Article Last Updated: 06/12/2005 09:10:24 AM
The power struggle in CALIFORNIA - Arnold versus public workers
AMERICA has a problem with its public employees. They are not downwardly mobile enough.
Policemen, firefighters, teachers, hospital nurses — they still belong to the one part of the U.S. economy where the New Deal hasn't been repealed. Fully 90 percent of them have defined-benefit pensions as of old. In the private sector, just 60 percent of employees have retirement plans, and a scant 24 percent still cling to defined-benefit plans. Fully 86 percent of public employees are covered by on-the-job health insurance; in the private sector, the rate has fallen to 66 percent.
According to the Employee Benefit Research Institute, public employees make on average $49,275 a year. A sub-princely sum, that, but better than the $34,461 that is the average annual income of private-sector workers.
There are a number of reasons public employees have been able to preserve the kinds of benefits and, in some instances, living standards that were once more common to American workers generally, but chief among these is unions. While 37 percent of public-sector workers are unionized, just 8 percent of private-sector workers are. Through their power at the ballot box, public employees have maintained the ability to bargain with their employers, who are either elected officials or their appointees.
But are decent living standards in one sector sustainable when they're dependent on the taxes of an increasingly beleaguered private sector? More and more, conservative political strategists see an opportunity to weaken the Democrats — traditionally the beneficiaries of public-employee union support — by pitting private-sector voters against public-sector ones. That certainly was Gov. Arnold Schwarzenegger's goal earlier this year when he backed an initiative that would have terminated the defined-benefit pensions for California's state and municipal employees and shifted them to 401(k)s instead.
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http://www.insidebayarea.com/sanmateocountytimes/oped/ci_2798123