S.F. budget deficit 'crisis': Pretext to attack unions

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... but a member of the union negotiating committee disagrees with the proposals. S.F. mayor Art Agnos tells union members they have to 'bite the bullet' to solve budget crisis...

San Francisco city-workers unions are being attacked by their purported "friend," newly-elected Mayor Art Agnos. One month after taking office, Democrat Agnos announced that the city faces a $172million budget deficit in the 1988-1989 fiscal year.

The deficit, described as the worst budget crisis in San Francisco's history, is being used to launch an attack on the living standards of all local working people. Those specifically targetted are San Francisco's 26,000 city workers.

Agnos, who was elected on a promise to "make the city affordable for working people," is leading this attack.

His proposals for balancing the budget are Draconian. They include: a minimum of 2500 layoffs for city workers, a wage freeze, a shorter workweek with a commensurate loss in pay, forced early retirements, and cutbacks in all cityservices departments.

His "affordable" ideas for generating new revenues for the city include: raising MUNI (bus) fares from 75 cents to one dollar, increasing the toll on the Golden Gate Bridge to $5, and charging higher entrance fees for the zoo, swimming pools, and other facilities.

How has all this come to pass in a city that only two years ago bragged about a $152-million budget surplus? Agnos has a ready-made answer: he blames the workers. He says that the city's income has decreased because of lower property-tax revenues and cutbacks in federal subsidies combined with the increase in the number of city workers and their higher wages.

Agnos added that one item contributing to the crisis is a $40-million settlement won by the unions against the city because they underpaid years.

Big business's proposals

The corporations certainly have their proposals for trimming the deficit. And their starting point is identical to that of Mayor Agnos. As BankAmerica Corp. Chairman A.W. (Tom) Clausen stated in a San Francisco Chronicle survey, "Business should not receive the brunt of covering the deficit gap."

Clausen added that what is essential is the creation of "a business climate to attract new businesses, as well as keep the ones that are here." This is the traditional capitalist code language for "get rid of the unions."

Some of the other "enlightened" proposals advanced by the ruling rich include:

• Rescinding a comparable-worth agreement for women and minority city workers.

• Eliminating many MUNI bus routes.

• Stopping the practice of paying workers for accumulated sickness and vacation benefits when they retire.

• Removing the city's pension costs from the operating budget.

• Raising property taxes.

• Increasing the local sales tax.

Conspicuously absent from all these proposals, of course, is the idea of taxing the rich minority to pay for the human needs of the working majority. workers Consequently, in a city with over 6000 homeless persons haunting the streets, a spreading AIDS crisis that is second only to New York City's, and some of the highest apartment rents in the nation, working people are faced with a further erosion of already deteriorating living conditions.

Response of the The response of the leadership of the city-workers unions, which include Service Employees International Union (SEIU) locals 790, 660, and 535 and Hospital Workers Local 250, has been less than inspiring.

Agnos, endorsed in the election by these unions, has sought the union bureaucracy's collaboration in the austerity drive. Because the bureaucrats are politically tied to his coattails, Agnos knows they will be reluctant to attack him. And so far, he's been right.

Paul Varacalli, executive director of Local 790 lauded the mayor, stating that "no other mayor has asked labor to come in and give advice." He said that the budget summit meetings with the mayor mean that "we want to be a cooperating partner."

In early March, Agnos was invited to present his proposals to a mass union meeting of all SEIU locals. Over 600 union members (the majority of whom were women and minorities) listened with Joe Avan Socianst licion Don't make workers The deterioration of social vices in the cities is a national problem that requires a national response. But a beginning could be made in San Francisco.

A campaign against the impending cutbacks can only be implemented If the unions decide to break with Agnos. Relying on the Democrats means that the labor movement will have to swallow the takeaways without a fight.

The labor movement must begin to flex its muscles by organizing a political fight-based on mobilizing its membership.

The unions must formulate a program that challenges and opposes the idea of putting the burden for taxation and cutbacks on workers.

Labor's demands and strategy should include: • Tax the rich, not workers! • A moratorium on the $100 million in interest payments to S.F. banks. • Run independent labor candidates in the elections!

irritation and fear written on their faces, as Agnos proposed layoffs, wage freezes, and forced early retirements.

When he mentioned that he would ask big business to make their "fair share" of sacrifice, a moan punctuated by the word "Bullshit!" rose from the audience. Whereas his entrance to the union meeting was greeted with friendly applause, his exit was ushered by a chorus of boos.

On March 21, the mayor and the S.F. Board of Supervisors voted ten to one to put the wage-freeze proposals on the June ballot. The unions, rebuffed by their so-called "friends" in the Democratic Party, are now fighting for their lives.

A phony issue The "budget crisis" is being used by the employers and their bipartisan representatives in City Hall as a pretext to attack the unions, thereby driving down the living standards of all Bay Area workers.

In the last analysis, Agnos wants to force the older, more union-conscious, and higher pay-scale city workers into early retirement. This will set the stage for two-tier agreements for new hires, less benefits, and more part-time workers. In this respect, the city bosses are no different from any other employer-they want to drive down their labor costs.

If the unions are to defeat this attack, they will have to reach out to all working people in San Francisco—who are being asked to foot the bill for the so-called budget crisis. If not, they will find themselves defeated by a ballot initiative that will cut their throats. After all, how many times do you have to be punched in the nose before you realize you're in a fight?

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pay for the rulers' 'budget crisis!