Now the Backlash: Public Sector Under the Microscope

We all know unemployment is high, approximately 10% nationally.

And you’ve probably heard that public-sector employment and unionization (as a percentage of all unionized workers)  and compensation have grown significantly in the last decade.

And in many cases, the public sector is — so far — recession proof.

While private-sector workers in the capital [Albany, NY] region have, in fact, suffered like everyone else during the downturn, many of those cars likely belonged to the favored not-so-few: state employees.

New York’s statewide unemployment rate in January hit 9%, the highest level in 26 years. New York City’s rate was 10.6%. In addition, untold thousands of New Yorkers have seen their hours or wages slashed, their health benefits cut, and their retirement accounts plummet.

But in New York’s capital region, the unemployment rate most recently stood at 7% — and around Albany, involuntary joblessness is mainly a private-sector phenomenon.

Unionized state workers (94% of the work force) got 3% raises last year and are scheduled for 4% raises in April. The average employee earns $63,750 plus fringe benefits, according the state budget division. Those benefits average about $28,000 per employee.

The state government — including its two public university systems — had 228,595 full-time-equivalent employees in January, down 3,640, or 1.6%, from the previous year, according to the state comptroller’s office. This decrease was achieved mainly through attrition, not layoffs.

Health, dental and vision benefits are untouched. Retirees still get heavily subsidized health insurance for life — even after only 10 years on the payroll. And, despite a precipitous drop in the state pension fund, employees and retirees will feel no pain, because the state Constitution requires taxpayers to backfill any investment losses.  (Public workers feel no pain in recessionNY Post, 2/14/10)

But maybe government workers — including teachers — need to be a bit flexible, if they’re going to avoid becoming the targets of public wrath.

A school superintendent in Rhode Island is trying to fix an abysmally bad school system.

Her plan calls for teachers at a local high school to work 25 minutes longer per day, each lunch with students once in a while, and help with tutoring. The teachers’ union has refused to accept these apparently onerous demands.

The teachers at the high school make $70,000-$78,000, as compared to a median income in the town of $22,000. This exemplifies a nationwide trend in which public sector workers make far more than their private-sector counterparts (with better benefits).

The school superintendent has responded to the union’s stubbornness by firing every teacher and administrator at the school.

A sign of things to come? (Unionized Rhode Island Teachers Refuse To Work 25 Minutes More Per Day, So Town Fires All Of Them, Business Insider, 2/15/10)

Work with me here!

Think of what you’re saying.
You can get it wrong and still you think that it’s all right.
Think of what I’m saying,
We can work it out and get it straight, or say good night.
We Can Work it Out, The Beatles, 1965

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