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*** UPDATED x2 - Back pay amendment appears on Madigan bill - AFSCME to reconvene bargaining committee *** Finger-pointing on AFSCME contract

Friday, Apr 26, 2013 - Posted by Rich Miller

* The AP follows up on a story that first appeared here yesterday

Illinois Gov. Pat Quinn wants Attorney General Lisa Madigan to drop a lawsuit over back pay for unionized state workers so he can implement a new state contract he says will save hundreds of millions of dollars.

But Madigan’s office said Thursday the attorney general won’t dissolve the legal action until her lawyers know whether lawmakers will put up $140 million to pay the back wages that are at the center of the wrangling. If there’s a hang-up in the General Assembly, the attorney general needs to keep legal options open, spokeswoman Natalie Bauer said.

Quinn and the employees’ union settled the dispute at the bargaining table, and his assistant budget director, Abdon Pallasch, said prolonging the lawsuit holds up $900 million in health care savings. The union won’t sign the contract its membership ratified until the lawsuit is pulled off the docket.

Madigan, a Chicago Democrat like Quinn, is considering opposing him in the gubernatorial primary next spring, but officials were careful Thursday to stress the lawsuit is not a question of political ill will. […]

Quinn wants to put the rancor behind him now, particularly with election season approaching, but also because there are savings to be had. While he gave up the fight over the raises, Quinn is eager to realize the health care savings from current and retired state workers in the newly ratified pact, Pallasch said.

“Failing to resolve the $64 million lawsuit now risks the $900 million in health care savings for taxpayers under the contract,” he said.

This is a real standoff. Right now, it doesn’t look like the GA is in any mood to fund the back pay. So the lawsuit won’t be dropped. But that means the contract won’t be signed. The whole thing could come tumbling down, and might even spark another contract vote.

*** UPDATE *** AFSCME just sent this e-mail to its members…

AFSCME has informed the Quinn Administration that the union is not prepared to sign the new contract without further authorization from the union membership. Your AFSCME Bargaining Committee is convening on Monday to recommend a course of action—and further information will be coming to you soon.

I know that the situation can be confusing and frustrating—especially for those employees who have not received their negotiated raises. However, it’s critical to keep in mind how far we have come by standing together and standing firm.

When the pay raise was initially withheld, AFSCME immediately took the issue to arbitration—and won. When the State appealed that decision to court, the Union battled through all the legal delays and maneuvers and secured a ruling that the contract must be honored. When the state said it had no money to pay any raises, AFSCME’s research turned up tens of millions of dollars which resulted in thousands of employees receiving the wages owed over the past two years and many more in line to receive monies from the funds held in escrow.
We’ve succeeded time and again when others said it couldn’t be done. We’re not going to give up now. We’ll keep on fighting to ensure that justice is done for all members. And if all members stand together, we can succeed once more.

Sincerely,
Henry Bayer
Executive Director

*** UPDATE 2 *** If you click here, you’ll see an amendment to a Speaker Madigan bill filed today by Rep. John Bradley which appears to fund the back pay.

  38 Comments      


*** UPDATED x2 - Madigan responds - Union claims Lisa Madigan holding up signature *** AFSCME hasn’t signed the union contract

Thursday, Apr 25, 2013 - Posted by Rich Miller

* Yesterday, the Chicago Tribune editorial board thundered its outrage over not being able to obtain an official copy of the new AFSCME contract with the state

We’ve been asking for a copy since Feb. 28, the day the two sides announced the agreement. Quinn’s office said we had to wait until union members ratified the contract. That happened on March 19.

Since then, we’ve been told the lawyers needed time to tidy up the paperwork.

A full month of tidying? Sorry, but we’re out of patience. Taxpayers are picking up the tab for this contract. They deserve to know how much Quinn and the employee union ordered up in pay and benefits. In fact, taxpayers should have the opportunity to weigh in before the contract gets finalized with Quinn’s signature.

* So, I contacted a few folks to see if I could find out what was going on. Why couldn’t we get an official copy? We’ve already seen the copy that went out to union members, but what about the final copy? Anders Lindall with AFSCME e-mailed me back late yesterday afternoon…

As you know, once finalized, our state contract is publicly available; the previous contract is posted in its entirety on the CMS website. With respect to the new agreement, you and others have reported on all key provisions, even publishing our internal summary that covers economic issues as well changes in workplace practices, policies and procedures. But at this point, with the contract not yet signed and the parties still finalizing finely-tuned language changes, there is simply nothing more to release.

Wait. The contract isn’t signed? It was ratified weeks ago.

Why isn’t the contract signed?

Lindall replied…

Like I say, parties still finalizing language.

*** UPDATE 1 *** This may help clear things up, thanks to a commenter. From a message to union members from Henry Bayer

The Administration has moved forward to fulfill these commitments:

    1. The FY 14 budget that the governor submitted to the General Assembly includes funding to bring all employees to their proper wage level pursuant to the previous and the current contract.

    2. The Administration is now moving forward on the dispersal of the escrowed funds. These are monies that the union had demonstrated to the court were appropriated in the FY12 budget and could therefore be used toward payment of the back wages owed for FY12. There is approximately $42 million in this fund. Many of the dollars are restricted in how they can be allocated (e.g., federal grants for specific purposes or appropriations for specific agencies), so the distribution to employees will not be uniform and the restrictions may prevent all of the $42 million from being distributed. Allocation of these funds is in the process of final review and affected employees will be notified in the coming weeks.

    3. The remainder of the back pay owed (approximately $154 million) requires a supplemental appropriation by the General Assembly. The Administration has drafted the supplemental and expects it to be introduced next week.

    4. The Governor’s Office notified Attorney General Lisa Madigan that the appeal of the circuit court ruling should be withdrawn. To date, the Attorney General has failed to do so, indicating that she is conducting a thorough review of the case before reaching a decision as to how to proceed.

Council 31 staff have been working intensively for weeks now to finalize the new contract, which requires ensuring the accuracy of the specific wording of the contract language and verifying all elements of the health plan and other economic components.

However, the new contract has not been signed, pending the state’s action on the lawsuit. [Emphasis added.]

So, it’s not all about the “language.” Attorney General Madigan is holding up the union’s signature. I’ll ask her why right now. Check back.

But, yes, the health plan language is still a sticking point. There’s some debate over what type of health plan should now be used. More on that another time.

*** UPDATE 2 *** The attorney general’s office responds…

It’s our understanding that the full payment of backpay is dependent on a special appropriation. We know the Legislature, the Governor and AFSCME are working on that. In the meantime, until a special appropriation bill moves forward, it’s most appropriate to put the lawsuits on hold, as the Governor, the legislature and AFSCME continue their work.

  42 Comments      


*** LIVE *** SESSION COVERAGE

Thursday, Apr 25, 2013 - Posted by Rich Miller

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