Pension Showdown Pits Public Employees Against Politicians in New Jersey

Thousands of New Jersey schoolchildren got an unexpected holiday December 11, as teachers joined with firefighters and other public employees in a massive rally at the statehouse in Trenton. More than 20,000 workers descended on the capitol building to protest looming changes to the state pension and health benefits system.

“I’m not about to go backwards,” said Debbie DiColo, an elementary school teacher in the West Windsor-Plainsboro district. “Why haven’t they looked at expanding our benefits package rather than cutting it?”

DiColo continued, “The real issue isn’t our benefits package. It’s the insurance companies that are making a bundle off our benefits package. They’re one of the biggest businesses in New Jersey.”

SHOWDOWN WITH LEGISLATURE

The showdown between the state’s top politicians and public sector unions started in July, when state leaders promised to cut New Jersey’s property taxes, the highest in the country, by the end of the year. In mid-November the legislature released its reform proposals. These included pension and health benefit cuts for future employees, increased premiums for retiree healthcare, and spending caps on local school aid.

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These developments cast a shadow over contract talks for members of Communications Workers Local 1037, which represents New Jersey state workers. Said Local 1037 President Hetty Rosenstein, “This bill totally undermines our negotiations. First they create this baloney approach that somehow our benefits are the cause of the high property taxes in the state. Now they are holding a gun to our head during negotiations.”

Rosenstein continued, “What’s worse, this bill affects everyone. They don’t even give firefighters and teachers a chance to negotiate.”

Alex DeVicaris, head of the North Burlington Teachers Association, agreed: “People are livid. We work hard to get a contract that the board and the teachers can work with. Now they are just going to take that out of our hands. You are talking about turning the clock back 30 years.”

Legislators responded to this outcry with a hastily crafted compromise bill that eliminated the most onerous pension and health care changes.

For Rosenstein, the situation is clear: “We had 20,000 people in Trenton two days ago, and whatever is out of that bill is out because of us.”