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Arizona Supreme Court rules Phoenix violated constitution by funding union activities with public funds

The case originated in 2019 when two non-unionized city employees sued Phoenix.
PUBLISHED AUG 2, 2024
The court suggested that voluntary donation of vacation hours for release time could avoid constitutional violations.
The court suggested that voluntary donation of vacation hours for release time could avoid constitutional violations.

Phoenix, Arizona: The Arizona Supreme Court has ruled that Phoenix violated the state constitution by paying city employees nearly half a million dollars to work for their labor union during work hours.

The unanimous decision states that the "release time" provisions in the contract with the American Federation of State, County and Municipal Employees (AFSCME) violated the gift clause of the Arizona Constitution. This clause prohibits the government from giving money to private entities without a roughly equal public benefit.

According to the Arizona Republic, the contract provided $499,000 in release time for union activities while still paying the employees' normal wages. The court found this disproportionate to any benefit received by the city. Initially, lower courts sided with the city, but the Supreme Court overturned these rulings.

Phoenix is now reviewing its labor contracts to comply with the ruling.
Phoenix is now reviewing its labor contracts to comply with the ruling.

Justice Clint Bolick stated that the benefits were "so one-sided" that such provisions could not survive legal scrutiny. The decision impacts similar practices in other cities like Tucson, Mesa, Glendale, and Peoria.

The case originated in 2019 when two non-unionized city employees sued Phoenix, claiming the release time violated their rights and the gift clause. While the court rejected claims related to free speech and right-to-work laws, it struck down the release time provisions for lacking sufficient public benefit.

Jon Riches from the Goldwater Institute, representing the plaintiffs, hailed the decision as ensuring taxpayer dollars serve public, not private interests. He criticized union release time, especially when used for political activities.

AFSCME Local 2384 President Frank Piccioli condemned the ruling, arguing it undermines workers' rights and accusing Bolick of bias due to his prior work with the Goldwater Institute. Piccioli emphasized that union activities support better working conditions, which in turn benefit residents.

Phoenix is now reviewing its labor contracts to comply with the ruling. The court suggested that voluntary donation of vacation hours for release time could avoid constitutional violations.

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