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NJ Unions to Challenge Benefit Cuts

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    Hoover Institute Senior Fellow Terry Moe on reforming unions.

  • Duration 3:52
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Since taking office New Jersey governor Chris Christie has gone after the unions trying to right the state financially.

But now those unions are fighting back most of new Jersey's public unions are expected to file -- lawsuit challenging cuts to union pension.

-- and health care benefits.

In -- -- with more is Terry senior fellow at the Hoover institution and author of the book special and -- Terry thank you so much for being here.

It did the money really or the money not being there really dictate this one and or do they have a chance in core.

Well they always have a chance in court because.

Pensions are promises.

Two workers for future benefits.

So that's not part of the reason why so many of these reforms.

That have been enacted in the states over the last couple years may be eighteen states are so have moved in that direction.

Have just sort of -- -- that the problem around the edges by focusing on new employees rather than active employees.

What Terry does that mean though that.

In your mind.

That these giant holes debt just in New Jersey for example before they -- these changes were enacted I think -- was over sixty billion dollar odd.

Close to seventy billion dollar -- just.

For future health care obligations.

Are you saying if these states hadn't come -- year to really tackling the problem.

If they really haven't and the problem has been there for a very long time and it's really the sort of built into.

Our democratic process which doesn't work the way we'd like it to work.

Mean public sector unions are extraordinarily.

Powerful.

And when they.

Bargain.

For wages and benefits their bargaining with elected to public officials and these unions are.

Really powerful one active in elections and they can.

Sometimes even select.

The public officials there in effect going to be bargaining right.

What -- at the very least we can then take on what can they take money today and give it to the candidates and in the candidates in return make promises.

They will have to be paid when the candidate and then the elected official won't be an office -- you probably in some instances He probably be dead.

Or she.

But to that point.

Do you are there are the Democrats that have been siding with the unions for so long do you see him turning against the -- the tickling.

We talk about teachers unions.

-- -- from basically the Democrats from our heavily dependent on the teachers' unions the teachers unions are.

Huge our contributors to democratic campaigns there corps members.

The democratic.

Coalition.

And the many Democrats are afraid of crossing the teachers unions.

Now what's happening in recent years is that there is a ferment within the Democratic Party where.

Certain high profile Democrats have stood up.

From.

And said look -- we just can't do this anymore and -- the Democrats are our excuse me that the unions are making it very difficult for us to really.

-- Push for the kinds of reforms that disadvantaged kids and urban areas need.

And so we need to break away.

From the teachers unions if we can't but that's more easily said than done while there -- small group of the is a high profile Democrats people like Cory Booker.

In in new work on Joel Klein in New York City it's on.

The fact is that most Democrats are still -- in the unions camp.

And this makes it very difficult to enact really big reforms carry is great to see you thank you so much for joining us today -- not take care.

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