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Unfairness in RI Government’s Priorities

Mike Stenhouse’s recent op-ed in the Providence Journal puts the RI Center for Freedom & Prosperity’s Public Union Excesses report in a broader context:

Beyond these extreme financial costs, an even more corrosive impact from this political cronyism is at play. People have lost trust in their government and are fed up with betrayals from lawmakers who have forgotten them, who cater only to special-interest concerns. Lawmakers make it ever-harder for people to take care of their families and reside in Rhode Island.

For these reasons, Rhode Island is not keeping pace with the rest of the nation when it comes to jobs and population growth. After 10 years of perhaps the slowest economic recovery among all states, Rhode Island’s political leaders are failing on their promises to help the average family.

Instead, by heaping more privileges upon those who help get them elected, politicians continue to lose the trust of the people, who are also losing hope for their state. These tragic circumstances have conspired to make it a virtual certainty that the Ocean State will lose a prized U.S. congressional seat after the 2020 national census because of its stagnant population growth.

Rhode Island strangles its families and businesses with taxes and regulations, but often, the sheer unfairness of the system can be the real poison.  As a member of the Tiverton Town Council, yesterday I participated in a “business walk” hosted by the Newport County Chamber of Commerce, which involved stopping in to talk with some business owners around town.

Of course, we heard about the problem of taxes, but the subjects that really animated business owners would better be classified as injustice.  The cost of government labor was seen not only as a cause of high taxes, but also as a budget imbalance preventing infrastructure improvement.  Similarly, the capriciousness of enforcement, with the rules not seeming to apply fairly to every business and changing depending on which government inspector paid a visit, is irksome beyond the cost.

Even after figuring out how to overcome all the regulatory obstacles that the state throws in their way and even after building high taxes, regulation-driven energy costs, and government bungled healthcare expenses into their business models, they still never know when an inspector will find some new rule to enforce or the legislature will come up with some new fee or obstacle to impose.

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Union Excess Talk on Changing Gears

Dr. Dennis Sheehan and I had the pleasure of appearing in-studio with Mike Collins and Chris Maxwell this past Saturday for their WPRO show, Changing Gears, to talk about the report that we co-authored for the RI Center for Freedom & Prosperity about the excess costs of state and local government attributable to collective bargaining with labor unions.

Listen to “Changing Gears” on Spreaker.

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How Much Union Members Are Paid, And How Much Taxpayers Can Afford

With the third highest property taxes in the country, a major encumbrance within an overall anti-taxpayer and anti-business climate that has dropped Rhode Island into bottom-10 rankings in a number of critical national indexes, the excessive costs of collectively bargained government services can be directly linked to this statewide problem.

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Local Pensions and the Labor Squeeze

A summary for Pensions & Investments of Rhode Island’s latest report concerning local pension plans passes a spotlight quickly past the ways in which government agencies, aided and abetted by labor unions, obscure the costs of benefits:

For the underfunded plans, assumptions about investment returns and payroll growth “may not be realistic,” said the report, which cited Providence’s 8% return assumption as the highest in the state.

“In more than a few cases … local pension liabilities are, or have the potential for, crowding out other important budget priorities.”

Take a look at the scorecard for Providence on page 22 of the report.  The plan is 26.3% funded, which means it would have to have about three times more money in the fund collecting investment returns right now in order to be solvent.  The city assumes that its payroll will only grow 3.5% per year, which must account for both raises and new hires.  It also assumes an unrealistic 8% return on its investments every single year, which means it can put less actual money into the plan each year, because it assumes more will come from investments than is likely.

To top it all off, Providence has more former employees collecting pensions than it has employees paying into the system.  Consequently, it pays out more every year than it adds to the fund, by about 4%.

Think about that.  The city’s pension fund is actually shrinking, not growing.

In order to buy labor peace, Rhode Island governments have made huge retirement promises.  So they don’t break the bank, they’ve then disguised the true cost with unrealistic assumptions.

That sword cuts both ways, though.  Because the pressure that the pensions should be applying to budgets is drastically understated, labor unions are able to push for bigger raises and benefits for active employees, which has crowded out the money for appropriate pension funding.  Now that accounting standards are making pension funding more visible and even mandatory, it has joined with other labor costs in squeezing the budgets for other expenses — even as prevailing wage and other union rules have ensured that the money for those other expenses cannot go as far as it should.

As the RI Center for Freedom & Prosperity’s new report on excessive labor costs shows, these and other problems are creating a huge additional burden on our state, which is already struggling to meet budgets while allowing its economy to grow.

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The Balance of the Budget Under Collective Bargaining

Today, the RI Center for Freedom & Prosperity released a major study that I coauthored with Penn State business professor Dennis Sheehan about the effects of collective bargaining in the public sector on the cost of government.  Using both statistical estimates and reviews of specific contract provisions and budgets, we found that the state government’s cost of labor is $96–299 million too high, with an additional total for all municipalities, school districts, and fire districts coming in at $228–825 million.

Our “best estimate” for the combined total excess for the whole state is $888 million, or 21%.  This is money that state and local governments should be able to use for other purposes, including tax relief.  In this sum, we see the primary reason that state and local governments never seem to have enough money to accomplish basic objectives like maintaining buildings, roads, and bridges and why our taxes are still among the highest in the country.

There is a lot to the report, and we’ll be laying it out in detail and building on it over time.  The ultimate conclusion, however, can be seen in the following chart.  We chose Portsmouth for our most-detailed analysis because it is the median town for taxes and population and also makes a good amount of the required information publicly available.

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One way to understand this chart is to take the two largest segments as the baseline budget that the town must have to do everything it currently does, with market-rate employee compensation in green and the budget for everything else in dark blue.  Right now, every wedge on the chart in between those two goes toward employee pay and benefits.

If the report’s “low-end estimate” of excess compensation is correct — that is, if we use our most conservative methodology — the second-darkest blue wedge could shift from employee compensation in order to pay for other expenses or to provide tax relief.  At the other end, if even our “high-end estimate” of excess is accurate, nearly one-quarter of the town’s entire budget could be shifted away from paying employees.

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Holding the Thread on Pension Stipends

This idea of giving government retirees a stipend in years that they don’t receive cost of living adjustments (COLAs) to their pensions seems to me a much more dangerous one than it might appear on the surface:

In legislation debated in a House Finance Committee hearing Tuesday night, Reps. Robert Craven, Michael Morin (a retired firefighter), Carol McEntee and Justine Caldwell propose that “an increasing stipend″ be paid retired state employees, municipal employees and teachers or their beneficiaries in years when there is no scheduled cost-of-living adjustment. …

Starting in the year that begins Jan. 1, 2020, the legislation would have the state pay a 3% “stipend″ on the first $15,000 in pension benefits, a boost of up to $450 initially, in each year in which there is no scheduled COLA payment.

In 2022, the stipend would increase to 3% of the first $20,000 in pension benefits, up to a maximum of $600 a year, and in 2026 it would increase again to 3% of the first $25,000 in benefits, up to a maximum of $750 per year.

Starting in 2030, the proposed increases would be tied to an annual index.

The pension system is a fund into which the employee and the employer pay throughout his or her career.  The supposition is that those contributions will be enough by the time the person retires to cover his or her retirement with no further additions.  If the system is not working, adjustments should be made within the system or funding increased to the system to shore it up.

To take the approach of adding some additional direct payment to the pension plan’s members is, in principle, no different than having the state pick any group of people and start giving it money.  As a practical reality, that happens all the time — far too much — but this legislation would cross another line and destroy the principle that government shouldn’t do such things.  A lingering sense of propriety may be all that’s holding our government together at the moment, and it’s a thread that shouldn’t be cut.

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Rhode Island Is Losing The Competition Between States – Look for Major Report by Center

Although the state’s rank stayed the same, this month was not a good month for the state on the Center’s Jobs & Opportunity Index. Rhode Island remains last in New England at 47th place in the country. Employment was down another 521 people from the first-reported number for February, and the labor force dropped 1,234.

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Low Revenue and Locking in the Union Advantage

A week ago, Providence Journal reporter Katherine Gregg tweeted out that the state’s revenue was under performing by about 7%:

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Note two things.  First, if not for the application of sales taxes to new items, especially online, and an increase in the various fees and such that make up “departmental receipts,” the picture would be significantly worse.  Second, about half of the shortfall is attributable to unexpectedly low income taxes.

This is fully in keeping with the latest Jobs & Opportunity Index report from the RI Center for Freedom & Prosperity, which found that Rhode Island is uniquely lagging the country in residents’ personal income growth.  In fact, we were the only state to lose personal income between the latest report from the Bureau of Economic Analysis and the originally reported numbers for the prior quarter.

Combine that fact with a downturn in employment in the Ocean State, and we’ve got a clear warning sign that we need to change direction.  Unfortunately, our governor is busy pushing progressive social-welfare policy while the General Assembly is hurrying to grab the unions everything they can before the next downturn.

That last note kind of makes one wonder what the legislators know that the rest of us don’t.  If they are expecting another recession in Rhode Island, that would be the time to lock in as much as they can for their friends in the labor unions.

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The Employment Situation In Rhode Island Is Getting Worse – Bucking National Trend

Happy Easter from everyone at the Center to you and your family! We hope you had a great holiday weekend.

We wish we had better news to deliver. Unfortunately, the employment situation in Rhode Island is getting worse, bucking the national trend. While state politicians crow each year about not implementing broad new taxes, the unfortunate truth is that by nickle-and-diming residents and by not implementing aggressive reforms Rhode Island will continue to lose ground, nationally.

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Who Is Working For You? New Major Report Coming Soon From The Center

Who does the Rhode Island General Assembly really work for? Too often, the people of our state are left voiceless as special interest dominate the conversation. Recently, the Ocean State Current broke a major story that ignited media coverage across the state. In H5662 and Whom Rhode Island Representatives Represent, Research Director Justin Katz, uncovers a key admission from the political class.

During the March 11th Tiverton Town Council meeting, a member of the General Assembly admitted that he put forward the bill at the request of Speaker of the House, without regard to the cost to the town he represents for the state firefighters union.

Don’t wait, you can catch the video on the Current by clicking the link here. You can also find the followup here.

In the coming weeks, the Center will be releasing a major report on the cost of collective bargaining in the Ocean State. This will be the longest and most in-depth research project the Center has ever undertaken on any topic. We invite you to be on the lookout for this critical report.

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The Pressure the General Assembly Is Trying to Control

The Providence Journal today has published an op-ed in which I address the admission of Representative John “Jay” Edwards (D, Portsmouth, Tiverton) that he put in legislation for the state firefighters union, by way of Speaker of the House Nicholas Mattiello, without much consideration of its effect on the people he’s supposed to represent:

Watch Rhode Island politics for even a short time, and you’ll catch on to certain truths. Everybody seems to know them, and sometimes an op-ed or talk radio show will blurt them out. By now, in 2019, these truths have been sufficiently longstanding and have produced so many of their inevitable consequences that Rhode Islanders feel them in their bones. They are why few run for office and why many leave the state, year after year.

Still, a person who’s watched Rhode Island politics can’t help but be surprised when an insider, who ought to have the good taste to pretend these truths aren’t true, admits one of them. I had this experience at the March 11 meeting of the Tiverton Town Council, of which I am the vice president. We were engaged in a ritual conversation with our town’s representatives and senators, and I asked state Rep. John “Jay” Edwards about one of his bills.

One important lesson shouldn’t be lost as this matter predictably falls along lines of unions versus taxpayers.  With legislation like the bills Mattiello asked Edwards to submit, legislators aren’t only elevating the interests of the unions over those of the broader public.  They’re also advancing the statewide unions’ interests over those of the union locals and their workers.

That’s ultimately the upshot of having the General Assembly put limits on what the sides can negotiate in any particular city or town.  Inherently, both sides of the negotiating table are restricted in what they’re able to negotiate.

The pressure on budgets doesn’t go away.  Elected officials and municipal employees simply have to find other ways to release it.  Perhaps Mattiello and Edwards expect or hope that the “release” will come in the form of big tax increases in an already over-taxed state.  More likely, the result will be exacerbated under-funding of pensions, infrastructure, and other areas of the budget that aren’t as straightforward.

If the budget pressure can’t be released in those ways, the bubble will only grow, to the point that we’re talking about privatization and regionalization.  Maybe those are good ideas and maybe they’re not, but the only way to truly know is to let the people closest to negotiations talk about and try everything.

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Negotiating with the Speaker in the Room

Thanks to the reporting of Providence Journal reporter Katherine Gregg we have some explanation of the motivation behind Democrat state Representative John “Jay” Edwards legislation to change overtime rules in favor of fire fighters.  Unfortunately, the explanation comes not from the Tiverton/Portsmouth representative who put the bill in, but the Speaker of the House who told him to do it:

During an interview with The Journal on Tuesday, Democrat Mattiello, of Cranston, acknowledged he is an enthusiastic supporter of the legislation that Cranston Deputy Fire Chief Paul Valletta has been pushing at the State House in his role as the $3,035.58-a-month lobbyist for the Rhode Island State Association of Fire Fighters. …

“We had the opportunity to pass this bill several years ago. We elected not to at that point and I remember knocking on one of my constituent’s doors. He was a Providence firefighter and he was a little frustrated and he said, ‘I am still going to vote for you speaker but I’m angry with you. … I have not seen my wife and my 8-year-old daughter in a year.’ That is inappropriate,″ Mattiello said. “The schedules that three platoons create are horrific on families … and if communities are going to do that, they should at least be required to pay the overtime.”

Mattiello acknowledges that he did no research concerning this issue or how other states have addressed it.  Despite the distance from Cranston to the East Bay, he might at least have made some inquiries about things in Tiverton.  We’ve worked hard on a solution — through a contract negotiated in good faith that is on track to be signed within mere weeks — precisely because employees were unhappy with the arrangement and it has affected morale, retention, and hiring.  In fact, his interference at the state level has complicated the situation locally.

Readers of this site know that I’m (let’s just say) skeptical of unionization, especially of government employees, but even by labor’s own standards the whole idea is that two sides come to the table and work out an agreement.  If the Speaker of the House is in the room, too, then the arrangement deserves much more than skepticism.

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Truck Tolls: Plaintiffs Appeal Ruling to Dismiss; Do Not Accede to Moving the Fight to State Court

On March 19, the federal district court in Providence dismissed the American Trucking Associations’ lawsuit against Rhode Island’s truck-only tolls, heeding the State of Rhode Island’s legal argument that their truck-only tolls are not a federal but a state matter and within the state’s purview to assess because they are actually taxes. (Wait, what?? Since when? From the beginning and all through the toll battle, Governor Gina Raimondo and state leaders repeatedly told us that tolls are a “fee”, a “user fee“, an apple – anything but a tax.)

At that point, the ATA had two choices: file the suit in state court or move to keep the suit at the federal level by appealing the decision. They just issued a statement indicating that they have chosen the latter course, stating, in part

Yesterday, the American Trucking Associations, along with three motor carriers representing the industry, appealed last week’s decision by the federal district court in Rhode Island to dismiss their challenge to Rhode Island’s RhodeWorks truck-only toll scheme, on procedural grounds.

In its challenge, ATA contends that Rhode Island’s truck-only toll scheme is unconstitutional because it discriminates against interstate trucking companies and impedes the flow of interstate commerce. In its March 19, 2019 decision dismissing the case, the district court did not address the merits of that constitutional claim. Instead, it held only that ATA’s challenge could not proceed in federal court.

ATA President and CEO Chris Spear went on to underscore, “…we look forward to establishing the unconstitutionality of Rhode Island’s discriminatory tolls on the merits.”

[Monique has been a contributor to the Ocean State Current and Anchor Rising for over ten years, was volunteer spokesperson for the citizens advocacy anti-toll group StopTollsRI.com for three+ years and began working for the Rhode Island Trucking Association as a staff member in September of 2017.]

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Tilted Labor Relations All Around the State

The Providence Journal editorial board points to one of those deep details of state government that does more damage than the average voter probably realizes.  The subject is the State Labor Relations Board (SLRB):

It is supposed to include three members representing labor, three representing management, and one representing the “public.” What could be fairer?

Except the politicians’ appointments heavily tilt the board toward labor.

Board Chairman Walter Lanni, appointed by Gov. Lincoln Almond in 2000, is supposedly in the management camp. But he served for more than two decades on the executive board of the Cranston firefighters union, securing extraordinarily generous contracts for union members.

Another “management” appointee is lawyer Alberto Aponte Cardona, who has represented public employees and is the brother of Democratic Providence City Council member Luis Aponte.

However experienced and dedicated to public service they might be, these hardly seem like rock-ribbed defenders of the interests of management and business. There are plenty of other business people, surely, available to serve.

To my experience, among those who negotiate contracts in Rhode Island, it’s well understood that the SLRB is a dead end for managers seeking protection of their rights — basically an added step (and expense) before getting into an actual court.  (And the courts are only fair in comparison.)

Of course, the SLRB is only one gear in the machine tilting things toward organized labor.  Last week, Democrat state Representative John “Jay” Edwards told the Tiverton Town Council that the way to get legislation passed is to ask the local unions to put in bills.  (I’ll have a post on that in the near future.)

All of this raises a concern that it’s impossible to have truly good faith negotiations in the Ocean State.  When legislators use bills to put a thumb on the scale for labor unions during specific negotiations and the SLRB can’t be trusted to keep labor relations fair, there can be no doubt who holds sway.
A related problem is that simply grousing about the inequity in local publications is going to have absolutely no effect. We need a concerted effort to disrupt the political fortunes of those who resist change toward a more fair arrangement, and few are willing to make themselves that clear of a target.

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Another Consideration with Binding Arbitration for Teachers

A Providence Journal editorial worries that the teachers unions may have finally bought themselves binding arbitration from the legislature and governor this year.

Such a change would mean that the unions could dig in their heels when a contract is due and try their luck with a three-person arbitration panel that ultimately doesn’t have to worry about where the money will come from or what other priorities might be sacrificed, as elected boards must do.  The editors note the political imbalance:

Labor interests have immense financial resources, politicians in their pockets and batteries of relentless lobbyists to help secure their gains at the State House. Citizens have little more than their own vote and their voice in trying to restrain property taxes and move Rhode Island in a healthier direction. But voices and votes, if used, can frighten enough politicians into doing the right thing.

The leverage of citizens and their elected officials in negotiations is something I’ve learned a bit about since I was elected to the Tiverton Town Council in November.  When it comes to police and fire, the dynamic is very different.  Not only are they dealing with emergencies and public safety, but their 24/7 schedules create challenges that fall squarely within management rights.  That means arbitrators cannot touch them.

What are management rights when it comes to teachers unions?  Maybe I’ve been missing something, but I’ve never gotten the sense that school departments could simply force teachers to stay in their classrooms longer without negotiating that into their contracts, for example.  And any such moves may also impose requirements on students and families, making them less likely.

In other words, binding arbitration not only has less justification for teacher unions than public safety unions, but it also comes with less leverage for management.  That is, it’s simply a flex of political muscle that will create huge imbalance in local budgeting.

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RI Government Is Always a Growth Industry

For the “Who is serving whom?” file, the Associated Press reports:

The number of Rhode Island state workers who made $100,000 or more increased 21 percent from 2016 to 2018.

WPRI-TV, citing state payroll records, reports that 2,336 state workers had six-figure salaries in 2018, compared to 1,936 in 2016.

The employees accounted for a 23 percent increase in state spending to nearly $304 million.

Apparently the biggest increase is in correctional officers, attributable to a freeze in hiring that will likely improve in the near future.  Rhode Islanders should be skeptical.  The Corrections department has had a long prominence on the list of high-earning state employees, with 21 out of 33 employees earning over $100,000 in overtime alone back in 2011.

When The Current looked in 2017, Rhode Island had the fifth-highest cost per prisoner among states, which was sixth-highest per capita, which was an improvement from second-highest per prisoner in 2001.

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The SEIU May Get a Child Care Reward for Its Political Support

Here’s some legislation that would be a reward for the SEIU for all of its political donations during last year’s election.  Unsurprisingly, the bill summary is misleading:

This act would expand the tiered-rate structure for the childcare assistance program to meet the federal benchmark for access to high-quality childcare for all age groups of children, with higher rates paid to licensed child care centers that have achieved higher quality ratings in “BrightStars”, the state’s quality rating and improvement system. A requirement that childcare providers must raise tuition rates for all other public or private paying families in order to receive higher state rates is removed.

The law already provides for tiered payment rates.  All this bill would do is dramatically increase the amount that taxpayers are required to pay.

Taking the taxpayer’s point of view puts another light on the section removing a “requirement that childcare providers must raise tuition rates for all other public or private paying families in order to receive higher state rates.”  Right now, the law simply states that taxpayers won’t pay more than child care providers charge their unsubsidized customers.  This bill would allow providers to charge those families who pay for their own care less.

One consequence of this change in incentives is obvious: To the extent that the market rate for child care is less than the government’s rate, providers will have incentive to fill up available space with subsidized customers unless families can pay more.  If this creates a crisis, then (from the Big Government perspective) so much the better.  The politicians will be able to cash in on the promise of giving away “free” care to everybody.

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RIC’s Wrong Solution for Subject Matter Gaps

This plan from Rhode Island College illustrates well how our state’s establishment is attempting to cure the symptoms of our educational problem so as to avoid solving the problem itself:

Starting this fall, students who study elementary education at RIC will also be trained to teach one of the following subjects: special education, middle school math or middle school science. …

Like most states, Rhode Island doesn’t have a generic teacher shortage. It has a shortage in certain subjects, including special education, math, science and English as a Second Language.

A new study by Bellwether Education Partners concludes that there is no overall shortage of teachers. Rather, districts face a “chronic and perpetual misalignment [between] teacher supply and demand,” according to “Nuance in the Noise.” Bellwether is a national nonprofit organization that advocates for under-served students.

The problem is our union-driven factory-worker model for education.  Districts can’t differentiate sufficiently between different teaching positions, so challenging positions are dramatically underpaid while other positions pay better than they should, given the work and the willingness of candidates to take the job.

Consequently, public schools attract large numbers of people to the areas precisely where they are not needed.  That is a problem that districts could fix through contract negotiations and that the state could help fix through changes to state law, including laws that currently give the unions an indomitable hand in negotiations.

When challenged on this sort of thing, the response of union organizers is to trot out their approved talking point:  “We want a qualified teacher in every classroom.”  That is the sentiment that appears to be behind this attempt at RIC to plug holes by forcing every teacher who wants to teach elementary school to be qualified to teach something for which there’s actually demand.

Rhode Island is still missing the point by ignoring the importance of individuals’ interests and refusing to allow the market to place an accurate value on certain skills and talents.  Giving education students who’ve shown no special interest in or aptitude for certain subjects might help around the margins, but we should be skeptical of the outcomes for students.  We should also expect that any prospective educators who discover that they have a those valuable talents will make the same calculations that are creating the shortage.

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Yet More Bad Toll Numbers from Raimondo & RIDOT

Surprise surprise surprise! WPRI’s Ted Nesi reports that

Gov. Gina Raimondo has sharply lowered her forecast of how much money truck tolls will generate this year because they are getting and running more slowly than initially expected.

The budget proposal Raimondo released earlier this month projects that tolls will generate $7 million in the current 2018-19 budget year, which is $34 million less than was expected when the budget passed last June.

If you’ve watched the toll discussion and rollout even casually, you will know that this development is actually not at all a surprise.

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Wagner’s Warning for Rhode Island

A scathing editorial in the Providence Journal takes Education Commissioner Ken Wagner to task, suggesting that he never should have been hired:

Buried in the story, on the jump page, was an astonishing revelation. “In my three and a half years, I’ve seen only four classrooms that challenge kids at the levels the standards require. We are dramatically under-challenging our kids.”

That is a shocking admission. In the entire state, with its 300-some schools, Commissioner Wagner has found only four four classrooms where students were being adequately challenged.

The referenced story is an interview with the $225,000-per-year commissioner, and the editorial rightly snarls about his insistence that “it’s no one’s fault.”  But in one respect, the editorialists might have been a little unfair, inasmuch as they missed Wagner’s lightly hidden warnings:

Wagner said Rhode Island might be ready for a test-based graduation requirement in two or three years, when educators and elected officials have a chance to dig into the latest test scores. Next year, he said, the education department will release data on students who have reached proficiency on the Rhode Island Common Assessment Program or RICAS, called a commissioner’s seal, side-by-side with high school graduation rates.

“I’m not opposed to it. Just not right now,” Wagner said. “Let everyone digest the dramatic gaps between high school graduation rates and student proficiency and then revisit it.

“If you change the graduation requirements, everyone is going to bank on (the belief) that we’re going to blink,” he said. “The legislature will step in again.”

Also:

“If absenteeism rates are high,” he said, “there is something wrong with the school … with its climate and culture. Our first role is shining a light on this. Every school is talking about this. We have named it.”

There you go.  Basically, the education commissioner is confirming that the problem is a system in which powerful labor unions create an unproductive, low-quality environment with no hope of improvement because they can make the politicians blink.  The trick those legislators and the governor are trying to pull off is to find a way to squeeze some improvement out of the system without actually naming (or fixing) the underlying problem.

It won’t work, and no one should blame Wagner if he sees escape as the silver lining of his scapegoating.  By contrast, we all should wonder what sort of person would want to take the job on the politicians’ terms, even with that six-figure pay rate.

By capitulating to progressive-union pressure, and despite disingenuous claims that no broad-based taxes were imposed, Ocean Staters will once again bear increased burdens to pay for new taxes and regulations, more spending, and more union giveaways. Lawmakers chose to appease, rather than resist, the progressives’ job-killing, big-spending agenda.

A Rationale for Expanding Janus

In the continuing pursuit of worker freedom, the Mackinac Center Legal Foundation has filed a lawsuit to clarify (or, I guess, expand) the recent Janus v. AFSCME ruling to railway and airline employees.

Janus found that government employees could not be required to pay for union representation if they were not members of the unions that bargained for their workplaces.  The specific legal question in the new case is whether the Railway Labor Act extends those rights.

I haven’t reviewed the legal reasoning to be able to explain why the Railway Labor Act makes the difference.  The point in Janus, as I understand it, was that unions negotiating with government are inherently producing political speech, even when they simply negotiate contracts.

But one of the plaintiffs in the case, Lin Rizzo-Rupon seems to make the case that the right not to join unions should be universal:

“It’s my money. I don’t feel that I should be required to pay someone to protect my job,” said Rizzo-Rupon. “We now have laws to take care of our health and safety in the workplace. I don’t think I should be paying taxes to the government that’s protecting me and then also be paying these mandatory fees to a union for those same protections.”

If the point is that the Railway Labor Act affords protections to the worker, then all workplace or labor standards would apply.

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A Long Time for a Decision on a Rhode Island Labor Question

A Rhode Island–initiated labor union case that the National Right to Work Foundation is asking a U.S. Court of Appeals to force the National Labor Relations Board (NLRB) is a helpful reminder of the abuses of the Obama administration.  The underlying case, brought by Jeanette Geary, is nine years old and has been sitting without resolution for the last five:

Geary, then a nurse at Kent Hospital in Warwick, Rhode Island, filed an unfair labor practice charge in 2009 with free legal aid from Foundation staff attorneys. Her charge stated that United Nurses and Allied Professionals (UNAP) union officials unlawfully spent her forced union fees and failed to meet financial disclosure requirements as to the amount of the compulsory fees required as a condition of employment.

One might conclude from the summary that the union was simply asserting that dues-driven funds were spent appropriately without providing any evidence.

In 2012, President Obama’s illegally-appointed NLRB rejected Supreme Court precedent and granted union bosses power to charge nonmember workers for union political lobbying, including lobbying in other states. However, that decision was invalidated by the Court’s holding in NLRB v. Noel Canning that the Board lacked a valid quorum because of three unconstitutional “recess appointments” President Obama made.

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