Following the Minnesota legislature’s Subcommittee on Employee Relations decision to reject the state employee contracts for the American Federation of State, County and Municipal (AFSCME) Council 5 and Minnesota Association of Professional Employees (MAPE) unions, Sen. Scott Newman (R-Hutchinson) released the following statement:

“At the October 5, 2017 meeting of the Subcommittee on Employee Relations, I voted against ratification of the AFSCME and the MAPE public union contracts. I have received numerous requests to explain my vote – a request I believe to be entirely reasonable. My reasons are as follows:

“Minnesota Management and Budget (MMB), the state agency responsible for negotiating with the public unions on behalf of Minnesota, testified the proposed contracts provided a 2% and 2.25% cost of living adjustment in 2017 and 2018, respectively, for union employees at a time the cost of living rose only 1.8%. I do not think it is appropriate to provide a cost of living adjustment that exceeds the actual increase in the cost of living.

“MMB testified they intended to pay for the cost of living adjustment with a $123 million savings on health care premium costs. Because the State of Minnesota is self-insured, MMB was counting on a statistical savings of what Minnesota might save in health care costs over two years. Using a onetime possible savings to fund a permanent expenditure is not sound fiscal policy.

“MMB testified the contracts, as negotiated, fit within its budget. However, when I asked for the dollar amount of their actual budget, MMB representatives were unable – or unwilling – to provide a number.

“I believe the process for finalizing public employment contracts in Minnesota is seriously flawed. MMB negotiates, and subsequently implements, these contracts by July 1 of a biennium. However, the legislature is not in session to ratify the contracts, as required by law, until the following year. I believe this is a horrible business model. I simply cannot imagine any private business operating in this manner and do not believe the State should either.

“Taking into consideration paid time off, such as vacation, sick time, parenting leave, holidays, and days off for training or self-improvement, the contracts called for almost two months in paid time off for the average union employee. As such, I would be interested in a conversation of whether requiring an employee to work ten out of 12 months is reasonable.

“There are many who do not agree with my reasoning – particularly those members of the AFSCME and MAPE public unions. I value Minnesota’s public employees and sincerely appreciate their service on behalf of our state. However, I also value the millions of Minnesotans in the private sector whose taxes pay for these contracts. Therefore, fiscal responsibility is my paramount concern when deciding how to cast my vote.”

Sen. Newman is in his third term representing Senate District 18, which includes communities in McLeod, Meeker, Sibley, and Wright counties. He also serves as chair of the Senate Transportation Finance and Policy Committee.