Source: www.digitalspy.co.uk
California state employees' union mum on meaning of pay cut vote - Sacramento Bee
Members of California's largest state employee union will vote today on furlough terms negotiated by union leaders and Gov. Jerry Brown.
It isn't clear, however, that the vote will mean anything or, if it does, what it means.
Service Employees International Union Local 1000 declined to say Tuesday if union leadership will abide by results of the ratification vote, which is not required by the union's bylaws.
Nor would the union say how ballots will be counted or what measure of support is required – a majority of all members or just of those voting, for example – to constitute ratification.
"We don't have a comment for your inquiries regarding tomorrow's election," Jim O'Donnell, a union spokesman, said in an email.
The 93,000-employee local posted on its website a list of 88 voting places, including seven in Sacramento, as well as out-of-state locations in Chicago, Honolulu, Houston and New York.
Even if the rank-and-file rejects the furlough and the leadership follows suit, a new budget bill the Legislature is expected to consider today includes language that would let Brown furlough state workers without an agreement with their unions.
The furlough language, introduced in Brown's budget proposal in May, but removed from the Legislature's initial 2012-2013 spending plan, could give the Democratic governor leverage in negotiating with unions that have not yet struck deals or with SEIU should the union balk.
"I don't think our vote matters," said Geoff Shumway, an associate land agent in the Department of Water Resources. "It's going to be imposed anyway."
SEIU announced on Saturday that it had tentatively agreed to a furlough plan in which members will take 12 unpaid leave days over 12 months starting July 1, reducing wages by about 5 percent.
SEIU's bargaining team said on its website that more than 14,000 members had participated in a survey before the agreement with Brown was reached, preferring a temporary pay cut to layoffs by a 2-to-1 ratio.
Because the agreement does not affect other aspects of the local's current contract, including a 3 percent raise for certain employees next year, it is not a contract renegotiation for which member ratification is required, the union said on its website.
However, union officials said they "wanted state employees to have an opportunity to weigh in before the June 30 constitutional state budget deadline."
The reduction of state worker costs is significant to Brown, who is trying to demonstrate a commitment to spending cuts before asking voters in November to raise the state sales tax and income taxes on California's highest earners.
Daniel J.B. Mitchell, a labor and public policy expert at UCLA's Anderson School of Management, doubted SEIU's leadership would go forward with the furlough program if members vote it down.
"I'm sure that if it actually got rejected, they would enter into some further discussions with the state," Mitchell said. "What that means is not clear. If they've gone through the process and people say this is not what they want, the union officials then would be strained to do something."
But Mitchell said SEIU would likely not have allowed a membership vote if leaders didn't expect the furlough program to be ratified.
"Although they can always be wrong," he said, "I think they think that this will pass."
Lori Kemper, a graphic designer for the state Department of Parks and Recreation, said she doesn't mind the furlough. Her household is a two-income home, she said, and the furlough affords her more time with her family.
She said she is also mindful of the state's financial troubles, and she prefers furloughs to layoffs.
"I'm grateful just to have a job," she said.
STATE BUDGET
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Call David Siders, Bee Capitol Bureau, (916) 321-1215. Follow him on Twitter @davidsiders.
Source: www.sacbee.com
California city to become largest to file bankruptcy - CNN
(CNN) -- The California city of Stockton approved a special budget Tuesday night, paving the way for it to become the largest American city to declare bankruptcy.
"Unfortunately, we have no comprehensive set of agreements with our creditors to offer you ... that would eliminate the $26 million budget deficit and avoid insolvency," City Manager Bob Deis said at a council meeting.
Negotiations, however, continue with some creditors.
"I think we're very close in announcing some possible deals with some creditors in the future," he said. "In fact, it could be as many as a third of the creditors ... that's not enough to balance the budget."
The city council approved the pendency plan on a 6-1 vote, meaning Stockton will file for protection under Chapter 9 federal bankruptcy laws before Sunday when the new fiscal year begins.
The plan is essentially a new budget for the city of about 291,000, spelling out day-to-day operations under bankruptcy.
The city says it will continue to pay employees, vendors and service providers, but curtail most other expenditures, such as debt service.
Numerous governments across the country have filled for bankruptcy since the financial crisis of 2008.
Last year, Jefferson County, Alabama, filed the biggest municipal bankruptcy in U.S history. In December, the county was $4.2 billion in debt.
The largest previous municipal bankruptcy case was filed in 1994 by Orange County, California, which owed approximately $1.7 billion to creditors.
CNN's Ed Payne contributed to this report.
Source: www.cnn.com
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