New Indiana Governor kills state labor unions

On his second day in office the new Republican Governor of Indiana, Mitch Daniels, signed an executive order rescinding state labor unions' collective bargaining rights. He did so "to protect the children."

The Governor assured Indiana state workers that they are still free to join unions, and to pay union dues--just that now it will be a completely futile exercise....

The Republican Party tries to assure the world that this move does not indicate an anti-labor movement in Indiana....


http://www.indystar.com/articles/7/208764-5127-092.html

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By Kevin Corcoran and Mary Beth Schneiderkevin.corcoran@indystar.com
January 12, 2005

Gov. Mitch Daniels canceled union contracts covering nearly 25,000 stateworkers Tuesday, saying they stood in the way of his efforts to rapidly overhaulIndiana government.

The order, which will end the ability of those employees to negotiate pay,benefits and work rules with state officials, ends a 15-year policy thatDaniels' three Democratic predecessors maintained by choice.

Daniels, a Republican, said he was ending bargaining rights partly to form aseparate agency to handle child welfare and child support without having toconsult with union officials. The state has been criticized for its handling ofseveral highly publicized child abuse cases.

"This is an important day for children in Indiana. . . . It's an importantday for reform of government," he said Tuesday, flanked by a group of childadvocates outside his office.

The governor said rescinding the state's union contracts would make it easierfor him to boost the pay of child welfare caseworkers and high-performingstate employees. Daniels' actions won't affect pay raises that state workers areto receive this year.

Reaction from the affected employees, who include state troopers, welfarecaseworkers and prison guards, ranged from applause to disappointment.

The unions had bargained for health care subsidies, handled workers'job-related grievances and protected employees' rights during disciplinary proceedings. Daniels' move also means workers lost seniority rights in bidding for jobs,transfers and vacation time.

Members of Indiana's Black Legislative Caucus slammed Daniels' executiveorder.

"It is hard to reconcile the words of our new governor on his first day inoffice with his actions on the second day," Rep. Greg Porter, D-Indianapolis,the caucus leader, said in a written statement.

"Gov. Daniels has spoken long and loud about supporting those hard-working state employees who dedicate their lives to helping the people of Indiana, butnow it appears that he does not support their efforts to earn a decent wage."

Republican lawmakers were quick to praise Daniels while emphasizing his actions do not signal the beginnings of an anti-labor movement in state government.

"There are political implications to this that we will have to watch," said Rep. Luke Messer, R-Shelbyville, and executive director of the state RepublicanParty.

During last year's election, Indiana's two major state workers' unions, theUnity Team and the American Federation of State, County and Municipal Employees, supported Kernan. A smaller union representing State Police, conservationofficers and Excise Police remained neutral, but the Indiana State Police Alliance, which is not a union, endorsed Daniels.

Half of the 35,000 state executive branch employees earn less than $29,738 ayear. About two-thirds of those workers have been represented by unions.

In place of the contracts, Daniels gave more state workers the right to appeal firings, demotions and suspensions without pay to the State Employees' Appeals Commission. That five-member panel, appointed by the governor, can reverse personnel decisions.

"We will insist on full protection of employees against any arbitrary orunfair actions," he said. "In many ways, life will not change at all."

Daniels broke the news Tuesday to union leaders during a brief meeting at the State Personnel Department in the Indiana Government Center. His chief ofstaff, Harry Gonso, and his personnel director, Debra Minott, stayed behind totalk with union officials after Daniels had departed to announce his executiveorder.

UAW Region 3 Director Terry Thurman, who attended the meeting with Daniels, said later he wasn't surprised but took issue with the governor's reasoning.

"If he thinks we're not interested in protecting children, he's way offbase," Thurman said.

Daniels said state workers could continue to join unions, and unions could keep collecting dues from members with the state's help. He also said his personnel director would meet every three months with union officials to hear their concerns.

Practically speaking, however, union officials say there's little they can do without bargaining power. They say that in the past, the appeals commission upheld 98 percent of management decisions, and that union grievances resulted in fairer outcomes.

"Quite frankly, how many people are going to want to pay for something they're not getting that much out of?" said Keith Gill, the public safety union's president.

Indiana is unusual among states because this negotiating authority, not foundin state law, had depended on each incoming governor signing a new executive order. Daniels chose not to renew that order and then rescinded contracts thatwere supposed to run through mid-2007.

At least 13 states have laws on the books giving state workers collectivebargaining rights. In Indiana, the Democrat-led House has passed bills to create a collective bargaining law, but the Republican-controlled Senate has blockedit every time.

Now both chambers are under Republican control, and a collective bargaining law is unlikely.

Some state employees were troubled by Daniels' decision.

"It's a horrible idea," said Irene Hansen, who works at the Indiana State Library. "The union is the only safeguard against management taking advantage of employees. This turns back the clock for Indiana."

Francis "Fuzz" LeMay, president of the Unity Team's Local 9212, said theunion will close up shop and about 10 union representatives will go back to their regular state jobs at agencies such as the Bureau of Motor Vehicles, the Family and Social Services Administration and the Indiana Department ofTransportation.

"Obviously we're disappointed. There's nobody who will speak up for state employees now," said LeMay, a prison guard.

Daniels got a different reaction when he dropped in later Tuesday on ameeting of a couple of hundred Family and Social Services Administration employees. They were meeting their new bosses and learning more about how Daniels intends to break up the agency to create a separate agency to handle child protection and child support collections.

When Daniels asked if anyone had questions, no one raised a hand until oneman spoke up.

He didn't have a question. Instead, he told Daniels he and others respected him for making what was surely a tough decision to end collective bargaining.

The auditorium broke into applause.

"Thank you," Daniels said, with some surprise in his voice.

"When I heard or read that people were simply not doing the job they werepaid to do, and therefore putting kids at risk, and could not be moved orsanctioned, that got my attention," he said. And, he told them, "I hope fervently itwill work out very, very well for every worker in government in the state ofIndiana."

Star reporters Eric Martin and Michele McNeil contributed to this story.

Call Star reporter Kevin Corcoran at (317) 444-2770.