Senate Healthcare and Pension Reform Bill is 'Terrible' for Workers, Says Teamsters VP

A bill requiring higher contributions by public workers into their health benefits and pensions is "terrible news" for workers, says Fred Potter, a vice-president-at-large of the International Brotherhood of Teamsters' Eastern Region.

And the bill's requirement to suspend unions' ability, for four years, to bargain over health care, puts New Jersey on the same level as Wisconsin regarding its weakening of collective bargaining, says Potter.

"Workers have a right to organize, form a union and have collective bargaining," he said. "But in New Jersey, we don't have that anymore."

The GOP-led effort in Wisconsin calls for limits on collective bargaining and for public workers to pay more for health and pension benefits beginning in late August, unless a lawsuit by a coalition of unions is successful, according to the Associated Press.

Regarding Monday's Senate vote, Potter said, "The bill completely undermines collective bargaining."

Potter, also a borough resident and president of Local Teamsters 469, which represents many borough workers, said he is "disgusted" with the Democrats who supported Republicans in voting for the bill which requires the state's estimated 500,000 employees to pay higher contributions into their health care and pension benefits.

Passage by the state Assembly is expected on Thursday and Gov. Christie is expected to quickly sign it. The Senate voted 24 to 15 on Monday.

Of the 24 yes votes, 16 were Republicans, eight were Democrats and the 15 no votes were all Democrats, according to published reports.

"I'm really upset," Potter said. "I'm disappointed with the Democrats who voted for this. We need to throw every one of them out of office.

"And the governor won't be happy until people are enslaved and working for nothing," he added.

Republican Gov. Chris Christie, the driving force behind the landmark legislation, praised the Senate for its action.

"This is a watershed moment for New Jersey, proving that the stakes are too high and the consequences all too real to stand by and do nothing," he said in a written statement on Monday.

"As a result of Democrats and Republicans coming together to confront the tough issues, we are providing a sustainable future for our pension and health benefit system, saving New Jersey taxpayers hundreds of billions of dollars and securing a fiscally responsible future for our state," Christie said.

NJ.com reported that the governor declined last year to support extending a higher tax rate on personal income over $1 million, according to Jon Shure of the Washington, DC-based Center on Budget and Policy Priorities. The center leans Democratic.

The state’s nonpartisan Office of Legislative Services estimated the higher rate would have generated about $637 million for the property tax relief fund in the current fiscal year.

The Associated Press is reporting that the bill passed on Monday suspends unions' ability to engage in collective bargaining over health care. An 11th hour measure allows such collective bargaining to resume after four years, but that addition "did little to quell union objections," AP reports.

Potter said it appears Senator Steve Sweeney, D-Gloucester, is abdicating support of workers' rights to further his own "political ambition."

"I'm disappointed with Steve Sweeney, and Sheila Oliver (D-Essex), who, when she was running, spoke for workers' rights," Potter said."The Democrats have let labor down, they've let workers down. And they're the ones who come to labor to get them elected.

"We understand some changes are needed with pensions," Potter acknowledged. "But they should have addressed pensions and left everything else alone, and left it for collective bargaining."

Democratic Borough Councilman Chris Leitner said on Tuesday morning, "As I understand the bill that passed the Senate, we would not feel the effects until next year. However, it is too early to tell what the final version will look like and we will closely monitor the developments."