Illinois state workers, are the highest paid in the nation.
Yet, despite the fact that Illinois is for all practical purposes insolvent, the AFSCME union demands four-year raises ranging from 11.5 to 29 percent, overtime after 37.5 hours of work per week, five weeks of vacation and enhanced health care coverage.
AFSCME workers already get platinum healthcare benefits that would make nearly everyone in the country green with envy.
This is a guest post from Ted Dabrowski at the Illinois Policy Institute, of which I am a senior fellow.
For years, Illinois taxpayers haven’t been represented at the bargaining table between Illinois’ largest government union and the state. Illinois’ former governors cared more about appeasing the American Federation of State, County and Municipal Employees than protecting the taxpayers the governors were supposed to represent. That’s how AFSCME workers have become some the highest-compensated state workers in the nation.
Now the union is working overtime to remove Gov. Bruce Rauner – who actually represents taxpayers’ interests – from labor contract negotiations. The union supports House Bill 580, which would strip the governor of his ability to negotiate. AFSCME wants the current contract dealings turned over to unelected arbitrators who are likelier to decide in the union’s favor.
AFSCME wants to remove the governor from contract negotiations because union officials know Rauner will not agree to outrageous demands. Union leaders are demanding $3 billion in additional salary and benefits for union members in a new contract. They’re seeking four-year raises ranging from 11.5 to 29 percent, overtime after 37.5 hours of work per week, five weeks of vacation and enhanced health care coverage. Those additional demands would come on top of the costly benefits that AFSCME workers already receive.
Here are four facts about state-worker compensation the union doesn’t want taxpayers to know:
1. Illinois state workers are the highest-paid state workers in the country
Illinois state workers are the highest-paid state workers in the country when adjusted for cost of living. Illinois pays its state workers more than $59,000 a year, far more than its neighbors and nearly $10,000 more than the national average.
Moreover, state AFSCME workers have received salary increases not matched in Illinois’ private sector.
Median AFSCME worker salaries increased more than 40 percent from 2005 to 2014, reaching more than $62,800. During that same period, median private-sector earnings in Illinois remained virtually flat.
2. AFSCME workers receive Cadillac health care benefits
In addition to paying state workers the highest salaries in the nation, Illinois taxpayers also subsidize a majority of AFSCME workers’ Cadillac health care benefits.
The average AFSCME worker receives the ObamaCare equivalent of platinum-level benefits, but only pays the equivalent of bronze-level insurance premiums. That forces a vast share of AFSCME workers’ health care costs onto state taxpayers.
AFSCME workers pay for just 23 percent of their health care costs, or $4,452 a year. State taxpayers pay the remaining 77 percent, or an average of $14,880 per worker.
3. Most state workers receive free retiree health insurance
The state also subsidizes 100 percent of the health insurance costs for state retirees who spent 20 or more years working for the state. Such a benefit is almost unheard of in the private sector.
This benefit costs taxpayers $200,000 to $500,000 per state retiree. An ordinary worker in the private sector thus would need to have $200,000 to $500,000 in the bank before retirement to purchase the insurance most retired state workers get for free.
4. Career state retirees on average receive $1.6 million in pension benefits
Thanks to unrealistic pension rules, career state workers – meaning those who work 30 or more years – will average $1.6 million in benefits over the course of their retirements.
That’s on top of Social Security benefits, which nearly all state workers receive. In addition, over half of state workers end up retiring in their 50s.
It’s not fair that Illinois residents, struggling with stagnant incomes in one of the nation’s weakest economies, continue to subsidize AFSCME benefits to such an extent.
Many other unions that contract with the state have recognized that taxpayers can’t afford higher taxes to fund even greater pay and benefits for state workers. Officials from more than 17 unions, including the Teamsters, understood the depth of Illinois’ fiscal crisis and agreed to affordable contracts with the state.
AFSCME, which represents a mere 0.5 percent of Illinois’ total labor force (35,000 state workers out of a total 6.5 million workers), is putting undue pressure on the state and its finances.
The General Assembly needs to allow the governor’s veto of HB 580 to stand.
Instead of increasing benefits as AFSCME has demanded, the state should work to bring its employees’ total compensation more in line with what the private sector can afford.
Ted Dabrowski
Vice President of Policy
Question of Fairness
The AFSCME seeks “fairness”.
I wholeheartedly agree. Here is my eight-point proposal.
- Cut AFSCME salaries an average of 40%
- Make AFSCME employees contribute 50% to health care plans.
- Drop AFSCME retiree health benefits entirely. Put them on Medicare.
- Put caps on pension pay.
- Kill defined benefit pension plans entirely for new hires.
- Pass right-to-work legislation.
- Allow municipalities to go bankrupt.
- Kill all prevailing wage laws,
Mike “Mish” Shedlock
Another riches to rags story in the making.
Cut pension benefits by the amount social security would pay. They shouldn’t get both.
? Don’t believe everything u read…we pay for our own retirement out of our own paycheck…60,000 a year is really about 36,000…3-11 shift. ..Tues wed off for years….and 5 weeks vacation is after 22 years of work…it’s 2 weeks after 10 1/2 years…them goes to 3…this entire article is bull
nonsense
You do not pay your way – Taxpayers do.
Taxpayers pay your salary of which union employees generally contribute a pittance
In general benefits way outweigh anything you put in.
If you have numbers to the contrary, please show them.
There may be some cases where I am wrong – I am talking generalities.
Mish
Absolutely you do not pay your way
Illinois – another Venezuela in the making……..
Typically, this kind of pay an benefits go to folks who invested a lot of money and time into going to college. Why go to college and endure all the hardship when you can just join a union?
That was America in the 1960’s. A middle class country with men who produced real products. Now we have college educated women’s studies majors with $100,000 of debt, $25,000 per year jobs and no unions.
But….but…but….they gave us trans-gendered toilets like at Target stores……
That wouldn’t explain why they receive salaries and benefits that no other State, or private, workers receive….But in fact, college has little to do with most State jobs, I can say as a former State employee in IL…
Isn’t that part of the definition of what “monopolies” do?
Even if it’s government, it’s still in effect a monopoly raising prices through taxes……
Why is anyone of sound mind (other than a govt worker) still living in Illinois?
My house is going on the market in a matter of days. My family has lived in Illinois for 5 generations. It pains me to leave…but it’s time.
The natural results of a Marxists closed shop state where you must join the union as a condition of employment and have union dues taken out of your pay before you get your paycheck.
Where 99% of all union financial support goes to democrats. Where Unions are by far the largest all time campaign donors.
A place where violence, destruction of property and threats/intimidation by unions are ignored by the law.
But it is for the cchildren.
It’s political patronage and it’s here to stay. The 47% lamented by Romney in the 2012 campaign will see to that.
It;s not going to last in Illinois, with wealthier people (like me) moving to other states, and welfare seekers multiplying, while the coffers run dry.
Political patronage is dead and dying.
The Clintons, Obamas, and Bushes have killed that “golden sacks” goose.
Can’t wait for that “trickle down” to the lower-level Pols at every lower level!
The “troubles” of Ill. and its unions reminds me of a fave tune from the 60’s
I love CCR
I see a bad moon rising.
I see trouble on the way.
I see earthquakes and lightnin’.
I see bad times today.
Don’t go around tonight,
Well it’s bound to take your life,
There’s a bad moon on the rise.
I hear hurricanes a blowing.
I know the end is coming soon.
I fear rivers over flowing.
I hear the voice of rage and ruin.
Well don’t go around tonight,
Well it’s bound to take your life,
There’s a bad moon on the rise.
Hope you got your things together.
Hope you are quite prepared to die.
Looks like we’re in for nasty weather.
One eye is taken for an eye.
Well don’t go around tonight,
Well it’s bound to take your life,
There’s a bad moon on the rise.
Don’t come around tonight,
Well it’s bound to take your life,
There’s a bad moon on the rise.
Songwriters: JOHN C. FOGERTY
Bad Moon Rising lyrics © CONCORD MUSIC GROUP, INC
Two words come to mind. Greedy pigs.
No greedier than the politicians and bankers running the country. Lots of businessmen and policemen that are equally greedy. This greed thing goes a lot further than these civil “servants” — maybe they have imbibed some lessons from society at large.
Everyone is greedy. That is a given. What is wrong with unionized state employees is that you end up with two state employees negotiating over what to pay themselves. Meanwhile the taxpayers are unrepresented. In a private business, the unions negotiate with the owners, a very different situation.
“Greedy businessmen” don’t take your money at the point of a gun.
Most misleading article about state workers I’ve ever read….I’ve worked for state 18 years…scariest thing to me is how easily people believe propaganda. ..not much has changed since 1940s I guess
Mish – have you left IL? Why or why not?
Something that I keep wondering too. I would think that your line of work can be done from anywhere in the country. Anywhere in the world for that matter.
Mish, why are you still in il?
I can work from anywhere. My wife Liz who is a lot younger has a great job with amazing benefits.
Mish
Years ago, I represented management in labor negotiations with AFSCME and Teamster PBA (police) contracts. Usually the city manager or county administrator wanted those employees to like him and did not want problems with unions so they went along with what unions wanted. The big city bosses gave the shop away to protect their own jobs. This is why you have Union problems and city financial insolvency. Yet those retired cops, firefighters and general employees are living the high life, and tax payers never even knew. It was all a dog and pony show for the public…. Both the cops and city knew it. Sad
A workforce of 70,000 and 25,000 are on Worker’s Comp.
Can you see any problems yet?
Government employees should have never been allowed to unionize. The public should be allowed to vote to decide if this contract should be approved because the legislature is in the pocket of the Union. I thought IL was broke where are they getting the money! As a government worker my pension plus social security does not provide a extravagant retirement lifestyle. The two were always paired together to form a retirement package. Shame on the government for not properly funding and administering their plans. A defined plan can work, but it requires a hands on administration by both the employer and employee. Plans that payout 100% preretirement salary, require minimal vesting or are too blue sky in investment returns are doomed to failure. Yes health care is a rip off no doubt the union is getting a kick back. This plan must have no deductible and pays for everything. Employees need to pay the difference between a bronze and gold plan. Stop kicking the can down the road!
Exactly. There is no reason why public employee unions should ever be allowed.
Back in the day even FDR would not allow public employee unions. He recognized the conflict of interest. It was Kennedy who brought on the public worker unions fiasco.
this is the next big battle in america . private sector vs public sector, I was private hey public workers pay your own way like everybody else
Even the great socialist FDR was insistent that allowing public employees to unionize was a huge mistake and the inherent conflict of interest and corruption would devolve into financial ruin – obviously he was right!!
It isn’t just the rank and file Union members that are greedy, the union leadership is corrupt and more creepy. Who do think was watching this and wanted a piece of the pie? Rank and file learned it well. Management is even worse. They see it
Mish! After you and Ted move to North Dakota, there will be no one left in the IL except Fed State & Local dot gov people paying each others pensions!!!
1) https://mises.org/blog/public-servants-who-serving-whom
Mises Wire
Home | Blog | Public Servants: Who is Serving Whom?
Public Servants: Who is Serving Whom?
May 09, 2016
A study by the government’s own Congressional Budget Office (CBO) claims public sector employees earn more money and benefits than private sector employees, with the exception of those with a doctoral degree:
For the sake of argument, let’s just say we need government employees for maintenance of fisheries, mail delivery, and invading Middle Eastern countries. Fine. Can we at least dispense with the misnomer public servant? A servant who makes more money than those “served” (by threat of force), provides subpar service, takes away jobs, and is immune to firing cannot be accurately titled servant.
2) Hasn’t anyone in IL heard of the Commonwealth of Puerto Rico, or Greece? Do they not understand the concepts of “something from nothing”, “blood from a turnip”, “unfunded pensions”? I don’t know which state will be the first to file bankruptcy, but it will likely be IL.
“Trees don’t grow to the sky.” – Louis Rukeyser
This is totally unsustainable. How does this all end?
Default, bankruptcy, financial ruin!! Unfortunately it won’t end up with criminal prosecution of the complicit politicians engaged in collusion and corrupt financial maleficence
@ TJ,,,
iIt all ends in a 50-75% or higher devaluation. There is no other publicly acceptable way out. Or maybe I should say “Means to an End.” The end, of course, will look like what’s happening in Venezuela right now.
But, naturally, the mantra on the part of the ruling elite will be “No one could have seen it coming,” and the public will believe it, until the tanks roll, as the means of production is nationalized.
Default is off the table, as it would pretty much end the ruler’s scam in an instant. No one wants to see that. It is in no ones best interest.
Besides, the only thing politicians know is, take credit for positive developments, and push problems off onto the next watch. As each watch comes with an ever greater pile of handed down problems, the day will come when only an outright moron would even consider running for POTUS.
Matter of fact, looking at the candidates we are presented with in this upcoming election, we may have already reached that point!
It depends. If the unionized state employees are backed by the other unions in the state, a possibility is that they raise property taxes…and raise them…and raise them…till they drive people out of the state. I know that i wouldn’t consider living in Illinois at this time. Last one out, please turn off the lights.
Wow, Illinois taxpayers are generous, and obviously quite wealthy. Good thing debt doesn’t matter in this brave new world.
I am leaving Florida and move to Illinois
My neighbor across the street moved there 3 years ago to be near his daughter and grand kids. I’m waiting for the day when they can’t afford it anymore.
Proof that it’s good to be a member of the Communist (er, Democrat) party!!!
So the gov had to veto HB580, meaning a majority of congresscritters in Ill-in-noise are in the pocket of AFSCME. What I cannot figure out is how there are so many idiot voters in IL that those jerks get elected, rather than being tarred and feathered and run out of town on a rail.
Used to be “Land of Lincoln”. Should now be “Land of Useful Idiots”.
I can and will explain that in a following post.
Thanks for the question
Mish
We in Illinois are a tale of two very different ideologies fighting for control of the state. Cook County (Chicago & a few suburbs) votes solidly democrat – 6 of 10 largest employers are public sector (per Crains). The ENTIRE rest of the state is solidly republican. Look at the individual voting district results from the last elections.
I believe many in Illinois, including myself, would gladly vote to separate Cook county from the rest of Illinois. Governance & finances would be a stark contrast between the two.
The wall comes next – to keep taxpayers in.
Same as it ever was. Throughout history cities are eventually abandoned by their inhabitants. The hosts flee, the parasites die and to paraphrase Curly “Viola – Ozymandias”
As a foreigner the most amazing part of this are the health care benefits. After all the costs of the health care does not benefit these employees so much as the people that are providing the health care. The USA is bankrupting itself with this medical racket that provides only dubious results if we compare Americans’ health with those in other nations. Instead of harping on the unions so much (although the exaggerated pension benefits + social security seems cockamanie) something should be done about the rigged medical system. Those are not costs but racketeering and extortion.
Mish, I don’t understand why you remain in Illinois, or the US for that matter. The trajectory is clear. Honestly, do you expect to see that change?
I just explained why to another person. When the time comes we are out of here. In fact we have property in Montana.
Mish
And just where do these unions in Illinois think the money is going to come from to pay them even their current salaries let alone any increases?
In general, I agree with your point in total. The one area I’m not sure your factually correct is on the Social Security. Maybe there are different situations, but state workers in the university system at least pay only into a pension or 403b and not in the Social Security and thus will not receive any payment from social security with regard to their earnings while a university employer. If they worked in the private sector before or after, then yes (at a lower scale of course), but the accusation should at least be nuanced a tad. Now most employees at the universities are not AFSCME and I know that at least in my case, the most I got in a raise in the last 12 years was 3% (twice I think) and five years we have got no raises at all. So there is some differences here in the state of Illinois. Tenure privilege is what’s destroying higher ed in this state along with admin perks and salaries at the highest levels.
This is a ton of crap. You all are prejudice hateful people. Put the blame where the blame us due. The state executives and politicians are responsible. Just because a person works for the state does not mean they are rich. Believe me. Oh it’s ok to have all the entitlement programs but people can’t earn a half way decent wage….if you want to call it that. I bet half of you complaining are on the receiving end. Don’t you know it’s a trickle down factor that if the state gets some dumb ass off the street who do not know how to do the job or get a robot as some of you say then your entitlement programs will be affected and you may have to work a little harder to survive. Put the blame where the blame is due. Not on the backs of the working class!!! If it wasn’t for the corruption in Illinois the state would not be broke. The rich asdwholes just want to spend freely at everyone’s expense. Keep being brain washed. Check your facts there’s more to it than just they want you to know.
I do place the blame where its due
Corrupt politicians got in bed with corrupt union officials, both making absurd promises that could not be met.
Period
Not every state worker is overpaid and underworked, but Illinois is broke and it’s ridiculous to expect the rest of the state to pay absurd property taxes (already among the highest in the nation) for a bunch of greedy union workers who are clueless as to how well off they are vs. the private sector.
Mish
I do not agree. I do not think all union people are greedy. I also do not think that the figures are accurate. The union is not asking for big increases. This is all a farce to turn people against the union. You really think the governor or any other politician has the tax payers at heart? Hell no. It’s all a tactic but I guess people really believe it. The whole system is backwards. The government gives benefits to those who are young and able-bodied with no incentives to push ahead. Instead they give incentives to stay low income and you think that’s not draining the taxpayers? Democrat or Republican they all have their own agenda and it has nothing to do with the taxpayers. If that really were the case then all aspects would be considered. But they are just trying to free up money so that they can employ their buddies with 100,000 plus salaries. Frankly I think their all crooked. As for the high property taxes well that affects us all. It sucks but once again it is not because of greedy union people. It’s greedy politicians.
It’s not just the rank and file union workers that are on the take. Do you think the union membership. Is going to turn down wages and benefits that the union leadership “negotiates”? Hell no. Those general employees , cops, and firefighters had a good thing going. Take the money and run, play the game, talk Liberty and patriotism, but don’t fuck with my money on union benefits.
The Union leadership is as corrupt as the top level city or county administrators. They and the politicians want keep their jobs and benefits too….but somebody has to pay. The taxpayer working in the private sector had no idea that these “negotiations” were just a show. A dog and pony show while they stole all they could from the public. City / county insolvency is now coming home to roost. Wait till the pension plans which are upside down hit the fan in a few years. Who’s gonna pay the piper?
The bottom line is this country is fucked but they won’t tell you.
I’ve read the article… I’ve read the comments…I’ve been a state employee for 18 years…so I know what I’m talking about when I say that this is the most misleading article about state employee benefits and greed I’ve ever read…scares me how easily it is to write something and convince anyone who reads it that it’s gospel.. I could touch on every single point but I feel like I’d be wasting my time..if u look on the state website u will see my income as a correctional officer is about 63,000 a year… a job that requires me to live day in and day out with violent criminals..working an evening shift or midnight shift with Tuesday Wednesday off for years and years..but what they didn’t tell u is that we pay for a huge portion of our retirement ourselves…after this deduction, healthcare, taxes, etc.. our take home is in the very low 30s…Overtime after 37.5 hours a week?.. again misleading..we don’t get paid for our 30 minute break.. so it’s actually overtime after 40 hours a week like everyone else.. 5 weeks vacation? I’ve been there 18 years and still haven’t seen that…it’s 2 weeks for over the first 10 years..I have no Idea when u see 5 weeks…if I had to guess it’s around the 30 year mark.. many many of state employees for years now are working without the whole of their contractual benefits..no step rase in years..no cost of living increases that were promised.. none for years.. I could go on… for days actually.. this article was nothing more than a misleading malicious attack on state workers to try and divert people’s attention from the march on the capitol.. I didn’t read one thing about the true drain on the state.. welfare..chicago… wake up people… I thought we all learned the dangers of propaganda from the 1940s..