Federation of Connecticut Taxpayer Organizations

Susan Kniep is the former mayor of East Hartford and current president of The Federation of Connecticut Taxpayer Organizations, Inc. E-mail: factopresident@aol.com.

The most impacting unfunded mandate in this state is binding arbitration, as taxpayers in the 169 Connecticut towns pay between 75 percent and 85 percent of their property taxes to fund government labor costs.

Not only are arbitrators passing judgment on union wages, health care, and pensions, but grievances as well.

During my tenure as mayor from 1989 to 1993, the state was in a recession. Those working in the private sector suffered massive layoffs while the public sector was not only secure in their jobs, but expected wage increases.

In an attempt to control the finances of East Hartford, when elected I relinquished the taxpayer-financed automobile I was entitled to. Concurrently, I instructed town employees to cease the practice of driving town-owned vehicles home. This was done after a careful review of their contracts which did not grant this entitlement.

The unions subsequently filed a grievance. I lost my case due to a seldom-referenced term called "past practice." If the union is doing something outside the realm of their contract, arbitrators have ruled they have earned the right to do it.

The most egregious act by the government unions was when they successfully took control of millions of dollars as a result of the Anthem stock distribution.

Rather than allowing towns to use this money to offset union health-care costs paid for through property taxes, the unions felt entitled to the money and filed lawsuits to take possession of it from the taxpayers.

The Federation of Connecticut Taxpayers Associations recognizes that binding arbitration will not be abolished in the immediate future, although other states have done so. However, there must be reform, as arbitrators have no accountability to the voters.

We therefore urge the following legislation:

First, give local elected officials the same powers that state elected officials have to better control their labor costs.

Second, don't allow unions to access a town's savings when negotiating contracts. Instead, allow towns to save money for future projects which currently have to be bonded at high interest rates.

Third, give towns the right to suspend binding arbitration for up to three years when impacted by negative economic conditions.

Next, take the negotiation table out from behind the closed doors of secrecy and into the light of public debate. Taxpayers fund union contracts and should have every right to follow negotiations and comment on terms being negotiated before contracts are agreed to. In fact, as union members vote on union contracts, taxpayers should be allowed to vote as well.

In conclusion, the majority of Connecticut residents work in the private sector under "at-will" conditions wherein they can be terminated at any time, for any legal reason, or for no reason at all by their employer. They work in a state of flux knowing that their employer on any given day can demand that they pay a greater share of their health-care premium, take on a greater workload, receive a minimal salary increase, no salary increase, or have their pay cut. There will be no debate, no bargaining, no arbitration, and no elected official waiting to defend them.

Yet, the American dream is alive and well for those whom the "at-will" employee is forced by arbitrators to financially support. They are the state and municipal government workers who exercise their state-given right to force negotiations and push their agendas, behind closed doors, under state binding-arbitration laws, which leave taxpayers powerless. Unions vote to accept or reject their contracts. Taxpayers have no vote. Instead, taxpayers are simply presented with their property tax bill to fund these lucrative union contracts.
Taxpayers in the 169 towns and the state need property tax relief.

Reforming binding arbitration will provide that relief.

Susan Kniep is the former mayor of East Hartford and current president of The Federation of Connecticut Taxpayer Organizations, Inc. E-mail: factopresident@aol.com.