Some ‘tough love’ in order

By Gazette Editorial Board

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Gov. Terry Branstad last week spelled out his priorities for reforming Iowa's public employee bargaining law. He singled out four among recommendations submitted by his labor and management consultant, Leon Shearer.

The governor's top priorities are tough love for Iowa:

1) No more automatic step pay raises based on time in the job position.

2) Employees pay more for their health care insurance.

3) Their bosses are allowed to compare public and private salaries when figuring a public employee's pay scale.

4) No obligation to find jobs for union members whose job function has been privatized.

We think the first two deserve the most serious consideration by legislators. They affect the cost of government in a big way.

At the same time, we do not advocate a complete overhaul of Iowa's public bargaining law. Public employees provide important, necessary expertise and many services that most Iowans expect. These workers deserve a fair process in bargaining for wages and benefits, a process in place since 1974 in Iowa.

Overall, the process must be treat taxpayers fairly, too, and allow the state enough flexibility to make adjustments during difficult economic times.

And given what happened in November, some change seems even more in order. Outgoing Gov. Culver's administration barely negotiated at all with the state's largest union, AFSCME, before quickly settling on a contract that provides wage increases of 15 percent over two years. Such an increase is out of line at a time when most private-sector employees in Iowa have endured pay freezes or cuts, higher insurance costs or lost jobs over the past two years. And as legislators work toward a more sustainable, fiscally responsible state budget, the cost of labor is by far the biggest expense to manage.

As in previous contracts, step raises play a major role: 4.5 percent on the employees' anniversary, regardless of whether the union negotiated other across-the-board pay increases, which it did: a total of 6 percent over the two-year contract.

The new contract also preserves health care benefits generous by virtually any standard: the state pays the entire premium for the employee and offers optional family plans at rates well below what most private-sector employees must pay.

This model of pay and benefits is not sustainable. While it's difficult to accurately compare many public and private jobs - as conflicting research shows - other adjustments should be made. The governor's leadership is vital to thoughtful changes in the status quo.

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