Public Sector Workers Are the First to Protest Even Though Their Compensation Greatly Exceeds That of the Private Sector

New Jersey Gov. Chris Christie signed into law broad changes to pensions and benefits offered to public workers. The changes, which will largely affect future workers and won’t have much of an immediate impact on the state’s $46 billion pension hole, faced stiff opposition from labor unions every step of the way since being announced in January. The Assembly passed that bill after lawmakers removed a provision to let full-time workers with fewer than 10 years on the job switch to a 401k-style plan; some lawmakers worried that could hurt the stability of the pension system. The state’s pension gap — calculated at $46 billion as of June — is largely the result of stock market losses and the state failing to make payments into the investment fund. But the number of workers in the system has soared by 20 percent since 1999, while retirees have increased 43 percent, placing a greater burden on state and local governments. The new laws ban future part-time workers from the pension system, instead requiring part-timers who make more than $5,000 to join a 401(k)-style plan. It also makes pensions for future hires less generous, rolling back a 9 percent increase granted in 2001, requires pension payments to be based on one job, and limits payments of accrued sick leave for future workers to $15,000. The bills do not affect those already retired. The only bill with a tallied savings is one that would require public workers to pay at least 1.5 percent of their salary toward their health care. That is expected to save local governments at least $314 million a year. - N.J. Gov. Chris Christie signs pension, benefits changes for state employees, NJ.com, March 22, 2010

N.J. Public Workers to Stage Large Protest Over Pension and Health Insurance Reform

June 23, 2011

NJ.com - New Jersey’s battle over benefits could hit a fever pitch today.

Thousands of public workers are expected to stage what leaders vow will be their biggest Statehouse protest yet over a controversial bill to force them to pay more for health insurance and pensions. The bill is up for final passage in the Assembly, which would send it to Gov. Chris Christie, who is expected to sign it swiftly.

Leading up to today's battle, a state workers union chapter Wednesday filed a federal suit against the state saying its contract was broken because pension payments were skipped. And Christie pitched the plan at a town hall where he was booed by some teachers.

At a town hall in Fair Lawn, Christie said the measure, a focal point of his agenda, is needed to restore the state’s fiscal balance and ensure the solvency of the pension fund.

"We have support with both political parties to do this," Christie said. "It isn't like other states."

Fair Lawn schools finished for the summer Tuesday and a group of teachers packed the meeting. The crowd was less friendly than most of his meetings: half the attendees booed when he went through his proposals, and the other half, supporters of the governor, clapped louder in an attempt to drown them out.

"As always in our democracy, there will be people who disagree," Christie said, acknowledging the dissenters.

Lauren Gimon, a math teacher at Fair Lawn High School, joined a group of about 50 teachers who stood on street corners out the meeting holding signs and waving at passing cars. Gimon said she’s hopeful the efforts by public employees to rally in Trenton and across the state will have some influence.

"It made a difference in Wisconsin," Gimon said.

With passage in the Assembly seeming almost inevitable, one union began what could be the first of a several court battles. Local 1033 of the Communication Workers of America filed a lawsuit in federal court claiming the state failed to meet his contractual obligations when it didn’t contribute to the pension system.

Just a day before the Assembly is set to vote on a pension reform bill, Gov. Chris Christie spoke of the reform and the compromise between Democrats and Republicans to reach the edict. The governor's 20th town hall meeting was held on Wednesday in Fair Lawn.

Rae Roeder, president of the local 1033, the only CWA chapter that has all its members in the same pension fund, said the members of the union voted to move forward with the lawsuit.

The union is also alleging the legislation, which would eliminate cost of living adjustments for retirees, violates federal contract law. The suit asks that full payments be made into the pension fund.

The unions yesterday continued their their war of words with Senate President Stephen Sweeney (D-Gloucester). Hetty Rosenstein, state director for the CWA, contested comments Sweeney made Sweeney earlier this week that negotiations over the bill fell apart when the union demanded that the content of the health plans be included in the legislation.

Sweeney has said the unions were trying to subvert collective bargaining, a charge unions have made against he and Christie.

Rosenstein said the proposal sent to them by Sweeney included no details and wasn’t in writing, putting them in a tough spot to sign on.

"This is not anything that any union could accept or that we could do in any fairness to our members," Rosenstein said. "Somehow we’re suppose to say ‘yes’ to that."

Senate spokesman Derek Roseman said Sweeney stands by his comments.

"It’s obvious that with (the) looming Assembly vote, the public union leaders are attempting to rewrite history to save face with the members they have misled for so long," he said.