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Wendy Greuel And Eric Garcetti Have The Same Position On Pensions; So What's This Fight About?

Categories: Politics
Wendy Greuel_Carpenters.jpg
Wendy Greuel and her union supporters
When Wendy Greuel got the endorsement of the L.A. County Federation of Labor, it was quickly chalked up to her objections to pension cuts. Since then, there has been talk that she wanted to renegotiate those cuts; or maybe she didn't.

The truth, however, is that Greuel and her opponent, Eric Garcetti, have essentially the same position on pensions. So what's this all actually about?

First, some background. Back in September, the City Council voted 14-0 to establish a new pension tier for new hires to save the city . The unions cried bloody murder, arguing -- with some justification -- that the city could not unilaterally impose pension cuts without going through collective bargaining. They threatened to sue.

Councilman Eric Garcetti -- who had been running for mayor for a year by then, and was keenly interested in union support -- sought to placate the unions. Joining with the two most pro-labor council members -- Paul Koretz and Richard Alarcon -- Garcetti pushed through a motion compelling the city to sit down with the unions to try to work things out.

"We need to continue to meet and look to find common ground and avoid litigation," Garcetti said at the time.

Those meetings took place, but no amount of sweet reason could persuade the unions to accept a dramatic reduction in benefits for new hires.

Greuel was city controller, and, rather conveniently, did not have to vote. Since then, she has steadfastly refused to say whether she would have voted yes or no on the measure. "It would not have been a yes or no question," Greuel said recently. "I would have suggested to my colleagues that the collective bargaining process be a part of it... I agree with pension reform, but I believe there should be collective bargaining."

It does not take a political scientist to figure out that, in all likelihood, Greuel would have voted for the pension rollback had she been on the city council at the time. If even Koretz and Alarcon voted for it, then Greuel almost certainly would have joined them. (Being intelligent people, the city's union leaders are aware of this.)

But being city controller meant not having to take a position. And that meant Greuel could go before a closed-door meeting of labor leaders last week and attack Garcetti for failing to do collective bargaining on the pension cuts.

Greuel mentioned pensions almost in passing, however. Her main point was that she would be "truthful and fair" with labor, while Garcetti would always be "saying one thing and doing another." Her secondary point was that Garcetti had attacked organized labor during his campaign, calling unions "special interests" and "baggage," and that she would never do that. "I'm gonna stand with labor, not stand up to labor," she memorably said.

Those issues -- not pensions -- were the key arguments she advanced in the labor meeting. And because the meeting was behind closed doors, it's safe to assume Greuel was being candid, not speaking in code or hiding her true agenda.

Greuel's shot at Garcetti on pensions was an opportunistic remark. It turns out that it does not reflect any deep-seated difference with Garcetti about the pension vote. If she truly did have a serious disagreement, then she would pledge to collectively bargain the issue once she becomes mayor. But she is not doing that. Instead, she vows only to sit down with labor in hopes of avoiding litigation -- exactly what Garcetti pledged to do last fall.

So if they have roughly the same position on pensions -- and the unions know this -- then why did they back Greuel? And why haven't union leaders criticized Greuel for supporting the substance of pension reform after getting labor's support? Listening to what union leaders say about it, it sounds like their real problem is that Garcetti vowed in 2011 that the unions had already given up enough. Then, he turned around in 2012 and broke that agreement and voted for additional pension reform. In other words, the concern is that he said one thing and did another.

That, of course, is not how Garcetti would prefer to frame the issue. For him, it's much better to argue that he lost the Federation's endorsement because he took a strong stand on pensions. Note that in the USC Price/L.A. Times poll in February, L.A. voters were asked which cuts they support to close the city budget deficit. Pensions were the top-ranked item -- much more popular than reducing services or laying off firefighters and cops. So it helps Garcetti to claim that he has suffered politically by supporting pension reform -- which is very popular with actual voters.

If you listen carefully, the two campaigns are not claiming to have major disagreements on the policy of pension reform. Both support it (except when Greuel is in a private meeting with labor bosses, anyway). There are some slight differences of emphasis, but on the policy they broadly agree. The difference they actually talk about is about each candidate's character, experience and ability to lead the way to get pension reform done.

The Garcetti campaign argues that Garcetti can get it done because he has already shown that he is capable of doing it. As he often puts it, he stood up when others (i.e. Greuel) didn't want to make the tough choices, and he delivered. The Greuel campaign argues, by contrast, that she has gained the endorsements of labor and business because they see her as an honest broker, and that she will get pension reform done because she (and not Garcetti) has gained their trust.

Garcetti could respond -- though he hasn't yet -- that Greuel won't follow through on pension reform out of loyalty to her labor supporters. If he does, Greuel could reasonably counter that Garcetti sought the very same support.

Whatever anyone thinks of those arguments, that is where the real contrast lies -- on character, experience, leadership ability and loyalty -- not on policy positions.

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7 comments
scottzwartz
scottzwartz topcommenter

Eric and Wendy want voters to talk about Unions for the same reason the gun manufactures want people to talk about the NRA -- it diverts the voters' attention from the real issue.  If we were talking about how much money gun manufacturers make each time there is a Newtown or Columbine massacre, voters might actually do something. Instead, we focus about the Second Amendment.

If Angelenos knew that the city was functionally bankrupt and the billions of dollars that went to real estate developers to destroy the city's tax base, then neither Garcetti or Greuel would be in the run off.

Unions are merely the scapegoat.  Investigative reporting would produce the amount of pension contributions which the city never made and who got that money instead. But the candidates prefer that no one look at the money -- but isn't the first thing any wise detective does is "Follow The Money"?  So, I ask, why isn't LA Weekly following the money?  We know that the LA Times is part of the problem and it will never be honest with the voters, but LA Weekly has a better track record.  If LA Weekly does not follow the money, no one will.

Do not look where the candidates want reporters to look, i.e. at the Union stuff, but where they do not want you to look.  The CRA/LA siphoned off over $1.5 BILLION incremental tax dollars while Garcetti was on the council.  LA Weekly should look at the interest rates that the city pays to places like Goldman Sachs; needlessly paying excessive interest can be viewed as embezzlement of tax dollars.  Strange how the same developers and bankers who get so many city tax dollars then support candidates for city council and major.

Let's look into the criminal violations of Penal Code 86 which makes the selling of council votes in return for other council votes a felony.  Over 99% of the time the council voted unanimously -- which can happened only with a pre-arranged vote selling scam.  In this way, each councilmember knows he/she can make deals with developers in his/her district and no matter how harmful the deal maybe, the entire council will support it.  Need I mention AEG or CIM Group?

FOLLOW THE MONEY!  If LA Weekly does follow the money, they will find that while Garcetti was cutting $200 Million from paramedics and firefighters, his city council was giving $52 M to billionaire Eli Broad for a parking garage.  

 If LA Weekly does some investigation, they will find out that Garcetti and Greuel knew since 2001 that the LAFD 911 system was grossly inadequate, and they knew since May 2005, that Angelenos were needlessly dying because the paramedics had such slow response times to life threatening emergencies.  In response to this dire situation, Garcetti took more money away from the paramedics and firemen.

As long as voters are focused on "the evil" union members, no one will pay any attention to the real foul deeds of Garcetti and Greuel.

abramsrl
abramsrl

@scottzwartz  http://bit.ly/105mtty  LA is not unique.  The problem is not the workers, their pensions nor even their unions.  The problem in LA and elsewhere are corrupt lawmakers who basically "stole" the pension contributions, but the media is too afraid to focus on the real issue, i.e. the years of corruption by people like Garcetti and Greuel which have brought the City to functional bankruptcy.

"The modus operandi was much the same in state after state: government officials underfunding or skimming retiree pension funds to meet other more immediate costs [gifts to developers]; financial officers papering over or hiding the extent of the funding shortfalls [Control Accounting Fraud]; and private financial managers exaggerating the return they could deliver on pension fund investments while often leaving the fund vulnerable to unexpected market swings [This type fraud is rampant in LA]."

Read more at http://www.thefiscaltimes.com/Articles/2013/03/22/Mismanaged-State-Pensions-Bill-Taxpayers-for-Shortfall.aspx#7DW8pfARczlqgmtU.99

David
David

While I've been very critical of the LA Weekly for printing right-wing agitprop disguised as news (e.g., Jill Stewart and Patrick Range McDonald), that absolutely is not the case with Gene Maddaus. This is a smart and accurate article -- fair, truthful, and informative. Well done.

xavier99
xavier99

Agreed.    "Mr. Maddus:  Damnn good article.  I really appreciate the subtleties and similarities you highlight. JOE VOTER"  

Maddaus - great to see  real journalism lives.

SFValley
SFValley

Biggest difference for me in this election is Wendy Greuel's recent pledge noted in this article:  "I'm gonna stand with labor, not stand up to labor," Enough said. 

jreichmann
jreichmann

@SFValley It's nice that you like the slogan, but it's meaningless.  Now that she's said she's tapping former Mayor Riordan to be her finance advisor, the unions will not be pleased since he is the ultimate pension reformer.  there's a reason her top field staff has just resigned.

joel
joel

Mr. Maddus:  Damnn good article.  I really appreciate the subtleties and similarities you highlight. JOE VOTER

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