Public unions sue to block voter-approved pension cuts
After taking it on the chin at the ballot box, unions take their beef to court
- Duration 8:42
- Date Jun 9, 2012
After taking it on the chin at the ballot box, unions take their beef to court
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From the ballot box to the jury box everybody and you can and I went box on top of unions take it on the chin.
Now taking their case to court in San Jose California public worker unions filing.
Several lawsuits have to voters there overwhelmingly approved cutting their benefits the pension costs in San Jose alone.
More than tripling to nearly a quarter of a billion dollars in the last decade allow.
And taxpayers and stuck with the bill.
So you following this essentially that means unions are basically so.
For taxpayers to pay more.
So that they can make Sean tells -- Dana McDowell along with Adam Lashinsky and Charlie Gasparino Charles Payne.
-- -- Well -- in the unions are losing now big time in -- court of public opinion they've -- to the other court to try to rectify that think they're making a gigantic mistake in San Jose.
These pensions are up almost 200% above inflation we get it department you run into the building -- -- -- -- everyone's running out police think you're the bad guys.
Teachers help us raise my kids but at some point these so called public servants.
Have to listen to the will of the people all its gonna draw a lot of reasonable reasonable compensation that's the bottom line I think they're making a bigger mistake.
I think the San Jose stood out because.
Largely democratic hit that town had a democratic mayor democratic mayor we talked to essentially -- and look I love these -- want to protect their pensions I wanna I wanna protect them.
But we got to ring these course incivility can.
Why why this is such at watershed potentially is because the people in San -- they voted to cut.
Benefits for current retirees.
If this goes ahead and the unions fear there's a great deal by the way we had another.
Big big vote down in San Diego the second and third largest cities in Cali in California.
It also cut benefits but for new hire the -- note if this goes ahead the you're gonna have.
Vote after vote after vote where the unions -- power and they lose benefits but I think these two -- in California.
Wore a -- -- victory for taxpayers everywhere.
But you know Ben -- look at I wanted to switch over to you because as our.
Near Los Angeles that the -- just today is saying much the same sort of thing right so what's going on here.
Well -- they're there's several things guy on me a -- -- that -- -- unions are basically saying look you cannot -- contract by about the -- we have a contract you cannot break at that there's good -- -- enforcement of a contract second thing is there's simply isn't enough money in the world to -- -- pentagon.
No allows firefighters believes prosecutors prison guards more than I do I love and worship them they're great great people.
But we just don't have the money and something's got to give him and he's got to have me these -- -- -- it's a very great chamber of something's gotta give.
So obviously gonna guess -- is much bigger.
Then Wisconsin right I mean I'm not crazy about prison guards to via the rest of -- -- -- but you know I wondered about that I.
I don't know.
Yeah earlier put -- out of family and that's that -- Spielberg and I don't know what I can go -- I think this is -- -- -- Wisconsin because in this it is the ground zero.
Of the public sector union movement right your California I I think of their two rounds -- -- would be new York and California and if California goes the way it was -- at least moves in that direction.
I mean this is a huge victory for taxes they can -- I mean it is.
It is a reason to buy stocks again and think that it is is a reason for hope.
-- on but.
Adam if you don't -- up.
Here's what I want to raise as you because I you know when when we were out in Wisconsin in the week.
In Madison particulates is say.
For some reason.
Fox might not be as popular as we are on the -- of the woods and having said that the cut that's one thing I believe from that is that they feel when you win your all of this we are all of this we are all of this.
And I figured it reminded me so many times that people work for companies and later went bankrupt they had a pension coming they swore to god they haven't -- -- -- it was the right.
And that reality was just like it was -- security in the early days when it had what thirty people putting in for everyone taken something out.
The math doesn't favorite -- we have to readjust the man.
Has that sunk in.
Book clearly and have been a place like the unions that the public sector unions in San Jose it it hasn't sunk in I think what we're seeing here for small I don't think -- so hopeful Charlie we're beginning to attack.
-- giant problem but it's really just the beginning pulled out and what we're saying the early lead -- example where -- -- with a good thing well.
That's a great golf courses are good -- and a whole -- whole -- but I think you're not.
I've got a lot of work left to be done but we're seeing it would seem to really important are are interesting things going on democracy.
And the rule of law right so -- put his put his finger right I mean we as a country we have cities and states and his -- we screwed up.
We let this thing get way out of control it would meaning well as as Charles pointed out it got completely out of whack who wrote -- familiar -- perspective -- -- it's coming -- and it's about power and money it's about money it's about benefits they have contracts I think we should expect them to.
Who is able to protect -- -- okay isn't it really about liberalism I mean the growth of -- -- not know that the now state.
The notion that element is gonna take care of you from cradle to grave.
If you work -- if you work for if your public servant he -- like a gold plated and pension fund.
I mean it is really all about liberalism and it's the very if the notion that liberalism is is not sustainable.
If you're younger you are the world -- it's not it's not -- -- -- it's not working in York and it's not working in in California which is the second coming of your.
I I wanna I wanna go back to that topic though Adams alluding to been brought up in big it was the first to bring up with respect to the contract.
Unions didn't mind when the contract the General Motors -- the bondholders was being broken.
When when when when it because the benefited them so Ed that's the new game plan of that's OK then it moves okay this -- the bondholders.
Mostly senior citizens who put their money in -- for retirement as an investment if it was okay this -- them to bail out unions unions have to live by the same principles.
A child like Charles with great respect people always want employers got -- that are good for then that's not -- -- and -- -- -- -- We line bush got a big -- and not a Portland's they're bad -- that symbol Iraq.
But don't rely just on another zero point two buried and it is annoying to have a -- that a little -- that it's.
That's at the beginning.
Didn't that court a public opinion is turning against unions these -- the two most aggressive pension reforms and basically union reforms that we've seen.
And there was a thumbs up from the voters in San Diego and -- and -- -- -- -- in this -- Digg and it was like and I heard this even when we were doing -- the static or you're taking firefighters pensions away and police and spends away.
Now you're you're asking to kick in a little bit more.
On -- and that it would still be.
Much less than what private workers have to -- And this would extend health care benefits at all so nothing is being taken away.
But -- it is always framed that way that makes solving the problem what stuff.
-- done well but at the fact that the voters approve this and San Jose that there touching.
Don't the benefits of current workers.
That is where all lot of these cities and it need to go they don't need to go there and get back if the voters said.
We're doing this we're tired of it might not -- -- -- friends great.
-- your political point earlier -- about Democrats.
If you're Andrew Cuomo in New York if you're anyone of these other governors and mayors of the democratic mayor of LA you're looking at doing is Scott Walker and his victory.
Gave you tremendous cover.
Absolutely and at the end of the day we do like them to to solve our problems and this is the biggest problem state to -- the voting demographic in new York and California is it's -- point is much more difficult the public sector unions comprise a lot of voters in absolutely absolutely it's going to be hard to.
But you know the very -- that -- -- -- that there it's.
California good now rice is a lot channel one vote and our I was gonna make -- I was doing hands then you know clapping and -- I was very of that I was very hopeful.
It's good let's see how -- -- I mean really this is California talk about.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Let's get to have gone as far as I'm really wanted for students are what is.