19 February 2011

Protests in Wisconsin Shows Peoples' Anger to Governor Walker's Budget Measures

In the past week since the fall of the Mubarak Regime in Egypt protests have been springing up against governments in the Middle East and in Wisconsin. The uprisings in Middle East come from anger of autocratic rule, but the protests in Wisconsin about state governments taking away unions to produce collective bargaining agreements.

Collective bargaining defined by the Legal Information Institute from Cornell Law School states, " Collective bargaining consists of negotiations between an employer and a group of employees so as to determine the conditions of employment. The result of collective bargaining procedures is a collective agreement. Employees are often represented in bargaining by a union or other labor organization." The benefits of this are that individual workers join together to gain a better deal, and management is able to work more efficiency by listening to one voice instead of many. Overall, a win win situation for both sides.

In times of economic prosperity, collective bargaining groups do not reap the financial compensation that is awarded to the private sector counterparts, but receive a better benefits package instead. The problem that occurs in times of hardship,the recession, groups that collectively bargain seem to have a better situation than private individuals due to the agreements made previously. A real world  example would be if someone would buy a hundred gallons of gas at 2 dollars a gallon, and could reap the 2 dollar price even if the price rose to 3 dollars a gallon. People who did not lock in the price would be upset  of the benefits received by the person who locked in the price. Now if the price went down to a dollar the person paying two dollars a gallon is still stuck with the price unless he renegotiates, and would only get it dropped to 1.50 instead of the dollar. The person with the gas contact would not have to worry about the market fluctuations, but might might not get the best deal all of the time.   In a time of economic distress and high unemployment people see Unions as a target.

Now to the issues in Wisconsin and their budget fight. The problem lies with a 137 million dollar shortfall that needs to be paid by July 1st. Governor Scott Walker's plan to cover this shortfall is to not allow collective bargaining by public unions except for pay, and that could not rise higher than the Consumer Price Index. If this arrangement would be passed by the Wisconsin State Legislature, public unions would not be able to collectively bargain for their benefit packages. Walker is quoted in an ABC News article by saying,"If we don't do this, there will be layoffs. By July 1, when the next budget starts, we'll have to have layoffs of 5,500 state workers plus a similar number of county and city workers."

The issue that arose from this is how did this 137 million dollar deficit form? Some sources argue, such as Ezra Klein from the Washington Post, that a majority of this deficit came from actions done by Walker in a Special Session of the Legislature in December.  The Wisconsin Fiscal Bureau stated that earlier estimates put the state budget at a 120 million dollars in black, until the December session with the passage of  health savings account, tax cuts for new and relocated businesses, and tax exclusion for new employees. This helped cause the 137 million dollar shortfall. According to











Overall, the Unions are doing what they are suppose to do, protecting their workers rights. No one should complain that the protests are unnecessary. Protests are part of democracy. When the Tea Party shows up with their heroes to support Governor Walker lets hope that the peaceful protests will continue, and hope that they will not act in the way of Mubarak protesters in Egypt and cause a violent confrontation. For democracy to work the best it needs to be done in a peaceful and respectful manner, and we hope these issues are resolved peacefully and that both sides are content with the outcome.

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