{"id":664561,"date":"2010-02-15T01:13:00","date_gmt":"2010-02-15T06:13:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/even-as-la-teeters-on-the-brink-of-insolvency-unions-still-oppose-a-5-pay-cut-2010-2"},"modified":"2026-10-04T10:35:05","modified_gmt":"2026-10-04T14:35:05","slug":"by-opposing-just-a-5-pay-cut-l-a-s-union-hardliners-show-why-california-is-doomed","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/664561","title":{"rendered":"By Opposing Just A 5% Pay Cut, L.A.&#8217;s Union Hardliners Show Why California Is Doomed"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"float_right\" src=\"https:\/\/i0.wp.com\/static.businessinsider.com\/image\/f17a6c793f2d664aba8d7100-400-\/arnold-schwarzenegger-knife.jpg?w=400\" border=\"0\" alt=\"arnold schwarzenegger knife\"  \/><\/p>\n<p>While the city of L.A. reels from a gaping $212 million budget hole, unionized city employees still aren&#8217;t willing to be exposed to the economic reality that most other Americans are subject to.<\/p>\n<p>This is why California is in deep trouble:<\/p>\n<p><a href=\"http:\/\/www.reuters.com\/article\/idUSTRE61D2BP20100214\">Reuters:<\/a><\/p>\n<p style=\"padding-left: 30px;\">The crisis has put Villaraigosa, <strong>a former labor activist, squarely at odds with unions<\/strong> that represent 98 percent of L.A.&#8217;s municipal work force, which in turn accounts for 80 percent of the city budget.<\/p>\n<p style=\"padding-left: 30px;\">Villaraigosa said last week he will propose the elimination of 1,200 to 2,000 city government jobs in next year&#8217;s budget, on top of 1,000 positions the mayor last week ordered to be cut over the next few months.<\/p>\n<p style=\"padding-left: 30px;\">He also has suggested that large layoffs could be avoided if the unions were willing to accept pay cuts.<\/p>\n<p style=\"padding-left: 30px;\"><strong>&#8220;If everybody took a 5 percent cut, it would add $150 million to the general fund,&#8221; the mayor said on Thursday at an event sponsored by the local business leaders.  Union officials have bristled at those proposals.<\/strong><\/p>\n<p style=\"padding-left: 30px;\">&#8220;We find it ironic that at the same time Congress is debating a jobs bill, the mayor of one of the largest cities in the country is talking about laying off 3,000 people,&#8221; said Barbara Maynard, spokeswoman for the Coalition of L.A. City Unions. &#8220;The last thing Los Angeles or any city needs is to have more people on the unemployment line.&#8221;<\/p>\n<p>The last thing the city needs is to keep paying massive expenses it can&#8217;t afford. It&#8217;s not fair to call any financial arrangement a &#8216;job&#8217; if your employer A) doesn&#8217;t want to pay you and B) by paying you, moves one step closer to bankruptcy. Thus these unions aren&#8217;t protecting jobs in the economically-productive sense. They&#8217;re simply protecting their little walled handout fortress blind to the fact that its foundation can&#8217;t support their weight.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/even-as-la-teeters-on-the-brink-of-insolvency-unions-still-oppose-a-5-pay-cut-2010-2#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/how-the-heck-do-you-spend-38-trillion-2010-2\">How The %&amp;$! Do You Spend $3.8 Trillion?<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimco-gets-ahead-of-the-next-credit-crisis-2010-2\">PIMCO Goes Short The Entire Developed World<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/credit-suisse-usa-now-more-likely-to-default-on-its-debt-than-kazakhstan-2010-2\">Credit Suisse: America Now Has More Sovereign Risk Than Kazakhstan<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/tQtzaCq6Qrw\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While the city of L.A. reels from a gaping $212 million budget hole, unionized city employees still aren&#8217;t willing to be exposed to the economic reality that most other Americans are subject to. This is why California is in deep trouble: Reuters: The crisis has put Villaraigosa, a former labor activist, squarely at odds with [&hellip;]<\/p>\n","protected":false},"author":288,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-664561","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2MSJ","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/664561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/288"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=664561"}],"version-history":[{"count":1,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/664561\/revisions"}],"predecessor-version":[{"id":765786,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/664561\/revisions\/765786"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=664561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=664561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=664561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}