The Wisconsin political story is about more than just fiscal responsibility issues. Some people are interpreting the governor’s position as union-busting, and others are saying that reducing public employee bargaining rights in some states is necessary for balancing state budgets. Either way, a political revolution is underway in Madison, Wis. It is anyone’s guess on what its outcome will be.

The state of Wisconsin is $3.6 billion in the hole. The state is broke. People in Wisconsin want a balanced budget and voted in Governor Walker and fellow Republicans across the state, to fix the budget. Every state is different in its operating budget process, but very few have a balanced budget this year. Benefit payouts in most states have gotten too high and out of hand; over 29 states are now facing severe fiscal problems. The major problem appears to stem from overly generous benefits given to government employees, which are considerably higher than those benefits given in the private sector. In most states, these public workers are union members. In the past, many elected officials traded political voting support from union members in exchange for giving union workers favorable benefit agreements at the bargaining table. Eventually, someone has to pay for those give-aways, especially in this weak economy, when spending and huge deficits exceed incoming revenues. This results in states, and their local jurisdictions being faced with large operating deficits.

Governor Walker is standing his ground on wanting to remove the union’s rights to collective bargain for higher benefit packages in the future. The unions already have agreed to contribute more monies into the state’s healthcare and pension plans. According to the Governor, collective bargaining would still be permitted on wages, but not on healthcare or pensions in the future.

The governor wants this change because he says that state budget problems can not be solved with a short-term fix. Costs are rising. Inflation will raise its ugly head sometime in late 2011. Overly generous public employee benefits are too expensive for the state and towns in Wisconsin to cover in the public sector, today. Many other states may well follow whatever happens in Wisconsin, which is why both sides are fighting so hard.

Even defined-benefit packages are being replaced by defined contribution pensions today by most private sector companies. Unfunded union pension benefits can no longer be sustained, if we want balanced state budgets. In many cases, defined benefits more than double the amount of the payouts offered in the private sector. Unions do not want to compromise on future collective bargaining arrangements with Governor Walker. While the unions agreed to contribute more into the healthcare and pension funds, the governor will not change his position.

Why have many people thought the Governor’s strategy is union busting? One main reason is because the unions have been strong supporters of the Democratic Party, in both campaign funds and manpower at election times. With collective bargaining restrained, the strength of public union employees to elect local, state and federal officials favorable to their causes will be severely diminished. It will be a tremendous setback for the labor union movement in the public arena, since over fifty percent of all union workers are employed in local, state and federal governments.

Unless the Democratic State Senate members return to work shortly to Wisconsin from their planned Illinois retreat strategy, many union jobs will be cut back. Some people say the governor may have over reached his mission, to the detriment of the Republican Party in Wisconsin.

The Mideast crisis has increased gas and oil prices. Lower take-home incomes will stop consumers from buying products. Food prices will continue to rise. Housing is still down. With jobs and the economy tanking, unions feel controlled collective bargaining will diminish their political influence in elections for state and federal officials, including the Presidential elections in 2011.

Governor Walker has thrown down the gauntlet to government’s union workers; either accept changes, eliminate collective bargaining, with exception of wages or face substantial union worker layoffs. The power of public employees is at risk in other states facing severe budget deficits.

Labor is in a watershed movement. Good or bad, both sides have made this a do-or-die battle. There does seem to be a need for cool heads and reasonable compromises to prevail.

”“ Bernard Featherman is a business columnist and past president of the Biddeford-Saco Chamber of Commerce. He can be reached by e-mail: [email protected].