GOP’s Corporate Backers Intent on Busting Unions, Not Solving Budget Problems

In both Wisconsin and Ohio, Republican governors are attempting to rush through legislation that would devastate workers’ rights that would in reality do little to help close their states’ budget shortfalls. Behind their proposals to strip public employees of their collective bargaining rights is actually a political power play to diminish the voice of organized labor in American politics, a move sponsored by corporate interest groups.

Wisconsin Governor Scott Walker’s desire to eliminate collective bargaining has more to do with political baiting than sound fiscal policy.

For example, Walker specifically exempts the four public employee unions that endorsed his gubernatorial bid in his plan to eliminate collective bargaining. Labor law professor Paul Secunda of Marquette University called it “the worst type of favoritism there could be.” And despite his claim to be a fiscal hawk, the Governor pushed through costly corporate giveaways that jeopardized the state’s balanced budget and rejected a Republican’s compromise bill that would permit only a temporary curb on collective bargaining while preserve unions’ financial concessions.

History shows that states that stripped their public employees’ collective bargaining rights did nothing to solve their fiscal problems. Policy Matters Ohio notes that while Indiana, Kentucky, and Missouri recently eliminated public workers’ bargaining rights, “the budget shortfalls of these states in 2010 ranged from 10.6 percent of general revenue fund (Indiana) to 14.5 percent (Kentucky) to 22.7 percent (Missouri), mirroring the fiscal crisis of states across the nation.”

Rather than solve the budget problems, doing away with a key right of workers only advances the agenda of the corporate interests funding Republican campaigns.

Jonathan Salant of Bloomberg looked into the ties between virulently anti-labor corporations like Koch Industries and Wal-Mart and the radical GOP proposals in Wisconsin and Ohio:

Koch, a closely held energy and chemical company based in Wichita, Kansas, is controlled by the billionaire brothers David and Charles Koch. Along with other corporations, Koch Industries has often opposed organized labor on regulation and free trade, Holman said. Now they see a chance to cripple unions in the name of balancing budgets, he said.

The $1.2 million in Koch support for Republican governors includes $1.1 million given to the Republican Governors Association, which spent more than $3.4 million in support of Walker, according to Common Cause, a Washington-based advocacy group that opposes the governor’s proposal.

In addition, Koch gave $43,000 directly to Walker, his single largest corporate source; $11,000 to the Wisconsin Republican party; $22,000 to Kasich; and $34,000 to the Ohio Republicans.

Koch also supported the 2008 campaign of Indiana’s Daniels, according to the National Institute on Money in State Politics. The Republican Governors Association, which received $25,000 from Koch, was the biggest source of campaign cash for Daniels, institute records show.

In addition, Americans for Prosperity spent $1.2 million in support of Republican candidates for Congress last year, Federal Election Commission records show. Koch Industries’ federal political action committee contributed $1.3 million to candidates for the 2010 elections, 90 percent of it to Republicans, according to the Center for Responsive Politics.

Wal-Mart Stores Inc., the Bentonville, Arkansas, subject of a campaign by the United Food and Commercial Workers Union, also contributed to the campaigns of Walker and Daniels, and donated more than $340,000 to the Republican Governors Association for the 2010 elections, according to the Internal Revenue Service and the National Institute on Money in State Politics.
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