Thursday, July 5, 2012

Labor Unions Suffer Defeat on Taxpayer Revolt

Californians, struggling with an $18 billion budget deficit, stuck with a Sacramento political class owned by Democrats who in turn are owned by labor unions, are facing a massive tax increase in November that will give California the unenviable distinction of having the highest per capita tax burden in the Country. Even modest efforts to reign in spending or do serious pension reform are easily thwarted by big labor lobbyists. For average Californians however, statistics like over 5000 former government workers receiving taxpayer funded pension payouts over six figures annually are really striking nerves. The notoriously generous left of center California voters appear to be in full revolt and they are taking it out on big labor.

Less than a month ago, June primary voters in San Diego and even San Jose, voted to reform public employee pensions, ending budget busting defined benefit plans in favor of the traditional defined contribution plans that most Americans have. The efforts were fought by big labor vigorously but even the Democrat mayor of San Jose successfully urged voters to draw a line with unions and give him flexibility to balance the city budget. In San Diego, the nations fifth biggest city and a city Obama carried in 2008, pension reform passed almost 2:1. Nevertheless, unions are defiant, like spoiled children who will not hear the word “no” and are once again suing, asking courts to overturn the will of the voters.

At the same June election, voters in San Diego and even El Cajon joined in handing construction unions their 6th and 7th straight rebukes in California, effectively banning the use of union-only Project Labor Agreements on taxpayer funded construction projects. What did big labor do? They sued again. The unions may be re-thinking their sue the taxpayer strategy because voters have had enough of the bullying and are standing up all over the state.

Read more: http://finance.townhall.com/columnists/ginaloudon/2012/07/03/labor_unions_suffer_defeat_on_taxpayer_revolt/page/full/

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