Capitalists vs. Socialists

The capitalists (private enterprise) vs socialists (unions) both contending for the good of their own selfish supporters, but which is posed to do the right thing for the people who ultimately pay the tab.  Will the employed public servants take a cut in pay while unemployment rises, or will they remember where the cash comes from that pays their salaries?  Lets take a look with the Governator’s plan.

Schwarzenegger Plan for Furloughs Upheld by Judge

Jan. 29 (Bloomberg) — California Governor Arnold Schwarzenegger can order thousands of state workers to take two unpaid days off a month to cut $1.4 billion from the budget, a judge ruled.

Superior Court Judge Patrick Marlette in Sacramento, California, today ruled in favor of Schwarzenegger in a lawsuit brought by employee unions seeking to block the furloughs. Schwarzenegger said yesterday that he would lay off workers to achieve the savings if he lost in court.

“I cannot help but recognize the huge impact this will have on state workers,” Marlette said at a hearing today in Sacramento. “My job is not to rule if this is the right solution but whether his action is authorized by law.”

The unpaid days off, scheduled to begin Feb. 6 for 238,0000 workers, amount to a 10 percent pay cut, according to labor unions that oppose them. Schwarzenegger, a Republican, ordered the furloughs to help conserve cash.

California, the most-populous U.S. state, is anticipated to have $42 billion less than it will need to pay for schools, police and other services through June 2010 because the recession and stock market have lowered tax revenue.

“The governor’s furloughs will save over a billion dollars and avoid laying off thousands of state workers,” said Matt David, Schwarzenegger’s spokesman, in a statement after the ruling. “As businesses and families across the state are cutting back to make ends meet, so must government.”

Appeal Possible

Jim Zamora, a spokesman for Service Employees International Union, Local 1000, a plaintiff in the case, said the group may appeal. SEIU filed an unfair practice complaint today with the state’s Public Employment Relations Board alleging the furloughs violate collective bargaining agreements.

“We feel we have strong grounds for an appeal. But we will not make a final decision until our attorneys have discussed all our options with our union leadership,” said Zamora in an e- mail.

Earlier this month, state Controller John Chiang said he would delay $3.7 billion in payments, including income-tax refunds, if the budget isn’t redrawn to ensure there is enough money for schools and to meet interest payments on debt, which are priorities mandated by law.

The deficit and cash shortage developed rapidly after Schwarzenegger signed this year’s budget in September. Since then, the governor called lawmakers into three special sessions and twice declared fiscal emergencies. On Jan. 7, he vetoed the only budget plan that reached his desk.

Schwarzenegger said yesterday that he anticipates they will strike a deal within the next few days on the deficit.

The case is Professional Engineers in California Government v Schwarzenegger, 2008-80000126, Sacramento Superior Court.