Madigan: Too late for union summit on pensions

Illinois House Speaker Michael Madigan Wednesday turned thumbs down on a planned summit?sponsored by public employee unions to discuss a pension compromise.

In a strongly worded letter to a coalition of public employee unions, Madigan said state officials have received ?no cooperation? from the unions in attempting to resolve the state?s massive pension funding problems.

?In fact, these unions have been strongly opposed to any attempt to solve the problem,? Madigan said in his letter. ?It is time for labor to come to the table with an honest proposal that recognizes the state?s serious fiscal condition and puts government employees on par with those in the private sector relative to a benefits package.?

Madigan sent the letter to Michael Carrigan, president of the Illinois AFL-CIO. Carrigan also heads the We Are One Illinois coalition of public employee unions.

?We Are One Illinois regrets that Speaker Madigan has indicated he will not participate in the pension summit proposed by our union coalition,? Carrigan responded in a statement. ?Our summit is a demonstration of good faith and commitment to seeking to solve the state?s pension funding problems in a way that is fair and constitutional.?

?Little willingness? from unions

In inviting Gov. Pat Quinn and the four legislative leaders to the summit last week, We Are One said pension reform plans advanced so far have failed largely because they did not address the concerns of public employees and retirees. It also said almost all of those plans would place the entire burden of pension reform on employees and retirees.

Madigan took issue with that.

?In my view, the positions of organized labor were taken into account during the 2012 legislative session,? Madigan wrote. ?I recall no fewer than eight high-level meetings that took place with labor, legislative leaders and the governor. At that time, I felt there was little willingness from representatives of labor to draft a comprehensive, common-sense solution.?

Madigan also said lawmakers have cut state spending in a number of areas? and that ?the residents of Illinois have been asked to shoulder a higher tax burden in recent years.?

?To date, we have received no cooperation from the labor unions representing state employees on addressing these challenges,? Madigan wrote.

Union plan

Carrigan countered that the unions have offered a plan that calls for workers to pay more toward their pensions and ending various business tax breaks along with new taxes that would raise $2.3 billion. The unions continue to resist any changes in pension benefits, a feature of most pension plans floated so far.

?We believe that pension legislation supported by all parties is the only way to meet constitutional muster and avert costly and time-consuming court battles,? Carrigan wrote.

Carrigan also said that while public employees in Illinois are ?fairly paid,? studies have shown that public employees in general earn less than workers in the private sector who perform similar jobs.

Madigan called a proposal sponsored by Rep. Elaine Nekritz, D-Northbrook, something that would ?put Illinois on a path to preserving the state?s pension systems.? The plan calls for higher employee contributions and a limited cost-of-living adjustment to retirement benefits, along with guaranteed state pension payments. Madigan also reiterated his belief that downstate teacher pension costs should be shifted to local school districts.

?I look forward to your thoughts on both topics,? Madigan wrote to Carrigan. ?I look forward to your announcement of support of reforms that helps the state address its budget pressures and preserves the pension systems for the employees counting on them.?

Doug Finke can be reached at 788-1527.

Source: http://www.pjstar.com/topstories/x930793688/Madigan-Too-late-for-union-summit-on-pensions

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