MercoPress. South Atlantic News Agency

Wisconsin limits collective bargaining rights for public sector workers

Republican Governor Scott Walker victory in Wisconsin is considered a milestone change in labour relations

US state of Wisconsin's governor signed into law 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 US organized labour 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 USD deficit in the upcoming two-year budget.

With the signing, Walker cancelled 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 labour 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 USD 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.