Wisconsin Anti-Union Law Goes Down In Flames: Daily Austerity Watch

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By Douglas A. McIntyre Updated Published
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Wisconsin Gov. Scott Walker (R) became a hero to fiscal conservatives  earlier this year for pushing a law through the state Legislature that stripped most of the collective bargaining rights away from public sector workers and made them pay more for health care and other benefits.   Now, that controversial policy, which critics say turned back five decades of gains by organized labor in the state, may never see the light of day.

Republicans in the state Legislature violated the state’s open meetings law when they rushed through the law amidst huge angry protests that griped Madison,  Wisconsin’s capital, according to Dane County Judge Maryann Sumi, who today voided the law.    Reuters notes that she wrote in her opinion that the evidence was “clear and convincing”  that the law was broken. Conspiracy theorists should note that Sumi was appointed to the bench by former (R) Gov. Tommy Thompson.  A Walker spokesperson could not be immediately be reached for comment.

Sumi’s ruling comes two days after New Jersey Gov. Chris Christie (R), another proponent of fiscal austerity, lost a high-profile battle with the New Jersey Supreme Court and was ordered to restore $500 million in funding for poor school districts that had been previously cut. Christie, who had threatened to defy the court if it ruled against him, told the media that he was furious that unelected judges were making law from the bench.  Despite his anger, Christie says he will comply with the ruling.  Critics of austerity have been emboldened by their victories in Wisconsin and New Jersey.

“The motives behind the collective bargaining bill were clearly political,” says Mary Bell, the head of the Wisconsin Education Association,  in a press release. “Governor Scott Walker has already admitted the bill was never intended to be about ‘budget repair’ but instead a way to bust public employee unions.  In the wake of this ruling, state lawmakers should back down and not take another run at this divisive legislation. It is not in the best interest of students, schools or Wisconsin’s future to take the voices of educators out of our classrooms. We’ve seen how this issue has polarized our state.”

Fat chance of that happening.The governor has too much to lose and everything to gain by continuing his fight.  Republicans control both houses of the Wisconsin State Legislature.   There are 60 Republicans in the State Assembly along with 38 Democrats and 1 Independent.   In the State Senate, the margins are much closer with Republicans holding 19 seats to the Democrats’ 14.  New Jersey’s Christie, however, must battle against the Democrat-controlled State Legislature to enact his agenda.

Walker likely will appeal Sumi’s decision to the Wisconsin Supreme Court.  The issue has already cost him politically.  The Journal Sentinel newspaper says Walker’s statewide approval rating fell to 43% in a poll released yesterday, which also showed that 54% of respondents disapproved of his hob performance.  He remains a hero to many.  Republicans, such as House Speaker Jeff Fitzgerald expect Walker to be vindicated.

“I remain confident that the Wisconsin State Supreme Court will rule accordingly and Act 10 will become law,” he said in a statement, referring to the collective bargaining law by its formal name.

Walker and Christie have spurred other states into action.  Lawmakers in 43 states introduced more than 800 bills to alter collective bargaining for public employees.    Unions are fighting these proposals, arguing that they threaten the ability of many Americans to make a decent wage.   Laws passed in Ohio and Indiana despite fierce opposition.  The argument does resonate with some. A USA Today/ Gallup poll conducted early this year found that most Americans oppose stripping collective bargaining rights.

Indeed, it seems unfair to make government workers shoulder the burdens of austerity. Then again, the economic downturn is unfair to everyone.

–Jonathan Berr

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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