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Thursday, September 1, 2011

Up to 47,000 state employees face notification of lay-off September 1st, while Gov. Snyder mandates union cuts

Photo Credit-Google Images
Gov. Rick Snyder (R) vowing
forward with his plans to make
a dent in Michigan's middle class
with announcing cuts to state
employees today, for October 1st.
Decision day for Gov. Rick Snyder (R) "Shared Sacrifice" moves for up to 47,000 of Michigan civil service employees could be today. 

State law mandates that by 30 days in advance, or by Thursday, September 1st, Gov. Snyder must notify state employees if they will be lay-off on October 1st, hereby adding to Michigan's growing 10.9 jobless rate.

Gov. Snyder is seeking up to $145 million dollars’ worth of budget cuts now, off of the backs of state employees after increasing taxes on Seniors, cutting assistance programs to the poor and ending a variety of tax exemptions for the middle class; after giving $1.5 billion dollars in tax breaks to the state’s C & S corporations.

The employee unions have countered to offset the cuts, by presenting reasonable suggestions such as reducing the number of administrative management positions on the state payroll , up to the Governor’s own office, and trimming 10% on outside unionized contracts.

Michigan's state employee ranks dropped by 12,000 employees during 2003-2009 under former Gov. Jennifer Granholm's (D) leadership.

Photo Credit-ROJS News
A protester sign in Lansing, Michigan
during the first half of 2011
outlined Gov. Snyder's vision for Michigan
According to the state's budget office, the problem is state workers have had an increase in their total compensation packages, which they blame on pensions and benefits. 

Ironically, all civil service employees hired since 1998 have partially funded their own retirement plans.

Under Former Governor John Engler (R), starting March 31, 1997 all state government employees were required to reserve a part of their own retirements, with a state match similar in the private sector of 3 to 5%, though either 401K or 453B defined contribution plans.

A budget report from Snyder's office shows that between 2000-2009 state employee pay and benefits increased 42% from $43,450 to $62,237. In contrast, the average based corporate CEO based base pay increased during the same 10 years period on a ratio 300 to 1 in comparison to the America worker generally, civil serviced employed or private employee.

Meanwhile, the Snyder Administration ignores the facts of un-even pay disparities between Top Corporation CEO’s and state employees, by bring the focus back on middle-class Michiganders salaries.
"We want to work with our unions in a constructive way on the long term structural fixes so we don't keep nickel and diming our employees with short term solutions over and over again," said Gerlayn Lasher, Snyder's communications director.
The state government can rescind layoffs when and if a deal to Gov. Snyder preference is reached with unions by October 1st.

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