Tense Times at the Table for Malloy and Unions

State employee unions spent hundreds of thousands of dollars last year to elect Gov. Dannel P. Malloy. Now, they must decide if it is worth $1 billion in concessions to make him a success.

Malloy's political future is in their hands, just as it was in the frantic final days of the 2010 campaign when labor played a pivotal role in electing the first Democrat in a generation by the closest margin in 56 years.

Their friend is demanding $1 billion in labor savings. The number is unprecedented. But without it, or at least a good portion of it, Malloy's budget falls apart, very likely a fatal blow to their ally on other issues.

It is labor's dilemma.

"Our number one concern is always to our members," said Sal Luciano, the executive director of AFSCME Council 4. "But yes, we're also concerned about him politically, because we did put in an enormous amount of energy to help get him elected."

Luciano said it is Malloy's dilemma, too. When labor places its final concession offer on the table--something Malloy says must happen within weeks--the governor knows that a failure to amicably resolve the concession talks would be devastating to everyone.

In an interview, Malloy did not disagree with the notion that his re-election in 2014 could be decided by his first budget and his relationship with labor, but he said that is not part of his conversations with union leaders.

"I'm not arguing about four years from now," Malloy said. "But the reason that it's better for them that it's me than somebody else is I like them. I support them. I believe in organized labor. But I also believe in a strong management team. Quite frankly, Connecticut hasn't had a strong management team for a long, long time."

Protracted budget fights wear on governors.

In October 2002, Gov. John G. Rowland had a 62-percent approval rating in the Quinnipiac University poll as he began a war with labor over concessions that ended with 3,000 lay offs.

By March 13, 2003, even before his corruption issues dominated the news, his approval rating had dropped to 33 percent, with voters blaming his handling of the budget.

"In the end, it benefits no one if this whole thing blows up," acknowledged Roy Occhiogrosso, Malloy's senior adviser.

The result is a remarkable public dance as Malloy and the unions warily circle each other.

"If Jodi Rell put forth a budget calling for $1 billion in concessions, they would be picketing the Capitol, the Executive Residence and maybe even her house in Brookfield," said Senate Minority Leader John McKinney, R-Fairfield. "They haven't offered one word."

Instead of picket lines, Malloy was welcomed last weekend during an unpublicized appearance during the social hour of an AFSCME convention in Groton. The invitation had been extended before the demand for concessions, but the union reaffirmed that Malloy was welcome.

"It was cordial," said Larry Dorman, an AFSCME spokesman. "The mood was positive."

Malloy did not downplay their difficulties, Luciano said.

"Seven times, he said, 'Times are tough.' One time, but at least he said it, he thinks maybe we come out of this all right. Now, what exactly that means..." Luciano laughed. "...is subject to debate."

It is not entirely true the unions have been silent. Union members have been a presence at each one of Malloy's 16 town-hall meetings on the budget, pressing him for a more progressive tax structure. Occasionally, there are flashes of anger on the part of individual members.

In New Britain, the audience applauded when Marybeth Kaczynski, an AFSCME member employed at the Department of Children and Families, told Malloy she resented the make-or-break demand for givebacks.

"I'm tired of being a punching bag for the state of Connecticut," Kaczynski said. "Shouldn't your budget ask more of people who can afford it?"

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