Schwarzenegger orders minimum wage for state workers - Chiang won't comply

[olds]

Brought to my attention by another member:
http://www.sco.ca.gov/eo_pressrel_controller_responds_to_dpa_letter.html

Controller Issues Statement Regarding DPA Letter

SACRAMENTO – The following statement was issued by the Controller in response to a notice by the Department of Personnel Administration that they were planning on issuing a pay letter ordering the Controller to reduce state employee salaries to the minimum wage, with the exception of the six bargaining units the administration has reached an agreement with.

“I am not surprised that the Governor would issue yet another demand that we cut pay for more 250,000 state employees even while the issue of whether it is feasible to do so has not yet been resolved by the courts. I have made it clear that once the courts hand down a final resolution, I will abide by that ruling.

“In the absence of the leadership needed to bring the Legislature to an agreement on his budget, the governor again resorts to political tricks. Because of the limits of the state’s current payroll system, there is no way that his order can be accomplished without violating the State Constitution and the federal Fair Labor Standards Act. In short, his demands will do nothing to solve the budget deficit, but will hurt taxpayers by exposing the state to billions of dollars in penalties for those violations.

“Unfortunately, the DPA also is mistaken about the position of the previous State Controller about the ability of the state payroll system to make reductions to more than 250,000 paychecks. In a letter written in July 2004, my predecessor notified legislators that his office ‘had conducted a study and concluded it is not feasible to pay some employees full salary and others minimum wage under the state’s current payroll system.’

“Notwithstanding necessary changes to the State’s labor laws, we continue to work with the Governor on building a system capable of legally reducing wages in the manner sought by his Administration. This system modernization is slated for roll-out in 2012. If the DPA has a problem with that schedule, they should consult the steering committee, of which four of the six members are the governor’s appointees, including DPA Director Debbie Endsley.

“Again, absent a final court ruling, I will continue to protect the State’s finances and pay full wages earned by state employees.”

 

[SoCalAznGuy]

I work for a continuously appropriated agency, but not in one of the six unions with a deal, hope this we are exempt.

 

[olds]

I work for a continuously appropriated agency, but not in one of the six unions with a deal, hope this we are exempt.

The pay letter in 2008 exempted certain groups. There has been no mention of those groups this time around.

Found it. Attachment A listed the exempt groups.

http://www.dpa.ca.gov/news/news/2008/20080806-01.htm

 

[Craig234]

SOunds like Gray Davis wasnt so bad after all. Huh?

Said that since before the recall. He was a lot better than people realized.

Some idiot voters blamed him for Enron, for example, then voted in an Enron ally instead.

 

[Craig234]

I am.

Too bad others don't get to enjoy the same for you.

 

[Vic]

I am eligible to retire in 4.5 years. I will likely work another 8.5.
Then I will take my RV to South Dakota, Stay at a KOA campground and register my vehicles there and register to vote there. I will become a resident.
Then my CA retirement will not be taxable at CA rates and I will roam the country. Like Kwai Chang Caine. Maybe go back to visit but never hold property or live there again. I am not the only one.

As it is a known fact that the problem with California is Californians, the other 49 states would prefer you stay there. Californian immigration is a blight on the rest of the country. No matter where you move to, you'll just do your damnedest to make it just like California.

 

[dmcowen674]

As it is a known fact that the problem with California is Californians, the other 49 states would prefer you stay there. Californian immigration is a blight on the rest of the country. No matter where you move to, you'll just do your damnedest to make it just like California.

Bahahahahaha

 

[The Stigenator]

Yay GAS thanks for $7.25/hr. I have never felt so important and never worked as hard in my life as I have to deserve this raise. You remind me there is more to life than work, so i will be on the side of the freeway off ramp holding a sign 'state worker, will work for food or $7.25/hr whichever is lower'

 

[Red Dawn]

As it is a known fact that the problem with California is Californians, the other 49 states would prefer you stay there. Californian immigration is a blight on the rest of the country. No matter where you move to, you'll just do your damnedest to make it just like California.

How so?

 

[StageLeft]

SOunds like Gray Davis wasnt so bad after all. Huh?

He was at the helm during a gentle breeze on a nice day. Arnie took over for night watch when a hurricane blew over.

It is too bad that backpay will certainly be paid up for these people. CA is freaking broke, so is NY state.

 

[Red Dawn]

He was at the helm during a gentle breeze on a nice day. Arnie took over for night watch when a hurricane blew over.

Just like Obama. Neither is the man for the job nor does there seem to be one.

It is too bad that backpay will certainly be paid up for these people. CA is freaking broke, so is NY state.

So you believe these employees aren't worth more than some guy flipping burgers?

 

[StageLeft]

Just like Obama. Neither is the man for the job nor does there seem to be one.

So you believe these employees aren't worth more than some guy flipping burgers?

When an engineer is laid off he's paid $0 by his employer; is he really worth $0, though? CA has no money left.

 

[Red Dawn]

When an engineer is laid off he's paid $0 by his employer; is he really worth $0, though? CA has no money left.

Most of these jobs are essential services. Would you work at as a Prison Guard for $7.50 an hour? Hell would you work at your current job for $7.50 an hour?

 

[SoCalAznGuy]

Most of these jobs are essential services. Would you work at as a Prison Guard for $7.50 an hour? Hell would you work at your current job for $7.50 an hour?

While I don't like it. We aren't woking for minimum wage. State employees will be paid their full wages, the payment will just be delayed until a budget passes.

 

[Red Dawn]

While I don't like it. We aren't woking for minimum wage. State employees will be paid their full wages, the payment will just be delayed until a budget passes.

Can you tell the bank you'll make your mortgage payment when you get your money owed to you?

 

[SoCalAznGuy]

So you know it is the supreme court of california that mandates this minimum wage. Arnold is actually doing the legal thing and enforcing their order.

 

[rudder]

All Ahnuld will end up doing is getting sued... even if he could accomplish this. If he wants attention he would be better off ordering the state government closed. This is what they do in Tennessee if they do not pass a balanced budget by July 1. Last time the government shut down was like 8 years ago. The state furloughed 22,000 non-essential employees. It only lasted a few days, but got everyone's attention.

 

[rudder]

Can you tell the bank you'll make your mortgage payment when you get your money owed to you?

Actually yes. The mistake most people make is they do not talk to their creditors when there is cash flow problems. Should a state employee find themselves unable to pay a mortgage and they call the lender... likely they will waive late fees etc. Granted this is not indefinite, but being a political ploy, likely the state workers would not work for minimum wage very long.

 

[SoCalAznGuy]

All Ahnuld will end up doing is getting sued... even if he could accomplish this. If he wants attention he would be better off ordering the state government closed. This is what they do in Tennessee if they do not pass a balanced budget by July 1. Last time the government shut down was like 8 years ago. The state furloughed 22,000 non-essential employees. It only lasted a few days, but got everyone's attention.

Unlikely as the courts have already said that state workers must be paid minimum wage if there is no budget.

 

[OutHouse]

How so?

the inflated housing prices we have in the Denver metro area housing market is one example.

 

[AmerDoux]

Unlikely as the courts have already said that state workers must be paid minimum wage if there is no budget.

That ruling is currently at a higher court and will have a decision soon. Arnold should have waited until the court posted its decision. Very rash of him to make this order and risk millions of dollars in lawsuits. Arnold is saying those with tentative union contracts will get paid their full wages and only those who wont agree to his terms will receive the minimum wage. That law states that minimum wage may be paid if there is no appropriation. Either everyone gets the minimum wage or nobody does. Arnold cant pick and choose who the law will apply to. It has nothing to do with the state not having the money, they do they just havent appropriated it yet. It has everything to do with Arnold using this as a weapon to financially hurt and therefore force those employees to agree to his terms.

 

[OrByte]

That ruling is currently at a higher court and will have a decision soon. Arnold should have waited until the court posted its decision. Very rash of him to make this order and risk millions of dollars in lawsuits. Arnold is saying those with tentative union contracts will get paid their full wages and only those who wont agree to his terms will receive the minimum wage. That law states that minimum wage may be paid if there is no appropriation. Either everyone gets the minimum wage or nobody does. Arnold cant pick and choose who the law will apply to. It has nothing to do with the state not having the money, they do they just havent appropriated it yet. It has everything to do with Arnold using this as a weapon to financially hurt and therefore force those employees to agree to his terms.

Those "tentative" contracts don't mean diddly until the union members vote and the legislature acts on those contracts correct?

It becomes clear to me that negotiating union contracts under the threat of minimum wage is the real issue here. It is not a California cashflow problem. And I don't think that contracts negotiated in such a hostile environment, absent a "good faith" deal, will stand in a court of law.

Those unions can probably take these "tentative" contracts to a judge and get them thrown out...after Arnold is gone.

So Arnold has exposed the State of Calfornia to hundreds of lawsuits, possibly costing taxpayers millions, to strongarm unions into contracts, that probably won't have longterm value.

Who is advising this guy?

 

[SoCalAznGuy]

That ruling is currently at a higher court and will have a decision soon. Arnold should have waited until the court posted its decision. Very rash of him to make this order and risk millions of dollars in lawsuits. Arnold is saying those with tentative union contracts will get paid their full wages and only those who wont agree to his terms will receive the minimum wage. That law states that minimum wage may be paid if there is no appropriation. Either everyone gets the minimum wage or nobody does. Arnold cant pick and choose who the law will apply to. It has nothing to do with the state not having the money, they do they just havent appropriated it yet. It has everything to do with Arnold using this as a weapon to financially hurt and therefore force those employees to agree to his terms.

Incorrect, the case which says the stateworkers cannot be paid their full wages without a budget has already gone to the supreme court of california, and they have already ruled. That was in 2003 when the state was sued. The current case isn't if it is legal for stateworkers to be paid minimum wage, but if the comptroller has the capability to pay them a minimum wage under the current technology used by the state for payroll.

 

[SoCalAznGuy]

Those "tentative" contracts don't mean diddly until the union members vote and the legislature acts on those contracts correct?

It becomes clear to me that negotiating union contracts under the threat of minimum wage is the real issue here. It is not a California cashflow problem. And I don't think that contracts negotiated in such a hostile environment, absent a "good faith" deal, will stand in a court of law.

Those unions can probably take these "tentative" contracts to a judge and get them thrown out...after Arnold is gone.

So Arnold has exposed the State of Calfornia to hundreds of lawsuits, possibly costing taxpayers millions, to strongarm unions into contracts, that probably won't have longterm value.

Who is advising this guy?

While I don't like it, the supreme court of california has already ruled that arnold is mandated to do what he is doing.

 

[piasabird]

So Schwarzenegger is a state employee, did he cut his own pay? If not I would contest the order on grounds of equal employment opportunity.

Maybe they should all call in sick. After a couple of days with no police, firemen, and other office employees things might start to look kind of bad.

They should write the pay agreements with a special clause in it for minimum wage.

This might cause some people to have a house foreclosure. Just lay people off for 2 months so they can get unemployment. Many factories have planned shutdowns in the summer. If they are layed off you dont have to pay their benefits. Of course Cobra and other special clauses might kick in. The Insurance and other benefits might be more than their pay.

Can you say strike?