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Wisconsin Union Bill Passes State Assembly

MADISON, Wis. — Wisconsin lawmakers voted Thursday to strip nearly all collective bargaining rights from the state’s public workers, ending a heated standoff over labor rights and delivering a key victory to Republicans who have targeted unions in efforts to slash government spending nationwide.

The state’s Assembly passed Gov. Scott Walker’s explosive proposal 53-42 without any Democratic support and four no votes from the GOP. Protesters in the gallery erupted into screams of “Shame! Shame! Shame!” as Republican lawmakers filed out of the chamber and into the speaker’s office.

The state’s Senate used a procedural move to bypass missing Democrats and move the measure forward Wednesday night, meaning the plan that delivers one of the strongest blows to union power in years now requires only Walker’s signature to take effect.

He says he’ll sign the measure as quickly as possible, which could be as early as Thursday.

Walker’s plan has touched off a national debate over labor rights for public employees and its implementation would be a key victory for Republicans, many of whom have targeted unions amid efforts to slash government spending. Similar bargaining restrictions are making their way through Ohio’s Legislature and several other states are debating measures to curb union rights in smaller doses.

In Wisconsin, the proposal has drawn tens of thousands of protesters to the state Capitol for weeks of demonstrations and led 14 Senate Democrats to flee to Illinois to prevent that chamber from having enough members present to pass a plan containing spending provisions.

But a special committee of lawmakers from the Senate and Assembly voted Wednesday to take all spending measures out of the legislation and the full Senate approved it minutes later, setting up Thursday’s vote in the Assembly.

The measure forbids most government workers from collectively bargaining for wage increases beyond the rate of inflation unless approved by referendum. It also requires public workers to pay more toward their pensions and double their health insurance contribution, a combination equivalent to an 8 percent pay cut for the average worker.

Senate Passes Unemployment Extension Bill

Democrats on Tuesday broke Republican-led opposition to a bill that would extend unemployment benefits to 2.5 million jobless Americans, but the vote only hardened the political divide and almost assured that any further domestic aid before November will be all but impossible.

Though the Senate reached the 60 votes needed to end a GOP filibuster and force a final vote on the legislation, prospects for the next spending bill — enabling states to avert teacher layoffs — appeared doomed.

A vote that would send the unemployment benefits legislation to the House could come as soon as Wednesday. The House is expected to pass the bill and send it to President Obama for swift approval.

Why Can America Afford Tax Cuts for the Rich, But Not Aid to the Unemployed?

The unsavory task of explaining why America apparently can’t afford to help the unemployed but can afford tax cuts for the rich fell to Rep. Mike Pence (R-Ind.) on Sunday.

“Republicans, me included, have supported numerous extensions of unemployment benefits and we’re anxious to do so again,” the Indiana Republican told interviewer Chris Wallace on “Fox News Sunday.” “The deficit this year is a trillion dollars for the second year in a row … The American people have had it with runaway federal spending, deficits and debt, and they want to see men and women in Washington, D.C. make the hard choices.”

Polls released last week showed that despite anxiety about spending, registered voters actually favor helping the unemployed even if it adds to the deficit.

Since extended benefits lapsed at the beginning of June, some 2.5 million people prematurely stopped receiving checks. Senate Majority Leader Harry Reid (D-Nev.) has called for another vote to reauthorize the benefits on Tuesday, after the replacement for the late Sen. Robert Byrd (D-W.Va.) has been sworn in. He will presumably give Democrats the 60th vote they need to break the GOP’s filibuster. People who missed checks will be paid retroactively if the bill is approved.

What is an Emergency?

Congress is about to pass an additional $32 billion emergency spending package to pay for the war In Afghanistan. It will have overwhelming bipartisan support, with legislators eager to display their fealty to the troops in an election year.

At the same time, the Congress is struggling with a $23 billion bill to forestall the layoff of nearly 300,000 teachers next year, championed by Sen. Tom Harkin and Rep. George Miller. This faces a Republican filibuster and the opposition of many blue Dog Democrats, who argue that it shouldn’t be considered emergency spending.

What kind of country are we?

In the worst economic recession in 70 years, competitive industrial nations must choose their priorities — what gets saved, what must be sacrificed. No sensible leadership would choose to make children — particularly the children of working and poor families — pay the cost of the downturn.

This surely is how great nations decline.

Like Rome and Britain before us, Washington now chooses to police the world, even as it cuts back the education of the nation’s most vulnerable children. We fight two wars on the other side of the world, spend more defending South Korea from North Korea than the South Koreans do, increase military spending already nearly as great as the rest of the world combined while saying we can’t afford vital investments at home.

P.S. Please don’t give me lectures on our debt and the need to “pay for it.”

Conservatives in both parties don’t demand we pay for the increased so-called “emergency” spending for Afghanistan. And they oppose many ways to “pay for it” that would be immensely popular with their voters, but not their donors: tax the big banks, slow speculation with a financial speculation tax, end the “carried interest” scam that has billionaire private equity managers paying a lower tax rate than their secretaries.

Looting Main Street

If you want to know what life in the Third World is like, just ask Lisa Pack, an administrative assistant who works in the roads and transportation department in Jefferson County, Alabama. Pack got rudely introduced to life in post-crisis America last August, when word came down that she and 1,000 of her fellow public employees would have to take a little unpaid vacation for a while.

The county, it turned out, was more than $5 billion in debt — meaning that courthouses, jails and sheriff’s precincts had to be closed so that Wall Street banks could be paid.

As public services in and around Birmingham were stripped to the bone, Pack struggled to support her family on a weekly unemployment check of $260. Nearly a fourth of that went to pay for her health insurance, which the county no longer covered.

She also fielded calls from laid-off co-workers who had it even tougher. “I’d be on the phone sometimes until two in the morning,” she says. “I had to talk more than one person out of suicide. For some of the men supporting families, it was so hard — foreclosure, bankruptcy. I’d go to bed at night, and I’d be in tears.”

Homes stood empty, businesses were boarded up, and parts of already-blighted Birmingham began to take on the feel of a ghost town. There were also a few bills that were unique to the area — like the $64 sewer bill that Pack and her family paid each month. “Yeah, it went up about 400 percent just over the past few years,” she says.

The sewer bill, in fact, is what cost Pack and her co-workers their jobs. In 1996, the average monthly sewer bill for a family of four in Birmingham was only $14.71 — but that was before the county decided to build an elaborate new sewer system with the help of out-of-state financial wizards with names like Bear Stearns, Lehman Brothers, Goldman Sachs and JP Morgan Chase.

The result was a monstrous pile of borrowed money that the county used to build, in essence, the world’s grandest toilet — “the Taj Mahal of sewer-treatment plants” is how one county worker put it. What happened here in Jefferson County would turn out to be the perfect metaphor for the peculiar alchemy of modern oligarchical capitalism: A mob of corrupt local officials and morally absent financiers got together to build a giant device that converted human shit into billions of dollars of profit for Wall Street — and misery for people like Lisa Pack.

Blue Collar Workers Hanging By a Thread

They arrive for work at 7:25 a.m. and many of their cars are rusting buckets of crud. Except for the boss’s. He drives a Volvo.

Walk in the door at Schaefer Screw Products and there is the enemy — the clock. The oil vapors and solvents are overwhelming. The yellow light is dispiriting. The workers don’t want to be here. The liquor bottles in the weedy lot out back tell part of the story. The graffiti in the bathroom — profanely denouncing “hard workers” — tells the rest.

The workers punch the clock at precisely 7:30 a.m., not a minute later since they would be docked 14 minutes and nobody in America works 14 minutes for free. A quiet resignation settles over them as the roar of the screw grinding machines rev up. Want it or not, they need to be here. After this place, there is no place. Not in today’s America.

This machine shop may be the next wobbling domino in the collapse of the American manufacturing sector and the struggles of its blue-collar workers. There are at least seven shops nearby that are available for lease.

NAFTA, the North American Free Trade Agreement, created a free trade block beginning in 1994. But that is only part of the story. The World Trade Organization (WTO) began quietly in 1995, encouraging a sort of worldwide NAFTA that all but eliminated international trade barriers. China was admitted in November 2001 and since then Michigan has lost nearly 400,000 manufacturing jobs or nearly 50 percent of its industrial work force.

For workers here, their boss is the closest they will come to THE MAN. And by THE MAN they mean the bozos in Washington, D.C., who voted for the trade agreements and the bank deregulations that let the jobs slip away and money disappear into thin air.

When they say THE MAN, they mean the wolves on Wall Street who amplified the housing bubble and nearly took the world economy down. Instead of paying the price and going out of business and collecting their own unemployment checks, the Wall Street wizards got a multibillion-dollar bailout and bonuses.

Goldman Sachs, which was a heartbeat away from failure in 2008 and received $40 billion in federal aid, paid out $16 billion in bonuses and compensation in 2009 — an average of nearly $500,000 per employee. The bank paid just $14 million in taxes.

At the same time, Deutsche Bank forecasts that a quarter of homeowners are underwater and RealtyTrac.com reported 315,000 foreclosures in January, the most for that month on record. Many economists are predicting a bleak year in the housing market if wages and unemployment don’t improve.

“You feel the whole thing’s a swindle,” says Cindi Borbi, the 59-year-old account manager behind a desk in a cloud of cigarette smoke. Her husband took his life last year after being let go from his auto supply firm. He left his wife a broken heart, a mound of debt and a house she can’t pay for. “I’m looking for a basement if you’ve got one.”