New Jersey: Rank 47
Pension Liability - Total $134.9 billion6 - Per household $2,4751
Union Membership Density:
- Total-17.1%
- Private Sector-9.0%
- Public Sector-59.0%
Right to Work:
- Forced unionism
Government Sector Collective Bargaining Laws:
- Police/Fire:New Jersey Employer-Employee Relations Act (§§ 34:13A-14 to 34:13A-21)
- State: New Jersey Employer-Employee Relations Act
- Education: New Jersey Employer-Employee Relations Act (§§ 34:13A-1 to 34:13A-13)
- Municipal: New Jersey Employer-Employee Relations Act
Pending Government Sector Collective Bargaining Legislation:
- (Effective Jan. 1, 2012)
Paycheck Protection Law:
- No Provision
Secret Ballot Protection:
- No Provision
Forced Card Check:
Government Sector Binding Arbitration Provisions:
- State: No Provision
-
Police: Employee Relations Act Section 34:13A–16
- (Limits powers of arbitration, salary caps & random selection of mediators)
-
Fire: Employee Relations Act Section 34:13A–16
- (Limits powers of arbitration, salary caps & random selection of mediators)
- Teachers: No Provision
Public Access to Government Bargaining Sessions:
- N.J. Stat. Ann. § 10:4-12(b)(4) (Government can eliminate public access)
Encourage Project Labor Agreements:
Government Employee Strike Policy:
- State (Prohibited) New Jersey Statute Title 27 25-14
- Police (Prohibited) New Jersey Statute Title 27 25-14
- Fire (Prohibited) New Jersey Statute Title 27 25-14
- Teachers (Prohibited) New Jersey Statute Title 27 25-14
New Jersey’s Long Road Ahead
Taxpayers vs. Politicians and Unions
Americans for Prosperity Foundation, New Jersey
New Jersey: A State in Peril
For years, union officials in New Jerseyhave gotten politicians from both parties to give in to their incessant demands for lavish taxpayer-funded benefits. Today, New Jerseyhas the highest property taxes in the nation and the highest per-pupil school spending. This has resulted in the largest state in the nation and a massive budget deficit.
Many now support the effort to rein in public sector compensation. However,New Jerseystill has a long way to go on the road to fiscal sustainability and economic competitiveness.
New Jersey residents pay the highest property taxes in the nation—averaging $7,300 per homeowner. The state has the highest per-pupil spending at $17,600 per student. The unemployment rate is 9.1 percent and continues to exceed the national average. The state’s long-term debt is one of the highest in the country.
Government Unions and New Jersey
- The percentage of New Jerseyworkers represented by unions fell from 19.9 percent in 2009, to 17.7 percent in 2010
- Actual union membership was even lower—falling from 19.3 percent in 2009 to 17.1 percent in 2010
- New Jerseyhas the fifth-highest percentage of government sector union members
- 59 percent of government workers are union members
- 60.6 percent are covered by union contracts
The Pension Problem and Steps in the Right Direction
- New Jersey is currently saddled with over $110 billion in unfunded pension liabilities and health insurance costs
- If the state made its full annual contribution to all the pension systems total would be $3.5 billion or more than 10% of next year’s proposed budget
- New Jersey Pension Reform:
- Increased employee contribution rates to pension plans
- New members required to accrue 30 years of service at age 65 to qualify for early retirement
- Changes eliminate automatic annual Cost-of-Living Adjustments (COLAs) for current and future retirees
- Retirees no longer can ‘double dip’ (not allowed to receive full retirement benefits, while accruing another government pension)
No Secret Ballot in State Employee Union Organizing Elections
- In 2005, New Jersey government unions allowed to organize workers through card check elections
- Card Check elections circumvent the right to a private vote
- Leads to pressure tactics and even intimidation by union organizers
Interest Arbitration: When unelected bureaucrats rule and voters lose
- Over 30 years ago, the New Jersey State Legislature instituted interest arbitration to settle public safety labor contracts
-
- Results in collective bargaining negotiations being negotiated by unelected bureaucrats
- Translating into burdensome mandates and skyrocketing payroll costs for municipalities