The California Supreme Court ruled that the unpaid furloughs for more than 200,000 state workers last year were legal, but also said that the Governor does not have the power to unilaterally institute cuts in work weeks or pay, meaning that in the future the Governor will have to get the consent of the unions or the Legislature. The Governor called the ruling a victory, saying that it protects taxpayers. Unions also called the ruling a victory, citing the part that does not allow the Governor to make unilateral decisions. The Governor used immunity from furloughs as a bargaining chip with unions this year, something that is now off the table. The ruling also means that the furloughs that have been in effect since August are illegal unless the Legislature retroactively approves them. The Legislature also needs to approve a budget for the state, which is now the latest in modern history. The Governor is still bargaining with some unions, but faces a challenge from the correctional guards union, which has refused to bargain with him.
See "California Supreme Court upholds unpaid furloughs for more than 200,000 state workers", Maura Dolan and Shane Goldmacher, Los Angeles Times, October 4, 2010