Carla Katz on the 'F Word'

By Carla Katz | April 4th, 2009 - 11:44pm

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There have been numerous press stories covering the "F" word in the past month-furloughs, not the other New Jersey favorite. The fight over furloughs has been characterized by the press in a variety of ways. The Governor's "tough times budget" spin-the state is in an economic meltdown, everyone must share the pain, and 14 unpaid days and a wage freeze is better than layoffs. The unions' collective message-a contract is a contract and furloughs (AKA pay cuts) and demands for givebacks of negotiated wages undermine the collective bargaining process and unfairly penalize middle class working families who have already made massive concessions and cannot afford to give more in this troubled economy any more than their neighbors can.

Some of this battle is playing out on the streets, some in the press, and now also in the courts as the state appellate court has recently agreed to hear argument on the issue of public worker furloughs and whether an emergency rule of the Civil Service Commission was an illegal end around the contract as the unions say or a proper exercise of government in "imminent peril" as Governor Corzine says. Similar high profile furlough battles are taking place across the country, including in California and Washington State, and in cities like Newark where the Mayor just proposed city employees take 18 furlough days over the next year.

Even though furloughs are a hot topic, the issue is not really the "F "word but two "C" words-Contract-and a "C" word that we rarely discuss-Class. How is it that an employment contract is so inviolate that it warrants government protection of AIG executives' $23 million dollar bonuses while a contract that protects the wages of regular workers who earn $50 grand or less a year is not? Why is it that taxpayer dollars spent on high paid executives is a "binding obligation" but the legally binding collective bargaining agreements for thousands of middle-income state workers, police, firefighters and local government workers are not?

Of course, I am referring to the most massive public bailout of a financial institution in this country's history-of the insurance giant American International Group (AIG) that is paying hundreds of millions of dollars in bonuses to executives who presided over the transactions that bankrupted the company and threatened the world economy. It is well publicized now that AIG, which received $170 billion in bailout funds, is paying out a reported $165 million in bonuses to executives in the financial products division who presided over the company's nearly 100 billion dollar losses in 2008. Those bonuses are on top of the hundreds of millions of dollars in so-called "incentive pay" and "retention pay" coming out of taxpayer pockets to bail out AIG executives.

When popular outrage at the AIG bonuses hit fever pitch, Treasury Secretary Timothy Geithner is reported to have called government-appointed AIG Chairman Edward Liddy to demand the executive bonuses be reduced. Liddy responded that the bonuses were "binding obligations" as they were part of the AIG executives' employment contracts and that failure to pay them might provoke lawsuits. Responding to the public backlash, President Obama demanded that the Treasury Secretary "pursue every single legal avenue to block these bonuses and make the American taxpayers whole." Geithner promised to recoup some of the bonus money by deducting it from future AIG aid. But that still means the executives get to keep the money.

In mid-March, on ABC's "This Week," Larry Summers, Director of the White House Economic Council, declared that despite his outrage at what's happened at AIG, and despite the fact that the government now owns 80% of AIG, the administration could do nothing about the obscene bonus packages. Regarding the bonuses, Summers said, "We are a country of law. These are contracts. The government cannot just abrogate contracts." A contract is a contract--good to know.

Here is where the second "C" word-Class--is so glaringly apparent. At the same time that contracts for executives are sanctified, abrogating contracts for has been de rigueur for the country's working and middle classes. AIG executive bonuses are protected but the bonus payments, and the pay, of American autoworkers were slashed by the White House as a condition of the $17.4 billion in government financing to automakers to stave off bankruptcy in the industry. There were no pious statements about the inviolability of labor contracts. Rather autoworkers themselves were maligned and their contracts were slashed-overtime, bonuses and cost-of-living raises for middle class workers were on the chopping block.

Now, the contracts of public workers at every level of government in New Jersey and across the country are facing the same fate. No government proclamations about " a nation of law" or about the sacredness of contracts seem to be forthcoming when it is workers' contracts, rather than executives' contracts, that are being broken.

One thing is abundantly clear-working people in New Jersey, and across the nation, continue to be angry. They are angry about the greed on Wall Street that helped propel us all into this economic crisis, angry about their dwindling bank accounts and lost jobs, angry about the fear they feel at just opening their bills, and angry about demands made for workers and the middle class to "share the pain" while they watch Wall Street and AIG executives continue to get richer.

If a contract is a contract for the executives at AIG, then a contract is a contract for a caseworker in Camden or a nurse's aide in Burlington or a firefighter in Elizabeth. As anger continues to mount, the most common "F" word that will be used by working people when they go the polls this year won't be furloughs.

Tags:

Nonsense Carla

Submitted by Michael Illions on April 5, 2009 - 7:39am.

The unions' collective message-a contract is a contract and furloughs (AKA pay cuts) and demands for givebacks of negotiated wages undermine the collective bargaining process

Right Carla. And no union has ever called for a strike while under a contract, or demanded that a contract be re-negotiated during the term of the current contract, even though both clearly "undermine the collective bargaining process."

Yes, because 'They Did It Too' is a valid argument...

Submitted by Caias Ward on April 5, 2009 - 8:51am.

As well as a means to pull words out of context in an attempt to obfuscate the real issue.

What I and probably the rest of the readers will draw out of this piece is that there is a double standard on employment contracts between executives and working class people. An attempt to alter or outright ignore these state worker's contract is not only morally reprehensible but terrible economic policy. With money in hand, these people will actually use it in their localities to pay bills and purchase goods and services. As well, the middle class will spend their money on more 'essential' items (food, for example) than AIG and other executives, and also spend it more locally (such as New Jersey tourism). Or we can allegedly 'cut back', which never seems to work that way as it is always at the expense of the people who actually drive the New Jersey economy: the middle class consumer.

Steal this money away from these workers at New Jersey's peril, from the K-Mart and Lowe's that doesn't see the spent dollars to the boardwalk stands and local restaurants that aren't visited.

You Know Better

Submitted by firstamend07 on April 5, 2009 - 8:58am.

Carla, I am disappointed. You know EXACTLY why the state workers are in this mess but for some reason you are quiet.

The CWA Union leadership has misplayed this issue from the start.

WE both know that Corzine wanted their support for a wage freeze back in January.

WE both know that Article 41 of the state worker contract gave the Legislature, and therefore Corzine , the absolute right to not fund the monetary terms of the contract if not funding was necessary. YOUR FORMER CWA LEADERSHIP TEAM SIGNED THAT CONTRACT !

WE both know that had CWA leaders come out and accepted the wage freeze then Corzine would not have implemented furloughs and this issue would never have come up.

WE both know that that had the CWA leadership team polled the state workers on whether they would accept a wage freeze or be subject to layoffs then the OVERWHELMING MAJORITY of CWA members would have accepted the wage freeze.

WE both know that CWA leadership has not told the membership the truth about what protesting the furloughs really means . IT MEANS LAYOFFS! Layoffs of over 7,000 workers!

CWA leadership has deceived its members. CWA leadership has jeopardized its members. CWA leadership has made this situation worse.

YOU KNOW THAT YET YOU USE THIS FORUM TO TALK ABOUT EVERYTHING BUT THOSE FACTS!

What happened to the old Carla Katz? You used to call it like you saw it and you NEVER , EVER would hurt your membership.

Carla , tell me. CWA leadership is calling for pickets on Tuesday, Why are they picketing to promote the layoff of their members?

Hit it on the head

Submitted by NJ Freedom on April 5, 2009 - 9:38am.

I never thought of it that way. When the Governor first proposed the wage freezes and furloughs I have to say that I was in full support of his plan. Before reading this piece I never thought about how the contracts for the hard working state workers was similar to that of the greedy wall street executives.

The CWA is definately at a disadvantage now that you are not around to really get the message of the working class out there.

Many workers don't have contracts, Carla

Submitted by Number 6 on April 5, 2009 - 11:40am.

You seem to assume every hard-working Joe or Jane works under the auspices of a "contract." A large percentage of employment is actually "at-will" -- which translates into employers being able to dismiss workers without any cause whatsoever (absent overt factors protected by statute such as racial discrimination).

I work as hard as anyone you know - I leave the house at 7:15 am and don't get home until 1 am in the morning. I have no contract and roughly half of those in my particular profession working in NYC have already been laid off. I've given back over 10K in concessions to continue my employment. I live every day with the very real possibility that it could be my last day of employment with little propsect of finding another similar job.

When I hear unionized state workers complain about concessions and take a stand on the sanctity of contract, I understand their angst. My only question is whether they understand the Darwinian jungle that is private sector employment? When we met with our department heads and expressed our concerns about our wages being slashed, we were told in no uncertain terms, "you don't have to work here ... if you don't like it, you can leave ... there's the door"

Things are tough all over, Carla. I have many friends who work in the public sector and don't for an instant begrudge them a decent wage, top notch benefits for their families and job security. All I ask is that sympathy for the working men and women be a two way street that includes private sector serfs like me.

Two Things

Submitted by el diablo blanco on April 5, 2009 - 1:33pm.

First, aren't your 15 minutes up yet? The fact that you've been given a forum to peddle this tripe on this website makes me want to stop visiting.

Second, as a law student you should be aware that the constitution prohibits the government from changing the terms of private contracts, i.e., contracts between private corporations and their employees. This is the difference between the AIG example and the state workers contract. There is no private corporation in your example. Your failure to take note of this suggests that you should go back to first year contracts and con law for a refresher course.

Now, I know the title says two things but I would be remiss if I didn't question how it is you believe you'll be admitted to bar when given the findings reached by your union. Act of moral turpitude are one of things bar examiners will not overlook. You'd have been better off killing someone - no, killing Jon Corzine's political career doesn't count - than engaging in the behavior they've found you to have committed. Again, I know that the CWA's findings are not the same as the findings of a court of law, however, I hold out precious hope that soon enough a similar finding will be reached by a court of law. At that moment, your fifteen minutes of fame will hopefully be converted into fifteen months of time served.

Right on

Submitted by LeonSJ on April 5, 2009 - 4:43pm.

I'm one of those angry working people and I think Katz is right on target here. Regardless of whether someone is in a union or not, we are all getting ripped off in the AIG debacle. Corzine is asking people, like my sister, who works for the state and makes less than $40K, to sacrifice while his friends keep making money, And el diablo blanco, you're just a flat out idiot that obviously never went to law school yourself. Katz's analysis is right. Likely, you are on of those CWA bozos that can't get out of their own way, like Rosenstein who is impossible to look at and even worse to listen too.

Go Away

Submitted by SDem on April 5, 2009 - 4:48pm.

Carla if you are so concerned about bonus' whay don't you give yours back for performing your private duties for the Corzine. Give me a break you are a two faces liar and thief and you will soon find yourself indicted, conficted and imprisoned. The faster that happens the better off we will be. Furthermore government employees should not be getting rich at taxpayers expense and their benefits should not out pace those of the private sector. It is the unions that have caused the problems that we are experiencing today more so than management. You make me ill so please go away.

tax payers need a union

Submitted by getmeouttahere on April 5, 2009 - 7:39pm.

Weren't unions created to protect workers from abuse and dangerous working environments ? The state worker slugs should not have a union or civil service protection.The tax payers need protectioin from the CWA ripping us off year after year supporting a huge "work " force of do nothing lame people who couldn't get a job any where else. Get these working welfair cases off our backs. When was the last time an average tax payer needed anything from a state worker ? They do nothing for us but rob our hard earned money.

Katz's Point Is Valid.....

Submitted by Nick Lento on April 7, 2009 - 12:33pm.

.....and most ordinary working people would agree with her.

The wealthy and the powerful get the breaks and people who actually work for a living by creating real wealth get the shaft. It's not really all that complicated....and it's nothing new.

The hatred for Katz as a person here is ugly. Obviously, some of you would have been at "home" during the Spanish Inquisition and/or the Salem witch "trials".

My own prediction is that Katz will do well and have a fine career in the legal profession if that's what she wants.

Time will tell, but guys, you really should relax a bit. Let the legal system run its full course.

I wouldn't have taken the time to comment here had there not been such poisonous reactions to illuminate and detoxify....you haters need to step back and realize how your pathology harms your own health.

Chill! :-)

From Frederick Douglass

If there is no struggle there is no progress......Power concedes nothing without a demand. It never did and it never will.

IS SHE STILL HERE?

Submitted by jerseyred on April 14, 2009 - 10:47am.

What in the name of all that's corrupt is Katz still doing here offering her opinion? As if any sane person would listen to this, the single most disingenuous and dishonest person to blemish Jersey politics since Bob Torricelli. Can't she find a nice quiet rock to crawl under? NOBODY CARES ABOUT YOU OR YOUR CONSISTENTLY SELF-SERVING OPINIONS, CARLA! GO AWAY!!!!

Nick lento wrote..."The

Submitted by jerseyred on April 14, 2009 - 7:49pm.

Nick lento wrote..."The wealthy and the powerful get the breaks and people who actually work for a living by creating real wealth get the shaft. It's not really all that complicated....and it's nothing new." Are you serious? Or are you such an envious, small-minded little cretin that you think wealth doesn't come from hard work, having unique skill sets, intelligence, innovation, or any of the many other traits which apparently passed you by on their way to worthwhile people. Underlying all the envy your ilk exhibits is little more than a desire to have what others have EARNED. That's the fundamental rationale behind the "wealth redistribution" idiocy you people are touting. Put simply you want what other people have, what you haven't earned, what you're incapable of earning...and so you demean other's achievements and diminish other's abilities. There are so many examples of people who come from poor, immigrant stock--especially in New Jersey--and have gone on to enormous success, both financially and otherwise, that your comments not only ring as hollow but they smell of that saddest and smallest of all sins, envy!

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It Doesn't Take Much Work To Be A Pirate

Submitted by Nick Lento on April 15, 2009 - 4:07pm.

Being deceptive and dishonest if immoral, even when it is legal.

Do you really defend the filthy rich bastards who fucked up our economy...and are walking away with billions of dollars in "earnings" that they derived by screwing people?

I believe in competitive free markets and in the value of real hard work. That means being productive and creative, not destructive and deceptively clever in a de facto criminal manner.

Even right wing Republicans are calling for reforms and more regulation so that the thieves and scumbags who have been screwing us are pushed back.

Read this article in full...then try thinking for a while before reacting.

http://www.helium.com/items/1290617-free-market-ideology-is-dead-a-fanta...

From Frederick Douglass

If there is no struggle there is no progress......Power concedes nothing without a demand. It never did and it never will.

Another Article for Jersey Red....

Submitted by Nick Lento on April 15, 2009 - 4:14pm.

http://blogs.nashvillescene.com/pitw/2008/09/republicans_regulation_cris...

Is Lamar Alexander a "commie" too?

Face the reality that stealing is just plain wrong, even if it's "lega".

Then again, if you've made lots of money as one of the folks who screwed others....I could understand your tendency towards having a self servingly warped perspective.

From Frederick Douglass

If there is no struggle there is no progress......Power concedes nothing without a demand. It never did and it never will.

Take the Money and Run

Submitted by Opus on April 15, 2009 - 9:14pm.

Carla, you got $12 million from Jon boy and the union threw you out. No one cares about you or what you think. Go away and try to keep everything you open, closed.

Yeah, that's it...

Submitted by jerseyred on April 16, 2009 - 4:27pm.

Nick (The Dolt) Lento wrote..."Then again, if you've made lots of money as one of the folks who screwed others...."

Got it. You think anybody who has more than you must have gotten it by "screwing" others. Accept your lot as an entitlement-minded bottom feeder and let your envy pass; it is a poisonous trait.

Ad Hominem Ad Hominem Ad Hominem

Submitted by Nick Lento on April 16, 2009 - 9:31pm.

You revert to simplistic ad hominem as if that were scoring you any points.

Calling me a "dolt" may have worked in your own mind; but here the words and arguments and ideas and citations matter.

So far, all you've shown us is that you have one argument (that I'm envious) .

You haven't addressed any of my arguments or the article cited...that's loaded with additional information and arguments. You're style may have served you well in the schoolyard in the third grade, but it is inadequate to meet the challenge of online debate in a forum of educatated folk.

Unless you actually come up with something substantial/and or intelligent, you aren't worth wasting my time over.

However if it pleases you to indulge in more ad hominem...knock yerself out....it just makes you look more folish, at best, and pathetically meanspirited at worst.

The fact is that many Republicans and right leaning people have acknowledged that the "market" needs to be regulated and that unbridled greed is toxic.

(PS Try actually *reading* the article I linked to above. ;-)

From Frederick Douglass

If there is no struggle there is no progress......Power concedes nothing without a demand. It never did and it never will.

That may be the dumbest,

Submitted by jerseyred on April 17, 2009 - 3:04pm.

That may be the dumbest, most ironic post I've ever read. You're an envious, entitlement-driven dolt, and Carla Katz is a disreputable jackass, whose presence as a columnist here is both a mystery and a disgrace. You're nothing but an apologist for the unions which have crippled New Jersey with THEIR greed. Worse, you sicken me with your relentless "what's yours is mine" attitude. Do me a favor, you and your comrades keep your hands out of my pocket and I'll let you continue to wallow mindlessly in the corrupt pigsty you've created of this State. Until then, stop boring me with your inane quotes designed to paint yourself as a rebel and soldier in the struggle for whatever the devil it is you think you're struggling for. What a pompous boor you are!

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ROTFLMAO The Fact That You Are Unable To...

Submitted by Nick Lento on April 22, 2009 - 9:37am.

...address anything I've said in any substantive way; but instead are compelled to resort to a barrage of pure ad hominem and straw man arguments and silly red herrings is an indication of your own intellectual bankruptcy.

Red, the more you impotently fume and sputter the stronger you make my case! LOL

If you really believe the nonsense you spew; have the guts to come out of the dark and post under your own name.

Are you really proud of what you say here? Or ashamed?

Go public if the former, stay in your dark solitary hole if the latter (and keep gnashing those teeth. :-)

From Frederick Douglass

If there is no struggle there is no progress......Power concedes nothing without a demand. It never did and it never will.

State workers making $500,000?

Submitted by Jim from Pemberton on April 24, 2009 - 11:46am.

Corzine furlough demand + wage freeze would cut pay of NJ workers making $51K/year by $4K, while asking $500K/year earners to sacrifice ZERO.

Who are these state employees who make 500,000 a year?

Perhaps furloughs are the wrong policy. This may be the time for the really tough decisions.

يوتيوب

Submitted by aso0ol on April 27, 2009 - 5:26am.

حارة الملاقيف

go &*%$ Corzine you

Submitted by reagan conservative on April 27, 2009 - 10:19pm.

go &*%$ Corzine you communist Carla

Blah Blah Blah

Submitted by edmac on April 30, 2009 - 2:01pm.

Blah Blah Blah.

Wake and smell the real world!

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I must be soaking the truth wealth producers

Submitted by jeanpierre on May 2, 2009 - 11:02am.

I make over $150K a year. Does this mean I'm soaking the poor? Through continual education and hard work, my employer thinks I'm worth it. When they don't, I'm out.

This argument regarding gov't employee salaries and benefits will never end. When I go by a new LCD TV from Walmart, I don't care that the store manager got a $100k bonus and a paid trip to Cancun for meeting his sales targets. If Walmart's price point is better that Best Buy, I'm buying from Walmart. That is the problem with the non-private sector, no competition. We don't have the option to decided to not participate in the NJ gov't system. We can not participate in the NJ gov't run education system but are dollars are still be collected to fund it.

Since we are forced to participate, like a fan at a sporting event, it's our right to jeer the home team when they underperform.

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