Thursday, March 31, 2011

Public Sector Unions - Is the End Near?

Reuters:
Ohio's legislature on Wednesday passed a Republican measure to curb the collective bargaining rights of about 350,000 state employees, and Governor John Kasich said he will sign it into law.
The bill, which also bans strikes by unions for public employees, was approved in the Ohio Senate late on Wednesday following its passage in the state House of Representatives earlier in the day.
The amended bill removed jail time as a possible penalty for workers who strike. But it is in some ways tougher on unions -- it prevents nonunion employees affected by contracts from paying fees to unions and makes it easier to decertify a union.
While Wisconsin has gained more national attention, Ohio is far more important to unions. It has the sixth largest number of public sector union members among all the 50 states, twice the number of Wisconsin. With many auto and steel and manufacturing plants, Ohio is also a union bellwether.
 Full story:  Reuters - Ohio Unions


And in Idaho:

Idaho's Republican governor on Thursday signed into law a measure that strips public school teachers of some major collective bargaining rights and does away with teacher tenure.
Butch Otter is the second governor to sign such a measure this year, after Wisconsin Governor Scott Walker signed legislation curbing that state's public workers union last Friday.
The Idaho law limits collective bargaining by the 12,000 teachers represented by the Idaho Education Association, the state teachers union, to salaries and benefits.
That means educators can no longer negotiate such issues as teacher workload and class sizes. It also does away with teacher tenure and limits contracts to one year.
This is a true movement going on.  I fully expect more states to follow.  AFSCME must be pulling out their hair. Ultimately, I believe that this will be good for public sector financials and strengthen the attractiveness of municipal bonds and BABs.

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About Me

A student of the markets that has held portfolio management, analysis and trading positions for over 15 years.