ZAKARIA: Tell me your reaction to the Wisconsin election. You have, in your own way, been trying to take on some of the issues of pension, retirement benefit cost, cost of living adjustments.
What do you think one should interpret from that victory? What does it say that Governor Walker was reaffirmed with such a strong majority?
EMANUEL: I think, well -- I don't go where the interpretation's going that somehow this is an affirmation for doing that type of politics. I think people know that when you recall, there's got to be something severe. You've committed corruption or something of that level.
And I think that that's where the judgment was. This was not the tool for disagreeing with his policies on collective bargaining or other issues. So I'm not where the conventional wisdom is about oh, this means it's war on public employees.
I think public employees should be partners in solving problems. Labor should be a partner. If you're view when you sit at the table is, I want to get to a yes and I want to work a way that's a win-win, I'll not only pull up a chair, I'll get you a cup of coffee.
But if you're attitude is we did it this way for 30 years, we're going to keep doing it this way for 30 years, that's not feasible. The taxpayers can't support that anymore.
ZAKARIA: Is there a danger that the Democratic Party is going to end up on the wrong side of this issue because the public sector unions are such a large funder of the party.
EMANUEL: Well, it requires everybody being straightforward and honest with each other. I think the truth is you could say, on my side -- meaning, obviously, you're talking about from a partisan or a party affiliate, you cannot put your head in the sand and say this will go away, it will take care of itself.
As I always joke around, denial is not a long-term strategy. It doesn't work. We have to take on these issues -- I don't want to say, "man up to them," but deal with them, confront them, but from a position of being honest with people as long as painful it is.
No city today can function as if the past and the past responsibilities are going to hold true. And that means saying to people and I say this when I go to firehouses, "You did nothing wrong. This is not your fault, but I can't be your mayor and tell you if we don't change it, everything's going to be OK and that's just not true."
"And you and your spouse have made plans all along the way. I want you to have a pension not a defined contribution, a defined benefit. I want you to have it, but to have it, if you want it, we're going to have to make changes."
And remember, I'm making changes to expectations. That's the hardest thing to do in life, but it starts with, "It's not your fault things weren't done right, but we're going to get them right so when you contribute, you know it will be there."
ZAKARIA: The biggest piece of this is cost of living adjustments, am I right?
EMANUEL: On the pensions.
ZAKARIA: On the pensions.
EMANUEL: That's the automatic increase. I testify to this, unless you deal with what's happening for present retirees as part of a solution. You can do everything else on top to current. If you don't stop the bleeding, none of the other stuff will take hold and really fix the system.
And cost of living adjustments are the ones that move the needle of fastest to health and I think -- I'm not going to win popularity points with retirees, but I want to be honest. They're getting it as part of our pensions, not all, they're getting an automatic 3 percent.
An employee, I think the statistic is, that retired in '95 at $60,000 a year, now makes $100 plus thousand. The employee current that is paying that took a furlough, a pay cut, while the other person's get a 3 percent annually increase. And that's just -- and that's not sustainable. Maybe in a different era that's sustainable. It's not sustainable now and that's what I meant when people agree to things in -- maybe the heady days, but they're not sustainable long-term.
And you have to deal with retirement age, you have to deal with benefit structure, you have to deal with contribution, you have to deal with choice, but you're also going to have to deal with what was once an agreement, contractual, that you can't sustain, otherwise the current employees and the young employees will never get the pension that they're earning.