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Legislature and state labor groups in difficult spot on minimum wage, state budget

CSLEA continues to press for contract while challenging governor’s authority in lawsuit


Source: editor@cslea.com

Date: 5/28/2010

Upon the request of Senate President Pro Tem Darrell Steinberg, leaders of the various state labor organizations met May 27 at the Capitol to discuss likely scenarios to address the looming budget deficit.

 

Sen. Steinberg was interested in the status of negotiations with the unions and how that might play into continuing budget challenges. Sen. Steinberg advised the employee organizations to recognize the timing of the budget process and encouraged the unions to keep in close touch with him on the status of negotiations with the administration.

 

He also revealed Gov. Arnold Schwarzenegger's intention to impose federal minimum wage on state employees, effective for the August pay period, if no budget were in place which included pension reform.

 

The labor representatives in the room clearly indicated their recognition of the economic realities that state government faces. But many expressed frustration with the administration's unwillingness to enter into meaningful negotiations designed to provide a "win-win" for both parties.

 

In light of the challenges faced by the Legislature, CSLEA will aggressively continue its efforts to secure a contract which provides for sensible pension reform, but includes sufficient incentives to secure ratification. For the past several months, CSLEA has been engaged in sincere dialogue with the Department of Administration (DPA) in an effort to arrive at a conceptual agreement which satisfies both parties' interests.

 

Additionally, CSLEA and DPA held two days of formal negotiations last week and have scheduled additional dates in the following month. Both DPA and CSLEA have passed formal proposals that are designed to achieve reasonable pension reform while providing CSLEA members with hope for the future.

 

Although the parties are close to reaching agreement, it remains uncertain whether Governor Schwarzenegger is truly attempting to secure pension reform through bargaining, or if he is merely trying to set the stage for unilateral implementation by the Legislature.

 

On the federal minimum wage front, CSLEA continues to be integrally involved in the appeal of the Superior Court ruling that authorized the governor to impose federal minimum wage when the state is without a budget. Last June, CSLEA intervened in state court litigation and successfully removed the case to federal court, thereby biding time for the Legislature to enact a budget.

 

On June 21, 2010, CSLEA-retained counsel Carroll, Burdick & McDonough will participate in oral argument (along with attorneys representing the State Controller and several other labor organizations) before the California Third District Court of Appeal.

 

CSLEA Chief Counsel Kasey Clark will also be in attendance in an effort to gauge the court's receptiveness to the issues raised on appeal. It is hoped that a favorable decision will be rendered before the August pay period should the state remain without a budget.

 

CSLEA will continue its efforts to guard against unreasonable implementation of cuts to Unit 7 members' wages and benefits. It is hoped a tentative agreement will be reached that will allow the parties to address these issues where they should be addressed--at the bargaining table.

 

[Photo from left to right: Sen. Darrell Steinberg, CSLEA lobbyist Craig Brown, and CSLEA President Alan Barcelona]

 


 

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