Wisconsin governor issues layoff warning notices

* Walker seeks to curb public sector union rights

* Governor has said 1,500 employees would be affected

* Wisconsin a battleground in US fight over union rights

By Jeff Mayers

MADISON, Wis., March 4 (Reuters) - Republican Wisconsin Governor Scott Walker issued layoff warning notices on Friday to unions representing state workers as he pressed forward with his quest to curb the rights of public-sector unions.

In an e-mail announcing the layoff notices, Walker's office said that "if the Senate Democrats come back to Wisconsin, these notices may be able to be rescinded and layoffs avoided. Without Senate action within 15 days, individual employees may begin to receive potential termination notifications."

All 14 Democratic members of the state Senate have left Wisconsin, depriving the chamber of the quorum necessary to vote on the measure, which would curtail union negotiating rights and increase workers' share of their benefit costs.

Walker did not specify on Friday the number of workers affected but said earlier it would be about 1,500 employees. Friday's warning notices were not official layoff notices.

Wisconsin is one of several U.S. states where Republicans are seeking to curtail the rights of unions representing public employees in battles that have turned increasingly bitter.

Walker has defended his push for public employee union concessions as an essential part of his plan to rejuvenate state finances and said it would provide crucial savings.

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For full coverage of state budget woes [ID:nN14158511]

Insider TV interview link.reuters.com/faf48r

For more U.S. budget, deficit fights [ID:nN11152338]

FACTBOX on Wisconsin proposal [ID:nN21220065]

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The plan has been passed by the Republican-dominated state Assembly but needs Senate approval before Walker can sign it. State employees affected by the proposal include teachers, prison guards, state prosecutors, public defenders and others, but it exempts police and firefighters.

The proposal has spurred big protests in the state capital Madison.

Walker's letters to the unions notified them that layoffs will be possible starting in April due to delay in consideration of legislation that would eliminate much of the collective bargaining rights for most of the state's 300,000 public employees.

WISCONSIN IS 'BROKE'

Walker has said that laying off 1,500 state employees would save some $30 million. He has pegged the current year's budget deficit at $137 million and as pronounced the state "broke."

"Republicans are spending more time contriving schemes for political retribution and tactics to try to bully us home instead of engaging in serious discussions," said Democratic senate leader Mark Miller.

Walker said "extremist elements" among the absent Democrats have blocked progress. Walker said some of the Democrats appear willing to stay away "not only for several more months, but potentially the next two years."

The stalemate has held up a proposed debt restructuring that Walker's administration has estimated would save $165 million. Democrats have said Walker is bluffing on the urgency of the debt refinancing.

In Ohio, legislators will take their time considering another bill that would curb union rights by, for example, barring strikes by public sector workers.

Republican House Speaker William Batchelder said he planned to allow at least three weeks for debate and revisions to the bill, which was passed by the state Senate this week. Republican Governor John Kasich had hoped the bill would reach his desk by March 15 when he unveils a two-year budget plan. [ID:nN04203800]

In Indiana, where House Democrats also have fled the state to delay a vote on bills they say would harm workers' rights, Republicans voted to impose a $250-a-day fine starting on Monday for members who do not show up in the chamber.

(Writing by Andrew Stern and James Kelleher; Editing by Will Dunham)