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Labor
For DiNapoli, Unions To The Rescue
Feb 13th - 5:38 pm
If anyone doubted that Comptroller Tom DiNapoli isn’t close to the state’s labor unions, this afternoon’s statements from CSEA and the AFL/CIO would certaintly dispell that idea.
The Civil Service Employees Association and the AFL rode to the comptroller’s rescue today after business groups from around the state slammed his position on Gov. Andrew Cuomo’s Tier VI proposal. In particular DiNapoli takes issue with the option to provide for a 401(k)-style defined contribution plan.
Cuomo, who has allied himself with the state’s business community, is pushing the new, less-generous pension tier for future state workers in the budget, a savings that would total $79 million over 30 years.
Both the Business Council and Unshackle Upstate unloaded on DiNapoli, who received significant support from organized labor in 2010 in order to beat Republican Harry Wilson.
The unions released strikingly similar messages of solidarity in response.
Here’s CSEA’s take:
“The Business Council (the lobby for Big Business in New York State), Unshackle New York (another front for big business interests) and Billionaire NYC Mayor Michael Bloomberg are all taking shots at state Comptroller Tom DiNapoli for standing up for working people in the Tier 6 debate. DiNapoli has raised legitimate concerns that a 401K style pension option will lead to greater economic instability.
And the AFL-CIO:
Today, New York State Comptroller Tom DiNapoli came under attack for his defense of middle class retirement security. As sole trustee of one of the largest pension systems in the country, the Comptroller has more credibility on the issue of defined-benefit pensions than anyone in our state. Moreover, he has a duty to protect the economic well-being of the members, retirees, and beneficiaries of the pension system. As such, he has presented a reasoned case based on the facts. Unfortunately, he is being castigated for doing the job he was elected to do.
Finally, DiNapoli himself put out a statement and made a reference to what as far as I can tell was a reference to the show “Survivor” (News flash: People still watch “Survivor”?)
I haven’t seen such a coordinated attack since Francesca was voted off Survivor.
I stand firmly behind my position that defined contribution plans are not adequate for retirement security for public or private workers. Study after study has shown that defined benefit plans cost less in the long run than 401k style plans and perform better. It is unconscionable that so many New Yorkers and Americans do not have a secure retirement, often times because corporations have stripped retirement plans for short-term fiscal gains.
This is a discussion that deserves more than sound bites. Too often in New York we have made policy at the extremes, when costs were usually low or high. The best public policy comes from thoughtful discussions, accurate and realistic presentation of the facts, and a long-term view.
‘Why Do Some Politicians Go After Teachers?’
Feb 13th - 6:25 am
The UFT is out with an ad that continues the latest trend: Shooting the message, but avoiding the messenger.
The 30-second spot, which features a number of real-life educators lauding their students’ achievements and a cameo by UFT President Mike Mulgrew, does not address any specific woes. Instead, it laments “some politicians,” who shall remain nameless, and their propensity to “go after teachers.”
It’s well-known that the UFT is locked in battle with the Bloomberg administration over the creation of a teacher evaluation system, leading Gov. Andrew Cuomo to threaten to force the issue in the 2012-13 budget, and is also none too pleased – along with its fellow unions – with the Tier 6 proposal Cuomo has proposed.
Yet this ad makes no mention of any of that, despite the fact that Thursday is the deadline set by the governor to automatically amend his executive budget to unilaterally impose teacher-evaluation requirements statewide.
The ad starts airing today on broadcast stations and cable television networks in the New York area. In addition to running on NY1, it will appear during the Today Show, Good Morning America, Morning Joe, Top Chef, Project Runway, Jeopardy , David Letterman, the Daily Show, Saturday Night Live, Conan, and Rangers and Knicks games,
The broadcast buy is designed to reach more than 8 million broadcast and cable TV viewers multiple times, according to the UFT. The spot was produced by Shorr, Johnson and Magnus Strategic Media.
HTC Expands Its Reach
Feb 9th - 1:42 pm
A lot of ink and airtime was dedicated to the lucrative contract deal struck this week by the 30,000-member Hotel and Motel Trade Council that includes a more than 29 percent pay increase over seven years, full medical, dental and eye-care benefits, rising employer pension contributions and – the coup de grace – an agreement to provide housekeepers with DSK-inspired panic buttons.
But one significant aspect of the contract, which was presented on Tuesday and is expected to win approval early next week, has gone uncovered.
The deal will extend HTC’s neutrality agreement with several major hotel chains far beyond the confines of New York City.
It will apply to new hotels built in Albany, Dutchess, Greene, Hudson, Orange, Putnam, Renssalaer, Rockland, Saratoga, Schenectady, Sullivan, Ulster, Washington and Westchester counties, along with Long Island and northern New Jersey, by major hotel owners and operators such as Marriot, Host, Highgate, Starwood, Hyatt, and Intercontinental.
What does that mean? Well, basically, if any of those operators open up new hotels in any of the above locations, the hotel management has pledges not to oppose unionization efforts by HTC. It does NOT, however, mean that any new hotels would be subject to the same very generous wages and benefits included in this contract.
HTC already represents workers at several Albany hotels: 74 State, Clarion, Crowne Plaza (which will soon be the Hilton), Best Western, Holiday Inn Express, and the Desmond, where workers have been engaged in a six month fight with management over health care.
The neutrality agreement has the potential to considerably beef up HTC’s ranks, making the union a statewide political player.
Up to now, its focus has mainly been in NYC where it has been a force in both City Council and state legislative races, although the union was also a key ally of AG Eric Schneiderman. HTC’s former political director, Neal Kwatra, who is credited with increasing the union’s clout in just a few years, is now serving as Schneiderman’s chief of staff.
After DiNapoli Crticism, Let NY Work Pushes Tier VI
Feb 9th - 10:29 am
A coalition of local government groups and business organizations issued a lengthy, quote-filled news release this morning touting Gov. Andrew Cuomo’s proposed Tier VI plan.
It’s not unusual that Let NY Work, the umbrella group pushing for mandate relief, is backing the plan, given that is expected to provide $79 billion in savings over 30 years. But the news release comes after criticism of the governor’s budget proposal and Tier VI was voiced by Comptroller Tom DiNapoli over the last several days.
The plan is only for new employees, raises the retirement age and provides the option of allowing workers to enter into a defined contribution plan similar to a 401(k) in the private sector, an idea that DiNapoli has been especially skeptical toward. The comptroller has also defended the state’s pension system overall, noting that it is fully funded and not in a crisis.
“The Tier VI retirement proposal advanced by Gov. Cuomo is a fair and balanced approach to containing pension costs in New York,” said Brian Sampson, executive director of Unshackle Upstate. “It is fair for the taxpayers of this state to be relieved of a tremendous burden and it is fair to future workers. Not only will they have a choice of a retirement plan, but what they contribute will be based on their pay and they will share the risk/reward with their employer. What more could be balanced and equitable for taxpayers and future employees?”
Labor groups, who strongly supported DiNapoli in 2010, have also come out against the plan, saying it could hurt recruitment.
Asked about DiNapoli’s critique in Syracuse on Wednesday, the governor never mentioned the comptroller by name. But he did say Albany politicians are trying to continue “the status quo.”
Cuomo proposed a Tier VI plan as a standalone bill last June, but the measure went nowhere. Inserting the measure into his $132.5 billion spending plan provides for a better chance of its passage this year, given the power the governor has over the budget process.
Update: Eric Sumberg, DiNapoli’s press guy, reminds me that Binghamton Mayor Matt Ryan in today’s Times Union slammed 401(k)-style plans. He notes that, “Unshackle doesn’t represent every viewpoint in the upstate areas.”
AFL-CIO Anti-Tier 6 Ad Targets ‘Some Politicians’ (Updated)
Feb 7th - 1:40 pm
The AFL-CIO is launching a statewide radio ad campaign in opposition to Gov. Andrew Cuomo’s proposed creation of a sixth state pension tier, calling it a “rollback of middle class retirement security.”
“Since the economic recession began, middle class New Yorkers have suffered,” said AFL-CIO President Mario Cilento. “Wage freezes, layoffs, and givebacks have been all too common. Now, the retirement security of workers is threatened by an ill-conceived Tier 6 proposal.”
“Make no mistake, this is not just about public employees. This is about all workers and the security provided by defined-benefit pensions. Government should set an example for what we aspire to be, not what we fear we may become. Far too many have already learned the hard way that a 401(k) is not enough.”
Interestingly, the ad, which will hit the airwaves tomorrow, doesn’t single out the governor, despite the fact that Tier 6 is his brainchild. Just last night, for example, Cuomo emailed supporters seeking support of his pension reform plan, noting: “Pension costs are growing at an unsustainable rate, projected to increase 185% from 2009 to 2015.”
The governor insists his plan is fair, and has repeatedly stressed that no current employees – only new hires, also known in unionspeak as “the unborn” – will be impacted by the creation of a new pension tier. The unions, led by the AFL-CIO and supported by state Comptroller Tom DiNapoli, beg to differ, insisting that the creation of a defined benefit plan will put the entire fund at risk.
A number of unions are now running campaigns against Cuomo’s budget proposals. (The pension reform plan is indeed contained in his budget, which makes it more difficult for lawmakers to reject). But, like the AFL-CIO, they’re so far avoiding going nuclear on the uber-popular – and powerful – governor himself.
As long as he’s got more than $14 million in the bank and the business-backed Committee to Save New York on his side, an expensive ad war of the sort we used to see during budget battles, is unlikely.
Here’s the script of the AFL-CIO ad:
What’s happening to the middle class? Income for average families is down. Jobs are scarce. Opportunities working people thought they could count on no longer exist. For many New Yorkers, times are tough. And they could get even tougher.
Because some politicians are putting the retirement security of hard-working New Yorkers on the chopping block. But going after the pensions of firefighters, teachers, nurses, school bus drivers, police officers – the people we all depend on – is the wrong way to go. It’s time to rebuild the middle class, not attack what’s left of it.
Working New Yorkers have been the backbone of our success for generations. When they suffer, we all pay the price. Call Albany at 1-877-255-9417. Tell them to fight for the middle class and STOP the attack on our pensions.
ANNCR: Paid for by New York State AFL-CIO, Mario Cilento, President.
UPDATE: Committee to Save New York spokesman Mike McKeon sent this statement:
“It is always unfortunate, but never surprising, that Albany special interests resort to scare tactics that are absolutely false in order to protect the status quo.”
“The truth is not even one teacher, firefighter, police officer or any worker on the job today would be impacted by proposed pension reform. Their pensions are totally protected. It is also true that if we don’t reform this broken system, there may be fewer jobs in the future as costs skyrocket by more than 180 percent in the next few years.”
“This is a problem we can and must fix now. We support Governor Cuomo’s reform agenda as a critical component to making New York affordable for our residents and businesses.”
CSEA Launches Anti-Budget Ad
Feb 3rd - 3:53 pm
The Civil Service Employees Association is launching a new leg in its advertising campaign by slamming Gov. Andrew Cuomo’s $132 billion budget proposal.
From the ad:
“The truth is what you don’t know can hurt you. There’s no transparency or accountability. It erodes decent jobs, harms our communities and diminishes services New Yorkers rely on.”
Not mentioned but suggested in the 30-second is the new, less-generous pension tier Cuomo inserted into the budget that would only apply to new public employees. Tier VI allows for the option of a 401(k)-style contribution.
Cuomo told an audience of county executives on Wednesday that the fight over pensions and teacher evaluations were the two most contentious and potentially bruising fights he’s facing this legislative session (the governor referred to it as the “Battle of Albany”).
Cuomo at the meeting said he wanted to enlist the county executives in the battle, style himself as a latter-day Uncle Sam.
Megna: Pensions Are ‘Crisis’ For Local Governments
Jan 25th - 1:35 pm
Cuomo budget director Bob Megna has been the star witness for the last few days before the joint legislative budget hearings, emerging as the administration’s main defender of the spending plan the governor introduced last week.
And on the controversial proposal to add a sixth pension tier to the public workforce retirement plan, Megna is no different. Among the points of contention is an option to allow new workers to move to a TIAA-CREF inspired plan similar to a 401(k) in the private sector.
Though the new tier does not achieve any significant savings in the coming 2012-13 budget year, Megna says the long-term goal is what’s needed. Cuomo tried and failed to get the tier in June, but it was a stand alone budget bill. The governor in New York has more power in the budgetary process, thus making the sixth pension tier more likely as Sen. Neil Breslin, D-Delmar, told me earlier.
Again, the plan only impacts new workers. But that hasn’t stopped public labor unions from opposing it, who say the proposal is something of a false option for younger workers.
“I think saving $83 billion over 30 years is an important thing,” Megna said. “It’s crippling the finances of state and local governments and we need to take a longer-term view.”
Comptroller Tom DiNapoli said yesterday that the state wasn’t in a position of crisis when it came to the pension fund. Megna said the real concern ought to be the burden carried by local governments. DiNapoli is highly critical of the defined-contribution proposal, a speech that’s taken on more weight after Cuomo made the Tier VI proposal.
“The pension fund is fully funded because employers are contributing rates of 16 to 20 percent,” he said. “That’s a crisis for state and local governments.”
Breslin: ‘Some Form’ Of Tier VI Likely
Jan 19th - 4:12 pm
While Comptroller Tom DiNapoli is down in DC blasting the idea of 401(k)-style retirement plans as “extreme” the No. 2 Democrat in the state Senate believes there will be some form of Tier VI approved.
“There’s been some push back from the unions, some pushback from individual members,” said Breslin, D-Delmar, the deputy minority leader. “But it’s a different time, a time that there’s not that much money for all of us and so I think that discussion will probably lead to some changes but I would not be surprised if there was some form of Tier VI passed this year.”
The plan, as introduced by Gov. Andrew Cuomo, would create a new pension tier for future public-sector workers and save $83 billion over 30 years for municipalities outside of New York City. It includes an optional 401(k) style defined benefit plan.
Though the proposal fell flat in June, Cuomo put this measure into the budget. Given the broad budgetary powers the governor enjoys, lawmakers opposed to the plan would risk a government shut down if it were to be inserted in an emergency appropriation bill.
Breslin, whose Capital Region district includes thousands of state workers, said making it a budget bill gives Tier VI a good chance of passing.
“If we have difficult issues we want to see passed, we always want to see it in the budget,” Breslin said.
Picking Their Battles
Jan 18th - 7:57 am
ICYMI: Budget Director Bob Megna said on CapTon last night that the Cuomo administration decided not to include revenue generators like Wine in Grocery Stores or the legalization of MMA in the budget out of a desire to avoid “controversial” items that could be seen (at least in the case of WIGS) as tax increases.
Megna didn’t rule out the possibility that these and other potential money-making proposals might be brought to the table during the budget talks, nor did he say the administration wouldn’t consider them.
“I think it’s up to the Legislature to decide what items they want to bring into negotiations with the executive,” the budget director told me.
“But we felt, again, this gets to the whole very clear and concise budget message, where we did not feel the need to put sometimes controversial revenue increases on the table or one-shots on the table or gimmicks on the table because we felt we could balance…by keeping agency spending flat and being careful with local assistance spending.”
“So, we didn’t feel the need to go down the road to do things that have been controversial, have potentially considered tax increases and that are sometimes kind of one-time benefits. So, we tried to stay away from that kind of stuff and do a very straightforward budget.”
Cuomo didn’t exactly shy away from fights in his executive budget proposal, but he also was very selective about picking them.
His main targets are again the teachers and public employee unions – much like last year – while more traditional budget foes like, say, SEIU 1199 and the GNYHA, who have a lot of cash at their disposal to wage air and ground wars against the governor and potentially pull his sky-high poll numbers down aren’t even in the ring.
Iannuzzi: $800 Million Is ‘A Place To Get Started’
Jan 12th - 1:00 pm
ICYMI: NYSUT President Dick Iannuzzi told me last night on CapTon that he considers the four percent education funding increase Gov. Andrew Cuomo has pledged to include in his executive budget proposal next Tuesday a floor and not a ceiling.
What’s more, the teachers union, which I think it’s fair to say is in the opening battles of what could become a prolonged war with Cuomo over funding allocation and the teacher performance evaluation systems, is counting on BOTH the Assembly and Senate majorities to push the governor to increase aid this year.
And yes, the union will not be shy about reminding lawmakers they’re all up for re-election this fall – and in new district to boot.
“I expect education to be a battle. It always is,” Iannuzzi said. “I mean, no one wants to walk away from four percent. But four percent, $800 million, is a half a billion dollars less restored than the the cuts from last year. So, $800 million is a place to get started. There’s a lot more than has to be done.”
“And then the question becomes: How is that earmarked? How much is going directly to a classroom? You could probably take $250 million of that and just write it off to transporation. You take another $50 million that the governor talks about in terms of his competitive grants. You’re now down to talking about $500 million dollars. How are you dividing that? How are you using that. How much more do you need if you really want to address the achievement gap that goes on in the classroom?”
“…I would expect that my allies in the Assembly Democratic conference and in the Republican Senate will push for more because they understand the needs of their constituents…And we will probably remind people that it’s an election year as well.”
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