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The Fight Over Public Sector Pensions

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    Former Michigan Governor Jennifer Granholm discusses the need to cut public sector pensions.

  • Duration 5:54
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-- -- well Jennifer -- home was a governor of Michigan during a rough eight years for that state beginning in 2003.

Which you took -- the unemployment rate was six point 6%.

And it was ten point 7% when she left office at the beginning of this year it's now about ten point 3%.

Covered under the GOP governor Snyder.

And she was a strong proponent of the auto industry bailouts and -- -- now.

From Lansing Michigan are governor first wanna ask you about this situation Steve Sweeney isn't very difficult position.

Is a former labour leader he is a Democrat and he's being called a Nazi by the by the public and private sector unions.

I'm not sure what New Jersey situation is obviously things are very toxic but I can tell you in Michigan.

As governor of the state could have the most challenged economy in this past decade because of the loss of manufacturing jobs in the global shift in those kind of jobs I'm in Michigan at seven times more auto manufacturing and other states -- we -- hit.

Seven times harder and therefore our revenues to the state really plummeted.

And we I cut as governor a greater percentage out of Michigan's the size of government the size of the budget.

Than any state in the country by far and a lot of that was in partnership with our unions we negotiated huge concessions -- kind of you know raise my eyes when I hear that some of these governors are asking for a 5% contribution or something like that I -- we negotiated.

For new employees 20% contribution to being health -- none of our I mean our state employees don't even have a defined benefit plan they're on a defined contribution plans so.

We we we were sort of the canary in the coal mine for a lot of this but we did it in partnership with the union had -- say this all the.

Have a literally just copy of that a lot of this I mean obviously you that you had -- very tough time they're being in Michigan with the auto industry etc.

despite the bailouts.

It was hit hard manufacturing went way down.

But do you think that now given the circumstances right now you would have the same kind of what you did back then and getting the concessions.

I I think that the public sector unions understand in -- for example did you think they understand they're calling they're calling fellow Democrats are -- she's in New Jersey and -- -- -- -- in Michigan it was the case and in the UAW represents both public and private workers workers and what the private sector unions were doing.

We're offering tiered benefits so we borrowed a page from what they were doing in the private sector for.

Our public sector employees it's difficult to be union leader and have two sides of the equation when the public sectors treated differently than the private sector so they really -- They are different are they not.

I mean -- case management is a private sector employer in another case management are taxpayers don't taxpayers have more rights to get concessions from public sector unions and management the private sector.

Well I think both sides are dealing with a very difficult circumstance and everybody understands that there has to be sure you're not answering the question is there a difference between we Republicans -- have.

Up Republican -- -- there is a difference because the employer is different in in the public sector you are.

Not in it to make a profit in the private sector you are well -- taxpayers have -- that management doesn't have when it comes to dealing with units we have right says taxpayers do we not -- -- that private sector management does it.

I mean the taxpayers certainly.

Are paying the bill and so they want to make sure you live within your means there's no question about that I'm not arguing with you on that.

All I'm saying is that when you have a union that represents both public sector and private sector employees.

There's an understanding and an appreciation for the fact that the private sector may have sacrificed.

The public sector has to to.

Yeah but I'm unfortunately a lot of states there haven't talked at what advice I mean I know you don't know all the circumstance -- Jersey.

A but clearly they are having problems when when fellow Democrats and fellow labor leaders are called Nazis.

By these guys in the public sector at all by the AFL CIO what advice would you give them power can -- these guys to come to the table.

You know I mean I -- of the executive there has not been so friendly right that in executive of the state well it's similar to try to get he's he's trying to be one ended the negotiating speed you know.

This other -- a Democrat he's been as friendly as you can baby and he when he caught -- -- what what I'm saying is that sometimes if you.

Everybody lays the transparent facts on the table and you ask the unions to come to you with savings and -- you -- have to be -- you have to negotiate our believe me.

I'm Kelly I got more concessions out of negotiating.

At the table in a fair manner in fact the unions brought a billion dollars worth of savings that we hadn't identified.

To the table so you wise currently you know why is Cuomo getting that concessions and -- not I think you have to not just.

Stinnett it's a Democrat if its two other Democrats ahead of the senate and the head of the legislative they are Democrats and -- one case mr.

Sweeney we just start do was a labour leader a former.

You know I -- governor Christie we're talking about.

If it's the executive that negotiate -- it's it's ahead of the executive branch that negotiates with the labor unions they just passed a budget that is.

You know that -- corresponds to whenever that executive team presented.

All I'm saying is told matters your employees matter and if you we wouldn't see in the private sector these CEOs publicly castigating their employees.

In the same way that you are seeing that CEOs of these public sector entities castigating their employees -- it's actually strategy.

But Steve Sweeney is not doing I was telling us for this guy because he's a decent guy yeah doesn't nobody deserves to be called a Nazi not even -- -- somebody from the other party is -- this -- -- -- -- but -- is that there's a -- -- workers a former union leader is a Democrat.

We don't have a disagreement on that and all right.

Good to see how that got one final word you just wanna get one final word and go ahead.

No no I appreciate having me on and I I just think that you can catch more flies with honey than vinegar sometimes Jennifer grant home thank you very much for being here appreciate please --

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