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Collective bargaining makes it possible for employees to negotiate with their employers on issues related to working conditions. Namit & Larry (1987) explains that among others, wage scale, pension, working hours, overtime, safety and health, are set through collective bargaining agreements.
In the United States, the state of Wisconsin was one of the first to introduce collective bargaining rights to its majority public workers. However, the introduction of the Budget Repair Bill (on February 11, 2011) proposed taking away these collective bargaining rights of public-sector unions. The Budget Repair Bill was introduced by newly elected Governor Walker to close a perennial budget deficit. Earlier, the deficit had been filled three times by former governor Jim Doyle (2003-2010) by taking $1.257 billion from transportation fund. Walkers bill was passed by the Wisconsin Assembly, On March 10, 2011, with a vote margin of 53-42.
According to the bill, state employees are required to pay more toward their pension in an attempt to help the state raise up to $ 180 million a year in order to close the states $137 million budget gap. Thus, the budget repair bill makes it almost impossible for public sector unions to bargain collectively for its members over pension, wage scale and healthcare. The bill also limits public employees pay rise in response to corresponding rise in rate of inflation, arguing that such cuts are necessary to prevent massive job losses.
According to the 1996 pension plan collective bargaining agreement, the districts paid for employees a total of 13% to the pension scheme. But the recent legislation presented by Walker requires employers to contribute 6.8%, with another 6.2% contribution coming from the employee. Another provision in this bill to reduce the capacity of the legislative oversight of the state Medicaid program was also strongly opposed by the workers union.
Since the bill became effective as law on June, 29, 20011, the State has recorded positive change. In Kaukauna, for example, school officials project that at end of the financial year they will make a surplus of $1.5 million, up from a $0.4 million deficit. However, the policy has also recorded setbacks. For example, the Wisconsin Education Association Council (WEAC) announced a 40% workforce layoff as a result of loss of revenue.
Wisconsins collective bargaining issue generated a heated debate with some organizations supporting Walkers legislation and others condemning it. Public and private unions joined hands in solidarity to oppose the Governors measures. These included the largest police union whose members are not affected by this legislation. Democratic state senators made all attempts to thwart the passing of the legislation by mobilizing demonstrators during the protests but failed to stop its passage.
On the other hand, organizations (mainly the Tea Party) supporting walkers legislation were led by a conservative activist group called American Majority. The activist group has very strong ties to the conservative Republicans and is thought to be financed by the Koch business tycoon brothers. Conservative media baron Andrew Breitbart was also among those who led the counter-protest.
Davey & Steven (2011) shows that long after the passage of the bill in March 2011, several issues still remain unresolved and major points are still being negotiated. A lawsuit filed by Dane County Executive challenges the constitutionality of the budget repair bill, stating that the bill still contains fiscal provisions. This means that it requires a quorum for it to be regarded as law. A number of lawsuits have also been filed by individuals and workers unions alleging that the bill is not legally enforceable as it contains unlawful budget provisions. These are some of the points being negotiated and which are yet to be determined.
References
Davey, M., & Steven, G.,(2011). Wisconsin May Take an Ax to State Workers Benefits and Their Unions. The New York Times,10 (8), 22.
Namit, C., & Larry, S., (1987). Prescription for Labor Pains: Combine Bargaining with Problem Solving. The American School Board Journal,74 (24), 102.
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