for unions. Hard to believe in 1945 that we would one day have German and Japanese companies building cars in the US. As for other manufactured goods, until foreign labor costs plus transportation approach US labor costs, it seems like we will be hard pressed to compete. The problem was further aggravated this week as Europe and China devalued their currencies.
I was trying to make the point that it is possible to grow the economy without raising wages. That, of course, was not what the Fed intended. It was a criticism of Fed policy. They have created about $4 trillion of new money and unless you own your home or stocks you are not a lot better off.
I can readily accept that Reagan was a better Keynesian than FDR and yes WW2 kinda forced FDR’s hand on massive spending.
More recently, the juiced economy has resulted in massive piles of idle cash in the hands of the super-ultra-wealthy. Kinda like at the end of the board game Monopoly - one player has all the cash, properties and hotels and everyone else is bankrupt. Game over.
Nobody in Illinois is forced to join a Union, Rauner is lying about this. First of all the majority of workers have to vote to be represented by the Union. If that happens, you have to sign a membership card to join the Union and become a member. The Union is bound by law to bargain wages & benefits and represent all workers (even those who voted no) in the bargaining unit; the non-members have to pay fees to cover these costs. Those who become Union members pay dues in addition to the fees. Being a dues paying member allows you to vote in Union elections and run for Union office.
In right to work states, the Union is still required to represent all employees in the bargaining unit however non-members are not required to pay fees. Essentially non-members go from being fee payers for the services the Union is obligated to provide on their behalf to free riders. Needless to say, this undermines the power of the Union to negotiate better wages, benefits, and working conditions.
At IDOT, all people in union coded positions pay “fair Share”, ie 2.5 times their hourly salary a month whether they join the union or not. Teamster membership is another $1. The fair share still goes to the union whether you pay the extra dollar to be a member or not. So, technically, you have a choice whether to join, but you have NO choice on paying fair share of 2.5 x your hourly wage a month.
He won’t be convinced. He is richer than you, so he thinks he knows how to make our state economically grow. He won’t listen.
What he is doing is demonstrating an inability to realize that Illinois is not Texas, and won’t be - ever. Bruce Rauner needed to find an economic solution for a BLUE state as a solo RED governor, and he believes he can force Illinois into doing what it will not do.
Consequently, Rauner will be the loser. We are not Wisconsin. We are not Florida. We are not Oklahoma. Chicago is not Indianapolis. Governor Rauner doesn’t respect those differences, and has hired of team of people to turn Illinois into Indiana.