Wisconsin enacts union curbs, rescinds layoffs

MADISON, Wis,  (Reuters) – Wisconsin’s governor  signed into law yesterday sweeping limits on collective  bargaining rights for public sector workers that have ignited a  national debate over unions as other states weigh similar  curbs.

In a setback for U.S. organized labor and its Democratic  allies, Republican Governor Scott Walker signed the measure  passed by the legislature this week that eliminates most  bargaining rights for many state government workers and  increases their contributions for pensions and healthcare.

In the three weeks since Wisconsin took up the issue, large  protests in Madison and other state capitals signal grass-roots  support for collective bargaining rights and for unions,  analysts say.

Walker said the law was aimed at protecting taxpayers and  jobs, arguing it will improve the business climate and help the  state’s private sector create 250,000 jobs. He has said the  state needs the restrictions on bargaining to deal with funding  shortfalls as the state contends with a $3.6 billion deficit in  the upcoming two-year budget.

With the signing, Walker canceled layoff notices he sent  last week to Wisconsin public sector unions.

“While tough budget choices certainly still lie ahead, both  state and local units of government will not have to do any  mass layoffs or direct service reductions because of the  reforms contained in the budget repair bill,” Walker said in a  statement.

To avoid conflicts with their employees, some local  governments are rushing to reach contracts with unionized labor  to beat the restrictions on bargaining, which take effect when  the law is published.

Lawmakers in other states pressed ahead with their own  plans to curb the rights of public employee unions.

Legislators in the Iowa House passed a Republican bill that  would limit collective bargaining by public sector workers and  require them to pay $100 a month toward their healthcare. It  also would prevent bargaining on healthcare benefits for  government workers and forbid them from negotiating over layoff  schedules.

The bill’s prospects of becoming state law are bleak.  Democrats, who have the majority in the Iowa Senate, said they  have no intention of considering the measure.