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PRITZKER’S AFSCME DEAL FAVORS WEALTHY WORKERS OVER MIDDLE CLASS

Illinois Policy Institute/ Mailee Smith

AFSCME Council 31 recently told its members to push the Illinois General Assembly for tax rates that are “fair” for the middle class. But AFSCME’s new contract should cause its middle-class members to question whether the union holds itself to the same standard.

Illinois Gov. J.B. Pritzker just agreed to a new contract for state employees represented by American Federation of State, County and Municipal Employees Council 31. Voting to ratify the contract ends June 21.

But by logic employed by AFSCME Council 31 during the recent fight over an Illinois progressive tax amendment, some of the contract’s most costly provisions aren’t fair to middle-class members. The group that wants to “soak the rich” is making its rich employees richer, and adding costs at a higher rate for its middle-class members.

For example, increases to base salary are provided at a flat rate:

  • 5% on January 1, 2020

  • 1% on July 1, 2020

  • 95% on July 1, 2021

  • 95% on July 1, 2022.

But that type of flat rate structure means members with higher salaries will see more lucrative raises than those who make less.

Compare, for example, a physician specialist in the Department of Human Services making $147,360 a year, versus a correctional officer in the Department of Corrections making just $48,432 a year.

Between Jan. 1, 2020, and July 1, 2022, the physician will see his or her base salary rise by over $17,600. On the other hand, the corrections officer will see his or her base salary rise by just over $5,800 during the same time. Both workers will also reportedly receive the same one-time bonus of $2,500 under the contract.
 


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Earlier this year, AFSCME Council 31 backed a constitutional amendment that will place a progressive tax amendment on the ballot in 2020. If approved by voters, it would abolish the current flat tax rate structure in Illinois. The union told its members that a progressive income tax amendment would “make rich people pay their fair share, while giving working people a break.”


Yet the union doesn’t show the same concern for giving its lower-paid members a “break.”

AFSCME’s prioritization of its wealthier members isn’t limited to raises.

Under the new contract, the lowest-paid members will pay a greater percentage of their salary toward health insurance contributions than do its wealthier members.

For example, a member making $30,200 a year will pay $67 a month – or $804 a year – for health insurance under a Blue Advantage HMO. This amounts to 2.7% of the worker’s annual salary. A member making over $125,000 a year pays $226 a month – or $2,712 a year – for the same insurance, which is 2.2% of that worker’s salary.

In other words, those making less will pay a greater percentage of their income for health insurance.

This type of structure is in place for each of the plans offered.

While AFSCME is framing the contract as a win for workers, it doesn’t seem AFSCME is living by the same “fairness” principles it demands others follow.

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