Local News
March membership meeting
The
March meeting of the Local 1085 membership will be at 7 PM on Tuesday, March
8, at the union hall in Woodbury Heights.
May membership meeting
The
usual June membership meeting has been rescheduled for Tuesday, May 24,
at the union hall in Woodbury Heights. The meeting will be at 7 PM and will
include the election of delegates to the CWA Convention. At the conclusion of
the meeting there will be an election for members of the bargaining committee
in Gloucester County.
Union members turn out for Unity Rally in Trenton
Over 3,000
union members— including a handful of members from Local 1085—braved the rain
on Friday, February 25 to demonstrate support for workers in Wisconsin, where a
right-wing, union-busting governor is attempting to eliminate collective
bargaining rights for most public employees. A message was also delivered to
Governor Christie and the legislature in New Jersey to stop the attacks on
public employees here as well. Speakers included AFL-CIO president Rich Trumka,
NJ AFL-CIO president Charlie Wowkanech, and CWA’s international president,
Larry Cohen (pictured below).
Battle shaping up over pension takebacks
New
Jersey’s public employees would pay more for reduced pension benefits under
legislation being pushed by Governor Christie, but CWA and other unions are
looking instead at a bill sponsored by Senate President Steve Sweeney that
would be fairer in its impact.
The
Republicans’ latest pension reform bill, A-3796/S-2705, would increase pension
contributions for employees in PERS and TPAF from 5.5% to 8.5% of base pay. Despite
the increased contributions, pensions for future retirees would be reduced by
changing the multiplier in the pension formula from 1/55 to 1/65 for future
service credit—a decrease of approximately 15%. In addition, most employees would
have their pensions calculated according to their five highest years instead of
the three highest years, which could further decrease pensions by 3% or more, depending
on the employee’s salary history. Furthermore, employees would have to wait
until age 65 for full retirement benefits, except for employees who have
already accrued 25 years of service or have already reached the former
retirement age before the changes take effect. Early retirement would require
30 years of service instead of 25. Finally, cost-of-living adjustments (COLAs)
would be eliminated for all retirees, both present and future.
The
Democratic alternative introduced by Senate President Steve Sweeney, S-2696, would
allow the various pension boards to adjust the employee contribution rate as
needed so that employees continue to fund 50% of the “normal cost” of the
pension system (half the annual payout). Employees would not be charged for any
unfunded liability resulting from the failure of the state or other employers
to pay their required share. Although Sweeney’s bill would change the regular pension
multiplier from 1/55 to 1/60 for future service, it would allow individual
employees to keep the 1/55 rate by paying more into the fund. Likewise,
although Sweeney’s bill would eliminate COLAs for employees with less than five
years of service, it would allow individual employees to keep the COLA guarantee
in return for paying a higher contribution rate. The bill also contains a
provision declaring that employees are contractually entitled to a securely
funded pension.
Union
officials said unless major changes are made, the pension funds are in danger
of becoming insolvent because the state has failed to pay its required share
for many years. Sweeney’s bill calls for some sacrifice by employees, but is
much fairer than the Republican version and gives employees some legal leverage
that is currently lacking. Nonetheless, union officials are still concerned
about getting the state to pay what is needed. Governor Christie has said he
will pay a portion of the needed funding this year, but only if the Legislature
agrees to his demands for changing the system.
Unions angered by health benefits bill
Although
legislation passed in 2010 requires public employees to pay at least 1.5% of
their salaries toward the cost of health benefits, Governor Christie wants to raise
the ante considerably by making employees pay 30% of the premiums. Meanwhile, a
bill introduced by Senate President Sweeney would require employees to pay
between 12% and 30% of the premiums, depending on salary. The bill would soften
the blow for current employees by phasing in their contributions gradually over
a four-year period (for single coverage) or a seven-year period (for other
coverage).
According
to Sweeney’s bill, current employees who retire after enactment of the
legislation and receive health benefits from their employer will have escalating
contribution rates similar to those of active employees, except that employees
who already have 25 years of service when the bill is enacted would be exempt.
Sweeney’s
bill would also prohibit local government employers who do not participate in
the State Health Benefits Program currently from joining it in the future,
based on assertions that the program is losing money for the state.
Although
the bill is less drastic than what Governor Christie is demanding, public
employee unions were angered by it because they said health benefit contributions
should be negotiated between labor and management. Union officials acknowledged
that employees will have to pay more for health benefits, but emphasized that
the proper place to make concessions is the bargaining table.
The
bill, S-2718, is co-sponsored by Sen. Sweeney and Republican Sen. Jennifer
Beck.
