Face the State Staff Report
DENVER – A national labor expert says a recent ruling made by Colorado’s governor benefits union leaders at the expense of some state employees.
On March 15, Democratic Governor Bill Ritter issued an executive order enabling state government to deduct money from employees’ paychecks and transmit them directly to a labor union. “This will once again give employees the option of assigning association dues directly from their paychecks to their organizations,” Ritter said.
The Governor’s action rescinded a 2001 order by his predecessor Bill Owens that allowed the state payroll system only to perform transactions for state-sponsored charities, direct reimbursements, tax withholdings, employee benefits, or other uses mandated by law. The 2001 order prevented the Colorado Association of Public Employees from collecting dues through public payroll. CAPE members since have been able to use private banking or other means to transmit dues payments. Within the first month of Owens’ order taking effect, two-thirds of members opted to stop paying.
Michael Reitz, director of labor policy at the Evergreen Freedom Foundation in Olympia, Wash., said the response of workers to the change in policy highlights a divide between union leaders and their membership.
“Unions favor automatic payroll deductions to collect dues because they know workers would revolt if they have to write a check every month,” he said.
To stem the tide of its declining membership, CAPE negotiated a deal to affiliate with the national Service Employees International Union (SEIU). SEIU made $1 million in reported political contributions during Colorado’s 2006 election, virtually all benefiting the majority Democrat Party. The union directly contributed $10,000 to Ritter’s campaign, the maximum allowed under state election law. CAPE-SEIU would be the primary beneficiary of the Governor’s order.
“It’s no surprise unions would seek to enact policies in their own interest, but government should not extend the force of law to keep workers in the fold,” said Reitz. “If unions offer services that workers truly value, there will be no difficulty in attracting and maintaining a satisfied membership.”
Ritter cited convenience and efficiency as important reasons to restore CAPE’s access to the state payroll system. Even so, the Colorado State Employees Credit Union and numerous other banks provide customers with free online transactions. These services allow customers, including state employees, to set up automatic monthly payment plans. At press time, the Department of Personnel and Administration, which oversees the state payroll system, could not provide an estimate of how much it would cost to implement Ritter’s order.
Regardless, Reitz said managing union payroll deductions is not an essential government service.
“There is no reason for state government to act as bill collector for private organizations,” he said. “Unfortunately, policies like [Ritter’s executive order] make it even easier for unions to pick workers’ pockets.”
The rule is scheduled to go through a period of public notice and public comment before it takes effect in August.