Friction builds between Walz, public sector unions on multiple fronts

Possible layoffs, a return-to-office directive and tense contract negotiations are straining Gov. Tim Walz’s relationship with public sector labor unions that represent thousands of state workers.

There has been a notable shift in tone given that Walz has delivered many wins to unions since first being elected governor in 2018. The DFLer signed several worker protection measures into law, like paid sick leave. He signed laws enhancing collective bargaining rights and wage theft protections. 

His labor union support and own union background — he’s a former school teacher — was a fixture of his unsuccessful bid for vice president last year.

“It was you who built the middle class and we know that when unions are strong, America’s strong,” was a Walz refrain during that run.

His relationship with public sector unions has fallen on tougher times. Union members lashed out at the governor during a virtual town hall this week, with some questioning if they should stand by Walz if he runs for another term in 2026.

Walz acknowledged the friction when asked about his standing with public sector unions recently. 

“I think management and labor always has a healthy tension,” Walz told Politics Friday on MPR News. “As a longtime labor union member, I hear where they’re coming from. So, I think it’s healthy. I won’t kid you, they’re probably not going to throw a picnic for me.”

As governor, Walz is the head of the executive branch of state government. Nearly 90 percent of those employees belong to a public sector union. 

The two biggest are the Minnesota Association of Professional Employees and the American Federation of State County and Municipal Employees Council 5. Those are the two most vocal unions in voicing frustration with the Walz administration.

Back in March, a handful of mostly DFL lawmakers gathered outside the Capitol with the heads of those unions. They pushed back on the Walz administration's call for state employees to return to the office for at least 50 percent of scheduled workdays starting in June. 

“Our labor unions are in a position where they have to fight for something that they’ve already had and just got taken away,” said Rep. Luke Frederick, DFL-Mankato. “They should be working and fighting for better wages, better benefits. But now they’re just trying to hold the ground that they already have.”

Union leaders said they were not consulted before the return-to-office announcement. The policy has been slightly amended and more talks have occurred about exceptions and accommodations since the initial plan was rolled out.

Remote work became pretty common during the COVID-19 pandemic and some state employees stayed in that format. 

In May, unions were back at the Capitol and upset about a Walz deal with legislative leaders that included closure of a prison in Stillwater. 

“I find it hard to believe that this chip that was put on the table at the 11th hour wasn't discussed thoroughly before it got put on the table,” said Bart Andersen with AFSCME Council 5.

Megan Dayton, president of MAPE, said their relationship with the governor is “not great.”

“I think our entire mission as a union, as a union community is to have a seat at the table,” Dayton said. “A call 10 to 15 minutes before a press conference about decisions that are going to impact our lives is not real partnership.”

Dayton says she expects better from a major figure in the DFL Party, where the "L" stands for labor.

At a lunchtime town hall earlier this week, MAPE members vented about difficult contract negotiations on top of it all. They batted around the possibility of job actions —- up to a strike — over changes on the table, including higher employee health care costs.

“If he thinks that his Legislature and Minnesota Management and Budget’s mismanagement of our budget is going to be borne on the backs of state workers, I think he should be prepared to lose a few more friends,” said Sean McIntyre when asked by an attendee about the mood toward the governor.

Walz responded Thursday to the concern over health care cost shifts, saying nothing is final yet. He said the final contracts will depend in part on how the next budget turns out.

“I still continue to value this work force. We continue to, historically, have provided some of the best contracts and the best benefits so that we can maintain that talent,” Walz said. “Those negotiations are separate from this and ongoing. They're tied to it in that operating expenses are part of this budget. So first step here is for us to get this budget done, get it wrapped up.”

Things could get even rockier in coming weeks.

Layoff notices could go out as soon as this week to prepare for a possible shutdown if the budget isn't finished by the end of June. Walz said that the bulk of those would hit on June 9, although some employees would get them before then.

And even with a new budget, some agencies are bracing for layoffs that could stem from tighter finances or federal reductions.