Hard times are forcing former public employee union organizer Antonio Villaraigosa to play hardball with Los Angeles’ public employee unions. How Mayor Villaraigosa’s demands on the city’s unions play out could be a precursor to a coming give-and-take between the state and its unions.
In attempting to reduce a projected $530 million budget shortfall, Villaraigosa has told city workers that they have to share sacrifices to help balance the budget. The mayor is looking for major concessions, which could include foregoing cost of living increases or reducing the workweek for every employee. Villaraigosa plans to include public safety positions when requesting employee concessions.
Villaraigosa argued that the city workers sacrifice is the only way to avoid widespread layoffs although those layoffs could come if the city unions refuse to negotiate with the mayor. The unions can reject pay cuts that are controlled by contract. But, the contracts do not prohibit the mayor from firing workers.
Some of the unions, notably the police union, have raised objections to the mayor’s plan, but he sees little choice is dealing with the problem.
The reductions Villaraigosa proposes soon may be forced on state workers. Regardless if the budget measures on the May special election ballot pass, the state still faces up to an $8 billion hole in the budget according to the Legislative Analyst.
Taxes likely will be off the table since the state has already gone there, so cuts will have to be made. The largest part of the budget is employee compensation. The state could follow Villaraigosa’s lead is searching for reduction of proposed pay hikes or hours worked in order to preserve jobs for state workers.
The state unions will no doubt protest but public support may not be on their side. Citizens suffering through the crushing recession have frequently questioned what sacrifices government is making.
Another avenue Villaraigosa is exploring to find savings include public-private partnerships, and privatization of the L.A. Zoo and the city’s Convention Center. Milton Friedman would be proud.
When a prominent political figure that is mentioned as a possible gubernatorial candidate takes such a stand naturally the question arises how this might play in the coming election. Villaraigosa is proud of his union roots and previous union support. The economic crisis, he would argue, forced his tough negotiating position.
On the other hand, polishing up some conservative fiscal credentials during tough economic times is not a bad idea. And, it could leave an impression that the mayor has taken a step to the center where Californians like their governor’s to live.