The Unions’ Guy
In effect, the Obama administration insists that some of the federal money given to the states is meant to go directly to unionized public sector workers in California:
The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.
Schwarzenegger’s office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.
The state lowered the maximum hourly wage of members of the Service Employees International Union from $12.10 to $10.10, and the SEIU picked up the Obamaphone.