On Friday, a St. Clair County court issued an order requiring all State of Illinois agencies to immediately reinstate the payment of fair share fees, deducted from non-union member State employees’ paychecks, to labor unions representing State employees. The order is a procedural victory for unions, as they will receive all fees deducted since the Executive Order but held in escrow and never paid to unions. The order does not address the merits of the underlying dispute over the constitutionality of fair share fees.
In February, Governor Rauner issued Executive Order 15-13 prohibiting State agencies from enforcing contractual fair share provisions. Under such provisions, non-union member State employees must pay their fair share—or rather, fees to the union that are proportionate to the union’s costs associated with collective bargaining, contract administration, and other activities germane to the union’s duties as collective bargaining representative. The Executive Order required the Department of Central Management Services (CMS) and all State agencies to immediately cease enforcement of fair share provisions in the State’s collective bargaining agreements. Instead, CMS and State agencies placed all fair share payroll deductions from non-union member employees’ paychecks into an escrow account. At the same time, the Governor filed a federal lawsuit seeking a declaration that fair share fees constitute unconstitutional “forced speech.”
On March 5, 2015, the Illinois AFL-CIO, along with 26 other labor unions, filed suit in state court seeking to invalidate Governor Rauner’s order. The unions argue that fair share provisions are authorized under Section 3(g) of the Illinois Public Labor Relations Act, 5 ILCS 315/3(g), and the Governor may not invalidate them by Executive Order. Comptroller Leslie Munger, who was appointed by the Governor, has refused to enforce the Executive Order since its issuance. Instead, the Governor’s Office has been directly withholding fair share fees when processing payroll, and keeping the funds in escrow pending resolution of the dispute.
On Friday, the court’s order invalidated this maneuver. The order, to which the Governor and the participating labor unions agreed before it was entered, requires the Governor to immediately remit to the appropriate unions all fair share fees that have been held in escrow since the issuance of Executive Order 15-13. Additionally, the order prohibits the Governor from withholding fair share fees from State employees’ paychecks, and the Governor must forward the correct payroll information to the Comptroller. In exchange, the labor unions agreed to “fast-track” the case by waiving their right to seek arbitration over the Governor’s actions.
In a statement, the Governor reiterated his administration’s ultimate goal: “to get this case in front of the U.S. Supreme Court, which is where it must be conclusively decided, as soon as possible.” In the meantime, the fair share process will return to the status quo prior to the issuance of the Governor’s Executive Order. We will continue to monitor both cases—the unions’ suit in state court, and the Governor’s lawsuit in federal court—and provide updates.
