The Shameful Attack on Public Employees
Wednesday 05 January 2011
by: Robert Reich | Robert Reich's Blog | Op-Ed

Fire fighters prevent a gasoline fire from spreading. Fire fighters are one of a group of public employees who are being targeted by the Republican party. (Photo: dolmansaxlil)
In 1968, 1,300 sanitation workers in Memphis went on strike. The Rev. Martin Luther King, Jr. came to support them. That was where he lost his life. Eventually Memphis heard the grievances of its sanitation workers. And in subsequent years millions of public employees across the nation have benefited from the job protections they’ve earned.
But now the right is going after public employees.
Public servants are convenient scapegoats. Republicans would rather deflect attention from corporate executive pay that continues to rise as corporate profits soar, even as corporations refuse to hire more workers. They don’t want stories about Wall Street bonuses, now higher than before taxpayers bailed out the Street. And they’d like to avoid a spotlight on the billions raked in by hedge-fund and private-equity managers whose income is treated as capital gains and subject to only a 15 percent tax, due to a loophole in the tax laws designed specifically for them.
It’s far more convenient to go after people who are doing the public’s work - sanitation workers, police officers, fire fighters, teachers, social workers, federal employees – to call them “faceless bureaucrats” and portray them as hooligans who are making off with your money and crippling federal and state budgets. The story fits better with the Republican’s Big Lie that our problems are due to a government that’s too big.
Above all, Republicans don’t want to have to justify continued tax cuts for the rich. As quietly as possible, they want to make them permanent.
But the right’s argument is shot-through with bad data, twisted evidence, and unsupported assertions.
They say public employees earn far more than private-sector workers. That’s untrue when you take account of level of education. Matched by education, public sector workers actually earn less than their private-sector counterparts.
The Republican trick is to compare apples with oranges — the average wage of public employees with the average wage of all private-sector employees. But only 23 percent of private-sector employees have college degrees; 48 percent of government workers do. Teachers, social workers, public lawyers who bring companies to justice, government accountants who try to make sure money is spent as it should be - all need at least four years of college.
Compare apples to apples and and you’d see that over the last fifteen years the pay of public sector workers has dropped relative to private-sector employees with the same level of education. Public sector workers now earn 11 percent less than comparable workers in the private sector, and local workers 12 percent less. (Even if you include health and retirement benefits, government employees still earn less than their private-sector counterparts with similar educations.)
Here’s another whopper. Republicans say public-sector pensions are crippling the nation. They say politicians have given in to the demands of public unions who want only to fatten their members’ retirement benefits without the public noticing. They charge that public-employee pensions obligations are out of control.
Some reforms do need to be made. Loopholes that allow public sector workers to “spike” their final salaries in order to get higher annuities must be closed. And no retired public employee should be allowed to “double dip,” collecting more than one public pension.
But these are the exceptions. Most public employees don’t have generous pensions. After a career with annual pay averaging less than $45,000, the typical newly-retired public employee receives a pension of $19,000 a year. Few would call that overly generous.
Busy schedule? Click here to keep up with Truthout with free email updates.
And most of that $19,000 isn’t even on taxpayers’ shoulders. While they’re working, most public employees contribute a portion of their salaries into their pension plans. Taxpayers are directly responsible for only about 14 percent of public retirement benefits. Remember also that many public workers aren’t covered by Social Security, so the government isn’t contributing 6.25 of their pay into the Social Security fund as private employers would.
Yes, there’s cause for concern about unfunded pension liabilities in future years. They’re way too big. But it’s much the same in the private sector. The main reason for underfunded pensions in both public and private sectors is investment losses that occurred during the Great Recession. Before then, public pension funds had an average of 86 percent of all the assets they needed to pay future benefits — better than many private pension plans.
The solution is no less to slash public pensions than it is to slash private ones. It’s for all employers to fully fund their pension plans.
The final Republican canard is that bargaining rights for public employees have caused state deficits to explode. In fact there’s no relationship between states whose employees have bargaining rights and states with big deficits. Some states that deny their employees bargaining rights - Nevada, North Carolina, and Arizona, for example, are running giant deficits of over 30 percent of spending. Many that give employees bargaining rights — Massachusetts, New Mexico, and Montana — have small deficits of less than 10 percent.
Public employees should have the right to bargain for better wages and working conditions, just like all employees do. They shouldn’t have the right to strike if striking would imperil the public, but they should at least have a voice. They often know more about whether public programs are working, or how to make them work better, than political appointees who hold their offices for only a few years.
Don’t get me wrong. When times are tough, public employees should have to make the same sacrifices as everyone else. And they are right now. Pay has been frozen for federal workers, and for many state workers across the country as well.
But isn’t it curious that when it comes to sacrifice, Republicans don’t include the richest people in America? To the contrary, they insist the rich should sacrifice even less, enjoying even larger tax cuts that expand public-sector deficits. That means fewer public services, and even more pressure on the wages and benefits of public employees.
It’s only average workers – both in the public and the private sectors – who are being called upon to sacrifice.
This is what the current Republican attack on public-sector workers is really all about. Their version of class warfare is to pit private-sector workers against public servants. They’d rather set average working people against one another – comparing one group’s modest incomes and benefits with another group’s modest incomes and benefits – than have Americans see that the top 1 percent is now raking in a bigger share of national income than at any time since 1928, and paying at a lower tax rate. And Republicans would rather you didn’t know they want to cut taxes on the rich even more.
All republished content that appears on Truthout has been obtained by permission or license.



Comments
This forum is moderated by software. Please allow up to 15 minutes for your comments to go live and avoid posting the same comment multiple times.
Indeed. This article is
Thu, 01/06/2011 - 13:03 — Anonymous (not verified)Indeed. This article is about the same as my understanding of the issue. This should not be the problem, but in the statehouses and congress, the politicians are gunning for the workers.
And look who started the
Thu, 01/06/2011 - 13:56 — Anonymous (not verified)And look who started the ball rolling, our own Barry, prisoner of Wall Street.
reporting accurate
Thu, 01/06/2011 - 16:41 — a public sector retiree (not verified)reporting accurate information is paramount to the debate in society right now between those forces who want to see the privileged class (the 1 percent of wealthy families) become more privileged and control even more of the wealth versus what is left of the middle class. Public employee unionism which accounts measuews approximately 45% density in the public sector is the last bastion of unionism in this country (only 7% of private sector workers are represented by unions). If attacks and misrepresenting information on these workers become successful, what's left of the middle class will disappear. The gains made by public employee unions have led to safer workplaces, and rewarded those who have earned degrees in higher education good paying jobs, job security, health benefits and a guaranteed pension. It's all the characteristics that have been stripped away in the private sector the last 30 years.
Wait, so lemme get this
Thu, 01/06/2011 - 17:24 — Anonymous (not verified)Wait, so lemme get this straight....politicians are lying??? Say it ain't so!
Don't leave democrats out of this either. Bloomberg and Cuomo cant wait to bust up the unions in NY. And the general public is all too happy to go along with it.
"I dont have a pension so they shouldn't either!" It's a race to the bottom for the USA.
Let me get this straight:
Fri, 01/07/2011 - 19:57 — Anonymous (not verified)Let me get this straight: I've worked both in the public and private sector, and when I retire in a few years, I understand that I will not be able to get 100% of my social security and state teachers' retirement money. Why not? Why shouldn't I be able to double dip? I worked for that money!
The democrats COULD have a
Fri, 01/07/2011 - 22:40 — Anonymous (not verified)The democrats COULD have a hey-day with this. But they won't take advantage, they don't get it, or refuse to get it.
The GOP has to work hard to make the public hate school teachers, sanitary workers, firefighters. The only way they can do it is to lie and twist the facts.
The DEMS, on the other hand, have only to tell the truth in order to get the public to hate the GOP for destroying the middle class, including public workers.
The GOP knows how to tell a story, create a drama, create an enemy, create a hero. They play their roles, they speak their lines... no matter what the truth is, they are telling a STORY in order to enact their agenda which of course profits them well.
The DEMS, though, do not tell a story. They don't create a drama... no heroes, and *amazingly* no enemies. We have here the greatest crimes (and criminals) in the history of our country destroying our country from within and the DEMS can't make a story out of it.
This is what critics mean when they say the White House is terrible about messaging. Obama should be (if he is on our side) on the TV and radio and internet continuously telling a story. A TRUE STORY. We don't have to "sink to the level" of the GOP! We just need to tell the damn truth. The people will believe in a story that is true just as well (or better) than one that is false.
The DEMS don't truly want change. If they did, they would be screaming from the rooftops. Are they sold out? Yes, most of them. But I also think they just don't know how to tell a good story. And what people LOVE is a good story.
Depends on which public
Sat, 01/08/2011 - 09:27 — Bought Sold Unionized (not verified)Depends on which public employees the article is referring to. I happen to believe that every 'Murican should be able to retire comfortably, afford food and shelter and so on. But - how many of us have attempted to petition an agency - either at the State or Federal Level? It is truly an exercise in wasting time. This isn't a reason to "destroy their jobs and gut their pensions" but these people are either powerless, underfunded, or completely worthless. In fact, some public employees have been working as dutiful, obedient soldiers for the very powers that seek to destroy their unions, pensions and jobs. The foreclosure crisis has shown how public servants, whether in the Treasury Department, Judges in Courts, politicians, public servants initially didn't dare challenge criminal banksters after years of driving people into the ground and seizing their homes after a decade of predatory usury.
I don't trust neo-liberal
Sat, 01/08/2011 - 09:29 — Reich Job Killer (not verified)I don't trust neo-liberal Reich, no one should until he apologizes for NAFTA and being a part of the Glass-Steagall destroying Clinton administration.
This web page is harbouring
Sat, 01/08/2011 - 19:28 — Indigenous Centurion (not verified)This web page is harbouring a malicious Java script. You need to consult with hackers in your technical department.
Good luck
!
The only thing frozen in
Mon, 01/10/2011 - 22:00 — EricE (not verified)The only thing frozen in Federal employee pay is the automatic 2%-4% cost of living increases - and that's probably a good thing since it's one of the primary causes of cars costing more than houses a few decades back...
Quality Step Increases (QSI), scheduled step increases, bonuses, overtime and merit promotions are still in effect so I'm not sure what exactly was frozen.
cheap coach bag
Tue, 09/18/2012 - 14:58 — LEATTBUG (not verified)cheap coach cheap to your friends vXzxaqQy http://www.cheap-coach-handbags.us/
gucci outlets
Fri, 11/09/2012 - 08:19 — rewnaida (not verified)view gucci outlet to take huge discount lIJOSRNp http://www.gucci--outlet.net/
Jordan Homme
Mon, 01/21/2013 - 12:08 — Jordan Homme (not verified)http://itvlam.com/dasiweb/index.php/component/k2/item/45-politica-una-web-muy-eficaz/45-politica-una-web-muy-eficaz?start=60
Dr Dre
Tue, 04/02/2013 - 06:36 — Dr Dre (not verified)said are all really in relation to live experiences equally guidebook other. Continue on