Tuesday, February 22, 2011

The Changing Complexion of America

By A. G. Sulzberger and Monica Davey

Janesville, Wis.—February 21, 2011--As Union Bonds Begin to Fray, Rich Hahan worked at the General Motors plant here until it closed about two years ago. He moved to Detroit to take another G.M. job while his wife and children stayed here, but then the automaker cut more jobs.

So Hahan, 50, found himself back in Janesville, collecting unemployment for a time, and watching as the city’s industrial base seemed to crumble away.

Pat Welhitz says ending collective bargaining* is “pretty drastic even for a staunch Republican.”

Will the governor's war on public employees' collective bargaining rights sweep the nation?

MaryKay Horter, an occupational therapist, supports the governor’s proposal: “I don’t get to bargain in my job, either.”

Among the top five employers here are the county, the schools and the city. And that was enough to make Hahan, a union man from a union town, a supporter of Gov. Scott Walker’s sweeping proposal to cut the benefits and collective-bargaining rights of public workers in Wisconsin, a plan that has set off a firestorm of debate and protests at the state Capitol.

He says he still believes in unions, but thinks those in the public sector lead to wasteful spending because of what he sees as lavish benefits and endless negotiations.

Across Wisconsin, residents like Hahan have fumed in recent years as tens of thousands of manufacturing jobs have vanished, and as some of the state’s best-known corporations have pressured workers to accept benefit cuts.

Wisconsin’s financial problems are not as dire as those of many other states. But a simmering resentment over those lost jobs and lost benefits in private industry — combined with the state’s history of highly polarized politics — may explain why Wisconsin, once a pioneer in supporting organized labor, has set off a debate that is spreading to other states over public workers, unions and budget woes.

There are deeply divided opinions and shifting allegiances over whether unions are helping or hurting people who have been caught in the recent economic squeeze.

And workers themselves, being pitted against one another, are finding it hard to feel sympathy or offer solidarity, with their own jobs lost and their benefits and pensions cut back or cut off.

“Everyone else needs to pinch pennies and give more money to health insurance companies and pay for their own retirement,” said Cindy Kuehn as she left Jim and Judy’s Food Market in Palmyra. “It’s about time the buck stops.”

In Madison, the capital, which has become the focus of protests, many state workers and students at the University of Wisconsin predictably oppose the proposed cuts.

But away from Madison, many people said that public workers needed to share in the sacrifice that their own families have been forced to make.

The effort to weaken bargaining rights for public-sector unions has been particularly divisive, with some people questioning the need to tackle such a fundamental issue to solve the state’s budget problems.

More often the conversation has turned to the proposals to increase public workers’ contributions to their pensions and health care, and on these issues people said they were less sympathetic, and often grew flushed and emotional telling stories of their own pay cuts and financial worries.

Here in Janesville, a city of about 60,000 an hour southeast of Madison, Crystal Watkins, a preschool teacher at a Lutheran church, said she was paid less than public school teachers and got fewer benefits. “I don’t have any of that,” she said. “But I’m there every day because I love the kids.”

In Palmyra, a small village bounded by farmland and forests, MaryKay Horter remembered how her husband’s Chevy dealership had teetered on the brink of closing after General Motors declared bankruptcy, for which she blamed unions.

Ms. Horter said she was forced to work more hours as an occupational therapist, but had not seen a raise or any retirement contributions from her employer for the last two years. All told, her family’s income has dropped by about a third.

“I don’t get to bargain in my job, either,” she said.

And in nearby Whitewater, a scenic working-class city of 15,000 that is home to a public university, Dave Bergman, the owner of a bar, was tending it himself on Sunday. He has been forced to cut staff and work seven days a week.

“There are a lot of people out of work right now that would take a job without a union,” Mr. Bergman said.
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*A method of negotiation in which employees use authorized untion representatives to assist them.

By some measures, Wisconsin, a state of 5.6 million people, has not suffered as much as other Midwestern states in the recession, according to Abdur Chowdhury, an economist at Marquette University.